Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 219

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 5
Chunk 219
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0.01 $(0.02)$0.01 

Other Assets and Liabilities

The carrying values of a majority of our other assets and liabilities are considered to equal their fair value due to their short maturities or liquid nature.  Certain balances, such as straight-line rent receivables, lease intangible assets and liabilities, accrued capital expenditures, deferred financing costs, unamortized lease commissions and unamortized lease incentives, have been eliminated for the purpose of the valuation due to the fact that the value of those balances was already considered in the valuation of the related asset or liability.  

Limitations of and Risks Related to the Estimated Value per Share 

As mentioned above, we provided this estimated value per share to assist broker-dealers that participated in our now-terminated initial public offering in meeting their customer account statement reporting obligations.  The estimated value per share set forth above first appeared on the December 31, 2024 customer account statements that were mailed in January 2025.  This valuation was performed in accordance with the provisions of and also to comply with the IPA Valuation Guidelines.  As with any valuation methodology, the methodologies used are based upon a number of estimates and assumptions that may not be accurate or complete.  Different parties with different assumptions and estimates could derive a different estimated value per share of our common stock, and this difference could be significant.  The estimated value per share is not audited and does not represent the fair value of our assets less the fair value of our liabilities according to GAAP.  

Accordingly, with respect to the estimated value per share, we can give no assurance that:

•a stockholder would be able to resell his or her shares at our estimated value per share;

•a stockholder would ultimately realize distributions per share equal to our estimated value per share upon liquidation of our assets and settlement of our liabilities or a sale of our company; 

•our shares of common stock would trade at the estimated value per share on a national securities exchange; 

•another independent third-party appraiser or third-party valuation firm would agree with our estimated value per share; or

•the methodology used to determine our estimated value per share would be acceptable to FINRA or for compliance with ERISA reporting requirements.  

Further, the estimated value per share is based on the estimated value of our assets less the estimated value of our liabilities, divided by the number of shares outstanding, all as of September 30, 2024, with the exception of adjustments