Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 237

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 237
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,264)(5,957)Gain from extinguishment of debt— — — (56,372)Unrealized loss (gain) on derivative instruments1,735 1,403 6,258 (7,501)Gains related to swap terminations— — — (178)MFFO (1)$(318)$3,472 $246 $4,209 

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(1) FFO and MFFO for the six months ended June 30, 2025 include expenses of $1.1 million related to legal fees and financial and advisory consulting fees related to our development and pursuit of our debt restructuring plan, and FFO and MFFO include $0.8 million and $4.5 million, respectively, of these expenses for the three and six months ended June 30, 2024.

FFO and MFFO may also be used to fund all or a portion of certain capitalizable items that are excluded from FFO and MFFO, such as tenant improvements, building improvements and deferred leasing costs.  

Critical Accounting Policies and Estimates

Our consolidated interim financial statements have been prepared in accordance with GAAP and in conjunction with the rules and regulations of the SEC.  The preparation of our financial statements requires significant management judgments, assumptions and estimates about matters that are inherently uncertain.  These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods.  With different estimates or assumptions, materially different amounts could be reported in our financial statements.  Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses.  A discussion of the accounting policies that management considers critical in that they involve significant management judgments, assumptions and estimates is included in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC.  There have been no significant changes to our policies during 2025.  

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Subsequent Events

We evaluate subsequent events up until the date the consolidated financial statements are issued.

Disposition of Sterling Plaza and Paydown of the Amended and Restated Portfolio Loan Facility

On July 11,