Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 24

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 For information on non-cash impairment charges during the three and nine months ended September 30, 2025, see Note 4, “Real Estate.”During the three and nine months ended September 30, 2025, the Company’s interest expense related to notes payable was $29.1 million and $88.0 million, respectively, and during the three and nine months ended September 30, 2024, the Company’s interest expense related to notes payable was $32.1 million and $97.7 million, respectively, which excludes the impact of interest rate swaps put in place to mitigate the Company’s exposure to rising interest rates on its variable rate notes payable.  See Note 9, “Derivative Instruments.”  Included in interest expense was the amortization of deferred financing costs of $3.3 million and $9.2 million for the three and nine months ended September 30, 2025, respectively, and $1.8 million and $7.8 million for the three and nine months ended September 30, 2024, respectively.  As of September 30, 2025 and December 31, 2024, $7.8 million and $8.6 million of interest expense were payable, respectively.  The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of September 30, 2025 (in thousands):October 1, 2025 through December 31, 2025$1,607 2026964,175 2027327,500 2028— 2029— Thereafter— $1,293,282 

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Table of ContentsPART I. FINANCIAL INFORMATION (CONTINUED)Item 1.  Financial Statements (continued)KBS REAL ESTATE INVESTMENT TRUST III, INC.CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)September 30, 2025(unaudited)8.       NOTES PAYABLE (CONTINUED)

The Company’s notes payable contain financial debt covenants.  As of September 30, 2025, the Company believes it was in compliance with the financial debt covenants under its notes payable.  The Company’s loan agreements contain cross default provisions, including that the failure of one or more of the Company’s subsidiaries to pay debt as it matures under one debt