Slides
Page 1
I N V E S T O R P R E S EN TATIO N N Y S E: CIO F E B R U A R Y 2 0 2 5
Page 2
FORWARD-LOOKING STATEMENTS This presentation contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have used the words “approximately,” “anticipate,” “assume,” “believe,” “budget,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “hypothetical,” “future,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will” and similar terms and phrases to identify forward-looking statements in this presentation. All of our forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we are expecting. Examples of forward-looking statements include those pertaining to expectations regarding the Company’s financial performance, including under metrics such as NOI and FFO, market rental rates, national or local economic growth, including the impact of inflation, estimated replacement costs of the Company’s properties, the Company’s expectations regarding tenant occupancy, re-leasing periods, the Company’s ability to renew expiring leases, tenant compliance with contractual lease obligations, 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 systemic and structural changes in the demand for commercial office space. Forward-looking statements presented in this presentation are based on management’s beliefs and assumptions made by, and information currently available to, management. The forward-looking statements contained in this presentation are based on historical performance and management’s current plans, estimates and expectations in light of information currently available to the Company and are subject to uncertainty and changes in circumstances. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. 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 U.S. Securities and Exchange Commission (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, 2024 under the heading “Risk Factors” and in the Company’s subsequent reports filed with the SEC, many of which are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove to be incorrect, the Company’s actual results may vary in material respects from what the Company may have expressed or implied by these forward-looking statements. CIO cautions that you should not place undue reliance on any of CIO’s forward-looking statements. Any forward-looking statement made by the Company in this presentation speaks only as of the date of this presentation. 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 or its management to predict all of them. The Company does not guarantee that the assumptions underlying such forward-looking statements contained in this presentation are free from errors. Unless otherwise stated, historical financial information and per share and other data are as of December 31, 2024 or relate to the quarter ended December 31, 2024. The Company has no obligation, and does not undertake, 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
Page 3
Market NRA (000s SF) Annualized Gross Rent per SF In Place Occupancy Lease Term Remaining Phoenix, AZ 1,519 $32.75 73.3% 4.7 Tampa, FL 1,055 $30.20 86.8% 4.1 Orlando, FL 721 $27.91 96.7% 3.5 Raleigh, NC 493 $40.07 93.8% 7.4 Dallas, TX 284 $56.30 79.0% 4.9 San Diego, CA 281 $40.54 91.6% 3.7 Denver, CO 653 $34.20 88.0% 4.0 Seattle, WA 207 $30.58 100.0% 4.1 Portland, OR 203 $25.44 97.0% 1.9 Total 5,416 $33.59 85.8% 4.5 SUN BELT MARKETS - 88% of estimated gross asset value (1) OTHER MARKETS - 12% of estimated gross asset value (1) 10% Note: All information as of December 31, 2024, adjusted for the sale of Superior Pointe in Denver in January 2025 (1) Percentages based on management’s estimate of aggregate gross asset value in each market City Office owns a portfolio of premier office properties concentrated in high-growth Sun Belt markets DALLAS, TX ORLANDO, FL TAMPA, FL PHOENIX, AZ 10% 19% 25% SAN DIEGO, CA 5% CURRENT MARKETS (1) 3 COMPANY OVERVIEW RALEIGH, NC 19% The Terraces, Dallas Bloc 83, Raleigh Block 23, Phoenix DENVER, CO PORTLAND, OR 1% 7% SEATTLE, WA4% CIO Sun Belt Markets CIO Other Markets
