Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 103

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 103
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 of the Company.  The CODM reviews financial information presented on a consolidated basis.  The CODM assesses entity-wide operating results and performance and decides how to allocate resources based on consolidated net income, which is reported on the accompanying consolidated statements of operations.  The CODM uses consolidated net income to evaluate income generated from assets (return on assets) in deciding whether to reinvest profits into its real estate properties, repay debt or to pay dividends to stockholders.  Consolidated net income is used to monitor budgeted versus actual results.  Additionally, the measure of segment assets is reported on the accompanying consolidated balance sheets as total assets.  The accounting policies of the Company’s single reportable segment are the same as those described in the summary of significant accounting policies.

13.    COMMITMENTS AND CONTINGENCIES

Economic DependencyThe Company is dependent on the Advisor for certain services that are essential to the Company, including the disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities.  In the event that the Advisor is unable to provide the respective services, the Company will be required to obtain such services from other sources.  Legal MattersFrom time to time, the Company may be party to legal proceedings that arise in the ordinary course of its business.  Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss.  Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.  EnvironmentalAs an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments.  Compliance with existing environmental laws is not expected to have a material adverse effect on the Company’s financial condition and results of operations as of December 31, 2024.  Capital Expenditures ObligationsAs of December 31, 2024, the Company had capital expenditure obligations of $27.7 million, of which $12.7 million was accrued and included in accounts payable and accrued liabilities on the Company’s consolidated balance sheet as of December 31, 2024.  This amount includes unpaid contractual obligations for building improvements and unpaid portions of tenant improvement allowances which were granted pursuant to lease agreements executed as of December 31, 2024, including amounts that may be classified as lease