Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 74

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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 three months ended June 30, 2024 to $60.9 million for the three months ended June 30, 2025, primarily due to the sale of a real property in November 2024, partially offset by an increase in operating and property tax recoveries with respect to properties held throughout both periods.  We expect rental income to decrease in future periods as a result of the disposition of the property in November 2024, the disposition of a property in July 2025 and to the extent we dispose of additional properties, to vary based on occupancy rates and rental rates of our real estate investments and to increase due to tenant reimbursements related to operating expenses to the extent physical occupancy increases as employees return to the office.  See “—Going Concern Considerations,” “—Market Outlook – Real Estate and Real Estate Finance Markets” and “—Liquidity and Capital Resources.” 

Other operating income decreased from $4.7 million for the three months ended June 30, 2024 to $4.5 million for the three months ended June 30, 2025, primarily due to the sale of a real property in November 2024, partially offset by an increase in parking revenues at properties held throughout both periods as employees return to the office.  We expect other operating income to vary in future periods based on occupancy rates and parking rates at our real estate properties and to the extent of continued uncertainty in the real estate and financial markets and to decrease to the extent we dispose of properties. 

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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)

Operating, maintenance and management costs decreased from $17.7 million for the three months ended June 30, 2024 to $17.3 million for the three months ended June 30, 2025, primarily due to the sale of a real property in November 2024, partially offset by an overall increase in repairs and maintenance costs and operating costs as a result of general inflation and an increase in physical occupancy at properties held throughout both periods.  We expect operating, maintenance and management costs to increase in future periods as a result of general inflation and to the extent physical occupancy increases as employees return to the office and to decrease to the extent we dispose of properties.  

Real estate taxes and insurance decreased slightly from $12.1 million for the three months ended June 30, 2024 to $11