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Pacific Oak Strategic Opportunity REIT, Inc. was formed on October 8, 2008 as a Maryland corporation, elected to be taxed as a real estate investment trust ( REIT ) beginning with the taxable year ended December 31, 2010 and intends to operate in such manner. As used herein, the terms we, our and us refer to Pacific Oak Strategic Opportunity REIT, Inc. and as required by context, Pacific Oak St…
The business is unprofitable at the operating level (-121.44% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 8.2% YoY. Margins deteriorated 139.1pp alongside, both lines moving the wrong way.
ROIC dropped from 5.50% to -58.19%, capital efficiency is deteriorating. Negative free cash flow of -$58M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$124M
▼ -8.2% YoY
Net Income (TTM)
-$181M
▲ +30.0% YoY
Op. Margin
-279.84%
▼ -139.1pp YoY
ROIC
-297.87%
▼ -63.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$48M
▼ -19.5% YoY
Op. Cash Flow (TTM)
-$33M
▼ -24.7% YoY
Net Debt
-$10M
Net Cash Position
Cash & Equiv.
$20M
5Y CAGR: +7.5%
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