Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 75

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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.9 million for the three months ended June 30, 2025, primarily due to the sale of a real property in November 2024, partially offset by an increase in real estate taxes related to properties held throughout both periods.  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 June 30, 2024 to $4.6 million for the three months ended June 30, 2025, primarily due to the sale of a real property in November 2024.  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 June 30, 2025, there were $19.1 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) $0.7 million were related to asset management fees that were deferred in connection with agreements related to the refinancing of our debt obligations.  As of June 30, 2025, we had $1.4 million of asset management fees payable related to asset management fees incurred for the month of June 2025, which were subsequently paid in July 2025.  For a discussion of Deferred Asset Management Fees and the Bonus Retention Fund, see “– Liquidity and Capital Resources” herein.

General and administrative expenses decreased slightly from $2.4 million for the three months ended June 30, 2024 to $2.3 million for the three months ended June 30, 2025, primarily due to legal fees and financial and advisory consulting fees related to our development and pursuit of our debt restructuring plan and capital raising efforts during the three months ended June 30, 2024.  General and administrative costs consisted primarily of portfolio legal fees, directors’ and officers’ insurance coverage costs, board of directors fees, third party transfer agent fees, financial and advisory consulting fees and audit costs. 

Depreciation and amortization decreased from $28.5 million for the three months ended June 30, 2024 to