KBS Real Estate Investment Trust III, Inc.

Town CenterPlano, TX · 03/27/2012 · Office · 522,043 · 147,694 · 11,688 · 28.52 · 5.2 · 5.3 · 78.5

Gateway Tech CenterSalt Lake City, UT (4) · 05/09/2012 · Office · 210,938 · 37,935 · 5,575 · 33.22 · 4.8 · 1.4 · 79.6

60 South Sixth Minneapolis, MN · 01/31/2013 · Office · 710,332 · 88,241 · 10,192 · 19.43 · 6.3 · 5.6 · 73.8

Accenture TowerChicago, IL · 12/16/2013 · Office · 1,457,724 · 580,977 · 36,952 · 28.59 · 6.7 · 23.9 · 88.7

Ten AlmadenSan Jose, CA · 12/05/2014 · Office · 309,255 · 131,720 · 7,542 · 49.21 · 1.9 · 5.2 · 49.6

Towers at EmeryvilleEmeryville, CA · 12/23/2014 · Office · 593,484 · 128,576 · 16,237 · 51.89 · 3.2 · 8.1 · 52.7

3003 Washington BoulevardArlington, VA · 12/30/2014 · Office · 211,054 · 154,908 · 11,137 · 61.31 · 8.2 · 6.5 · 86.1

201 17th StreetAtlanta, GA · 06/23/2015 · Office · 355,870 · 105,854 · 9,733 · 31.16 · 4.8 · 4.1 · 87.8

515 CongressAustin, TX · 08/31/2015 · Office · 267,956 · 139,164 · 8,534 · 40.32 · 4.1 · 6.0 · 79.0

The AlmadenSan Jose, CA · 09/23/2015 · Office · 416,126 · 103,357 · 16,799 · 56.28 · 2.8 · 6.5 · 71.7

3001 Washington BoulevardArlington, VA · 11/06/2015 · Office · 94,836 · 61,048 · 4,952 · 54.67 · 7.4 · 2.7 · 95.5

CarillonCharlotte, NC · 01/15/2016 · Office · 488,277 · 181,992 · 13,768 · 35.03 · 4.5 · 8.1 · 80.5

5,637,895 · 1,861,466 · 153,109 · 35.21 · 5.3 · 77.1

(1) Total real estate at cost represents the total cost of real estate net of impairment charges and write-offs of fully depreciated/amortized assets.

(2) Annualized base rent represents annualized contractual base rental income as of December 31, 2025, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

(3) Average annualized base rent per square foot is calculated as the annualized base rent divided by the leased square feet.

(4) Subsequent to December 31, 2025, we entered into a purchase and sale agreement with a purchaser unaffiliated with us or our advisor for the sale of Gateway Tech Center. There can be no certainty that we will complete the sale of Gateway Tech Center.

Portfolio Lease Expirations

The following table sets forth a schedule of expiring leases for our real estate portfolio by square footage and by annualized base rent as of December 31, 2025:

Year of Expiration · Number of Leases Expiring · Annualized Base Rent Expiring (1)(in thousands) · % of Portfolio Annualized Base Rent Expiring · Leased Square Feet Expiring · % of Portfolio Leased Square Feet Expiring

Month to Month · 11 · 1,893 · 1.2 · 124,449 · 2.9

2026 · 57 · 15,750 · 10.3 · 445,813 · 10.2

2027 · 68 · 22,119 · 14.5 · 642,526 · 14.8

2028 · 68 · 15,211 · 9.9 · 406,760 · 9.3

2029 · 48 · 20,785 · 13.6 · 507,318 · 11.7

2030 · 36 · 14,886 · 9.7 · 387,067 · 8.9

2031 · 16 · 7,404 · 4.8 · 207,311 · 4.8

2032 · 15 · 8,429 · 5.5 · 232,980 · 5.4

2033 · 12 · 7,410 · 4.8 · 260,841 · 6.0

2034 · 10 · 14,967 · 9.8 · 294,540 · 6.8

2035 · 13 · 8,398 · 5.5 · 331,030 · 7.6

Thereafter · 8 · 15,857 · 10.4 · 508,062 · 11.6

Total · 362 · 153,109 · 100.0 · 4,348,697 · 100.0

(1) Annualized base rent represents annualized contractual base rental income as of December 31, 2025, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

As of December 31, 2025, our portfolio’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows:

Industry · Number of Tenants · Annualized Base Rent (1)(in thousands) · Percentage of Annualized Base Rent

Legal Services · 45 · 23,797 · 15.5

Finance · 54 · 21,997 · 14.4

Management Consulting Services · 12 · 19,084 · 12.5

64,878 · 42.4

(1) Annualized base rent represents annualized contractual base rental income as of December 31, 2025, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

As of December 31, 2025, no other tenant industries accounted for more than 10% of annualized base rent and no tenant accounted for more than 10% of the annualized base rent.