Page 4
FOCUS ON LEADING SUN BELT MARKETS COMPANY HIGHLIGHTS 4 ❑ Attractive Sun Belt markets are capitalizing on labor force migration and corporate relocations ❑ Population shift to the Sun Belt has been accelerated by the pandemic ❑ City Office markets are the intersection of high quality of life, strong talent pool and relative affordability ❑ 5.4 million square feet of well-located properties (1); renovated or newer vintage ❑ Majority of the portfolio is Class A, core assets with strong tenancy ❑ Aligns with tenant preferences for quality and amenitized assets WELL-LOCATED, DIVERSIFIED PORTFOLIO ❑ CIO’s 13 dispositions have generated $550 million of gains on sale (1) ❑ Successful execution on property repositionings ❑ Track record of executing property level and corporate financings MANAGEMENT TEAM WITH AN EXCELLENT TRACK RECORD ❑ Strategic investments in property upgrades and spec suites to optimally position the portfolio for leasing ❑ Selective disposition of non-core properties to focus portfolio and enhance liquidity and flexibility ❑ Long term opportunities: acquisitions, development, redevelopment and recycling TAKING ACTIVE STEPS TO POSITION FOR LONG TERM SUCCESS Sorrento Mesa, San Diego Mission City, San Diego The Terraces, Dallas Bloc 83, Raleigh (1) Adjusted for the sale of Superior Pointe in Denver in January 2025
Page 5
0.3% 0.4% 0.9% Gateway Markets National Avg CIO Markets 0.1% 0.5% 1.1% Gateway Markets National Avg CIO Markets +54k INVESTING IN LEADING SUN BELT MARKETS NET MIGRATION FAVORS SOUTH AND WEST (3) (1) Source: Emerging Trends in Real Estate 2023. Gateway markets represent New York, NY, Boston, MA, Chicago, IL, Los Angeles, CA , San Francisco, CA and Washington, D.C. (2) Source: Emerging Trends in Real Estate 2024 (3) Source: US Census Bureau state population totals, vintage 2023. Note “bottom -10” includes Hawaii and Alaska, not pictured on map CORE PORTFOLIO LOCATED IN DESIRABLE SUBMARKETS ❑ Phoenix: Downtown, Scottsdale, Tempe, Camelback Corridor, Chandler ❑ Raleigh: Downtown – Glenwood South ❑ Tampa: Downtown Tampa, Downtown St. Petersburg ❑ Dallas: Preston Center, Uptown ❑ Orlando: Downtown Orlando, Florida Research Park ❑ San Diego: Mission Valley 5 NATION-LEADING OFFICE DEMAND DRIVERS (1) % PROJECTED EMPLOYMENT GROWTH 2023 – 2028 % PROJECTED POPULATION GROWTH 2023 – 2028 TOP REAL ESTATE MARKETS ARE IN THE SUN BELT (2) Green is top-10 Red is bottom-10 Number of Top-20 Markets
Page 6
❑ Supply-demand dynamic improving ❑ Return-to-office policies and growth of office-using employment driving leasing demand ❑ New office construction is at record lows; removal of office buildings from inventory further decreasing supply of office space ❑ Leasing gathered momentum in 2024 ❑ According to JLL, Q2, Q3 and Q4 2024 were among the highest leasing quarters in the last 5 years ❑ Flight to quality trend continues, benefitting City Office’s premium portfolio ❑ Across the US, vacancy is highly concentrated in outdated buildings. 