Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — IPO Roadshow (March 2018)
30 slides from Creative Media's IPO roadshow presentation, Mar 28, 2018
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 (“CMCT”, “
Slide 2: Important Disclosures: Forward-Looking Statements
IMPORTANT DISCLOSURES, C MCT FORWARD-LOOKING STATEMENTS The information set forth herein contsins “forworcJooking salements." You can identity these statements by the fact thot they do not relate sticty fo hishvical or curent foc or hey discuss the business ond offers of CIM Commercial ("CMCT" “CIM
Slide 3: CMCT – Key Performance Indicators
CMCT – Key Performance Indicators1,2 5 Office Hotel Metrics exclude 9460 Wilshire Boulevard, the lending segment and any assets sold prior to December 31, 2017. 1130 Howard Street was acquired in December 2017 and is included in 2017 metrics. The annualized rent as of December 31, 2017 for 12,944 re
Slide 4: CMCT – Net Asset Value and Pro-forma Cash NOI
CMCT – NET ASSET VALUE and pro-forma Cash noi 6 ESTIMATED NET ASSET VALUE1 PRO-FORMA CASH NOI3 As of December 31, 2017. See “Net Asset Value” under “Important Disclosures” on page 32. Excludes secured borrowings on government guaranteed loans, which are included with cash and other assets net of oth
Slide 5: CMCT – Net Asset Value and Pro-forma Cash NOI
CMCT — NET ASSET VALUE AND PRO-FORMA CASH NOI C M C T in thoviands, except for shares and per share amour {unaudited Investments inrealestate -t fat valve s 1.676.482 Loans receivable - a for valve 358 Debt” (0,695) Cosh ond other assets net of other fabio: 15.644 Noncontroling interests (0.085) Red
Slide 6: CIM Overview
CIM OVERVIEW 8 See “Assets Owned and Operated” under “Important Disclosures” on page 32. CIM OVERVIEW STABILIZED EQUITY OPPORTUNISTIC EQUITY DEBT VALUE-ADD EQUITY NET-LEASE DEBT Community Focused Urban Real Assets Strategy INFRASTRUCTURE & REAL ESTATE National Credit Strategy REAL ESTATE CIM GROUP $
Slide 7: CIM Summary
CIM SUMMARY 9 Established Established in 1994 as an integrated owner and operator of real assets Vertically- Integrated Multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing and asset management capabilities Organization 820+ employees (15 pr
Slide 8: CIM Competitive Advantages
CIM COMPETITIVE ADVANTAGES 1. Team Led by 15 principals (including the three original founders) with average CIM tenure of 15 years Vertically-integrated in-house team, including 440+ professionals, responsible for entire life cycle of each asset Expertise across research, acquisition, credit analys
Slide 9: CIM Competitive Advantages
CIM COMPETITIVE ADVANTAGES C | M M OVERVIEW = Led by 15 principals (including the three original founders) with average CIM tenure of 15 years = Vertically-integrated in-house team, including 440+ professionals, responsible for entire life cycle of each asset = Expertise across research, acquisition
Slide 10: CIM Commercial Trust
Cim commercial trust 12 CIM COMMERCIAL (NASDAQ: CMCT) (TASE: CMCT) Primarily focuses on Class A and creative office assets in vibrant and improving urban communities Share Price / Market Cap1 $19.10 / $0.84 billion NAV per Share / NAV1,2 $23.96 / $1.05 billion Institutional shareholder base Premier
Slide 11: Class A and Creative Office Portfolio in Gateway Cities
CLASS a AND CREATIVE OFFICE PORTFOLIO IN GATEWAY CITIES 13 Oakland & San Francisco Los Angeles Washington, DC Austin Total Office3 Hotel3 (Sacramento) # of Properties2 7 4 3 1 15 1 SF/Keys 1,826k 426k 885k 184k 3,322k 503 Occupancy 96.1% 97.7% 88.9% 92.2% 94.2% 81.5% Annualized Rent per Occupied SF/
Slide 12: Class A and Creative Office Portfolio in Gateway Markets
Class A and Creative Office Portfolio in gateway markets1 14 As of December 31, 20171 CIM Commercial acquired 9460 Wilshire Boulevard, an office building with 91,750 square feet of rentable office and retail space located in Beverly Hills, CA, on January 18, 2018. With the inclusion of 9460 Wilshire
Slide 13: Same-Store Growth Prospects
Same-store growth prospects 15 Class A & Creative Office Office assets in vibrant and improving urban communities Targeting same-store NOI CAGR of 4% - 6% through 20221,2,3 Additional 1%-2% CAGR potential from development of already owned sites. Based on cash and segment NOI. Excluding assets sold i
Slide 14: Current Capital Structure
CURRENT CAPITAL STRUCTURE2,3 Return Focused / Attractive Capital Structure 16 Includes core & core-plus acquisitions and development potential on sites already owned. Based on fair value. As of December 31, 2017. Attractive And Flexible Capital Structure1 Target capital structure of 45% common equit
Slide 15: Return Focused / Attractive Capital Structure: Providing Liquidity to Shareholders
