# EDGAR Filing Document

**Accession Number:** 0001452936
**File Stem:** 0001452936-25-000121
**Filing Date:** 2025-12
**Character Count:** 98418
**Document Hash:** d37240b15b8ce3fa4ad560a8c10214ce
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001452936-25-000121.hdr.sgml**: 20251202

**ACCESSION NUMBER**: 0001452936-25-000121

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251130

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251202

**DATE AS OF CHANGE**: 20251201

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Pacific Oak Strategic Opportunity REIT, Inc.
- **CENTRAL INDEX KEY:** 0001452936
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 263842535
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-54382
- **FILM NUMBER:** 251541134

**BUSINESS ADDRESS:**
- **STREET 1:** 3200 PARK CENTER DR
- **STREET 2:** SUITE 800
- **CITY:** COSTA MESA
- **STATE:** CA
- **ZIP:** 92626
- **BUSINESS PHONE:** 866-722-6257

**MAIL ADDRESS:**
- **STREET 1:** 3200 PARK CENTER DR
- **STREET 2:** SUITE 800
- **CITY:** COSTA MESA
- **STATE:** CA
- **ZIP:** 92626

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KBS Strategic Opportunity REIT, Inc.
- **DATE OF NAME CHANGE:** 20081230

?xml version='1.0' encoding='ASCII'? pacoaksor-20251130

    

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**__________________**

**FORM 8-K**

**__________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of**

**The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): November 30, 2025

**PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.**

(Exact name of registrant specified in its charter)

**______________________________________________________**

---

| | | |
|:---|:---|:---|
| **Maryland** | **000-54382** | **26-3842535** |
| (State or other jurisdiction of<br>incorporation or organization) | (Commission File Number) | (IRS Employer<br>Identification No.) |

---

**3200 Park Center Dr., Suite 800** 

**Costa Mesa, California 92626**

(Address of principal executive offices)

Registrant's telephone number, including area code: **(866) 722-6257**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> <u>None</u> <u>N/A</u> <u>N/A</u>

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

    

------

**ITEM 7.01 REGULATION FD DISCLOSURE**

*Financial Statements - Exhibits 99.1 and 99.2*

Pacific Oak SOR (BVI) Holdings, Ltd. (the "BVI"), a wholly-owned subsidiary of Pacific Oak Strategic Opportunity REIT, Inc. (the "Company"), completed offerings of Series B and D bonds since February 2020. Such offerings were made to investors in Israel and were registered with the Israel Securities Authority. Consequently, the BVI is required to prepare and file with the Israel Securities Authority certain financial statements prepared in accordance with International Financial Reporting Standards ("IFRS").

On November 30, 2025, the BVI filed IFRS consolidated and separate interim financial statements. The English translations of the IFRS consolidated and separate interim financial statements, as of and for the three and nine months ended September 30, 2025, are attached as Exhibits 99.1 and 99.2, respectively, to this Form 8-K.

The information in this Item 7.01 of Form 8-K and the attached Exhibits 99.1 and 99.2 are furnished to the Securities and Exchange Commission ("SEC"), and shall not be deemed to be "filed" with the SEC for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

**ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS**

---

| | |
|:---|:---|
| **(d)**<br>**Ex.** | **Exhibits**<br>**Description** |
| 99.1 | <u>[Pacific Oak SOR (BVI) Holdings, Ltd. Consolidated Interim Financial Statements as of September 30, 2025 (unaudited)](bviq32025ex991.htm)</u> |
| 99.2 | <u>[Pacific Oak SOR (BVI) Holdings, Ltd. Separate Interim Financial Statements as of September 30, 2025 (unaudited)](bviq32025ex992.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.** | **PACIFIC OAK STRATEGIC OPPORTUNITY REIT, INC.** |
| Dated: December 1, 2025 | BY: | /S/ PETER MCMILLAN III |
| | | **Peter McMillan III** |
| | | *Chairman of the Board, President and Director* |
| | | (principal financial officer) |

---

## Exhibit 99.1

**<u>Exhibit 99.1</u>**

**This English translation is for convenience purposes only. This is not an official translation and is not<br>binding. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the original Hebrew version. In the event of any discrepancy between the Hebrew version and this translation, the Hebrew version shall prevail.**

**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

**AS OF SEPTEMBER 30, 2025**

**UNAUDITED**

**U.S. DOLLARS IN THOUSANDS**

**INDEX**

---

| | |
|:---|:---|
| | &nbsp;&nbsp;&nbsp;**Page** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Condensed Consolidated Statements of Financial Position** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Condensed Consolidated Statements of Profit or Loss** | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Condensed Consolidated Statements of Equity** | **4-5** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Condensed Consolidated Statements of Cash Flows** | **6-7** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Notes to Interim Condensed Consolidated Financial Statements** | **8-20** |

---

**- - - - - - - - - - - - - - - - - - -**

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

---

| | | | |
|:---|:---|:---|:---|
| | **September 30,** | **September 30,** | |
| | **2025** | **2024** | **December 31,**<br>**2024** |
| | **Unaudited** | **Unaudited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| **ASSETS** |  |  |  |
| **CURRENT ASSETS** |  |  |  |
| Cash and cash equivalents | $19699 | $18786 | $55856 |
| Financial assets at fair value through profit or loss | 14758 | 17325 | 13154 |
| Rents and other receivables, net | 5168 | 2892 | 2201 |
| Prepaid expenses and other assets | 3611 | 5524 | 4179 |
| Due from affiliate | 2317 |  |  |
| Restricted cash | 51109 | 16164 | 25486 |
|  | 96662 | 60691 | 100876 |
| Investment properties held for sale | 58475 |  |  |
|  | 155137 | 60691 | 100876 |
| **NON-CURRENT ASSETS** |  |  |  |
| Investment properties | 860067 | 1322496 | 1157945 |
| Property plant and equipment - hotel, net | 23500 | 33016 | 33624 |
| Investment in joint ventures | 142924 | 164822 | 177375 |
| Restricted cash |  | 9261 | 16890 |
| Goodwill |  | 949 | 949 |
|  | 1026491 | 1530544 | 1386783 |
| **Total assets** | $1181628 | $1591235 | $1487659 |
| **LIABILITIES AND EQUITY** |  |  |  |
| **CURRENT LIABILITIES** |  |  |  |
| Notes payable, net | $510826 | $125300 | $157316 |
| Bonds payable, net | 290276 | 20205 | 20653 |
| Accounts payable and accrued liabilities | 24289 | 25018 | 27996 |
| Due to affiliates | 19872 | 12524 | 12660 |
| Other liabilities | 14312 | 20876 | 18516 |
|  | 859575 | 203923 | 237141 |
| Liabilities related to investment properties held for sale | 71394 |  |  |
|  | 930969 | 203923 | 237141 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| Lease obligation | 9286 | 9248 | 8912 |
| Other liabilities | 24770 | 14037 | 26380 |
| Notes payable, net |  | 435840 | 388582 |
| Bonds payable, net |  | 345568 | 298741 |
|  | 34056 | 804693 | 722615 |
| **Total liabilities** | 965025 | 1008616 | 959756 |
| **EQUITY** |  |  |  |
| Owner's net equity | 215197 | 579124 | 523989 |
| Non-controlling interests | 1406 | 3495 | 3914 |
| **Total equity** | 216603 | 582619 | 527903 |
| **Total liabilities and equity** | $1181628 | $1591235 | $1487659 |

---

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

---

| | | | |
|:---|:---|:---|:---|
| November 30, 2025 | /s/ Ryan Schluttenhofer | /s/ Peter McMillan III | /s/ Keith David Hall |
| Date of approval of | Schluttenhofer, Ryan | McMillan III, Peter | Hall, Keith David |
| financial statements | Chief Accounting Officer | President and Director authorized by the Company's Board of Directors to execute the financial statements | Chief Executive Officer |

