Company: KBSR
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001482430-25-000021
Chunk: 66

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 15
Chunk 66
---
 the leases, including leases that have been executed but not yet commenced, had remaining terms, excluding options to extend, of up to 14.5 years with a weighted-average remaining term of 5.6 years.  Some of the leases have provisions to extend the term of the leases, options for early termination for all or a part of the leased premises after paying a specified penalty, and other terms and conditions as negotiated.  The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants.  Generally, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit.  The amount required as a security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount.  Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit.  Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $8.4 million and $10.0 million as of December 31, 2024 and 2023, respectively.  During the years ended December 31, 2024, 2023 and 2022, the Company recognized deferred rent from tenants of $8.6 million, $7.6 million and $10.9 million, respectively.  As of December 31, 2024 and 2023, the cumulative deferred rent balance was $95.1 million and $87.2 million, respectively, and is included in rents and other receivables on the accompanying balance sheets.  The cumulative deferred rent balance included $17.9 million and $15.2 million of unamortized lease incentives as of December 31, 2024 and 2023, respectively.  As of December 31, 2024, the future minimum rental income from the Company’s properties under its non-cancelable operating leases was as follows (in thousands):2025$173,216 2026166,042 2027144,762 2028125,612 2029103,562 Thereafter377,923 $1,091,117 As of December 31, 2024, the Company’s office and office/retail properties were leased to approximately 460 tenants over a diverse range of industries and geographic areas.  As