Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — KBS Strategic Opportunity REIT — Corporate Update (December 2017)
31 slides from Pacific Oak Strategic Opportunity Reit's corporate update, Dec 14, 2017
Slide 1: KBS Strategic Opportunity REIT Valuation and Portfolio Update
KBS Strategic Opportunity REIT Valuation and Portfolio Update December 14, 2017 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information contained herein should be read in conjunction with, and is qualified by, the information in the KBS Strategic Opportunity REIT, Inc. (“KBS Strategic Opportunity REIT”) Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securiti
Slide 3: Portfolio Overview
Total Acquisitions1: $1,548,731,000 Current Portfolio Cost Basis2: $1,602,202,000 26 Equity Assets 1 Debt Asset December 2017 Estimated Value of Portfolio3: $1,809,810,000 SOR Equity Raised4: $ 561,749,000 Portfolio Leverage5: 62% Percent Leased as of 9/30/176: 87% Occupancy at Acquisition6: 75% 1 R
Slide 4: Estimated value per share methodology
Estimated value per share2 calculated using information as of September 30, 2017 • Net asset value; no enterprise (portfolio) premium or discount applied • Considered potential participation fee that would be due to the advisor in a hypothetical liquidation if the required shareholder return thres
Slide 5: Valuation: Estimated Value of Portfolio
1 Based on data as of September 30, 2017, with the exception of an adjustment to the company’s net asset value to give effect to the October 2017 self-tender. 2 Based on data as of September 30, 2016 3 Includes cash and cash equivalents, restricted cash, rents and other receivables, deposits, prepai
Slide 6: Valuation
Valuation1 On December 7, 2017, KBS Strategic Opportunity REIT’s Board approved an estimated value per share as follows:1 6 1 Based on the estimated value of KBS Strategic Opportunity REIT’s assets less the estimated value of its liabilities, divided by the number of shares outstanding, all as of Se
Slide 7: Special Dividend
Special Dividend 7 The special dividend is being made primarily as a consequence of the REIT’s sale on November 8, 2017, of 11 of its properties to a newly formed Singapore real estate investment trust (the “SREIT”). As a result of the taxable income generated from this sale, the REIT must make a sp
Slide 8: Special Dividend
Special Dividend 8 1 Assumes the shareholder receives 20% of the special dividend in cash and 80% in stock. If a significant number of investors elect al l stock, a cash electing investor may receive more than 20% of the special dividend in cash. 2 Equal to 0.2509 shares received in the special stoc
Slide 9: Series A Debentures
Series A Debentures 9 The REIT’s Series A Debentures (the “bonds”) are publicly traded on the Tel-Aviv Stock Exchange. Beginning in early 2017, the bonds have been trading at a premium to their face value. The bonds were trading at approximately 105.2% of face value as of September 30, 2017 vs. 96.6
Slide 10: Valuation History
Valuation History 1 This represents the maximum per share offering price at which shares of KBS Strategic Opportunity REIT’s common stock were sold in the primary portion of its initial public offering. The per share offering price was determined arbitrarily and does not represent a valuation of KBS
Slide 11: Singapore IPO
Singapore IPO 11 • On November 8, 2017, the Company sold 11 properties to a newly formed Singapore REIT (referred to as SREIT) for $804 million before sales credits and costs • SREIT was listed on the Singapore Stock Exchange • SOR repaid $401.7 million of outstanding debt secured by the sold proper
Slide 12: SREIT Portfolio Occupancy History
SREIT Portfolio Occupancy History 12 Sep-17 Sep-16 Change in % Change in % Acquisition Leased Leased Occupancy Occupancy Property Name City, State Occupancy Occupancy Occupancy vs. 9/30/16 vs. Acquisition Iron Point Business Park Sacramento, CA 38.0% 99.5% 97.0% 2.5% 61.5% Maitland Promenade II Orla
Slide 13: William Street
110 William Street Property Type: Class B Office Market: New York Submarket: Downtown Manhattan Asset Description: Acquisition Date: May 2, 2014 Total Square Footage: 928,157 SF Purchase Price: $261,100,000 Total JV Interest: 60% Increase in Appraised Value from Dec. 2016 to Dec. 2017: $45,600,000 D
Slide 14: Timeline of Recent Events
Timeline of Recent Events 1. March 2016: Raised capital for portfolio growth. Successfully issued $250 million of AA-rated Israeli bonds (10-K filed 3/28/2016) 2. Nov. 2016: Filed preliminary S-11 for NAV REIT conversion (Filed 11/28/2016) 3. 2016-2017: Purchased over $400 million of new growth asse
Slide 15: Sept. 2017 Self-Tender Offer
Sept. 2017 Self-Tender Offer • Self-tender offer was originally for up to 3,553,660 shares of the Company’s outstanding common stock, or approximately $50 million • Due to demand, additional funds were made available and the final self-tender amount was approximately $66 million excluding fees and e
Slide 16: Redemption Liquidity Provided
