Exhibit 99.2
PACIFIC OAK SOR (BVI) HOLDINGS, LTD.
PRESENTATION OF SEPARATE FINANCIAL DATA FROM THE
CONSOLIDATED FINANCIAL STATEMENTS ATTRIBUTABLE TO THE COMPANY
June 30, 2022 (Unaudited)
PACIFIC OAK SOR (BVI) HOLDINGS, LTD.
PRESENTATION OF SEPARATE FINANCIAL DATA
FROM THE CONSOLIDATED FINANCIAL STATEMENTS
ATTRIBUTABLE TO THE COMPANY
AS OF JUNE 30, 2022
(UNAUDITED)
U.S. DOLLARS IN THOUSANDS
INDEX
Page | |||||
Special Report Presented Pursuant to Regulation 38d | 2 | ||||
Financial Information from the Consolidated Statements of Financial Position Attributable to the Company | 3 | ||||
Financial Information from the Consolidated Statements of Profit or Loss Attributable to the Company | 4 | ||||
Financial Information from the Consolidated Statements of Cash Flows Attributable to the Company | 5 | ||||
Additional Information | 6 |
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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 Group's consolidated financial statements as of June 30, 2022, 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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PACIFIC OAK SOR (BVI) HOLDNGS, LTD.
Financial Information from the Consolidated Statements of Financial Position Attributable to the Company
June 30, | December 31, | |||||||||||||||||||
2022 | 2021 | 2021 | ||||||||||||||||||
Unaudited | Audited | |||||||||||||||||||
U.S. dollars in thousands | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Non-current assets | ||||||||||||||||||||
Investments in investees | $ | 1,306,356 | $ | 1,175,151 | $ | 1,261,541 | ||||||||||||||
Restricted cash | 7,046 | 6,521 | 5,900 | |||||||||||||||||
1,313,402 | 1,181,672 | 1,267,441 | ||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | 56,333 | 42,518 | 6,137 | |||||||||||||||||
Derivative asset | — | — | 22 | |||||||||||||||||
56,333 | 42,518 | 6,159 | ||||||||||||||||||
Total assets | $ | 1,369,735 | $ | 1,224,190 | $ | 1,273,600 | ||||||||||||||
EQUITY | $ | 1,042,725 | $ | 949,057 | $ | 1,008,076 | ||||||||||||||
NON-CURRENT LIABILITIES | ||||||||||||||||||||
Debentures, net | 315,634 | 171,197 | 258,773 | |||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities | 5,832 | 4,256 | 4,672 | |||||||||||||||||
Debentures, net | — | 97,864 | — | |||||||||||||||||
Derivative liability | — | 339 | — | |||||||||||||||||
Due to Owner | 5,544 | 1,477 | 2,079 | |||||||||||||||||
11,376 | 103,936 | 6,751 | ||||||||||||||||||
Total liabilities | 327,010 | 275,133 | 265,524 | |||||||||||||||||
Total equity and liabilities | $ | 1,369,735 | $ | 1,224,190 | $ | 1,273,600 |
The accompanying notes are an integral part of the condensed interim financial data.
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PACIFIC OAK SOR (BVI) HOLDNGS, LTD.
Financial Information from the Consolidated Statements of Profit or Loss Attributable to the Company
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | ||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2021 | ||||||||||||||||||||||||||||
Unaudited | Audited | |||||||||||||||||||||||||||||||
U.S. dollars in thousands | ||||||||||||||||||||||||||||||||
Share of profit from investees, net | $ | 40,619 | $ | 32,577 | $ | 26,633 | $ | 3,588 | $ | 146,798 | ||||||||||||||||||||||
Asset management fees to affiliate | (6,315) | (7,380) | (3,187) | (3,528) | (14,012) | |||||||||||||||||||||||||||
General and administrative expenses | (2,914) | (2,134) | (1,581) | (1,495) | (4,776) | |||||||||||||||||||||||||||
Operating income (loss) | 31,390 | 23,063 | 21,865 | (1,435) | 128,010 | |||||||||||||||||||||||||||
Finance expense | (7,843) | (6,620) | (4,327) | (3,486) | (13,709) | |||||||||||||||||||||||||||
Finance income | 4 | 5 | 2 | 3 | 8 | |||||||||||||||||||||||||||
Foreign currency transaction adjustments, net | 31,097 | 2,839 | 23,832 | (5,507) | (7,446) | |||||||||||||||||||||||||||
Net income (loss) | $ | 54,648 | $ | 19,287 | $ | 41,372 | $ | (10,425) | $ | 106,863 | ||||||||||||||||||||||
Total comprehensive income (loss) | $ | 54,648 | $ | 19,287 | $ | 41,372 | $ | (10,425) | $ | 106,863 |
The accompanying notes are an integral part of the condensed interim financial data.
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PACIFIC OAK SOR (BVI) HOLDNGS, LTD.
