Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 94

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 94
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16$1,300,000 Fallback SOFR (2)/Fixed at 1.08% - 1.28%One-month Term SOFR/Fixed at 2.38% - 3.92%3.1%1.4Interest rate cap (3)—$— 1$125,000 (3)(3)(3)_____________________(1) In February 2024, the Company terminated two interest rate swap agreements and received aggregate settlement payments of $6.6 million.(2) Upon cessation of one-month LIBOR on June 30, 2023, eight of the Company’s interest rate swaps which bore interest at one-month LIBOR were automatically converted to a fallback rate (“Fallback SOFR”) plus an 11.448 basis point adjustment.  As of December 31, 2024, the Company had two remaining interest rate swaps which had been converted to Fallback SOFR, each with a maturity date of January 1, 2025.(3) The interest rate cap expired in January 2024.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 December 31, 2024 and 2023 (dollars in thousands):December 31, 2024December 31, 2023Derivative InstrumentsBalance Sheet LocationNumber of InstrumentsFair ValueNumber of InstrumentsFair ValueDerivative instruments not designated as hedging instrumentsInterest rate swapsPrepaid expenses and other assets, at fair value 14$10,509 15$23,891 Interest rate swapsOther liabilities, at fair value—$— 1$(175)Interest rate capPrepaid expenses and other assets, at fair value—$— 1$— 

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Table of ContentsKBS REAL ESTATE INVESTMENT TRUST III, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)December 31, 20249.      DERIVATIVE INSTRUMENTS (CONTINUED)

The following table summarizes the effects of derivative instruments on the Company’s consolidated statements of operations (in thousands): For the Years Ended December 31, 202420232022Derivatives not designated as hedging instrumentsRealized loss recognized on interest rate swaps$— $— $7,152 Realized gain recognized on interest rate swaps(24,289)(31,358)(6,895)Unrealized loss (gain