Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 139

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 other credit enhancements.  Additionally, when determining the fair value of a liability in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach.  The Company classifies these inputs as Level 3 inputs.  The following were the face values, carrying amounts and fair values of the Company’s notes payable as of June 30, 2025 and December 31, 2024, which carrying amounts generally do not approximate the fair values (in thousands): June 30, 2025December 31, 2024 Face ValueCarrying AmountFair ValueFace ValueCarrying AmountFair ValueFinancial liabilities:Notes payable$1,474,666 $1,457,527 $1,465,710 $1,451,063 $1,442,661 $1,442,777 Disclosure of the fair values of financial instruments is based on pertinent information available to the Company as of the period end and requires a significant amount of judgment.  Low levels of transaction volume for certain financial instruments have made the estimation of fair values difficult and, therefore, both the actual results and the Company’s estimate of value at a future date could be materially different.  As of June 30, 2025, the Company measured the following assets and liabilities at fair value (in thousands):  Fair Value Measurements Using TotalQuoted Prices in Active Markets for Identical Assets(Level 1)Significant Other Observable Inputs(Level 2)SignificantUnobservable Inputs(Level 3)Recurring Basis:Real estate equity securities$38,226 $38,226 $— $— Asset derivatives - interest rate swaps$4,365 $— $4,365 $— Liability derivatives - interest rate swaps$(114)$— $(114)$— 

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 1.  Financial Statements (continued)KBS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)June