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KBS Real Estate Investment Trust III, Inc. (the Company ) is a Maryland corporation that has elected to be taxed as a real estate investment trust ( REIT ) and it intends to continue to operate in such a manner. As used herein, the terms we, our and us refer to the Company and as required by context, KBS Limited Partnership III, a Delaware limited partnership, which we refer to as our Operating…
The business is unprofitable at the operating level (-65.17% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 10.0% YoY. Margins deteriorated 25.4pp alongside, both lines moving the wrong way.
ROIC dropped from -4.71% to -8.15%, capital efficiency is deteriorating. Negative free cash flow of -$31M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$244M
▼ -10.0% YoY
Net Income (TTM)
-$58M
▼ -625.8% YoY
Op. Margin
-66.97%
▼ -25.4pp YoY
ROIC
-8.61%
▼ -3.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$9M
▼ -15.0% YoY
Op. Cash Flow (TTM)
$16M
▼ -179.4% YoY
Net Debt
$1.19B
Cash & Equiv.
$43M
5Y CAGR: -4.0%
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