Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 219

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 219
---
 shares purchased by stockholders by the issue price, reduced by any amounts to repurchase shares pursuant to our share redemption program.  The Stockholders’ 8% Return is not based on the return provided to any individual stockholder.  Accordingly, it is not necessary for each of our stockholders to have received any minimum return in order for our advisor to receive Deferred Asset Management Fees.  

In addition, the current advisory agreement provides that any and all Deferred Asset Management Fees that are unpaid will also be immediately due and payable upon the earlier of: 

(i)     a listing of our shares of common stock on a national securities exchange; 

(ii)    our liquidation and dissolution;  

(iii)    a transaction involving the acquisition, merger, conversion or consolidation, either directly or indirectly, of us in which (y) we are not the surviving entity and (z) our advisor is no longer serving as an advisor or asset manager to the surviving entity in such transaction; and 

(iv)    the sale or other disposition of all or substantially all of our assets.

The advisory agreement may be terminated (i) upon 60 days written notice without cause or penalty by either us (acting through the conflicts committee) or our advisor or (ii) immediately by us for cause or upon the bankruptcy of our advisor.  If the advisory agreement is terminated without cause, then our advisor will be entitled to receive from us any residual amount of the Bonus Retention Fund deemed to be additional Deferred Asset Management Fees, provided that upon such non-renewal 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.  

As of June 30, 2025, we had accrued $19.1 million of asset management fees, of which $8.5 million were Deferred Asset Management Fees.  Also included in accrued asset management fees as of June 30, 2025 were $8.5 million of restricted cash deposited into the Bonus Retention Fund and $0.7 million of asset management fees that were deferred in connection with agreements related to the refinancing of our debt obligations.  We had not made any payments to our advisor from the Bonus Ret