Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 169

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 169
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 additional shares of our capital stock, units of our Operating Partnership or equity in our other subsidiaries.  To the extent we issue additional equity interests, our stockholders’ percentage ownership interest in our assets would be diluted.  In addition, depending upon the terms and pricing of any additional issuance of equity interests, the use of the proceeds and the value of our real estate investments, our stockholders may also experience dilution in the book value and fair value of their shares and in the earnings and distributions per share.  

Payment of fees to our advisor and its affiliates reduces cash available for our operations.  

Our advisor and its affiliates perform services for us in connection with the management and leasing of our real estate properties and the disposition of our investments.  We pay them substantial fees for these services, which reduces cash available for our operations.  Compensation to be paid to our advisor may be increased with the approval of our conflicts committee and subject to the limitations in our charter and the restrictions of our loan agreements.  

We may also pay significant fees during our listing/liquidation stage.  Although most of the fees expected to be paid during our listing/liquidation stage are contingent on our stockholders first receiving agreed-upon investment returns, the investment-return thresholds may be reduced with the approval of our conflicts committee and subject to the limitations in our charter.  

If we are unable to obtain funding for future capital needs, our financial condition and results of operations may suffer.  

When tenants do not renew their leases or otherwise vacate their space, we will often need to expend substantial funds for improvements to the vacated space in order to attract replacement tenants.  Even when tenants do renew their leases, we may agree to make improvements to their space as part of our negotiations.  If we need additional capital in the future to improve or maintain our properties or for any other reason, we may have to obtain funding from sources other than our cash flow from operations, such as borrowings or future equity offerings.  These sources of funding may not be available on attractive terms or at all.  If we cannot procure additional funding for capital improvements, our investments may generate lower cash flows or decline in value, or both, which would cause our financial condition and results of operations to suffer.  

These risks are heightened as a result of the risks discussed above.  See “—Risks Associated with Debt Financing and Going Concern Considerations,” “—Risks Related to an Investment in Our Common Stock—Elevated market volatility due to adverse economic and geopolitical conditions has had and