NEWPORT BEACH, CA—KBS Real Estate Investment Trust III says it has modfied its agreement with its advisor for the deferment fees under certain circumstances.
“KBS REIT III” says that KBS Capital Advisors, LLC, the REIT’s external advisor, will defer asset management fees in any month that KBS REIT III’s modified funds from operations (MFFO), does not exceed the amount of distributions declared for that month.
The amendment to the advisory agreement between KBS REIT III and the Advisor pertains to asset management fees that began accruing on March 1, 2014, and helps KBS REIT III get to full coverage of its distribution to shareholders from MFFO.
“We are confident that deferring asset management fees in these instances is in the best interest of our stockholders and reflects our commitment to supporting the REIT’s long-term strategy,” said Charles Schreiber, CEO of KBS REIT III and co-founder of the Advisor.
KBS REIT III remains obligated to pay the Advisor asset management fees in any month in which MFFO, excluding asset management fees, exceeds the amount of distributions declared for that month; however, the Advisor will defer any amount of such asset management fees that exceed the surplus of MFFO for that month. The complete details of the terms of the deferral of the asset management fee were publicly filed with the SEC on March 6.