Attached files
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| EX-99.1 - INTERIM CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2017 (UNAUDITED) - Pacific Oak Strategic Opportunity REIT, Inc. | kbssor8exhibit991.htm |
| 8-K - FORM 8-K - Pacific Oak Strategic Opportunity REIT, Inc. | kbssor8k.htm |
Exhibit 99.2
KBS SOR (BVI) Holdings LTD
Presentation of separate financial data annexed
to the consolidated financial statements related to the Company
As of September 30, 2017 (UNAUDITED)
U.S. DOLLARS IN THOUSANDS
INDEX
Page | |
Special Review Report Presented pursuant to Regulation 38d | 2 |
Financial Data from the Consolidated Statements of Financial Position Attributable to the Company | 3 |
Financial Data from the Consolidated Statements of Operations Attributable to the Company | 4 |
Financial Data from the Consolidated Statements of Comprehensive Income Attributable to the Company | 5 |
Financial data from the Consolidated Cash Flows Attributable to the Company | 6 |
Additional information | 7 |
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1
Special Report in accordance with Regulation 38d
Financial Information and Financial Data from the
Consolidated Financial Statements Attributable to the Company
Below is separate financial information and financial data attributable to the Company from the Company's consolidated financial statements as of September 30, 2017, published as part of the periodic reports ("consolidated financial statements"), presented in accordance with Regulation 38d to the Israeli Securities Regulations (Periodic and Immediate Reports), 1970.
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KBS SOR (BVI) HOLDINGS, LTD.
STATEMENTS OF FINANCIAL POSITION
USD in thousands
September 30, | December 31, | ||||||||||
2017 | 2016 | 2016 | |||||||||
Unaudited | Audited | ||||||||||
U.S. dollars in thousands | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 5,729 | $ | 731 | $ | 2,413 | |||||
Derivative financial instruments | 3,884 | 1,527 | 12 | ||||||||
9,613 | 2,258 | 2,425 | |||||||||
Non-current assets | |||||||||||
Investments in investees | 1,166,605 | 1,106,682 | 1,103,741 | ||||||||
Restricted cash | 6,159 | 5,809 | 5,649 | ||||||||
Escrow deposit for acquisition of real estate | - | - | 2,000 | ||||||||
1,172,764 | 1,112,491 | 1,111,390 | |||||||||
Total assets | $ | 1,182,377 | $ | 1,114,749 | $ | 1,113,815 | |||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | 1,212 | $ | 1,152 | $ | 3,738 | |||||
Derivative financial instruments | - | - | 3,910 | ||||||||
Dividend payable to Owner | 47,000 | - | - | ||||||||
48,212 | 1,152 | 7,648 | |||||||||
Non-current liabilities | |||||||||||
Debentures, net | 267,575 | 250,163 | 243,455 | ||||||||
Total liabilities | 315,787 | 251,315 | 251,103 | ||||||||
EQUITY | 866,590 | 863,434 | 862,712 | ||||||||
Total equity and liabilities | $ | 1,182,377 | $ | 1,114,749 | $ | 1,113,815 | |||||
November 13, 2017 | /s/ Jeffrey Waldvogel | /s/ Peter McMillan III | /s/ Keith David Hall | |||
Date of approval of the financial statements | Waldvogel, Jeffrey Chief Financial Officer | McMillan, Peter III Chairman of Board of Directors | Hall, Keith David Chief Executive Officer | |||
The accompanying notes are an integral part of this financial position.
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KBS SOR (BVI) HOLDINGS LTD
STATEMENTS OF OPERATIONS
USD in thousands
Nine months ended September 30, | Three months ended September 30, | Year ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||||
Unaudited | Audited | ||||||||||||||||||||||||
U.S. dollars in thousands | |||||||||||||||||||||||||
Share of profit from investees, net | $ | 101,098 | $ | 75,747 | $ | 80,280 | $ | 62,037 | $ | 86,098 | |||||||||||||||
Asset management fees to affiliate | (8,404) | (5,557) | (2,801) | (2,639) | (8,253) | ||||||||||||||||||||
General and administrative expenses | (1,147) | (1,025) | (530) | (484) | (1,466) | ||||||||||||||||||||
Operating income | 91,547 | 69,165 | 76,949 | 58,914 | 76,379 | ||||||||||||||||||||
Finance expense | (9,915) | (7,142) | (3,374) | (3,185) | (10,311) | ||||||||||||||||||||
Foreign currency transaction adjustments, net | (11,454) | (4,602) | (4,357) | (6,639) | (2,997) | ||||||||||||||||||||
Net income (loss) | $ | 70,178 | $ | 57,421 | $ | 69,218 | $ | 49,090 | $ | 63,071 | |||||||||||||||
The accompanying notes are an integral part of this financial position.
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KBS SOR (BVI) HOLDINGS LTD
STATEMENTS OF COMPREHENSIVE INCOME
USD in thousands
Nine months ended September 30, | Three months ended September 30, | Year ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||||
Unaudited | Audited | ||||||||||||||||||||||||
U.S. dollars in thousands | |||||||||||||||||||||||||
Net income | $ | 70,178 | $ | 57,421 | $ | 69,218 | $ | 49,090 | $ | 63,071 | |||||||||||||||
Total comprehensive income | $ | 70,178 | $ | 57,421 | $ | 69,218 | $ | 49,090 | $ | 63,071 | |||||||||||||||
The accompanying notes are an integral part of this financial position.
