Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 211

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 5
Chunk 211
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.47)Modified operating cash flows (1)0.12 Interest rate swaps(0.26)Loan financing fees (2)(0.11)Other changes, net0.01 Total change in estimated value per share$(1.71)December 12, 2024 estimated value per share$3.89 

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(1) Modified operating cash flows reflect modified funds from operations (“MFFO”) adjusted to add back the amortization of deferred financing costs.  We compute MFFO in accordance with the definition included in the practice guideline issued by the IPA in November 2010.

(2) Includes $16.5 million of estimated contractual loan financing fees and costs incurred by us for the period from October 1, 2023 to December 20, 2024, including $7.5 million of estimated contractual loan financing fees and costs incurred for the period from October 1, 2024 through December 20, 2024 related to the refinancing of  the Accenture Tower Revolving Loan, the Amended and Restated Portfolio Loan Facility, the 3001 & 3003 Washington Mortgage Loan and the Credit Facility.  

As with any valuation methodology, the methodologies used are based upon a number of estimates and assumptions that may not be accurate or complete.  Different parties using different assumptions and estimates could derive a different estimated value per share of our common stock, and this difference could be significant.  The estimated value per share is not audited and does not represent the fair value of our assets less the fair value of our liabilities according to U.S. generally accepted accounting principles (“GAAP”), nor does it represent a liquidation value of our assets and liabilities or the price at which our shares of common stock would trade on a national securities exchange.  The estimated value per share does not reflect a discount for the fact that we are externally managed, nor does it reflect a real estate portfolio premium/discount versus the sum of the individual property values.  The estimated value per share also does not take into account estimated disposition costs and fees for real estate properties that were not under contract to sell as of December 12, 2024, debt prepayment penalties that could apply upon the prepayment of certain of our debt obligations, the impact of restrictions on the assumption of debt or swap breakage fees that may be incurred upon the termination of certain of our swaps prior to expiration.  We have generally incurred disposition costs and fees related to the sale of each real estate property