Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 254

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 254
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,431 Impairment charges on real estate6,847 45,459 — Unrealized loss on real estate equity securities  11,202 35,614 92,812 Gain on sale of real estate, net(53,064)— — FFO attributable to common stockholders (1) (2) 65,340 38,775 142,214 Straight-line rent and amortization of above- and below-market leases, net(9,009)(8,404)(12,176)Gain from extinguishment of debt(56,372)— — Unrealized losses (gains) on derivative instruments6,833 16,451 (52,189)Gains related to swap terminations(178)— — MFFO attributable to common stockholders (1) (2)$6,614 $46,822 $77,849 

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(1) FFO and MFFO for the year ended December 31, 2024 include expenses of $12.0 million related to legal fees and financial and advisory consulting fees related to our development and pursuit of our debt restructuring plan and capital raising efforts.

(2) FFO and MFFO for the year ended December 31, 2022 include a one-time write-off of prepaid offering costs of $2.7 million and a $0.5 million fee to the conflicts committee’s financial advisor in connection with the conflicts committee’s review of alternatives available to us.  In connection with the conflict committee’s and the board of directors’ assessment of alternatives available to us, our assessment of our capital raising prospects, market conditions, economic uncertainty and the other factors, we determined not to pursue a conversion to an “NAV REIT” at that time.  In order to avoid additional legal, accounting and other offering costs, we withdrew our registration statement on Form S-11 to register a public offering as an NAV REIT, which had been filed with the SEC.

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 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 judgments, assumptions and estimates about matters that are inherently