Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 241

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 241
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 us in which (y) we are not the surviving entity and (z) our advisor is no longer serving as an advisor or asset manager to the surviving entity in such transaction; and 

(iv)    the sale or other disposition of all or substantially all of our assets.

The advisory agreement may be terminated (i) upon 60 days written notice without cause or penalty by either us (acting through the conflicts committee) or our advisor or (ii) immediately by us for cause or upon the bankruptcy of our advisor.  If the advisory agreement is terminated without cause, then our advisor will be entitled to receive from us any residual amount of the Bonus Retention Fund deemed to be additional Deferred Asset Management Fees, provided that upon such non-renewal or termination we do not retain an advisor in which our advisor or its affiliates have a majority interest.  Upon termination of the advisory agreement, all unpaid Deferred Asset Management Fees will automatically be forfeited by our advisor, and if the advisory agreement is terminated for cause, any residual amount of the Bonus Retention Fund deemed to be additional Deferred Asset Management Fees will also automatically be forfeited by our advisor.  

As of December 31, 2024, we had accrued $18.6 million of asset management fees, of which $8.5 million were Deferred Asset Management Fees.  Also, included in accrued asset management fees as of December 31, 2024 is $8.5 million of restricted cash deposited into the Bonus Retention Fund.  We had not made any payments to our advisor from the Bonus Retention Fund as of December 31, 2024.  For the year ended December 31, 2022, we and our advisor agreed to adjust MFFO for the purpose of the calculation above to add back the following non-operating expenses: 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.  

Debt Obligations

The following is a summary of our debt obligations as of December 31, 2024 (in thousands):  

Payments Due During the Years Ended December 31,Debt ObligationsTotal20252026-20272028-2029Outstanding debt obligations (1)$1,451,063 $557,717 $893,346 $— Interest payments on outstanding debt obligations (2)102,028