Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — Investor Presentation (September 2024)
20 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Sep 5, 2024
Slide 1: Capital Market Presentation Update Based on Q2-2024 Reports
P A C I F I C O A K S O R ( B V I ) H o l d i n g s L T D Capital Market Presentation Update Based on Q2-2024 Reports -September 2024- Office Multifamily Single Family Rentals Hotel Land Exhibit 99.1
Slide 2: Disclaimer
2 Disclaimer This presentation represents an English translation provided for convenience purposes only. This is not an official translation and is not binding. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the original Hebr
Slide 3: About Pacific Oak
3 About Pacific Oak Multifamily: 1180 Raymond Boulevard, Newark, NJ Pacific Oak Group was established by Keith Hall and Peter McMillan III. Its professional advisory company, Pacific Oak Capital Advisors, serves as advisor to Pacific Oak SOR (BVI) Holdings LTD (“the Company”), advisor to the Company
Slide 4: The Group Regulatory Compliance
4 The Group Regulatory Compliance (1) U.S. financial industry’s self-regulatory organization that regulates the activities of brokerage firms and stockbrokers. It is responsible for overseeing and enforcing compliance with U.S. securities laws and regulations, as well as promoting transparency and f
Slide 5: Bond Coverage, 2024
5 Bond Coverage(1), as of June 30, 2024 % of Total June 2024 Value ($000’s)(2)Bond Coverage 4.1%$ 40,424 Cash & Cash Equivalents 3.7%39,014Restricted Cash(3) 0.8%8,598Equity Securities 8.6%$ 88,036Subtotal – Liquidity 24.8%$ 252,651Equity Value in Land Under Sale Contract(2), (4) 28.8%294,227Equity
Slide 6: Portfolio Strategic Shift, to SFR & Apartments
6 Portfolio Strategic Shift, to SFR & Apartments(1) (1) Figures reflect the Company’s equity values, calculated for properties as property estimated fair value less secured debt principal and net of minority interests in consolidated and unconsolidated joint ventures. As of Sep. 30th, 2015 (the fina
Slide 7: Company's Disposition History
C o m pa ny ’s D is po si tio n H is to ry 7 The Company’s strategies have been validated by its strong track record of realized value growth. The Company’s property sales have generated $436 million of profit relative to its cost basis, representing a 30% unlevered realized gain over the cost basis
Slide 8: Asset Sales & Financings, to Manage Liquidity
8 Asset Sales & Financings, to Manage Liquidity The Company’s plan for property sales is as follows, though additional sales could be pursued including from Pacific Oak Residential Trust(1): (1) All of the Park Highlands land is under sale contract as of June 30, 2024. Of the approximately 517 devel
Slide 9: Park Highlands Land Sales Under Contract
9 Park Highlands Land Sales Under Contract (1) The sales will close out an incredibly profitable and timely investment by the Company, which had acquired the large acreage via joint venture deals in 2011 and 2013 at the depths of the housing bust and then subsequently bought out its joint venture pa
Slide 10: 110 William Update
10 110 William Update 640,000 SF LEASE SIGNED FOR 20 YEAR TERM WITH AA CREDIT-RATED TENANT (JUNE 2023), DEBT & EQUITY RESTRUCTURED (JULY 2023) Lease brings the building occupancy up to essentially 100%. Lease was the largest office lease signed in the market, year-to-date, as of lease signing on
Slide 11: 110 William Recapitalization Economics
11 110 William Recapitalization Economics Waterfall Returns Summary Assumptions: Sale Date: 3/31/27 Mos. from Est. Restructure: 48 Est. Restructure Closing: 4/30/23 Tier 1 - IRR Threshold 10.0% Tier 1 - Pac-Oak Split 100.0% Tier 2 - IRR Threshold 15.0% Tier 2 - Pac-Oak Split 75.0% Tier 3 - Pac-Oak S
Slide 12: Debt by Rate Type, 2024
12 Debt by Rate Type, as of June 30, 2024(1) Effective Interest Rate(2) % of Total Principal Balance ($000’s)(1) Rate Type 3.93%20.3%$ 205,685 Fixed-Rate Series B Bonds 9.00%9.4%95,377Fixed-Rate Series C Bonds 9.50%7.5%76,329Fixed-Rate Series D Bonds 4.05%21.3%216,814Fixed-Rate Secured Debt 5.88%14.
Slide 13: Debt by Property Type, 2024
13 Debt by Property Type, as of June 30, 2024(1) Effective Interest Rate Loan-to-Value (LTV) % % of Total Principal Balance ($000’s)(1) Property Type 7.49%55.4%30.8%$ 313,054Office 4.90%53.5%29.8%303,178SFR & Apartments 8.84%59.9%2.2%22,065Hotel N/A0.0%0.0%-Land 6.31%43.3%62.8%$ 638,297Subtotal – Se
Slide 14: Debt Maturities, 2024
14 Debt Maturities, as of June 30, 2024(1) (1) Using principal balances as of June 30, 2024, and thus do not reflect the Series D bond expansion which closed in August 2024. Assumes all contractual extension options are exercised. The extension options are subject to terms and conditions outlined in
Slide 15: Gross Profit by Property & Sector
15 Gross Profit by Property & Sector (1) Gross profit is measured for properties only, and excludes the dividend income from equity securities. Annualized regular dividend income currently expected from the equity securities is zero. (2) Reflects the Company’s interest in the joint ventures that own
Slide 16: Portfolio Occupancy
16 Portfolio Occupancy (1) Leased occupancy reflects actual leases signed, including leases that may not have commenced, as of the periods shown above. (2) The Company owns a 74% and 55% interest, respectively, in the joint ventures that own 110 William Street and 353 Sacramento. Rentable June 30, 2
Slide 17: Assets Table, 2024
17 Assets Table, as of June 30, 2024 (1) Statement of Financial Position reflects these values for investment properties and investments in joint ventures, which are estimated fair values except for Q&C Hotel which is carried on a cost basis in accordance with International Financial Reporting Stand
Slide 18: Assets Table, 2024
18 Assets Table, as of June 30, 2024 (1) Statement of Financial Position reflects these values for investment properties and investments in joint ventures, which are estimated fair values except for Q&C Hotel which is carried on a cost basis in accordance with International Financial Reporting Stand
Slide 19: Assets Table, 2024 - Equity Securities
19 Assets Table, as of June 30, 2024 (1) Statement of Financial Position reflects these values for investment properties and investments in joint ventures, which are estimated fair values except for Q&C Hotel which is carried on a cost basis in accordance with International Financial Reporting Stand
Slide 20: Thank You
THANK YOU Office Multifamily Single Family Rentals Hotel Lands
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