Company: KBSR
Filing Date: 2025-02-12
Form Type: 8-K
Source: 0001482430-25-000006
Chunk: 6

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-02-12
Form: 8-K
Item: Item 2.03
Chunk 6
---
 the Securities and Exchange Commission on December 20, 2024.

KBS REIT III will be adversely affected if it is unable to satisfy certain covenants or other terms and conditions contained in its loan agreements. Certain of KBS REIT III’s loan agreements require KBS REIT III to satisfy conditions that are not in its sole control, including making required principal paydowns of the loans, selling assets and taking identified actions relating to its portfolio. There is no assurance that KBS REIT III will be able to satisfy these terms and conditions of its existing loan agreements or the terms and conditions of any future extension or refinancing agreement that is entered into. If KBS REIT III is unable to make required paydowns under certain loans, sell assets or satisfy certain covenants and conditions in its loan agreements, the lenders may seek to foreclose on the underlying collateral. Moreover, KBS REIT III’s loan agreements contain cross default provisions, including that certain events of default or the failure of one or more of KBS REIT III’s subsidiaries to pay debt as it matures under one debt facility may trigger the acceleration of KBS REIT III’s indebtedness under other debt facilities. KBS REIT III has also pledged the equity of certain of its subsidiaries (and all proceeds therefrom) in connection with the restructuring of some of its loan agreements. Upon certain defaults, these pledges would give the pledgee lenders the right to take possession of the pledged collateral. In addition, KBS REIT III has agreed to cash sweeps under several of its loan agreements. These cash sweeps place limits on KBS REIT III’s access to cash flows from certain properties and thereby restrict KBS REIT III’s operating flexibility.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                                KBS REAL ESTATE INVESTMENT TRUST III, INC.                                                        
  Dated: February 12, 2025      BY:                                             /s/ Jeffrey K. Waldvogel                          
                                                                                Jeffrey K. Waldvogel                              
                                                                                Chief Financial Officer, Treasurer and Secretary