Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — KBS Strategic Opportunity REIT — Investor Presentation (December 2015)
25 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Dec 10, 2015
Slide 1: Valuation and Portfolio Update
KBS Strategic Opportunity REIT Valuation and Portfolio Update December 10, 2015 Exhibit 99.3
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, 2014, filed with the Securiti
Slide 3: Portfolio Overview
Total Acquisitions1: $1,093,248,000 Total Current Portfolio2: $1,018,196,000 21 Equity Assets 1 Debt Asset December 2015 Estimated Value of Portfolio3: $1,356,127,000 SOR Equity Raised4: $561,749,000 Portfolio Leverage5: 43% Percent Leased as of 9/30/156: 87% Occupancy at Acquisition6: 68% 1 Represe
Slide 4: Estimated value per share methodology
Estimated value per share2 calculated using information as of September 30, 2015 • 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: Estimated Value of Portfolio
1Based on data as of September 30, 2015 2 Based on data as of September 30, 2014. 3Includes cash and cash equivalents, restricted cash, rents and other receivables, deposits and prepaid expenses as applicable. 4Includes accounts payable, accrued liabilities, security deposits, contingent liabilities
Slide 6: Change in Estimated Value Per Share
Valuation1 On December 8, 2015, KBS Strategic Opportunity REIT’s Board approved an estimated value per share of $13.44.1 The following is a summary of the estimated value per share changes within each asset and liability group. 6 1 Based on the estimated value of KBS Strategic Opportunity REIT’s ass
Slide 7: 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 8: Acquisition History, Cost Basis and Fundraising
1 Cost basis equals acquisition price (net of closing credits and excluding closing costs) plus capital expenditures as of September 30, 2015 for investments made and still in the portfolio as of that date. Real estate acquired through consolidated and unconsolidated joint ventures reflects KBS Stra
Slide 9: Portfolio Overview: $11.27 NAV
1 Includes real estate and loans in portfolio as of December 31, 2013, adjusted for the REIT’s share of consolidated and unconsolidated joint ventures. 2 Cost basis equals acquisition price (net of closing credits and excluding closing costs) plus capital expenditures for investments made and still
Slide 10: December 2014 Portfolio Overview: $12.24 NAV
December 2014 Portfolio Overview: $12.24 NAV 1 For real estate held in consolidated joint ventures, the value presented is equal to the real estate value less the minority interest value. 2 For real estate held in unconsolidated joint ventures, the value presented for National Industrial Portfolio i
Slide 11: December 2015 Portfolio Overview: $13.44 NAV
1 For real estate held in consolidated joint ventures, the value presented is equal to the real estate value less the minority interest value. 2 For real estate held in unconsolidated joint ventures, the value presented for National Industrial Portfolio is equal to the REIT’s equity value since the
Slide 12: 110 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 Number of Tenants: 33 Avg. Lease Terms: 6.51 Acquisition Occupancy: 97% Current Occupancy: 98.6% Purchase Price: $261,100,
Slide 13: December 2015 Portfolio Overview: 43% Leverage
December 2015 Portfolio Overview: 43% Leverage1 13 1 Equal to debt balance divided by appraised value, as of September 30, 2015, for consolidated properties. 2 For real estate held in consolidated joint ventures, the value presented is equal to the real estate value less the minority interest value.
Slide 14: Value Changes Since Inception
Value Changes Since Inception 14
Slide 15: Portfolio Occupancy
15 Portfolio Occupancy1 1 Includes future leases that had been executed, but not yet commenced as of September 30, 2015. 40.00% 45.00% 50.00% 55.00% 60.00% 65.00% 70.00% 75.00% 80.00% 85.00% 90.00% 95.00% 100.00% 3/ 1 /20 1 1 5/ 1 /20 1 1 7/ 1 /20 1 1 9/ 1 /20 1 1 1 1 /1/2 0 1 1 1/ 1 /20 1 2 3/ 1 /2
Slide 16: Portfolio Occupancy by Property
16 Portfolio Occupancy1 Occupancy at Acquisition Leased% as of Sept 2014 Leased % as of Sept 2015 % Change Since Sept 2014 % Change Since Acquisition Northridge Center (Atlanta, GA) 40% 72.2% 81.7% 9.5% 41.7% Iron Point Business Park (Folsom, CA) 38% 86.5% 93.7% 7.2% 55.7% Richardson Portfolio (Rich
Slide 17: Portfolio MFFO Growth
Portfolio MFFO Growth 17 (1) Represents the cumulative acquisition price of investments in the portfolio as of the date presented, as adjusted for KBS Strategic Opportunity REIT’s share of consolidated and unconsolidated joint ventures. (2) See slide 15 for a reconciliation of Adjusted MFFO GAAP net
Slide 18: MFFO Reconciliation Schedule
MFFO Reconciliation Schedule 18 (1) The Adjusted MFFO for Q2 2015 has been reduced by $3.7 million of proceeds, net of noncontrolling interest, related to condemnation agreements received during the quarter as this amount is a one-time settlement and is non-recurring in nature. Adjusted MFFO reflect
Slide 19: Distribution History
Distribution History1 Record Date Payment Date Amount/Share Reason 12/23/2011 12/28/2011 $0.30 Estimated increase in portfolio value, as supported by completed broker opinions of value (BOVs) 2/14/2012 2/17/2012 $0.02309337 Gain on the sale of 1 Roseville building 4/16/2012 4/30/2012 $0.025 Gain fro
Slide 20: 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 21: Hypothetical Performance of 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 rein
Slide 22: Hypothetical Performance of Early and Late Investors
Stockholder Performance Hypothetical Performance of Early and Late Investors $10.00 Share Price, All Distributions Received in Cash “Valuation Information” for an early cash investor assumes all distributions received in cash and no share redemptions and reflect the cash payment amounts (all distrib
Slide 23: 2016 Goals & Objectives
2016 Goals & Objectives 1) Strategically sell assets 2) Explore value-add opportunities for existing assets, primarily in land holdings, both direct development and added entitlements 3) Refinance upcoming maturities to capitalize on an ever competitive lending environment 4) Distribute available ca
Slide 24: Shareholder Communication
Shareholder Communication Statements will reflect new estimated value per share of $13.44 beginning with December 2015 statements. Shareholder letter will be included with December statements mailed in early January 2016. Estimated value per share visible through DST will be updated to show ne
Slide 25: 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! 25
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