Company: KBSR
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001482430-25-000025
Chunk: 30

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 30
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al or termination we do not retain an advisor in which our advisor or its affiliates have a majority interest. Upon termination of the advisory agreement, all unpaid Deferred Asset Management Fees will automatically be forfeited by our advisor, and if the advisory agreement is terminated for cause, any residual amount of the Bonus Retention Fund deemed to be additional Deferred Asset Management Fees will also automatically be forfeited by our advisor.

From January 1, 2024 through February 28, 2025, we incurred $22.6 million in asset management fees. From January 1, 2024 through February 28, 2025, we paid $21.0 million in asset management fees, none of which related to asset management fees incurred in prior periods. As of February 28, 2025, we had accrued $18.6 million of asset management fees, including $8.5 million of Deferred Asset Management Fees, $8.5 million of asset management fees that were restricted for payment pursuant to the advisory agreement related to the Bonus Retention Fund, $0.3 million of asset management fees that were deferred in connection with agreements related to the refinancing of our debt obligations and $1.3 million of asset management fees are payable as of February 28, 2025.

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Under the advisory agreement, our advisor has the right to seek reimbursement from us for all costs and expenses it incurs in connection with the provision of services to us, including our allocable share of our advisor’s overhead, such as rent, employee costs, utilities, accounting software costs and cybersecurity costs. With respect to employee costs, and other than future payments pursuant to the Bonus Retention Fund, at this time our advisor only expects to seek reimbursement for our allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to us. We currently do not reimburse our advisor for employee costs in connection with services for which our advisor earns acquisition or origination fees or disposition fees (other than reimbursement of travel and communication expenses), and other than future payments pursuant to the Bonus Retention Fund, we do not reimburse our advisor for the salaries and benefits our advisor or its affiliates may pay to our executive officers or our directors that are affiliated with our advisor.

From January 1, 2024 through February 28, 2025, we reimbursed our advisor for $0.4 million of operating expenses (of which $0.3 million was payable as of February 28, 2025