10% of buildings comprise over 60% of total office vacancy ❑ Renovated office properties are seeing increased leasing success as the top-tier, newer buildings fill up POSITIVE TRENDS IN OFFICE REAL ESTATE Sources for this page: JLL – US Office Market Dynamics Q4 2024 and JLL - US Office Chart of the Week February 2025 (1) Dark blue columns represent leasing volume by coworking providers and are excluded from pre -pandemic average 6 OFFICE TENANT HEADCOUNTS VS OCCUPIED SPACE GROSS LEASING ACTIVITY (1) 13.1% spread Total office-using employment Occupied SF
Page 7
WELL-LOCATED, DIVERSIFIED PORTFOLIO Bloc 83 Raleigh, NC Top Raleigh asset at amenity epicenter ❑ 5.4 million square feet of properties concentrated in high-growth Sun Belt markets (1) ❑ Acquisition of three properties in Raleigh, Phoenix and Dallas for $614 million in December 2021 enhanced the portfolio ❑ Significant portfolio value is concentrated across high-value and well-positioned properties ❑ The ten assets below generate ~65% of portfolio NOI and over 70% of management’s estimate of gross asset value ❑ Assets are ideally positioned in today’s leasing market: new or recently renovated, quality amenities and great locations 7 Block 23 Phoenix, AZ Adjacent to Phoenix Suns arena The Terraces Dallas, TX In desirable Preston Center Park Tower Tampa, FL Renovated tower within heart of CBD Mission City San Diego, CA Desirable Mission Valley submarket Florida Research Park Orlando, FL Portfolio in Research Park City Center Tampa, FL Walkable amenities in St. Petersburg Canyon Park Seattle, WA Seattle Genetics campus The Square Phoenix, AZ Irreplaceable location in Scottsdale The Quad Phoenix, AZ Amenitized creative office portfolio (1) Adjusted for the sale of Superior Pointe in Denver in January 2025
Page 8
MANAGEMENT TEAM WITH AN EXCELLENT TRACK RECORD $550 MILLION OF GAINS ACROSS 13 DISPOSITIONS (1) 8 ❑ 2021 life science portfolio sale generated $429 million gain 70% GROWTH IN GROSS RENT PER SF SINCE 2014 IPO ❑ Active leasing, strong markets, upgraded properties $19.78 Q4 2024 $33.60 Sorrento Mesa, San Diego (life science) SUCCESSFUL EXECUTION ON PROPERTY REPOSITIONINGS Park Tower, Tampa City Center, Tampa Circle Point, Denver (1) Includes the sale of Superior Pointe in Denver in January 2025 Camelback Square, Phoenix
Page 9
(1) As of December 31, 2024 ACTIVE STEPS TO POSITION FOR LONG TERM SUCCESS 9 SanTan, Phoenix ACTIVE APPROACH TO CREATING VALUE ❑ Strategic property and common area enhancements to optimally position the portfolio ❑ Invest in ready-to-lease spec suites and vacancy conditioning to win greater leasing market share ❑ Accelerating leasing activity has resulted in a healthy new leasing pipeline for City Office ❑ Enhance cash flow through stabilization of recent acquisitions and lease-up of portfolio vacancy ❑ 122,000 SF of new leases have been signed but not yet commenced (2.2% of portfolio) (1) ❑ Strategically dispose of non-core assets ❑ Long term: acquisitions, strategic development and select redevelopment to a higher and better use Enhancing portfolio through strategic renovations, focus on leasing and pruning non-core properties Lobby and amenity renovation at City Center RENOVATIONS AT PIMA CENTER, 5090, CITY CENTER AND 2525 MCKINNON Amenity renovation at Pima Center Upgrades to outdoor spaces at 5090
Page 10
