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Pacific Oak Strategic Opportunity REIT Reports 23.5% Annual Decline in NAV

Pacific Oak Strategic Opportunity REIT Reports 23.5% Annual Decline in NAV. Alternative investments, commercial real estate, investing, investment, NAV, net asset value, office, Pacific Oak, real estate, real estate investment trust, REIT, valuation
Pacific Oak Strategic Opportunity REIT Reports 23.5% Annual Decline in NAV. Alternative investments, commercial real estate, investing, investment, NAV, net asset value, office, Pacific Oak, real estate, real estate investment trust, REIT, valuation

Pacific Oak Strategic Opportunity REIT Inc., a publicly registered non-traded real estate investment trust formerly known as KBS Strategic Opportunity REIT Inc., reported that its board has approved an estimated value per share of the company’s common stock of $8.03, as of Sept. 30, 2023. In December 2022, the company’s board had approved an estimated NAV of $10.50 per share, as of Sept. 30, 2022, representing an NAV decline of $2.47 per share, equal to a decline of 23.5%.

The single largest contributor to the decline was a significant loss of appraised value in the company’s real estate properties, which accounted for $1.86 of the $2.47 per share loss.

As of Sept. 30, 2023, Pacific Oak owned nine office properties, encompassing, in the aggregate, approximately 3.2 million rentable square feet and these properties were 70% occupied. In addition, the company owned one residential home portfolio consisting of 2,449 residential homes and encompassing approximately 3.5 million rental square feet and two apartment properties, containing 609 units and encompassing approximately 0.5 million rentable square feet, which were 95% and 92% occupied, respectively.

Pacific Oak also owned one hotel property with 196 rooms, four investments in undeveloped land with approximately 658 developable acres and one office/retail development property.

The company’s consolidated real estate properties had a total estimated value of $1,620.0 million as of Sept. 30, 2023, and these properties had a total cost basis of $1,428.0 million as of Sept. 30, 2023, which is the total of acquisition prices of $1,261.8 million, $16.6 million for the acquisition of minority interests in entities, $137.4 million in capital expenditures, leasing commissions and tenant improvements since inception and $12.2 million of acquisition fees and expenses. The company’s consolidated real estate value compared to this cost basis represents an increase of approximately 13.4%.

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