Company: KBSR
Filing Date: 2025-12-19
Form Type: 8-K
Source: 0001482430-25-000057
Chunk: 11

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-12-19
Form: 8-K
Item: Item 8.01
Chunk 11
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 characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. The weighted-average discount rate applied to the future estimated debt payments was approximately 7.6%. To estimate the fair value of The Almaden Mortgage Loan, the Company wrote down the value of the debt to approximate the fair value of the real estate property, after giving consideration to other assets and liabilities.

As of September 30, 2025, the GAAP fair value of the Company’s notes payable as adjusted for the valuation of The Almaden Mortgage Loan described above was $1.3 billion. As of September 30, 2025, the carrying value of the Company’s notes payable was $1.3 billion. The Company’s notes payable had a weighted-average remaining term of 0.8 years as of November 14, 2025.

With respect to the notes payable valued using a discounted cash flow analysis, the table below illustrates the impact on the Company’s estimated value per share if the discount rates the Advisor used to value the Company’s notes payable were adjusted by 25 basis points, assuming all other factors remain unchanged. Additionally, the table below illustrates the impact on the Company’s estimated value per share if these discount rates were adjusted by 5% in accordance with the IPA Valuation Guidelines, assuming all other factors remain unchanged:

                     Increase (Decrease) on the Estimated Value per Share due to                                                                                                             
                     Decrease of 25 basis points                                                  Increase of 25 basis points                Decrease of 5%                  Increase of 5%  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Discount rate      $                                                                (0.02)      $                                0.02      $                   (0.02)      $               

Other Assets and Liabilities

The carrying values of a majority of the Company’s other assets and liabilities are considered to equal their fair value due to their short maturities or liquid nature. Certain balances, such as straight-line rent receivables, lease intangible assets and liabilities, accrued capital expenditures, deferred financing costs, unamortized lease commissions and unamortized lease incentives, have been eliminated for the purpose of the valuation due to the fact that the value of those balances was already considered in the valuation of the related asset or liability.

Limitations of and Risks Related to the Estimated Value per Share

As mentioned above, the Company is providing this