Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 246

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 246
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 to $1.0 million for the year ended December 31, 2024 due to a decrease in the dividend rate per unit declared by the SREIT.  We expect dividend income from our real estate equity securities to vary in future periods based on the occupancy and rental rates of the SREIT’s portfolio, movements in interest rates and the underlying liquidity needs of the SREIT. 

Other operating income decreased from $18.7 million during the year ended December 31, 2023 to $18.2 million for the year ended December 31, 2024, primarily due to the disposition of an office property in connection with a deed-in-lieu of foreclosure transaction in January 2024 and the sales of real properties in February 2024 and November 2024, partially offset by an increase in parking revenues at properties held throughout both periods as employees return to the office.  We expect other operating income to vary in future periods based on occupancy rates and parking rates at our real estate properties and to the extent of continued uncertainty in the real estate and financial markets and to decrease to the extent we dispose of properties. 

Operating, maintenance and management costs decreased from $75.9 million for the year ended December 31, 2023 to $72.9 million for the year ended December 31, 2024, primarily due to the disposition of an office property in connection with a deed-in-lieu of foreclosure transaction in January 2024 and the sales of real properties in February 2024 and November 2024, partially offset by an overall increase in repairs and maintenance costs and operating costs, including janitorial, utility, security and onsite costs, as a result of general inflation and an increase in physical occupancy at properties held throughout both periods.  We expect operating, maintenance and management costs to increase in future periods as a result of general inflation and to the extent physical occupancy increases as employees return to the office and to decrease to the extent we dispose of properties.

Real estate taxes and insurance decreased from $52.8 million for the year ended December 31, 2023 to $50.0 million for the year ended December 31, 2024, primarily due to the disposition of an office property in connection with a deed-in-lieu of foreclosure transaction in January 2024, the sales of real properties in February 2024 and November 2024 and a decrease in real estate taxes as a result of property tax refunds received and successful property tax appeals related to