Company: KBSR
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001482430-25-000054
Chunk: 83

Company: KBS Real Estate Investment Trust III, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 (8,757)(10)%(7,666)(1,091)Interest expense87,981 97,716 (9,735)(10)%(978)(8,757)Net loss (gain) on derivative instruments315 (6,137)6,452 (105)%— 6,452 Impairment charges on real estate65,475 6,847 58,628 856 %— 58,628 Unrealized gain (loss) on real estate equity securities6,173 (7,403)13,576 (183)%— 13,576 Gain from extinguishment of debt— 56,372 (56,372)(100)%(56,372)— Gain on sale of real estate, net77,401 14,781 62,620 424 %62,620 — Other interest income465 991 (526)(53)%n/an/a

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(1) Represents the dollar amount increase (decrease) for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 related to the dispositions of properties after January 1, 2024.  Interest expense incurred on portfolio loans is not allocated to the individual properties that serve as collateral for these portfolio loans and therefore, the decrease in interest expense related to the two office properties sold during the year ended December 31, 2024 and one office property sold during the nine months ended September 30, 2025 is not reflected in the column for changes due to dispositions of properties.  During the year ended December 31, 2024, we repaid $186.6 million of outstanding principal debt with the net sale proceeds from sale of two office properties during 2024.  During the nine months ended September 30, 2025, we repaid $87.7 million of outstanding principal debt with the net sale proceeds from the sale of one office property in July 2025.  

(2) Represents the dollar amount increase (decrease) for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 related to real estate investments owned by us throughout both periods presented.

Rental income from our real estate properties decreased from $193.6 million for the nine months ended September 30, 2024 to $178.3 million for the nine months ended September