Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 82

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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 as a result of changes in cash flow estimates which resulted in the future estimated undiscounted cash flows being lower than the net carrying value of the property.  The decrease in cash flow projections was primarily due to the continued challenges in the leasing environment. 

During the three months ended September 30, 2025, we recorded an unrealized gain on real estate equity securities of $8.5 million, and during the three months ended September 30, 2024, we recorded an unrealized gain on real estate equity securities of $16.6 million, as a result of the change in the closing price of the units of the SREIT on the SGX-ST.   

We recognized a gain on sale of real estate of $77.4 million during the three months ended September 30, 2025 related to the dispositions of Sterling Plaza in July 2025 and Park Place Village in September 2025.  We did not dispose of any real estate during the three months ended September 30, 2024.

49

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

Comparison of the nine months ended September 30, 2025 versus the nine months ended September 30, 2024 

Nine Months Ended September 30,Increase(Decrease)Percentage Change$ Changes Due to Dispositions of Properties (1)$ Change Due to Properties HeldThroughout Both Periods (2) 20252024Rental income$178,302 $193,576 $(15,274)(8)%$(17,106)$1,832 Dividend income from real estate equity securities546 967 (421)(44)%— (421)Other operating income12,548 13,688 (1,140)(8)%(1,358)218 Operating, maintenance and management52,150 53,852 (1,702)(3)%(3,863)2,161 Real estate taxes and insurance35,130 37,807 (2,677)(7)%(2,455)(222)Asset management fees to affiliate13,728 14,762 (1,034)(7)%(1,119)85 General and administrative expenses5,729 14,155 (8,426)(60)%n/an/aDepreciation and amortization74,802 83,559