KBS Real Estate Investment Trust III, Inc. Files 2023 Annual Report

TL;DR

<b>KBS Real Estate Investment Trust III, Inc. has filed its annual 10-K report for the fiscal year ended December 31, 2023.</b>

AI Summary

KBS Real Estate Investment Trust III, Inc. (KBSR) filed a Annual Report (10-K) with the SEC on March 19, 2024. KBS Real Estate Investment Trust III, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business address is 800 Newport Center Drive, Suite 700, Newport Beach, CA 92660. The filing was made on March 19, 2024. The company is incorporated in Maryland.

Why It Matters

For investors and stakeholders tracking KBS Real Estate Investment Trust III, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the fiscal year 2023. Investors and stakeholders can use this report to assess the REIT's financial health, strategic direction, and potential future performance.

Risk Assessment

Risk Level: medium — KBS Real Estate Investment Trust III, Inc. shows moderate risk based on this filing. The company's financial health and future prospects are subject to the inherent risks of real estate investment, including market fluctuations, interest rate changes, and property-specific issues, as detailed in the 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K filing to understand the company's performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-19 — Filing Date (Date of submission)
• 0001482430-24-000025 — Accession Number (Unique identifier for the filing)

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-19 (date) — Filing date
• 800 Newport Center Drive, Suite 700, Newport Beach, CA 92660 (address) — Business address
• MD (state) — State of incorporation
• KBSR (ticker) — Ticker symbol

FAQ

Industry Context

KBS Real Estate Investment Trust III, Inc. operates within the Real Estate Investment Trusts (REITs) sector, focusing on investments in real estate.

Regulatory Implications

The company is subject to SEC regulations governing public filings, including the requirement to submit annual reports (10-K) detailing its financial condition and operations.

What Investors Should Do

1. Analyze the full 10-K document for detailed financial statements and disclosures.
2. Investigate the company's property portfolio and any segment-specific information if available.
3. Assess the risk factors section for potential threats to the company's performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-19: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no prior filing data is available for comparison.

Key Financial Figures

• $0.01 — ection 12(g) of the Act: Common Stock, $0.01 par value per share __________________
• $9.00 b — are of the Registrant's common stock of $9.00 based on (i) appraisals of the Registrant
• $5.60 b — are of the Registrant's common stock of $5.60 based on the estimated value of the Regis
• $1.2 billion — sh flow. As of March 18, 2024, we have $1.2 billion of loan maturities in the next 12 month
• $601.3 million — cipal balance of which is approximately $601.3 million. Among other requirements, the extensio
• $100.0 million — nt requires that we raise not less than $100.0 million in new equity, debt or a combination of
• $1.7 billion — offering for gross offering proceeds of $1.7 billion. As of December 31, 2023, we had also s
• $471.3 million — ent plan for gross offering proceeds of $471.3 million. Also as of December 31, 2023, we had r
• $789.2 million — sold in our initial public offering for $789.2 million. On March 15, 2024, we terminated our d
• $2.4 m — ued 258,462 shares of common stock, for $2.4 million, in private transactions exempt f
• $5.0 million — de or amount guaranteed is greater than $5.0 million. In order to refinance, restructure or

