Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — Investor Presentation (December 2020)
26 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Dec 10, 2020
Slide 1: Valuation and Portfolio Update
M A T C H I N G C A P I T A L W I T H O P P O R T U N I T Y P A C I F I C O A K S T R A T E G I C O P P O R T U N I T Y R E I T V a 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 9, 2020 Exhibit 99.4
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS I M P O R T A NT 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 I, Inc. (“Pacific Oak Strategic Opportunity REIT” or the “Company”) Annual Repor
Slide 3: Valuation methodology and key assumptions
• Estimated value per share calculated using information as of September 30, 2020, with the exception of adjustments to give effect to the Merger2 which closed on October 5, 2020 and merger-related expenses incurred upon the closing. 3 • The Company followed the Institute for Portfolio Alternatives
Slide 4: Valuation
4 VALUATION1 1 Based on data as of September 30, 2020, with the exception of adjustments to give effect to the Merger which closed on October 5, 2020 and merger-related expenses incurred upon the closing. 2 Based on data as of September 30, 2019, with the exception of (i) real estate which was value
Slide 5: Valuation
VALUATION1 5 1 Based on data as of September 30, 2020, with the exception of adjustments to give effect to the Merger which closed on October 5, 2020 and merger-related expenses incurred upon the closing. 2 Includes the merger impact, which was a decrease in estimated share value of $0.36, reflectin
Slide 6: Estimated value per share purpose and limitations
6 The Company is providing this estimated value per share to assist broker dealers that participated in its initial public offering in meeting their customer account statement reporting obligations. As with any valuation methodology, the methodologies used are based upon a number of estimates and as
Slide 7: Stockholder Performance
$0.44 $0.62 $0.98 $1.36 $1.73 $1.78 $1.81 $1.82 $0.72 $1.47 $1.49 $1.49 $2.89 $5.44 $5.83 $5.31 $10.00 $11.27 $12.24 $13.44 $14.81 $11.50 $9.91 $10.63 $9.68 $10.00 $11.71 $12.86 $14.42 $16.17 $16.84 $18.60 $19.76 $18.30 Offering Price Mar-14 Dec-14 Dec-15 Dec-16 Dec-17 Nov-18 Dec-19 Dec-20 $1.14 $1.
Slide 8: Stockholder Performance Illustration
8 STOCKHOLDER PERFORMANCE ILLUSTRATION 1 Assumes the shareholder receives 20% of the special dividend in cash and 80% in stock. If a significant number of investors elect all stock, a cash electing investor may receive more than 20% of the special dividend in cash. 2 Assumes a stock dividend rate of
Slide 9: Portfolio Overview & Highlights
9 PORTFOLIO OVERVIEW & HIGHLIGHTS
Slide 10: Portfolio overview and highlights
10 1 Reflects the property values for all real estate, including the properties owned via joint ventures, as well as real estate equity securities values used in the December 2020 share value, after adjusting for the Company’s share of consolidated and unconsolidated joint entities. The total value
Slide 11: Properties: consolidated offices
Property Name City, State Property Type/ No. of Buildings Date Acquired by Company/POSOR II Size (SF) Occupancy % Ownership % CONSOLIDATED PROPERTIES: OFFICES Oakland City Center Oakland, CA Office 2 Buildings 8/18/2017 368,032 78.3% 100% City Tower Orange, CA Office 1 Building 3/6/2018 435,177 94.1
Slide 12: Consolidated properties: apartments, SFR, hotels, land
CONSOLIDATED PROPERTIES: APARTMENTS & SINGLE-FAMILY RENTALS (SFR) 1180 Raymond Newark, NJ 317 Unit Apartment Building 8/20/2013 268,648 87.4% 100% Lofts at NoHo Commons (JV) N. Hollywood, CA 292 Unit Apartment Building 11/16/2016 224,755 87.7% 90% Pacific Oak Residential Trust 1,769 Single Family Ho
