Creative Media · NASDAQ:CMCT
Creative Media — CIM Commercial Trust — IPO Roadshow (May 2018)
31 slides from Creative Media's IPO roadshow presentation, May 10, 2018
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 (“CMCT”, “
Slide 2: Important Disclosures: Forward-Looking Statements
IMPORTANT DISCLOSURES, C MCT FORWARD-LOOKING STATEMENTS The information set forth herein contsins “forworcJooking salements." You can identity these statements by the fact thot they do not relate sticty fo hishvical or curent foc or hey discuss the business ond offers of CIM Commercial ("CMCT" “CIM
Slide 3: Total Return Since Merger
Total Return Since Merger1 5 CMCT 2 U.S. Office REITs 3 Total return includes changes in stock price or NAV, as applicable, and includes all dividends declared and paid with respect to the Company’s common stock. Please see “Net Asset Value” under “Important Disclosures” with respect to the methodol
Slide 4: CMCT – Key Performance Indicators
CMCT – Key Performance Indicators1,2 6 Office Hotel Metrics exclude the lending segment and any assets sold prior to March 31, 2018. 9460 Wilshire Boulevard was acquired in January 2018 and is included in Q1 2018 metrics. 1130 Howard Street was acquired in December 2017 and is included in 2017 metri
Slide 5: CMCT – Net Asset Value and Pro-forma Cash NOI
CMCT – NET ASSET VALUE and pro-forma Cash noi 7 ESTIMATED NET ASSET VALUE1 PRO-FORMA CASH NOI3 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 oth
Slide 6: CMCT – Net Asset Value and Pro-forma Cash NOI
CMCT — NET ASSET VALUE AND PRO-FORMA CASH NOI in thoviands, except for shares and per share amounts {unaudited Investments inreal estate - at fat valve 8 1.676.482 Loans receivable - a for valve 358 Debt * (0,695) Cosh ond other assets net of other Sabie: 15.644 NNoncontroling interests (0.085) Rede
Slide 7: CIM Overview
CIM OVERVIEW 9 See “Assets Owned and Operated” under “Important Disclosures” on page 32. CIM OVERVIEW STABILIZED EQUITY OPPORTUNISTIC EQUITY DEBT VALUE-ADD EQUITY NET-LEASE DEBT Community Focused Urban Real Assets Strategy INFRASTRUCTURE & REAL ESTATE National Credit Strategy REAL ESTATE CIM GROUP $
Slide 8: CIM Summary
CIM SUMMARY 10 Established Established in 1994 as an integrated owner and operator of real assets Vertically- Integrated Multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing and asset management capabilities Organization 835+ employees (15 p
Slide 9: CIM Competitive Advantages
CIM COMPETITIVE ADVANTAGES 1. Team Led by 15 principals (including the three original founders) with average CIM tenure of 15 years Vertically-integrated in-house team, including 470+ professionals1, responsible for entire life cycle of each asset Expertise across research, acquisition, credit analy
Slide 10: CIM Competitive Advantages
CIM COMPETITIVE ADVANTAGES C | M M OVERVIEW Led by 15 principals (including the three original founders) with average CIM tenure of 15 years Vertically-integrated in-house team, including 470+ professionals', responsible for entire life cycle of each asset Expertise across research, acquisition, cre
Slide 11: CIM Commercial Trust
Cim commercial trust 13 CIM COMMERCIAL (NASDAQ: CMCT) (TASE: CMCT) Primarily focuses on Class A and creative office assets in vibrant and improving urban communities Share Price / Market Cap1 $12.65 / $0.55 billion NAV per Share / NAV2 $23.96 / $1.05 billion Institutional shareholder base Premier Po
Slide 12: Class A and Creative Office Portfolio in Gateway Cities
CLASS a AND CREATIVE OFFICE PORTFOLIO IN GATEWAY CITIES 14 Oakland & San Francisco Los Angeles Washington, DC Austin Total Office3 Hotel3 (Sacramento) # of Properties1 7 5 3 1 16 1 SF/Keys 1,842k 520k 878k 184k 3,424k 503 Occupancy 94.4% 97.5% 90.7% 93.4% 93.9% 82.6% Annualized Rent per Occupied SF/
Slide 13: Class A and Creative Office Portfolio in Gateway Markets
Class A and Creative Office Portfolio in gateway markets 15 As of March 31, 20181 Represents gross monthly base rent, as of March 31, 2018, multiplied by twelve. The amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense
Slide 14: Same-Store Growth Prospects
Same-store growth prospects 16 Class A & Creative Office Office assets in vibrant and improving urban communities Targeting same-store NOI CAGR of 4% - 6% through 20221,2 Additional 1%-2% CAGR potential from development of already owned sites. Based on cash and segment NOI. See “CMCT – Net Asset Val
Slide 15: Return Focused / Attractive Capital Structure