For more information about our real estate portfolio, see Part I, Item 1, “Business.”

• We assume the risk that our derivative counterparty may terminate transactions early.
• We may be required to collateralize our derivative transactions.
• Our investments in derivatives are carried at estimated fair value as determined by us and, as a result, there may be uncertainty as to the value of these instruments.
• Risks Related to an Investment in Our Common Stock
• The risks in this section should be read together with the risks discussed above under “—Risks Associated with Debt Financing and Going Concern Considerations.”
• There is no public trading market for the shares of our common stock and we do not anticipate that there will be a public trading market for our shares; therefore, it will be difficult for our stockholders to sell their shares and, if they are able to sell their shares, they will likely sell them at a substantial discount to the public offering price and the estimated value per share. Stockholders may have to hold their shares an indefinite period of time.
• We face significant competition for tenants and in the disposition of real estate, which may limit our ability to achieve our business objectives and may cause our financial condition and results of operations to suffer.
• Elevated market volatility due to adverse economic and geopolitical conditions has had and may continue to have a material adverse effect on our results of operations and financial condition.
• Elevated interest rates and persistent inflation have had and may continue to have an adverse effect on our financial condition and results of operations.
• Uncertainty about U.S. federal initiatives could negatively impact our business, financial condition and results of operations.
• Adverse developments affecting the financial services industry may adversely affect our business, financial condition and results of operations.
• Because of the concentration of a significant portion of our assets in three geographic areas and in core office properties, any adverse economic, real estate or business conditions in these geographic areas or in the U.S. office market could affect our operating results.
• A significant percentage of our assets is invested in Accenture Tower and the value of our stockholders’ investment in us will fluctuate with the performance of this investment.
• Because we depend upon our advisor and its affiliates to manage and dispose of our real estate investments and to conduct our operations, any adverse changes in the financial health of our advisor or its affiliates or our relationship with them could cause our operations to suffer.
• We are unable to predict when or if we will be in a position to pay distributions to our stockholders.
• The loss of or the inability to retain or obtain key real estate and debt finance professionals at our advisor could delay or hinder implementation of our management and disposition strategies, which could cause our financial condition and results of operations to suffer.
• Our rights and the rights of our stockholders to recover claims against our independent directors are limited, which could reduce our stockholders’ and our recovery against our independent directors if they negligently cause us to incur losses.
• We face risks associated with security breaches through cyber-attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems.
• We are subject to risks associated with artificial intelligence and machine learning technology.
• Risks Related to Conflicts of Interest
• Our advisor and its affiliates, including all of our executive officers, our affiliated directors and other key real estate and debt finance professionals, face conflicts of interest caused by their compensation arrangements with us and with other KBS-sponsored programs, which could result in actions that are not in the long-term best interests of our stakeholders.
• Our advisor and its affiliates face conflicts of interest relating to the leasing of properties and the disposition of properties due to their relationship with other KBS-sponsored programs and/or KBS-advised investors, which could result in decisions that are not in our best interest or the best interests of our stakeholders.
• Our sponsor, our officers, our advisor and the real estate, debt finance, management and accounting professionals assembled by our advisor face competing demands on their time and this may cause our operations and financial condition to suffer.
• All of our executive officers, our affiliated directors and the key real estate and debt finance professionals assembled by our advisor face conflicts of interest related to their positions and/or interests in our advisor and its affiliates, which could hinder our ability to implement our business strategy and to generate returns to our stockholders.
• Risks Related to Our Corporate Structure
• Our charter limits the number of shares a person may own and permits our board of directors to issue stock with terms that may subordinate the rights of our common stockholders or discourage a third party from acquiring us in a manner that could result in a premium price to our stockholders.
• Our stockholders will have limited control over changes in our policies and operations, which increases the uncertainty and risks our stockholders face.
• We are unable to predict when or if we will be in a position to redeem shares of our common stock.
• Our bylaws designate the Circuit Court for Baltimore City, Maryland, or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
• The estimated value per share of our common stock (i) may not reflect the value that stockholders will receive for their investment, (ii) does not take into account how developments subsequent to the valuation date related to individual assets, the financial or real estate markets or other events may have decreased the value of our portfolio and (iii) does not include the impact of future costs related to the disposition of assets and our liquidation.
