Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — IPO Roadshow (August 2018)
32 slides from Creative Media's IPO roadshow presentation, Aug 9, 2018
Slide 1: Important Disclosures
Important Disclosures
Slide 2: Performance Since Launch of CMCT
Performance Since Launch of CMCT 3 Return based on cumulative regular and special dividends since March 31, 2014, divided by initial net asset value (“NAV”), from March 31, 2014 to June 30, 2018. Please see “Net Asset Value” under “Important Disclosures” with respect to the methodology of the calcul
Slide 3: Performance Since Launch of CMCT
Performance Since Launch of CMCT 4 Total return includes changes in stock price or net asset value (“NAV”) per share, as applicable, and includes all dividends declared and paid with respect to the Company’s common stock from March 31, 2014 to June 30, 2018. Please see “Net Asset Value” under “Impor
Slide 4: CMCT — Key Performance Indicators
CMCT — Key Performance Indicators1,2 5 Metrics exclude the lending segment and any assets sold prior to June 30, 2018. 9460 Wilshire Boulevard was acquired in January 2018 and is included in Q2 2018 metrics. 1130 Howard Street was acquired in December 2017 and is included in 2017 metrics. The annual
Slide 5: CMCT — Net Asset Value and Pro-Forma Cash NOI
CMCT — Net Asset Value and Pro-Forma Cash NOI 6 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 other liabilities. See “Net Operating Income Recon
Slide 6: CMCT — Net Asset Value and Pro-Forma Cash NOI
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Slide 7: CIM Strategies
CIM Strategies 8 Urban Real Assets Infrastructure & Real Estate Stabilized Equity Opportunistic Equity Debt Value-add Equity CIM Commercial Trust Publicly Listed REIT NASDAQ: CMCT TASE: CMCT Predecessor formed in 2005 Net-lease Debt National Credit Real Estate Community Focused Strategies
Slide 8: CIM Summary
CIM Summary Established Established in 1994 as an integrated owner and operator of real assets Strategies Community-focused urban real assets (real estate and infrastructure) in communities qualified by CIM and national credit (net-lease and debt) platforms Vertically-Integrated Multi-disciplinary e
Slide 9: CIM Competitive Advantages
Diverse Team of In-House Professionals Commitment to Community Disciplined Approach CIM Competitive Advantages 10 Led by 15 principals (including the three original founders) with average CIM tenure of 15 years Vertically-integrated, real asset owner and operator with expertise across in-house resea
Slide 10: Community Focused Strategy – CIM Qualified Communities
Community Focused Strategy – CIM Qualified Communities 11 CIM qualifies communities for acquisition (114 qualified to date, 68 with deployed capital). CIM Qualified Communities exhibit strong growth trends, which CIM believes will lead to outsized rent growth and/or capital appreciation.1 Since init
Slide 11: Community Focused Strategy - CIM Qualified Communities
Community Focused Strategy - CIM Qualified Communities CMCT CIM qualifies communities for acquisition (114 qualified to date, 68 with deployed capital). CIM Qualified Communities exhibit strong growth trends, which CIM believes will lead to outsized rent growth and/or capital appreciation." » Since
Slide 12: CIM Commercial Trust
CIM Commercial Trust 13 As of June 29, 2018. As of December 31, 2017. NAV includes the lending segment. See “CMCT – Net Asset Value and Pro-Forma Cash NOI” on page 6 for calculation of estimated NAV and “Net Asset Value” under “Important Disclosures” on page 32. Represents the percentage of CMCT’s o
Slide 13: Class A and Creative Office Portfolio in Gateway Markets
Class A and Creative Office Portfolio in Gateway Markets 14 As of June 30, 2018 Represents gross monthly base rent, as of June 30, 2018, multiplied by twelve. The amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense rei
Slide 14: Strong Same-Store Growth Prospects
Strong Same-Store Growth Prospects Class A & Creative Office Office assets in vibrant and improving urban communities Targeting same-store NOI CAGR of 4% - 6% through 20221,2 15 Illustrative NAV + Common Share Dividends (Same-Store NOI CAGR of 4%-6%)3 Five Year Growth Target Additional 1%-2% CAGR po
Slide 15: Maximizing Returns for Shareholders: Attractive and Flexible Capital Structure
Maximizing Returns for Shareholders Attractive and Flexible Capital Structure Target capital structure of 45% common equity, 25% preferred equity and 30% debt seeks to enhance common equity returns with low relative risk Each portion of the capital stack provides superior risk adjusted returns 16 Ba