Redemption Liquidity Provided 16 1 Excludes share redemption requests that were unredeemed as of the tender offer date as those shareholders were able to submit their request in the tender offer process. Includes the full $80 million of tender offer requests received and the $66 million fulfilled. 2
Slide 17: Dispositions
50 Congress, Boston, MA Acquisition Date: July 11, 2013 Acquisition Price: $51,000,000 Size: 179,872 SF Total Investment1: $55,800,000 Sale Date: May 15, 2017 Sale Price: $78,785,000 Equity Proceeds2 $47,420,000 Equity Basis3: $23,802,000 Profit / Equity Multiple: $23,618,000 2.0X Dispositions 1 Tot
Slide 18: Recent Acquisition: 125 E. John Carpenter
An 18-story and a six-story office tower located in a “live, work, play” environment in the Las Colinas submarket of Irving, Texas. Onsite amenities include a fitness center, conference center, deli and tenant lounge. 125 E. John Carpenter Acquisition date Purchase price September 15, 2017 $83.4
Slide 19: Recent Acquisition: Crown Pointe
Current amenities include a fitness center, business center, on-site café and a courtyard featuring landscaped gardens, granite waterfall features and shaded seating areas Located in Atlanta’s Central Perimeter submarket, home to numerous corporate headquarters, affluent residential communities
Slide 20: Estimated Value Changes Since Inception
Estimated Value Changes Since Inception 20 1 Amount is comprised of the December 2017 NAV per share of $11.50 plus the December 2017 special dividend of $3.61 per share.
Slide 21: Estimated Value Changes Since Inception
Estimated Value Changes Since Inception 21 1 Amount is comprised of the December 2017 NAV per share of $11.50 plus the December 2017 special dividend of $3.61 per share.
Slide 22: Estimated Value Changes Since Inception
Estimated Value Changes Since Inception 22 1 The Total Return of Early Investor assumes all distributions received per share since inception and no share redemptions or dividend reinvestments for a hypothetical investor who invested at escrow break on April 19, 2010. 2 Amount is comprised of the Dec
Slide 23: Portfolio Occupancy
23 Portfolio Occupancy 1 Reflects weighted-average lease percentage as of the acquisition date for all real estate owned as of September 30, 2017. 2 Includes future leases that had been executed, but not yet commenced as of September 30, 2017. 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00%
Slide 24: Portfolio Occupancy
24 Portfolio Occupancy1 1 Excludes the properties sold to the S-REIT on November 8, 2017, and includes future leases that had been executed but not yet commenced as of September 30, 2016, and September 30, 2017, as applicable. Sep-17 Sep-16 Change in % Change in % Acquisition Leased Leased Occupancy
Slide 25: Stockholder Performance
Stockholder Performance KBS Strategic Opportunity REIT is providing this estimated value per share to assist broker dealers that participated in its initial public offering in meeting their customer account statement reporting obligations. As with any valuation methodology, the methodologies used ar
Slide 26: Distribution History
Distribution History1 1 Based on all distributions paid as of December 7, 2017. 2 Annualized rate based on the $10.00 per share initial public offering price and is not based on the current or historical estimated values per share. 26 Record Date Payment Date Amount/Share Reason 12/23/2011 12/28/201
Slide 27: Stockholder Performance: First and Last Investors
Stockholder Performance Hypothetical Performance of First and Last Investors Assumes all distributions have been taken in cash and stockholder has held shares since the dates below1 1 Does not reflect the hypothetical performance of investment by stockholders that participated in the dividend reinve
Slide 28: Stockholder Performance: Early and Late Investors
$0.44 $0.62 $0.98 $1.36 $1.73 $11.27 $12.24 $13.44 $14.81 $15.11 (1) $10.00 $11.71 $12.86 $14.42 $16.17 $16.84 Offering price Mar-2014 Dec-14 Dec-15 Dec-16 Dec-17 Breakdown of Late Cash Investor Value Estimated Value Per Share Cumulative Distributions $1.14 $1.32 $1.68 $2.06 $2.43 $11.27 $12.24 $13.
Slide 29: 2018 Goals & Objectives
Conversion to Daily NAV REIT Proxy Campaign/Annual Meeting of Stockholders Potential Enhanced Liquidity Additional Acquisitions 29 2018 Goals & Objectives
Slide 30: Shareholder Communication
Shareholder Communication Statements will reflect a value of $15.11 beginning with December 2017 statements, which is comprised of the December 2017 NAV per share of $11.50 plus the December 2017 special dividend of $3.61 per share. Once the special dividend is made in January 2018, the statements
Slide 31: Thank you
For more information, please contact your financial advisor or KBS Capital Markets Group at (866) 527-4264. KBS Capital Markets Group Member FINRA & SIPC 800 Newport Center Drive, Suite 700 Newport Beach, CA 92660 www.kbs-cmg.com Thank you! 31
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