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KBS SOR (BVI) HOLDINGS LTD
STATEMENTS OF CASH FLOW
USD in thousands
Nine months ended September 30, | Three months ended September 30, | Year ended December 31, | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||
Unaudited | Audited | ||||||||||||||||||||||
U.S. dollars in thousands | |||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net income (loss) for the period | $ | 70,178 | $ | 57,421 | $ | 69,218 | $ | 49,090 | $ | 63,071 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Share of profit from investees | (101,098) | (75,747) | (80,280) | (62,037) | (86,098) | ||||||||||||||||||
Finance expense | 9,915 | 7,142 | 3,374 | 3,185 | 10,311 | ||||||||||||||||||
Distribution from investees, net | 48,685 | 35,122 | 13,088 | 21,412 | 48,854 | ||||||||||||||||||
Foreign currency transaction adjustments, net | 11,454 | 4,602 | 4,357 | 6,639 | 2,997 | ||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts payable and accrued liabilities | (76) | 171 | (61) | 51 | 86 | ||||||||||||||||||
Net cash provided by operating activities | 39,058 | 28,711 | 9,696 | 18,340 | 39,221 | ||||||||||||||||||
Cash flows used in investing activities | |||||||||||||||||||||||
Investments in investees | (76,105) | (329,369) | (31,947) | (168,877) | (333,994) | ||||||||||||||||||
Escrow deposits for investments in investees | - | - | - | 16,000 | (2,000) | ||||||||||||||||||
Distribution from investees, net | 67,666 | 114,625 | 34880 | 82,860 | 118,838 | ||||||||||||||||||
Purchase of interest rate cap | - | - | - | - | (15) | ||||||||||||||||||
Purchase of derivative financial instrument | (3,434) | - | (3,434) | - | - | ||||||||||||||||||
Proceeds from termination of derivative financial instrument | 6,557 | - | 6,557 | - | - | ||||||||||||||||||
Net cash (used in) provided by investing activities | (5,316) | (214,744) | 6,056 | (70,017) | (217,171) | ||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from issue of debentures | - | 249,211 | - | - | 249,211 | ||||||||||||||||||
Payments of deferred financing costs | - | (8,680) | - | (516) | (8,680) | ||||||||||||||||||
Restricted cash for debt service obligations | - | (5,595) | - | (209) | (5,595) | ||||||||||||||||||
Interest paid | (11,130) | (5,232) | (5,547) | (5,232) | (5,232) | ||||||||||||||||||
Repayments to Parent Company | - | (5,512) | - | (5,512) | (5,512) | ||||||||||||||||||
Borrowings from Parent Company | - | 4,375 | - | 501 | 4,375 | ||||||||||||||||||
Distribution to Owner | (19,300) | (45,300) | (5,100) | (31,600) | (51,700) | ||||||||||||||||||
Net cash (used in) provided by financing activities | (30,430) | 183,267 | (10,647) | (42,568) | 176,867 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 4 | 3,497 | (1) | (626) | 3,496 | ||||||||||||||||||
Increase (Decrease) in cash | 3,316 | 731 | 5,104 | (94,871) | 2,413 | ||||||||||||||||||
Cash, beginning of the period | 2,413 | - | 625 | 95,602 | - | ||||||||||||||||||
Cash, end of the period | $ | 5,729 | $ | 731 | $ | 5,729 | $ | 731 | $ | 2,413 | |||||||||||||
Non-cash activities | |||||||||||||||||||||||
Investment in investees | $ | — | $ | 809,682 | $ | — | $ | — | $ | 809,682 | |||||||||||||
Increase in dividends payable to Owner | $ | 47,000 | $ | — | $ | 47,000 | $ | — | $ | — | |||||||||||||
The accompanying notes are an integral part of this financial position.
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KBS SOR (BVI) Holdings LTD
NOTES TO FINANCIAL STATEMENTS
USD in thousands
NOTE 1: BASIS OF PREPERATION
Separate financial information is prepared in a condensed format as of September 30, 2017 and for nine and three months then ended, in accordance with Regulation 38D of the Securities Regulations (Periodic and Immediate Reports), 1970.
Please refer to the separate financial information in this regard to the financial information on the annual financial statements of the Company as of December 31, 2016 and for the year then ended, and the information accompanying notes (hereinafter - the annual consolidated financial statements).
NOTE 2: SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
Dividend approval:
In March, June and September 2017, the Company declared distributions of dividend in the aggregated amount of $66.3 million to the Owner. As of September 30, 2017, $47.0 million was payable to the Owner. In October 2017, the Company paid the $47.0 million to the Owner.
NOTE 3: SUBSEQUENT EVENTS
Dividend approval:
In October 2017, the Company declared a distribution of dividend in the amount of $15.0 million to the Owner. In October 2017, the Company paid the $15.0 million to the Owner.
Singapore Transaction:
On November 8, 2017, the Company through 11 wholly owned subsidiaries, sold 11 of its properties (the “Singapore Portfolio”) to various subsidiaries of Keppel-KBS US REIT ("S-REIT"), a newly formed Singapore real estate investment trust that was listed on the Singapore Stock Exchange (the “Singapore Transaction”). The Singapore Portfolio consists of the following properties: 1800 West Loop, Westech 360 (part of the Austin Suburban Portfolio), Great Hills Plaza (part of the Austin Suburban Portfolio), Westmoor Center, Iron Point Business Park, the Plaza Buildings, Bellevue Technology Center, Northridge Center I and II, West Loop I and II, Powers Ferry Landing, and Maitland Promenade II. The sale price of the Singapore Portfolio was $804 million, before closing credits (which is close to the carrying amount). In addition to the selling of the properties in the Singapore Portfolio, the Company paid off existing mortgages of the properties which their balance as of the transaction date was approximately $401.7 million.
In connection with the sale, the Company received $321.6 million in cash, after deducting transaction costs, and $52.5 million of Keppel-KBS US REIT shares (comprising approximately 9.5% of Keppel-KBS US REIT) in lieu of cash. The Company is still evaluating the accounting treatment with regards to its holding of Keppel-KBS US REIT shares.
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