CURRENT CAPITAL STRUCTURE2,3 Return Focused / Attractive Capital Structure 17 Includes core & core-plus acquisitions and development potential on sites already owned. Based on fair value. As of March 31, 2018. Attractive And Flexible Capital Structure1 Target capital structure of 45% common equity,
Slide 16: Providing Liquidity to Shareholders
Return Focused / Attractive Capital Structure 18 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 privately negotiated transactions from Urban II. In connection with the
Slide 17: Return Focused / Attractive Capital Structure
RETURN FOCUSED / ATTRACTIVE CAPITAL STRUCTURE CMC T Active and opportunistic portfolio management to maximize returns to shareholders = Gross asset sales of ~$1,197 milion (~$1.114 million of net proceeds) (2015-2017) so + Net proceeds from debt activity of ~$70 million (2016 & 2017)? + $163 million
Slide 18: Community Focused Strategy – CIM Qualified Communities
20 1 As of March 31, 2018. Note that multiple communities may be qualified within a larger city. COMMUNITY FOCUSED STRATEGY – CIM QUALIFIED COMMUNITIES1 QUALIFICATION CRITERIA Transitional Urban Districts Improving demographics Broad public support for CIM’s approach Evidence of private funding from
Slide 19: Resources & Expertise – Co-Founders
Resources & Expertise of institutional owner operator – Co-Founders 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-Founder and a P
Slide 20: Resources & Expertise – Management
Resources & Expertise of institutional owner operator – 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 finan
Slide 21: Key CMCT Submarket: Lake Merritt & Oakland CBD
KEY CMCT SUBMARKET: LAKE MERRITT & OAKLAND CBD CMCT In-Place Rents1,2 $40.70 Class A Asking Rents3 $53.88 FAVORABLE OFFICE DYNAMICS Relative Value vs. San Francisco CBD (Class A asking rents): 3 – San Francisco - $75.38 – Lake Merritt - $53.88 Limited New Office Supply in Lake Merritt / Oakland CBD:
Slide 22: CMCT – Recent Acquisitions
Cmct – Recent acquisitions BEVERLY HILLS 24 SOMA (SAN FRANCISCO) Location Attributes SoMa District of San Francisco, CA Located in vibrant neighborhood that CIM believes is the preferred location for many technology firms 100% leased with weighted average term of ~6 years1 Former concrete warehouse
Slide 23: Debt and Preferred Stock Summary
DEBT AND PREFERRED STOCK SUMMARY1 Interest structure (fixed / Maturity / Mortgages Interest Rate 03/31/2018 Amortization 2101 Webster Street Fixed 4.14% 07/01/2026 83,000 I /O 1901 Harrison Street Fixed 4.14% 07/01/2026 42,500 I /O 260 Tow nsend Street Fixed 4.14% 07/01/2026 28,200 I /O Total 4.18%
Slide 24: CMCT Office Portfolio – Top Tenants
Cmct Office portfolio – Top 10 Tenants 26 Represents gross monthly based rents, as of March 31, 2018, multiplied by twelve. This amount reflects total cash rents before abatements. Where applicable, annualized rents have been grossed up by adding annualized expense reimbursement to base rent. Annual
Slide 25: Positive Leasing Trends / Manageable Lease Expirations
Positive leasing trends / Manageable lease expirations1 27 For all periods presented, leasing activity for the assets sold prior to March 31, 2018 is excluded. Based on the number of tenants having leases with terms longer than twelve months. Recurring metrics excludes space that was vacant for more
Slide 26: Reconciliations/Important Disclosures
28 RECONCILIATIONS/IMPORTANT DISCLOSURES
Slide 27: Net Operating Income Reconciliations (1/3)
Net operating income ReconciliationS (1/3) 29 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 28: Net Operating Income Reconciliations (2/3)
Net operating income Reconciliations (2/3) 30 Office Multifamily Hotel Lending Total Cash NOI 102,918 $ 5,810 $ 13,446 $ 5,293 $ 127,467 $ Deferred rent and amortization of intangible assets, liabilities and lease inducements 2,255 (86) 3 - 2,172 Straight line rent, below-market ground lease and amo
Slide 29: Net Operating Income Reconciliations (3/3)
Net operating income Reconciliations (3/3) 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 30: Important Disclosures
IMPORTANT DISCLOSURES 32 Assets Owned and Operated Assets Owned and Operated includes total gross assets at fair value, with real assets presented on the basis described in the Book Value disclosure and operating companies presented at gross assets less debt, as of the Report Date (including the sha
Slide 31: Important Disclosures
IMPORTANT DISCLOSURES C MCT ‘Ausalz Owned and Operated ‘Assets Owned and Operated includes total gross assets ot for valve, with reol assets presented on the bosis described inthe Book Value disclosure and operating companies [resented of gross sses les deb. as ofthe Report Date including the shares