Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 241

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 241
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 July 19, 2019.  If an active trading market for the units does not develop or is not sustained, it may be difficult to sell our units.  The market for Singapore REITs may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of our investment in the SREIT difficult.  Even if an active trading market develops or we are able to negotiate block trades, if we or other significant investors sell or are perceived as intending to sell a substantial amount of units in a short period of time, the market price of our remaining units could be adversely affected.  In addition, as a foreign equity investment, the trading price of units of the SREIT may be affected by political, economic, financial and social factors in the Singapore and Asian markets, including changes in government, economic and fiscal policies.  Furthermore, we may be limited in our ability to sell our investment in the SREIT if our advisor and/or its affiliates are deemed to have material, non-public information regarding the SREIT.  Charles J. Schreiber, Jr., our Chief Executive Officer, our President and our affiliated director, is a former director of the external manager of the SREIT, and Mr. Schreiber currently holds an indirect ownership interest in the external manager of the SREIT.  An affiliate of our advisor serves as the U.S. asset manager to the SREIT.  We do not currently engage in derivative or other hedging transactions to manage our investment’s security price risk.  

As of June 30, 2025, we held 237,426,088 units of the SREIT which represented 18.2% of the outstanding units of the SREIT as of that date.  As of June 30, 2025, the aggregate value of our investment in the units of the SREIT was $38.2 million, which was based solely on the closing price of the SREIT units on the SGX-ST of $0.161 per unit as of June 30, 2025, and did not take into account any potential discount for the holding period risk due to the quantity of units held by us relative to the normal level of trading volume in the units.  This is a decrease of $0.719 per unit from our initial acquisition of the SREIT units at $0.880 per unit on July 19, 2019.  Due to