Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — IPO Roadshow (August 2019)
31 slides from Creative Media's IPO roadshow presentation, Aug 8, 2019
Slide 1: CIM Commercial Trust
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Slide 2: CIM Commercial Trust
CIM Commercial Trust As of June 30, 2019. Pro forma for sale of 899 North Capitol Street, 901 North Capitol Street, and 999 North Capitol Street, which were sold to an unrelated third party in July 2019. Pro forma estimates as of June 30, 2019, following the completion of the Program to Unlock Embed
Slide 3: Program to Unlock Embedded Value and Improve Trading Liquidity
CIM Commercial Trust As of July 31, 2019. CMCT has approximately 43.8 million shares of common stock outstanding. Based on fair value. 4 10 properties sold for a combined gross sales price of $991 million (see page 30 for list of assets)1 Declared $613 million special dividend ($14.00 per share) to
Slide 4: Total Returns Based on NAV: Maximizing Returns For Stockholders
Total Returns Based on NAV2,3 NAV per Share + Dividends Maximizing Returns For Stockholders 5 As of July 31, 2019. Total returns includes changes in stock price or NAV per share, as applicable, and includes all dividends declared and paid with respect to CMCT’s common stock from March 31, 2014 to Ju
Slide 5: CIM Commercial Trust - Key Investment Highlights
Significant Embedded Organic Growth Opportunity From Outsized Growth In Key Gateway Markets CIM Commercial Trust – Key Investment Highlights High Quality Class A and Creative Office Portfolio 2 Deep Commercial Property Expertise Through Relationship with CIM Group 1 Equity-Enhancing, Growth-Oriented
Slide 6: CIM Commercial Trust - Key Investment Highlights
CIM Commercial Trust - Key Investment Highlights CMCT Deep Commercial Property Expertise Through Relationship with CIM Group High Quality Class A and Creative Office Portfolio CMCT Significant Embedded Organic Growth Opportunity From Outsized Growth In Key Gateway Markets External Growth Opportunity
Slide 7: Overview of CIM
Established Established in 1994 as an integrated owner and operator of real assets As of March 31, 2019. See Important Information on page 32. Strategies Real assets (infrastructure and real estate) focused in communities qualified by CIM as well as national credit (net-lease and debt) platforms Ver
Slide 8: CIM Competitive Advantages
CIM Competitive Advantages Diverse Team of In-House Professionals Commitment to Community Disciplined Approach Led by 14 principals (including the three original founders) with average CIM tenure of 14 years Vertically-integrated, real assets owner and operator with expertise across in-house researc
Slide 9: CIM Qualifies Communities in High Barrier-to-Entry Markets
Since 1994, CIM has qualified 122 communities in high barrier-to-entry markets and has owned and operated real assets in 72 of those communities1. The qualification process generally takes between six months and five years and is a critical component of CIM’s asset evaluation CIM believes that its c
Slide 10: Community Focused Strategy - CIM Qualified Communities
10 Growth in CIM Qualified Communities vs. National Downtowns vs. National Suburbs CIM qualifies communities for acquisition (122 qualified as of July 31, 2019, 72 deployed capital). CIM Qualified Communities exhibit strong growth trends, which CIM believes will lead to outsized rental growth and/or
Slide 11: Resources & Expertise of Institutional Owner Operator
Resources & Expertise of Institutional Owner Operator 12 Richard Ressler CIM Group Principal CMCT Chairman of the Board 26th Year at CIM Avi Shemesh CIM Group Principal CMCT Board Member 26th Year at CIM Shaul Kuba CIM Group Principal CMCT Board Member 26th Year at CIM David Thompson CMCT CEO 10th Y
Slide 12: CIM Group Commitment to CMCT
CIM Group Commitment to CMCT Directors & officers of CMCT, CIM Group and its affiliates own approximately one million shares of CMCT 20 of 26 investors in the Fund (that was the principal stockholder of CMCT) invested in other CIM Group funds Management and Corporate Governance CMCT’s Board includes
Slide 13: Alignment of Interests
@ Alignment of interests CIM Group Commitment to CMCT Management and Corporate > Governance Strong Market Knowledge and » Sourcing Management Agreement / Master Services Agreement CMCT Directors & officers of MCT, CIM Group and its affiliates own approximately one million shares of CMCT 20 of 26 inv
Slide 14: CMCT History: Transition from Private Fund to Public REIT
CMCT History 15 Transition from Private Fund to High-Quality Public REIT October 2018 Announced Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock (see page 30 for details) March 2019 – July 2019 Completed sale of 10 properties for a combined gross sa
Slide 15: High Quality Class A & Creative Office Portfolio
High Quality Class A & Creative Office Portfolio As of June 30, 2019. Pro forma for sale of 899 North Capitol Street, 901 North Capitol Street, and 999 North Capitol Street, which were sold to an unrelated third party in July 2019. Represents gross monthly base rent, as of June 30, 2019, multiplied
