Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 131

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 131
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 which represented 18.2% of the outstanding units of the SREIT as of that date.  As of December 31, 2024, the aggregate value of our investment in the units of the SREIT was $40.6 million, which was based solely on the closing price of the units on the SGX-ST of $0.171 per unit as of December 31, 2024 and did not take into account any potential discount for the holding period risk due to the quantity of units we hold.  

7

The following charts illustrate the geographic diversification of our real estate properties based on total leased square feet and total annualized base rent as of December 31, 2024: 

Leased Square Feet

Annualized Base Rent (1) 

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(1) Annualized base rent represents annualized contractual base rental income as of December 31, 2024, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

8

We have a stable tenant base and we have tried to diversify our tenant base in order to limit exposure to any one tenant or industry.  Our top ten tenants leasing space in our real estate portfolio represented approximately 27% of our total annualized base rent as of December 31, 2024.  The chart below illustrates the diversity of tenant industries in our real estate portfolio based on total annualized base rent as of December 31, 2024:

Annualized Base Rent (1)

____________________

(1) Annualized base rent represents annualized contractual base rental income as of December 31, 2024, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.  

* “Other” includes any industry less than 3% of total.  

Financing Objectives

We financed our real estate acquisitions to date with a combination of the proceeds received from our now-terminated initial public offering and debt.  We may use proceeds from borrowings to maintain liquidity and to fund property improvements, repairs and tenant build-outs to properties, for other capital needs; to refinance existing indebtedness; and to provide working capital.  We have also funded distributions to stockholders and redemptions of common stock with borrowings.  Our investment strategy is to utilize primarily secured debt to finance our investment portfolio, though from time to time we