Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 77

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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.  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 “—Going Concern Considerations,” “—Market Outlook – Real Estate and Real Estate Finance Markets” and “—Liquidity and Capital Resources.” 

Dividend income from our real estate equity securities decreased from $0.4 million for the three months ended September 30, 2024 to $0.3 million for the three months ended September 30, 2025 due to a decrease in the dividend rate per unit declared by the SREIT.  We expect dividend income from our real estate equity securities to vary in future periods based on the occupancy and rental rates of the SREIT’s portfolio, movements in interest rates and the underlying liquidity needs of the SREIT.  

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Other operating income decreased from $4.6 million for the three months ended September 30, 2024 to $4.2 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 parking revenues at properties held throughout both periods as employees returned to the