Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — Debt Investor Presentation (June 2023)
34 slides from Pacific Oak Strategic Opportunity Reit's debt investor presentation, Jun 1, 2023
Slide 1: Capital Market Presentation Update Based on Q1-2023 Reports
P A C I F I C O A K S O R ( B V I ) H o l d i n g s L T D Capital Market Presentation Update Based on Q1-2023 Reports -May 2023- Office Multifamily Single Family Rentals Hotel Lands Exhibit 99.3This English translation is for convenience purposes only. This is not an official translation and is not
Slide 2: Disclaimer
2 Disclaimer This presentation does not constitute an offer of securities by Pacific Oaks SOR (BVI) Holdings Ltd (hereinafter: the "Company") to the public and should not be construed as an offer of securities to the public. This presentation is a principled and marketing presentation of the company
Slide 3: About Pacific Oak
3 About Pacific Oak Multifamily: 1180 Raymond Boulevard, Newark, NJ Pacific Oak Group was established by Keith Hall and Peter McMillan III. Its professional advisory company, Pacific Oak Capital Advisors, serves as advisor to Pacific Oak SOR (BVI) Holdings LTD (“the Company”), advisor to the Company
Slide 4: The Group Regulatory Compliance
4 The Group Regulatory Compliance (1) U.S. financial industry’s self-regulatory organization that regulates the activities of brokerage firms and stockbrokers. It is responsible for overseeing and enforcing compliance with U.S. securities laws and regulations, as well as promoting transparency and f
Slide 5: Financial Profile, as of March 31, 2023
5 Financial Profile, as of March 31, 2023 Shareholder Equity $897M Total Liquidity(1) $215M Investment Properties(2) $1,655M Company Share in the Value of JV’s $138M Bond Collateral(3) Net Debt to Net Cap 55.1% Bond Coverage(3): 3.73x Annualized NOI for Consolidated Investments(4): $68M Interest Cov
Slide 6: Bond Coverage, as of March 31, 2023
6 Bond Coverage(1), as of March 31, 2023 Bond Collateral March 2023 Value ($000’s)(2) % of Total Cash & Cash Equivalents $ 122,673 10.2% Restricted Cash(3) 44,628 3.7% Equity Securities 48,120 4.0% Subtotal – Liquidity $ 215,421 17.9% Equity Value in Office(2) 353,716 29.3% Equity Value in Residenti
Slide 7: Financial Performance
7 Financial Performance(1) 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2018 2019 2020 2021 2022 2023-Q1 Shareholders Equity in $ Millions (1) Reflects the acquisition of Pacific Oak Strategic Opportunity REIT II, Inc. beginning with the merger date of October 5, 2020. 30.00% 40.00% 50.00%
Slide 8: Portfolio Strategic Shift, to SFR & Apartments
8 Portfolio Strategic Shift, to SFR & Apartments(1) (1) Figures reflect the Company’s equity values, calculated as property estimated fair value less secured debt principal and net of minority interests in consolidated and unconsolidated joint ventures. As of Sep. 30th, 2015 (the financial figures p
Slide 9: Company's Disposition History
C o m pa ny ’s D is po si tio n H is to ry 9 The Company’s strategies have been validated by its strong track record of realized value growth. The Company’s property sales have generated $374 million of profit relative to its cost basis, representing a 26% unlevered realized gain over the cost basis
Slide 10: Potential Asset Sales
10 Potential Asset Sales (1) (1) As of March 31, 2023. (2) The Company is currently holding a buyer deposit of $17 million related to the Park Highlands Village 1 sales scheduled to close in October 2023 and October 2024, and so the Company will give the buyer credit for, and the Company’s proceeds
Slide 11: Debt by Rate Type, as of March 31, 2023
11 Debt by Rate Type, as of March 31, 2023 Rate Type Principal Balance ($000’s)(1) % of Total Effective Interest Rate(2) Fixed-Rate Bonds $ 323,781 30.6% 3.93% Fixed-Rate Secured Debt 233,490 22.1% 4.21% Floating-Rate Hedged 170,403 16.1% 6.90% Floating-Rate 329,146 31.2% 7.16% Total $ 1,056,820 100
Slide 12: Debt by Property Type, as of March 31, 2023
12 Debt by Property Type, as of March 31, 2023 Property Type Principal Balance ($000’s)(1) % of Total Loan-to-Value (LTV) % Effective Interest Rate Office $ 390,189 36.9% 59.7% 6.95% SFR & Apartments 318,134 30.1% 52.5% 5.10% Hotel 24,716 2.4% 54.9% 7.40% Land - 0.0% 0.0% N/A Subtotal – Secured Debt
Slide 13: Debt Maturities, as of March 31, 2023
13 Debt Maturities, as of March. 31, 2023 [1] The Company is examining the possible refinancing of some of the loans and also negotiates with the existing lenders and new potential lenders for such actions. As part of its negotiations, the Company has received term sheets in connection to some of it
Slide 14: 110 William Street Update
14 110 William Update NOTE: All aforementioned information, including the Company’s expectations and estimates, are forward- looking and based on the current status of negotiations. All aforementioned information may not materialize at all or may materialize in part or differently than stated. Updat
Slide 15: Potential Bond C Offering
Potential Bond C Offering Potential New Issuance of Bonds Secured by the Park Highlands Land and the Richardson Land 15 Park Highlands Land Richardson Land
Slide 16: Bond C - Deal Description
16 Bond C - Deal Description Issuance of bonds (series C) that will be secured by a first deed mortgage (registration in the U.S.) on certain parts of the Park Highlands land and Richardson land. The mortgage will include a lien on the full rights in the assets (100% and a lien on the property corpo
