Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 75

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 deferred financing costs totaling $9.2 million, during the nine months ended September 30, 2025.  

(3) Projected interest payments on interest rate swaps are calculated based on the notional amount, effective term of the swap contract, and fixed rate net of the swapped floating rate in effect as of September 30, 2025.  In the case where the swapped floating rate (one-month Term SOFR) at September 30, 2025 is higher than the fixed rate in the swap agreement, interest payments on interest rate swaps in the above debt obligations table would reflect zero as we would not be obligated to make any interest payments on those swaps and instead expect to receive payments from our swap counter-parties.

(4) We recognized net realized gains related to interest rate swaps of $8.1 million, excluding unrealized loss on derivative instruments of $8.4 million, during the nine months ended September 30, 2025.  

For additional information regarding our debt obligations and loan maturities, see “—Going Concern Considerations,” “—Market Outlook – Real Estate and Real Estate Finance Markets” and “—Liquidity and Capital Resources.”  

46

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

Results of Operations

Overview

As of September 30, 2024, we owned 14 office properties, one mixed-use office/retail property and an investment in the equity securities of the SREIT.  Subsequent to September 30, 2024, we sold two office properties and one mixed-use office/retail property.  As a result, as of September 30, 2025, we owned 12 office properties and an investment in the equity securities of the SREIT.  Therefore, the results of operations presented for the three and nine months ended September 30, 2025 and 2024 are not directly comparable.  The following tables provide summary information about our results of operations for the three and nine months ended September 30, 2025 and 2024 (dollar amounts in thousands):

Comparison of the three months ended September 30, 2025 versus the three months ended September 30, 2024 

Three Months EndedSeptember 30,Increase(Decrease)Percentage Change$ Changes Due to Dispositions of Properties (1)$ Change Due to Properties HeldThroughout