Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 226

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 226
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.  Net cash provided by operating activities decreased during the nine months ended September 30, 2025 primarily as a result of $6.6 million of interest rate swap settlement proceeds received in 2024 for early terminated swaps and the sales of real estate properties in February 2024, November 2024, July 2025 and September 2025, offset by the timing of payments and cash receipts.

Cash Flows from Investing Activities

Net cash provided by investing activities was $201.6 million for the nine months ended September 30, 2025 due to $220.1 million of net proceeds from the sales of Sterling Plaza and Park Place Village, offset by $18.5 million used in improvements to real estate.  

Cash Flows from Financing Activities

During the nine months ended September 30, 2025, net cash used in financing activities was $166.7 million as a result of principal payments on notes payable of $187.0 million and payments of deferred financing costs of $8.9 million, offset by proceeds from notes payable of $29.2 million.

We also expect to use our capital resources to make certain payments to our advisor.  We currently make payments to our advisor in connection with the management of our investments and costs incurred by our advisor in providing services to us.  We also pay fees to our advisor in connection with the disposition of investments.  We reimburse our advisor and dealer manager for certain stockholder services.  In addition, our advisor is entitled to an incentive fee upon achieving certain performance goals.  

Asset Management Fees

Among the fees payable to our advisor is an asset management fee.  With respect to investments in real property, the asset management fee is a monthly fee equal to one-twelfth of 0.75% of the amount paid or allocated to acquire the investment, plus the cost of any subsequent development, construction or improvements to the property.  This amount includes any portion of the investment that was debt financed and is inclusive of acquisition expenses related thereto (but excludes acquisition fees paid to our advisor).  In the case of investments made through joint ventures, the asset management fee is determined based on our proportionate share of the underlying investment (but excluding acquisition fees paid to our advisor).  With respect to investments in loans and any investments other than real property, the asset management fee is a monthly fee calculated, each month, as one-twelfth of 0.75% of the lesser of (i) the amount actually paid or allocated