Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — IPO Roadshow (October 2017)
42 slides from Creative Media's IPO roadshow presentation, Oct 25, 2017
Slide 1: Important Disclosures: Free Writing Prospectus
IMPORTANT DISCLOSURES FREE WRITING PROSPECTUS CIM Commercial Trust Corporation (“CIM Commercial”, the “Company” or “CMCT”) has filed a registration statement (including a prospectus) on Form S-11 (No. 333-218019) with the U.S. Securities and Exchange Commission (the “SEC”) and with the Israel Securi
Slide 2: CMCT Investment Thesis
CMCT INVESTMENT THESIS 1. CIM Group: Resources & Expertise of Premier Institutional Manager CIM is a full-service, vertically-integrated manager of real estate funds focused on urban investments Serves a global institutional investor base and partners with some of the world’s largest providers of de
Slide 3: CIM Group Overview
CIM GROUP OVERVIEW 4 CIM GROUP OVERVIEW
Slide 4: CIM Summary
CIM SUMMARY 5 CIM GROUP OVERVIEW Established Established in 1994 as a partner for investors seeking urban infrastructure and real estate investments in communities qualified by CIM Vertically- Integrated Integrated, full-service investment manager with multi-disciplinary expertise and in-house resea
Slide 5: CIM Overview
CIM OVERVIEW 6 CIM GROUP OVERVIEW 100+ CIM QUALIFIED URBAN COMMUNITIES INFRASTRUCTURE & REAL ESTATE STABILIZED EQUITY OPPORTUNISTIC EQUITY DEBT VALUE-ADD EQUITY CIM PLATFORMS COMMINGLED FUNDS CO-INVESTMENTS SEPARATELY MANAGED ACCOUNTS CIM COMMERCIAL TRUST Publicly Traded REIT NASDAQ: CMCT Predecesso
Slide 6: CIM Competitive Advantages
CIM COMPETITIVE ADVANTAGES 7 CIM GROUP OVERVIEW 1. Team Led by 3 original founders, 15 principals (including founders) with average CIM tenure of 13+ years Integrated, full-service investment manager with expertise across in-house research, acquisition, investment, development, finance, leasing and
Slide 7: Vertically-Integrated Team: CIM Group Co-Founders
1. VERTICALLY-INTEGRATED TEAM 8 CIM Group Co-Founders 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-founded CIM Gr
Slide 8: Vertically-Integrated Team: CMCT Management
1. VERTICALLY-INTEGRATED TEAM 9 CMCT MANAGEMENT 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 financial reporting, fin
Slide 9: Vertically-Integrated Team
1. VERTICALLY-INTEGRATED TEAM 10 CIM GROUP OVERVIEW Sourcing Due Diligence Acquisition Preliminary Investment Committee Asset Management Committee Asset Management Disposition Dedicated Investment Team for Each Asset: Oversight Principal, Team Lead (Principal, Managing Director, 1st VP or VP), Assoc
Slide 10: Community Focused Strategy – CIM Qualified Communities
2. COMMUNITY FOCUSED STRATEGY – CIM QUALIFIED COMMUNITIES 11 CIM GROUP OVERVIEW QUALIFICATION CRITERIA Transitional Urban Districts Improving demographics Broad public support for CIM’s investment approach Evidence of private investment from other institutional investors Underserved niches in the co
Slide 11: Discipline
3. DISCIPLINE 12 CIM GROUP OVERVIEW Underwriting Employs current and long-term (generally based on 20-year historical averages) valuation metrics Underwriting of investments is performed on both a leveraged and unleveraged basis Leverage Investment strategy relies on sound business plan execution, n
Slide 12: CMCT Overview
Cmct overview 13 Cmct overview
Slide 13: Primarily Class A and Creative Urban Office REIT
Primarily Class A and creative urban office REIT 14 CIM COMMERCIAL (NASDAQ: CMCT) A public real estate investment trust (REIT) listed on NASDAQ since 2014 Predecessor entity was CIM Urban REIT, LLC, formed with 24 private institutional investors Primarily focuses on Class A and creative office inves
Slide 14: Coastal Urban Class A and Creative Office Portfolio
Coastal Urban Class A and Creative Office Portfolio1 15 Oakland & San Francisco Los Angeles Washington, D.C. Austin Total Office Hotel (Sacramento) # of Properties2 6 4 3 1 14 1 SF/Keys 1,802k 424k 885k 184k 3,295k 503 Occupancy 95.3% 96.7% 88.5% 88.0% 93.2% 84.0% Annualized Rent per Occupied SF/ADR
Slide 15: Representative CMCT Transactions
REPRESENTATIVE CMCT TRANSACTIONS The examples below have been selected to generally illustrate the investment philosophy of CIM, and may not be representative of future investments. Past performance is not a guarantee of future results. LAKE MERRITT 16 Other CIM Investments UNION SQUARE Other CIM In
Slide 16: Key Submarket: Lake Merritt & Oakland CBD
Key submarket: lake Merritt & Oakland CBD 17 FAVORABLE OFFICE DYNAMICS Relative Value vs. San Francisco CBD (Class A asking rents): 3 San Francisco - $73.42 Lake Merritt - $52.92 Limited New Office Supply in Lake Merritt / Oakland CBD: Last major office project completed in 20084 Proposition M: San
Slide 17: Key Submarket: NoMa, Washington D.C.