---

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine months ended September 30,** | **Nine months ended September 30,** | **Three months ended September 30,** | **Three months ended September 30,** | |
| | **2025** | **2024** | **2025** | **2024** | **Year ended December 31,** <br>**2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| Revenues and other income: |  |  |  |  |  |
| Rental income | $78170 | $86077 | $24476 | $28462 | $112567 |
| Tenant reimbursements | 8680 | 8623 | 2705 | 3001 | 11672 |
| Hotel revenues | 5622 | 6225 | 1000 | 1186 | 9061 |
| Other operating income | 1376 | 1422 | 444 | 461 | 1899 |
| Total revenues and other income | 93848 | 102347 | 28625 | 33110 | 135199 |
| Expenses: |  |  |  |  |  |
| Operating, maintenance, and management fees | (33684) | (35639) | (10382) | (12694) | (48572) |
| Real estate taxes and insurance | (15466) | (18648) | (4563) | (5617) | (23410) |
| Hotel expenses | (4619) | (5018) | (1246) | (1361) | (6877) |
| Total expenses | (53769) | (59305) | (16191) | (19672) | (78859) |
| Gross profit | 40079 | 43042 | 12434 | 13438 | 56340 |
| Fair value adjustment of investment properties, net | (208801) | (109641) | (97591) | (29881) | (123140) |
| Depreciation | (794) | (864) | (246) | (292) | (1178) |
| Equity in loss of unconsolidated joint ventures, net | (34451) | (45639) | (30151) | (36358) | (49226) |
| Asset management fees | (11060) | (11946) | (3673) | (3972) | (15622) |
| Impairment charges on goodwill | (949) |  | (949) |  |  |
| Impairment loss - hotel | (9361) | (6400) | (6190) | (2946) | (6400) |
| General and administrative expenses | (4408) | (6364) | (1531) | (1774) | (7425) |
| Operating loss | (229745) | (137812) | (127897) | (61785) | (146651) |
| Finance income (loss) from financial assets at fair value through profit or loss | 1604 | (7824) | 642 | 8727 | (11995) |
| Finance expenses, net | (53109) | (55361) | (19815) | (20579) | (71892) |
| Foreign currency transaction (loss) gain, net | (30063) | 6724 | (5906) | (4556) | (3156) |
| Other income | 1268 | 1117 | 252 | 379 | 1764 |
| Loss on extinguishment of debt, net | (1045) |  | (1045) |  | (6033) |
| Net loss before income taxes | $(311090) | $(193156) | $(153769) | $(77814) | (237963) |
| Income tax benefit (provision) |  |  | 830 |  | (10000) |
| Net loss | $(311090) | $(193156) | $(152939) | $(77814) | $(247963) |
| Net loss attributable to owner | $(308792) | $(188042) | $(150902) | $(75734) | $(243177) |
| Net loss attributable to non-controlling interests | (2298) | (5114) | (2037) | (2080) | (4786) |
| Net loss | $(311090) | $(193156) | $(152939) | $(77814) | $(247963) |
| Total comprehensive loss | $(311090) | $(193156) | $(152939) | $(77814) | $(247963) |

---

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**CONDENSED CONSOLIDATED STATEMENTS OF EQUITY**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Owner contributions** | **Retained earnings (deficit)** | **Paid-in Capital resulting from transactions with non-controlling interests** | **Owner's net equity** | **Non-controlling interests** | **Total equity** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| Balance as of January 1, 2025 | $693554 | $(212639) | $43074 | $523989 | $3914 | $527903 |
| Net loss |  | (308792) |  | (308792) | (2298) | (311090) |
| Total comprehensive loss |  | (308792) |  | (308792) | (2298) | (311090) |
| Noncontrolling interest contribution |  |  |  |  | 35 | 35 |
| Noncontrolling interest distributions |  |  |  |  | (245) | (245) |
| Balance as of September 30, 2025 | $693554 | $(521431) | $43074 | $215197 | $1406 | $216603 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Owner contributions** | **Retained earnings** | **Paid-in Capital resulting from transactions with non-controlling interests** | **Owner's net equity** | **Non-controlling interests** | **Total equity** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| Balance as of January 01, 2024 | $693554 | $35538 | $43074 | $772166 | $10724 | $782890 |
| Net loss |  | (188042) |  | (188042) | (5114) | (193156) |
| Total comprehensive loss |  | (188042) |  | (188042) | (5114) | (193156) |
| Distributions to owner |  | (5000) |  | (5000) |  | (5000) |
| Noncontrolling interest contributions |  |  |  |  | 493 | 493 |
| Noncontrolling interest distribution |  |  |  |  | (2608) | (2608) |
| Balance as of September 30, 2024 | $693554 | $(157504) | $43074 | $579124 | $3495 | $582619 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Owner contributions** | **Retained earnings (deficit)** | **Paid-in Capital resulting from transactions with non-controlling interests** | **Owner's net equity** | **Non-controlling interests** | **Total equity** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| Balance as of July 1, 2025 | $693554 | $(370529) | $43074 | $366099 | $3418 | $369517 |
| Net loss |  | (150902) |  | (150902) | (2037) | (152939) |
| Total comprehensive loss |  | (150902) |  | (150902) | (2037) | (152939) |
| Noncontrolling interest contribution |  |  |  |  | 25 | 25 |
| Balance as of September 30, 2025 | $693554 | $(521431) | $43074 | $215197 | $1406 | $216603 |

---

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (CONTINUED)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Owner contributions** | **Retained earnings** | **Paid-in Capital resulting from transactions with non-controlling interests** | **Owner's net equity** | **Non-controlling interests** | **Total equity** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| Balance as of July 1, 2024 | $693554 | $(81770) | $43074 | $654858 | $7816 | $662674 |
| Net loss |  | (75734) |  | (75734) | (2080) | (77814) |
| Total comprehensive loss |  | (75734) |  | (75734) | (2080) | (77814) |
| Distribution to owner |  |  |  |  |  |  |
| Noncontrolling interest contribution |  |  |  |  | 96 | 96 |
| Noncontrolling interest distribution |  |  |  |  | (2337) | (2337) |
| Balance as of September 30, 2024 | $693554 | $(157504) | $43074 | $579124 | $3495 | $582619 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Owner contributions** | **Retained earnings** | **Paid-in Capital resulting from transactions with non-controlling interests** | **Owner's net equity** | **Non-controlling interests** | **Total equity** |
| | **Audited** | **Audited** | **Audited** | **Audited** | **Audited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| Balance as of January 01, 2024 | $693554 | $35538 | $43074 | $772166 | $10724 | $782890 |
| Net loss |  | (243177) |  | (243177) | (4786) | (247963) |
| Total comprehensive loss |  | (243177) |  | (243177) | (4786) | (247963) |
| Distributions to owner |  | (5000) |  | (5000) |  | (5000) |
| Noncontrolling interests contributions |  |  |  |  | 584 | 584 |
| Noncontrolling interests distributions |  |  |  |  | (2608) | (2608) |
| Balance as of December 31, 2024 | $693554 | $(212639) | $43074 | $523989 | $3914 | $527903 |

---

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine months ended September 30,** | **Nine months ended September 30,** | **Three months ended September 30,** | **Three months ended September 30,** | |
| | **2025** | **2024** | **2025** | **2024** | **Year ended**<br>**December 31,** <br>**2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| <u>Cash Flows from Operating Activities:</u> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(311090) | $(193156) | $(152939) | $(77814) | $(247963) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in loss of joint ventures, net | 34451 | 45639 | 30151 | 36358 | 49226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value adjustment on investment properties, net | 208801 | 109641 | 97591 | 29881 | 123140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 794 | 864 | 245 | 292 | 1178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss - hotel | 9361 | 6400 | 6190 | 2946 | 6400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment charges on goodwill | 949 |  | 949 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax (benefit) provision |  |  | (830) |  | 10000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred rent | 1158 | (815) | 54 | (490) | (859) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit loss on financial assets | 1780 | 1819 | 1756 | 921 | 2682 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance expenses, net | 53109 | 55361 | 19815 | 20579 | 71892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | (1268) | (1117) | (252) | (379) | (1764) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 1045 |  | 1045 |  | 6033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance (income) loss from financial assets at fair value through profit or loss | (1604) | 7824 | (642) | (8727) | 11995 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain), net | 30063 | (6724) | 5906 | 4556 | 3156 |
|  | 27549 | 25736 | 9039 | 8123 | 35116 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | (2650) | 14114 | (952) | 3709 | (154) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rents and other receivables, net | 2247 | (1345) | 4701 | (772) | (1517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 565 | (486) | 695 | 643 | 485 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (3055) | (3008) | 1047 | 96 | (1697) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to affiliates | (2788) | 3836 | (4780) | 950 | 4676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 49 | (1450) | (3801) | 2288 | 7264 |
|  | (5632) | 11661 | (3090) | 6914 | 9057 |
| Net cash provided by operating activities | 21917 | 37397 | 5949 | 15037 | 44173 |
| <u>Cash Flows from Investing Activities:</u> |  |  |  |  |  |
| Improvements to investment properties | (9157) | (22039) | (2699) | (4527) | (27512) |
| Proceeds from sales of investment properties, net | 34035 | 87411 | 32187 | 84285 | 242347 |
| Distribution of capital from joint venture | 757 | 1497 |  |  | 1497 |
| Advance to associate | (2317) |  |  |  |  |
| Other income received | 1268 | 1117 | 252 | 379 | 1764 |
| Payments for development obligations | (3012) | (7338) | (701) | (3433) | (11540) |
| Tax refund (paid) related to sales of investment properties |  |  | 830 |  | (10000) |
| Contributions to joint ventures |  | (63376) |  | (24687) | (79530) |
| Proceeds from the sale of investments in financial assets at fair value through profit or loss, net |  | 16379 |  |  | 16379 |
| Purchase of interest rate caps |  | (1447) |  |  | (1447) |
| Proceeds from interest rate caps |  | 2439 |  | 752 | 2813 |
| Payments on foreign currency derivatives, net |  | (478) |  |  | (478) |
| Dividend income received from financial assets at fair value through profit or loss |  | 81 |  |  | 81 |
| Proceeds for development obligations |  | 5 |  |  | 16461 |
| Net cash provided by investing activities | 21574 | 14251 | 29869 | 52769 | 150835 |

