Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 213

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 213
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 We have not declared any distributions since June 2023.  If and when we pay distributions, we will likely fund distributions from the sale of assets.

•Stockholders may have to hold their shares an indefinite period of time.  We can provide no assurance when we will be able to provide additional liquidity to stockholders.  Due to certain restrictions and covenants included in our loan agreements as a result of refinancing certain of our debt facilities, we do not expect to redeem any shares of common stock until certain loans are repaid or refinanced.  One of the loans with these restrictions has a current maturity of  January 2027 but may be extended subject to the terms and conditions of the loan agreement.  We terminated our share redemption program on March 15, 2024.  

•Our charter does not require us to liquidate our assets and dissolve by a specified date, nor does our charter require our directors to list our shares for trading by a specified date.  No public market currently exists for our shares of common stock.  There are limits on the ownership and transferability of our shares.  Our shares cannot be readily sold and, if our stockholders are able to sell their shares, they would likely have to sell them at a substantial discount. 

•We are dependent on KBS Capital Advisors LLC (“KBS Capital Advisors”), our advisor, to conduct our operations.

•All of our executive officers, our affiliated directors and other key professionals are also officers, affiliated directors, managers, key professionals and/or holders of a direct or indirect controlling interest in our advisor and/or its affiliates.  These individuals, our advisor and its affiliates face conflicts of interest, including conflicts created by our advisor’s and its affiliates’ compensation arrangements with us and other programs and investors and conflicts in allocating time among us and other programs and investors.  These conflicts could result in action or inaction that is not in the best interests of our stakeholders.  

•Our advisor and its affiliates currently receive fees in connection with transactions involving the management and disposition of our investments.  Asset management fees are based on the cost of the investment, and not based on the quality of the investment or the quality of the services rendered to us.  We may also pay significant fees during our listing/liquidation stage.  Although most of the fees payable during our listing/liquidation stage are contingent on our stockholders first enjoying agreed-upon investment returns, the investment return thresholds may be reduced subject to approval by our conflicts committee and our charter limitations.