CIO Stock Recent News

City Office has been left for dead in the unloved REIT sector during late 2023, despite solid FFO generation and a stable future. The valuation setup is at all-time lows on work-from-home fears for office property demand, and rising long-term interest rates. A technical oversold condition, lack of volume selling to confirm new price lows in October, and a large price gain last week on light volume, make the bullish argument.

City Office REIT's equity should be avoided due to a debt-saturated balance sheet, negative outlook on interest costs, and unfavorable lease maturities. Investing in CIO's preferred shares may be a better option, as the key risk (i.e., debt refinancings) is well managed due to the recent dividend cut and access to liquidity. The preferred share distributions are also well-covered by the AFFO making the bet on 9.7% yielding shares an attractive investment play.

City Office REIT (CIO) came out with quarterly funds from operations (FFO) of $0.35 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.40 per share a year ago.

Real estate stocks are forming the perfect storm. First, the pandemic greatly reduced society's desire to use various kinds of commercial real estate.

VANCOUVER , June 30, 2023 /PRNewswire/ -- City Office REIT, Inc. (NYSE: CIO) ("City Office" or the "Company") announced today it will release its financial results for the quarter ended June 30, 2023, before the market opens on Thursday, August 3, 2023. City Office's management will hold a conference call at 11:00 am Eastern Time on August 3, 2023 to discuss the Company's financial results.

City Office REIT (CIO) faces challenges due to a high debt ratio, unfavorable lease maturities, and rising interest rate costs, making its equity a less attractive investment. CIO's preferred shares offer a more appealing option, with a current yield of 9.7% and potential for capital appreciation. Ample liquidity, strong cash retention, and signs of resiliency in Q1 2023 results suggest that CIO can refinance and survive the office crisis, making its preferred shares a safer investment.

City Office REIT has recently cut the dividend on its common shares, and that's good news as the payout ratio will now drop below 100%. The preferred shares are still in good shape thanks to a safety net of almost $700M in common equity on the balance sheet. The book value of the unencumbered properties exceeds $800M. Plenty of value to cover the $270M in debt on the corporate level and the $112M in preferred shares outstanding.

The sector got pounded hard today. The biggest decliners fell over 10%.

An office REIT located in the promising sunbelt region. Unfortunately, with high lease expirations and low liquidity.

City Office REIT, Inc. (NYSE:CIO ) Q1 2023 Earnings Conference Call May 5, 2023 11:00 AM ET Company Participants Tony Maretic - CFO, Treasurer & Corporate Secretary Jamie Farrar - CEO Conference Call Participants Rob Stevenson - Janney Barry Oxford - Colliers Craig Kucera - B. Riley Operator Good morning, and welcome to the City Office REIT, Inc. First Quarter 2023 Earnings Conference Call.