---

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine months ended September 30,** | **Nine months ended September 30,** | **Three months ended September 30,** | **Three months ended September 30,** | |
| | **2025** | **2024** | **2025** | **2024** | **Year ended** <br>**December 31,** <br>**2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| <u>Cash Flows from Financing Activities:</u> |  |  |  |  |  |
| Principal payments on notes and bonds payable | $(109260) | $(273173) | $(82696) | $(158004) | $(348667) |
| Payments of deferred financing costs and extinguishment of debt | (5172) | (6454) | (5005) | (2564) | (9813) |
| Interest paid | (48314) | (49136) | (21389) | (18646) | (60399) |
| (Distribution) release of restricted cash for debt service obligations | (5754) | 28692 | 505 | 13480 | 13962 |
| Noncontrolling interest contributions | 35 | 493 | 25 | 96 | 584 |
| Noncontrolling interest distributions | (245) | (2608) |  | (2337) | (2608) |
| Proceeds from loans from owner | 10000 |  |  |  |  |
| Proceeds from notes and bonds payable | 80000 | 179787 | 80000 | 80937 | 179787 |
| Distributions to owner |  | (5850) |  | (2000) | (6554) |
| Net cash used in financing activities | (78710) | (128249) | (28560) | (89038) | (233708) |
| Effect of exchange rate changes on cash and cash equivalents | (938) | 295 | (2009) | (406) | (536) |
| Net (decrease) increase in cash and cash equivalents | (36157) | (76306) | 5249 | (21638) | (39236) |
| Cash and cash equivalents, beginning of period | 55856 | 95092 | 14450 | 40424 | 95092 |
| Cash and cash equivalents, end of period | $19699 | $18786 | $19699 | $18786 | $55856 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <u>Supplemental Disclosure of Noncash Activities:</u> |  |  |  |  |  |
| Accrued development obligations | $8487 | $— | $8487 | $— | $12135 |
| Distribution payable to owner | $— | $704 | $— | $704 | $— |
| Asset management fee reimbursement payable to owner | $13917 | $10609 | $13917 | $10609 | $12006 |
| Deposit applied to sale of investment property | $— | $— | $— | $— | $9472 |

---

The accompanying notes are an integral part of the interim condensed consolidated financial statements.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 1:&nbsp;&nbsp;&nbsp;&nbsp;GENERAL INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.These financial statements have been prepared in a condensed format as of September 30, 2025 and for the nine and three months period then ended ("interim condensed consolidated financial statements"). These interim condensed consolidated financial statements should be read in conjunction with the Company's annual financial statements as of December 31, 2024 and for the year then ended and the accompanying notes ("annual financial statements").

The Company and its subsidiaries (the "Group") operate in the investment real estate industry in the United States, which includes mainly investment in office, residential real estate, and undeveloped lands. In addition, the Company invests in joint ventures and a real estate equity security. The Company has three reporting segments: 1) strategic opportunistic properties 2) residential homes and 3) hotel.

As of September 30, 2025, the Company consolidated six office complexes, encompassing, in the aggregate, approximately 1.8 million rentable square feet and these properties were 66% occupied. In addition, the Company owned one residential home portfolio consisting of 2,078 residential homes, and one apartment property, containing 317 units, which were 92% and 86% occupied, respectively. The Company also owned one hotel property with 196 rooms, three investments in undeveloped land with approximately 247 developable acres, and one office/retail development property, two investments in unconsolidated joint ventures and one financial asset at fair value through profit or loss. Additionally, the Company had two office complexes classified as held for sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Due to the increase in the interest rates and among other factors, the Company is experiencing liquidity difficulties with respect to certain financial covenant requirements, unable to refinance maturing debt in part or in full as it comes due and bear higher debt service costs and reduced yields relative to cost of debt. If the Company is unable to find alternative sources of financing, there is a possibility that the Company will not have sufficient funds to cover ongoing operating expenditures that may lead the Company to sell investment properties at values below their fair values. Based on interest rates as of September 30, 2025, if interest rates were 100 basis points higher or lower during the nine months ending September 30, 2025, the annualized interest expense on the Company's variable rate debt would increase or decrease by $4.0 million or $3.4 million, respectively.

In addition, tenants and potential tenants of the Company's properties may be adversely impacted by inflation and rising interest rates, which could negatively impact the Company's tenants' ability to pay rent and the demand for the Company's properties. Such adverse impacts on the Company's tenants may cause increased vacancies, which may add pressure to lower rents and increase the Company's expenditures for re-leasing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The financial condition of the Company and the going concern assumption.

As of September 30, 2025, the Company had a working capital shortfall amounting to $775.8 million, primarily attributed to loans maturing within a twelve month period from the date of the statement of financial position, including: (i) Series B and Series D bonds ("Series Bonds") of 975.3 million Israeli new shekels ($295.0 million as of September 30, 2025) and of which per the terms of the deed of trust, the bondholders have grounds for calling an immediate repayment of the bonds, (ii) mortgage loans related to our residential homes portfolio of $190.2 million (October 2025 - April 2026 maturities) of which the October 2025 loan of $31.8 million was extended to December 1, 2025 subsequent to September 30, 2025, (iii) a mortgage loan related to the Crown Pointe office building of $54.7 million (forbearance agreement until December 2025, lien released in November 2025 due to the property sale), (iv) mortgage loans in technical default of $150.8 million, and (v) mortgage loans in default of 33.7 million. Additionally,

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 1:&nbsp;&nbsp;&nbsp;&nbsp;GENERAL INFORMATION (CONTINUED)**

subsequent to September 30, 2025, a cross-collateralized mortgage loan of $152.6 million related to four investment properties was in technical default. As a result of the breaches and other factors, the Company may be obligated to dispose investment properties under forced-sale circumstances, which could result in proceeds that are lower, or materially lower, than their fair value as presented in the financial statements. Management estimates that these types of sales could result in discounts of approximately 10-35% below the than fair values.

As of September 30, 2025, the Company was non-compliant with the minimum consolidated equity requirement and Net Adjusted Financial Debt to Net Adjusted Cap covenants related to the Series Bonds. Additionally, on September 30, 2025, the Company's Series Bonds were downgraded from ilBBB to ilB by S&P Global Ratings Maalot Ltd. and this constitutes an event of default and as a result, the bondholders have the right to declare the Series Bonds of 975.3 million Israeli new shekels ($295.0 million as of September 30, 2025) immediately due and payable (Refer to Note 4 below for additional details). In July 2025, the Company completed a secured financing transaction of $80.0 million with WhiteHawk Capital Partners LP (the "WhiteHawk Loan") and as a result of completing this transaction, a trustee that represents the bondholders of the Series B and Series D bonds (the "Trustee"), issued a series of communications alleging potential breaches of duty, see below "Negotiations between the Company and the Trustee and the representatives of the holders of the Series B and Series D bonds of the Company (the "Bondholders")" for further details. Additionally, as a result of the downgrade on the Series Bonds, the Company also triggered an event of default with the WhiteHawk Loan of $80.0 million.

During the three and nine months ended September 30, 2025, the Company recognized fair value losses of investment properties (including as a result of the sale of an asset and/or the signing of sale agreements) of $97.6 million and $208.8 million, respectively, due to declines in market conditions and projected cash flows, including assumptions such as the intended hold period, market rental rates and leasing assumptions, changes in sales comparisons, and based on quoted prices. In addition, as noted above, a portion of the losses resulted from the expedited sale of investment properties at values lower than their fair value. Continued declines in fair values may limit our ability to sell assets or refinance debt at attractive terms and actual results could be significantly different from the estimates. The Company may also negotiate a turnover of one or more secured properties back to the related lender and remit payment for any associated loan guarantee.

The Company's residential homes portfolio is classified as Level 3 within the fair value hierarchy. In accordance with the accounting standards, the unit of measurement is the individual residential unit rather than the portfolio as a whole. Accordingly, the valuations are performed by measuring the fair value of each individual residential unit. It should be noted that a market participant evaluating a single residential home property may not apply the same portfolio-level discounts that another market participant would require when acquiring the portfolio, where the weighted average cost of capital, including current market costs of debt and equity, would more directly influence pricing. Management estimates that if the residential homes will be sold as a portfolio, rather than as separate residential units, the expected proceeds may reflect a portfolio discount of approximately 10% to 25% relative to the value of the individual unit as reflected in the financial statements. Additionally, during the three and nine months ended September 30, 2025, the Company recognized impairment loss - hotel of $6.2 million and $9.4 million, respectively related to the Q&C Hotel due to declines in market conditions. To meet its repayment obligations in the coming year as mentioned above, the Company expects to generate cash flow from ongoing operations, additional sales of investment properties (including investments in unconsolidated joint ventures) and securities, and refinance loans. During October 2025, the Company entered into an amended Purchase and Sale Agreement for the Richardson office and undeveloped land assets for a sales price of $26.0 million

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 1:&nbsp;&nbsp;&nbsp;&nbsp;GENERAL INFORMATION (CONTINUED)**

and in September 2025, the Company entered into a Purchase and Sale Agreement for Crown Pointe for a sales price of $38.0 million. Refer to Note 6 and 7 for additional details on these real estate transactions.

