Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 198

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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 interest rate swaps to move towards zero, decreasing the net gains or losses on derivative instruments.

During the nine months ended September 30, 2025, we recorded non-cash impairment charges of $65.5 million to write down the carrying value of The Almaden (located in San Jose, California), Towers at Emeryville (located in Emeryville, California) and 60 South Sixth (located in Minneapolis, Minnesota) to their estimated fair values.  During the nine months ended September 30, 2024, we recorded non-cash impairment charges of $6.8 million to write down the carrying value of 60 South Sixth to its estimated fair value.  For the facts and circumstances leading to the impairments on our real estate held for investment during the nine months ended September 30, 2025 and 2024, see our discussion above under “ — Comparison of the three months ended September 30, 2025 versus the three months ended September 30, 2024.”

During the nine months ended September 30, 2025, we recorded an unrealized gain on real estate equity securities of $6.2 million, and during the nine months ended September 30, 2024, we recorded unrealized losses on real estate equity securities of $7.4 million, as a result of the change in the closing price of the units of the SREIT on the SGX-ST. 

During the nine months ended September 30, 2024, we recognized a gain on extinguishment of debt of $56.4 million in connection with the deed-in-lieu of foreclosure transaction related to the 201 Spear Street Mortgage Loan.  The gain on extinguishment of debt related to the 201 Spear Street Mortgage Loan represents the difference between the carrying amount of the outstanding debt and other liabilities of approximately $128.7 million and the carrying value of the real estate property and other assets of approximately $72.3 million, at the time of the transfer of the 201 Spear Street property and other assets in satisfaction of the loan.  We did not record any gain on extinguishment of debt during the nine months ended September 30, 2025.

We recognized a gain on sale of real estate of $77.4 million during the nine months ended September 30, 2025 related to the dispositions of Sterling Plaza in July 2025 and Park Place Village in September 2025.  We recognized a gain on sale of real estate of