KBSR (KBS Real Estate Investment Trust III) ROIC % : -0.44% (As of Sep. 2024)

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What is KBS Real Estate Investment Trust III ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. KBS Real Estate Investment Trust III's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -0.44%.

As of today (2024-12-14), KBS Real Estate Investment Trust III's WACC % is 7.45%. KBS Real Estate Investment Trust III's ROIC % is 0.38% (calculated using TTM income statement data). KBS Real Estate Investment Trust III earns returns that do not match up to its cost of capital. It will destroy value as it grows.

KBS Real Estate Investment Trust III ROIC % Historical Data

The historical data trend for KBS Real Estate Investment Trust III's ROIC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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KBS Real Estate Investment Trust III ROIC % Chart

KBS Real Estate Investment Trust III Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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1.99

1.64

1.48

1.24

0.80

KBS Real Estate Investment Trust III Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															1.14	0.85	0.28	0.81	-0.44

Competitive Comparison of KBS Real Estate Investment Trust III's ROIC %

For the REIT - Office subindustry, KBS Real Estate Investment Trust III's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

KBS Real Estate Investment Trust III's ROIC % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, KBS Real Estate Investment Trust III's ROIC % distribution charts can be found below:

* The bar in red indicates where KBS Real Estate Investment Trust III's ROIC % falls into.

KBS Real Estate Investment Trust III ROIC % Calculation

KBS Real Estate Investment Trust III's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	16.753 * ( 1 - 0% )	/	( (2136.699	+	2035.495)	/ 2 )
=	16.753	/	2086.097
=	0.80 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2258.987	-	74.521	-	( 47.767	-	max(0, 74.521	-	146.947	+	47.767	))
=	2136.699

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2139.385	-	67.054	-	( 36.836	-	max(0, 67.054	-	149.946	+	36.836	))
=	2035.495

KBS Real Estate Investment Trust III's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-8.32 * ( 1 - 0% )	/	( (1885.391	+	1860.809)	/ 2 )
=	-8.32	/	1873.1
=	-0.44 %

where

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1985.824	-	58.22	-	( 42.213	-	max(0, 58.22	-	154.963	+	42.213	))
=	1885.391

	Invested Capital		(Q: Sep. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1958.919	-	66.594	-	( 31.516	-	max(0, 66.594	-	150.061	+	31.516	))
=	1860.809

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

KBS Real Estate Investment Trust III (OTCPK:KBSR) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROIC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, KBS Real Estate Investment Trust III's WACC % is 7.45%. KBS Real Estate Investment Trust III's ROIC % is 0.38% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

KBS Real Estate Investment Trust III ROIC % Related Terms

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KBS Real Estate Investment Trust III Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » KBS Real Estate Investment Trust III Inc (OTCPK:KBSR) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

800 Newport Center Drive, Suite 700, Newport Beach, CA, USA, 92660

Website

http://www.kbsreitiii.com

KBS Real Estate Investment Trust III Inc is a real estate investment trust. The company invests in a diverse portfolio of real estate properties. It holds investments in office properties and mixed-use office/retail properties. The investment objective is to preserve and return stockholders capital contributions and to provide the stockholders with attractive and stable cash distributions.

Executives

Robert Milkovich	director	7600 WISCONSIN AVENUE, 11TH FLOOR, BETHESDA MD 20814
Marc Deluca	director	7297 HIGHLAND ESTATES PLACE, FALLS CHURCH VA 22043
Ron D. Sturzenegger	director	101 CALIFORNIA STREET, SUITE 1750, SAN FRANCISCO CA 94111
Jeffrey A. Dritley	director	C/O KBS REALTY ADVISORS, 800 NEWPORT CENTER DRIVE, SUITE 700, NEWPORT BEACH CA 92660
Jeff Waldvogel	officer: Chief Financial Officer	C/O KBS REALTY ADVISORS, 800 NEWPORT CENTER DRIVE, SUITE 700, NEWPORT BEACH CA 92660
Stuart A Gabriel	director	155 N. LAKE AVENUE, PASADENA CA 91101
Peter Mcmillan	director, officer: Executive Vice President
Barbara R Cambon	director	17140 BERNARDO CENTER DRIVE, SUITE 195, SAN DIEGO CA 92128
Hank Adler	director	6 HUTTON CENTRE DRIVE, SUITE 400, SANTA ANA CA 92707
David E Snyder	officer: Chief Financial Officer	610 NEWPORT CENTER DRIVE, SUITE 1150, NEWPORT BEACH CA 92660
Schreiber Charles J Jr	director, officer: Chief Executive Officer	620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Peter M Bren	officer: President	620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Stacie K Yamane	officer: Chief Accounting Officer	620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Keith D Hall	officer: Executive Vice President	620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660

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