Company: KBSR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001482430-25-000036
Chunk: 47

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 request disbursements from the cash management accounts to fund capital or operating shortfalls at the underlying assets.  Cash management accounts place limits on our access to cash flows from these properties and restrict our operating flexibility.  

•Continued disruptions in the financial markets and economic uncertainty impacting the U.S. commercial real estate industry could further impact our ability to implement our business strategy and continue as a going concern.  Overall, there remains significant uncertainty regarding the timing and duration of the economic recovery, which precludes any prediction as to the ultimate adverse impact the current disruptions in the markets may have on our business.  Potential long-term changes in customer behavior, such as continued work-from-home arrangements, could materially and negatively impact the future demand for office space, further adversely impacting our operations.

•We are unable to predict when or if we will be in a position to pay distributions to our stockholders.  Due to certain restrictions and covenants included in our loan agreements as a result of refinancing certain of our debt facilities, we do not expect to pay any dividends or distributions until certain loans are repaid or refinanced.  One of the loans with these restrictions has a current maturity of January 2027 but may be extended subject to the terms and conditions of the loan agreement.  We have not declared any distributions since June 2023.  If and when we pay distributions, we will likely fund distributions from the sale of assets.

•Stockholders may have to hold their shares an indefinite period of time.  We can provide no assurance when we will be able to provide additional liquidity to stockholders.  Due to certain restrictions and covenants included in our loan agreements as a result of refinancing certain of our debt facilities, we do not expect to redeem any shares of common stock until certain loans are repaid or refinanced.  One of the loans with these restrictions has a current maturity of  January 2027 but may be extended subject to the terms and conditions of the loan agreement.  We terminated our share redemption program on March 15, 2024.  

•Our charter does not require us to liquidate our assets and dissolve by a specified date, nor does our charter require our directors to list our shares for trading by a specified date.  No public market currently exists for our shares of common stock.  There are limits on the ownership and transferability of our shares.  Our shares cannot be readily sold and, if our stockholders are able to sell their shares, they would likely have to sell them at a