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Real estate investment trusts

City Office REIT Reports First Quarter 2024 Results Exceeding Expectations

Strategic Insights

— 2 min read

City Office REIT, Inc. (NYSE: CIO) announced its first quarter 2024 results, surpassing expectations in rental and other revenues. The company reported a GAAP net loss of $2.4 million, or $0.06 per fully diluted share, while Core FFO was approximately $13.5 million, or $0.33 per fully diluted share, and AFFO was approximately $9.1 million, or $0.22 per fully diluted share. In-place occupancy was 83.0% as of quarter end, with 86.0% including signed leases not yet occupied.

Key Takeaways:

  • The company executed approximately 191,000 square feet of new and renewal leases during the quarter, with a weighted average lease term of 9.1 years and a weighted average annual rent of $33.33 per square foot.
  • New leasing activity included a 29,000 square foot 11-year lease with a financial tenant at Bloc 83 in Raleigh and a 43,000 square foot 10.5-year lease with a healthcare tenant at FRP Ingenuity Drive in Orlando.
  • The company updated its guidance outlook to reflect taking back one floor at each of the Terraces building in Dallas and Bloc 83 in Raleigh, with expected reductions in Core FFO of $1.8 million or $0.04 per fully diluted share.
  • Total principal outstanding debt was approximately $671.2 million as of March 31, 2024, with approximately 91.1% fixed rate or effectively fixed rate due to interest rate swaps.
  • The company declared a first quarter dividend of $0.10 per share of common stock and $0.4140625 per share of Series A Preferred Stock, paid on April 24, 2024.
  • Same Store Cash NOI decreased 1.0% for the three months ended March 31, 2024 as compared to the same period in the prior year.

Statistics:

  • Rental and other revenues: $44.5 million
  • GAAP net loss: $2.4 million, or $0.06 per fully diluted share
  • Core FFO: approximately $13.5 million, or $0.33 per fully diluted share
  • AFFO: approximately $9.1 million, or $0.22 per fully diluted share
  • Net Operating Income: approximately $26.7 million
  • Adjusted Cash NOI (CIO share): approximately $26.0 million
  • Leasing activity: approximately 191,000 square feet, with 110,000 square feet of new leasing and 81,000 square feet of renewals
  • In-place occupancy: 83.0% as of quarter end, or 86.0% including signed leases not yet occupied
  • Total principal outstanding debt: approximately $671.2 million
  • Fixed rate or effectively fixed rate debt: approximately 91.1%

Sources:

  • City Office REIT, Inc. (NYSE: CIO) - First Quarter 2024 Results
  • Company's press release dated April 24, 2024

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