In This Article:
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Net Operating Income (NOI): $26.0 million, an increase of $500,000 from the previous quarter.
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Cash Available for Distribution (COFO): $12.3 million or $0.30 per share, $600,000 higher than the previous quarter.
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Adjusted Funds from Operations (AFO): $6.5 million or $0.16 per share.
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Same Store Cash NOI Growth: Increased by 4.4% compared to the previous year.
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Portfolio Occupancy: Ended the quarter at 84.9%.
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Total Debt: $646 million as of March 30th.
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Net Debt to EBITDA: 6.7 times.
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Credit Facility Availability: $42 million undrawn and authorized.
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Cash and Restricted Cash: $37 million as of quarter-end.
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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City Office REIT Inc (NYSE:CIO) announced a partnership with Property Markets Group to redevelop a property in downtown St. Petersburg, Florida, into a luxury residential and mixed-use tower.
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The company completed 144,000 square feet of new and renewal leasing in the first quarter, including a significant 34,000 square foot lease at Papagotech property in Phoenix.
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City Office REIT Inc (NYSE:CIO) achieved an 8.5% positive cash releasing spread on renewals over the last 12 months, indicating strong rent growth.
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The company's same store cash NOI increased by 4.4% in the first quarter compared to the previous year, driven by strong performance in Raleigh.
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City Office REIT Inc (NYSE:CIO) is on track to meet its earnings and occupancy guidance for the year, with expectations of year-end occupancy between 85% to 87%.
Negative Points
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Portfolio occupancy ended the quarter at 84.9%, slightly lower than the previous quarter, with expectations of further decreases in the second quarter.
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The company anticipates a temporary dip in occupancy due to tenant transitions at Greenwood Boulevard and a vacate at the Amber property in Portland.
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City Office REIT Inc (NYSE:CIO) has two property debt maturities in 2025, requiring extensions and discussions with lenders.
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The company's net debt to EBITDA ratio is relatively high at 6.7 times, indicating significant leverage.
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There are concerns about potential disruptions to existing properties during the redevelopment of the parking structure in St. Petersburg.
Q & A Highlights
Q: How did the new development project in downtown St. Petersburg come about? A: James Farrar, CEO, explained that the project was initiated about two years ago due to the strong development market in downtown St. Petersburg. They conducted a thorough analysis to determine the best execution strategy, resulting in a partnership with Property Markets Group to generate significant value over time.