Slide 13: Properties (continued): unconsolidated
Property Name City, State Property Type/ No. of Buildings Date Acquired by Company/POSOR II Size (SF) Occupancy % Ownership % UNCONSOLIDATED PROPERTIES 353 Sacramento (JV) San Francisco, CA Office 1 Building 7/11/2016 284,751 90.9% 55% 110 William Street (JV) New York, NY Office 1 Building 5/2/2014
Slide 14: Dispositions History
14 DISPOSITIONS HISTORY 1 Equals the sale price, net of seller concessions, without adjustment for joint venture partners’ share of consolidated joint ventures. Excludes selling costs and fees. 2 Equals the acquisition price (excluding acquisition costs and fees) plus capital expenditures and alloca
Slide 15: Pacific Oak Residential Trust single-family homes
559 single family homes located primarily in Ohio, Indiana, and North Carolina via the acquisition of Battery Point Trust on July 1, 2020 15 994 single family homes located primarily in Atlanta, Birmingham, Houston, Jacksonville, Memphis and Oklahoma City via the acquisition of Reven (NASDAQ: RVEN)
Slide 16: Homes by market and NOI by market
# of HOMES BY MARKET As of September 30, 2020, PORT owns 1,769 homes which are 91.4% occupied and generate a levered income yield of 10.98% (1). NOI BY MARKET (1) Assumes occupancy of 100% because (i) there has not been a long enough operating history for the Company to estimate a representative, no
Slide 17: Opportunity Zone Fund I developments
Wood Village near Portland, OR (Closed): • 173 apartments, $45.9 million construction cost • Q1 2021 estimated completion Imperial Apartments, Phoenix, AZ (Closed): • 140 workforce apartments, $15.0 million construction cost • 2H 2021 estimated completion St. Ambrose Apartments, Phoenix, AZ (Closed)
Slide 18: COVID-19 Commentary: U.S. Economy and Office Sector
18 COVID-19 Commen ta ry U.S. Economy Office Sector But the pandemic has hit the office sector. At the national level, vacant and sublease spaces are on the rise and net absorption is expected to be negative for the first time since 2009 and average rent is expected to experience its first annual de
Slide 19: COVID-19 Commentary: Apartment, SFR and Hotel Sectors
19 COVID-19 Commen ta ry Apartment & SFR Sectors Hotel Sector The collection rates contrast with the rate for residential renters overall. An estimated 1 in 6 tenants are behind on their rent as of September 2020 and as many as 34 million people in the U.S. may be at risk of eviction following the e
Slide 20: Value Add Opportunities Continue
20 VALUE ADD OPPORTUNITES CONTINUE
Slide 21: Richardson Development: At Completion
AR vc: OAK RICHARDSON DEVELOPMENT: AT COMPLETION CLASS A SUBMARKET RENTS UP ALMOST 34% SINCE 2011 ACQUISITION N COLLINS BLVD. KEY: Je 1L RESIDENTIAL -5 STORIES ee 2. RESIDENTIAL -8 STORIES 3. RESIDENTIAL: 4 STORIES OVER RETAIL 4, LIVE/WORK - 4 STORIES. S.OFFICE-1 STORY & OFFICE-a STORIES é 7.OFFICE-
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Slide 23: Sold properties and current offers
23 SOLD SOLD SOLD Current Offers Sold Storm Basin
Slide 24: e\WoodburyiBeltway,
e\WoodburyiBeltway, Loe ’ 24
Slide 25: 2021 Goals & Objectives
25 2021 GOALS & OBJECTIVES Convert to NAV REIT Prov ide enhanced shareho lder l iqu id i ty Se l l propert ies at attract ive r isk-adjusted pr ices and re invest capi ta l for perpetua l NAV REIT Lease-up and stabi l i ze propert ies to dr ive income and va lue growth, and pursue a l l va lue-add o
Slide 26: Thank You!
THANK YOU! 1 - 8 6 6 - P A C - O A K 7 (1-866-722-6257) INFO@PACIFICOAKCAPITAL.COM 11766 Wilshire Blvd, Suite 1670 Los Angeles, CA 90025 PACIFICOAKCAPITAL.COM 26 FOLLOW US ON LINKEDIN For more information, please contact your financial advisor or Pacific Oak Capital Markets Group at (866) 722-6257.
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