Kbs Real Estate Invt Tr Iii Inc. · OTC:KBSR
Kbs Real Estate Invt Tr Iii — KBS Real Estate Investment Trust III — Corporate Update (February 2025)
32 slides from Kbs Real Estate Invt Tr Iii's corporate update, Feb 28, 2025
Slide 1: Portfolio Update February 2025
1 3003 Washington Arlington, VA February 2025 Portfolio Update Exhibit 99.1
Slide 2: Important Disclosures
KBS-CMG.COM 2 The information contained herein should be read in conjunction with, and is qualified by, the information in KBS Real Estate Investment Trust III, Inc.’s (the “Company”, “KBS REIT III”, ”we” or “our”) Annual Report on Form 10-K (the “Annual Report”), and in the Company’s Quarterly Repo
Slide 3: Risks Related to Debt Obligations and Loan Agreements
KBS-CMG.COM 3 In order to refinance, restructure or extend maturing debt obligations, KBS REIT III has been required to reduce the loan commitments and/or make paydowns on certain loans, and KBS REIT III has agreed to satisfy certain conditions that are not in its sole control, including making prin
Slide 4: Real Estate Update
4 Park Place Village Leawood, KS Section 01 Real Estate Update KBS-CMG.COM
Slide 5: 2024 Fund Transaction Recap through February 2025
KBS-CMG.COM 5 2024 Fund Transaction Recap through February 2025 Sold the McEwen building in February 2024 for $49M. Refinanced or extended the following loans1: • Amended and Restated Portfolio Loan Facility - $466M • Accenture Tower Loan - $306M • Modified Portfolio Revolving Loan Facility – $203M
Slide 6: Return to Office Dynamics Shift
KBS-CMG.COM 6 Return to Office Dynamics Shift Among the greatest impacts to the Company’s assets has been the ongoing effects of the pandemic as those relate to office attendance and overall demand for office space. Fortunately, there has been substantial momentum in return to office policies among
Slide 7: Office Market Trends for 2025: Flight to Quality
KBS-CMG.COM 7 According to CBRE, the U.S. enters 2025 with positive momentum in terms of economic growth, potentially setting up the U.S office market for a pivotal switch in 2025, with stabilization paving the way for a new cycle. With that in mind, we highlight the following significant trends imp
Slide 8: Portfolio Overview
KBS-CMG.COM 8 Property / Region Rentable SF Region City/State Actual Leased Occupancy December 31, 2024 Gateway Tech Center 210,938 West Salt Lake City, UT 95% Ten Almaden 309,255 West San Jose, CA 52% Towers at Emeryville 593,484 West Emeryville, CA 58% The Almaden 416,126 West San Jose, CA 78% Wes
Slide 9: Towers at Emeryville, Emeryville, CA
KBS-CMG.COM Towers at Emeryville, Emeryville, CA • Tenant demand remains significantly down from pre-pandemic levels. • In 2024, the market only recorded eight lease transactions over 20,000 SF and eight lease transactions between 10,000-20,000 SF (including renewals) in Oakland Metro’s 27.8M SF off
Slide 10: Ten Almaden and The Almaden, San Jose, CA
KBS-CMG.COM Ten Almaden and The Almaden, San Jose, CA • The Silicon Valley multi-tenant office market experienced some stabilization in 2024, ending the year with a slight reduction in total available space. • However, vacancy rates across Silicon Valley, as is the case with other Bay Area markets,
Slide 11: 60th South Sixth Street, Minneapolis, MN
KBS-CMG.COM 60th South Sixth Street, Minneapolis, MN • In 2018, our former anchor tenant at 60 South Sixth, RBC Wealth Management, announced it would be leaving 280,000 SF for build-to- suit new construction. Another tenant occupying 43,000 SF also left for that new construction in late 2022. Those
Slide 12: Market and Leasing Success: Sterling Plaza, Dallas, TX
KBS-CMG.COM Sterling Plaza, Dallas, TX The asset’s recently completed multimillion-dollar amenity center includes a tenant lounge, conference center, breakout areas, and the expansion and renovation of the fitness center, including new restrooms, showers, and locker facilities. These upgrades have l
Slide 13: Market and Leasing Success (continued): Accenture Tower
KBS-CMG.COM Market and Leasing Success (continued) Section 01 | Real Estate Update 13 Accenture Tower, Chicago, IL Through its programmatic repositioning of the building lobby, amenities, and construction of nearly 200,000 SF of spec suites post-COVID, the building has maintained a 94% average occup
Slide 14: 2024 Leasing Activity
KBS-CMG.COM Ten Almaden San Jose, CA 2024 Leasing Activity Lease Type Total Gross Leasable Area WALT1 Total New/Expansion 349,808 SF 6.23 Total Renewals 342,051 SF 4.70 Total Leases 691,859 SF 5.47 Section 01 | Real Estate Update 14 1 Weighted Average Lease Term includes future leases that had been
Slide 15: Portfolio Occupancy
KBS-CMG.COM 15 Portfolio Occupancy1 Section 01 | Real Estate Update 1 As of quarter end date.
