Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 243

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 243
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 “—Market Outlook—Real Estate and Real Estate Finance Markets,” “—Liquidity and Capital Resources” and “—Subsequent Events.”   

63

Capital Expenditures Obligations

As of December 31, 2024, we have capital expenditure obligations of $27.7 million, the majority of which is expected to be spent in the next twelve months and of which $12.7 million has already been accrued and included in accounts payable and accrued liabilities on our 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 incentives pursuant to GAAP.  In certain cases, tenants may have discretion over when to utilize their tenant allowances and may delay the start of projects or tenants control the construction of their projects and may not submit timely requests for reimbursement or there are general construction delays, all of which could extend the timing of payment for a portion of these capital expenditure obligations beyond twelve months.  The capital expenditure obligations will be funded from cash on hand, draws on current loan facilities with additional availability and future property cash flows.  See “—Going Concern Considerations.”

Results of Operations

In this section, we discuss the results of our operations for the year ended December 31, 2024 compared to the year ended December 31, 2023.  For a discussion of the year ended December 31, 2023 compared to the year ended December 31, 2022, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on March 19, 2024 and which specific discussion is incorporated herein by reference.  

As of December 31, 2023, we owned 16 office properties (of which one property was held for non-sale disposition as of December 31, 2023), one mixed-use office/retail property and an investment in the equity securities of the SREIT.  Subsequent to December 31, 2023, we disposed of one office property in connection with a deed-in-lieu of foreclosure transaction and sold two office properties.  As a result, as of December 31, 2024, we owned