Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 242

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 242
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 71,034 30,994 — Interest payments on interest rate swaps (3) (4) — — — — 

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(1) Amounts include principal payments only based on maturity dates as of December 31, 2024.  The maturity dates of certain loans may be extended beyond their current maturity dates; however, the extension options are subject to certain terms and conditions contained in the loan documents some of which are more stringent than our current loan compliance tests.  Subsequent to December 31, 2024, we completed the modification and extension of the Amended and Restated Portfolio Loan Facility.  As a result as of March 14, 2025, we had debt obligations in the aggregate principal amount of $1.5 billion, with a weighted-average remaining term of 1.5 years.  See also the discussion above under “—Liquidity and Capital Resources” and “—Going Concern Considerations.” 

(2) Projected interest payments are based on the outstanding principal amounts, maturity dates and interest rates in effect as of December 31, 2024 (consisting of the contractual interest rate and using interest rate indices as of December 31, 2024, where applicable).  We incurred interest expense related to notes payable of $117.1 million, excluding amortization of deferred financing costs totaling $9.5 million, during the year ended December 31, 2024.  

(3) Projected interest payments on interest rate swaps are calculated based on the notional amount, effective term of the swap contract, and fixed rate net of the swapped floating rate in effect as of December 31, 2024.  In the case where the swapped floating rate (Fallback SOFR or one-month Term SOFR) at December 31, 2024 is higher than the fixed rate in the swap agreement, interest payments on interest rate swaps in the above debt obligations table would reflect zero as we would not be obligated to make any interest payments on those swaps and instead expect to receive payments from our swap counter-parties.

(4) We recognized net realized gains related to interest rate swaps of $24.3 million, excluding unrealized losses on derivative instruments of $6.8 million and gains related to swap terminations of $0.2 million, during the year ended December 31, 2024.

For additional information regarding our debt obligations and loan maturities, see “—Going Concern Considerations,”