Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 144

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 144
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BS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)September 30, 2025(unaudited)9.      DERIVATIVE INSTRUMENTS (CONTINUED)

As of September 30, 2025, the Company has entered into 12 interest rate swaps, which were not designated as hedging instruments.  The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of September 30, 2025 and December 31, 2024.  The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): September 30, 2025December 31, 2024 Weighted-Average Fix Pay RateWeighted-Average Remaining Term in YearsDerivative InstrumentsNumber of InstrumentsNotional AmountNumber of InstrumentsNotional AmountReference Rate as of September 30, 2025Derivative instruments not designated as hedging instrumentsInterest rate swaps (1)12$1,000,000 14$1,100,000 One-month Term SOFR/Fixed at 2.38% - 3.92%3.3%0.8_____________________(1) During the nine months ended September 30, 2025, two of the Company’s interest rate swaps expired.  The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of September 30, 2025 and December 31, 2024 (dollars in thousands):September 30, 2025December 31, 2024Derivative InstrumentsBalance Sheet LocationNumber of InstrumentsFair ValueNumber of InstrumentsFair ValueDerivative instruments not designated as hedging instrumentsInterest rate swapsPrepaid expenses and other assets, at fair value11$2,245 14$10,509 Interest rate swapsOther liabilities, at fair value1$(171)—$— The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands):  For the Three Months EndedSeptember 30,For the Nine Months EndedSeptember 30, 2025202420252024Derivatives not designated as hedging instrumentsRealized gain recognized on interest rate swaps$(2,728)$(6,311