$KBSR

KBS Real Estate Investment Trust III, Inc.

CIK:0001482430|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Rental income	$ 52,004	$ 60,904	$ 105,907	$ 121,168
Dividend income from real estate equity securities	0	0	594	261
Other operating income	3,961	4,479	7,853	8,342
Total revenues	55,965	65,383	114,354	129,771
Expenses:
Operating, maintenance and management	14,588	17,267	29,841	34,317
Real estate taxes and insurance	10,051	11,912	19,997	23,772
Asset management fees to affiliate	4,123	4,643	8,278	9,227
General and administrative expenses	1,729	2,279	3,377	4,818
Depreciation and amortization	20,545	25,193	41,745	51,599
Interest expense	24,383	30,508	49,388	58,855
Net (gain) loss on derivative instruments	(40)	(969)	(777)	866
Impairment charges on real estate	17,746	0	28,385	0
Total expenses	93,125	90,833	180,234	183,454
Other income (loss):
Unrealized (loss) gain on real estate equity securities	(2,374)	2,849	(8,547)	(2,374)
Gain on sale of real estate, net	0	0	22,754	0
Other interest income	78	152	168	336
Total other (loss) income, net	(2,296)	3,001	14,375	(2,038)
Net loss	$ (39,456)	$ (22,449)	$ (51,505)	$ (55,721)
Net loss per common share, basic (in dollars per share)	$ (0.27)	$ (0.15)	$ (0.35)	$ (0.38)
Net loss per common share, diluted (in dollars per share)	$ (0.27)	$ (0.15)	$ (0.35)	$ (0.38)
Weighted-average number of common shares outstanding, basic (in shares)	148,516,246	148,516,246	148,516,246	148,516,246
Weighted-average number of common shares outstanding, diluted (in shares)	148,516,246	148,516,246	148,516,246	148,516,246

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
Cash Flows from Operating Activities:
Net loss			$ (51,505)	$ (55,721)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	$ 20,545	$ 25,193	41,745	51,599
Impairment charges on real estate	17,746	0	28,385	0
Unrealized loss on real estate equity securities	2,374	(2,849)	8,547	2,374
Deferred rents			(1,288)	(4,113)
Amortization of above- and below-market leases, net			(89)	(151)
Amortization of deferred financing costs	3,400	3,600	6,765	5,895
Unrealized loss on derivative instruments			118	6,258
Gain on sale of real estate	0	0	(22,754)	0
Changes in operating assets and liabilities:
Rents and other receivables			(110)	2,266
Prepaid expenses and other assets			(3,366)	(3,787)
Accounts payable and accrued liabilities			3,241	(4,943)
Due to affiliate			1,187	346
Other liabilities			5,990	620
Net cash provided by operating activities			16,866	643
Cash Flows from Investing Activities:
Improvements to real estate			(13,010)	(12,671)
Proceeds from sale of real estate, net			48,425	0
Net cash provided by (used in) investing activities			35,415	(12,671)
Cash Flows from Financing Activities:
Proceeds from notes payable			3,818	26,816
Principal payments on notes payable			(50,778)	(3,213)
Payments of deferred financing costs			(1,300)	(6,281)
Net cash (used in) provided by financing activities			(48,260)	17,322
Net increase in cash, cash equivalents and restricted cash			4,021	5,294
Cash, cash equivalents and restricted cash, beginning of period			62,216	41,574	$ 41,574
Cash, cash equivalents and restricted cash, end of period	$ 66,237	$ 46,868	66,237	46,868	$ 62,216
Supplemental Disclosure of Cash Flow Information:
Interest paid			35,026	46,958
Supplemental Disclosure of Noncash Investing and Financing Activities:
Accrued improvements to real estate			4,377	5,615
Accrued deferred loan financing costs			9,538	13,061
Accrued disposition fees			$ 322	$ 500

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Real estate:
Land	$ 186,005	$ 192,272
Buildings and improvements	1,549,005	1,608,950
Tenant origination and absorption costs	20,939	22,309
Total real estate held for investment, cost	1,755,949	1,823,531
Less accumulated depreciation and amortization	(526,923)	(543,443)
Total real estate held for investment, net	1,229,026	1,280,088
Real estate held for sale, net	0	22,109
Total real estate, net	1,229,026	1,302,197
Real estate equity securities	38,226	46,773
Total real estate and real estate-related investments, net	1,267,252	1,348,970
Cash and cash equivalents	26,634	23,659
Restricted cash	39,603	38,557
Rents and other receivables, net	92,493	93,352
Above-market leases, net	18	52
Assets related to real estate held for sale, net	0	4,187
Prepaid expenses and other assets	52,602	54,332
Total assets	1,478,602	1,563,109
Liabilities and equity
Notes payable, net	1,240,114	1,235,152
Notes payable related to real estate held for sale, net	0	47,500
Total notes payable, net	1,240,114	1,282,652
Accounts payable and accrued liabilities	36,750	31,223
Due to affiliate	21,004	19,817
Below-market leases, net	107	230
Liabilities related to real estate held for sale, net	0	317
Other liabilities	54,329	51,067
Total liabilities	1,352,304	1,385,306
Commitments and contingencies (Note 13)
Redeemable common stock	0	0
Stockholders’ equity:
Preferred stock, $.01 par value per share; 10,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.01 par value per share; 1,000,000,000 shares authorized, 148,516,246 and 148,516,246 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	1,485	1,485
Additional paid-in capital	1,313,297	1,313,297
Cumulative distributions in excess of net income	(1,188,484)	(1,136,979)
Total stockholders’ equity	126,298	177,803
Total liabilities and equity	$ 1,478,602	$ 1,563,109