Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 255

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 255
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 as intending to sell a substantial amount of units in a short period of time, the market price of our remaining units could be adversely affected.  In addition, as a foreign equity investment, the trading price of units of the SREIT may be affected by political, economic, financial and social factors in the Singapore and Asian markets, including changes in government, economic and fiscal policies.  Furthermore, we may be limited in our ability to sell our investment in the SREIT if our advisor and/or its affiliates are deemed to have material, non-public information regarding the SREIT.  Charles J. Schreiber, Jr., our Chief Executive Officer, our President and our affiliated director, is a former director of the external manager of the SREIT, and Mr. Schreiber currently holds an indirect ownership interest in the external manager of the SREIT.  An affiliate of our advisor serves as the U.S. asset manager to the SREIT.  We do not currently engage in derivative or other hedging transactions to manage our investment’s security price risk.  

As of September 30, 2025, we held 237,426,088 units of the SREIT which represented 18.2% of the outstanding units of the SREIT as of that date.  As of September 30, 2025, the aggregate value of our investment in the units of the SREIT was $46.8 million, which was based solely on the closing price of the SREIT units on the SGX-ST of $0.197 per unit as of September 30, 2025, and did not take into account any potential discount for the holding period risk due to the quantity of units held by us relative to the normal level of trading volume in the units.  This is a decrease of $0.683 per unit from our initial acquisition of the SREIT units at $0.880 per unit on July 19, 2019.  Due to the disruptions in the financial markets, since early March 2020, the trading price of the common units of the SREIT has experienced substantial volatility.  The trading price of the common units of the SREIT has been significantly impacted by the market sentiment for stock with significant investment in U.S. commercial office buildings.  Based solely on the closing price per unit of the SREIT units as of September 30, 2025, if prices were to increase or decrease by 10%, our net income