Pacific Oak Strategic Opportunity REIT, Inc. Files 2023 Annual Report

TL;DR

<b>Pacific Oak Strategic Opportunity REIT, Inc. filed its 2023 10-K report detailing its financial performance and corporate information.</b>

AI Summary

Pacific Oak Strategic Opportunity REIT, Inc. (PCOK) filed a Annual Report (10-K) with the SEC on April 1, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Company formerly known as KBS Strategic Opportunity REIT, Inc. Incorporated in Maryland. Business address: 11766 Wilshire Blvd., Suite 1670, Los Angeles, CA 90025. Primary SIC code: 6798 (Real Estate Investment Trusts).

Why It Matters

For investors and stakeholders tracking Pacific Oak Strategic Opportunity REIT, Inc., this filing contains several important signals. This filing provides a comprehensive overview of the company's financial health and operational status for the fiscal year 2023. Understanding the details within this 10-K is crucial for investors to assess the REIT's performance, risks, and future outlook.

Risk Assessment

Risk Level: — Pacific Oak Strategic Opportunity REIT, Inc. shows moderate risk based on this filing. The company's financial performance and strategic direction are subject to market conditions and real estate sector risks, as is typical for REITs, but specific details on these risks are not yet available in this header data.

Analyst Insight

Review the full 10-K filing to understand the specific financial results, operational strategies, and risk factors for Pacific Oak Strategic Opportunity REIT, Inc. for the fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-04-01 — Filing Date (Date of submission)
• 2023-01-01 — Fiscal Year Start (Report period)

Key Players & Entities

• Pacific Oak Strategic Opportunity REIT, Inc. (company) — Filer name
• KBS Strategic Opportunity REIT, Inc. (company) — Former company name
• 11766 Wilshire Blvd., Suite 1670, Los Angeles, CA 90025 (company) — Business address
• 6798 (regulator) — Standard Industrial Classification

FAQ

Industry Context

Pacific Oak Strategic Opportunity REIT operates within the Real Estate Investment Trusts (REITs) sector, focusing on strategic opportunities in real estate.

Regulatory Implications

The filing adheres to SEC regulations for annual reports (10-K) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the full 10-K for detailed financial statements and management discussion.
2. Identify specific real estate assets and their performance metrics.
3. Assess the company's debt structure and liquidity position.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-04-01: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial header data for the 2023 10-K filing; comparison to prior filings requires access to the full document content.

Key Financial Figures

• $0.01 — ection 12(g) of the Act: Common Stock, $0.01 par value per share __________________
• $8.03 b — are of the Registrant's common stock of $8.03 based on the estimated value of the Regis
• $561.7 million — offering for gross offering proceeds of $561.7 million and ceased offering shares of common st
• $324.1 million — of the shares sold in our offering for $324.1 million and had issued 36,398,447 shares of com
• $637.1 million — rates; as of December 31, 2023, we had $637.1 million and $408.7 million of fixed and variabl
• $408.7 million — ber 31, 2023, we had $637.1 million and $408.7 million of fixed and variable rate debt outstan
• $153.5 million — ps with an aggregate notional amount of $153.5 million which effectively limits our exposure t
• $321.7 million — lion Israeli new shekels (approximately $321.7 million as December 31, 2023) were outstanding.
• $99.5 million — lion Israeli new shekels (approximately $99.5 million as of December 31, 2023) were outstandi

