KBS Growth & Income REIT Lowers NAV per Share

KBS Growth & Income REIT – Investigation Update April 13, 2020

Are you concerned about your investment in KBS Growth & Income REIT? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to filings with the SEC, the board of KBS Growth & Income REIT Inc., a publicly registered non-traded REIT, has approved an estimated net asset value of $8.43 per share of the company’s common stock, as of September 30, 2019. The company previously reported an NAV per share of $9.20, as of September 30, 2018.

The per share net asset value is based on the estimated value of the company’s assets less the estimated value of its liabilities, divided by the number of shares outstanding, all as of September 30, 2019.

According to the company, it has been “unable to raise substantial funds in its offering and has not acquired a diverse portfolio of real estate investments.”

Update on April 13, 2020

According to SEC filings On April 3, 2020, KBS Growth & Income REIT, Inc. reported that “a few small tenants have requested (rent) deferrals,”  and  that it anticipates that many of its tenants will likely suffer revenue losses and may seek such rent deferrals or become unable to pay their rent.  The company cautioned that such risks were not priced into its most recent estimated NAV per share of $8.43 per share as of September 30, 2019.  KBS G&I’s portfolio consists of 3 office properties, with a reported loan-to-value of 57% as of December 2019, according to FactRight, an alternative investment analyst.

The Trouble with Non-Traded REITs

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like KBS Growth & Income REIT, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

If you have invested in KBS Growth & Income REIT and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.