Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 177

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 177
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ovenants included in our loan agreements as a result of refinancing certain of our debt facilities, we do not expect to redeem any shares of common stock until certain loans are repaid or refinanced.  One of the loans with these restrictions has a current maturity of January 2027 but may be extended subject to the terms and conditions of the loan agreement.  We terminated our share redemption program on March 15, 2024.

Under our charter, we are required to limit our total operating expenses to the greater of 2% of our average invested assets or 25% of our net income for the four most recently completed fiscal quarters, as these terms are defined in our charter, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors.  Operating expenses for the four fiscal quarters ended September 30, 2025 did not exceed the charter-imposed limitation.  

Cash Flows from Operating Activities

During the nine months ended September 30, 2025 and 2024, net cash provided by operating activities was $3.5 million and $6.8 million, respectively.  Net cash provided by operating activities decreased during the nine months ended September 30, 2025 primarily as a result of $6.6 million of interest rate swap settlement proceeds received in 2024 for early terminated swaps and the sales of real estate properties in February 2024, November 2024, July 2025 and September 2025, offset by the timing of payments and cash receipts.

Cash Flows from Investing Activities

Net cash provided by investing activities was $201.6 million for the nine months ended September 30, 2025 due to $220.1 million of net proceeds from the sales of Sterling Plaza and Park Place Village, offset by $18.5 million used in improvements to real estate.  

Cash Flows from Financing Activities

During the nine months ended September 30, 2025, net cash used in financing activities was $166.7 million as a result of principal payments on notes payable of $187.0 million and payments of deferred financing costs of $8.9 million, offset by proceeds from notes payable of $29.2 million.

We also expect to use our capital resources to make certain payments to our advisor.  We currently make payments to our advisor in connection with the management of our investments and costs incurred by our advisor in providing services to us.  We also pay fees to our advisor in