Company: KBSR
Filing Date: 2025-01-29
Form Type: 8-K
Source: 0001482430-25-000003
Chunk: 3

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-01-29
Form: 8-K
Item: Item 2.03
Chunk 3
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 challenges in certain markets where KBS REIT III owns properties and the lack of transaction volume in the U. S. office market as well as general market instability, there is substantial doubt as to KBS REIT III’s ability to continue as a going concern for at least a year from November 14, 2024. KBS REIT III may also be adversely affected if it is unable to satisfy certain covenants or other terms and conditions contained in its loan agreements. Certain of KBS REIT III’s loan agreements require KBS REIT III to satisfy conditions that are not in its sole control, including making required principal paydowns of the loans and KBS REIT III taking identified actions relating to its portfolio. There is no assurance that KBS REIT III will be able to satisfy these terms and conditions or the terms and conditions of any future extension or refinancing agreement that is entered into. If KBS REIT III is unable to refinance or extend the upcoming maturity of the Amended and Restated Portfolio Loan Facility, make required paydowns under certain loans or satisfy certain covenants and conditions in its loan agreements, the lenders may seek to foreclose on the underlying collateral. Moreover, KBS REIT III’s loan agreements contain cross default provisions, including that certain events of default or the failure of one or more of KBS REIT III’s subsidiaries to pay debt as it matures under one debt facility may trigger the acceleration of KBS REIT III’s indebtedness under other debt facilities. If KBS REIT III is unable to successfully refinance or restructure the upcoming maturity of the Amended and Restated Portfolio Loan Facility or unable to meet the conditions of its loan agreements, KBS REIT III may seek the protection of the bankruptcy court to implement a restructuring plan, which would constitute an event of default under KBS REIT III’s loan agreements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                               KBS REAL ESTATE INVESTMENT TRUST III, INC.                                                        
  Dated: January 29, 2025      BY:                                             /s/ Jeffrey K. Waldvogel                          
                                                                               Jeffrey K. Waldvogel                              
                                                                               Chief Financial Officer, Treasurer and Secretary