Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 136

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 1.  Financial Statements (continued)KBS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)June 30, 2025(unaudited)9.      DERIVATIVE INSTRUMENTS (CONTINUED)

As of June 30, 2025, the Company has entered into 12 interest rate swaps, which were not designated as hedging instruments.  The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2025 and December 31, 2024.  The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks (dollars in thousands): June 30, 2025December 31, 2024 Weighted-Average Fix Pay RateWeighted-Average Remaining Term in YearsDerivative InstrumentsNumber of InstrumentsNotional AmountNumber of InstrumentsNotional AmountReference Rate as of June 30, 2025Derivative instruments not designated as hedging instrumentsInterest rate swaps (1)12$1,000,000 14$1,100,000 One-month Term SOFR/Fixed at 2.38% - 3.92%3.3%1.1_____________________(1) During the six months ended June 30, 2025, two of the Company’s interest rate swaps expired.  The following table sets forth the fair value of the Company’s derivative instruments as well as their classification on the consolidated balance sheets as of June 30, 2025 and December 31, 2024 (dollars in thousands):June 30, 2025December 31, 2024Derivative InstrumentsBalance Sheet LocationNumber of InstrumentsFair ValueNumber of InstrumentsFair ValueDerivative instruments not designated as hedging instrumentsInterest rate swapsPrepaid expenses and other assets, at fair value11$4,365 14$10,509 Interest rate swapsOther liabilities, at fair value1$(114)—$— The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands):  For the Three Months EndedJune 30,For the Six Months EndedJune 30, 202520242025