Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — KBS Strategic Opportunity REIT — Investor Presentation (March 2014)
20 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Mar 27, 2014
Slide 1: Valuation and Portfolio Update
KBS Strategic Opportunity REIT Valuation and Portfolio Update March 27, 2014 1 Exhibit 99.3
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information contained herein should be read in conjunction with, and is qualified by, the information in the KBS Strategic Opportunity REIT, Inc. (“KBS Strategic Opportunity REIT”) Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securiti
Slide 3: Portfolio Overview
Total Acquistions1: $949,123,000 18 Equity Assets 8 Debt Assets Total Current Portfolio2: $884,819,000 22 Equity Assets 1 Debt Asset Current Rentable Sq. Ft.3: 4,906,095 Leverage4: 36% 1 Represents acquisition price (excluding closing costs) of real estate and loans acquired since inception, includi
Slide 4: Estimated value per share methodology
Estimated value per share2 calculated using information as of December 31, 2013 • Net asset value; no enterprise (portfolio) premium or discount applied • Considered potential participation fee that would be due to the advisor in a hypothetical liquidation if the required shareholder return thresh
Slide 5: Valuation
Real Estate and Real Estate-Related Investments $ 16.81 Cash 0.97 Other Assets 0.27 Mortgage Debt (4.34) Other Liabilities & Adjustments (0.47) Less: Non-Controlling Interest (1.82) Total Stockholders’ Equity $ 11.42 Adjustment for 2014 Acquisition-Related Costs (0.15) Updated Estimated Value Per Sh
Slide 6: Valuation
Valuation 6 Prior to March 25, 2014, the Company valued its shares at $10.00 per share based solely on the offering price in the primary portion of its initial public offering. This is the price that most investors purchased shares in the Company’s primary initial public offering. Some shares were s
Slide 7: Valuation: Estimated Value Per Share
Valuation1 7 Estimated Value Per Share Offering price2 $10.00 Share price discount on sales, DRIP, net of redemptions (0.10) Offering proceeds, net of discounts 9.90 Offering costs3 (1.01) Net offering proceeds 8.89 Changes due to operating activities and distributions: Change in value due to distri
Slide 8: Valuation footnotes
Valuation 8 2Offering price presented is calculated based on the number of shares issued and outstanding as of December 31, 2013 and the initial offering price per share of $10.00, which reflects the price at which most investors purchased shares in the Company’s primary offering. Through December 3
Slide 9: Portfolio Overview
Portfolio Overview 9 1 Cost basis equals acquisition price (net of closing credits and excluding closing costs) plus capital expenditures as of December 31, 2013 for investments made and still in the portfolio as of that date, and actual or expected acquisition prices for acquisitions subsequent to
Slide 10: Portfolio Overview
Portfolio Overview 10 1 Includes real estate and loans in portfolio as of December 31, 2013, including KBS Strategic Opportunity REIT’s share of consolidated and unconsolidated joint ventures. Investments in real estate acquired through consolidated joint ventures are presented net of non-controllin
Slide 11: Portfolio Overview
Portfolio Overview 11 1 Includes real estate and loans in portfolio as of December 31, 2013, including KBS Strategic Opportunity REIT’s share of consolidated and unconsolidated joint ventures. 2 Equity equals asset value less debt fair value. Debt fair value is as of December 31, 2013. Does not refl
Slide 12: Portfolio Overview
Portfolio Overview 12 1 Equity equals asset value less debt fair value. Debt fair value is as of December 31, 2013. Does not reflect debt financing incurred after December 31, 2013. Investments in real estate acquired through consolidated joint ventures are presented net of non-controlling interest.
Slide 13: Distribution History
Distribution History1 1Based on all distributions declared but not necessarily paid as March 27, 2014 13 Record Date Payment Date Amount/Share Reason 12/23/2011 12/28/2011 $0.30 Estimated increase in portfolio value, as supported by completed broker opinions of value (BOVs) 2/14/2012 2/17/2012 $0.02
Slide 14: (1) Does not reflect the hypothetical performance of investment by stockholders that participated in
(1) Does not reflect the hypothetical performance of investment by stockholders that participated in the dividend reinvestment plan. (2) KBS Strategic Opportunity REIT is providing this estimated value per share to assist broker dealers that participated in its initial public offering in meeting the
Slide 15: The Plaza Buildings Acquisition Update
Located in Bellevue, WA • Acquired on January 14, 2014 • $184.0 million purchase price • 490,096 total rentable square feet • 16-story building, 10-story building and a 6-level parking structure • Floor Air Ratio (FAR) allows for entitlements for future development • 81% occupied at acquisition The
Slide 16: 424 Bedford Acquisition Update
Condo/apartment building located in Brooklyn, NY • Acquired on January 31, 2014 • Built in 2010 • $39.75 million purchase price • 66 units (49,220 Sq. Ft.) • $808 per square foot • 21 floors • 97% occupied at acquisition • 90% ownership interest through joint venture 424 Bedford Acquisition Update 1
Slide 17: Dividend Reinvestment Plan
DRIP Purchases Beginning on the next purchase date1, DRIP shares will be acquired at $10.71, a 5% discount to the $11.27 estimated value per share. A discount of 5% to estimated value per share is consistent with previous pricing. 1 The next purchase date will be on April 15, 2014. Dividend Rein
Slide 18: Redemptions
• Share Redemption Program¹ rules apply the same price percentages (ranging from 92.5% to 100.0%) to the most recent estimated value per share. 1 KBS Strategic Opportunity REIT’s share redemption program includes numerous restrictions that limit its stockholders’ ability to sell their shares to the
Slide 19: Shareholder Communication
Statements will reflect new estimated value per share of $11.27 beginning with March 2014 statements. Shareholder letter will be included with March statements mailed in early April. Online prices visible through DST will be updated to show new estimated value per share. Expected next NAV da
Slide 20: Thank you!
Thank you! If you have any questions, please contact your financial advisor or contact us at: KBS Capital Markets Group Member FINRA & SIPC 660 Newport Center Dr., Suite 1200 Newport Beach, CA 92660 (866) 527-4264 20
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