VANCOUVER, Feb. 25, 2022 /PRNewswire/ -- City Office REIT,
Inc. (NYSE: CIO) (the "Company," "City Office," "we" or "our")
today announced its results for the quarter and full year ended
December 31, 2021.
Fourth Quarter Highlights
- Rental and other revenues were $39.7
million. GAAP net income attributable to common stockholders
was approximately $431.2 million, or
$9.76 per fully diluted share;
- Core FFO was approximately $15.8
million, or $0.36 per fully
diluted share;
- AFFO was approximately $7.7
million, or $0.17 per fully
diluted share;
- Closed the disposition of the Sorrento Mesa portfolio in
San Diego, California for a gross
sale price of $576.0 million,
generating a gain on sale of $429.3
million;
- Completed the acquisition of $613.5
million of premier office properties in Raleigh, North Carolina, Phoenix, Arizona and Dallas, Texas;
- Same Store Cash NOI decreased 0.5% in the fourth quarter and
increased 2.2% for the full year 2021 as compared to the same
periods in 2020;
- In-place occupancy closed the quarter at 84.9%, or 88.4%
excluding two recent acquisitions that are in lease-up phase and/or
have signed leases that have not yet taken occupancy;
- Executed approximately 134,000 square feet of new and renewal
leases during the quarter, bringing the 2021 full year total to
approximately one million square feet;
- Renewed and expanded our unsecured credit facility, increasing
the total authorized borrowings to $350
million;
- Increased the fourth quarter dividend 33.3% from $0.15 per share to $0.20 per share of common stock, paid on
January 25, 2022; and
- Declared a fourth quarter dividend of $0.4140625 per share of Series A Preferred Stock,
paid on January 25, 2022.
"The fourth quarter of 2021 contained some of the most impactful
events in the Company's history," commented James Farrar, the Company's Chief Executive
Officer. "The closing of the $576
million sale of the Sorrento Mesa portfolio in December was
transformational for the Company. With the sale proceeds, we
purchased $613.5 million of
best-in-class properties, added Raleigh as a new, high-growth market and
deepened our footprint in Dallas
and Phoenix. All three properties were newly constructed and
have stable, long-term tenancy, significantly enhancing the quality
of our portfolio and setting us up for long-term growth. The
impact of these transactions can be seen in our increased dividend
and our new 2022 Core FFO per share guidance, the midpoint of which
is 16% higher than our 2021 Core FFO per share results."
"Our focus in 2022 is to drive cash flow growth at a time when
many tenants are implementing their return-to-the-office plans.
Specifically, we are concentrating on leasing our most
impactful vacancies and creating desirable, move-in ready space to
capture demand for quality office space in our high growth
cities. Despite challenges caused by the pandemic, we
continue to seek opportunities to unlock value in strategic and
creative ways."
A reconciliation of certain non-GAAP financial measures,
including FFO, Core FFO, AFFO, NOI, Same Store NOI, Same Store Cash
NOI, Adjusted Cash NOI and their equivalent per share measures, to
the most directly comparable financial measure under U.S. generally
accepted accounting principles ("GAAP") can be found at the end of
this release.
Portfolio Operations
The Company reported that its total portfolio as of December 31, 2021 contained 6.2 million net
rentable square feet and was 84.9% occupied. Occupancy was impacted
by the acquisition of two newly constructed properties that are in
lease-up phase and/or have signed leases that have not yet taken
occupancy. Excluding the recently acquired Bloc 83 and Block
23 properties, portfolio occupancy was 88.4% as of December 31, 2021.
Net Operating Income was approximately $25.1 million and Adjusted Cash NOI (CIO share)
was approximately $23.9 million for
the fourth quarter of 2021. Net Operating Income benefited from
$1.0 million of termination fee
income recognized in the quarter.
Same Store Cash NOI decreased 0.5% for the three months ended
December 31, 2021 as compared to the
same period in the prior year. Same Store Cash NOI increased
2.2% for the year ended December 31,
2021 as compared to the same period in the prior year.
Investment and Disposition Activity
On December 2, 2021, the Company
completed the previously announced disposition of its Sorrento Mesa
life science portfolio in San Diego,
California for a gross sale price of $576.0 million and generated a gain on sale of
$429.3 million.
On December 6, 2021, the Company
completed the previously announced acquisition of Block 23, a
highly-amenitized office building comprised of approximately
307,000 square feet located in the downtown submarket of
Phoenix, Arizona. The purchase
price was $150.0 million, exclusive
of closing costs. The property was 62% occupied but 94% leased at
closing, including signed leases that had not yet taken occupancy.
The tenant base is approximately 70% investment grade, with a
weighted average lease term remaining of approximately 12
years.
On December 9, 2021, the Company
completed the previously announced acquisition of The Terraces, a
premier office building comprised of approximately 173,000 square
feet situated in the Preston Center submarket of Dallas, Texas. The purchase price was
$133.5 million, exclusive of closing
costs. The property was 99% leased at closing, including signed
leases that had not yet taken occupancy, to a diverse tenant base,
with a weighted average lease term remaining of approximately 8
years.
