Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 3

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7A
Chunk 3
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 SREIT (SGX-ST Ticker: OXMU).  Financial market risk is the risk that we will incur economic losses due to adverse changes in our investment’s security price.  Our exposure to changes in security prices is a result of our investment in these types of securities.  Market prices are subject to fluctuation and, therefore, the amount realized in the subsequent sale of an investment may significantly differ from our carrying value.  Fluctuation in the market prices of a security may result from any number of factors, including perceived changes in the underlying fundamental characteristics of the issuer, the relative price of alternative investments, interest rates, default rates and general market conditions.  The SREIT’s units were first listed for trading on the SGX-ST on July 19, 2019.  If an active trading market for the units does not develop or is not sustained, it may be difficult to sell our units.  The market for Singapore REITs may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of our investment in the SREIT difficult.  Even if an active trading market develops or we are able to negotiate block trades, if we or other significant investors sell or are perceived as intending to sell a substantial amount of units in a short period of time, the market price of our remaining units could be adversely affected.  In addition, as a foreign equity investment, the trading price of units of the SREIT may be affected by political, economic, financial and social factors in the Singapore and Asian markets, including changes in government, economic and fiscal policies.  Furthermore, we may be limited in our ability to sell our investment in the SREIT if our advisor and/or its affiliates are deemed to have material, non-public information regarding the SREIT.  Charles J. Schreiber, Jr., our Chief Executive Officer, our President and our affiliated director, is a former director of the external manager of the SREIT, and Mr. Schreiber currently holds an indirect ownership interest in the external manager of the SREIT.  An affiliate of our advisor serves as the U.S. asset manager to the SREIT.  We do not currently engage in derivative or other hedging transactions to manage our investment’s security price risk.  

As of December 31, 2024, we held 237,426,088 units of the SREIT which represented 18.2% of the outstanding units