Attached files
| file | filename |
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| EX-99.1 - INTERIM CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2017 (UNAUDITED) - Pacific Oak Strategic Opportunity REIT, Inc. | kbssor8kexhibit991.htm |
| 8-K - FORM 8-K - Pacific Oak Strategic Opportunity REIT, Inc. | kbssor8k.htm |
KBS SOR (BVI) Holdings LTD
Presentation of separate financial data annexed
to the consolidated financial statements related to the Company
As of June 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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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 June 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
June 30, | December 31, | ||||||||||
2017 | 2016 | 2016 | |||||||||
Unaudited | Audited | ||||||||||
U.S. dollars in thousands | |||||||||||
ASSETS | |||||||||||
Non-current assets | |||||||||||
Investments in investees | $ | 1,102,346 | $ | 980,040 | $ | 1,103,741 | |||||
Restricted cash | 6,240 | 5,433 | 5,649 | ||||||||
Escrow deposit for acquisition of real estate | - | 16,000 | 2,000 | ||||||||
1,108,586 | 1,001,473 | 1,111,390 | |||||||||
Current assets | |||||||||||
Cash and cash equivalents | 625 | 95,602 | 2,413 | ||||||||
Derivative financial instruments | 15,052 | - | 12 | ||||||||
15,677 | 95,602 | 2,425 | |||||||||
Total assets | $ | 1,124,263 | $ | 1,097,075 | $ | 1,113,815 | |||||
EQUITY | $ | 849,472 | $ | 845,944 | $ | 862,712 | |||||
Non-current liabilities | |||||||||||
Debentures, net | 270,705 | 242,117 | 243,455 | ||||||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | 4,086 | 3,485 | 3,738 | ||||||||
Derivative financial instruments | - | - | 3,910 | ||||||||
Due to Parent Company | - | 5,529 | - | ||||||||
4,086 | 9,014 | 7,648 | |||||||||
Total liabilities | 274,791 | 251,131 | 251,103 | ||||||||
Total equity and liabilities | $ | 1,124,263 | $ | 1,097,075 | $ | 1,113,815 | |||||
August 10, 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
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||||
Unaudited | Audited | ||||||||||||||||||||||||
U.S. dollars in thousands | |||||||||||||||||||||||||
Share of profit from investees, net | $ | 20,818 | $ | 13,710 | $ | 5,403 | $ | 13,643 | $ | 86,098 | |||||||||||||||
Asset management fees to affiliate | (5,603) | (2,918) | (2,855) | (2,205) | (8,253) | ||||||||||||||||||||
General and administrative expenses | (617) | (541) | (229) | (341) | (1,466) | ||||||||||||||||||||
Operating income | 14,598 | 10,251 | 2,319 | 11,097 | 76,379 | ||||||||||||||||||||
Finance expense | (6,541) | (3,957) | (3,334) | (3,140) | (10,311) | ||||||||||||||||||||
Foreign currency transaction adjustments, net | (7,097) | 2,037 | (2,426) | 2,340 | (2,997) | ||||||||||||||||||||
Net income (loss) | $ | 960 | $ | 8,331 | $ | (3,441 | ) | $ | 10,297 | $ | 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
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||||
Unaudited | Audited | ||||||||||||||||||||||||
U.S. dollars in thousands | |||||||||||||||||||||||||
Net income (loss) | $ | 960 | $ | 8,331 | $ | (3,441 | ) | $ | 10,297 | $ | 63,071 | ||||||||||||||
Total comprehensive income (loss) | $ | 960 | $ | 8,331 | $ | (3,441 | ) | $ | 10,297 | $ | 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
Six months ended June 30, | Three months ended June 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 | $ | 960 | $ | 8,331 | $ | (3,441 | ) | $ | 10,297 | $ | 63,071 | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||
Share of profit from investees | (20,818) | (13,710) | (5,403) | (13,643) | (86,098) | |||||||||||||||||||||
Finance expense | 6,541 | 3,957 | 3,334 | 3,140 | 10,311 | |||||||||||||||||||||
Distribution from investees, net | 35,597 | 13,710 | 17,674 | 6,397 | 48,854 | |||||||||||||||||||||
Foreign currency transaction adjustments, net | 7,097 | (2,037) | 2,426 | (2,340) | 2,997 | |||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
Accounts payable and accrued liabilities | (15) | 120 | (40) | (59) | 86 | |||||||||||||||||||||
Due to Parent Company | - | 24 | - | 3 | - | |||||||||||||||||||||
Net cash provided by operating activities | 29,362 | 10,395 | 14,550 | 3,795 | 39,221 | |||||||||||||||||||||
Cash flows used in investing activities | ||||||||||||||||||||||||||
Investments in investees | (44,158) | (160,492) | (7,514) | (156,642) | (333,994) | |||||||||||||||||||||
Escrow deposits for investments in investees | - | (16,000) | - | (16,000) | (2,000) | |||||||||||||||||||||
Distribution from investees, net | 32,786 | 31,765 | 698 | 31,765 | 118,838 | |||||||||||||||||||||
Purchase of interest rate cap | - | - | - | - | (15) | |||||||||||||||||||||
Net cash used in investing activities | (11,372) | (144,727) | (6,816) | (140,877) | (217,171) | |||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||
Proceeds from issue of debentures | - | 249,211 | - | - | 249,211 | |||||||||||||||||||||
Payments of deferred financing costs | - | (8,164) | - | (335) | (8,680) | |||||||||||||||||||||
Restricted cash for debt service obligations | - | (5,386) | - | - | (5,595) | |||||||||||||||||||||
Interest paid | (5,583) | - | - | - | (5,232) | |||||||||||||||||||||
Repayments to Parent Company | - | - | - | - | (5,512) | |||||||||||||||||||||
Borrowings from Parent Company | - | 3,850 | - | - | 4,375 | |||||||||||||||||||||
Distribution to Owner | (14,200) | (13,700) | (7,500) | (7,100) | (51,700) | |||||||||||||||||||||
Net cash provided by financing activities | (19,783) | 225,811 | (7,500) | (7,435) | 176,867 | |||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 5 | 4,123 | 2 | (4,491) | 3,496 | |||||||||||||||||||||
(Decrease) Increase in cash | (1,788) | 95,602 | 236 | (149,008) | 2,413 | |||||||||||||||||||||
Cash, beginning of the period | 2,413 | - | 389 | 244,610 | - | |||||||||||||||||||||
Cash, end of the period | $ | 625 | $ | 95,602 | $ | 625 | $ | 95,602 | $ | 2,413 | ||||||||||||||||
Non-cash activities | ||||||||||||||||||||||||||
Investment in investees | $ | — | $ | 809,682 | $ | — | $ | — | $ | 809,682 | ||||||||||||||||
Increase in deferred financing fees due to Parent Company and payable | $ | — | $ | 518 | $ | — | $ | — | $ | — | ||||||||||||||||
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 June 30, 2017 and for the six 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 and June 2017, the Company declared and paid distributions of dividend to the Owner in the amount of $6.7 million and $7.5 million, respectively.
NOTE 3: SUBSEQUENT EVENTS
Hedge:
On August 3, 2017, the Company terminated the foreign currency collars and as a result received $6.6 million. On August 3, 2017, the Company, entered into a USD put/ILS call to hedge against a change in the exchange rate of the Israeli new Shekel versus the U.S. Dollar as it now has the right, but not the obligation, to purchase up to 970.2 million Israeli new Shekels at the rate of ILS 3.4 per USD for an amount up to $285.4 million. The cost of the USD put/ILS call option was $3.4 million.
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