Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 251

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 251
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 September 30, 2025 and 2024 (in thousands).  No conclusions or comparisons should be made from the presentation of these periods.  

For the Three Months EndedSeptember 30,For the Nine Months EndedSeptember 30,2025202420252024Net loss$(4,154)$(38,544)$(59,875)$(29,589)Depreciation of real estate assets19,697 23,679 63,835 70,980 Amortization of lease-related costs3,506 3,860 10,967 12,579 Impairment charges on real estate 65,475 6,847 65,475 6,847 Unrealized (gain) loss on real estate equity securities(8,547)(16,620)(6,173)7,403 Gain on sale of real estate, net (77,401)— (77,401)(14,781)FFO (1)(1,424)(20,778)(3,172)53,439 Straight-line rent and amortization of above- and below-market leases, net(1,135)(2,126)(5,399)(8,083)Gain from extinguishment of debt— — — (56,372)Unrealized loss on derivative instruments2,177 21,229 8,435 13,728 Gains related to swap terminations— — — (178)MFFO (1)$(382)$(1,675)$(136)$2,534 

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(1) FFO and MFFO for the nine months ended September 30, 2025 include expenses of $1.1 million related to legal fees and financial and advisory consulting fees related to our development and pursuit of our debt restructuring plan, and FFO and MFFO include $3.7 million and $8.2 million, respectively, of these expenses for the three and nine months ended September 30, 2024.

FFO and MFFO may also be used to fund all or a portion of certain capitalizable items that are excluded from FFO and MFFO, such as tenant improvements, building improvements and deferred leasing costs.  

Critical Accounting Policies and Estimates

Our consolidated interim financial statements have been prepared in accordance with GAAP and in conjunction with the rules and regulations of the SEC.  The preparation of our financial statements requires significant management