Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 162

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 162
---
 constructively owning more than 9.8% of our outstanding shares, unless exempted by our board of directors.  In addition, our board of directors may classify or reclassify any unissued common stock or preferred stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications and terms or conditions of redemption of any such stock.  Thus, our board of directors could authorize the issuance of preferred stock with priority as to distributions and amounts payable upon liquidation over the rights of the holders of our common stock.  These charter provisions may have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all of our assets) that might provide a premium price to holders of our common stock.  

Our stockholders will have limited control over changes in our policies and operations, which increases the uncertainty and risks our stockholders face.  

Our board of directors determines our major policies, including our policies regarding investments, dispositions, financings, REIT qualification and distributions.  Our board of directors may amend or revise these and other policies without a vote of the stockholders.  Under Maryland General Corporation Law and our charter, our stockholders have a right to vote only on limited matters.  Our board’s broad discretion in setting policies and our stockholders’ inability to exert control over those policies increases the uncertainty and risks our stockholders face.  

25

We are unable to predict when or if we will be in a position to redeem shares of our common stock. 

Stockholders may have to hold their shares an indefinite period of time.  We can provide no assurance that 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.   Further, since 2019, due to the limitations under our share redemption program, our pursuit of strategic alternatives and/or disruptions in the financial markets, we have either exhausted the funds available for Ordinary Redemptions (defined below) under our share redemption program or implemented suspensions of Ordinary Redemptions for all or a portion of the calendar year