Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 122

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 122
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.4 million and $8.4 million as of September 30, 2025 and December 31, 2024, respectively.  During the nine months ended September 30, 2025 and 2024, the Company recognized deferred rent from tenants of $5.2 million and $7.7 million, respectively.  As of September 30, 2025 and December 31, 2024, the cumulative deferred rent balance was $91.4 million and $88.3 million, respectively, and is included in rents and other receivables on the accompanying balance sheets.  The cumulative deferred rent balance included $15.9 million and $16.6 million of unamortized lease incentives as of September 30, 2025 and December 31, 2024, respectively.  As of September 30, 2025, the future minimum rental income from the Company’s properties held for investment under its non-cancelable operating leases was as follows (in thousands):October 1, 2025 through December 31, 2025$38,043 2026150,280 2027134,636 2028117,051 202995,836 Thereafter360,039 $895,885 As of September 30, 2025, the Company’s office properties held for investment were leased to approximately 350 tenants over a diverse range of industries and geographic areas.  As of September 30, 2025, no tenant accounted for more than 10% of annualized base rent.  

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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)September 30, 2025(unaudited)4.      REAL ESTATE (CONTINUED)

Geographic Concentration RiskAs of September 30, 2025, the Company’s net investments in real estate held for investment in Illinois, California and Texas represented 23.6%, 19.7% and 11.1% of the Company’s total assets, respectively.  As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Illinois, California and Texas real estate markets.  Any adverse economic or real estate developments in these markets, such as