Nontraded REIT in big shareholder payout

KBS Real Estate Investment Trust II Inc. set off a geyser of liquidity when it announced last Wednesday that investors had received a one-time distribution of $4.50 per share of common stock. The nontraded REIT had said in May that it was considering a special distribution as it anticipated the sale of properties. It was funded from the proceeds from selling holdings from May to August, and from cash on hand from the repayment or sale of real estate loans over the past two years, the company said in a statement. (See also: Nonlisted REIT 2Q rankings) KBS REIT II was a hybrid, in that it was both an owner of and a lender on commercial real estate. The REIT launched in 2008 and closed its offering period at the end of 2010. Like most nontraded REITs, it was sold to investors at $10 a share. Those who bought at its inception have received cash distributions of $8.50, including last week's special distribution. The valuation of the remaining REIT assets is $6.05 per share, according to the company.