As of the date the condensed consolidated financial statements are issued, in order for the Company to continue its regular operations, several actions will need to be completed in the near term, including debt refinancing and real estate sales, all of which are subject to approval under the Standstill and other third-party approvals. These plans are subject to change based on market conditions in the commercial real estate lending environment, the current interest rate environment, leasing and transaction volume challenges in certain markets, successful negotiations with the Trustee and Representatives, and such plans are not within the control of the Company, and therefore, there is no assurance that the Company will be successful in implementing its plans and fulfill existing and projected its obligations upon maturity. The uncertainty regarding the Company's plans could be mitigated through the potential sale of its residential home portfolio, successful negotiations with the Trustee and Representatives, and other strategic actions currently under consideration. Since the plans mentioned above are not within the control of the Company and subject to approval of third parties, including consents from bondholders and other lenders, the Company's management and the Board of Directors have concluded that there are significant doubts regarding the Company's ability to continue as a going concern.

No adjustments were made to the financial statements to the values or classifications of assets and liabilities that might be necessary if the Company is unable to continue operating as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.Class Action Suit**

On September 10, 2025, a bondholder filed a petition for certification of a class action in the Tel Aviv District Court, Israel against the Company and certain members of its board of directors, alleging that disclosures relating to the Company were misleading and caused investor harm. The petition states an individual claim amount in excess of 2.5 million Israeli new shekels ($0.8 million as of September 30, 2025) and cites the petitioner's expert model estimating potential class-wide damages of approximately 124.6–145.2 million Israeli new shekels ($37.6-43.9 million as of September 30, 2025). The matter is at a preliminary stage; the court has not ruled on class certification or on the merits and based on the Company's legal counsel, the potential outcome cannot be determined, nor can the chances of the petition being approved be reliably assessed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.Negotiations between the Company and the Trustee and the representatives of the holders of the Series B and Series D bonds of the Company (the "Bondholders").**

The following is a summary of the main actions and the decisions that were carried out and made in the framework of the aforementioned negotiations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Postponement of the call for immediate repayment of Company's debentures**

On November 17, 2025, the Bondholders resolved to refrain from calling the Series Bonds for immediate repayment.

On November 17, 2025, Bondholders resolved to instruct the Trustee convene, by November 30, 2025, an assembly of holders of the Series Bonds to decide on the matter of calling the aforementioned debentures for immediate repayment.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 1:&nbsp;&nbsp;&nbsp;&nbsp;GENERAL INFORMATION (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Rejection of a transaction for the sale of residential homes** 

On September 28, 2025, the Bondholders failed to approve a transaction for the sale of 1,799 residential homes from the Company's residential homes portfolio, as well as Company's proposal to proceed with a transaction for the sale of 281 residential homes located in Michigan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Proposals in principle for a settlement with the Bondholders**

On September 19, 2025, the Company published a proposal in principle for a settlement with the Bondholders. On October 15, 2025, the Company received a proposal in principle for a settlement from the representatives of the Bondholders (the "Representatives").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Founding a Board of Directors' committee to coordinate negotiations between the Company and representatives of the debenture holders**

On August 28, 2025, the Company's Board of Directors decided to form a committee, which includes the following members of the Board: Messrs. Peter McMillan III (Director and President of the Company), Keith Hall (Director and CEO of the Company), and Ron Hadassi (External Director) in favor of coordinating the negotiations between the Company and Representatives, alongside with the Pacific Oak Capital Advisors, LLC, the Company's advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Letter of commitment to Reznik Paz Nevo Trustees Ltd., the trustee for the Bondholders**

On August 26, 2025, the Company reported that a Letter of Commitment (the "Standstill") was signed in favor of Trustee and in favor of the Bondholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Decision to order negotiations in accordance with the debt settlement principles document**

On August 3, 2025, the meetings of the Bondholders have approved an instruction to the Trustee, the Representatives, and the Trustee's counsel and Bondholders to conduct negotiations with the Company for the purpose of reaching a debt arrangement on the basis of the debt settlement principles document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Decision to Notify the Company of the Objection of the Bondholders to the engagement in the Financing Agreement**

On July 27, 2025, the meetings of the Bondholders have approved a resolution to instruct the Trustee to notify the Company and the Company's officers that the Bondholders object to the Company entering the WhiteHawk Loan in which the Company ultimately entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.Appointment of Representatives**

**Appointment of a joint representation**

On July 21, 2025, the meetings of the Bondholders decided to appoint a joint representation for the Bondholders.

**Appointment of an American Advisor to the Joint Representation of the Trustee of the Debenture Series and the Holders of the Debenture Series**

On July 31, 2025, the meetings of the Bondholders have approved the appointment of Mr. Amir Jiris as an American counsel for the Joint Representation.

**Appointment of an American Legal Counsel for the Joint Representation**

On July 31, 2025, the meetings of the Bondholders have approved the appointment of Adv. Michael Friedman of the law firm Chapman and Cutler LLP as an American legal counsel for the Joint Representation.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 1:&nbsp;&nbsp;&nbsp;&nbsp;GENERAL INFORMATION (CONTINUED)**

**Appointment of Legal Advisor to the Trustee, the Bondholders and the Joint Representation**

On July 28, 2025, the meetings of the Bondholders approved the appointment of a legal advisor for the joint representation of the Trustee and Representatives (the "Joint Representation"). The candidates who received the most votes in aggregate were Adv. Raanan Kalir and Adv. Alon Binyamini of Erdinast, Ben Nathan, Toledano & Co.

**Appointment of a member of the Joint Representation**

On July 28, 2025, the meetings of the Bondholders have decided that the Joint Representation. At those meetings, the candidate who received the most votes in aggregate was Mr. Ofer Gazit.

**NOTE 2:&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT ACCOUNTING POLICY**

Basis of presentation of the interim condensed consolidated financial statements:

The interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for the preparation of financial statements for interim periods, as prescribed in IAS 34, "Interim Financial Reporting", and in accordance with the disclosure requirements of Chapter D of the Securities Regulations (Periodic and Immediate Reports), 1970.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the annual consolidated financial statements.

**NOTE 3:&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENT IN JOINT VENTURES**

As of September 30, 2025, the Company's investment in joint ventures was composed of the following (dollars in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Properties as of September 30, 2025** | | | **Investment Balance as of** | **Investment Balance as of** | **Investment Balance as of** |
| | **Properties as of September 30, 2025** | | | **September 30,** | **September 30,** | **December 31, 2024** |
| | **Properties as of September 30, 2025** | | | **2025** | **2024** | **December 31, 2024** |
|<br><br>**Joint Venture** | **Properties as of September 30, 2025** |<br><br>**Location** |<br><br>**Ownership %** | **Unaudited** | **Unaudited** | **Audited** |
| 110 William Joint Venture | 1 | New York, New York | <sup>(1)</sup> | $109689 | $129629 | $142899 |
| Pacific Oak Opportunity Zone Fund I | 4 | Various | 47.0% | 33235 | 35193 | 34476 |
|  |  |  |  | $142924 | $164822 | $177375 |

---

_____________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)As of September 30, 2025, the Company owned 77.5% of preferred interest and 100% of common interest in the 110 William Joint Venture.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 3:&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENT IN JOINT VENTURES (CONTINUED)**

The equity in (loss) profit of joint ventures for the nine and three months ended September 30, 2025 and 2024 and the year ended December 31, 2024 was as follows (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Year ended December 31, 2024** |
| | **2025** | **2024** | **2025** | **2024** | **Year ended December 31, 2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| 110 William Joint Venture | $(33211) | $(46261) | $(28714) | $(36256) | $(49066) |
| Pacific Oak Opportunity Zone Fund I | (1240) | 622 | (1437) | (102) | (160) |
| Equity in loss of unconsolidated joint ventures, net | $(34451) | $(45639) | $(30151) | $(36358) | $(49226) |

---

*<u>110 William Joint Venture:</u>*

Summarized information about the statements of financial position and the statements of profit or loss of Pacific Oak SOR SREF III 110 William, LLC (100%) (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **September 30,** | **September 30,** | |
| | **2025** | **2024** | **December 31,**<br>**2024** |
| | **Unaudited** | **Unaudited** | **Audited** |
| Current assets | $7824 | $17381 | $8676 |
| Non-current assets (investment property) | 483808 | 403600 | 464900 |
| Current liabilities <sup>(1)</sup> | 369756 | 11489 | 23824 |
| Non-current liabilities |  | 248555 | 277558 |
| Equity | 121876 | 160937 | 172194 |
| Equity attributable to equity holders of the Company (Based on the waterfall mechanism) | $109689 | $129629 | $142899 |

---

_____________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)During the nine months ended September 30, 2025, the 110 William Joint Venture entered into a loan agreement for $21.0 million. The loan has an initial maturity date of July 5, 2026 with two annual extensions available and has an annual interest rate of one-month SOFR plus 15.0%.

