Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 228

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 228
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 on derivative instruments866 (21,055)21,921 (104)%— 21,921 Unrealized loss on real estate equity securities(2,374)(24,023)21,649 (90)%— 21,649 Gain from extinguishment of debt— 56,372 (56,372)(100)%(56,372)— Gain on sale of real estate, net— 14,781 (14,781)(100)%(14,781)— Other interest income336 682 (346)(51)%n/an/a

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(1) Represents the dollar amount increase (decrease) for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 related to the dispositions of properties after January 1, 2024.  Interest expense incurred on portfolio loans is not allocated to the individual properties that serve as collateral for these portfolio loans and therefore, the decrease in interest expense related to the two office properties sold during the year ended December 31, 2024 is not reflected in the column for changes due to dispositions of properties.  During the year ended December 31, 2024, we repaid $186.6 million of outstanding principal debt with the net sale proceeds from sale of two office properties during 2024.  

(2) Represents the dollar amount increase (decrease) for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 related to real estate investments owned by us throughout both periods presented.

Rental income from our real estate properties decreased from $130.0 million for the six months ended June 30, 2024 to $121.2 million for the six months ended June 30, 2025, primarily due to the sales of real properties in February 2024 and November 2024 and the disposition of an office property in connection with a deed-in-lieu of foreclosure transaction in January 2024, partially offset by an increase in operating and property tax recoveries with respect to properties held throughout both periods.  We expect rental income to decrease in future periods as a result of the disposition of these three properties, the disposition of a property in July 2025 and to the extent we dispose of additional properties, to vary based on occupancy rates and rental rates of our real estate investments and to increase due to tenant reimbursements related to operating expenses to the extent