Slide 16: Maximizing Returns for Shareholders: Active Portfolio Management
Maximizing Returns for Shareholders Active and strategic portfolio management to maximize returns to shareholders 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 pri
Slide 17: Maximizing Returns for Shareholders
Maximizing Returns for Shareholders CMCT » Active and strategic portfolio management to maximize retums to shareholders Active Portfolio Management » Gross assetsales of~ $1,197 milion ($1,114 milion ofnetproceeds) (2015-2017) » Netproceeds from debtactity of~ $70 milion (20188 20177 > $152milion of
Slide 18: Community Focused Urban Real Assets Strategy
Community Focused Urban Real Assets Strategy1 Since 1994, CIM has qualified 114 communities in high barrier-to-entry markets and has owned and operated assets in 68 of those communities1. The qualification process generally takes between six months and five years and is a critical component of CIM’s
Slide 19: Resources & Expertise of Institutional Owner Operator: CIM Group Co-Founders
Resources & Expertise of Institutional Owner Operator CIM Group Co-Founders 20 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-Foun
Slide 20: Resources & Expertise of Institutional Owner Operator: CMCT Management
Resources & Expertise of Institutional Owner Operator CMCT Management 21 Charles Garner CMCT Chief Executive Officer, CIM Group Principal CEO of CMCT and serves on CIM Group’s Investment Committee Prior to joining CIM Group, worked closely with the firm in various capacities since 1996, including or
Slide 21: Key CMCT Submarket: Lake Merritt & City Center
Key CMCT Submarket: Lake Merritt & City Center 22 Favorable Office Dynamics Relative Value vs. San Francisco CBD (Class A asking rents): 3 San Francisco - $68.03 Oakland - $49.45 Limited New Office Supply in Lake Merritt / City Center: Last major office project completed in 20083 Proposition M: San
Slide 22: Recent CMCT Transactions
Recent CMCT Transactions 23 The examples below have been selected to generally illustrate CIM’s philosophy and may not be representative of future acquisitions. 1130 Howard Street 9460 Wilshire Boulevard Location Acquisition Date SoMa District of San Francisco, CA December 2017 Location Acquisition
Slide 23: Debt and Preferred Stock Summary
Debt and Preferred Stock Summary1 24 Excludes: (a) $19,962,000 of secured borrowings – government guaranteed loans, which represent sold loans that are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Colla
Slide 24: CMCT Office Portfolio: Top Tenants
CMCT Office Portfolio: Top 10 Tenants 25 Represents gross monthly based rents, as of June 30, 2018, multiplied by twelve. This amount reflects total cash rents before abatements. Where applicable, annualized rents have been grossed up by adding annualized expense reimbursements to base rent. Annuali
Slide 25: 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 June 30, 2018 is excluded. Based on the number of tenants having leases with terms longer than twelve months. Recurring metrics exclude space that was vacant for more t
Slide 26: Reconciliations and Important Disclosures
Reconciliations and Important Disclosures
Slide 27: Net Operating Income Reconciliations (1/4)
Net Operating Income Reconciliations (1/4) 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 exc
Slide 28: Net Operating Income Reconciliations (2/4)
Net Operating Income Reconciliations (2/4) 29 Office Multifamily Hotel Lending Total Cash NOI 43,603 $ - $ 8,051 $ 3,098 $ 54,752 $ Deferred rent and amortization of intangible assets, liabilities and lease inducements 2,808 - (1) 2,807 Straight line rent, below-market ground lease and amortization
Slide 29: Net Operating Income Reconciliations (3/4)
Net Operating Income Reconciliations (3/4) 30 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 30: Net Operating Income Reconciliations (4/4)
Net Operating Income Reconciliations (4/4) 31 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 31: Important Disclosures
Important Disclosures 32 Assets Owned and Operated Assets Owned and Operated (AOO) represents the aggregate assets owned and operated by CIM on behalf of partners (including where CIM contributes alongside for its own account) and co-investors, whether or not CIM has discretion, in each case without
Slide 32: Important Disclosures
Important Disclosures CMCT ‘Assets Owned and Operated ‘Assets Owned and Operated (AOO) representsthe aggregate assets ounes and operated by Cll on behalf ofgarners (icing where Cl contrbutesalongsie fort ‘wnaccount)andco-nvestor, whether oro CM has dscreton,ineach case without ‘supicaton. AOO incude