VALUE-CREATION OPPORTUNITY AT CITY CENTER (1) 10 ❑ City Center has received unanimous approval of its site plan application from the City of St. Petersburg, FL ❑ The approval is for the demolition of the stand-alone parking garage to allow for a new 49-story multi-use waterfront tower development, including approximately 164 residential condos and 78,000 SF of retail and office ❑ City Office is advancing agreements with an experienced developer to lead the execution ❑ Condo sales program targeted for 2025 (1) Images are renderings from the City of St. Petersburg site plan application and are subject to change and have not been permi tted at this time. Any possible redevelopment of City Center remains subject to a number of conditions, some of which are beyond the control of the Company
Page 11
Full Year 2025 Low High Net Operating Income $102.5M $104.5M Interest Expense $37.0M $38.0M Core FFO per Share $1.10 $1.14 December 31, 2025 Occupancy 85.0% 87.0% Same Store Cash NOI Change 2.5% 4.5% RECENT HIGHLIGHTS AND 2025 OUTLOOK 11 FOURTH QUARTER 2024 (1) See the Appendix for a reconciliation of certain non-GAAP financial measures to the most directly comparable financial measure u nder U.S. generally accepted accounting principles (“GAAP”) (2) See the Company’s Q4 2024 earnings press release and the Company’s Annual Report on Form 10 -K for the year ended December 31, 2024 under the heading “Cautionary Statement Regarding Forward- Looking Statements” and “Risk Factors” for further discussion of the material assumptions underlying the Company’s guidance. This outlook reflects management’s current view of current and future operations and market conditions, which management cannot guarantee will occur as expected, or at all, including the impact o f the work-from-home trend, which is impossible to predict 2025 GUIDANCE (1)(2) ❑ 2025 Core FFO per Share guidance is in line with Q4 2024 annualized ❑ Includes disposition of Superior Pointe; no other acquisitions or dispositions assumed Bloc 83, Raleigh ❑ Core FFO per share of $0.28 and AFFO per share of $0.10 ❑ Executed 205,000 SF of new and renewal leases ❑ Signed a 60,000 SF lease at The Terraces, comprised of a 44,000 SF renewal to 2036 and a 16,000 SF co-terminous expansion ❑ After quarter end, completed the sale of Superior Pointe in Denver for gross sale proceeds of $12.0 million
Page 12
Professional and Technical Services 38% Finance and Insurance 17% Health Care and Life Sciences 10% Technology and Information 9% Real Estate 8% Government 7% Accomodation and Food 3% Construction 2% Other 6% DIVERSE TENANT PROFILE 12 TOP TEN TENANTS OF OUR PROPERTIES (2) LEASE MATURITIES – LONG-TERM TENANCY PROFILE WITH WELL-STAGGERED EXPIRATIONS (2) (1) Represents percentages of occupied net rentable area (2) As of December 31, 2024 (3) Credit rating indicated is for the United States Government (4) WeWork has leases at two of our properties. Of the 106,000 square feet, 25,000 square feet at The Terraces expires in 2032, 2 8,000 square feet at Bloc 83 expires in 2026, and 53,000 square feet at Bloc 83 expires in 2035 12.4% 9.7% 9.9% 13.3% 11.5% 11.5% 8.2% 5.5% 3.1% 4.9% 7.8% 2.2% Contracted 0% 5% 10% 15% 20% 25% 30% Vacant & Contracted 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 & Thereafter DIVERSIFIED TENANT BASE (1)(2) Tenant / Parent Credit Rating (S&P / Moody's) Tenant Since NRA (000s) Lease Expiration % of Net Rentable Area Seattle Genetics Inc. -- 2019 207 2029 3.7% HF Management Services LLC -- 2012 155 2028 2.8% H. Lee Moffitt Cancer Center A2 2008 155 2027 2.8% Paychex, Inc. -- 2009 127 2029 / 2030 2.3% Jackson National Life Insurance A 2007 122 2027 2.2% Envestnet Asset Management -- 2021 109 2033 2.0% GSA US Attorneys Office (3) AA+ 1998 108 2026 1.9% WeWork (4) -- 2019 106 26 / 32 / 35 1.9% Epsilon Data Management, LLC -- 2018 83 2031 1.5% Sedgwick Claims B+ 2022 78 2027 1.4% Total 1,250 22.5%