Filing Documents

• sor-20231231.htm (10-K) — 2783KB
• seriesbdeedoftrust-asoff.htm (EX-10.17) — 233KB
• exhibit211pacificoakorgc.htm (EX-21.1) — 6KB
• pacificoaksorq42023ex231.htm (EX-23.1) — 2KB
• pacificoaksorq42023ex311.htm (EX-31.1) — 10KB
• pacificoaksorq42023ex312.htm (EX-31.2) — 10KB
• pacificoaksorq42023ex321.htm (EX-32.1) — 6KB
• pacificoaksorq42023ex322.htm (EX-32.2) — 6KB
• pacificoaksorq42023ex993.htm (EX-99.3) — 3KB
• pacificoaksorq42023ex994.htm (EX-99.4) — 3KB
• pacificoaksorq42023ex995.htm (EX-99.5) — 4KB
• exhibit211pacificoakorgc001.jpg (GRAPHIC) — 372KB
• seriesbdeedoftrust-asoff001.jpg (GRAPHIC) — 458KB
• seriesbdeedoftrust-asoff002.jpg (GRAPHIC) — 738KB
• seriesbdeedoftrust-asoff003.jpg (GRAPHIC) — 892KB
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• seriesbdeedoftrust-asoff005.jpg (GRAPHIC) — 909KB
• seriesbdeedoftrust-asoff006.jpg (GRAPHIC) — 853KB
• seriesbdeedoftrust-asoff007.jpg (GRAPHIC) — 832KB
• seriesbdeedoftrust-asoff008.jpg (GRAPHIC) — 800KB
• seriesbdeedoftrust-asoff009.jpg (GRAPHIC) — 893KB
• seriesbdeedoftrust-asoff010.jpg (GRAPHIC) — 810KB
• seriesbdeedoftrust-asoff011.jpg (GRAPHIC) — 818KB
• seriesbdeedoftrust-asoff012.jpg (GRAPHIC) — 872KB
• seriesbdeedoftrust-asoff013.jpg (GRAPHIC) — 900KB
• seriesbdeedoftrust-asoff014.jpg (GRAPHIC) — 866KB
• seriesbdeedoftrust-asoff015.jpg (GRAPHIC) — 820KB
• seriesbdeedoftrust-asoff016.jpg (GRAPHIC) — 871KB
• seriesbdeedoftrust-asoff017.jpg (GRAPHIC) — 853KB
• seriesbdeedoftrust-asoff018.jpg (GRAPHIC) — 563KB
• seriesbdeedoftrust-asoff019.jpg (GRAPHIC) — 642KB
• seriesbdeedoftrust-asoff020.jpg (GRAPHIC) — 590KB
• 0001452936-24-000035.txt (&nbsp;) — 35829KB
• sor-20231231.xsd (EX-101.SCH) — 104KB
• sor-20231231_cal.xml (EX-101.CAL) — 107KB
• sor-20231231_def.xml (EX-101.DEF) — 542KB
• sor-20231231_lab.xml (EX-101.LAB) — 980KB
• sor-20231231_pre.xml (EX-101.PRE) — 773KB
• sor-20231231_htm.xml (XML) — 1982KB

RISK FACTORS

ITEM 1A. RISK FACTORS 8

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 38

CYBERSECURITY

ITEM 1C. CYBERSECURITY 38

PROPERTIES

ITEM 2. PROPERTIES 40

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 41

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 41 PART II. 41

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 42

RESERVED

ITEM 6. RESERVED 53

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 53

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 65

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 67

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 67

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 67

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 68

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 68 PART III. 68

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 69

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 69

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 69

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 69

PRINCIPAL ACCOUNTING FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 69 PART IV . 70

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 70

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 89 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS F- 1 1

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain statements included in this Annual Report on Form 10-K are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Pacific Oak Strategic Opportunity REIT, Inc. and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law. The following are some of the risks and uncertainties, although not all of the risks and uncertainties, that could cause our actual results to differ materially from those presented in our forward-looking statements: We depend on our advisor, Pacific Oak Capital Advisors, LLC and its affiliates to conduct our operations and eventually dispose of our investments. We depend on tenants for our revenue and, accordingly, our revenue is dependent upon the success and economic viability of our tenants. Revenues from our property investments could decrease due to a reduction in tenants (caused by factors including, but not limited to, tenant defaults, tenant insolvency, early termination of tenant leases and non-renewal of existing tenant leases) and/or lower rental rates, limiting our ability to pay distributions to our stockholders. We depend on the availability of, and costs associated with, sources of real estate liquidity Our opportunistic investment strategy involves a higher risk of loss than would a strategy of investing in some other typ

BUSINESS

ITEM 1. BUSINESS Overview Pacific Oak Strategic Opportunity REIT, Inc. was formed on October 8, 2008 as a Maryland corporation, elected to be taxed as a real estate investment trust ("REIT") beginning with the taxable year ended December 31, 2010 and intends to operate in such manner. As used herein, the terms "we," "our" and "us" refer to Pacific Oak Strategic Opportunity REIT, Inc. and as required by context, Pacific Oak Strategic Opportunity Limited Partnership, a Delaware limited partnership formed on December 10, 2008 (the "Operating Partnership"), and its subsidiaries. Pacific Oak Capital Advisors, LLC ("Pacific Oak Capital Advisors") is our advisor and as our advisor, Pacific Oak Capital Advisors manages our day-to-day operations and our portfolio of investments. Our advisor also has the authority to make all of the decisions regarding our investments, except for our residential home portfolio. Our residential home portfolio, held through our subsidiary Pacific Oak Residential Trust, Inc. ("PORT"), is managed by Pacific Oak Residential Advisors, LLC ("PORA"), an affiliate of our advisor. The advisory duties are subject to the limitations in our charter and the direction and oversight of our board of directors. Our advisor also provides asset-management, marketing, investor-relations, and other administrative services on our behalf. We have sought to invest in and manage a diverse portfolio of opportunistic real estate, real estate equity securities and other real estate-related investments. We conduct our business primarily through our Operating Partnership, of which we are the sole general partner. On January 8, 2009, we filed a registration statement on Form S-11 with the Securities and Exchange Commission (the "SEC") to offer a minimum of 250,000 shares and a maximum of 140,000,000 shares of common stock for sale to the public, of which 100,000,000 shares were registered in our primary offering and 40,000,000 shares were registered under our dividend re

View Full Filing

View this 10-K filing on SEC EDGAR