Company: KBSR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001482430-25-000036
Chunk: 11

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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9 million of unamortized lease incentives as of March 31, 2025 and December 31, 2024, respectively.  As of March 31, 2025, the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands):April 1, 2025 through December 31, 2025$130,036 2026166,445 2027145,323 2028126,960 2029105,113 Thereafter383,484 $1,057,361 As of March 31, 2025, the Company’s office and office/retail properties were leased to approximately 455 tenants over a diverse range of industries and geographic areas.  As of March 31, 2025, no tenant accounted for more than 10% of annualized base rent.  Geographic Concentration RiskAs of March 31, 2025, the Company’s net investments in real estate in Illinois, California and Texas represented 21.4%, 20.4% and 13.4% of the Company’s total assets, respectively.  As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Illinois, California and Texas real estate markets.  Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results.  

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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)March 31, 2025(unaudited)4.      REAL ESTATE (CONTINUED)

Disposition Through Deed-in-Lieu of Foreclosure TransactionDuring the year ended December 31, 2023, the borrower under the 201 Spear Street Mortgage Loan (the “Spear Street Borrower”) entered into a deed-in-lieu of foreclosure transaction (the “Deed-in-Lieu Transaction”) with the lender of the 201 Spear Street Mortgage Loan (the “Spear Street Lender”).  On January 9, 2024, the Spear Street Lender transferred the title