May 5, 2023

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City Office REIT, Inc. (CIO), a leading real estate investment trust, has recently released its financial results for the first quarter ended March 31, 2023. Along with the announcement of solid financial performance, the company revealed its plans to initiate a stock buyback program. This move demonstrates City Office's commitment to optimizing shareholder value and capitalizing on favorable market conditions.

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First Quarter Highlights

During the first quarter, City Office REIT achieved several significant milestones:

1. Strong Financial Performance:
2. Rental and other revenues amounted to $46.0 million.
3. The GAAP net loss attributable to common stockholders was approximately $1.2 million, resulting in ($0.03) per fully diluted share.
4. Core FFO (Funds from Operations) reached approximately $15.0 million, equating to $0.37 per fully diluted share.
5. AFFO (Adjusted Funds from Operations) stood at approximately $8.2 million, or $0.20 per fully diluted share.
6. Positive Same Store Cash NOI Growth:
7. City Office REIT witnessed a 3.0% increase in Same Store Cash NOI compared to the first quarter of 2022.
8. This growth indicates the company's effective management of its properties and their ability to generate sustainable revenue.
9. Operational Achievements:
10. In-place occupancy reached 84.9% by the end of the quarter.
11. Approximately 122,000 square feet of new and renewal leases were executed, showcasing the demand for City Office's properties.
12. The company increased its authorized borrowings under the Unsecured Credit Facility from $350 million to $375 million, securing additional financial flexibility.

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Dividend Adjustment and Market Outlook

To align with current economic conditions and maximize liquidity, City Office REIT has decided to adjust its common dividend. By reducing the dividend, the company will retain an additional $16 million per year. This strategic measure aims to position City Office favorably amidst market volatility and macroeconomic headwinds.

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Stock Buyback Plan

City Office REIT is taking proactive steps to enhance shareholder value by announcing a new share purchase plan. The company's Board of Directors has authorized the repurchase of up to $50 million worth of its outstanding shares of common stock or Series A Preferred Stock. This stock buyback program reflects management's confidence in the long-term success of the business and the belief that the current market valuation does not fully reflect the company's intrinsic value.

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Members of LevelFields received the alert of this event on May 5, 6:40 AM ET

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