Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 188

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 188
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 occupancy rates and parking rates at our real estate properties and to decrease to the extent we dispose of properties. 

Operating, maintenance and management costs decreased from $18.8 million for the three months ended September 30, 2024 to $17.8 million for the three months ended September 30, 2025, primarily due to the sales of real properties in November 2024, July 2025 and September 2025, partially offset by an overall increase in repairs and maintenance costs and operating costs as a result of general inflation and an increase in physical occupancy at properties held throughout both periods.  We expect operating, maintenance and management costs to increase in future periods as a result of general inflation and to the extent physical occupancy increases as employees return to the office and to decrease to the extent we dispose of properties.  

Real estate taxes and insurance decreased from $12.7 million for the three months ended September 30, 2024 to $11.4 million for the three months ended September 30, 2025, primarily due to the sales of real properties in November 2024, July 2025 and September 2025.  We expect real estate taxes and insurance to vary based on future property tax reassessments for properties that we continue to own and to decrease to the extent we dispose of properties.

Asset management fees with respect to our real estate investments decreased from $4.9 million for the three months ended September 30, 2024 to $4.5 million for the three months ended September 30, 2025, primarily due to the sales of real properties in November 2024, July 2025 and September 2025.  We expect asset management fees to decrease to the extent we dispose of properties and to increase in future periods as a result of any improvements we make to our properties.  As of September 30, 2025, there were $19.4 million of accrued asset management fees, of which (i) $8.5 million were Deferred Asset Management Fees, (ii) $8.5 million were related to asset management fees that were restricted for payment and deposited in the Bonus Retention Fund, and (iii) $1.1 million were related to asset management fees that were deferred in connection with agreements related to the refinancing of our debt obligations.  As of September 30, 2025, we had $1.3 million of asset management fees payable related to asset management fees incurred for the