CITY OFFICE REIT, INC. SECOND QUARTER 2023
SUPPLEMENTAL FINANCIAL INFORMATION
www.cioreit.com
TABLE OF CONTENTS | |
Overview | |
Company Overview | 3 |
Financial Highlights | 4 |
Property Overview | 5 |
Financial Information | |
Net Income | 6 |
Balance Sheet | 7 |
Statement of Cash Flows | 8 |
FFO, Core FFO and AFFO Reconciliation | 9 |
Net Operating Income Reconciliation | 10 |
Revenue Detail | 10 |
EBITDA Reconciliation | 11 |
Debt Profile | |
Debt Summary and Maturity | 12 |
Leverage and Coverage Ratios | 13 |
Portfolio Data | |
Same Store Analysis | 14 |
Tenant Profile | 15 |
Lease Expirations - Next Four Quarters | 15 |
Leasing Activity | 16 |
Lease Expirations | 17 |
Leasing and Capital Expenditures | 18 |
Definitions | 19 |
This presentation contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward- looking statements within the meaning of the federal securities laws and as such are based upon the current beliefs of City Office REIT, Inc. (the "Company") as to the outcome and timing of future events. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "approximately," "anticipate," "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "future," "hypothetical," "intend," "may," "outlook," "plan," "potential," "predict," "project," "seek," "should," "target," "will" or other similar words or expressions. Examples of forward-looking statements include those pertaining to expectations regarding our financial performance, including under metrics such as NOI and FFO, market rental rates, national or local economic growth, including the impact of inflation, the Company's expectations regarding tenant occupancy, releasing periods, projected capital improvements, expected sources of financing and ability to service existing financing, expectations as to the likelihood and timing of closing of acquisitions, dispositions, or other transactions, the expected operating performance of the Company's current properties, anticipated near-term acquisitions and descriptions relating to these expectations, including, without limitation, the anticipated net operating income yield and cap rates, lower than expected yields, increased interest rates, operating costs and costs of capital, and changes in local, regional, national and international economic conditions, including as a result of the ongoing COVID-19 pandemic.
The forward-looking statements contained in this presentation speak only as of the date of this presentation are based on historical performance and management's current plans, beliefs, estimates and expectations in light of information currently available to us and are subject to uncertainty and changes in circumstances. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. There can be no assurance that actual forward-looking statements, including projected capital resources, projected profitability and portfolio performance, estimates or developments affecting the Company will be those anticipated by the Company. Actual results may differ materially from these expectations due to the factors, risks and uncertainties described above, changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in the Company's news releases and filings with the SEC, including but not limited to those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 under the heading "Risk Factors" and in our subsequent reports filed with the SEC, many of which are beyond our control.
The Company cautions that you should not place undue reliance on any forward-looking statements. The Company does not guarantee that the assumptions underlying such forward-looking statements are free from errors. Unless otherwise stated, historical financial information and per share and other data are as of June 30, 2023 or relate to the quarter ended June 30, 2023. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.
2
COMPANY OVERVIEW
City Office REIT, Inc. (NYSE: CIO) ("CIO") invests in high-quality office properties predominantly in Sun Belt markets with strong economic fundamentals. Our strategy is to continue to generate strong returns through a combination of internal cash flow growth initiatives and a focused value creation strategy.
MANAGEMENT TEAM | INVESTOR RELATIONS |
Jamie Farrar - CEO & Director | Tony Maretic |
Greg Tylee - President & COO | 604 806 3366 |
Tony Maretic - CFO, Treasurer & Secretary | investorrelations@cioreit.com |
BOARD OF DIRECTORS | |
John Sweet - Chairman | John McLernon - Director |
Jamie Farrar - CEO & Director | Sabah Mirza - Director |
Michael Mazan - Director | Mark Murski - Director |
3
FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | ||||||||||
INCOME ITEMS | ||||||||||||||
Net (loss)/income | $ | (516) | $ | 873 | $ | (12,238) | $ | 2,164 | $ | 3,063 | ||||
NOI | $ | 27,358 | $ | 28,237 | $ | 27,610 | $ | 28,110 | $ | 28,662 | ||||
Same Store Cash NOI Change | 7.5% | 3.0% | (1.2%) | (4.3%) | (7.1%) | |||||||||
