Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — Investor Presentation (December 2022)
24 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Dec 8, 2022
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 7, 2022 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 VALUATION(1) • Estimated share value of $10.50, using information as of September 30, 2022. • 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 unconso
Slide 4: Estimated value per share breakdown
4 1 Based on data as of September 30, 2022. For further information, see the Company’s Current Report on Form 8-K filed with the SEC on December 7, 2022. 2 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,
Slide 5: Change in estimated value per share
5 1 Based on data as of September 30, 2022. For further information, see the Company’s Current Report on Form 8-K filed with the SEC on December 7, 2022. 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 limitations
6 The Company is providing this estimated value per share to assist broker-dealers, custodians, and other financial institutions that participated in its initial public offering in meeting their customer account statement reporting obligations. As with any valuation methodology, the methodologies us
Slide 7: Stockholder Performance
7 $0.44 $0.62 $0.98 $1.36 $1.73 $1.78 $1.81 $1.82 $1.82 $1.82 $0.72 $1.47 $1.49 $1.49 $1.49 $1.67 $2.89 $5.44 $5.83 $5.31 $5.86 $7.56 $10.00 $11.27 $12.24 $13.44 $14.81 $11.50 $9.91 $10.63 $9.68 $10.68 $10.50 $10.00 $11.71 $12.86 $14.42 $16.17 $16.84 $18.60 $19.76 $18.30 $19.85 $21.55 Offering Price
Slide 8: Stockholder Performance Illustration
8 STOCKHOLDER PERFORMANCE ILLUSTRATION Since special dividends were declared in December 2017, November 2018, and December 2021, 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
Slide 9: Market & Portfolio Updates
9 MARKET & PORTFOLIO UPDATES
Slide 10: Commercial property values and stock market indices
10 $10.63 Property Type Index Value Change in Commercial Property Values Past 12 months From Pre-COVID All Property 145.7 -1% 8% Core Sector 146.7 -2% 9% Apartment 178.3 -3% 15% Industrial 230.8 -1% 39% Mall 80.1 -5% -17% Office 107.0 -4% -9% Strip Retail 120.7 1% 7% Healthcare 147.5 1% 3% Lodging 1
Slide 11: Portfolio Overview
11 P O RT F O L I O O V E RV I EW Investment Type Dec. 2022 NAV Value1 % of Total6 Occupancy/ Hotel RevPAR 9/30/213 Occupancy/ Hotel RevPAR 9/30/193 Office $1,367,870,000 48.2% 68.0% 79.6% SFR & Apartments $662,418,000 27.9% 93.6% 94.9% Land $439,030,000 19.3% N/A N/A Hotel $45,000,000 1.8% $114.21
Slide 12: Properties: Offices
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: OFFICES Oakland City Center Oakland, CA Office 2 Buildings 10/5/2020 368,043 63.6% 100% The Marq Minneapolis, MN Office 1 Building 3/1/2018 522,656
Slide 13: Properties: Apartments, SFR, Hotels, Land
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 % CONSOLIDATED PROPERTIES: APARTMENTS & SINGLE-FAMILY RENTALS (SFR) 1180 Raymond Newark, NJ 317 Unit Apartment Building 8/20/2013 268,648 95.3% 100% Lofts at NoHo Commons (JV
Slide 14: Properties: Unconsolidated
14 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 49.4% 55% 110 William Street (JV) New York, NY Office 1 Building 5/2/201
Slide 15: Dispositions History
15 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 consolidated joi
Slide 16: Pacific Oak Residential Trust Summary & Highlights
16 PACIF IC OAK RESIDENT IAL T RUST SUMMARY & H IGHLIGHT S (1 ) 2,458 Single-Family Rental (SFR) home portfolio 6.50% cash-on-cash yield(2) 34.2% home value appreciation(3) 1. Pacific Oak Residential Trust is a consolidated subsidiary of the Company focused on single-family rental homes, of which th
Slide 17: Pacific Oak Opportunity Zone Fund I Summary & Highlights
17 PACIF IC OAK OPPORT UNITY ZONE FUND I SUMMARY & H IGHLIGHT S (1) Fund closed to new investors in Q1 2022, having raised $61.5 million (including $28.2 million from the Company and $4.0 million from Pacific Oak principals). Investments valued at $130 million as of September 30, 2022, an increase o
Slide 18: Value Add Opportunities Continue
18 VALUE ADD OPPORTUNITIES CONTINUE
Slide 19: Office and SFR value-add opportunities
19 COMPANY’S OFFICE INVESTMENTS CAN INCREASE OCCUPANCY, INCOME, & VALUE: Office represents 48.2% of the portfolio’s total value(1) Office occupancy is only 68% at September 30, 2022(1) Company remains optimistic about the long-term value in the office sector Company will continue to explore
Slide 20: Richardson Development: At Completion
20 RICHARDSON DEVELOPMENT: AT COMPLET ION
Slide 21: Richardson Development: At Completion
21 RICHARDSON DEVELOPMENT: AT COMPLET ION
Slide 22: Las Vegas Park Highlands land
22 The Company is amongst the largest residential land owners in Las Vegas via its Park Highlands investment, owning approximately 733 acres as of Nov. 30, 2022. The Company continues to believe its Las Vegas residential land has significant value given (i) homebuilder demand, (ii) housing market co
Slide 23: 2023 Goals & Objectives
23 2023 GOALS & OBJECT IVES (1) PROVIDE STOCKHOLDER LIQUIDITY On December 6, 2022, the Company’s Board of Directors authorized for the Advisor to meet with and recommend to the Board of Directors one or more financial and other advisors to be engaged on behalf of the Company to consider ways to pr
Slide 24: Thank You
24 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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