Company: KBSR
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001482430-25-000036
Chunk: 59

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 completed fiscal quarters, as these terms are defined in our charter, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors.  Operating expenses for the four fiscal quarters ended March 31, 2025 did not exceed the charter-imposed limitation.  

Cash Flows from Operating Activities

During the three months ended March 31, 2025, net cash used in operating activities was $5.7 million.  During the three months ended March 31, 2024, net cash provided by operating activities was $1.9 million.  Net cash used in operating activities increased during the three months ended March 31, 2025 primarily as a result of $6.6 million of interest rate swap settlement proceeds received in 2024 for early terminated swaps, the sales of real estate properties in February 2024 and November 2024, and the timing of payments and cash receipts.

Cash Flows from Investing Activities

Net cash used in investing activities was $4.4 million for the three months ended March 31, 2025 due to improvements to real estate.  

Cash Flows from Financing Activities

During the three months ended March 31, 2025, net cash provided by financing activities was $13.0 million as a result of proceeds from notes payable of $18.7 million, partially offset by principal payments on notes payable of $1.6 million and payments of deferred financing costs of $4.1 million.

We also expect to use our capital resources to make certain payments to our advisor.  We currently make payments to our advisor in connection with the management of our investments and costs incurred by our advisor in providing services to us.  We also pay fees to our advisor in connection with the disposition of investments.  We reimburse our advisor and dealer manager for certain stockholder services.  In addition, our advisor is entitled to an incentive fee upon achieving certain performance goals.  

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Asset Management Fees

Among the fees payable to our advisor is an asset management fee.  With respect to investments in real property, the asset management fee is a monthly fee equal to one-twelfth of 0.75% of the amount paid or allocated to acquire the investment, plus the cost of any subsequent development, construction or improvements to the property.