On December 31, 2021, the Company
completed the previously announced acquisition of Bloc 83, a newly
constructed two-building office complex comprised of approximately
495,000 square feet located in the downtown submarket of
Raleigh, North Carolina. The
purchase price was $330.0 million,
exclusive of closing costs. One building was 97% leased at closing
with a weighted average lease term remaining of approximately 10
years. The second building was delivered in 2021 and is in its
initial lease-up phase at approximately 67% leased as of
closing. Combined, Bloc 83 was 62% occupied but approximately
80% leased at closing, including signed leases that had not yet
taken occupancy.
Leasing Activity
The Company's total leasing activity during the fourth quarter
of 2021 was approximately 134,000 square feet, which included
72,000 square feet of new leasing and 62,000 square feet of
renewals. Approximately 126,000 square feet of leases signed within
the quarter will commence subsequent to quarter end. The
Company's total leasing activity during the full year 2021 was
approximately 956,000 square feet.
New Leasing – New leases were signed with a weighted
average lease term of 6.0 years at a weighted average annual rent
of $25.29 per square foot and at a
weighted average cost of $7.12 per
square foot per year.
Renewal Leasing – Renewal leases were signed with a
weighted average lease term of 2.8 years at a weighted average
annual rent of $28.63 per square foot
and at a weighted average cost of $2.26 per square foot per year.
Capital Structure
As of December 31, 2021, the
Company had total principal outstanding debt of approximately
$658.5 million. Approximately
$466.5 million, or 70.8%, of the
Company's outstanding debt was fixed rate. When factoring in the
$50 million term loan as fixed rate
debt due to an interest swap, approximately 78.4% of the Company's
debt was effectively fixed rate. City Office's total principal
outstanding debt had a weighted average maturity of approximately
4.2 years and a weighted average interest rate of 3.4%.
During the quarter, the Company renewed and expanded its
unsecured credit facility. The maturity date of the credit
facility was extended to 2025 with a one-year extension option and
the borrowing availability of the revolving facility was increased
from $250 million to $300 million. Combined with the
Company's five-year term loan, the total authorized borrowings
under the unsecured credit facility increased from $300 million to $350
million.
Dividends
On December 17, 2021, the
Company's board of directors approved and the Company declared a
cash dividend of $0.20 per share of
the Company's common stock for the three months ended December 31, 2021. The dividend was paid on
January 25, 2022 to common
stockholders and unitholders of record as of January 11, 2022.
On December 17, 2021, the
Company's board of directors approved and the Company declared a
cash dividend of $0.4140625 per share
of the Company's 6.625% Series A Preferred Stock for the three
months ended December 31, 2021. The
dividend was paid on January 25, 2022
to preferred stockholders of record as of January 11, 2022.
2022 Outlook
The Company is introducing its full year 2022 guidance. The
midpoint of 2022 Core FFO per diluted share expectations represents
a 16% increase over the actual 2021 Core FFO per diluted
share. Same Store Cash NOI Change expectations are most
heavily impacted by a significant signed lease with a free rent
period and lower projected average occupancy as compared to the
prior year. 2022 guidance assumes no share issuances or share
repurchase activity. Further, guidance does include the impact of a
modest amount of speculative leasing, generally weighted towards
the back half of the year.
Full Year 2022
Guidance
|
Low
|
High
|
|
Planned
Acquisitions
|
$0.0M
|
$0.0M
|
|
Planned
Dispositions
|
$0.0M
|
$44.0M
|
|
Net Operating
Income
|
$113.0M
|
$115.0M
|
|
General &
Administrative Expenses
|
$14.0M
|
$15.0M
|
|
Interest
Expense
|
$24.0M
|
$25.0M
|
|
2022 Core FFO per
diluted share
|
$1.56
|
$1.60
|
|
Net Recurring
Straight-Line Rent Adjustment
|
$5.0M
|
$6.0M
|
|
Same Store Cash NOI
Change
|
(6.0%)
|
(4.0%)
|
|
December 31, 2022
Occupancy
|
86.5%
|
88.5%
|
|
Material Considerations:
- Planned Dispositions reflects the potential sale of the Lake
Vista Pointe property in Dallas
pursuant to the sole tenant's purchase option.
- Termination fee income of $1.0
million has been included in 2022 guidance.
- The General and Administrative Expenses guidance includes
approximately $4.0 million for
stock-based compensation. Our Core FFO definition excludes
stock-based compensation. Excluding stock-based compensation,
General and Administrative Expenses guidance for Full Year 2022
would have been $10.0 million –
$11.0 million.
- Annual weighted average fully diluted shares of common stock
outstanding are assumed to be approximately 44.4 million.