Page 13
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2025 2026 2027 2028 2029 2030 (5) CONSERVATIVE STRUCTURE WITH STRONG LIQUIDITY ❑ 5.1% weighted average interest rate ❑ 6.9x Net Debt to Annualized Adjusted EBITDA (1) ❑ 82.3% fixed rate debt (2) ❑ 1.9 year weighted average debt maturity WELL-STAGGERED DEBT MATURITIES ($000S) – DECEMBER 31, 2024 13 Debt Balance: $649.5 million (3)(4) LIQUIDITY AS OF DECEMBER 31, 2024DEBT METRICS AS OF DECEMBER 31, 2024 (1) Net debt calculated as debt principal less cash, cash equivalents and restricted cash (2) Includes the impact of interest rate swaps (3) $649.5 million represents the principal debt balance as of December 31, 2024 before deferred financing costs (4) $6.6 million of indebtedness attributable to non-controlling interests (5) The credit facility may be extended by one year to November 2026 subject to certain standard conditions and with the payment of an extension fee $305,341 Interest Rate: 5.53% $180,939 Interest Rate: 4.10% $108,641 Interest Rate: 5.35% ❑ $19 million of cash and cash equivalents ❑ $15 million of restricted cash at property level ❑ $325 million unsecured credit facility of which $25 million is a term loan and $300 million is a revolving line of credit ❑ Over $40 million of undrawn authorized on the revolving line of credit Credit Facility $39,096 Interest Rate: 5.44% $15,497 Interest Rate: 7.68%
Page 14
APPENDIX: EXECUTIVES AND BOARD OF DIRECTORS 14 John Sweet , Chairman Jamie Farrar , CEO & Director Michael Mazan , Director John McLernon , Director Sabah Mirza, Director Mark Murski , Director BOAR D OF DIRECTOR S JAMIE FARRAR, CHIEF EXECUTIVE OFFICER ❑ Over 20 years of real estate, private equity and corporate finance industry experience ❑ Completed the acquisition of over $3.0 billion of real estate since 2010 ❑ Prior experience with a family office focused on real estate and hospitality as well as the private equity group of the TD Bank GREG TYLEE, CHIEF OPERATING OFFICER & PRESIDENT ❑ Over 20 years of diverse real estate experience that includes acquisitions of income-producing properties as well as high-rise development ❑ Involved in real estate transactions, including development and management, with a combined enterprise value of over $4.0 billion ❑ Former President of Bosa Properties Inc., a prominent real estate development company with over 400 employees TONY MARETIC, CHIEF FINANCIAL OFFICER, SECRETARY & TREASURER ❑ Over 20 years of experience in senior financial and operational roles ❑ Former Chief Operating Officer and Chief Financial Officer of Earls Restaurants Ltd., a multi-national hospitality company ❑ Held financial management positions with BentallGreenOak and a senior living real estate company ✓ ✓ ✓ ✓ ✓ ✓ Indicates Independent Director
Page 15
APPENDIX: PROPERTY OVERVIEW 15 (1) Annualized Average Effective Rent accounts for the impact of straight-line rent adjustments, including the amortization of rent escalations and base rent concessions (e.g., free rent abatements) contained in the lease. The square foot result per property is calculated by multiplying ( i) Average Effective Rent for the month ended December 31, 2024 by (ii) 12, divided by the occupied square footage in that per iod (2) Annualized gross rent per square foot includes adjustment for estimated expense reimbursements