In connection with the current liabilities described above, certain financial covenants apply to the Company's wholly owned subsidiary, Pacific Oak SOR Properties, the guarantor of the mezzanine loan. Based on preliminary calculations as of September 30, 2025, Pacific Oak SOR Properties did not comply with the minimum net worth covenant of $300 million, resulting in a technical default under the mezzanine loan agreement. The Company is engaged in discussions with the lender regarding a potential waiver, forbearance or amendment of this covenant, which may include, among other alternatives, the provision of additional collateral or a modification of the covenant calculation to reflect the joint venture interest, subject to the lender's approval.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 3:&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENT IN JOINT VENTURES (CONTINUED)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Year ended December 31, 2024** |
| | **2025** | **2024** | **2025** | **2024** | **Year ended December 31, 2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| Revenues | $10158 | $12010 | $3678 | $3945 | $15890 |
| Gross (loss) profit | (3083) | 212 | (1287) | (215) | (93) |
| Operating (loss) profit \*) | (35169) | (24463) | (33577) | (24901) | (24854) |
| Net loss \*) | (50320) | (38951) | (38171) | (29968) | (43834) |
| Share of equity in loss from joint venture (Based on the waterfall mechanism) | (33211) | (46261) | (28714) | (36256) | (49066) |
| \*) Includes revaluation of investment properties | $(31678) | $(24665) | $(31919) | $(24695) | $(24748) |

---

*<u>Pacific Oak Opportunity Zone Fund I:</u>*

Summarized information about the statements of financial position and the statements of profit or loss of Pacific Oak Opportunity Zone Fund 1, LLC (100%) (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **September 30,** | **September 30,** | |
| | **2025** | **2024** | **December 31,**<br>**2024** |
| | **Unaudited** | **Unaudited** | **Audited** |
| Current assets | $2190 | $2786 | $1970 |
| Non-current assets (investment properties) | 128218 | 130852 | 129133 |
| Current liabilities | 1195 | 1307 | 828 |
| Non-current liabilities | 57129 | 58386 | 57837 |
| Equity | 72084 | 74143 | 72438 |
| Equity attributable to equity holders of the Company (Based on the waterfall mechanism) | $33235 | $35193 | $34476 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Year ended December 31, 2024** |
| | **2025** | **2024** | **2025** | **2024** | **Year ended December 31, 2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| Revenues | $6855 | $6880 | $2746 | $2265 | $9184 |
| Gross profit | 3784 | 5738 | 1419 | 1759 | 7687 |
| Operating (loss) profit \*) | (611) | 2837 | (1017) | 632 | 1915 |
| Net (loss) profit \*) | (2627) | 1041 | (3011) | (201) | (479) |
| Share of (loss) profit from joint venture (Based on the waterfall mechanism) | (1240) | 622 | (1437) | (102) | (160) |
| \*) Includes revaluation of investment properties | $(2293) | $361 | $(2293) | $— | $(1359) |

---

The Company does not attach the financial statements related to the investment in joint ventures, as the report do not add more information to the contained above.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 3:&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENT IN JOINT VENTURES (CONTINUED)**

**353 Sacramento Joint Venture**

The Company previously suspended the equity method of accounting for the 353 Sacramento Joint Venture and in June 2025, the Company disposed its 353 Sacramento Joint Venture through a deed-in-lieu of foreclosure agreement with the lender.

**NOTE 4:&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL INSTRUMENTS** 

The following were the fair values of the Company's financial instruments as of September 30, 2025 and 2024, and December 31, 2024 (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **September 30,** | **September 30,** | |
| | **2025** | **2024** | **December 31,**<br>**2024** |
| | **Unaudited** | **Unaudited** | **Audited** |
| Notes payable | $582807 | $557592 | $540191 |
| Series Bonds | $196275 | $376094 | $329141 |
| Related party loan | $10000 | $— | $— |

---

The Series B bonds contain 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 September 30, 2025, the Company's covenant calculations are as follows: (i) Consolidated Equity Capital of the Company as of September 30, 2025 was $215.2 million, (ii) the Net Adjusted Debt to Net Adjusted Cap was 83.8%; (iii) the Adjusted NOI was $49.3 million for the trailing twelve months ended September 30, 2025; and (iv) the consolidated scope of projects was $0 as of September 30, 2025. The Company was not compliant with the Consolidated Equity Capital of the Company and Net Adjusted Financial Debt to Net Adjusted Cap covenants, as well as the bond rating covenant. The non-compliance of these covenants constitutes an event of default. Refer to Note 1 for additional information related to the default.

The Series D bonds contains the following covenants: (i) Consolidated Equity Capital of the Company (not including minority rights) shall not be less than USD 450 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. As of September 30, 2025, the Company's covenant calculations are as follows: (i) Consolidated Equity Capital of the Company as of September 30, 2025 was $215.2 million; (ii) the Net Adjusted Debt to Net Adjusted Cap was 83.8%; and (iii) the Adjusted NOI was $49.3 million for the trailing twelve months ended September 30, 2025. The Company was not compliant with the Consolidated Equity Capital of the Company and Net Adjusted Financial Debt to Net Adjusted Cap covenants, as well as the bond rating covenant. The non-compliance of these covenants constitutes an event of default. Refer to Note 1 for additional information related to the default.

The Company's investments in real estate equity securities are carried at their estimated fair value based on quoted market prices (Level 1) for the securities. Unrealized gains and losses are reported in finance loss from financial assets at fair value through profit or loss.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 5:&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT INFORMATION**

The operating segments are identified on the basis of information that is reviewed by the chief operating decision maker ("CODM") to make decisions about resources to be allocated and asses its performance. All corporate related costs are included in the strategic opportunistic properties segment to align with how financial information is presented to the CODM. The selected financial information for the reporting segments as of and for the nine and three months ended September 30, 2025 and 2024 and as of and the year ended December 31, 2024 is as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| Investment properties (including held for sale) | $520776 | $397766 | $— | $918542 |
| Property plant and equipment - hotel, net | $— | $— | $23500 | $23500 |
| Total assets | $743385 | $412844 | $25399 | $1181628 |
| Total liabilities | $742615 | $198306 | $24104 | $965025 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine months ended September 30, 2025** | **Nine months ended September 30, 2025** | **Nine months ended September 30, 2025** | **Nine months ended September 30, 2025** |
| | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| Total revenues and other income | $60945 | $27281 | $5622 | $93848 |
| Gross profit | $26587 | $12489 | $1003 | $40079 |
| Finance expenses, net | $44525 | $6834 | $1750 | $53109 |
|  | **Three months ended September 30, 2025** | **Three months ended September 30, 2025** | **Three months ended September 30, 2025** | **Three months ended September 30, 2025** |
|  | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
|  | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| Total revenues and other income | $18617 | $9008 | $1000 | $28625 |
| Gross profit (loss) | $7108 | $5572 | $(246) | $12434 |
| Finance expenses, net | $17023 | $2107 | $685 | $19815 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** |
| | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| Investment properties | $913518 | $408978 | $— | $1322496 |
| Property plant and equipment - hotel, net | $— | $— | $33016 | $33016 |
| Total assets | $1136347 | $419319 | $35569 | $1591235 |
| Total liabilities | $783353 | $201538 | $23725 | $1008616 |

---

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 5:&nbsp;&nbsp;&nbsp;&nbsp;SEGMENT INFORMATION (CONTINUED)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine months ended September 30, 2024** | **Nine months ended September 30, 2024** | **Nine months ended September 30, 2024** | **Nine months ended September 30, 2024** |
| | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| Total revenues and other income | $69459 | $26663 | $6225 | $102347 |
| Gross profit | $29390 | $12445 | $1207 | $43042 |
| Finance expenses, net | $46582 | $7052 | $1727 | $55361 |
|  | **Three months ended September 30, 2024** | **Three months ended September 30, 2024** | **Three months ended September 30, 2024** | **Three months ended September 30, 2024** |
|  | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
|  | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** |
| Total revenues and other income | $23283 | $8641 | $1186 | $33110 |
| Gross profit (loss) | $9150 | $4463 | $(175) | $13438 |
| Finance expenses, net | $17683 | $2343 | $553 | $20579 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Audited** | **Audited** | **Audited** | **Audited** |
| | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
| | **Audited** | **Audited** | **Audited** | **Audited** |
| Investment properties | $762350 | $395595 | $— | $1157945 |
| Property plant and equipment - hotel, net | $— | $— | $33624 | $33624 |
| Total assets | $1043333 | $408875 | $35451 | $1487659 |
| Total liabilities | $737527 | $198764 | $23465 | $959756 |
|  | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** | **Year ended December 31, 2024** |
|  | **Strategic Opportunistic Properties** | **Residential Homes** | **Hotel** | **Total** |
|  | **Audited** | **Audited** | **Audited** | **Audited** |
| Total revenues and other income | $90938 | $35200 | $9061 | $135199 |
| Gross profit | $38015 | $16141 | $2184 | $56340 |
| Finance expenses, net | $60252 | $9371 | $2269 | $71892 |

---

**NOTE 6:&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT EVENTS DURING THE REPORTING PERIOD**

**Series B Bond Payment**

In January 2025, the Company made a principal installment payment of 75.3 million Israeli new Shekels ($21.0 million as of January 31, 2025) in connection with the Company's Series B bonds. Subsequent to this installment payment, one Series B Bond installment remain, due on January 31, 2026. Refer to Note 1 for additional details.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 6:&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT EVENTS DURING THE REPORTING PERIOD (CONTINUED)**

**Due to Affiliates**

During the nine months ended September 30, 2025 the Company entered into loan agreements and subsequently amended loan agreements with Pacific Oak Strategic Opportunity Limited Partnership, the Company's sole owner. As of September 30, 2025, the outstanding loan balance was $10.0 million, carried an annual interest rate of 10.00%, and matures to the earlier of June 30, 2028 or a triggering event. The loan interest is recorded as finance expenses, net, net in the accompanying consolidated statements of profit or loss. Additionally, the loan is secured by equity of Pacific Oak Residential Trust, Inc., the Company's subsidiary and is recorded as due to affiliates in the accompanying condensed consolidated statements of financial position. As of September 30, 2025, the due to affiliates balance consist of $10.6 million related to the loan and accrued interest, $8.7 million of asset management fees due under the back to back agreement, and $0.6 million of reimbursable fees.

