As of September 30, 2024, Pacific Oak Strategic Opportunity REIT, Inc. reported total assets of $1,109.3 million, a significant decrease from $1,388.1 million at the end of 2023. The decline in total assets was primarily driven by a reduction in real estate held for investment, which fell to $917.9 million from $978.2 million. Additionally, real estate held for sale decreased sharply to $4.5 million from $116.6 million. Total stockholders' equity also saw a substantial drop, declining to $95.4 million from $262.1 million.
For the third quarter of 2024, rental income was $30.2 million, down from $31.9 million in the same period of 2023. Total revenues for Q3 2024 were $32.4 million, compared to $35.8 million in Q3 2023. Over the nine months ended September 30, 2024, total revenues decreased to $101.2 million from $109.9 million in the prior year. The company reported a net loss before income taxes of $(45.7) million for Q3 2024, an improvement from $(62.5) million in Q3 2023. However, the net loss for the nine months increased to $(168.4) million from $(136.1) million in the previous year.
General and administrative expenses rose to $2.3 million for Q3 2024, up from $2.0 million in Q3 2023. Total expenses for Q3 2024 were $76.2 million, down from $85.1 million in the prior year. The company recognized impairment charges on real estate of $15.8 million for Q3 2024, a decrease from $28.3 million in Q3 2023.
The company’s strategic developments included the consolidation of nine office complexes totaling approximately 3.2 million rentable square feet, with an occupancy rate of 66%. The residential home portfolio, consisting of 2,145 homes, maintained a 94% occupancy rate. The company also reported proceeds from the sale of real estate totaling $87.4 million for the nine months ended September 30, 2024, compared to $40.9 million in the same period of 2023.
As of September 30, 2024, the company had $943.2 million in outstanding debt obligations, with $254.2 million due within one year. Management plans to address these obligations through refinancing, extension options, or selling real estate equity securities. The company is also in negotiations for loans that have matured and are in technical default.
In terms of market performance, the company recognized unrealized gains on real estate equity securities of $8.7 million for Q3 2024, contrasting with a loss of $3.3 million in Q3 2023. The fair value of impaired real estate increased to $338.3 million as of September 30, 2024, reflecting ongoing challenges in market conditions.
About Pacific Oak Strategic Opportunity REIT, Inc.
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