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Written by 3:18 pm Current Investigations • One Comment

KBS REIT to Pay Stockholders Liquidating Distribution

Concerned about investment losses in KBS REIT?

Have you suffered losses investing in KBS REIT? If so, The White Law Group may be able to help you recover your losses through FINRA Arbitration.

KBS Real Estate Investment Trust launched its initial public offering in January 2006 for up to 200 million shares of common stock and 80 million DRIP shares. The REIT raised $1.7 billion in its primary offering before its closing in May 2008, and $233.7 million under its dividend reinvestment plan which closed in April 2012. The company’s portfolio consists of 186 real estate properties, three real estate loans receivable, and a participation interest in a real estate joint venture, as of September 30, 2016.

According to the company,  the board of KBS Real Estate Investment Trust Inc. authorized an initial liquidating distribution of $1.00 per share of common stock. The distribution will be paid by March 24th to its stockholders on record as of the close of business on March 21st.

KBS REIT Liquidation

KBS REIT stockholders recently approved a plan of complete liquidation and dissolution of the company. The company estimates that if it successfully implements the liquidation plan, stockholders would receive between approximately $3.27 and $3.68 per share for each share of the common stock that they own. The initial liquidating distribution will reduce this estimated range by $1.00 per share.

The company previously paid special distributions of $0.65 per share to stockholders for property sales from 2012 through 2015. Shares were originally sold for $10.00 each.

The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) including KBS REIT. In those claims, the firm has alleged, among other things, that REITs were:

(1) high-risk and unsuitable for our clients given their financial needs and investment objectives

(2) that the risks of the investment were not fully disclosed to them

(3) that the brokerage firms that sold the investments failed to follow FINRA rules to perform adequate due diligence.

Risks of Non-Traded REITs

Non-Traded REITs are complex products that involve a significant degree of risk and arguably unsuitable for many investors. Brokerage firms that overlooked suitability requirements or failed to disclose the risk when recommending KBS REIT to clients, may be liable for losses.

If you invested in KBS REIT or another non-traded REIT and would like to discuss your litigation options with a securities attorney, 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.




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