Company: KBSR
Filing Date: 2025-02-12
Form Type: 8-K
Source: 0001482430-25-000006
Chunk: 2

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-02-12
Form: 8-K
Item: Item 1.01
Chunk 2
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 any month and for certain other limited fees and expenses.

Additionally, the Eighth Modification Agreement (i) limits the amount of asset management fees that may be paid by KBS REIT III to KBS Capital Advisors LLC (the “ Advisor”) to 90% of the asset management fees associated with the Properties (“ Permitted Asset Management Fees”) (with the remaining 10% of the asset management fees associated with the Properties being deferred until the Portfolio Loan Borrowers have either paid in full their obligations under the Amended and Restated Portfolio Loan Facility, or met the requirements to pay such deferred fees during the extension periods of the loan) and (ii) limits the amount of REIT-level general and administrative expenses that can be allocated to the Properties and paid or reimbursed by the Portfolio Loan Borrowers, provided that in each case no such payments may be made during the occurrence and continuance of a default or potential default for which the Portfolio Loan Borrowers have received notice that has not been waived or cured.

The Eighth Modification Agreement also restricts KBS REIT III from paying dividends or distributions to its stockholders or redeeming shares of its stock, except that if no default has occurred and is continuing under the Amended and Restated Portfolio Loan Facility, KBS REIT III may distribute such amounts to its stockholders as are required for KBS REIT III to qualify as a REIT under the Internal Revenue Code of 1986, as amended, so long as such distributions are not funded by the Portfolio Loan Borrowers.

The Eighth Modification Agreement contains various ongoing financial covenants at both the guarantor (REIT Properties III) and borrower level.

The Eighth Modification Agreement required KBS REIT III to cause the equity interests of certain of KBS REIT III’s subsidiaries (and all proceeds therefrom) that directly and indirectly own Accenture Tower to be pledged to the Portfolio Loan Lenders as security for all of the Portfolio Loan Borrowers’ obligations under the Amended and Restated Portfolio Loan Facility. The Eighth Modification Agreement also requires KBS REIT III to cause approximately half of the units of Prime US REIT held by KBS REIT III to be pledged to the Portfolio Loan Lenders as security for all of Portfolio Loan Borrowers’ obligations under the Amended and Restated Portfolio Loan Facility. To the extent that KBS REIT III sells any of the units of Prime US REIT (other than certain excluded units), KBS REIT III is required to contribute the cash proceeds of such sale to the Portfolio Loan