FAVORABLE OFFICE DYNAMICS3 Relative Value vs. Washington, D.C. CBD (Class A asking rents): NOMA: $49.51 CBD: $53.13 Net Absorption: Since 2010, annual growth in net absorption of 5.7% for NOMA compared to 0.5% for the Washington, D.C. metro Vacancy: NOMA vacancy of 12.1% vs. D.C. metro of 14.0% AN I
Slide 18: Office Portfolio – Key Performance Indicators
OFFFICE portfolio1 – Key Performance Indicators 1 CIM Commercial owned the following properties at June 30, 2017; however, they were excluded from the above presentation as they were sold as of October 24, 2017: 7083 Hollywood Boulevard, 370 L’Enfant Promenade and 800 North Capitol Street. 2 Histori
Slide 19: Well Diversified Portfolio
Well diversified portfolio1 20 Excludes the lending segment. As of June 30, 2017. CIM Commercial owned the following properties at June 30, 2017; however, they were excluded from the above presentation as they were sold or are under contract for sale as of October 24, 2017: 7083 Hollywood Boulevard,
Slide 20: Office Portfolio – Top Tenants
Office portfolio – Top 10 Tenants1 21 CMCT OVERVIEW 1 As of June 30, 2017. CIM Commercial owned the following properties at June 30, 2017; however, they were excluded from the above presentation as they were sold as of October 24, 2017: 7083 Hollywood Boulevard, 370 L’Enfant Promenade and 800 North
Slide 21: Capital Structure
CAPITAL STRUCTURE1, 6/30/17 Prudent and Flexible Capital Structure1 22 As of June 30, 2017, utilizing the Estimated NAV as presented on page 32. See “Net Asset Value” under “Important Disclosures” on page 42. As of June 30, 2017. Excludes premiums, discounts, debt issuance costs and secured borrowin
Slide 22: Conclusions
CONCLUSIONS Affiliation with CIM Provides Significant Resources, Expertise and Opportunity CMCT’s manager, an affiliate of CIM Group, has a 20+ year proven track record of investing in both stabilized and opportunistic real estate assets in funds with low leverage Experienced manager with acquisitio
Slide 23: CMCT Series L Preferred Stock Summary
CMCT Series l preferred Stock Summary 24 CMCT Series l preferred Stock Summary
Slide 24: Series L Preferred Stock – Terms Summary (1/2)
Cumulative Dividends Annual dividend rate: 5.50%, paid annually beginning January 2019 Subordination and Seniority: Series L Stated Value is senior to Common Stock Unpaid and accrued distributions on the Series L Preferred Stock is junior to the Initial Dividend with respect to payment of distributi
Slide 25: Series L Preferred Stock – Terms Summary (2/2)
Series l preferred stock – Terms summary1 (2/2) If Series L is in arrears (for any reason): CMCT will not be able to authorize a dividend/distribution to its Common Stock holders before paying all unpaid Series L accrued dividends CMCT will not be able to exercise its redemption rights, until all th
Slide 26: Series L Preferred Stock – Terms Summary (2/2)
SERIES L PREFERRED STOCK — TERMS SUMMARY! (2/2) CMC T + If Seties Lis in arrears (for any reason): = CMCTwill not be able to authorize a dividend/distribution to its Common Stock holders before paying all unpaid Series L accrued dividends - CMCTwill not be able to exercise its redemption rights, unt
Slide 27: Representative CIM Group Transactions
REPRESENTATIVE CIM GROUP TRANSACTIONS 28 TRIBUNE TOWER – CIM FUND VIII Location Acquisition Chicago, IL September 2016 432 PARK AVENUE – CIM FUND III Location Acquisition Disposition New York, NY January 2010 Partially Realized Other CIM Investments Use Residential / Retail Use Residential / Retail
Slide 28: Representative CIM Group Transactions
REPRESENTATIVE CIM GROUP TRANSACTIONS 29 The examples below have been selected to generally illustrate the investment philosophy of CIM, and may not be representative of future investments. Past performance is not a guarantee of future results. 11 MADISON AVENUE – CIM FUND III TWO CALIFORNIA PLAZA –
Slide 29: Representative CIM Group Transactions
