Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — Corporate Update (October 2018)
21 slides from Creative Media's corporate update, Oct 5, 2018
Slide 1: Important Disclosures
Important Disclosures
Slide 2: Post-Potential Recapitalization Summary
Post-Potential Recapitalization Summary CMCT would remain principally focused on Class A and creative office assets and also may participate more actively in other CIM Group urban real estate strategies and product types in order to broaden CMCT’s participation in CIM Group’s $29.1 billion1 platform
Slide 3: Potential Recap Plan Unlocks Value, Positions CMCT for Growth
Potential Recap Plan Unlocks Value, Positions CMCT for Growth Unlock Embedded Value Through Targeted Asset Sales Monetize stabilized assets in Oakland, San Francisco and Washington DC to unlock embedded value that has been created since 2005 (10 assets totaling 2.7 million square feet) Use net proce
Slide 4: Potential Recap Plan Unlocks Value, Positions CMCT for Growth [Cont'd]
Potential Recap Plan Unlocks Value, Positions CMCT for Growth [Cont’d] Improve Trading Liquidity CIM Group has expressed an intent to dissolve CIM REIT1 (which holds ~95% of CMCT’s outstanding Common Stock2) concurrently with the potential recapitalization of CMCT and distribute any shares of CMCT C
Slide 5: Anticipated Benefits for Preferred Stockholders
Anticipated Benefits for Preferred Stockholders Immediately following the potential recapitalization, preferred stockholders would move to a more senior position as a result of the repayment of all mortgages and senior unsecured corporate debt (using proceeds from asset sales)1 Debt-to-total capital
Slide 6: Performance Since Launch of CMCT
Performance Since Launch of CMCT 7 Return based on cumulative regular and special dividends on publicly held shares since March 31, 2014, divided by initial net asset value (“NAV”), from March 31, 2014 to June 30, 2018. See “Important Disclosures” starting on page 19, and, in particular, “Net Asset
Slide 7: Performance Since Launch of CMCT [Cont'd]
Performance Since Launch of CMCT [Cont’d] 8 Total return includes changes in stock price or net asset value (“NAV”) per share, as applicable, and includes all dividends declared and paid with respect to the Company’s publicly held Common Stock from March 31, 2014 to June 30, 2018. See “Important Dis
Slide 8: Post-Potential Recap: Attractive, Flexible Capital Structure
Post-Potential Recap: Attractive, Flexible Capital Structure 9 Prudent and Flexible Capital Structure Target Capital Structure Pro Forma Capital Structure (at fair value)1 As of June 30, 2018. Debt is taken at face value and excludes secured borrowings, SBA 7(a) loan-backed notes, deferred financing
Slide 9: Post-Potential Recap: Growth Focused in Gateway Markets
Post-Potential Recap: Growth Focused in Gateway Markets Targeting same-store NOI CAGR of 4% - 6% through 20231 Excludes potential development opportunities in Oakland, Austin, Washington DC and Sacramento as well as accretive acquisitions with incremental funding from sales of common stock and prefe
Slide 10: Post-Potential Recap: Growth Focused in Gateway Markets
Post-Potential Recap: Growth Focused in Gateway Markets 11 Represents gross monthly base rent, as of June 30, 2018, multiplied by twelve. The amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base r
Slide 11: Broaden CMCT's Participation in CIM's Platform
Broaden CMCT’s Participation in CIM’s Platform 12 Urban Real Assets Infrastructure & Real Estate Stabilized Equity Opportunistic Equity Debt Value-add Equity CIM Commercial Trust Publicly Listed REIT NASDAQ: CMCT TASE: CMCT Predecessor formed in 2005 Net-lease Debt National Credit Real Estate Commun
Slide 12: Broaden CMCT's Participation in CIM's Platform
Broaden CMCT’s Participation in CIM’s Platform Established Established in 1994 as an integrated owner and operator of real assets Strategies Community-focused urban real assets (real estate and infrastructure) in communities qualified by CIM and national credit (net-lease and debt) platforms Vertica
Slide 13: Broaden CMCT's Participation in CIM's Platform
Broaden CMCT’s Participation in CIM’s Platform CMCT CIM is a community-focused real estate and infrastructure owner, operator and lender. By utilizing their in-house expertise, we create value in our assets, which benefit our investors, and ultimately benefit the ‘community. Established Established
Slide 14: Recent CMCT Transactions
Recent CMCT Transactions 15 The examples below have been selected to generally illustrate CIM’s philosophy and may not be representative of future acquisitions. 1130 Howard Street 9460 Wilshire Boulevard Location Acquisition Date SoMa District of San Francisco, CA December 2017 Location Acquisition
Slide 15: Series L Preferred Shareholders' Exchange Offer
Series L Preferred Shareholders’ Exchange Offer Following the potential return of capital event(s) and the contemplated reinvestment by certain CMCT directors and officers, Series L stockholders would have the following options1: 1 – Continue holding Series L shares Target capital structure designed
Slide 16: Assets Targeted For Sale
Assets Targeted For Sale 17 Represents gross monthly base rent, as of June 30, 2018, multiplied by twelve. The amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base rent. Annualized rent for certai
Slide 17: Estimated Net Asset Value & NOI Forecast Reconciliation
Estimated Net Asset Value & NOI Forecast Reconciliation 18 As of June 30, 2018. See “Net Asset Value” under “Important Disclosures” on page 19.“ Excludes secured borrowings on government guaranteed loans, which are included with cash and other assets net of other liabilities. Represents transaction
Slide 18: Important Disclosures
Important Disclosures 19 Assets Owned and Operated Assets Owned and Operated (AOO) represents the aggregate assets owned and operated by CIM on behalf of partners (including where CIM contributes alongside for its own account) and co-investors, whether or not CIM has discretion, in each case without
Slide 19: Important Disclosures
Important Disclosures 20 CMCT Pro Forma Capital Structure and CMCT Pro Forma Portfolio The following assumptions were used: Targeted Sales of Properties. CMCT is actively exploring the potential sale (the “Potential Sale”) of a portfolio of properties, including five office properties and a parking
Slide 20: Important Disclosures
Important Disclosures 21 Sale of Common Stock. Certain directors and officers of CMCT have informed CMCT that they intend to reinvest their pro rata share of all net proceeds received by CIM Group and its affiliated entities in connection with the Potential Return of Capital Event into newly issued
Slide 21: Important Disclosures
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