Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — IPO Roadshow (July 2017)
31 slides from Creative Media's IPO roadshow presentation, Jul 10, 2017
Slide 1: Important Disclosures: Forward-Looking Statements
IMPORTANT DISCLOSURES FORWARD-LOOKING STATEMENTS The information set forth herein contains "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts or they discuss the business and affairs of CIM Commercial Trust Corp
Slide 2: Important Disclosures: Free Writing Prospectus
IMPORTANT DISCLOSURES Free Writing Prospectus Filed Pursuant to Rule 433 Dated July 10, 2017 Registration Statement Nos. 333-203639; 333-210880; 333-218019 FREE WRITING PROSPECTUS CIM Commercial Trust Corporation Investor Presentation July 2017 CIM Commercial Trust Corporation (the “Company”) has fi
Slide 3: CMCT – Investment thesis
CMCT – Investment thesis Resources & Expertise of Premier Institutional Manager Class A and Creative Office Investments in Gateway Markets Same Store Growth Opportunity Attractive And Flexible Capital Structure Large scale platform with vertically-integrated team Proprietary “Qualified Community” me
Slide 4: CMCT – Investment thesis
MCT — INVESTMENT THESIS CMC T + Large scale platform with vertically-integrated team * Proprietary “Qualified Community" methodology * Disciplined, relative-value investor with sightlines across all major U.S. urban markets = Invested in high barrier-to-entry sub-markets where CIM Group anticipates
Slide 5: CIM Group Real Estate
CIM group CIM GROUP REAL ESTATE $19.9 Billion AUM, $12.4 Billion EUM1 Formed 1994 STABILIZED EQUITY OPPORTUNISTIC EQUITY DEBT VALUE-ADD EQUITY 6 CIM COMMERCIAL TRUST Publicly Traded REIT NASDAQ: CMCT Predecessor formed in 2005 See “Assets and Equity Under Management” under “Important Disclosures” on
Slide 6: CIM Group – Resources & Expertise of Premier Institutional Manager
Strategies Stabilized Equity Value-Add Equity Opportunistic Equity Debt CIM Group – Resources & Expertise of Premier Institutional Manager Established Established in 1994 as a partner for investors seeking to capitalize on U.S. urbanization Office Locations Headquartered in Los Angeles Investment of
Slide 7: CIM Group – Seasoned, Vertically-Integrated Team
CIM Group – Resources & Expertise of Premier Institutional Manager Seasoned, Vertically-Integrated Team Full-service investment manager Research, investment, acquisition and finance Development, leasing and asset management “Qualified Community” Methodology Sector-agnostic focus Market values that a
Slide 8: CIM Group – U.S. Qualified Communities
CIM GROUP – U.S. QUALIFIED COMMUNITIES 9 Areas with Investment(s) Areas Approved for Investment(s) CIM Headquarters Investment Office CMCT Office Portfolio Concentrations
Slide 9: CIM Commercial Trust
CIM COMMERCIAL TRUST (NASDAQ: CMCT) 10
Slide 10: CIM Commercial Trust
Cim Commercial Trust CIM COMMERCIAL (NASDAQ: CMCT) Portfolio Primarily Class A and creative urban office REIT with NAV and cash flow per share upside Share Price1 / Market Cap $15.85 / $0.9 billion NAV per Share / NAV2 $23.08 / $1.3 billion CIM Group Manager of CMCT Focused on consistently growing N
Slide 11: CMCT – Class A and Creative Office Portfolio in Gateway Markets
Cmct – Class A and Creative Office Portfolio IN GATEWAY MARKETS 12 CMCT Office CMCT Hotel As of March 31, 20171 Excludes 980 9th Street, 1010 8th Street Parking Garage & Retail and 200 S College Street, which were sold in June 2017, as well as 7083 Hollywood Boulevard, 47 E. 34th Street and 4200 Sco
Slide 12: CMCT – Class A and Creative Office Portfolio in Gateway Markets
cmct – Class A and Creative Office Portfolio in gateway markets 13 As of march 31, 2017 1 Represents gross monthly base rent, as of March 31, 2017, multiplied by twelve. The amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized
Slide 13: CMCT – In-Place Office Rents
cmct – Class A and Creative Office Portfolio in gateway markets 14 1 Per Square foot. For CMCT, represents gross monthly base rent per square foot under leases commenced as of March 31, 2017, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized r
Slide 14: CMCT – Key Market: Lake Merritt & Oakland CBD
Cmct – Key market: lake Merritt & Oakland CBD 15 CMCT INVESTMENTS ASSET TYPE SQF Occupied % In-Place Rents 1 Kaiser Plaza Office 532,543 96.2% $38.61 2101 Webster Street Office 473,156 98.9% $38.24 1901 Harrison Street Office 273,110 98.2% $36.14 1333 Broadway Office 240,051 92.9% $32.94 2100 Frankl
Slide 15: CMCT – Top Tenants
Tenant Property "Credit Rating (S&P / Moody's / Fitch)" Lease Expiration Annualized Rent (in thousands) % of Annualized Rent1 Rentable Square Feet % of Rentable Square Feet Kaiser Foundation Health Plan, Inc. 1 Kaiser Plaza / 2101 Webster Street AA- / - / A+ 2017-2027 18,045 12.8% 469,227 11.7% Depa
Slide 16: CMCT – Positive Leasing Trends / Manageable Lease Expirations
Cmct – Positive leasing trends / Manageable lease expirations 17 Based on the number of tenants. Excludes leases for which the space was vacant for longer than one year, month-to-month leases, leases with an original term of less than 12 months, related party leases, and space where the previous ten
