Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — Corporate Update (December 2021)
33 slides from Pacific Oak Strategic Opportunity Reit's corporate update, Dec 8, 2021
Slide 1: Valuation and Portfolio Update
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 Va l u a t i o n a n d P o r t f o l i o U p d a t e DECEMBER 8, 2021 Exhibit 99.4
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: Valuation
3 VALUATION1 • Estimated value per share calculated using information as of September 30, 2021. • The Company followed the Institute for Portfolio Alternatives Valuation Guidelines, which included third-party valuations for all of its consolidated properties and properties owned via two of its uncon
Slide 4: Estimated value per share breakdown
4 1 Based on data as of September 30, 2021. For further information, see the Company’s Current Report on Form 8-K filed with the SEC on December 8, 2021. 2 Based on data as of September 30, 2020, with the exception of adjustments to give effect to the Merger which closed on October 5, 2020 and Merge
Slide 5: Change in estimated value per share
5 1 Based on data as of September 30, 2021. For further information, see the Company’s Current Report on Form 8-K filed with the SEC on December 8, 2021. 2 Includes the related change in minority interests in consolidated entities. 3 Operating cash flow reflects modified funds from operations (“MFFO
Slide 6: Estimated value per share notes
6 The Company is providing this estimated value per share to assist broker dealers that participated in its initial public offering in meeting their customer account statement reporting obligations. As with any valuation methodology, the methodologies used are based upon a number of estimates and as
Slide 7: Stockholder Performance
7 $0.44 $0.62 $0.98 $1.36 $1.73 $1.78 $1.81 $1.82 $1.82 $0.72 $1.47 $1.49 $1.49 $1.49 $2.89 $5.44 $5.83 $5.31 $5.86 $10.00 $11.27 $12.24 $13.44 $14.81 $11.50 $9.91 $10.63 $9.68 $10.68 $10.00 $11.71 $12.86 $14.42 $16.17 $16.84 $18.60 $19.76 $18.30 $19.85 Offering Price Mar-14 Dec-14 Dec-15 Dec-16 Dec
Slide 8: Stockholder Performance Illustration
8 STOCKHOLDER PERFORMANCE ILLUSTRATION Since special dividends were declared on December 7, 2017 and November 12, 2018, a comparison of the estimated value per share over time is no longer a fair reflection of stockholder performance. The following illustration shows the performance of the first cas
Slide 9: Portfolio Overview & Highlights
9 PORTFOLIO OVERVIEW & HIGHLIGHTS
Slide 10: Portfolio Overview
10 P O RT F O L I O O V E RV I EW Investment Type Dec. 2021 NAV Value1 % of Total6 Occupancy/ Hotel RevPAR 9/30/213 Occupancy/ Hotel RevPAR 9/30/193 Rent Collections Sept. 20217 Office $1,454,300,000 54.0% 72.4% 79.6% 95.8% Land $331,500,000 15.7% N/A N/A N/A SFR $257,851,000 11.1% 93.8% N/A 96.2% A
Slide 11: Properties: Offices
11 P R O P E RT I E S Property Name City, State Property Type/ No. of Buildings Date Acquired Size (SF) Occupancy % Ownership % CONSOLIDATED PROPERTIES: OFFICES Oakland City Center Oakland, CA Office 2 Buildings 10/5/2020 368,043 79.5% 100% The Marq Minneapolis, MN Office 1 Building 3/1/2018 522,656
Slide 12: Properties: Apartments, SFR, Hotels, Land
12 P R O P E RT I E S Property Name City, State Property Type/ No. of Buildings Date Acquired Size (SF) Occupancy % Ownership % CONSOLIDATED PROPERTIES: APARTMENTS & SINGLE-FAMILY RENTALS (SFR) 1180 Raymond Newark, NJ 317 Unit Apartment Building 8/20/2013 268,648 96.9% 100% Lofts at NoHo Commons (JV
Slide 13: Properties: Unconsolidated
13 P R O P E RT I E S Property Name City, State Property Type/ No. of Buildings Date Acquired Size (SF) Occupancy % Ownership % UNCONSOLIDATED PROPERTIES 353 Sacramento (JV) San Francisco, CA Office 1 Building 7/11/2016 284,751 86.9% 55% 110 William Street (JV) New York, NY Office 1 Building 5/2/201
Slide 14: Dispositions History
14 DISPOSIT IONS HISTORY (1) T H E C O M PAN Y H AS A T R AC K R E C O R D O F S T R O N G P E R F O R M AN C E O N D I S P O S I T I O N S T O D AT E , AS S E E N B E L O W : 1 Equals the sale price, net of seller concessions, without adjustment for joint venture partners’ share of share of consoli
Slide 15: Pacific Oak Residential Trust Summary & Highlights
15 PACIF IC OAK RESIDENT IAL T RUST (PORT ) 1 SUMMARY & H IGHLIGHT S 1,806 Single-Family Rental (SFR) home portfolio 6.50% cash-on-cash yield2 30.7% home value appreciation3 1. Pacific Oak Residential Trust is a consolidated subsidiary of the Company focused on single-family rental homes, of which t
