Exhibit 99.2
KBS SOR (BVI) Holdings LTD
Presentation of separate financial data annexed
to the consolidated financial statements related to the Company
As of June 30, 2018 (UNAUDITED)
U.S. DOLLARS IN THOUSANDS
INDEX
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| | Page |
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| Special Review Report Presented pursuant to Regulation 38d | 2 |
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| Financial Data from the Consolidated Statements of Financial Position Attributable to the Company | 3 |
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| Financial Data from the Consolidated Statements of Operations Attributable to the Company | 4 |
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| Financial Data from the Consolidated Statements of Comprehensive Income Attributable to the Company | 5 |
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| Financial data from the Consolidated Cash Flows Attributable to the Company | 6 |
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| Additional Information | 7 |
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Special Report in accordance with Regulation 38d
Financial Information and Financial Data from the
Consolidated Financial Statements Attributable to the Company
Below is separate financial information and financial data attributable to the Company from the Company's consolidated financial statements as of June 30, 2018, published as part of the periodic reports ("consolidated financial statements"), presented in accordance with Regulation 38d to the Israeli Securities Regulations (Periodic and Immediate Reports), 1970.
KBS SOR (BVI) HOLDINGS, LTD.
STATEMENTS OF FINANCIAL POSITION
USD in thousands
|
| | | | | | | | | | | |
| | March 31, | | December 31, |
| | 2018 | | 2017 | | 2017 |
| | Unaudited | | Audited |
| | U.S. dollars in thousands |
| ASSETS | | | | | |
| Non-current assets | | | | | |
| Investments in investees | $ | 936,901 |
| | $ | 1,102,346 |
| | $ | 1,052,679 |
|
| Restricted cash | 5,952 |
| | 6,240 |
| | 6,255 |
|
| | | | | | |
| | 942,853 |
| | 1,108,586 |
| | 1,058,934 |
|
| | | | | | |
| Current assets | | | | | |
| Cash and cash equivalents | 706 |
| | 625 |
| | 826 |
|
| Derivative financial instruments | — |
| | 15,052 |
| | 4,243 |
|
| | | | | | |
| | 706 |
| | 15,677 |
| | 5,069 |
|
| | | | | | |
| Total assets | $ | 943,559 |
| | $ | 1,124,263 |
| | $ | 1,064,003 |
|
| | | | | | |
| | | | | | |
| EQUITY | $ | 679,867 |
| | $ | 849,472 |
| | $ | 787,529 |
|
| | | | | | |
| Non-current liabilities | | | | | |
| Debentures, net | 206,707 |
| | 270,705 |
| | 272,316 |
|
| | | | | | |
| Current liabilities | | | | | |
| Debentures, net | 53,057 |
| | — |
| | — |
|
| Accounts payable and accrued liabilities | 3,928 |
| | 4,086 |
| | 4,158 |
|
| | | | | | |
| | 56,985 |
| | 4,086 |
| | 4,158 |
|
| | | | | | |
| Total liabilities | 263,692 |
| | 274,791 |
| | 276,474 |
|
| | | | | | |
| Total equity and liabilities | $ | 943,559 |
| | $ | 1,124,263 |
| | $ | 1,064,003 |
|
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| | | | | | |
| August 9, 2018 | | /s/ Jeffrey Waldvogel | | /s/ Peter McMillan III | | /s/ Keith David Hall |
| Date of approval of | | Waldvogel, Jeffrey | | McMillan III, Peter | | Hall, Keith David |
| financial statements | | Chief Financial Officer | | Chairman of Board of Directors | | Chief Executive Officer |
The accompanying notes are an integral part of this financial position.
KBS SOR (BVI) HOLDINGS, LTD.
STATEMENTS OF OPERATIONS
USD in thousands
|
| | | | | | | | | | | | | | | | | | | |
| | Six months ended | | Three months ended | | Year ended |
| | June 30, | | June 30, | | December 31, |
| | 2018 | | 2017 | | 2018 | | 2017 | | 2017 |
| | Unaudited | | Audited |
| | U.S. dollars in thousands |
| | | | | | | | | | |
| Share of (loss) profit from investees, net | $ | 9,193 |
| | $ | 20,818 |
| | $ | 20,687 |
| | $ | 5,403 |
| | $ | 89,342 |
|
| Asset management fees to affiliate | (4,043 | ) | | (5,603 | ) | | (2,218 | ) | | (2,855 | ) | | (10,686) |
|
| General and administrative expenses | (598 | ) | | (617 | ) | | (252 | ) | | (229 | ) | | (1,708) |
|
| | | | | | | | | | |
| Operating income | 4,552 |
| | 14,598 |
| | 18,217 |
| | 2,319 |
| | 76,948 |
|
| | | | | | | | | | |
| Finance expense | (6,828 | ) | | (6,541 | ) | | (3,370 | ) | | (3,334 | ) | | (13,333) |
|
| Foreign currency transaction adjustments, net | 9,114 |
| | (7,097 | ) | | 10,111 |
| | (2,426 | ) | | (15,298) |
|
| | | | | | | | | | |
| Net income (loss) | $ | 6,838 |
| | $ | 960 |
| | $ | 24,958 |
| | $ | (3,441 | ) | | $ | 48,317 |
|
The accompanying notes are an integral part of this financial position.
KBS SOR (BVI) HOLDINGS, LTD.
