KBS Real Estate Investment Trust III

CASH DISTRIBUTION HISTORY*

SPECIAL DIVIDEND**

*Distributions paid through June 2023, excluding stock distributions issued in the Special Dividend, consisted of 55% paid in cash and 45% reinvested through the dividend reinvestment plan. KBS REIT III funded total distributions paid, which includes net cash distributions and dividends reinvested by stockholders, but excludes stock distributions issued in the Special Dividend, with 84% of cash flow from operating activities, 8% from debt financing and 8% with proceeds from asset sales. In addition, in connection with the December 12, 2019, Special Dividend payment, which was paid 35% in cash and 65% in stock, KBS REIT III issued $90.0 million in shares of common stock. For more information, please refer to KBS REIT III’s public filing.

KBS REIT III has not declared any distributions since June 2023. Due to certain restrictions and covenants included in KBS REIT III’s loan agreements as a result of refinancing certain of its debt facilities, KBS REIT III does not expect to pay any dividends or distributions until certain loans are repaid or refinanced. One of the loans with these restrictions has a current maturity of January 2027 but may be extended subject to the terms and conditions of the loan agreement. KBS REIT III is unable to predict when or if it will be in a position to pay distributions to its stockholders. On March 15, 2024, KBS REIT III terminated its dividend reinvestment plan.

KBS REIT III’s charter permits it to pay distributions from any source, including offering proceeds or borrowings (which may constitute a return of capital), and does not limit the amount of funds it may use from any source to pay such distributions. If KBS REIT III pays distributions from sources other than cash flows from operating activities, it will have less funds available to make real estate investments and the overall return to its stockholders may be reduced.

**On October 23, 2019, the board of directors of KBS REIT III authorized a Special Dividend in the amount of $0.80 per share of common stock payable in either shares of KBS REIT III’s common stock or cash to, and at the election of, the stockholders of record as of the close of business on November 4, 2019. If stockholders elected all cash, their election was subject to adjustment such that the aggregate amount of cash distributed by KBS REIT III was a maximum of 35% of the total Special Dividend, with the remainder paid in shares of common stock. The Special Dividend was paid on December 12, 2019, to stockholders of record as of the close of business November 4, 2019. KBS REIT III paid $48.5 million (35%) in cash and issued $90.0 million (65%) in stock pursuant to the Special Dividend.