Financial Information from the Consolidated Statements of Cash Flows Attributable to the Company
Six months ended June 30, | Three months ended June 30, | Year ended December 31, | ||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2021 | ||||||||||||||||||||||||||||
Unaudited | Audited | |||||||||||||||||||||||||||||||
U.S. dollars in thousands | ||||||||||||||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||||||||||||||
Net income (loss) for the period | $ | 54,648 | $ | 19,287 | $ | 41,372 | $ | (10,425) | $ | 106,863 | ||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||
Share of (profit) loss from investees | (40,619) | (32,577) | (26,633) | (3,588) | (146,798) | |||||||||||||||||||||||||||
Finance expense | 7,843 | 6,620 | 4,327 | 3,486 | 13,709 | |||||||||||||||||||||||||||
Distribution from investees, net | 18,860 | 28,497 | 7,777 | 14,134 | 53,904 | |||||||||||||||||||||||||||
Foreign currency transaction adjustments, net | (31,097) | (2,839) | (23,832) | 5,507 | 7,446 | |||||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | 1,055 | 79 | 1,010 | 43 | 67 | |||||||||||||||||||||||||||
Restricted cash for operational expenditures | (396) | (361) | (415) | (3) | (283) | |||||||||||||||||||||||||||
Due to Owner | 3,465 | (1,568) | 1,486 | (3,870) | (966) | |||||||||||||||||||||||||||
Net cash provided by operating activities | 13,759 | 17,138 | 5,092 | 5,284 | 33,942 | |||||||||||||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||||||||||||||
Distribution (to) from investees, net | (23,056) | 16,271 | (25,773) | (25,236) | 20,138 | |||||||||||||||||||||||||||
Proceeds from termination of derivative financial instrument | — | — | — | — | 1,198 | |||||||||||||||||||||||||||
Net cash (used in) provided by investing activities | (23,056) | 16,271 | (25,773) | (25,236) | 21,336 | |||||||||||||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||||||||||||||
Proceeds from debentures | 90,988 | 74,232 | 90,988 | — | 256,894 | |||||||||||||||||||||||||||
Payments of deferred financing costs | (1,919) | (923) | (1,919) | — | (6,121) | |||||||||||||||||||||||||||
Principal payments on debentures | — | (58,889) | — | — | (264,089) | |||||||||||||||||||||||||||
Interest paid | (5,228) | (5,285) | — | — | (8,363) | |||||||||||||||||||||||||||
(Funding) release of restricted cash for debt service obligations | (1,877) | — | (1,877) | — | 943 | |||||||||||||||||||||||||||
Distribution to Owner | (20,000) | (11,758) | (8,750) | (10,608) | (41,758) | |||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 61,964 | (2,623) | 78,442 | (10,608) | (62,494) | |||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (2,471) | (224) | (2,335) | 1,411 | 1,397 | |||||||||||||||||||||||||||
Increase (decrease) in cash | 50,196 | 30,562 | 55,426 | (29,149) | (5,819) | |||||||||||||||||||||||||||
Cash, beginning of the period | 6,137 | 11,956 | 907 | 71,667 | 11,956 | |||||||||||||||||||||||||||
Cash, end of the period | $ | 56,333 | $ | 42,518 | $ | 56,333 | $ | 42,518 | $ | 6,137 |
The accompanying notes are an integral part of the condensed interim financial data.
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PACIFIC OAK SOR (BVI) HOLDNGS, LTD.
Additional Information
U.S. dollars in thousands
NOTE 1: BASIS OF PREPARATION
Separate financial information is prepared in a condensed format as of June 30, 2022 and for the three and 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, 2021 and for the year then ended and the information accompanying notes (hereinafter - the annual consolidated financial statements).
As of June 30, 2022, the Company had a working capital of $45.0 million, primarily attributed to the additional Series B Debentures issued during the six months ended June 30, 2022. See Note 2 for additional details.
NOTE 2: SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
Additional Series B Debentures Issuance
On May 2, 2022, the Company raised approximately $95.3 million (approximately 320.4 million Israeli new Shekels at a price of 0.96 for every 1) of additional Series B Debentures to Israeli investors pursuant to a private offering registered with the Israel Securities Authority. The Series B Debentures would be identical in the terms and pari passu to the existing bonds.
Series B Debentures
The Series B Debentures contains the following covenants: (i) Consolidated Equity Capital of the Company (not including minority rights) shall not be less than USD 475 million; (ii) the Net Adjusted Financial Debt to Net Adjusted Cap (shall not exceed a rate of 75%); (iii) Adjusted NOI shall be no lower than USD 35 million; and (iv) the consolidated scope of the projects for development of the Company shall not exceed 10% of the adjusted balance. As of June 30, 2022, the Company was in compliance with all covenants under the deed of trust of the Series B Debentures; (i) Consolidated Equity Capital of the Company as of June 30, 2022 was $1.1 billion; (ii) the Net Adjusted Debt to Net Adjusted Cap was 51%; (iii) the Adjusted NOI was $86.0 million for the trailing twelve months ended June 30, 2022; and (iv) the consolidated scope of projects was $0 as of June 30, 2022.
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