Slide 17: Park Highlands Land - Collateral Description
17 Park Highlands Land - Collateral Description Company share in the property 100% Location of the land North Las Vegas, Nevada Property acquisition date December 2011 & December 2013 Area of the land (current) Village I: 64.89 acres (~262.3 Dunam) Village II: 354.12 acres (~1433 Dunam) Land designa
Slide 18: Development of the area over the years
18 Development of the area over the years Source: images from Google Earth As of Sep 2010 Land was acquired in December 2011 & 2013. As of July 2022
Slide 19: Park Highlands - Background
19 Park Highlands - Background Park Highlands is a master planned community in North Las Vegas, with easy access to major Las Vegas employment and the I-15 and 215 Beltway freeways. It was the first master planned community in North Las Vegas in over a decade when it opened in 2018, and is approxima
Slide 20: Park Highlands – Background (continued)
20 Park Highlands – Background (continued) At the time of the partner buyouts in 2016, the land was estimated to be 1,670 gross acres and 1,255 developable acres, with an adjusted purchase price of $68.4 million or $55K per developable acre. The company successfully negotiated entitlements and land
Slide 21: Park Highlands – Sales performance over the years
21 Park Highlands – Sales performance over the years 1 Equals the sale price, net of seller concessions including those related to infrastructure costs which can vary significantly for different parcels. Excludes selling costs and fees. 2 Company is in possession of a $17 million non-refundable depo
Slide 22: Park Highlands – Market Commentary
22 Park Highlands – Market Commentary The Company continues to expect strong interest from homebuilders for what is the final 426 developable acres available for sale, in Village 2, of Park Highlands. Especially since the master planned community, which was the first master plan in North Las Vegas i
Slide 23: Richardson Lands, Palisades III & IV - Collateral Description
23 Richardson Lands, Palisades III & IV- Collateral Description Company share in the property 100% Location of the land Richardson, Texas Property acquisition date November 2011 & September 2014 Area of the land (current) Palisades III-14 acres (~56.6 Dunam) Palisades IV-11.4 acres (~46.13 Dunam) La
Slide 24: Richardson Lands, Palisades III & IV - Background
24 Richardson Lands, Palisades III & IV- Background Richardson is considered an affluent suburban city with a population of 119,469 according to the 2020 census. The city has easy access to Dallas, Texas and is well served by major transportation networks. Richardson is home to The University of Tex
Slide 25: Development of the area over the years
25 Development of the area over the years Source: images from Google Earth As of April 2011 Land was acquired in Dec. 2011 & Sept. 2014 As of June 2022
Slide 26: Collateral Summary
26 Collateral Summary # Name Location Acreage Valuation(1) Usage Comments 1 Park Highlands Village 1 parcel Las Vegas, Nevada 64.89 $35.6M Residential, plus community park The parcel is under contract to be sold for $35.6 million. 2 Park Highlands Village 2 parcel Las Vegas, Nevada 354.12 $139.5M Re
Slide 27: Updates & Financial Statement Supplements as of March 31st, 2023
WWW.DESIGNPOWER.COM Updates & Financial Statement Supplements as of March 31st, 2023 Marquette Plaza- Minneapolis, MN 27
Slide 28: Gross Profit by Property & Sector
28 Gross Profit by Property & Sector (1) Gross profit is measured for properties only, and excludes the dividend income from equity securities. Annualized regular dividend income on the securities owned as of March 31, 2023 is $4.4 million. (2) Reflects the Company’s 60% & 55% interest in the joint
Slide 29: Portfolio Occupancy
29 Portfolio Occupancy (1) Leased occupancy reflects actual leases signed, including leases that may not have commenced, as of the periods shown above. (2) The Company owns a 60% and 55% interest, respectively, in the joint ventures that own 110 William Street and 353 Sacramento. Rentable Mar. 31, 2
Slide 30: Assets Table, as of March 31st 2023
30 Assets Table, as of March. 31st 2023 (1) Balance sheet reflects these estimated fair values for investment properties and investments in joint ventures, except for Q&C Hotel which is carried on a cost basis, in accordance with International Financial Reporting Standards.
Slide 31: Assets Table, as of March 31st 2023
31 Assets Table, as of March. 31st 2023 (1) Balance sheet reflects these estimated fair values for investment properties and investments in joint ventures, except for Q&C Hotel which is carried on a cost basis, in accordance with International Financial Reporting Standards.
Slide 32: Assets Table, as of March 31st 2023
32 Assets Table, as of March. 31st 2023 (1) Balance sheet reflects these estimated fair values for investment properties and investments in joint ventures, except for Q&C Hotel which is carried on a cost basis, in accordance with International Financial Reporting Standards.
Slide 33: Equity Securities
33 Equity Securities The Company owns the following real estate equity securities: Shares Owned March 31, 2023 Market Value May 15, 2023 Market Value Franklin Street Properties (NYSE Ticker: FSP) 6,915,089 10,856,690$ 10,372,634$ Per Share 1.57 1.50 Plymouth Industrial REIT (NYSE Ticker: PLYM) 613,0
Slide 34: Thank You
THANK YOU Office Multifamily Single Family Rentals Hotel Lands
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