Facing $1.7B in loan maturities in the next 12 months as valuations of its office assets plunge, KBS Real Estate Investment Trust III has warned shareholders there is "substantial doubt" it can stay in business.
According to a regulatory filing, the Newport Beach, CA-based fund reported last month that the net asset value of its portfolio, estimated at $1.3B in September 2022, has fallen to about $833M as of last month, a drop of more than $430M.
"Considering the current commercial real estate lending environment, this raises substantial doubt as to KBS REIT III's ability to continue as a going concern," the shareholders were told.
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