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Pacific Oak Strategic Opportunity REIT (Pacific Oak Strategic Opportunity REIT) Financial Strength : 2 (As of Dec. 2023)


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What is Pacific Oak Strategic Opportunity REIT Financial Strength?

Pacific Oak Strategic Opportunity REIT has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Pacific Oak Strategic Opportunity REIT Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Pacific Oak Strategic Opportunity REIT did not have earnings to cover the interest expense. Pacific Oak Strategic Opportunity REIT's debt to revenue ratio for the quarter that ended in Dec. 2023 was 7.45. As of today, Pacific Oak Strategic Opportunity REIT's Altman Z-Score is -0.36.


Competitive Comparison of Pacific Oak Strategic Opportunity REIT's Financial Strength

For the REIT - Diversified subindustry, Pacific Oak Strategic Opportunity REIT's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pacific Oak Strategic Opportunity REIT's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Pacific Oak Strategic Opportunity REIT's Financial Strength distribution charts can be found below:

* The bar in red indicates where Pacific Oak Strategic Opportunity REIT's Financial Strength falls into.



Pacific Oak Strategic Opportunity REIT Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Pacific Oak Strategic Opportunity REIT's Interest Expense for the months ended in Dec. 2023 was $-18.5 Mil. Its Operating Income for the months ended in Dec. 2023 was $-4.8 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,028.7 Mil.

Pacific Oak Strategic Opportunity REIT's Interest Coverage for the quarter that ended in Dec. 2023 is

Pacific Oak Strategic Opportunity REIT did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Pacific Oak Strategic Opportunity REIT's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 1028.683) / 138.128
=7.45

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Pacific Oak Strategic Opportunity REIT has a Z-score of -0.36, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -0.36 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Pacific Oak Strategic Opportunity REIT  (OTCPK:PCOK) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Pacific Oak Strategic Opportunity REIT has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Pacific Oak Strategic Opportunity REIT Financial Strength Related Terms

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Pacific Oak Strategic Opportunity REIT (Pacific Oak Strategic Opportunity REIT) Business Description

Traded in Other Exchanges
N/A
Address
11766 Wilshire Boulevard, Suite 1670, Los Angeles, CA, USA, 90025
Pacific Oak Strategic Opportunity REIT Inc is a non-traded real estate investment trust. It is focused on acquiring an investment portfolio with a total return profile that is composed of investments that provide capital appreciation potential and current operating income. These investments may consist of opportunistic or value-added real estate, distressed debt, or other real estate-related investments. The primary investment objectives of the REIT are to provide its stockholders with attractive and stable returns and preserve and return its stockholders' capital contributions.
Executives
Laurent J. Degryse director 721 DOLO WAY, LOS ANGELES CA 90077
Peter Mcmillan director, officer: President
Keith D Hall director, officer: Chief Executive Officer 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Michael Bender officer: See Remarks 14631 NORTH SCOTTSDALE RD., SUITE 200, SCOTTSDALE AZ 85254
Kenneth Yee director 800 NEWPORT CENTER DRIVE, SUITE 700, NEWPORT BEACH CA 92660
Jeff Waldvogel officer: Chief Financial Officer C/O KBS REALTY ADVISORS, 800 NEWPORT CENTER DRIVE, SUITE 700, NEWPORT BEACH CA 92660
Michael L Meyer director MICHAEL L. MEYER COMPANY, 18101 VON KARMAN, SUITE 1050, IRVINE CA 92612
David E Snyder officer: Chief Financial Officer 610 NEWPORT CENTER DRIVE, SUITE 1150, NEWPORT BEACH CA 92660
Stacie K Yamane officer: Chief Accounting Officer 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
William Petak director 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Eric Smith director 620 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660

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