Return Focused / Attractive Capital Structure 17 Providing Liquidity to Shareholders1 In September 2016, June 2017 and December 2017, CMCT repurchased $80 million, $576 million and $310 million, respectively, of common shares in privately negotiated transactions from Urban II. In connection with the
Slide 16: Return Focused / Attractive Capital Structure
RETURN FOCUSED / ATTRACTIVE CAPITAL STRUCTURE CMC T Active and opportunistic portfolio management to maximize returns to shareholders * Gross asset sales of ~§1.197 million (~$1.114million of net =o proceeds) (2015-2017) + Net proceeds from debt activity of ~$70 million (2016 & 2017)? = $163 million
Slide 17: Community Focused Strategy – CIM Qualified Communities
19 1 As of December 31, 2017. Note that multiple communities may be qualified within a larger city. COMMUNITY FOCUSED STRATEGY – CIM QUALIFIED COMMUNITIES1 QUALIFICATION CRITERIA Transitional Urban Districts Improving demographics Broad public support for CIM’s approach Evidence of private funding f
Slide 18: Resources & Expertise of Institutional Owner Operator – Co-Founders
Resources & Expertise of institutional owner operator – Co-Founders Richard Ressler CIM Group Principal, CMCT Chairman of the Board Founder and President of Orchard Capital Corp., a firm through which Mr. Ressler oversees companies in which Orchard Capital or its affiliates invest Co-Founder and a P
Slide 19: Key CMCT Submarket: Lake Merritt & Oakland CBD
Key cmct submarket: lake Merritt & Oakland CBD 22 FAVORABLE OFFICE DYNAMICS Relative Value vs. San Francisco CBD (Class A asking rents): 3 San Francisco - $74.44 Lake Merritt - $53.04 Limited New Office Supply in Lake Merritt / Oakland CBD: Last major office project completed in 20084 Proposition M:
Slide 20: CMCT – Recent Acquisitions
Cmct – Recent acquisitions BEVERLY HILLS 23 SOMA (SAN FRANCISCO) Location Attributes SoMa District of San Francisco, CA Located in vibrant neighborhood that CIM believes is the preferred location for many technology firms 100% leased with weighted average term of ~6 years1 Former concrete warehouse
Slide 21: Debt and Preferred Stock Summary
Debt and Preferred stock summary1 24 Excludes: (a) $21,000,000 of secured borrowings – government guaranteed loans, which represent sold loans that are treated as secured borrowing because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collat
Slide 22: CMCT Office Portfolio – Top Tenants
Cmct Office portfolio – Top 10 Tenants1 25 As of December 31, 2017. Other than as set forth in the footnote below, represents gross monthly base rent, as of December 31, 2017, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been gro
Slide 23: Positive Leasing Trends / Manageable Lease Expirations
Positive leasing trends / Manageable lease expirations1 26 For all periods presented, leasing activity for the assets sold prior to December 31, 2017 is excluded. Based on the number of tenants having leases with terms longer than twelve months. Recurring metrics excludes space that was vacant for m
Slide 24: Reconciliations/Important Disclosures
27 RECONCILIATIONS/IMPORTANT DISCLOSURES
Slide 25: Net Operating Income Reconciliations (1/4)
Net operating income ReconciliationS (1/4) 28 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
Slide 26: Net Operating Income Reconciliations (2/4)
Net operating income Reconciliations (2/4) 29 Office Multifamily Hotel Lending Total Cash NOI 99,448 $ 8,583 $ 15,917 $ 4,522 $ 128,470 $ Deferred rent and amortization of intangible assets, liabilities and lease inducements 6,667 (86) 3 - 6,584 Straight line rent, below-market ground lease and amor
Slide 27: Net Operating Income Reconciliations (3/4)
Net operating income Reconciliations (3/4) 30 Office Multifamily Hotel Lending Total Cash NOI 100,863 $ 6,827 $ 16,399 $ 1,813 $ 125,902 $ Deferred rent and amortization of intangible assets, liabilities and lease inducements 5,143 41 3 - 5,187 Straight line rent, below-market ground lease and amort
Slide 28: Net Operating Income Reconciliations (4/4)
Net operating income Reconciliations (4/4) 31 ($ in thousands) (Unaudited) December 31, 2016 December 31, 2017 Net income attributable to the company 34,547 $ 379,737 $ Total GAAP NOI 133,406 $ 128,452 $ Less GAAP NOI from assets sold prior to December 31, 2017 43,589 28,104 Pro-forma GAAP NOI 89,81
Slide 29: Important Disclosures
IMPORTANT DISCLOSURES 32 Assets Owned and Operated “Assets Owned and Operated” 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, owned and operated by CIM on behalf of part
Slide 30: Important Disclosures
IMPORTANT DISCLOSURES C MCT {Astels Owned and Operated “Assets Owned ond Operated! represents i (0) fr real assets, he aggregate total ros astets (GAY) at fair value. including the shares of such astets owned by joint venture ‘partners ond co-nvestments owned and operated by CIM on behalof partner [