City Office REIT : 2022 Annual Report

March 15, 2023


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 City Office REIT, Inc. (or the "Company") and its current beliefs as to the outcome and timing of future events. There can be no assurance that actual future developments affecting the Company will be those anticipated by the Company. Examples of forward-looking statements include projected capital resources, projected profitability and portfolio performance, estimates of market rental rates, projected capital improvements, expected sources of financing, expectations as to the timing of closing of acquisitions, dispositions, or other transactions, the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations. Forward-looking statements presented

in this presentation are based on management's beliefs and assumptions made by, and information currently available to, management.

When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "result" and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve risks and uncertainties (some of which are beyond the Company's control) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; competition in the leasing market; the demand for and market acceptance of our properties for rental purposes; the amount and growth of our expenses; tenant financial difficulties and general economic conditions, including interest rates, as well as economic conditions in our geographic markets; changes in regulations or laws, including tax laws, in the markets in which we operate; defaults or non-renewal of leases; risks associated with joint venture partners; the risks associated with the ownership and development of real property, including risks related to natural disasters; risks associated with property acquisitions, including our entry into new markets with which we are unfamiliar; the failure to acquire or sell properties as and when anticipated; the outcome of claims and litigation involving or affecting the Company; the ability to satisfy conditions necessary to close pending transactions; our failure to maintain our status as a real estate investment trust, or REIT; and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission, or SEC, including but not limited to the Company's reports on Form 10-K, Form 10-Q and Form 8-K and in the Company's other SEC filings from time to time.

Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's business, financial condition, liquidity, cash flows and results could differ materially from those expressed in any forward-looking statement. While forward-looking statements reflect our good faith beliefs as of the date of this presentation, they are not guarantees or indications of future performance. Any forward-looking statements speak only as of the date of this presentation. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Use caution in relying on past forward-looking statements, which were based on results and trends at the time they were made, before anticipating future results or trends.


Dear Fellow Shareholders,

2022 was a challenging year with rising interest rates and headwinds across the industry. Despite this difficult environment, our portfolio continued to perform well and we achieved strong operating results. During the year we also focused on taking active steps to drive long-term growth and value across our portfolio.

Sun Belt Markets

We continue to benefit from the outperformance and growth of our cities, which are predominantly located in the Sun Belt. Attractive Sun Belt markets are capitalizing on labor force migration and corporate relocations, which is helping to sustain rental rate growth. We expect this trend to benefit us over the long term.

High-Quality Portfolio Enhanced Through Strategic Upgrades

Premium properties with amenities are producing the strongest leasing results. We believe we are well-positioned in this regard with the vast majority of our asset value concentrated in high-quality and amenitized buildings. As an example, the 975,000 square feet of best-in-class office properties that we acquired in late 2021 in Raleigh, Dallas and Phoenix continue to be among the most desirable buildings in their respective markets. Throughout 2022, we continued to strategically invest in our properties and elevate their market position by enhancing select tenant spaces and common areas. We expect these investments will generate further leasing results for our shareholders.


From an operating perspective, we continued to make strong progress. The revenue we achieved in 2022 was the highest annual revenue in the Company's history and was an increase of 10% as compared to the prior year. From a leasing perspective, in 2022 we completed over 750,000 square feet of new and renewal leasing. We also generated a $21.7 million gain from a property sale in Dallas, Texas.

2023 and Beyond

Throughout our Company's history we have been proactive in evaluating market conditions and thoughtfully deploying our resources and capital where we can create the most value for shareholders. We believe that our focus on Sun Belt markets combined with the active steps we have taken to enhance our portfolio will position us favorably to outperform in 2023 and beyond.

We look forward to communicating our future progress with you.



Corporate Overview

City Office REIT owns a diversified portfolio of premium office properties predominantly in high-growth Sun Belt markets

  • City Office REIT owned 6.0 million square feet of office properties as of December 31, 2022. Our properties are generally:
    • Located in vibrant, growing markets
    • Situated in both CBD and key amenity-rich locations
    • Occupied by a diversified and high-quality tenant base
  • Value creation strategy concentrated on thriving Sun Belt cities with leading economic fundamentals
    • Focus on driving leasing and executing strategic transactions
    • Strategic investments in property upgrades and spec suites
  • Experienced management team; strong alignment of shareholder interests with those of management and Board of Directors











City Office REIT Inc. published this content on 15 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2023 11:09:11 UTC.

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Analyst Recommendations on CITY OFFICE REIT, INC.

Sales 2023 178 M
Net income 2023 -7,52 M
Net Debt 2023 -
P/E ratio 2023 -38,8x
Yield 2023 11,0%
Capitalization 289 M
289 M
Capi. / Sales 2023 1,62x
Capi. / Sales 2024 1,56x
Nbr of Employees 23
Free-Float 96,4%


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Mean consensus OUTPERFORM
Number of Analysts 6
Last Close Price 7,24 $
Average target price 10,10 $
Spread / Average Target 39,5%

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