Company: KBSR
Filing Date: 2025-12-19
Form Type: 8-K
Source: 0001482430-25-000057
Chunk: 3

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-12-19
Form: 8-K
Item: Item 8.01
Chunk 3
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 in units of Prime US REIT as of November 14, 2024, (iv) estimated contractual loan financing fees and costs incurred for the period from October 1, 2024 through December 20, 2024 and (v) valuations performed by the Advisor with respect to the Company’s cash, other assets, notes payable and other liabilities as of September 30, 2024. For more information relating to the December 12, 2024 estimated value per share and the assumptions and methodologies used by Kroll and the Advisor, see Part II, Item 5 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “ SEC”) on March 14, 2025.

(2) The estimated value of the Appraised Properties was $1.6 billion. The decrease in the estimated value of real estate properties per share was primarily due to (i) the sale of three properties during the period from September 30, 2024 through September 30, 2025 and (ii) an overall decrease in the value of the Appraised Properties as a result of the ongoing challenges affecting the U. S. commercial real estate industry, especially as it pertains to commercial office buildings, and the elevated interest rate environment.

(3) The increase in estimated value of cash, restricted cash and cash equivalents per share was primarily due to an increase in restricted cash related to cash sweep arrangements required by the Company’s loan agreements. As of September 30, 2025, six of the Company’s debt facilities (representing $1.3 billion of the Company’s outstanding debt that are secured by 12 of its properties) are subject to cash sweep arrangements, whereby each month the excess cash flow from the properties securing the loan is deposited into a cash management account held for the benefit of the Company’s lenders. In addition, in connection with the disposition of one of the Company’s properties in July 2025, $30.0 million of the net sales proceeds was deposited into a cash sweep collateral account established pursuant to one of the Company’s portfolio loan facilities to be used for approved tenant improvements, leasing commissions and capital improvements, for operating shortfalls for the properties included in that portfolio loan and for certain other limited fees and expenses, subject to the terms of loan agreement.

(4) The decrease in estimated value of notes payable per share was primarily due to the paydown of notes payable in conjunction with