Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 233

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 233
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der of 20252026-20272028-2029ThereafterOutstanding debt obligations (1)$1,293,282 $1,607 $1,291,675 $— $— Interest payments on outstanding debt obligations (2) 87,285 22,984 64,301 — Interest payments on interest rate swaps (3) (4)— — — — — 

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(1) Amounts include principal payments only based on maturity dates as of September 30, 2025.  The maturity dates of certain loans may be extended beyond their current maturity dates; however, the extension options are subject to certain terms and conditions contained in the loan documents some of which are more stringent than our current loan compliance tests.  See the above discussion under “—Liquidity and Capital Resources” and “—Going Concern Considerations.”  

(2) Projected interest payments are based on the outstanding principal amounts, maturity dates and interest rates in effect as of September 30, 2025 (consisting of the contractual interest rate and using interest rate indices as of September 30, 2025, where applicable).  We incurred interest expense related to notes payable of $78.8 million, excluding amortization of deferred financing costs totaling $9.2 million, during the nine months ended September 30, 2025.  

(3) Projected interest payments on interest rate swaps are calculated based on the notional amount, effective term of the swap contract, and fixed rate net of the swapped floating rate in effect as of September 30, 2025.  In the case where the swapped floating rate (one-month Term SOFR) at September 30, 2025 is higher than the fixed rate in the swap agreement, interest payments on interest rate swaps in the above debt obligations table would reflect zero as we would not be obligated to make any interest payments on those swaps and instead expect to receive payments from our swap counter-parties.

(4) We recognized net realized gains related to interest rate swaps of $8.1 million, excluding unrealized loss on derivative instruments of $8.4 million, during the nine months ended September 30, 2025.  

For additional information regarding our debt obligations and loan maturities, see “—Going Concern Considerations,” “—Market Outlook – Real Estate and Real Estate Finance Markets” and “—Liquidity and Capital Resources.”  

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