**Crown Pointe Mortgage Loan**

In April 2025, in light of the decision of the Company to market and sell the property, the borrowing company and the current lender in the property entered into a forbearance agreement in which the parties agreed to postpone the final repayment date of the loan in the amount of $54.7 million until December 2025. As part of the aforesaid agreement, it was agreed that during the term of the agreement, the expiration of the final repayment date would not constitute an event of default of the loan and that a cash sweep mechanism would be activated. The property was sold subsequent to September 30, 2025, refer to Note 7 for additional details.

**WhiteHawk Loan and Series C Bonds Payoff**

In July 2025, the Company entered into the WhiteHawk Loan for $80.0 million. The loan has an annual interest rate of one-month SOFR plus 6.50% with a SOFR floor of 3.50% and a maturity date of the earlier of December 1, 2027 or a triggering event. The loan is secured by the Company's undeveloped lands in Park Highlands and Richardson and 210 West 31st Street, a development property. As a result of entering into the loan, the Company early paid all outstanding Series C bonds of 142.0 million Israeli new shekels ($42.2 million as of July 29, 2025) and was subject to a 5.0 million Israeli new shekels ($1.5 million as of July 29, 2025) early pay interest penalty. Additionally, $5.0 million was paid to the owner for deferred asset management fees under the back to back agreement.

**110 William Joint Venture**

During the nine months ended September 30, 2025, the 110 William Joint Venture successfully delivered two tranches of office space to a major tenant and as a result, received $31.8 million from the tenant.

**Real Estate Sale**

In July 2025, the Company sold Georgia 400 Center, an office property, for gross sale proceeds of $39.1 million, before closing costs and credits. In connection with the sale, the Company repaid $39.5 million of the outstanding principal due under the secured mortgage loan and recognized a gain on extinguishment of debt of $0.9 million.

------

**PACIFIC OAK SOR (BVI) HOLDINGS LTD**.

**NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**U.S. Dollars in thousands**

**NOTE 6:&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT EVENTS DURING THE REPORTING PERIOD (CONTINUED)**

**Held for Sale Assets**

As of September 30, 2025, the Richardson office and Crown Pointe investment properties, in the strategic opportunistic properties segment met the held for sale criteria and the Company reclassified these properties in the accompanying condensed consolidated statements of financial position. The properties were under contract to sell for gross sales prices of $26.0 million (including Richardson undeveloped land and amended in October 2025) and $38.0 million, respectively and are expected to close within twelve months. The Company anticipates that the gross proceeds to be received from the Richardson sale will be used for: (a) repayment of senior debt and accrued interest on the Richardson office loan in the amount of $12.2 million; (b) an amount of $1.8 million for partial repayment of a loan related to the Q&C Hotel property, which is secured by a cross-collateralization on the Richardson office loan, (c) an amount of $5 million for partial repayment of the WhiteHawk loan (under which the Richardson lands property is pledged and the amount is subject to receiving WhiteHawk consent), (d) transaction costs (selling costs and credits) in the amount of $0.4 million and $1.4 million, respectively. Based on these estimates, the Company is expected to yield net cash flow of $5.2 million, before payment of a disposition fee to the Company's advisor in the amount of $0.3 million, which is subject to approval. The Crown Pointe sale will not yield any cash flow to the Company due to the outstanding loan balance exceeding the gross sales price and this sale was completed in November 2025, refer to Note 7 for additional details.. There can be no assurance that the Company will complete the Richardson sale and the purchaser is not affiliated with the Company or the Company's advisor.

**Default on Loans**

As of September 30, 2025, the Company was in technical default on eight notes and bonds payable with an aggregate carrying value of $479.5 million. The technical default was due to a combination of: covenant violations, maturities, and unmet debt service payments and as a result, the debt may be immediately due and payable. As of the date the condensed consolidated financial statements are issued, the Company were still in negotiations with the lenders. Subsequent to September 30, 2025, the Company was in technical default with a cross-collateralized mortgage loan of $152.6 million related to four investment properties.

**NOTE 7:&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENTS**

The Company evaluates subsequent events up until the date the interim condensed consolidated financial statements are issued.

**Advisory Agreement**

In November 2025, the advisory agreement between Pacific Oak Strategic Opportunity REIT, Inc. (the "Parent") and the Company's advisor was renewed with an initial term of one month from November 1, 2025 and will be automatically renewed for successive one-month terms until November 1, 2026, except that the agreement shall terminate on the date the Parent ceases being subject to the Standstill, if such date occurs prior to November 1, 2026.

**Crown Pointe Sale**

In November 2025, the Company completed the sale of the Crown Pointe office property for a gross sales price of $38.0 million and was released from the lien of the mortgage loan of $54.7 million.

## Exhibit 99.2

**<u>Exhibit 99.2</u>**

**This English translation is for convenience purposes only. This is not an official translation and is not<br>binding. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the original Hebrew version. In the event of any discrepancy between the Hebrew version and this translation, the Hebrew version shall prevail.**

**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**PRESENTATION OF SEPARATE FINANCIAL DATA FROM THE** 

**CONSOLIDATED FINANCIAL STATEMENTS ATTRIBUTABLE TO THE COMPANY**

**September 30, 2025 (Unaudited)**

------

**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**PRESENTATION OF SEPARATE FINANCIAL DATA** 

**FROM THE CONSOLIDATED FINANCIAL STATEMENTS** 

**ATTRIBUTABLE TO THE COMPANY**

**AS OF SEPTEMBER 30, 2025**

**(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 | 6-10 |

---

- - - - - - - - - - -

------

**<u>Special Report in accordance with Regulation 38d</u>**

**<u>Financial Information and Financial Data from the</u>**

**<u>Consolidated Financial Statements Attributable to the Company</u>**

Below is separate financial information and financial data attributable to the Company from the Group's consolidated financial statements as of September 30, 2025, 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.

------

**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Financial Information from the Consolidated Statements of Financial Position Attributable to the Company** 

---

| | | | |
|:---|:---|:---|:---|
| | **September 30,** | **September 30,** | |
| | **2025** | **2024** | **December 31,**<br>**2024** |
| | **Unaudited** | **Unaudited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| **ASSETS** |  |  |  |
| **NON-CURRENT ASSETS** |  |  |  |
| Investments in investees | $513433 | $949315 | $849492 |
| Restricted cash |  | 8445 | 10109 |
|  | 513433 | 957760 | 859601 |
| **CURRENT ASSETS** |  |  |  |
| Cash and cash equivalents | 608 | 631 | 704 |
| Restricted cash | 14142 | 3072 | 3252 |
|  | 14750 | 3703 | 3956 |
| **Total assets** | $528183 | $961463 | $863557 |
| **EQUITY** | $215197 | $579124 | $523989 |
| **NON-CURRENT LIABILITIES** |  |  |  |
| Bonds payable, net |  | 345568 | 298741 |
| **CURRENT LIABILITIES** |  |  |  |
| Accounts payable and accrued liabilities | 3447 | 5247 | 8208 |
| Bonds payable, net | 290276 | 20205 | 20653 |
| Due to owner | 19263 | 11319 | 11966 |
|  | 312986 | 36771 | 40827 |
| **Total liabilities** | 312986 | 382339 | 339568 |
| **Total equity and liabilities** | $528183 | $961463 | $863557 |

---

The accompanying notes are an integral part of the condensed interim financial data.

