KBS Real Estate Investment Trust III

CASH DISTRIBUTION HISTORY*

*KBS REIT III has paid distribution on a monthly basis, since July 2011. Distributions to date have been calculated based on stockholders of record each day during the period at a daily rate of $0.00178082 per share per day and equal a daily amount that, if paid each day for a 365-day period, would equal a 6.5% annualized rate based on the initial primary offering purchase price of $10.00 per share in the REIT’s now-terminated primary initial public offering or a 5.54% annualized rate based on the most recent estimated value per share of $11.73. There is no assurance that KBS REIT III will declare and pay distributions at this rate and KBS REIT III may modify the rate at its discretion. Distributions paid through September 30, 2018, consisting of 49% paid in cash and 51% reinvested through the dividend reinvestment plan, have been funded with 92% coming from cash flows from operations and 8% from debt financing. For more information, please refer to KBS REIT III’s public filing. Because a portion of the distributions paid to date were paid with borrowings, distributions and the distribution rates referenced above may not be sustainable.

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.

**As of November 5, 2018, distributions for November 2018 and December 2018 have been declared and the REIT expects to pay them on or about the first business day of the following month.