REPRESENTATIVE CIM GROUP TRANSACTIONS 30 The examples below have been selected to generally illustrate the investment philosophy of CIM, and may not be representative of future investments. Past performance is not a guarantee of future results. MARQUEE AT BLOCK 37 – CIM FUND III SUNSET LA CIENEGA –
Slide 30: Representative CIM Group Transactions
REPRESENTATIVE CIM GROUP TRANSACTIONS 31 The examples below have been selected to generally illustrate the investment philosophy of CIM, and may not be representative of future investments. Past performance is not a guarantee of future results. HOLLYWOOD & HIGHLAND® – CIM FUND I/II Other CIM Investm
Slide 31: CMCT – Net Asset Value
CMCT – NET ASSET VALUE 32 ESTIMATED NET ASSET VALUE1,2 PRO-FORMA CASH NOI4 1 See “Net Asset Value” under “Important Disclosures” on page 42. 2 As of June 30, 2017, adjusted for assets sold or under contract for sale as of October 24, 2017. Debt as of June 30, 2017. Excludes secured borrowings on gov
Slide 32: Same-Store Growth Opportunity
Same-store growth opportunity 33 Class A & Creative Office Office investments in vibrant and improving urban communities Targeting same-store NOI CAGR of 5% - 7% through 20211,2 1 Additional 1%-2% CAGR potential from development of already owned sites. 2 Based on cash and segment NOI. CIM Commercial
Slide 33: Office Portfolio Summary
OFFICE Portfolio summary1 34 As of June 30, 2017 1 CIM Commercial owned the following properties at June 30, 2017; however, they were excluded from the above presentation as they were sold as of October 24, 2017: 7083 Hollywood Boulevard, 370 L’Enfant Promenade and 800 North Capitol Street. 2 Lindbl
Slide 34: Positive Leasing Trends / Manageable Lease Expirations
Positive leasing trends / Manageable lease expirations1 35 1 CIM Commercial owned the following properties at June 30, 2017; however, they were excluded from the above presentation as they were sold as of October 24, 2017: 7083 Hollywood Boulevard, 370 L’Enfant Promenade and 800 North Capitol Street
Slide 35: Debt Summary
Debt summary1,2 36 As of june 30, 2017 1 Excludes debt on 4200 Scotland Street ($28.9M) and 7083 Hollywood Boulevard ($21.7M), which were held for sale at June 30, 2017. 2 Excludes: (a) $23.0M of secured borrowings – government guaranteed loans, which represent sold loans that are treated as secured
Slide 36: Reconciliations / Important Disclosures / Disclosure Statement
RECONCILATIONS/IMPORTANT DISCLOSURES/DISCLOSURE STATEMENT RECONCILIATIONS/IMPORTANT DISCLOSURES/DISCLOSURE STATEMENT 37
Slide 37: Net Operating Income Reconciliations (1/4)
Net operating income ReconciliationS (1/4) 38 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 38: Net Operating Income Reconciliations (2/4)
Net operating income ReconciliationS (2/4) 39 Office Multifamily Hotel Lending Total Cash NOI 50,828 $ 4,495 $ 9,999 $ 2,539 $ 67,861 $ Deferred rent and amortization of intangible assets, liabilities and lease inducements 2,754 (118) 1 - 2,637 Straight line rent, below-market ground lease and amort
Slide 39: Net Operating Income Reconciliations (3/4)
Net operating income ReconciliationS (3/4) 40 Office Multifamily Hotel Lending Total Cash NOI 102,792 $ 6,758 $ 19,458 $ 2,860 $ 131,868 $ Deferred rent and amortization of intangible assets, liabilities and lease inducements 6,485 346 4 - 6,835 Bad debt expense (510) - - - (510) Straight line rent,
Slide 40: Net Operating Income Reconciliations (4/4)
Net operating income ReconciliationS (4/4) 41 As CIM Commercial's year end is December 31st, and CIM Commercial does not present TTM cash and segment NOI for the period ended June 30, 2017 in GAAP reporting, CIM Commercial reconciled the TTM cash and segment NOI using the NOI reconciliations above.
Slide 41: Important Disclosures
IMPORTANT DISCLOSURES 42 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’
Slide 42: Free Writing Prospectus
Free Writing Prospectus Filed Pursuant to Rule 433 Dated October 25, 2017 Registration Statement No. 333-218019 FREE WRITING PROSPECTUS CIM Commercial Trust Corporation (the “ Company ” or “ CMCT ”) has filed a registration statement (including a prospectus) on Form S-11 (No. 333-218019) with the U.