Filing Documents

• kbsriii-20231231.htm (10-K) — 2537KB
• kbsriiiq42023exhibit1023.htm (EX-10.23) — 97KB
• kbsriiiq42023exhibit1024.htm (EX-10.24) — 98KB
• kbsriiiq42023exhibit1025.htm (EX-10.25) — 116KB
• kbsriiiq42023exhibit1055.htm (EX-10.55) — 88KB
• kbsriiiq42023exhibit211.htm (EX-21.1) — 12KB
• kbsriiiq42023exhibit311.htm (EX-31.1) — 12KB
• kbsriiiq42023exhibit312.htm (EX-31.2) — 11KB
• kbsriiiq42023exhibit321.htm (EX-32.1) — 7KB
• kbsriiiq42023exhibit322.htm (EX-32.2) — 6KB
• kbsq42023ex1023pic1.jpg (GRAPHIC) — 9KB
• kbsq42023ex1023pic2.jpg (GRAPHIC) — 9KB
• kbsq42023ex1024pic1.jpg (GRAPHIC) — 9KB
• kbsq42023ex1024pic2.jpg (GRAPHIC) — 9KB
• kbsq42023ex1025pic1.jpg (GRAPHIC) — 5KB
• kbsriii-20231231_g1.jpg (GRAPHIC) — 47KB
• kbsriii-20231231_g2.jpg (GRAPHIC) — 44KB
• kbsriii-20231231_g3.jpg (GRAPHIC) — 86KB
• 0001482430-24-000025.txt (&nbsp;) — 12062KB
• kbsriii-20231231.xsd (EX-101.SCH) — 84KB
• kbsriii-20231231_cal.xml (EX-101.CAL) — 100KB
• kbsriii-20231231_def.xml (EX-101.DEF) — 455KB
• kbsriii-20231231_lab.xml (EX-101.LAB) — 787KB
• kbsriii-20231231_pre.xml (EX-101.PRE) — 640KB
• kbsriii-20231231_htm.xml (XML) — 1557KB

RISK FACTORS

ITEM 1A. RISK FACTORS 12

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 42

CYBERSECURITY

ITEM 1C. CYBERSECURITY 42

PROPERTIES

ITEM 2. PROPERTIES 44

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 45

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 45 PART II 46

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 46

[RESERVED]

ITEM 6. [RESERVED] 56

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 56

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 76

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 78

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 79

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 79

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 79

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 79 PART III 80

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 80

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 80

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 80

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 80 ITEM14. PRINCIPAL ACCOUNTING FEES AND SERVICES 80 PART IV 81

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 81

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 87 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS F- 1 1 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements included in this Annual Report on Form 10-K are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of KBS Real Estate Investment Trust III, Inc. and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. These include statements about our plans, strategies, and prospects and these statements are subject to known and unknown risks and uncertainties. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. For a discussion of some of the risks and uncertainties, although not all risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements, see the risks identified in "Summary Risk Factors" below and in Part I, Item 1A of this Annual Report on Form 10-K (the "Annual Report"). SUMMARY RISK FACTORS The following is a summary of the principal risks that could adversely affect our business, financial condition, results of operations and cash flows and our ability to continue as a going concern. This summary highlights certain of the risks that are discussed further in this Annual Report but does not address all the risks that we face. For additional discussion of the risks summarized below and a discussion of other risks that we face, see "Risk

BUSINESS

ITEM 1. BUSINESS Overview KBS Real Estate Investment Trust III, Inc. (the "Company") is a Maryland corporation that has elected to be taxed as a real estate investment trust ("REIT") and it intends to continue to operate in such a manner. As used herein, the terms "we," "our" and "us" refer to the Company and as required by context, KBS Limited Partnership III, a Delaware limited partnership, which we refer to as our "Operating Partnership," and to their subsidiaries. We conduct our business primarily through our Operating Partnership, of which we are the sole general partner. We have invested in a diverse portfolio of real estate investments. As of December 31, 2023, we owned 16 office properties (of which one property was held for non-sale disposition), one mixed-use office/retail property and an investment in the equity securities of a Singapore real estate investment trust (the "SREIT"). On December 29, 2023, we entered a deed-in-lieu of foreclosure transaction with the 201 Spear Street mortgage lender. On January 9, 2024, the mortgage lender transferred title to the 201 Spear Street property to a third-party buyer of the mortgage loan. Additionally, on February 21, 2024, we sold the McEwen Building to a third-party buyer. We commenced our initial public offering on October 26, 2010, the primary portion of which terminated in July 2015. KBS Capital Markets Group LLC served as dealer manager for the offering. We sold 169,006,162 shares of common stock in our now-terminated primary initial public offering for gross offering proceeds of $1.7 billion. As of December 31, 2023, we had also sold 46,154,757 shares of common stock under our dividend reinvestment plan for gross offering proceeds of $471.3 million. Also as of December 31, 2023, we had redeemed or repurchased 74,644,349 shares sold in our initial public offering for $789.2 million. On March 15, 2024, we terminated our dividend reinvestment plan and our share redemption program. See below "– Going Concer

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View this 10-K filing on SEC EDGAR