Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 221

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 221
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, the trading price of the common units of the SREIT has experienced substantial volatility.  The trading price of the common units of the SREIT has been significantly impacted by the market sentiment for stock with significant investment in U.S. commercial office buildings.  As of November 14, 2025, the aggregate value of our investment in the units of the SREIT was $47.0 million, which was based solely on the closing price of the units on the SGX-ST of $0.198 per unit as of November 14, 2025, and did not take into account any potential discount for the holding period risk due to the quantity of units we hold.  This is a decrease of $0.682 per unit from our initial acquisition of the SREIT units at $0.880 per unit on July 19, 2019.  

As of November 14, 2025, we had mortgage debt obligations in the aggregate principal amount of $1.3 billion, with a weighted-average remaining term of 0.8 years.  As of November 14, 2025, our debt obligations consisted of $117.0 million of fixed rate notes payable and $1.2 billion of variable rate notes payable. As of November 14, 2025, the interest rates on $1.0 billion of our variable rate notes payable were effectively fixed through interest rate swap agreements.

As of November 14, 2025, we have $790.0 million of loan maturities and required principal paydowns during the next 12 months and $175.5 million of loan maturities and required principal paydowns from November 14, 2026 through December 31, 2026.  As of September 30, 2025, we believe we were in compliance with the financial debt covenants under our notes payable.

Our loan agreements require us to sell two properties in 2025 (which we have completed), two properties in 2026 and up to four properties in 2027.  Selling real estate assets in the current market may result in a lower sale price than we would otherwise obtain.  We may continue to evaluate raising capital through the issuance of new equity or debt to the extent we see improvement in the capital markets.  We may also defer noncontractual expenditures to manage our liquidity needs.

If we are unable to make required principal paydowns under certain loans, sell