of triple net leases (3) Annualized base rent is calculated by multiplying (i) rental payments (defined as cash rents before abatements) for the month ended December 31, 2024 by (ii) 12 (4) Annualized base rent per square foot for Block 23 excludes percentage leases (5) Averages weighted based on the property’s NRA, adjusted for occupancy (6) Adjusted for the sale of Superior Pointe in Denver in January 2025 Metropolitan Area Property Economic Interest NRA (000s SF) In Place Occupancy Annualized Average Effective Rent per SF1 Annualized Base Rent per SF Annualized Gross Rent per SF 2 Annualized Base Rent (000s) 3 Largest Tenant by NRA Phoenix, AZ Block 234 100.0% 307 89.0% $27.66 $29.23 $32.73 $7,277 Western Alliance Bank Pima Center 100.0% 272 58.5% $27.86 $29.67 $29.67 $4,720 First American Title Insurance SanTan 100.0% 267 53.1% $32.18 $33.47 $33.47 $4,739 Dialog Semiconductor 5090 N 40th St 100.0% 173 70.7% $33.11 $35.37 $35.37 $4,325 OpenTV Camelback Square 100.0% 174 74.1% $34.04 $36.53 $36.53 $4,708 SiSense (Mashura LLC) The Quad 100.0% 163 97.4% $33.37 $34.76 $35.08 $5,518 Paradox, LLC Papago Tech 100.0% 163 79.2% $25.43 $26.67 $26.67 $3,436 Regional Acceptance Corp. Tampa, FL Park Tower 94.8% 482 93.4% $29.07 $29.51 $29.51 $13,275 GSA US Attorneys Office City Center 95.0% 245 75.8% $33.38 $34.48 $34.48 $6,404 Kobie Marketing, Inc. Intellicenter 100.0% 204 76.1% $24.31 $25.96 $25.96 $4,023 H. Lee Moffitt Cancer Center Carillon Point 100.0% 124 100.0% $30.41 $31.63 $31.63 $3,928 Paychex, Inc. Orlando, FL Florida Research Park 96.6% 398 99.7% $26.23 $27.06 $28.46 $10,722 Sedgwick Claims Central Fairwinds 97.0% 168 86.4% $27.64 $29.23 $29.23 $4,249 Fairwinds Credit Union Greenwood Blvd 100.0% 155 100.0% $24.84 $25.25 $25.25 $3,915 HF Management Services LLC Raleigh, NC Bloc 83 100.0% 493 93.8% $41.26 $39.74 $40.07 $18,380 Envestnet Asset Mgmt Dallas, TX The Terraces 100.0% 173 85.6% $39.00 $38.86 $59.36 $5,742 Eagle Materials 2525 McKinnon 100.0% 111 68.7% $29.48 $31.32 $50.32 $2,394 The Retail Connection San Diego, CA Mission City 100.0% 281 91.6% $39.12 $40.54 $40.54 $10,443 Willis Towers Watson 4,353 84.3% $31.57 $32.41 $34.10 $118,198 Denver, CO Denver Tech 100.0% 381 85.6% $23.58 $24.51 $32.58 $7,999 Jackson National Life Insurance Co Circle Point 100.0% 272 91.2% $19.71 $20.69 $36.34 $5,138 Epsilon Data Management, LLC Seattle, WA Canyon Park 100.0% 207 100.0% $22.31 $24.58 $30.58 $5,082 Seattle Genetics Inc. Portland, OR AmberGlen 76.0% 203 97.0% $22.74 $24.34 $25.44 $4,806 Planar Systems, Inc. 1,063 92.0% $22.16 $23.52 $31.67 $23,025 Total / Weighted Average 5,416 85.8% $29.59 $30.54 $33.59 $141,223 Sun Belt - Subtotal / Weighted Average 5 Other - Subtotal / Weighted Average 5 6
Page 16
Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 INCOME ITEMS Net loss (10,556)$ (2,487)$ (3,627)$ (454)$ (2,522)$ NOI 25,479$ 24,588$ 24,850$ 26,749$ 26,934$ Same Store Cash NOI Change 3.3% 0.2% (2.0%) (1.0%) (0.5%) Net loss per share - diluted (0.31)$ (0.11)$ (0.14)$ (0.06)$ (0.11)$ Core FFO / Share 0.28$ 0.27$ 0.28$ 0.33$ 0.33$ AFFO / Share 0.10$ 0.12$ 0.13$ 0.22$ 0.23$ EBITDA (CIO share) 22,244$ 21,424$ 21,683$ 23,682$ 23,645$ CAPITALIZATION Common shares 40,154 40,154 40,154 40,154 39,938 Unvested restricted shares 1,130 1,125 1,120 1,114 878 Total common shares - diluted 41,284 41,279 41,274 41,268 40,815 Weighted average common shares outstanding - diluted 41,283 41,278 41,273 41,155 40,813 Share price at quarter end 5.52$ 5.84$ 4.98$ 5.21$ 6.11$ Market