Slide 16: Debt Update
16 The Almaden San Jose, CA Section 02 Debt Update KBS-CMG.COM
Slide 17: Recent Loan Refinancing
KBS-CMG.COM Recent Loan Refinancing During the 12 months ending February 6, 2025, KBS REIT III refinanced or extended a significant amount of maturing debt across six different loans (in excess of $1.3 billion). The refinancing activity provided much needed liquidity relief to the portfolio and prov
Slide 18: Debt Maturities
KBS-CMG.COM Debt Maturities1. 2 Borrower Outstanding Balance (in thousands) Additional Liquidity (in thousands) Total Commitment (in thousands) Initial Maturity Extended Maturity4 Accenture Tower Loan $307,000 $15,000 $322,000 11/2/26 11/2/27 The Almaden Mortgage Loan $118,000 - $118,000 2/1/26 2/1/
Slide 19: Debt Maturities (in thousands)
KBS-CMG.COM 19 Debt Maturities (in thousands) Section 02 | Debt Update Maturities as of December 31, 2023 February 6, 20251 1 Debt balance as of February 6, 2025. During the 12 months ended December 31, 2024, the Company paid down approximately $162.6M of debt, net of draws during the period. 2 Subj
Slide 20: December 2024 Estimated Value
20 515 Congress Austin, TX Section 03 December 2024 Estimated Value KBS-CMG.COM
Slide 21: Value Information
KBS-CMG.COM Value Information • KBS REIT III’s estimated value per share was determined in accordance with the Institute for Portfolio Alternatives’ Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs. • Kroll, an independent, third-party real estate valuation firm, was en
Slide 22: Valuation Summary
KBS-CMG.COM Valuation Summary (in millions) December 20241 Estimated Value December 20232 Estimated Value Real Estate Properties $2,154.7 (96%) $2,440.7 (94.9%) Investment in Prime US REIT Units $28.4 (1%) $26.4 (1.0%) Cash $46.1(2%) $45.1(1.8%) Other Assets3 $21.4 (1%) $60.2 (2.3%) Total Assets $2,
Slide 23: Valuation Change
KBS-CMG.COM Valuation Change December 2023 Estimated Value Per Share $5.60 Real Estate (1.12) Capital Expenditures on Real Estate (0.36) Investment in Prime US REIT Units 0.01 Total Changes Related to Investments (1.47) Modified Operating Cash Flows 2 0.12 Interest Rate Swap (0.26) Loan Financing Fe
Slide 24: Valuation Change Summary by Region
KBS-CMG.COM West Region Valuation Change in Value $507,500,000 -16.7% Avg. Change in Discount Rate Avg. Change in Terminal Cap 50 bps 50 bps Central Region Valuation Change in Value $1,050,600,000 -1.5% Avg. Change in Discount Rate Avg. Change in Terminal Cap 13 bps 12 bps East Region Valuation Chan
Slide 25: Estimated Value Per Share Limitations
KBS-CMG.COM • a stockholder would be able to resell his or her shares at KBS REIT III’s estimated value per share; • a stockholder would ultimately realize distributions per share equal to KBS REIT III’s estimated value per share upon liquidation of KBS REIT III’s assets and settlement of its liabil
Slide 26: Stockholder Valuation Information (continued)
KBS-CMG.COM Stockholder Valuation Information (continued) • As discussed, KBS REIT III has refinanced or extended over $1.3 billion of maturing loans during the 12 months ending February 6, 2025. • As of February 28, 2025, KBS REIT III has approximately $390 million of debt maturing in the next 12 m
Slide 27: Liquidity Update
27 Legacy Town Center Plano, TX Section 04 Liquidity Update KBS-CMG.COM
Slide 28: Share Redemption Plan and Distributions
KBS-CMG.COM Share Redemption Plan and Distributions Prior to the most recent real estate downturn and credit crunch that occurred subsequent to the COVID-19 pandemic and the aggressive interest rate hiking cycle by the federal reserve, we consistently focused on providing liquidity to shareholders.
Slide 29: Future Strategy
29 Salt Lake Hardware Building Salt Lake City, UT Section 05 Future Strategy KBS-CMG.COM
Slide 30: Future Strategy
KBS-CMG.COM Future Strategy In the current market environment with real estate valuations at a significant discount to previous market values, a strategic transaction involving a portfolio that is nearly 100% office is very difficult if not impossible to achieve. Additionally, with debt and equity c
Slide 31: KBS REIT III 2025 Goals & Objectives
KBS-CMG.COM 31 KBS REIT III 2025 Goals & Objectives Deploy capital for value enhancing lease opportunities Efficiently manage the current real estate portfolio throughout the uncertain economic environment Finalize Carillon loan modification and manage required loan paydowns and other loan requireme
Slide 32: Investor Relations Contact
KBS-CMG.COM 32 Section 05 | Future Strategy Carillon Charlotte, NC For questions, please contact Investor/Advisor Relations toll free at: (866) 527-4264 32
KBS Real Estate Investment Trust III — Corporate Update (February 2025) on 6ix