Company: KBSR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001482430-25-000042
Chunk: 222

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 222
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 where the swapped floating rate (one-month Term SOFR) at June 30, 2025 is higher than the fixed rate in the swap agreement, interest payments on interest rate swaps in the above debt obligations table would reflect zero as we would not be obligated to make any interest payments on those swaps and instead expect to receive payments from our swap counter-parties.

(4) We recognized net realized gains related to interest rate swaps of $5.4 million, excluding unrealized loss on derivative instruments of $6.3 million, during the six months ended June 30, 2025.  

For additional information regarding our debt obligations and loan maturities, see “—Going Concern Considerations,” “—Market Outlook – Real Estate and Real Estate Finance Markets” and “—Liquidity and Capital Resources.”  

44

Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)

Results of Operations

Overview

As of June 30, 2024, we owned 14 office properties, one mixed-use office/retail property and an investment in the equity securities of the SREIT.  Subsequent to June 30, 2024, we sold one office property.  As a result, as of June 30, 2025, we owned 13 office properties (one of which was held for sale and subsequently sold on July 11, 2025), one mixed-use office/retail property and an investment in the equity securities of the SREIT.  Therefore, the results of operations presented for the three and six months ended June 30, 2025 and 2024 are not directly comparable.  The following table provides summary information about our results of operations for the three and six months ended June 30, 2025 and 2024 (dollar amounts in thousands):

Comparison of the three months ended June 30, 2025 versus the three months ended June 30, 2024 

Three Months EndedJune 30,Increase(Decrease)Percentage Change$ Changes Due to Dispositions of Properties (1)$ Change Due to Properties HeldThroughout Both Periods (2) 20252024Rental income$60,904 $64,681 $(3,777)(6)%$(4,424)$647 Other operating income4,479 4,715 (236)(5)%(405)169