Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — Investor Presentation (December 2019)
36 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Dec 19, 2019
Slide 1: Matching Capital with Opportunity: Valuation and Portfolio Update
Exhibit 99.3 DECEMBER 19, 2019 MATCHING CAPITAL WITH OPPORTUNITY PACIFIC OAK STRATEGIC OPPORTUNITY REIT Valuation and Portfolio Update
Slide 2: Forward-Looking Statements Important Disclosures
FORWARD-LOOKING STATEMENTS IMPORTANT DISCLOSURES - The information contained herein should be read in conjunction with, and is qualified by, the information in the Pacific Oak Strategic Opportunity REIT I, Inc. (“Pacific Oak Strategic Opportunity REIT” or the “Company”) Annual Report on Form 10-K fo
Slide 3: Our Sponsor: Pacific Oak Capital
OUR SPONSOR: PACIFIC OAK CAPITAL 3
Slide 4: Executive Management and Team Structure
A. Executive Management: C. Finance/Underwriting Keith Hall Jack Hall Partner: CEO SOR Vice President Finance Portfolio Finance Operations Peter McMillan Partner: Chairman SOR Team of 2 Ben Aitkenhead C Head of Private Placements Brian Ragsdale B Executive VP, Transaction Management A Team of 2 B. S
Slide 5: Investment Types by Value
Investment Types By value in December 2019 NAV Total Acquisitions/Originations 1………………...………………………$2,035,807,000 Current Portfolio Cost Basis2………….…….……….…………………..$1,201,316,000 December 2019 Estimated Value of Portfolio3………………….$1,329,412,000 Equity Raised in Primary Offering4…….………….……………………..$561
Slide 6: Pacific Oak SOR Dec. 2019 Valuation
PACIFIC OAK SOR DEC. 2019 VALUATION 6
Slide 7: Valuation
VALUATION1 • Estimated value per share2 calculated using information as of September 30, 2019, with the exception of (i) real estate which was valued as of October 31, 2019, (ii) an adjustment to reduce cash for the amount of real estate capital expenditures incurred in October 2019, (iii) an adjust
Slide 8: Valuation: Assets and Liabilities
VALUATION1 As of December 20191 As of November 20182 Assets: $1.462 Billion $1.508 Billion Real Estate (i) $1.045 Billion (71%) $1.116 Million (74%) Investments in Unconsolidated JVs (i) $219.2 Million (15%) $195.9 Million (13%) Investments in Real Estate Debt & Equity Securities (i) $79.1 Million (
Slide 9: Valuation: Change in Estimated Value per Share
VALUATION1 On December 17, 2019, the Company’s Board approved an estimated value per share of $10.63. The following summarizes the change in estimated value per share from December 2018 to December 2019: December 2018 estimated share value $ 9.91 Investments Real estate held 1.16 Real estate sold 0.
Slide 10: Dispositions: Westpark Portfolio and 125 John Carpenter
DISPOSITIONS WESTPARK PORTFOLIO 1 Sale Price $166.4 Million Sale Date November 30, 2018 Acquisition Date May 10, 2016 Acquisition Price $125.8 Million 2 Total Investment $144.7 Million Profit $21.8 Million Equity Multiple 1.4X 125 JOHN CARPENTER 1 Sale Price $99.8 Million Sale Date November 1, 2019
Slide 11: Dispositions: Burbank Collection and Bedford
DISPOSITIONS BURBANK COLLECTION (JV) 1 Sale Price $25.9 Million Sale Date July 19, 2019 Acquisition Date December 12, 2012 Acquisition Price $12.8 Million 2 Total Investment $18.8 Million Profit $7.1 Million Equity Multiple 1.9X BEDFORD (JV) 1 Sale Price $43.8 Million Sale Date January 11, 2019 Acqu
Slide 12: Dispositions History
DISPOSITIONS HISTORY Following is a summary of the Company’s real estate dispositions from inception to November 30, 2019: 1 Equals the sale price, net of seller concessions, without adjustment for joint venture partners’ share of consolidated joint ventures. Excludes selling costs and fees. 2 Equal
Slide 13: Recent Acquisitions: Georgia Center
RECENT ACQUISITIONS GEORGIA 400 CENTER Purchase Date May 23, 2019 Purchase Price $89.1 Million Location Alpharetta, GA Property Type Class A Office Buildings/Size 3 Buildings / 419,567 SF Year Built 1998-2001 Occupancy at acquisition 85% Occupancy at 9/30/19 86% ADDITIONAL INFORMATION • The Property
Slide 14: Other Highlights – Reven Acquisition
OTHER HIGHLIGHTS – REVEN ACQUISITION NOV. 4, 2019 REVEN HOUSING REIT WAS PUBLICLY TRADED (NASDAQ: RVEN) AND A LEADING OWNER AND OPERATOR OF AFFORDABLE SINGLE- FAMILY RENTALS (“SFR”) ACROSS THE SOUTHEASTERN UNITED STATES. AT ACQUISITION CLOSING, REVEN CHANGED ITS NAME TO PACIFIC OAK RESIDENTIAL TRUST
Slide 15: Stockholder Performance