• Our stockholders’ interest in us will be diluted if we issue additional equity interests, which could reduce the overall value of their investment.
• Payment of fees to our advisor and its affiliates reduces cash available for our operations.
• If we are unable to obtain funding for future capital needs, our financial condition and results of operations may suffer.
• Although we are not currently afforded the protection of the Maryland General Corporation Law relating to deterring or defending hostile takeovers, our board of directors could opt into these provisions of Maryland law in the future, which may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.
• Our charter includes an anti-takeover provision that may discourage a stockholder from launching a tender offer for our shares.
• If we are required to register as an investment company under the Investment Company Act, our financial condition and results of operations would suffer.
• General Risks Related to Investments in Real Estate
• Economic, market and regulatory changes that impact the real estate market generally may decrease the value of our investments and weaken our operating results.
• If our acquisitions do not perform as expected, our financial condition and results of operations would suffer.
• Properties that have significant vacancies could result in lower revenues for us and be difficult to sell, which could diminish the return on these properties, impact our ability to access certain credit facilities and meet our outstanding debt obligations and cause our operations to suffer.
• We have entered into long-term leases with tenants at certain of our office properties and in the future we may enter into long-term leases when renewing or releasing space, which may not result in fair market rental rates over time.
• We may be adversely affected by trends in the office real estate market.
• We depend on tenants for our revenue generated by our real estate investments and, accordingly, our revenue generated by our real estate investments is partially dependent upon the success and economic viability of our tenants and our ability to retain and attract tenants. Non-renewals, terminations or lease defaults could reduce our net income and cause our financial condition to suffer.
• The bankruptcy or insolvency of our tenants or delays by our tenants in making rental payments could seriously harm our operating results and financial condition.
• Our inability to sell a property at the time and on the terms we want could cause our results of operations and financial condition to suffer.
• If we sell a property by providing financing to the purchaser, we will bear the risk of default by the purchaser, which could delay or reduce net cash available from the disposition.
• Construction delays and resultant increased costs and risks may hinder our operating results and decrease our net income.
• Actions of our joint venture partners could reduce the returns on joint venture investments.
• Costs imposed pursuant to laws and governmental regulations may reduce our net income and adversely impact our results of operations.
• The costs of defending against claims of environmental liability, of complying with environmental regulatory requirements, of remediating any contaminated property or of paying personal injury or other damage claims could reduce our net income and adversely impact our results of operations.
• Costs associated with complying with the Americans with Disabilities Act may reduce our net income and adversely impact our results of operations.
• Uninsured losses relating to real property or excessively expensive premiums for insurance coverage could reduce our cash flow from operations and adversely impact our results of operations.
• We rely on property managers to operate our properties and leasing agents to lease vacancies in our properties.
• Risks Related to Real Estate-Related Investments
• Our investment in common equity securities is subject to specific risks relating to the issuer of the securities and may involve greater risk of loss than secured debt financings.
• Federal Income Tax Risks
• Failure to qualify as a REIT would subject us to U.S. federal income tax, which would reduce our net cash flows and our net earnings.
• Our stockholders may have tax liability on distributions they elected to reinvest in our common stock.
• Even if we qualify as a REIT for U.S. federal income tax purposes, we may be subject to federal, state, local or other tax liabilities that reduce our cash flow.
• REIT distribution requirements could adversely affect our ability to execute our business plan, including our ability to satisfy the terms and conditions of our existing loan agreements or any future extension or refinancing agreements entered into.
• To maintain our REIT status, we may be forced to forego otherwise attractive business opportunities, which may hinder our ability to operate solely on the basis of maximizing profits and reduce the value of our stockholders’ investment.
• If our operating partnership fails to maintain its status as a partnership for U.S. federal income tax purposes, its income would be subject to taxation and our REIT status could be terminated.
• Potential characterization of distributions or gain on sale may be treated as unrelated business taxable income to tax-exempt investors.
• The tax on prohibited transactions will limit our ability to engage in transactions that would be treated as sales for U.S. federal income tax purposes.
• Complying with REIT requirements may force us to liquidate otherwise attractive investments.
• Liquidation of assets may jeopardize our REIT qualification.
• Complying with REIT requirements may limit our ability to hedge effectively.
• Our ownership of and relationship with our taxable REIT subsidiaries will be limited and a failure to comply with the limits would jeopardize our REIT status and may result in the application of a 100% excise tax.