Slide 16: Embedded Growth Opportunity: Los Angeles
17 Embedded Growth Opportunity: Los Angeles CIM Group: 60+ Los Angeles Investments Over 25 Years Tech, media and entertainment demand driving growth Major content creators such as Netflix, Google, and Amazon Studios lease 2.2+ million SF of office and production space across West Los Angeles and Hol
Slide 17: Embedded Growth Opportunity: Oakland
Embedded Growth Opportunity: Oakland Relative Value vs. San Francisco Central Business District (“CBD”) (Class A asking rents)1: San Francisco - $77.90 Oakland - $53.32 Limited new office supply in Lake Merritt / City Center: Last major office project completed in 20081 Office building development h
Slide 18: Embedded Growth Opportunity: Austin
Embedded Growth Opportunity: Austin Diverse Employment Sources – government, education and tech Austin is home to many large U.S. corporations including Amazon, Facebook, Apple, Cisco, eBay, GM, Google, IBM, Intel, Oracle, Paypal, 3M and Whole Foods Sustained, rapid market rent growth Five year Incr
Slide 19: Redevelopment In Progress: Austin
Redevelopment In Progress: Austin 20 4 Rendering of “Building L” – Expansion to Existing Campus 3601 South Congress- Existing Buildings 3601 S. Congress Avenue Expansion - Mid-2020 Expected Completion Approximately 42,000 SF add-on building to existing 183,885 SF office complex (97.5% leased as of J
Slide 20: Redevelopment In Progress: Los Angeles
Redevelopment In Progress: Los Angeles 21 4 4750 Wilshire Boulevard - Repositioning Currently being repositioned into vibrant, collaborative office space following the expiration of a lease agreement for 100% of the property in April 2019 Centrally located in Park Mile / Hancock Park location with b
Slide 21: Redevelopment In Progress: Sacramento
Redevelopment In Progress: Sacramento 22 4 Sheraton Grand Room Renovations Scheduled to be Complete in Late 2020 ~$26 million renovation of existing hotel to drive average daily rate, improve group bookings ($1.2 million spent as of June 30, 2019) Target 15%+ return on cost Renegotiate Marriott Hote
Slide 22: Growth Pipeline: Oakland Potential Build-to-Suit
Growth Pipeline: Oakland 23 Potential Build-to-Suit Rendering of 2 Kaiser Plaza (Beacon Tower), Oakland, CA 4 1 Kaiser Plaza – Existing Building Bay Area 2 Kaiser Plaza (Beacon Tower) Build-to-suit opportunity Currently marketing development to potential anchor tenants Entitled for 425,000-800,000 S
Slide 23: Equity-Enhancing, Growth-Oriented Capital Structure
Historical Preferred Stock Issuance2 Equity-Enhancing, Growth-Oriented Capital Structure Preferred Stock Program 24 Series A Perpetual Preferred Stock at 5.5% coupon Continuously offered - monthly issuance CMCT and investor option to call/redeem five years from issuance at $25 per share, plus accrue
Slide 24: Debt & Preferred Summary
Corporate Debt Revolving Credit Facility3 Variable LIBOR+ 1.55%3 10/31/2022 $ - Junior Subordinated Notes Variable LIBOR+ 3.25% 3/30/2035 27.1 Total Corporate Debt $ 27.1 Total Debt $ 151.5 25 Debt & Preferred Summary (June 30, 2019)1 Debt Maturity Schedule (June 30, 2019)1 (in millions) Excludes: (
Slide 25: CIM Commercial Trust - Key Investment Highlights
Significant Embedded Organic Growth Opportunity From Outsized Growth In Key Gateway Markets CIM Commercial Trust – Key Investment Highlights High Quality Class A and Creative Office Portfolio 2 Deep Commercial Property Expertise Through Relationship with CIM Group 1 Equity-Enhancing, Growth-Oriented
Slide 26: Estimated Net Asset Value
Estimated Net Asset Value Pro Forma Estimated Net Asset Value1,2 (As of June 30, 2019) ($ in millions, except for shares and per share amounts) (Unaudited) 28 Represents the pro forma NAV as of June 30, 2019 following the impact of the Program to Unlock Embedded Value in Our Portfolio and Improve Tr
Slide 27: Key Metrics
Key Metrics 29 Lease Expirations as a % of Annualized Office Rent1,2 Top Five Tenants1 As of June 30, 2019. Pro forma for sale of 899 North Capitol Street, 901 North Capitol Street, and 999 North Capitol Street, which were sold to an unrelated third party in July 2019. Represents gross monthly base
Slide 28: Program to Unlock Embedded Value in Our Portfolio
Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock » Monetize stabilized assets to unlock embedded value that has been created since 2006 » Special dividend of $14.00 per share of common stock payable on August 30, 2019: the aggregate Unlock Embedded
Slide 29: Program to Unlock Embedded Value in Our Portfolio
Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock » Monetize stabilized assets to unlock embedded value that has been created since 2006 CMCT Unlock Embedded» ‘Special dividend of $14.00 per share of common stock payable on August 30, 2019: the aggre
Slide 30: Important Information
Important Information 32 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 duplication. AOO includes
Slide 31: Important Information
Important Information CMCT Assets Owned and Operated (AQO) 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 duplication. AOO includ