KBS REIT III Enters Material Agreement, New Financial Obligation

TL;DR

**KBS REIT III just took on a new major financial obligation, watch for details.**

AI Summary

KBS Real Estate Investment Trust III, Inc. filed an 8-K on February 12, 2024, reporting a material definitive agreement and the creation of a direct financial obligation on February 6, 2024. This indicates the company has entered into a significant new financial commitment, which could impact its future cash flow and debt levels. For investors, this means the company's financial health and risk profile may have changed, potentially affecting the stock's valuation.

Why It Matters

This filing signals a new financial commitment for KBS Real Estate Investment Trust III, Inc., which could affect its balance sheet and future profitability. Investors should monitor the details of this obligation as it could impact the company's ability to generate returns.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specifying its nature or size, introducing uncertainty about its potential impact on the company's financial health.

Analyst Insight

A smart investor would await further disclosures from KBS Real Estate Investment Trust III, Inc. regarding the specifics of the material definitive agreement and financial obligation to assess its impact on the company's financial health and future prospects before making any investment decisions.

Key Players & Entities

• KBS Real Estate Investment Trust III, Inc. (company) — the registrant filing the 8-K
• February 6, 2024 (date) — date of the earliest event reported
• February 12, 2024 (date) — date the 8-K was filed

Forward-Looking Statements

• KBS Real Estate Investment Trust III, Inc. will provide more details about the material definitive agreement and financial obligation in a subsequent filing or earnings call. (KBS Real Estate Investment Trust III, Inc.) — high confidence, target: Q1 2024 earnings report

FAQ

Key Financial Figures

• $601.3 million — rtfolio Loan Facility was approximately $601.3 million as of February 6, 2024. Under the Four
• $100,000,000 — k for purposes of raising not less than $100,000,000 in new equity, debt or a combination of
• $5.0 million — de or amount guaranteed is greater than $5.0 million. The Amended and Restated Portfolio Lo
• $0.9 m — s a non-refundable fee in the amount of $0.9 million, (b) to deposit $5.0 million into
• $1.0 m — an Lenders an exit fee in the amount of $1.0 million, which is due on the earliest to

Filing Documents

• kbsriii-20240206.htm (8-K) — 35KB
• 0001482430-24-000007.txt ( ) — 154KB
• kbsriii-20240206.xsd (EX-101.SCH) — 2KB
• kbsriii-20240206_lab.xml (EX-101.LAB) — 22KB
• kbsriii-20240206_pre.xml (EX-101.PRE) — 11KB
• kbsriii-20240206_htm.xml (XML) — 3KB

01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT The information in this Report set forth under Item 2.03 regarding the Amended and Restated Portfolio Loan Facility (defined below) is incorporated herein by reference. ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT Amended and Restated Portfolio Loan Facility On November 3, 2021, certain of KBS Real Estate Investment Trust III, Inc.'s ("KBS REIT III") indirect wholly owned subsidiaries (the "Amended and Restated Portfolio Loan Facility Borrowers"), entered into a two-year loan agreement with Bank of America, N.A., as administrative agent (the "Agent"); BofA Securities, Inc., Wells Fargo Securities, LLC and Capital One, National Association as joint lead arrangers and joint book runners; Wells Fargo Bank, N.A., as syndication agent; and each of the financial institutions signatory thereto as lenders (as subsequently modified and amended, the "Amended and Restated Portfolio Loan Facility"). The current lenders under the Amended and Restated Portfolio Loan Facility are Bank of America, N.A.; Wells Fargo Bank, National Association; U.S. Bank, National Association; Capital One, National Association; PNC Bank, National Association; Regions Bank; and Zions Bankcorporation, N.A., DBA California Bank & Trust (together, the "Portfolio Loan Lenders"). The Amended and Restated Portfolio Loan Facility is secured by 60 South Sixth, Preston Commons, Sterling Plaza, Towers at Emeryville, Ten Almaden and Town Center (the "Properties"). On February 6, 2024, KBS REIT III, through the Amended and Restated Portfolio Loan Facility Borrowers, entered into a fourth loan modification and extension agreement with the Agent and the Portfolio Loan Lenders (the "Fourth Extension Agreement"). Pursuant to the Fourth Extension Agreement, the Agent and Portfolio Loan Lenders agreed to extend the maturity of the facility to August 6, 2024. The aggregate outstanding

Forward-Looking Statements

Forward-Looking Statements Certain statements included in this Current Report on Form 8-K are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of KBS REIT III and members of its 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 KBS REIT III's plans, strategies and prospects, including its ability to comply with any terms, conditions, obligations or covenants contained in any agreements related to debt obligations, including but not limited to its ability to raise capital as required by the Fourth Extension Agreement. 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 KBS REIT III undertakes 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. Moreover, you should interpret many of the risks identified in this report, as well as the risks set forth below, as being heightened as a result of the continued disruptions in the financial markets impacting the U.S. commercial real estate industry, especially as it pertains to commercial office buildings. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A of KBS REIT III's Annual Report on Form 10-K for the year ended December 31, 2022 and in Part II, Item 1A of KBS REIT III's Quarterly Reports on Form 10-Q, each as filed with the Secur

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KBS REAL ESTATE INVESTMENT TRUST III, INC. Dated: February 12, 2024 BY: /s/ Jeffrey K. Waldvogel Jeffrey K. Waldvogel Chief Financial Officer, Treasurer and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR