Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 133

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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)Item 1.  Financial Statements (continued)KBS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)September 30, 2025(unaudited)8.       NOTES PAYABLE (CONTINUED)

Through the normal course of operations, the Company has $790.0 million of notes payable maturing and required principal paydowns during the 12-month period from the issuance of these financial statements.  Considering the current commercial real estate lending environment and the ongoing required loan paydowns and loan maturity schedule, this raises substantial doubt as to the Company’s ability to continue as a going concern for at least a year from the date of the issuance of these financial statements.  In order to refinance, restructure or extend the Company’s maturing debt obligations, the Company has been required to reduce the loan commitments and/or make paydowns on certain loans, and the Company may be required to make additional reductions to loan commitments and paydowns on the loans maturing during the next 12 months in order to refinance, restructure or extend those loans.  As a result of reductions in loan commitments and paydowns and the ongoing liquidity needs in the Company’s real estate portfolio, the Company may be required to sell assets into a challenged real estate market in an effort to manage its liquidity needs.  Selling real estate assets in the current market may result in a lower sale price than the Company would otherwise obtain.  The Company may continue to evaluate raising capital through the issuance of new equity or debt.  The Company may also defer noncontractual expenditures.  Additionally, the Company may relinquish ownership of one or more secured properties to the mortgage lender.  Elevated interest rates, reductions in real estate values and future tenant turnover in the portfolio will have a further impact on the Company’s ability to meet loan compliance tests and may further reduce the available liquidity under the Company’s loan agreements.  See also, Note 2, “Going Concern.”  As a result of non-cash impairment charges to write down the carrying value of The Almaden to its estimated fair value as of September 30, 2025, The Almaden is currently valued at $110.7 million which is less than the outstanding mortgage debt of $117.3 million that has a maturity of February 1, 2026.  For information on non-cash impairment charges during the three and nine months ended