Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 168

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 168
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15, 2024, we terminated our dividend reinvestment plan.   

We did not redeem any shares of our common stock during the six months ended June 30, 2025.  Due to certain restrictions and covenants included in our loan agreements as a result of refinancing certain of our debt facilities, we do not expect to redeem any shares of common stock until certain loans are repaid or refinanced.  One of the loans with these restrictions has a 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.

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

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 June 30, 2025 did not exceed the charter-imposed limitation.  

Cash Flows from Operating Activities

During the six months ended June 30, 2025 and 2024, net cash provided by operating activities was $0.6 million and $7.7 million, respectively.  Net cash provided by operating activities decreased during the six months ended June 30, 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 $12.7 million for the six months ended June 30, 2025 due to improvements to real estate.  

Cash Flows from Financing Activities

During the six months ended June 30, 2025, net cash provided by financing activities was $17.3 million as a result of proceeds from notes payable of $26.8 million, partially offset by principal payments on notes payable of $3.2 million and payments of deferred financing costs of $6.3 million.

We also expect to use our capital resources to