Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 79

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 million of asset management fees payable related to asset management fees incurred for the month of September 2025, which were subsequently paid in October 2025.  For a discussion of Deferred Asset Management Fees and the Bonus Retention Fund, see “– Liquidity and Capital Resources” herein.

General and administrative expenses decreased from $6.3 million for the three months ended September 30, 2024 to $0.9 million for the three months ended September 30, 2025, primarily due to legal fees and financial and advisory consulting fees related to our development and pursuit of our debt restructuring plan and capital raising efforts during the three months ended September 30, 2024.  General and administrative costs consisted primarily of portfolio legal fees, directors’ and officers’ insurance coverage costs, board of directors fees, third party transfer agent fees, financial and advisory consulting fees and audit costs. 

Depreciation and amortization decreased from $27.5 million for the three months ended September 30, 2024 to $23.2 million for the three months ended September 30, 2025, primarily due to the sales of real properties in November 2024, July 2025 and September 2025.  We expect depreciation and amortization to decrease in future periods to the extent we dispose of properties, decrease for the properties that we recognized non-cash impairment charges during the three months ended September 30, 2025 which reduced those properties’ depreciable book value and decrease due to fully amortized tenant origination and absorption costs, offset by an increase as a result of additional capital improvements.

Interest expense decreased from $32.1 million for the three months ended September 30, 2024 to $29.1 million for the three months ended September 30, 2025.  Included in interest expense was (i) $30.3 million and $25.8 million of interest expense payments for the three months ended September 30, 2024 and 2025, respectively, and (ii) the amortization of deferred financing costs of $1.8 million and $3.3 million for the three months ended September 30, 2024 and 2025, respectively.  The decrease in interest expense was primarily due to less interest expense incurred as a result of loan paydowns in connection with the sales of a real properties in November 2024, July 2025 and September 2025, partially