Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 235

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 235
---
,469)(104)%— (15,469)Impairment charges on real estate65,475 6,847 58,628 856 %— 58,628 Unrealized gain on real estate equity securities8,547 16,620 (8,073)(49)%— (8,073)Gain on sale of real estate, net77,401 — 77,401 100 %77,401 — Other interest income129 309 (180)(58)%n/an/a

_____________________

(1) Represents the dollar amount increase (decrease) for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 related to the dispositions of properties after July 1, 2024.  Interest expense incurred on portfolio loans is not allocated to the individual properties that serve as collateral for these portfolio loans and therefore, the decrease in interest expense related to an office property sold in November 2024 and an office property sold in July 2025 is not reflected in the column for changes due to dispositions of properties.  In November 2024, we repaid $140.4 million of outstanding principal debt with the net sale proceeds from sale of an office property.  In July 2025, we repaid $87.7 million of outstanding principal debt with the net sale proceeds from the sale of an office property.  

(2) Represents the dollar amount increase (decrease) for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 related to real estate investments owned by us throughout both periods presented.

Rental income from our real estate properties decreased from $63.5 million for the three months ended September 30, 2024 to $57.1 million for the three months ended September 30, 2025, primarily due to the sales of real properties in November 2024, July 2025 and September 2025, partially offset by an increase in operating and property tax recoveries with respect to properties held throughout both periods.  We expect rental income to decrease in future periods as a result of the disposition of these three properties and to the extent we dispose of additional properties, to vary based on occupancy rates and rental rates of our real estate investments and to increase due to tenant reimbursements related to operating expenses to the extent physical occupancy increases as employees return to the office.  See