Slide 16: PORT NOI by Market
16 NOI BY MARKET DIVERSIFIED ACROSS ATTRACTIVE MARKETS AL IL FL GA OK TN TX Other 30.4% 6.9% 13.2% 12.6% 2.5% 7.7% 12.1% 14.7% PACIF IC OAK RESIDENT IAL T RUST (PORT ) 1 SUMMARY & H IGHLIGHT S 1. Pacific Oak Residential Trust is a consolidated subsidiary of the Company focused on single-family renta
Slide 17: Pacific Oak Opportunity Zone Fund I Summary & Highlights
17 PACIF IC OAK OPPORT UNITY ZONE FUND I (1 ) SUMMARY & H IGHLIGHTS $150 million fund, with seed capital from the Company ($28.2 million) and Pacific Oak principals ($2.0 million). Underwriting is a top priority; deals must be investable even before considering the tax incentives from the 2017 Tax C
Slide 18: General Market Update
18 GENERAL MARKET UPDATE
Slide 19: Commercial Property Values and Stock Market
19 $10.63 Property Type Index Value Change in Commercial Property Values Past 12 months From Pre-COVID All Property 146.4 20% 8% Core Sector 150.1 21% 11% Apartment 183.3 28% 18% Industrial 234.0 39% 41% Mall 83.9 9% -13% Office 111.4 4% -6% Strip Retail 119.3 25% 6% Healthcare 145.9 10% 2% Lodging
Slide 20: U.S. Economy
20 U.S . ECONOMY U.S. GDP growth was 6.7% for 2021 Q2 and 2.0% preliminarily for 2021 Q3(1). The acceleration in growth in 2021 Q2, which resulted in overall output reaching 100% of its “normal” pre-COVID level according to the Jefferies’ U.S. Economic Activity Index on July 26, 2021(2), gave way to
Slide 21: Office Sector
21 OFFICE SECTOR The Company collected 95.8% of September 2021 rent charges. An insignificant number of office tenants have requested rent relief or deferral, and the Company has carefully managed the requests on a case-by-case basis, granting deferrals to only a small number of tenants to date. The
Slide 22: Single-Family Rental Sector
22 SINGLE-FAMILY RENTAL (SFR) SECTOR The Company collected 96.2% of September 2021 rent charges. SFR sector continues to perform strongly, with the drivers of fundamentals matching the trends in demographics, economics, and migration that emerged from the pandemic and lifestyle change.(1) SFR sector
Slide 23: Apartment Sector
23 APART MENT SECTOR The Company collected 89.5% of September 2021 rent charges. The Company’s collections and performance during the pandemic has had some challenges, as has the entire apartment sector, due to job losses, income declines, and eviction moratoriums imposed by the national and local g
Slide 24: Hotel Sector
24 HOT EL SECTOR The Company had both of its hotels closed temporarily on March 31, 2020 due to the pandemic. Springmaid Beach Resort reopened on May 1, 2020 and Q&C Hotel reopened on Sept. 1, 2020. The Company’s hotel reopenings were encouraging, and the hotels ended up flourishing as pent-up trave
Slide 25: Residential Land
25 RESIDENT IAL LAND The Company is amongst the largest residential land owners in Las Vegas via its Park Highlands investment, owning approximately 800 acres as of Sept. 30, 2021. Park Highlands continues to generate exceptional returns, with the last year benefitting from (i) homebuilder demand, (
Slide 26: Value Add Opportunities Continue
26 VALUE ADD OPPORTUNITIES CONTINUE
Slide 27: Continued Price Increases Expected in Commercial Real Estate
27 CONTINUED PRICE INCREASES, IN NEARLY ALL COMMERCIAL REAL ESTATE SECTORS, ARE EXPECTED(1) Green Street Advisors recently issued a strong “buy now” as cap rates continue to decline.(1) Green Street Advisors says there is a perfect storm of incredibly low bond yields, high volumes of capital flo
Slide 28: Richardson Development: At Completion
AB vaciric OAK RICHARDSON DEVELOPMENT: AT COMPLETION N COLLINS BLVD KEY: 4 RESIDENTIAL - 5 STORIES. pote eer scien re cee a OFrice. 10sTORIES Ss ‘11. EXISTING OFFICE - 16 STORIES 2 PALISADES BLVD | 12. OFFICE - 3 STORIES OVER RETAIL 13. OFFICE - 4 STORIES OVER RETAIL i 14, RESTAURANT PAD SITE 2 15.
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Slide 31: Park Highlands Residential Development (Las Vegas, NV)
aS PARK HIGHLANDS RESIDENTIAL DEVELOPMENT (LAS VEGAS, NV) 31
Slide 32: 2022 Goals & Objectives
32 2022 GOALS & OBJECT IVES FINALIZE PLAN FOR SHAREHOLDER LIQUIDITY, WITH GOALS OF… Providing liquidity for the shareholders who want it Providing an investment vehicle for shareholders who want to remain invested in the Company with its strong historical performance, a large existing portfolio,
Slide 33: Thank You
33 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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