Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — Investor Presentation (August 2024)
14 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Aug 28, 2024
Slide 1: Pacific Oak Strategic Opportunity REIT Market & Portfolio Updates
PAC I F I C O AK S T R AT E G I C O P P O R T U N I T Y R E I T M a r k e t & P o r t f o l i o U p d a t e s AUGUST 28, 2024 Exhibit 99.1
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS I M P O R T A N T D I S C L O S U R E S - The information contained herein should be read in conjunction with, and is qualified by, the information in the Pacific Oak Strategic Opportunity REIT, Inc. (“Pacific Oak Strategic Opportunity REIT” or the “Company”) Annual Repo
Slide 3: Market & Portfolio Updates
3 MARKET & PORTFOLIO UPDATES
Slide 4: Change in Commercial Property Values and Stock Market Indices
4 $10.63 Change in Commercial Property Values (Unlevered) Index ValueProperty Type From Recent Peak Past 12 months -20%-5%123.6All Property -23%-5%123.6Core Sector -22%-2%147.9Apartment -17%-10%210.0Industrial -14%5%84.3Mall -37%-9%71.2Office -16%-2%111.0Strip Retail -20%-9%120.6Healthcare -6%-3%106
Slide 5: Prime offices continue to outperform non-prime offices
5 Prime offices continue to outperform non-prime offices, a “flight to quality”. The next tiers down would be expected to benefit as tenant demand trickles-down.(1) Prime office vacancy rate was 14.8% in Q1 2024 (4.5 percentage points lower than non-prime) (1) Prime office had 49 million sq. ft.
Slide 6: Portfolio Summary
6 P O RT F O L I O S U M M A RY Occupancy/ Hotel RevPAR 9/30/195 Occupancy/ Hotel RevPAR 9/30/225 Occupancy/ Hotel RevPAR 9/30/235 % of Total4 December 2023 NAV Value1Investment Type 79.6%68.0%74.5%46.1%$1,110,560,000Office 94.9%93.6%94.2%32.8%$658,924,000Residential Homes & Apartments N/AN/AN/A17.9
Slide 7: 110 William Update
7 640,000 SF LEASE SIGNED FOR 20 YEAR TERM WITH AA CREDIT-RATED TENANT (JUNE 2023), DEBT & EQUITY RESTRUCTURED (JULY 2023) 110 W i l l i am Update Lease brings the building occupancy up to essentially 100%. Lease was the largest office lease signed, year-to-date, as of lease signing on June 27,
Slide 8: Park Highlands Land Sales
8 PARK HIGHLANDS LAND SALES
Slide 9: Park Highlands Land Sales Under Contract
9 Park H igh lands Land Sa les Under Cont rac t (1 ) The Company has all of the Park Highlands land under sales contract as of June 30, 2024. The sales are currently expected to close in October 2024, November 2024, and November 2025 and are expected to generate proceeds of $141.3 million after sell
Slide 10: Park Highlands Land Sales
10 Park H igh lands Land Sa les (1 ) The Company has all of the Park Highlands land under sales contract as of June 30, 2024. The sales are currently expected to close in October 2024, November 2024, and November 2025. (1) Of the approximately 517 developable acres, (i) approximately 122 developable
Slide 11: Opportunities & Goals
11 OPPORTUNITIES & GOALS
Slide 12: Consolidated offices have opportunity to grow occupancy and NOI
12 COMPANY’S CONSOLIDATED OFFICES HAVE THE OPPORTUNITY TO GROW OCCUPANCY & NET OPERATING INCOME (2) Consolidated offices represent 38.3% of the consolidated real estate value Consolidated offices have an occupancy of only 68.2% as of June 30, 2024 Company will continue to explore strategies to
Slide 13: Goals
13 GOALS (1) SELL PROPERTIES TO MANAGE THE COMPANY’S LIQUIDITY MAXIMIZE TOTAL RETURN ON THE PORTFOLIO 1 There is no guarantee that the Company’s objectives will be met. CONTINUE TO MONITOR MARKET CONDITIONS AND LOOK FOR MARKET IMPROVEMENTS WHICH COULD OFFER OPPORTUNITIES FOR THE COMPANY TO GENERATE
Slide 14: Thank You
14 PACIFIC OAK LOS ANGELES, CA PACIFIC OAK COSTA MESA, CA 3200 Park Center Drive, Suite 800 Costa Mesa, CA 92626 11766 Wilshire Blvd., Suite 1670 Los Angeles, CA 90025 1-866-PAC-OAK7 INFO@PACIFICOAKCAPITAL.COM PacificOakCapitalMarkets.com // PacificOakCapitalAdvisors.com THANK YOU!
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