Net (loss)/income per share - diluted | $ | (0.06) | $ | (0.03) | $ | (0.36) | $ | 0.00 | $ | 0.02 | ||||
Core FFO / Share | $ | 0.35 | $ | 0.37 | $ | 0.38 | $ | 0.39 | $ | 0.40 | ||||
AFFO / Share | $ | 0.18 | $ | 0.20 | $ | 0.12 | $ | 0.18 | $ | 0.18 | ||||
EBITDA (CIO share) | $ | 24,270 | $ | 25,062 | $ | 24,952 | $ | 25,177 | $ | 25,642 | ||||
CAPITALIZATION | ||||||||||||||
Common shares | 39,938 | 39,938 | 39,719 | 39,719 | 43,331 | |||||||||
Unvested restricted shares | 859 | 844 | 736 | 727 | 721 | |||||||||
Total common shares - diluted | 40,797 | 40,783 | 40,455 | 40,446 | 44,052 | |||||||||
Weighted average common shares outstanding - diluted | 40,793 | 40,702 | 40,502 | 42,125 | 44,482 | |||||||||
Share price at quarter end | $ | 5.57 | $ | 6.90 | $ | 8.38 | $ | 9.97 | $ | 12.95 | ||||
Market value of common equity | $ | 227,239 | $ | 281,400 | $ | 339,009 | $ | 403,248 | $ | 570,474 | ||||
Total Series A preferred shares outstanding | 4,480 | 4,480 | 4,480 | 4,480 | 4,480 | |||||||||
Liquidation preference per preferred share | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | $ | 25.00 | ||||
Aggregate liquidation preference of preferred shares | $ | 112,000 | $ | 112,000 | $ | 112,000 | $ | 112,000 | $ | 112,000 | ||||
Net debt (CIO share) | $ | 623,280 | $ | 654,088 | $ | 643,567 | $ | 632,594 | $ | 584,224 | ||||
Total enterprise value (including net debt) | $ | 962,519 | $ | 1,047,488 | $ | 1,094,576 | $ | 1,147,842 | $ | 1,266,698 | ||||
DEBT STATISTICS AND RATIOS | ||||||||||||||
Total principal debt (CIO share) | $ | 675,088 | $ | 705,498 | $ | 687,168 | $ | 673,449 | $ | 651,953 | ||||
Weighted average maturity | 2.8 years | 3.0 years | 3.2 years | 3.5 years | 3.8 years | |||||||||
Weighted average interest rate | 4.6% | 4.5% | 4.4% | 4.1% | 3.7% | |||||||||
Fixed rate debt as a percentage of total debt1 | 90.4% | 92.2% | 71.1% | 72.8% | 75.4% | |||||||||
LEASING STATISTICS | ||||||||||||||
In-Place occupancy | 85.6% | 84.9% | 86.2% | 85.8% | 86.9% | |||||||||
Weighted average remaining lease term | 4.9 years | 4.8 years | 4.9 years | 5.0 years | 4.9 years |
- The fixed rate debt percentage includes the impact of interest rate swaps.
4
PROPERTY OVERVIEW
Annualized | Annualized | Annualized | |||||
Metropolitan | Economic | NRA | In Place | Base Rent | Gross Rent | Base Rent2 | |
Area | Property | Interest | (000s SF) | Occupancy | per SF | per SF1 | (000s) |
Block 23 | 100.0% | 307 | 94.5% | $30.08 | $32.37 | $8,725 | |
Pima Center | 100.0% | 272 | 47.2% | $29.15 | $29.15 | $3,741 | |
Phoenix, AZ | SanTan | 100.0% | 267 | 47.0% | $32.02 | $32.02 | $4,013 |
5090 N 40th St | 100.0% | 175 | 70.2% | $34.60 | $34.60 | $4,255 | |
(26.7% of NRA) | |||||||
Camelback Square | 100.0% | 172 | 84.4% | $34.55 | $34.55 | $5,027 | |
The Quad | 100.0% | 163 | 92.3% | $33.08 | $33.42 | $4,977 | |
Papago Tech | 100.0% | 163 | 88.7% | $24.48 | $24.48 | $3,533 | |
Park Tower | 94.8% | 478 | 89.2% | $28.09 | $28.09 | $11,988 | |
Tampa, FL | City Center | 95.0% | 244 | 91.6% | $30.00 | $30.00 | $6,706 |
(18.5%) | Intellicenter | 100.0% | 204 | 100.0% | $26.21 | $26.21 | $5,333 |
Carillon Point | 100.0% | 124 | 100.0% | $30.25 | $30.25 | $3,757 | |
Denver, CO | Denver Tech | 100.0% | 381 | 85.6% | $24.48 | $28.93 | $7,799 |
Circle Point | 100.0% | 272 | 90.6% | $19.93 | $34.80 | $4,913 | |
(14.1%) | |||||||
Superior Pointe | 100.0% | 152 | 71.7% | $18.62 | $31.62 | $2,033 | |
Orlando, FL | Florida Research Park | 96.6% | 397 | 86.1% | $26.03 | $27.83 | $8,802 |
Central Fairwinds | 97.0% | 168 | 88.6% | $28.21 | $28.21 | $4,206 | |
(12.7%) | |||||||
Greenwood Blvd | 100.0% | 155 | 100.0% | $24.75 | $24.75 | $3,837 | |
Raleigh, NC | Bloc 83 | 100.0% | 495 | 83.5% | $37.97 | $38.20 | $15,692 |
(8.7%) | |||||||
Portland, OR | AmberGlen | 76.0% | 203 | 100.0% | $23.97 | $27.17 | $4,877 |
(5.8%) | Cascade Station | 100.0% | 128 | 100.0% | $29.60 | $31.51 | $3,791 |
Dallas, TX | The Terraces | 100.0% | 173 | 100.0% | $38.99 | $58.99 | $6,731 |
(5.0%) | 2525 McKinnon | 100.0% | 111 | 97.8% | $30.50 | $51.50 | $3,323 |
San Diego, CA | Mission City | 100.0% | 281 | 80.1% | $39.57 | $39.57 | $8,916 |
(4.9%) | |||||||
Seattle, WA | Canyon Park | 100.0% | 207 | 100.0% | $23.86 | $29.86 | $4,934 |
(3.6%) | |||||||
Total / Weighted Average - June 30, 2023³ | 5,692 | 85.6% | $29.19 | $32.44 | $141,909 | ||
- Annualized gross rent per square foot includes adjustment for estimated expense reimbursements of triple net leases.
- Annualized base rent is calculated by multiplying (i) rental payments (defined as cash rents before abatements) for the month ended June 30, 2023 by (ii) 12.
- Averages weighted based on the property's NRA, adjusted for occupancy.
5
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Disclaimer
City Office REIT Inc. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 10:11:39 UTC.
