Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — IPO Roadshow (August 2017)
26 slides from Creative Media's IPO roadshow presentation, Aug 14, 2017
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 Trust Corp
Slide 2: Important Disclosures: Forward-Looking Statements
IMPORTANT DISCLOSURES CMCT 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 sirictly to historical or current facts or they discuss the business and affairs of CIM Commercial Trust
Slide 3: CMCT – Investment Thesis
CMCT – Investment thesis Resources & Expertise of Premier Institutional Manager Class A and Creative Office Investments in Gateway Markets Same Store Growth Opportunity Attractive And Flexible Capital Structure Large scale platform with vertically-integrated team Proprietary “Qualified Community” me
Slide 4: CMCT – Investment Thesis
CMCT — INVESTMENT THESIS CMCT Large scale platform with vertically-integrated team Proprietary “Qualified Community” methodology Disciplined, relative-value investor with sightlines across all gateway U.S. urban markets Invested in high barrer-to-entry sub-markets where CIM Group anticipates outsize
Slide 5: CIM Group – Resources & Expertise of Premier Institutional Manager
Strategies Stabilized Equity Value-Add Equity Opportunistic Equity Debt CIM Group – Resources & Expertise of Premier Institutional Manager Established Established in 1994 as a partner for investors seeking to capitalize on U.S. urbanization Office Locations Headquartered in Los Angeles Investment of
Slide 6: CIM Group – Seasoned, Vertically-Integrated Team
CIM Group – Resources & Expertise of Premier Institutional Manager Seasoned, Vertically-Integrated Team Full-service investment manager Research, investment, acquisition and finance Development, leasing and asset management “Qualified Community” Methodology Sector-agnostic focus Market values that a
Slide 7: CIM Commercial Trust
CIM COMMERCIAL TRUST (NASDAQ: CMCT) 9
Slide 8: CMCT – Class A and Creative Office Portfolio in Gateway Markets
Cmct – Class A and Creative Office Portfolio IN GATEWAY MARKETS 10 CMCT Office CMCT Hotel As of June 30, 20171 Excludes 7083 Hollywood Boulevard, 370 L’Enfant Promenade, 47 E. 34th Street and 4200 Scotland Street which are held for sale at August 11, 2017. 3601 South Congress Avenue and Lindblade Me
Slide 9: CMCT – Class A and Creative Office Portfolio in Gateway Markets
cmct – Class A and Creative Office Portfolio in gateway markets 11 As of June 30, 2017 1 Represents gross monthly base rent, as of June 30, 2017, multiplied by twelve. The amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized ex
Slide 10: In-Place Office Rents, 2Q'17
cmct – Class A and Creative Office Portfolio in gateway markets 12 In-Place Office Rents, 2Q’171 Per Square foot. For CMCT, represents gross monthly base rent per square foot under leases commenced as of June 30, 2017, multiplied by twelve. This amount reflects total cash rent before abatements. Whe
Slide 11: CMCT – Attractive and Flexible Capital Structure
CURRENT CAPITAL STRUCTURE1 Cmct – Attractive And Flexible Capital Structure - Strong Returns 14 Based on fair value at June 30, 2017. Assumes the sales of assets held for sale at August 11, 2017 are consummated, any asset-level debt is repaid and proceeds are held as cash. Attractive And Flexible Ca
Slide 12: CMCT – Highly Focused on Value Creation and Total Return
Cmct – Highly focused on value creation And Total Return 15 2015-2016 Providing Liquidity to Shareholders Proceeds from asset sales ~$210 million Proceeds from CMBS refi ~$80 million Shares were repurchased in a privately negotiated transaction from a fund managed by an affiliate of CIM Group. Paid
Slide 13: CMCT – Highly Focused on Value Creation and Total Return
CMCT - HIGHLY FOCUSED ON VALUE CREATION AND TOTAL RETURN CMCT Active and opportunistic portfolio management to maximize returns to stockholders Date Liquidity > 6/2016 $210 million tender offer @ $21/share 9/2016 $80 million repurchase @ $22/share! = Proceeds from asset sales ~$210 million = Proceed
Slide 14: CMCT – Key Market: Lake Merritt & Oakland CBD
Cmct – Key market: lake Merritt & Oakland CBD 17 CMCT INVESTMENTS ASSET TYPE SQF5 Occupied %5 In-Place Rents5 1 Kaiser Plaza Office 532,778 93.4% $38.81 2101 Webster Street Office 473,156 98.9% $38.36 1901 Harrison Street Office 273,134 98.2% $36.29 1333 Broadway Office 240,051 92.9% $33.21 2100 Fra
Slide 15: CIM Group – Richard Ressler
CIM Group - Resources & Expertise of Premier Institutional Manager 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-f
Slide 16: CIM Group – David Thompson and Terry Wachsner
CIM Group- Resources & Expertise of Premier Institutional Manager 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 financ
Slide 17: CIM Group – Qualified Community Methodology
CIM GROUP - QUALIFIED COMMUNITY METHODOLOGY 20 Qualification Criteria Transitional Urban Districts Positive demographic trends Public support for investment Opportunities below intrinsic value Potential to invest a minimum of $100 million of opportunistic equity within five years Thriving Urban Area
Slide 18: CIM Group – U.S. Qualified Communities
CIM GROUP – U.S. QUALIFIED COMMUNITIES 21 Areas with Investment(s) Areas Approved for Investment(s) CIM Headquarters Investment Office CMCT Office Portfolio Concentrations
Slide 19: CMCT – Net Asset Value
CMCT - Net asset value 22 Estimated Net Asset Value1,2 Pro-forma 1H’17 NOI3 See “Net Asset Value” under “Important Disclosures” on page 28. As of June 30, 2017. See “Net Operating Income Reconciliation” on page 27. ($ in thousands, per share amount) (Unaudited) Investments in real estate - at fair v
Slide 20: CMCT – Consolidated Statements of Operations
CMCT - CONSOLIDATED STATEMENTS OF OPERATIONS 23 Note: EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method of computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to
Slide 21: CMCT – Funds from Operations
CMCT - funds from operations 24 We believe that FFO is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by security analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their resul
Slide 22: CMCT – Consolidated Balance Sheets
CMCT - CONSOLIDATED BALANCE SHEETS 25 June 30, 2017 December 31, 2016 ASSETS Investments in real estate, net $ 1,141,460 $ 1,606,942 Cash and cash equivalents 129,006 144,449 Restricted cash 26,706 32,160 Accounts receivable, net 15,511 13,086 Deferred rent receivable and charges, net 95,369 116,354
Slide 23: CMCT – Debt Summary
CMCT - Debt summary1,2 26 Excludes $23.0 million of secured borrowings-government guaranteed loans, which represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral. Excludes
Slide 24: Net Operating Income Reconciliation
Net operating income Reconciliation 27 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 exclud
Slide 25: Important Disclosures: Assets and Equity Under Management
Important Disclosures 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’s a
Slide 26: Important Disclosures: Assets and Equity Under Management
IMPORTANT DISCLOSURES Cc M Cc T Assets and Equity Under Management Assets Under Management ("AUM'"), or Gross AUM, represents ((@) 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-nvest ments, of ail