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Pacific Oak Strategic Opportunity REIT, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in rental income to $30.2 million from $31.9 million in the same quarter the previous year, attributed to the disposition of residential homes and an apartment property.
Foreign currency transaction loss increased to $4.6 million from $1.1 million, primarily due to unfavorable exchange rates affecting the outstanding Series Bonds denominated in Israeli new shekels.
Interest expense rose to $20.6 million from $17.9 million, driven by higher weighted-average interest rates on variable and fixed rate debt.
Impairment charges on real estate and related intangibles decreased to $15.8 million from $28.3 million, with impairments recorded on three strategic opportunistic properties and one hotel.
Loss from unconsolidated entities was $9.8 million, primarily from the 110 William Joint Venture, with no income or loss recognized from the 353 Sacramento Joint Venture.
Gain on real estate equity securities was $8.7 million, compared to a loss of $3.3 million, due to changes in fair value.
For the nine months ended September 30, 2024, rental income decreased to $92.0 million from $96.1 million, primarily due to property dispositions.
Foreign currency transaction gain was $6.7 million, compared to a loss of $4.7 million, due to favorable exchange rates.
Interest expense increased to $55.4 million from $49.7 million, with higher average market interest rates impacting variable-rate debt.
Impairment charges rose to $76.1 million from $64.8 million, with impairments on five strategic opportunistic properties and one hotel.
Loss from unconsolidated entities was $26.5 million, mainly from the 110 William Joint Venture.
Loss on real estate equity securities decreased to $7.9 million from $19.5 million, influenced by changes in fair value.
Net cash used in operating activities was $20.7 million, with expectations of increased cash flows from leasing and acquisitions.
Net cash provided by investing activities was $13.1 million, driven by proceeds from real estate sales.
Net cash used in financing activities was $104.8 million, primarily due to principal payments on notes and bonds payable.
The company continues to monitor interest rate and foreign currency risks, with strategies in place to manage exposure.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Pacific Oak Strategic Opportunity REIT Inc Com quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.