Pacific Oak Strategic Opportunity Reit, Inc. · OTC:PCOK
Pacific Oak Strategic Opportunity Reit — KBS Strategic Opportunity REIT — Investor Presentation (December 2014)
18 slides from Pacific Oak Strategic Opportunity Reit's investor presentation, Dec 11, 2014
Slide 1: Valuation and Portfolio Update
KBS Strategic Opportunity REIT Valuation and Portfolio Update December 11, 2014 1 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, 2013, filed with the Securiti
Slide 3: Portfolio Overview
Total Acquisitions1: $1,093,248,000 Total Current Portfolio2: $1,027,469,000 23 Equity Assets 1 Debt Asset December 2014 Estimated Value of Portfolio3: $1,262,913,000 Current Rentable Sq. Ft.4: 4,872,163 Portfolio Leverage5: 42% Percent Leased as of 9/30/146: 82% Occupancy at Acquisition6: 67% 1 Rep
Slide 4: Estimated value per share methodology
Estimated value per share2 calculated using information as of September 30, 2014 • 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: Change in Estimated Value Per Share
Change in Estimated Value Per Share March 2014 estimated value per share $ 11.27 Real Estate Real Estate 0.92 Investments in Unconsolidated JVs2 0.44 Capital expenditures on real estate (0.32) Subtotal - Real Estate 1.04 Operating cash flows in excess of quarterly distributions declared 0.07 Notes p
Slide 6: Valuation: Estimated Value of Portfolio
6 1Based on data as of September 30, 2014 2 Based on data as of December 31, 2013, with the exception of an adjustment for certain acquisition fees and closing costs incurred subsequent to December 31, 2013 and before March 25, 2014. 3Includes cash and cash equivalents, restricted cash, rents and ot
Slide 7: Portfolio Overview: Acquisition History, Cost Basis and Fund Raising
Portfolio Overview 7 1 Cost basis equals acquisition price (net of closing credits and excluding closing costs) plus capital expenditures as of September 30, 2014 for investments made and still in the portfolio as of that date. Real estate acquired through consolidated and unconsolidated joint ventu
Slide 8: March 2014 Estimated Values of Real Estate and Loan Receivable
March 2014 Portfolio Overview: $11.27 NAV 8 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
Slide 9: December 2014 Portfolio Overview: $12.24 NAV
December 2014 Portfolio Overview: $12.24 NAV 9 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
Slide 10: December 2014 Portfolio Overview: 42% Leverage
December 2014 Portfolio Overview: 42% Leverage1 10 1 Equal to debt balance divided by appraised value, as of September 30, 2014, 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 11: Portfolio Overview: Equity and Safe Harbor Assets
Portfolio Overview 11 1 Equity equals appraised asset value less debt fair value. Appraised asset values and debt fair values are as of September 30, 2014. Does not reflect debt financing that occurred after September 30, 2014. Real estate acquired through consolidated and unconsolidated joint ventu
Slide 12: Distribution History
Distribution History1 1Based on all distributions declared but not necessarily paid as of December 11, 2014 12 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
Slide 13: Estimated value per share limitations
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 are based upon a number of
Slide 14: Estimated value per share notes
(1) Does not reflect the hypothetical performance of investment by stockholders that participated in the dividend reinvestment plan. (2) KBS Strategic Opportunity REIT is providing this estimated value per share to assist broker dealers that participated in its initial public offering in meeting the
Slide 15: 110 William Street Acquisition Update
JV acquisition of Class B office building in Manhattan, NYC • Acquired on May 2, 2014 • $257 million purchase price • 32 floors • 928,157 rentable square feet • Located in Financial District • 97% occupied at acquisition • 60% ownership interest through joint venture 110 William Street Acquisition U
Slide 16: Shareholder Communication
Statements will reflect new estimated value per share of $12.24 beginning with December 2014 statements. Shareholder letter will be included with December statements mailed in early January 2015. Estimated value per share visible through DST will be updated to show new estimated value. Expec
Slide 17: 2015 Goals & Objectives
2015 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 18: Thank you!
Thank you! If you have any questions, please contact your financial advisor or contact us at: KBS Capital Markets Group Member FINRA & SIPC 660 Newport Center Dr., Suite 1200 Newport Beach, CA 92660 (866) 527-4264 18
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