Slide 17: CMCT – Same Store Growth Opportunity
Cmct – Same store growth opportunity 18 Class A & Creative Office Superior office investments in vibrant and improving urban communities Targeting same store NOI CAGR of 5% - 7% through 20211,2 Additional 1%-2% CAGR potential from development of already owned sites. Reflects cash and segment NOI. Pl
Slide 18: CMCT – Attractive and Flexible Balance Sheet
Cmct – Attractive and Flexible balance sheet Fixed vs. Floating Debt4,5,6 Long-Term Maturities4,5 Net Asset Value1,2 See “Net Asset Value” under “Important Disclosures” on page 31. As of March 31, 2017, adjusted for June share repurchase, the sale of 3636 McKinney Avenue and 3839 McKinney Avenue (Ma
Slide 19: CMCT – Attractive and Flexible Capital Structure
CURRENT CAPITAL STRUCTURE1 Cmct – Attractive And Flexible Capital Structure - Strong Returns 20 Based on fair value. Adjusted for the sale of 3636 McKinney Avenue and 3839 McKinney Avenue (sold in May 2017), 4649 Cole Avenue, 980 9th Street, 1010 8th Street Parking Garage & Retail and 200 S College
Slide 20: CMCT – Highly Focused on Value Creation and Total Return
Cmct – Highly focused on value creation And Total Return 21 2015-2016 Providing Liquidity to Shareholders Proceeds from asset sales ~$210 million Proceeds from CMBS refi ~$80 million Shares were repurchased in a privately negotiated transaction from a fund managed by an affiliate of CIM Group. Paid
Slide 21: CMCT – Highly Focused on Value Creation and Total Return
CMCT — HIGHLY FOCUSED ON VALUE CREATION AND TOTAL RETURN CMC T Active and opportunistic portfolio management to maximize returns to stockholders Date Liquidity > 6/2016 $210 million tender offer @ $21/share 9/2016 $80 million repurchase @ $22/share! = Proceeds from asset sales ~$210 million = Procee
Slide 22: CIM Group – Qualified Community Methodology
CIM GROUP – QUALIFIED COMMUNITY METHODOLOGY 23 QUALIFICATION CRITERIA Transitional Urban Districts Positive demographic trends Public support for investment Opportunities below intrinsic value Potential to invest a minimum of $100 million of opportunistic equity within five years Thriving Urban Area
Slide 23: CIM Group – Richard Ressler
CIM Group – Resources & Expertise of Premier Institutional Manager Richard Ressler CIM Group Principal, CMCT Chairman of the Board Founder and President of Orchard Capital Corp., a firm that provides consulting and advisory services to companies in which Orchard Capital or its affiliates invest Co-f
Slide 24: CIM Group – David Thompson and Terry Wachsner
CIM Group – Resources & Expertise of Premier Institutional Manager David Thompson CMCT Chief Financial Officer, CIM Group Principal Prior to joining CIM Group in 2009, spent 15 years with Hilton Hotels Corporation, most recently as Senior Vice President and Controller responsible for worldwide finan
Slide 25: CMCT – Consolidated Statements of Operations
CMCT – CONSOLIDATED STATEMENTS OF OPERATIONS 26 EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method of computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to round
Slide 26: CMCT – Funds from Operations
CMCT – funds from operations 27 We believe that FFO is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by security analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their resul
Slide 27: CMCT – Consolidated Balance Sheets
CMCT – CONSOLIDATED BALANCE SHEETS 28 March 31, 2017 December 31, 2016 (in thousands) (Unaudited) ASSETS Investments in real estate, net $ 1,505,492 $ 1,606,942 Cash and cash equivalents 404,346 144,449 Restricted cash 27,775 32,160 Accounts receivable, net 12,828 13,086 Deferred rent receivable and
Slide 28: CMCT – Debt Summary
CMCT – Debt summary1 29 Excludes $26.3 million of secured borrowings-government guaranteed loans, which represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral. Excludes p
Slide 29: Net Operating Income Reconciliation
Net operating income Reconciliation 30 CIM Commercial internally evaluates the operating performance and financial results of its segments based on segment net operating income, which is defined as rental and other property income and expense reimbursements less property related expenses, and exclud
Slide 30: Important Disclosures: Assets and Equity Under Management
Important Disclosures Assets and Equity Under Management Assets Under Management (“AUM”), or Gross AUM, represents (i)(a) for real assets, the aggregate total gross assets (“GAV”) at fair value, including the shares of such assets owned by joint venture partners and co-investments, of all of CIM’s a
Slide 31: Important Disclosures
IMPORTANT DISCLOSURES C MCT ‘Assets ond Equity Under Management ‘Assos Under Management {"AUM'. or Gross AUM, represents a) for real asses, the aggregate total goss ossels(°GAV") at for vale, including the shares of such asso, ‘owned by joint venture pariners ond coinvesiments, of of of CIM's advise