Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 12

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 creditworthiness of the tenant, but generally is not a significant amount.  Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit.  Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $8.9 million and $8.4 million as of June 30, 2025 and December 31, 2024, respectively.  During the six months ended June 30, 2025 and 2024, the Company recognized deferred rent from tenants of $4.1 million and $5.7 million, respectively.  As of June 30, 2025 and December 31, 2024, the cumulative deferred rent balance was $95.1 million and $92.8 million, respectively, and is included in rents and other receivables on the accompanying balance sheets.  The cumulative deferred rent balance included $16.9 million and $17.5 million of unamortized lease incentives as of June 30, 2025 and December 31, 2024, respectively.  As of June 30, 2025, the future minimum rental income from the Company’s properties held for investment under its non-cancelable operating leases was as follows (in thousands):July 1, 2025 through December 31, 2025$83,191 2026163,699 2027144,924 2028127,168 2029106,065 Thereafter377,010 $1,002,057 

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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)4.      REAL ESTATE (CONTINUED)

As of June 30, 2025, the Company’s office and office/retail properties held for investment were leased to approximately 400 tenants over a diverse range of industries and geographic areas.  As of June 30, 2025, no tenant accounted for more than 10% of annualized base rent.  Geographic Concentration RiskAs of June 30, 2025, the Company’s net investments in real estate held for investment in Illinois, California