Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 126

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 otherwise obtain.  In addition, the Company may continue to evaluate raising capital through the issuance of new equity or debt.  The Company may also defer noncontractual expenditures.  Additionally, elevated interest rates, reductions in real estate values and future tenant turnover in the portfolio will have a further impact on the Company’s ability to meet loan compliance tests and may further reduce the available liquidity under the Company’s loan agreements.  See also, Note 2, “Going Concern.”  During the three and six months ended June 30, 2025, the Company’s interest expense related to notes payable was $30.5 million and $58.9 million, respectively, and during the three and six months ended June 30, 2024, the Company’s interest expense related to notes payable was $33.2 million and $65.7 million, respectively, which excludes the impact of interest rate swaps put in place to mitigate the Company’s exposure to rising interest rates on its variable rate notes payable.  See Note 9, “Derivative Instruments.”  Included in interest expense was the amortization of deferred financing costs of $3.6 million and $5.9 million for the three and six months ended June 30, 2025, respectively, and $3.5 million and $6.0 million for the three and six months ended June 30, 2024, respectively.  As of June 30, 2025 and December 31, 2024, $8.7 million and $8.6 million of interest expense were payable, respectively.  The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2025 (in thousands):July 1, 2025 through December 31, 2025$148,679 2026998,487 2027327,500 2028— 2029— Thereafter— $1,474,666 

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 1.  Financial Statements (continued)KBS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)June 30, 2025(unaudited)8.       NOTES PAYABLE (CONTINUED)

The Company’s notes payable contain financial debt covenants