STOCKHOLDER PERFORMANCE The Company 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 are based upon a numb
Slide 16: Stockholder Performance: First and Last Investors
STOCKHOLDER PERFORMANCE Hypothetical Performance of First and Last Investors $10.00 Offering Price Value Breakdown for First Cash Investor Value Breakdown for Last Cash Investor (at Escrow Break April 19, 2010) (at Offering Close Nov. 14, 2012) $20.49 $19.79 $19.30 $18.60 $17.54 $16.84 $16.87 $16.17
Slide 17: Stockholder Performance Illustration
STOCKHOLDER PERFORMANCE ILLUSTRATION Since special dividends were declared on December 7, 2017 and November 12, 2018, a comparison of the estimated value per share over time is no longer a fair reflection of stockholder performance. The following illustration shows the performance of the first cash
Slide 18: Value Add Opportunities Continue for SOR
VALUE ADD OPPORTUNITES CONTINUE FOR SOR 18
Slide 19: Key growth markets: employment growth 2014-2018
SOR’s key growth markets outperformed national average over the last 5 years Employment Growth Average(1) 2014-2018 Key Growth Markets Gateway Cities 4.0% 3.6% 3.0% 2.9% 3.0% 2.8% 2.8% 2.8% 2.9% 1.9% 1.7% 1.6% 1.7% 1.8% 1.4% 1.3% Atlanta Austin Dallas Denver Houston Orlando Sacramento Seattle Bo sto
Slide 20: Key growth markets: population growth 2014-2018
SOR’s key growth markets outgrew national average over the last 5 years Population Growth Average(1) 2014-2018 Key Growth Markets Gateway Cities 2.9% 2.5% 2.0% 2.0% 1.8% 2.0% 1.7% 1.5% 1.2% 1.0% 0.9% 0.7% 0.7% 0.5% 0.3% 0.1% -0.1% Atlanta Austin Dallas Denver Houston Orlando Sacramento Seattle Bo st
Slide 21: Forecast real GDP growth 2018-2022
SOR’s key growth markets are forecasted to outperform national average Real GDP Growth Average Forecast(1) 4.0% 2018-2022F Key Growth Markets Gateway Cities 3.5% 3.5% 3.1% 3.1% 3.0% 2.9% 3.0% 3.0% 2.7% 2.6% 2.5% 2.2% 2.0% 2.2% 2.1% 2.0% 1.8% 1.5% 1.0% 0.0% Atlanta Austin Dallas Denver Houston Orland
Slide 22: Forecast employment growth 2018-2022
SOR’s key growth markets are forecasted to outperform national average Employment Growth Average Forecast(1) 3.0% Key Growth Markets 2018-2022F Gateway Cities 2.6% 2.3% 2.0% 2.0% 2.0% 1.9% 1.7% 1.6% 1.5% 1.5% 1.4% 1.2% 0.9% 0.9% 1.0% 1.0% 0.7% 0.7% 0.7% 0.0% Atlanta Austin Dallas Denver Houston Orla
Slide 23: Richardson Portfolio
RICHARDSON PORTFOLIO 23
Slide 24: Palisades Development
PALISADES DEVELOPMENT 24
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Slide 29: Palisades Development: Phase Completion
PALISADES DEVELOPMENT: PHASE 4 COMPLETION 29
Slide 30: Class A Submarket Rents Up Almost 34% Since 2011
Cc LASS A SUBMARKET RENTS UP ALMOST 34% SINCE 2011 ACQUISITION N COLLINS BLvD Re ot LRESIDENTIAL-5 STORIES 2 RESIDENTIAL 8 STORIES 3. RESIDENTIAL-4 STORIES OVER RETAIL 8 4.LIVE/WORK- 4STORIES A S.OFFICE-1 STORY 7 t 6 OFFICE-4 STORIES Bs ~ 4s 7.OFFICE -6 STORIES Z } of & OFFICE-8 STORIES Oo 9. OFFICE
Slide 31: December 16, 2019 Palisades Development
31 December 16, 2019 Palisades Development
Slide 32: Dec 2019 – Current Holdings: Richardson Office Portfolio
DEC 2019 – CURRENT HOLDINGS Richardson Office Portfolio Office: 569,980 RSF Palisades I: 180,778 RSF Palisades II: 244,297 RSF Greenway I: 50,107 RSF Greenway III: 91,690 RSF Developable Land: 25.4 Acres Occupancy: 79.1% Palisades I: 82.5% Palisades II: 88.3% Greenway I: 41.0% Greenway III: 69.4% In
Slide 33: Tule Springs
TULE SPRINGS 33
Slide 34: Net Sales Analysis
NET SALES ANALYSIS Phase 1 Phase 2 Phase 3 Phase 4 Total Acreage 104.6 88.6 1914 113.4 Gross Sales Price/Acre $420,000 $420,000 $420,000 $420,000 WITHOUT SID TOTAL Total infrastructure $24,410,889 $15,031,690 $10,906,789 «$13,136,891 $63,486,259 Total infrastructure/Acre $233,374 $169,658 $57,074 $1
Slide 35: 2020 Goals & Objectives
2020 GOALS & OBJECTIVES Convert to NAV REIT under Pacific Oak rebranding. Evaluate a potential merger with Pacific Oak Strategic Opportunity REIT II, Inc. Sell stabilized assets and reinvest capital for perpetual NAV REIT 35
Slide 36: Thank You!
THANK YOU! For more information, please contact your financial advisor or Pacific Oak Capital Markets Group at (866) 722-6257. 1 - 866- PAC- OAK7 INFO@PACIFICOAKCAPITAL.COM PACIFICOAKCAPITAL.COM (1-866-722-6257) 11150 Santa Monica Blvd,Suite 400 Los Angeles, CA 90025 FOLLOW US ON LINKEDIN 36
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