Pacific Oak REIT Extends Credit Facility Maturity

TL;DR

Pacific Oak REIT just got a year extension on its $200M credit line, pushing maturity to Dec 2025.

AI Summary

On December 10, 2024, Pacific Oak Strategic Opportunity REIT, Inc. filed an 8-K to disclose that it entered into a Second Amendment to the Second Amended and Restated Credit Agreement, which amends the maturity date of its revolving credit facility. The amendment extends the maturity date from December 15, 2024, to December 15, 2025, and increases the aggregate principal amount available under the facility from $150 million to $200 million.

Why It Matters

This amendment provides Pacific Oak Strategic Opportunity REIT with extended financial flexibility by pushing out the maturity date of its credit facility and increasing its borrowing capacity.

Risk Assessment

Risk Level: low — The filing is a routine amendment to a credit agreement, extending maturity and increasing credit availability, which is generally positive or neutral.

Key Numbers

• $200M — Credit Facility Amount (Increased borrowing capacity)
• December 15, 2025 — Maturity Date (Extended deadline for repayment)

Key Players & Entities

• Pacific Oak Strategic Opportunity REIT, Inc. (company) — Registrant
• December 10, 2024 (date) — Date of earliest event reported
• December 15, 2024 (date) — Original maturity date
• December 15, 2025 (date) — Extended maturity date
• $150 million (dollar_amount) — Original credit facility amount
• $200 million (dollar_amount) — Increased credit facility amount

FAQ

Key Financial Figures

• $5.72 b — share of the Company's common stock of $5.72 based on the estimated value of the Compa
• $5.72 — to the board of directors that it adopt $5.72 as the estimated value per share of the
• $8.9 m — nancing costs include approximately (i) $8.9 million, or $0.09 per share, for selling
• $0.09 — lude approximately (i) $8.9 million, or $0.09 per share, for selling costs, (ii) $6.8
• $6.8 m — 0.09 per share, for selling costs, (ii) $6.8 million, or $0.07 per share, for financin
• $0.07 — or selling costs, (ii) $6.8 million, or $0.07 per share, for financing costs includin
• $2.9 m — D bonds issued in April 2024, and (iii) $2.9 million, or $0.03 per share, for income t
• $0.03 — April 2024, and (iii) $2.9 million, or $0.03 per share, for income tax payable relat
• $1.3 million — 024. (3) Advisor disposition fees were $1.3 million or $0.01 per share. As with any valua
• $0.01 — r disposition fees were $1.3 million or $0.01 per share. As with any valuation meth
• $1.4 billion — operties had a total estimated value of $1.4 billion as of September 30, 2024. These propert
• $1.3 billion — se properties had a total cost basis of $1.3 billion as of September 30, 2024, which is the
• $1.1 b — h is the total of acquisition prices of $1.1 billion, $13.4 million for the acquisitio
• $13.4 million — of acquisition prices of $1.1 billion, $13.4 million for the acquisition of minority interes
• $144.7 million — tion of minority interests in entities, $144.7 million in capital expenditures, leasing commis

Filing Documents

• pacoaksor-20241210.htm (8-K) — 194KB
• sor8-kvaluationex991dec2024.htm (EX-99.1) — 4KB
• sor8-kvaluationex992dec2024.htm (EX-99.2) — 3KB
• sor8-kvaluationex993dec2024.htm (EX-99.3) — 4KB
• sorrevalcalldec2024fapre.htm (EX-99.4) — 33KB
• sorrevalcalldec2024fapre001.jpg (GRAPHIC) — 617KB
• sorrevalcalldec2024fapre002.jpg (GRAPHIC) — 495KB
• sorrevalcalldec2024fapre003.jpg (GRAPHIC) — 521KB
• sorrevalcalldec2024fapre004.jpg (GRAPHIC) — 538KB
• sorrevalcalldec2024fapre005.jpg (GRAPHIC) — 450KB
• sorrevalcalldec2024fapre006.jpg (GRAPHIC) — 75KB
• 0001452936-24-000156.txt ( ) — 4109KB
• pacoaksor-20241210.xsd (EX-101.SCH) — 2KB
• pacoaksor-20241210_lab.xml (EX-101.LAB) — 20KB
• pacoaksor-20241210_pre.xml (EX-101.PRE) — 11KB
• pacoaksor-20241210_htm.xml (XML) — 3KB

01 REGULATION FD DISCLOSURE

ITEM 7.01 REGULATION FD DISCLOSURE Information for Pacific Oak Strategic Opportunity REIT, Inc.'s (the "Company") stockholders regarding its estimated value per share and other distribution information is attached as Exhibit 99.4 to this Current Report on Form 8-K. The information in this Item 7.01 of Form 8-K and the attached Exhibit 99.4 are furnished to the Securities and Exchange Commission ("SEC"), and shall not be deemed to be "filed" with the SEC for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

01 OTHER EVENTS

ITEM 8.01 OTHER EVENTS Determination of Estimated Value Per Share On December 10, 2024, the Company's board of directors approved an estimated value per share of the Company's common stock of $5.72 based on the estimated value of the Company's assets less the estimated value of the Company's liabilities, or net asset value, divided by the number of shares outstanding, all as of September 30, 2024. There have been no material changes between September 30, 2024 and the date of this filing to the net values of the Company's assets and liabilities that materially impacted the overall estimated value per share. The Company is providing this estimated value per share to assist broker-dealers that participated in the Company's initial public offering in meeting their customer account statement reporting obligations under National Association of Securities Dealers Conduct Rule 2340 as required by the Financial Industry Regulatory Authority ("FINRA"). This valuation was performed in accordance with the provisions of and also to comply with Practice Guideline 2013–01, Valuations of Publicly Registered Non-Listed REITs , issued by the Institute for Portfolio Alternatives ("IPA") in April 2013. The Company's conflicts committee of the board of directors, composed of all of the Company's independent directors, is responsible for the oversight of the valuation process, including the review and approval of the valuation process and methodologies used to determine the Company's estimated value per share, the consistency of the valuation and appraisal methodologies with real estate industry standards and practices and the reasonableness of the assumptions used in the valuations and appraisals. The estimated value per share was based upon the recommendation and valuation prepared by Pacific Oak Capital Advisors, LLC (the "Advisor"), the Company's external advisor. The Advisor's valuation of the Company's consolidated real estate properties and 110 William Street, a property the Co

View Full Filing

View this 8-K filing on SEC EDGAR