Company: KBSR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001482430-25-000036
Chunk: 155

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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 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.

Under our charter, we are required to limit our total operating expenses to the greater of 2% of our average invested assets or 25% of our net income for the four most recently completed fiscal quarters, as these terms are defined in our charter, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors.  Operating expenses for the four fiscal quarters ended March 31, 2025 did not exceed the charter-imposed limitation.  

Cash Flows from Operating Activities

During the three months ended March 31, 2025, net cash used in operating activities was $5.7 million.  During the three months ended March 31, 2024, net cash provided by operating activities was $1.9 million.  Net cash used in operating activities increased during the three months ended March 31, 2025 primarily as a result of $6.6 million of interest rate swap settlement proceeds received in 2024 for early terminated swaps, the sales of real estate properties in February 2024 and November 2024, and the timing of payments and cash receipts.

Cash Flows from Investing Activities

Net cash used in investing activities was $4.4 million for the three months ended March 31, 2025 due to improvements to real estate.  

Cash Flows from Financing Activities

During the three months ended March 31, 2025, net cash provided by financing activities was $13.0 million as a result of proceeds from notes payable of $18.7 million, partially offset by principal payments on notes payable of $1.6 million and payments of deferred financing costs of $4.1 million.

We also expect to use our capital resources to make certain payments to our advisor.  We currently make payments to our advisor in connection with the management of our investments and costs incurred by our advisor in providing services to us.  We also pay fees to our advisor in connection with the disposition of investments.  We reimburse our advisor and dealer manager for certain stockholder services.  In addition, our advisor is entitled to an incentive fee upon achieving certain performance goals.  

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