Pacific Oak Strategic Opportunity REIT Approves New Estimated Value Per Share of $10.68
December 22, 2021 | Pacific Oak Strategic Opportunity REIT, Inc.
Pacific Oak Strategic Opportunity REIT, Inc. announced the determination of an estimated value per share of the company’s common stock of $10.68 as of September 30, 2021.
The estimated value per share was approved by SOR’s board of directors after independent, third-party firms conducted property-level and aggregate valuation analyses on SOR’s consolidated investments in real estate properties and two of its unconsolidated joint venture investments in real estate properties plus cash and other assets, less the estimated value of outstanding mortgage debt and other liabilities, divided by the number of shares issued and outstanding on an adjusted fully diluted basis.
“Our diverse portfolio of well-located, well-managed assets continue to demonstrate resilience and contribute to our strong track record of performance,” said Keith Hall, CEO of Pacific Oak Strategic Opportunity REIT, Inc. “We continue to be optimistic about each of the asset classes the REIT has exposure to and believe 2022 will provide additional opportunities to create value for shareholders.”
The Company’s conflicts committee, composed solely of the Company’s independent directors, engaged Kroll, LLC for the appraisals of its commercial assets, Colliers International Valuation & Advisory Services, LLC for undeveloped land holdings and HouseCanary, Inc. for the valuation of the single family rental portfolio.
Pacific Oak Capital Advisors LLC, the REIT’s external advisor, performed valuations of the REIT’s other assets and liabilities. Upon the committee’s receipt and review of each firm’s respective valuation reports and consideration of the material assumptions and valuation methodologies applied and described therein, the committee recommended to the board of directors that it adopt $10.68 as the estimated per share of the REIT’s common stock.
The new estimated value per share reflects a 10.33% increase from the previous $9.68 estimated value per share that the board of directors approved in December 2020. The valuation was performed in accordance with the methodology provided in the Institute for Portfolio Alternatives practice guideline regarding valuations of publicly registered non-listed REITs. The estimated NAV does not reflect any “portfolio premium”, nor does it reflect an enterprise value for the Company.
About Pacific Oak Strategic Opportunity REIT
Pacific Oak Strategic Opportunity REIT, Inc. is a public, non-traded corporation headquartered in Los Angeles, California, that has elected to be taxed and currently qualifies as real estate investment trust. The REIT invests in opportunistic real estate and other real estate-related investments and manages a portfolio valued in excess of $2 billion1 comprised primarily of office, land, apartment, single-family rental and hotel assets.
1 Reflects the values for real estate, including the properties owned via joint ventures, as well as real estate equity securities as of September 30, 2021, which are reflected in the December 2021 NAV. Value has been adjusted for the company’s share of consolidated and unconsolidated joint ventures. For more information, see the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 8, 2021.
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