---

| | | | |
|:---|:---|:---|:---|
| November 30, 2025 | /s/ Ryan Schluttenhofer | /s/ Peter McMillan III | /s/ Keith David Hall |
| Date of approval of | Schluttenhofer, Ryan | McMillan III, Peter | Hall, Keith David |
| financial statements | Chief Accounting Officer | President and Director authorized by the Company's Board of Directors to execute the financial statements | Chief Executive Officer |

---

------

**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Financial Information from the Consolidated Statements of Profit or Loss Attributable to the Company**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine months ended September 30,** | **Nine months ended September 30,** | **Three months ended September 30,** | **Three months ended September 30,** | |
| | **2025** | **2024** | **2025** | **2024** | **Year ended December 31,** <br>**2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| Share of loss from investees, net | $(244796) | $(160740) | $(132006) | $(57636) | $(190035) |
| Advisory fees to owner | (7694) | (9329) | (2298) | (3368) | (11593) |
| General and administrative expenses | (2281) | (2254) | (1026) | (682) | (2645) |
| **Operating loss** | (254771) | (172323) | (135330) | (61686) | (204273) |
| Finance expense | (22431) | (23280) | (7938) | (9810) | (30720) |
| Finance income | 383 | 837 | 182 | 318 | 1005 |
| Loss on extinguishment of debt | (1910) |  | (1910) |  | (6033) |
| Foreign currency transaction (loss) gain, net | (30063) | 6724 | (5906) | (4556) | (3156) |
| **Net loss** | $(308792) | $(188042) | $(150902) | $(75734) | $(243177) |
| Total comprehensive loss | $(308792) | $(188042) | $(150902) | $(75734) | $(243177) |

---

The accompanying notes are an integral part of the condensed interim financial data.

------

**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Financial Information from the Consolidated Statements of Cash Flows Attributable to the Company** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Nine months ended September 30,** | **Nine months ended September 30,** | **Three months ended September 30,** | **Three months ended September 30,** | |
| | **2025** | **2024** | **2025** | **2024** | **Year ended** <br>**December 31,** <br>**2024** |
| | **Unaudited** | **Unaudited** | **Unaudited** | **Unaudited** | **Audited** |
| | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** | **U.S. dollars in thousands** |
| **Cash flows from operating activities** |  |  |  |  |  |
| Net loss | $(308792) | $(188042) | $(150902) | $(75734) | $(243177) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share of loss from investees | 244796 | 160740 | 132006 | 57636 | 190035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance expense | 22431 | 23280 | 7938 | 9810 | 30720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distribution from investees, net | 23691 | 41709 | 703 | 14133 | 49109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain), net | 30063 | (6724) | 5906 | 4556 | 3156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 1910 |  | 1910 |  | 6033 |
| Changes in operating assets and liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (740) | 75 | (268) | (6) | (247) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash for operational expenditures | (827) | 553 | 216 | (93) | (3389) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to owner | (2703) | 2631 | (4804) | 951 | 3982 |
| **Net cash provided by operating activities** | 9829 | 34222 | (7295) | 11253 | 36222 |
| **Cash flows from investing activities** |  |  |  |  |  |
| Distributions from (to) investees, net | 67571 | (15848) | 62931 | (20944) | 47280 |
| Payments on foreign currency derivatives, net |  | (478) |  |  | (478) |
| **Net cash provided by (used in) investing activities** | 67571 | (16326) | 62931 | (20944) | 46802 |
| **Cash flows from financing activities** |  |  |  |  |  |
| Proceeds from loans from owner | 10000 |  |  |  |  |
| Payment on bonds payable | (62595) | (190203) | (41411) | (84182) | (253229) |
| Interest paid | (25305) | (19191) | (13779) | (8179) | (21990) |
| Release of restricted cash for debt service obligations | 1342 | 24285 | 1342 | 7552 | 26590 |
| Proceeds from bonds payable |  | 156746 |  | 81119 | 156746 |
| Payments of deferred financing costs |  | (4850) | 238 | (2516) | (4850) |
| Distributions to owner |  | (5850) |  | (2000) | (6554) |
| **Net cash used in financing activities** | (76558) | (39063) | (53610) | (8206) | (103287) |
| Effect of exchange rate changes on cash and cash equivalents | (938) | 295 | (2009) | (406) | (536) |
| (Decrease) increase in cash | (96) | (20872) | 17 | (18303) | (20799) |
| Cash, beginning of the period | 704 | 21503 | 591 | 18934 | 21503 |
| **Cash, end of the period** | $608 | $631 | $608 | $631 | $704 |
| **Supplemental Disclosure of Noncash Activities:** |  |  |  |  |  |
| Asset management fee reimbursement payable to owner | $13917 | $10609 | $13917 | $10609 | $11961 |
| Distribution payable to owner | $— | $704 | $— | $704 | $— |

---

The accompanying notes are an integral part of the condensed interim financial data.

------

**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Additional Information**

**NOTE 1:&nbsp;&nbsp;&nbsp;&nbsp;BASIS OF PREPARATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Separate financial information is prepared in a condensed format as of September 30, 2025 and for the three and nine 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, 2024 and for the year then ended, and the information accompanying notes (hereinafter - the annual consolidated financial statements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The financial condition of the Company and the going concern assumption.

As of September 30, 2025, the Company had a working capital shortfall amounting to $298.2 million, primarily attributed to the Series B and Series D bonds ("Series Bonds") of 975.3 million Israeli new shekels ($295.0 million as of September 30, 2025) maturing within 12 month period from the date of the statement of the financial position and of which per the terms of the deed of trust, the bondholders have grounds for calling an immediate repayment of the bonds.

As of September 30, 2025, the Company was non-compliant with the minimum consolidated equity requirement and Net Adjusted Financial Debt to Net Adjusted Cap covenants related to the Series Bonds. Refer to Note 2 for additional details on the covenants. Additionally, on September 30, 2025, the Company's Series Bonds were downgraded from ilBBB to ilB by S&P Global Ratings Maalot Ltd. and and of which per the terms of the deed of trust, the bondholders have grounds for calling an immediate repayment of the bonds of 975.3 million Israeli new shekels ($295.0 million as of September 30, 2025), refer to note 2 for additional information.

In July 2025, the Company, through investees, completed a secured financing transaction of $80.0 million and as a result of completing this transaction, a trustee that represents the bondholders of the Series Bonds (the "Trustee"), issued a series of communications alleging potential breaches of duty, see below "Negotiations between the Company and the Trustee and the representatives of the holders of the Series B and Series D bonds of the Company (the "Bondholders")" for further details. Additionally, as a result of the downgrade on the Series Bonds, the Company also triggered an event of default with an investee's loan with WhiteHawk Capital Partners LP (the "WhiteHawk Loan") of $80.0 million.

During the three and nine months ended September 30, 2025, the Company's investees recognized fair value losses of investment properties (including as a result of the sale of an asset and/or signing of sale agreements) of $97.6 million and $208.8 million, respectively, due to declines in market conditions and projected cash flows, including assumptions such as the intended hold period, market rental rates and leasing assumptions, changes in sales comparisons, and based on quoted prices and continued declines in fair values may limit the investees ability to sell assets or refinance debt at attractive terms and actual results could be significantly different from the estimates. In addition, as noted above, a portion of the losses resulted from the expedited sale of investment properties at values lower than their fair value. The Company's investees may negotiate a turnover of one or more secured properties back to the related lender and remit payment for any associated loan guarantee. The Company's residential homes portfolio is classified as Level 3 within the fair value hierarchy. In accordance with the accounting standards, the unit of measurement is the individual residential unit rather than the portfolio as a whole. Accordingly, the valuations are performed by measuring the fair value of each individual residential unit. It should be noted that a market participant evaluating a single residential home property may not apply the same portfolio-level discounts that another market participant would require when acquiring the portfolio, where the weighted average cost of capital, including current market costs of debt and equity, would more directly influence pricing. Management estimates that if the residential homes will be sold as a portfolio, rather than as separate residential units, the expected proceeds may reflect a portfolio discount of approximately 10% to 25% relative to the value of the individual unit as reflected in the financial statements. Additionally, during the three and nine months ended September 30,

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**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Additional Information**

2025, the affiliate company recognized impairment loss - hotel of $6.2 million and $9.4 million, respectively related to the Q&C Hotel due to declines in market conditions.

To meet its repayment obligations in the coming year as mentioned above, the Company expects to generate cash flow from ongoing operations, through investees, from additional sales of investment properties (including investments in unconsolidated joint ventures) and securities and intends to refinance. In October 2025, the Company indirectly entered into an amended Purchase and Sale Agreement for the Richardson office and undeveloped land assets for a sales price of $26.0 million and in September 2025, the Company indirectly entered into a Purchase and Sale Agreement for Crown Pointe for a sales price of $38.0 million.

As of the date the condensed consolidated financial statements are issued, in order for the Company to continue its regular operations, several actions will need to be completed in the near term, including debt refinancing and real estate sales, all of which are subject to approval under the Standstill and other third-party approvals. These plans are subject to change based on market conditions in the commercial real estate lending environment, the current interest rate environment, leasing and transaction volume challenges in certain markets, successful negotiations with the Trustee and Representatives, and such plans are not within the control of the Company, and therefore, there is no assurance that the Company will be successful in implementing its plans and fulfill existing and projected its obligations upon maturity. The uncertainty regarding the Company's plans could be mitigated through the potential sale of its residential home portfolio, successful negotiations with the Trustee and Representatives, and other strategic actions currently under consideration. Since the plans mentioned above are not within the control of the Company and subject to approval of third parties, including consents from bondholders and other lenders, the Company's management and the Board of Directors have concluded that there are significant doubts regarding the Company's ability to continue as a going concern.

