Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 16

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 and Restated Portfolio Loan Facility.  See Note 8, “Notes Payable – Recent Financing Transactions – Amended and Restated Portfolio Loan Facility” and Note 14, “Subsequent Events – Disposition of Sterling Plaza and Paydown of the Amended and Restated Portfolio Loan Facility.”

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 1.  Financial Statements (continued)KBS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)June 30, 2025(unaudited)6.      TENANT ORIGINATION AND ABSORPTION COSTS, ABOVE-MARKET LEASE ASSETS AND BELOW-MARKET LEASE LIABILITIES

As of June 30, 2025 and December 31, 2024, the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities (excluding fully amortized assets and liabilities and accumulated amortization) were as follows (in thousands):Tenant Origination andAbsorption CostsAbove-MarketLease AssetsBelow-MarketLease Liabilities June 30, 2025December 31, 2024June 30, 2025December 31, 2024June 30, 2025December 31, 2024Cost$25,891 $27,334 $873 $873 $(2,809)$(4,679)Accumulated Amortization(20,716)(20,960)(787)(753)2,450 4,135 Net Amount$5,175 $6,374 $86 $120 $(359)$(544)Increases (decreases) in net income as a result of amortization of the Company’s tenant origination and absorption costs, above-market lease assets and below-market lease liabilities for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):Tenant Origination andAbsorption CostsAbove-MarketLease AssetsBelow-MarketLease LiabilitiesFor the Three Months EndedJune 30,For the Three Months EndedJune 30,For the Three Months EndedJune 30,202520242025202420252024Amortization$(597)$(717)$(17)$(17)$88 $118 Tenant Origination andAbsorption CostsAbove-MarketLease Assets