value of common equity 227,890$ 241,072$ 205,546$ 215,008$ 249,380$ 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) 609,978$ 602,511$ 603,607$ 621,887$ 623,524$ Total enterprise value (including net debt) 949,868$ 955,583$ 921,153$ 948,895$ 984,904$ DEBT STATISTICS AND RATIOS Total principal debt (CIO share) 642,962$ 644,440$ 645,864$ 664,617$ 666,138$ Weighted average maturity 1.9 years 2.1 years 2.3 years 2.3 years 2.6 years Weighted average interest rate 5.1% 5.2% 5.0% 4.8% 4.8% Fixed rate debt as a percentage of total debt1 82.3% 82.3% 90.0% 91.1% 91.1% LEASING STATISTICS In-Place occupancy - Sun Belt markets 84.3% 82.2% 81.8% 82.6% 84.2% In-Place occupancy - Total portfolio 85.4% 83.4% 83.0% 83.0% 84.5% Weighted average remaining lease term 4.5 years 4.4 years 4.5 years 4.6 years 4.6 years APPENDIX: FINANCIAL HIGHLIGHTS 16 (in thousands, except per share data) (unaudited) (1) The fixed rate debt percentage includes the impact of interest rate swaps
Page 17
Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Net loss attributable to common stockholders (12,555)$ (4,494)$ (5,607)$ (2,444)$ (4,518)$ (+) Depreciation and amortization 14,881 14,642 14,723 15,075 17,192 (+) Net loss on disposition of real estate property - - 1,462 - - (+) Impairment of real estate 8,463 - - - - 10,789 10,148 10,578 12,631 12,674 Non-controlling interests in properties: (+) Share of net income 144 152 125 135 141 (-) Share of FFO (300) (313) (289) (294) (305) Funds from Operations ("FFO") 10,633$ 9,987$ 10,414$ 12,472$ 12,510$ (+) Stock based compensation 1,084 1,084 1,084 1,070 1,023 Core FFO 11,717$ 11,071$ 11,498$ 13,542$ 13,533$ (-/+) Net recurring straight-line rent/expense adjustment (10) 219 487 (305) (503) (-/+) Net amortization of above and below market leases (26) (32) (38) (27) 1,002 (+) Net amortization of def financing costs & debt fair value 351 367 341 316 315 (-) Net recurring tenant improvements and incentives (1,701) (2,815) (2,998) (2,172) (1,772) (-) Net recurring leasing commissions (3,203) (1,421) (1,722) (815) (1,219) (-) Net recurring capital expenditures (2,854) (2,591) (2,275) (1,464) (2,083) Adjusted Funds from Operations ("AFFO") 4,274$ 4,798$ 5,293$ 9,075$ 9,273$ FFO per common share 0.26$ 0.24$ 0.25$ 0.30$ 0.31$ Core FFO per common share 0.28$ 0.27$ 0.28$ 0.33$ 0.33$ AFFO per common share 0.10$ 0.12$ 0.13$ 0.22$ 0.23$ Dividends declared per common share 0.10$ 0.10$ 0.10$ 0.10$ 0.10$ FFO Payout Ratio 39% 41% 40% 33% 33% Core FFO Payout Ratio 35% 37% 36% 30% 30% AFFO Payout Ratio 97% 86% 78% 45% 44% Weighted average common shares outstanding - diluted 41,283 41,278 41,273 41,155 40,813 APPENDIX: FFO, CORE FFO AND AFFO 17 (in thousands, except per share data) (unaudited)
Page 18
Low High Net loss attributable to common stockholders (17,200)$ (16,700)$ (+) Depreciation and amortization 60,000 61,000 (-) Non-controlling interests in properties (200) (200) FFO attributable to common stockholders 42,600$ 44,100$ (+) Stock based compensation 3,400 3,400 Core FFO attributable to common stockholders 46,000$ 47,500$ FFO per common share 1.02$ 1.06$ Core FFO per common share 1.10$ 1.14$ Weighted average shares of common stock 41,700 41,700 Full Year 2025 Outlook APPENDIX: RECONCILIATION OF NET INCOME TO CORE FFO GUIDANCE 18 (in thousands, except per share data) (unaudited)
Page 19
C I TY O F F I CE R EIT, I N C. E: investorrelations@cioreit.com | T: 604 806 3366 Suite 3210 666 Burrard Street Vancouver, BC V6C 2X8 Suite 2960 500 North Akard Street Dallas, TX 75201