No adjustments were made to the financial statements to the values or classifications of assets and liabilities that might be necessary if the Company is unable to continue operating as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Class Action Suit**

On September 10, 2025, a bondholder filed a petition for certification of a class action in the Tel Aviv District Court, Israel against the Company and certain members of its board of directors, alleging that disclosures relating to the Company were misleading and caused investor harm. The petition states an individual claim amount in excess of 2.5 million Israeli new shekels ($0.8 million as of September 30, 2025) and cites the petitioner's expert model estimating potential class-wide damages of approximately 124.6–145.2 million Israeli new shekels ($37.6-43.9 million as of September 30, 2025). The matter is at a preliminary stage; the court has not ruled on class certification or on the merits and based on the Company's legal counsel, the potential outcome cannot be determined, nor can the chances of the petition being approved be reliably assessed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.Negotiations between the Company and the Trustee and the representatives of the holders of the Series B and Series D bonds of the Company (the "Bondholders").**

The following is a summary of the main actions and the decisions that were carried out and made in the framework of the aforementioned negotiations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Postponement of the call for immediate repayment of Company's debentures**

On November 17, 2025, the Bondholders resolved to refrain from calling the Series Bonds for immediate repayment.

On November 17, 2025, Bondholders resolved to instruct the Trustee convene, by November 30, 2025, an assembly of holders of the Series Bonds to decide on the matter of calling the aforementioned debentures for immediate repayment.

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**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Additional Information**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Rejection of a transaction for the sale of residential homes** 

On September 28, 2025, the Bondholders failed to approve a transaction for the sale of 1,799 residential homes from the Company's residential homes portfolio, as well as Company's proposal to proceed with a transaction for the sale of 281 residential homes located in Michigan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Proposals in principle for a settlement with the Bondholders**

On September 19, 2025, the Company published a proposal in principle for a settlement with the Bondholders. On October 15, 2025, the Company received a proposal in principle for a settlement from the representatives of the Bondholders (the "Representatives").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Founding a Board of Directors' committee to coordinate negotiations between the Company and representatives of the debenture holders**

On August 28, 2025, the Company's Board of Directors decided to form a committee, which includes the following members of the Board: Messrs. Peter McMillan III (Director and President of the Company), Keith Hall (Director and CEO of the Company), and Ron Hadasi (External Director) in favor of coordinating the negotiations between the Company and Representatives, alongside with the Pacific Oak Capital Advisors, LLC, the Company's advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Letter of commitment to Reznik Paz Nevo Trustees Ltd., the trustee for the Bondholders**

On August 26, 2025, the Company reported that a Letter of Commitment (the "Standstill") was signed in favor of Trustee and in favor of the Bondholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Decision to order negotiations in accordance with the debt settlement principles document**

On August 3, 2025, the meetings of the Bondholders have approved an instruction to the Trustee, the Representatives, and the Trustee's counsel and Bondholders to conduct negotiations with the Company for the purpose of reaching a debt arrangement on the basis of the debt settlement principles document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Decision to Notify the Company of the Objection of the Bondholders to the engagement in the Financing Agreement**

On July 27, 2025, the meetings of the Bondholders have approved a resolution to instruct the Trustee to notify the Company and the Company's officers that the Bondholders object to the Company entering the WhiteHawk Loan in which the Company ultimately entered into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.Appointment of Representatives**

**Appointment of a joint representation**

On July 21, 2025, the meetings of the Bondholders decided to appoint a joint representation for the Bondholders.

**Appointment of an American Advisor to the Joint Representation of the Trustee of the Debenture Series and the Holders of the Debenture Series**

On July 31, 2025, the meetings of the Bondholders have approved the appointment of Mr. Amir Jiris as an American counsel for the Joint Representation.

**Appointment of an American Legal Counsel for the Joint Representation**

On July 31, 2025, the meetings of the Bondholders have approved the appointment of Adv. Michael Friedman of the law firm Chapman and Cutler LLP as an American legal counsel for the Joint Representation.

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**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Additional Information**

**Appointment of Legal Advisor to the Trustee, the Bondholders and the Joint Representation**

On July 28, 2025, the meetings of the Bondholders approved the appointment of a legal advisor for the joint representation of the Trustee and Representatives (the "Joint Representation"). The candidates who received the most votes in aggregate were Adv. Raanan Kalir and Adv. Alon Binyamini of Erdinast, Ben Nathan, Toledano & Co.

**Appointment of a member of the Joint Representation**

On July 28, 2025, the meetings of the Bondholders have decided that the Joint Representation. At those meetings, the candidate who received the most votes in aggregate was Mr. Ofer Gazit.

**NOTE 2:&nbsp;&nbsp;&nbsp;&nbsp;SIGNIFICANT EVENTS DURING THE REPORTING PERIOD** 

**Israeli Bond Financings**

As of September 30, 2025, the Company had Series Bonds outstanding of 975.3 million Israeli new shekels ($295.0 million as of September 30, 2025). On January 31, 2025, the Company made the remaining second principal installment payment of 75.3 million Israeli new shekels ($21.0 million as of January 31, 2025) in connection with the Company's Series B bonds. Additionally, on July 29, 2025, the Company early paid all outstanding Series C bonds of 142.0 million Israeli new shekels ($42.2 million as of July 29, 2025) and was subject to a 5.0 million Israeli new shekels ($1.5 million as of July 29, 2025) early pay interest penalty.

The Series B bonds contain 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 September 30, 2025, the Company's covenant calculations are as follows: (i) Consolidated Equity Capital of the Company as of September 30, 2025 was $215.2 million, (ii) the Net Adjusted Debt to Net Adjusted Cap was 83.8%; (iii) the Adjusted NOI was $49.3 million for the trailing twelve months ended September 30, 2025; and (iv) the consolidated scope of projects was $0 as of September 30, 2025. The Company was not compliant with the Consolidated Equity Capital of the Company and Net Adjusted Financial Debt to Net Adjusted Cap covenants, as well as the bond rating covenant. The non-compliance of these covenants constitutes an event of default. Refer to Note 1 for additional information related to the default.

The Series D bonds contains the following covenants: (i) Consolidated Equity Capital of the Company (not including minority rights) shall not be less than USD 450 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. As of September 30, 2025, the Company's covenant calculations are as follows: (i) Consolidated Equity Capital of the Company as of September 30, 2025 was $215.2 million; (ii) the Net Adjusted Debt to Net Adjusted Cap was 83.8%; and (iii) the Adjusted NOI was $49.3 million for the trailing twelve months ended September 30, 2025. The Company was not compliant with the Consolidated Equity Capital of the Company and Net Adjusted Financial Debt to Net Adjusted Cap covenants, as well as the bond rating covenant. The non-compliance of these covenants constitutes an event of default. Refer to Note 1 for additional information related to the default.

**Series B Bond Payment**

In January 2025, the Company made a principal installment payment of 75.3 million Israeli new Shekels ($21.0 million as of January 31, 2025) in connection with the Company's Series B bonds. Subsequent to this installment payment, one Series B Bond installment remain, due on January 31, 2026. Refer to Note 1 for additional details.

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**PACIFIC OAK SOR (BVI) HOLDINGS, LTD.**

**Additional Information**

**Due to Affiliates**

During the nine months ended September 30, 2025, the Company entered into loan agreements and subsequently amended loan agreements with Pacific Oak Strategic Opportunity Limited Partnership, the Company's sole owner. As of September 30, 2025, the outstanding loan balance was $10 million, carried an annual interest rate of 10.00%, and matures to the earlier of June 30, 2028 or a triggering event. The loan interest is recorded as finance expenses, net in the accompanying consolidated statements of profit or loss. Additionally, the loan is secured by equity of Pacific Oak Residential Trust, Inc., the Company's investee. As of September 30, 2025, the due to owner balance consist of $10.6 million indirectly related to the loan and accrued interest and $8.7 million of asset management fees due under the back to back agreement.

**WhiteHawk Loan and Series C Bonds Payoff**

In July 2025, the Company, through investees, entered into WhiteHawk Loan for $80.0 million. The loan has an annual interest rate of one-month SOFR plus 6.50% with a SOFR floor of 3.50% and a maturity date of the earlier of December 1, 2027 or a triggering event. The loan is secured by the Company's investments in undeveloped lands in Park Highlands and Richardson and 210 West 31st Street, a development property. As a result of entering into the loan, part of the proceeds were used to early paid all outstanding Series C bonds of 142.0 million Israeli new shekels ($42.2 million as of July 29, 2025) and was subject to a 5.0 million Israeli new shekels ($1.5 million as of July 29, 2025) early pay interest penalty. Additionally, $5.0 million was paid to the owner for deferred asset management fees under the back to back agreement.

**NOTE 3:&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENT**

The Company evaluates subsequent events up until the date the consolidated financial statements are issued.

**Advisory Agreement**

In November 2025, the advisory agreement between Pacific Oak Strategic Opportunity REIT, Inc. (the "Parent") and the Company's advisor was renewed with an initial term of one month from November 1, 2025 and will be automatically renewed for successive one-month terms until November 1, 2026, except that the agreement shall terminate on the date the Parent ceases being subject to the Standstill, if such date occurs prior to November 1, 2026.

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