STATEMENTS OF COMPREHENSIVE INCOME
USD in thousands
|
| | | | | | | | | | | | | | | | | | | |
| | Six months ended | | Three months ended | | Year ended |
| | June 30, | | June 30, | | December 31, |
| | 2018 | | 2017 | | 2018 | | 2017 | | 2017 |
| | Unaudited | | Audited |
| | U.S. dollars in thousands |
| | | | | | | | | | |
| | | | | | | | | | |
| Net income (loss) | $ | 6,838 |
| | $ | 960 |
| | $ | 24,958 |
| | $ | (3,441 | ) | | $ | 48,317 |
|
| | | | | | | | | | |
| Total comprehensive income (loss) | $ | 6,838 |
| | $ | 960 |
| | $ | 24,958 |
| | $ | (3,441 | ) | | $ | 48,317 |
|
| | | | | | | | | | |
The accompanying notes are an integral part of this financial position.
KBS SOR (BVI) HOLDINGS, LTD.
STATEMENTS OF CASH FLOW
USD in thousands
|
| | | | | | | | | | | | | | | | | | | |
| | Six months ended June 30, | | Three months ended June 30, | | For the year ended December 31, |
| | 2018 | | 2017 | | 2018 | | 2017 | | 2017 |
| | Unaudited | | Audited |
| | U.S. dollars in thousands |
| | | | | | | | | | |
| Cash flows from operating activities | | | | | | | | | |
| Net income (loss) for the period | $ | 6,838 |
| | $ | 960 |
| | $ | 24,958 |
| | $ | (3,441 | ) | | $ | 48,317 |
|
| | | | | | | | | | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | |
| Share of profit from investees | (9,193 | ) | | (20,818 | ) | | (20,687 | ) | | (5,403 | ) | | (89,342) |
|
| Finance expense | 6,828 |
| | 6,541 |
| | 3,370 |
| | 3,334 |
| | 13,333 |
|
| Distribution from investees, net | 18,563 |
| | 35,597 |
| | 9,667 |
| | 17,674 |
| | 55,418 |
|
| Foreign currency transaction adjustments, net | (9,114 | ) | | 7,097 |
| | (10,111 | ) | | 2,426 |
| | 15,298 |
|
| Changes in operating assets and liabilities: | | | | | | | | | |
| Accounts payable and accrued liabilities | (38 | ) | | (15 | ) | | (3 | ) | | (40 | ) | | 47 |
|
| | | | | | | | | | |
| Net cash provided by operating activities | 13,884 |
| | 29,362 |
| | 7,194 |
| | 14,550 |
| | 43,071 |
|
| | | | | | | | | | |
| Cash flows used in investing activities | | | | | | | | | |
| Investments in investees | (178,206 | ) | | (44,158 | ) | | (29,911 | ) | | (7,514 | ) | | (76,105) |
|
| Distribution from investees, net | 284,614 |
| | 32,786 |
| | 133,619 |
| | 698 |
| | 163,103 |
|
| Purchase of derivative financial instrument | — |
| | — |
| | — |
| | — |
| | (3,434) |
|
| Proceeds from termination of derivative financial instrument | — |
| | — |
| | — |
| | — |
| | 6,557 |
|
| | | | | | | | | | |
| Net provided by (cash used) in investing activities | 106,408 |
| | (11,372 | ) | | 103,708 |
| | (6,816 | ) | | 90,121 |
|
| | | | | | | | | | |
| Cash flows from financing activities | | | | | | | | | |
| Interest paid | (5,912 | ) | | (5,583 | ) | | — |
| | — |
| | (11,284) |
|
| Dividend to Owner | (114,500 | ) | | (14,200 | ) | | (111,000 | ) | | (7,500 | ) | | (123,500) |
|
| | | | | | | | | | |
| Net cash used in financing activities | (120,412 | ) | | (19,783 | ) | | (111,000 | ) | | (7,500 | ) | | (134,784) |
|
| | | | | | | | | | |
| Effect of exchange rate changes on cash and cash equivalents | — |
| | 5 |
| | (1 | ) | | 2 |
| | 5 |
|
| | | | | | | | | | |
| (Decrease) Increase in cash | (120 | ) | | (1,788 | ) | | (99 | ) | | 236 |
| | (1,587) |
|
| Cash, beginning of the period | 826 |
| | 2,413 |
| | 805 |
| | 389 |
| | 2,413 |
|
| | | | | | | | | | |
| Cash, end of the period | $ | 706 |
| | $ | 625 |
| | $ | 706 |
| | $ | 625 |
| | $ | 826 |
|
The accompanying notes are an integral part of this financial position.
KBS SOR (BVI) HOLDINGS, LTD.
NOTES TO FINANCIAL STATEMENTS
USD in thousands
| |
| NOTE 1: | BASIS OF PREPERATION |
Separate financial information is prepared in a condensed format as of June 30, 2018 and for the six and three months then ended, in accordance with Regulation 38D of the Securities Regulations (Periodic and Immediate Reports), 1970.
Please refer to the separate financial information in this regard to the financial information on the annual financial statements of the Company as of December 31, 2017 and for the year then ended, and the information accompanying notes (hereinafter - the annual consolidated financial statements).
As of June 30, 2018, the Company had a working capital shortfall amounting to $56.3 million, primarily attributed to the debentures principal payment maturing in the year following the date of the statement of financial position. The Company intends to make the debentures principal payment from distribution from investees. Accordingly, the Company does not view the working capital shortfall as a liquidity problem.
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| NOTE 2: | SIGNIFICANT EVENTS DURING THE REPORTING PERIOD |
Dividend approval:
In March, May and June 2018, the Company declared distributions of dividend in the aggregated amount of $114.5 million to the Owner.
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