Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 62

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 and we anticipate that our future cash flows from operations may be impacted due to lease rollover and reduced demand for office space.  

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

We have also made a significant investment in the common units of the SREIT.  Our investment in the equity securities of the SREIT generates cash flow in the form of dividend income, and dividends are typically declared and paid on a semi-annual basis, though dividends are not guaranteed.  As of September 30, 2025, we held 237,426,088 units of the SREIT which represented 18.2% of the outstanding units of the SREIT as of that date.  Subsequent to September 30, 2025, the SREIT issued additional units related to a private placement transaction, which reduced our ownership in the SREIT to 16.5% of the outstanding units of the SREIT as of October 6, 2025.  Due to the disruptions in the financial markets discussed above, since early March 2020, the trading price of the common units of the SREIT has experienced substantial volatility.  The trading price of the common units of the SREIT has been significantly impacted by the market sentiment for stock with significant investment in U.S. commercial office buildings.  As of November 14, 2025, the aggregate value of our investment in the units of the SREIT was $47.0 million, which was based solely on the closing price of the units on the SGX-ST of $0.198 per unit as of November 14, 2025, and did not take into account any potential discount for the holding period risk due to the quantity of units we hold.  This is a decrease of $0.682 per unit from our initial acquisition of the SREIT units at $0.880 per unit on July 19, 2019.  

As of November 14, 2025, we had mortgage debt obligations in the aggregate principal amount of $1.3 billion, with a weighted-average remaining term of 0.8 years.  As of November 14, 2025, our debt obligations consisted of $117.0 million of fixed rate notes payable and $1.2 billion of variable rate notes payable. As of November