Company: KBSR
Filing Date: 2025-12-19
Form Type: 8-K
Source: 0001482430-25-000057
Chunk: 9

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-12-19
Form: 8-K
Item: Item 8.01
Chunk 9
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  Terminal capitalization rate      $                                                                0.21      $                                (0.20)      $                   0.34      $               
  Discount rate                     0.22                                                                       (0.21)                                       0.41                          (0.39)          

Finally, a 1% increase in the appraised value of the Appraised Properties would result in an $0.11 increase in the Company’s estimated value per share and a 1% decrease in the appraised value of the Appraised Properties would result in a decrease of $0.11 to the Company’s estimated value per share, assuming all other factors remain unchanged.

Investment in Prime US REIT

As of September 30, 2025, the Company owned 237,426,088 units of Prime US REIT (SGX-ST Ticker: OXMU), a Singapore real estate investment trust listed on the SGX-ST, which represented 18.2% of the outstanding units of Prime US REIT. Subsequent to September 30, 2025, Prime US REIT issued additional units in a private placement transaction, which reduced the Company’s ownership in Prime US REIT to 16.5% of the outstanding units of Prime US REIT as of October 6, 2025.

The Company engaged Kroll to value its investment in units of Prime US REIT as of November 14, 2025 based on the SGX-ST trading price of the units of Prime US REIT as of closing on November 14, 2025 less a discount to account for holding period risk due to the quantity of units held by the Company relative to the normal level of trading volume in Prime US REIT units (“blockage”). Kroll estimated the percentage discount for the holding period risk applicable to the Company’s holdings as the quotient of the value of a hypothetical series of at-the-money put options relative to the freely traded market value of the Company’s holdings (i. e., the average of the high and low trading prices of the units times the number of units held by the Company), where each such put option corresponds to one of the expected future sales of such units in the public market over a period of time in which the Company could reasonably sell such units if desired, given the constraints imposed by blockage. Ultimately, the discount for the holding period risk may be attributable to blockage, which constrains the rate at which the holder