The Company's guidance is based on current plans and assumptions
and subject to the risks and uncertainties more fully described in
the Company's filings with the United States Securities and
Exchange Commission. This outlook reflects management's view of
current and future market conditions, including assumptions such as
the pace of future acquisitions and dispositions, rental rates,
occupancy levels, leasing activity, uncollectible rents, operating
and general administrative expenses, weighted average diluted
shares outstanding and interest rates. The Company reminds
investors that the impacts of the COVID-19 pandemic are uncertain
and impossible to predict. See "Forward-looking Statements"
below.
Webcast and Conference Call Details
City Office's management will hold a conference call at
11:00 am Eastern Time on February 25, 2022.
The webcast will be available under the "Investor Relations"
section of the Company's website at www.cioreit.com. The
conference call can be accessed by dialing 1-866-262-0919 for
domestic callers and 1-412-902-4106 for international callers.
A replay of the call will be available later in the day on
February 25, 2022, continuing through
11:59 pm Eastern Time on May 25, 2022 and can be accessed by dialing
1-877-344-7529 for domestic callers and 1-412-317-0088 for
international callers. The passcode for the replay is
8069262. A replay will also be available for twelve months
following the call at "Webcasts & Events" in the "Investor
Relations" section of the Company's website.
A supplemental financial information package to accompany the
discussion of the results will be posted on www.cioreit.com under
the "Investor Relations" section.
Non-GAAP Financial Measures
Funds from Operations ("FFO") – The National Association
of Real Estate Investment Trusts ("NAREIT") states FFO should
represent net income or loss (computed in accordance with GAAP)
plus real estate related depreciation and amortization (excluding
amortization of deferred financing costs) and after adjustments of
unconsolidated partnerships and joint ventures, gains or losses on
the sale of property and impairments to real
estate.
The Company uses FFO as a supplemental performance measure
because the Company believes that FFO is beneficial to investors as
a starting point in measuring the Company's operational
performance. We also believe that, as a widely recognized
measure of the performance of REITs, FFO will be used by investors
as a basis to compare the Company's operating performance with that
of other REITs.
However, because FFO excludes depreciation and amortization and
captures neither the changes in the value of the Company's
properties that result from use or market conditions nor the level
of capital expenditures and leasing commissions necessary to
maintain the operating performance of the Company's properties, all
of which have real economic effects and could materially impact the
Company's results from operations, the utility of FFO as a measure
of the Company's performance is limited. In addition, other
equity REITs may not calculate FFO in accordance with the NAREIT
definition as the Company does, and, accordingly, the Company's FFO
may not be comparable to such other REITs' FFO. Accordingly,
FFO should be considered only as a supplement to net income as a
measure of the Company's performance.
Core Funds from Operations ("Core FFO") – We calculate
Core FFO by using FFO as defined by NAREIT and adjusting for
certain other non-core items. We also exclude from our
Core FFO calculation acquisition costs, loss on early
extinguishment of debt, changes in the fair value of the earn-out,
changes in fair value of contingent consideration and the
amortization of stock based compensation.
We believe Core FFO provides a useful metric in comparing
operations between reporting periods and in assessing the
sustainability of our ongoing operating performance. Other equity
REITs may calculate Core FFO differently or not at all, and,
accordingly, the Company's Core FFO may not be comparable to such
other REITs' Core FFO.
Adjusted Funds from Operations ("AFFO") – We compute
AFFO by adding to Core FFO the non-cash amortization of deferred
financing fees and non-real estate depreciation and then
subtracting cash paid for recurring tenant improvements, leasing
commissions, and capital expenditures, and eliminating the net
effect of straight-line rent / expense, deferred market rent and
debt fair value amortization. Recurring capital expenditures
exclude development / redevelopment activities, capital
expenditures planned at acquisition and costs to reposition a
property. We exclude first generation leasing costs within
the first two years of our initial public offering or acquisition,
which are generally to fill vacant space in properties we acquire
or were planned at acquisition. We have further excluded all
costs associated with tenant improvements, leasing commissions and
capital expenditures which were funded by the entity contributing
the properties at closing.
Along with FFO and Core FFO, we believe AFFO provides investors
with appropriate supplemental information to evaluate the ongoing
operations of the Company. Other equity REITs may calculate AFFO
differently, and, accordingly, the Company's AFFO may not be
comparable to such other REITs' AFFO.
Net Operating Income ("NOI"), Adjusted Cash NOI (CIO
share) – We define NOI as rental and other revenues less
property operating expenses. We define Adjusted Cash NOI as
NOI less the effect of recurring straight-line rent / expense,
deferred market rent, and any amounts which are funded by the
selling entities and NCI in properties.
We consider NOI and Adjusted Cash NOI to be appropriate
supplemental performance measures to net income because we believe
they provide information useful in understanding the core
operations and operating performance of our portfolio.
Same Store Net Operating Income ("Same Store NOI") and Same
Store Cash Net Operating Income ("Same Store Cash NOI") –
Same Store NOI and Same Store Cash NOI is calculated as the NOI
attributable to the properties continuously owned and operated for
the entirety of the reporting periods presented. The Company's
definition of Same Store NOI and Same Store Cash NOI excludes
properties that were not stabilized during both of the applicable
reporting periods. These exclusions may include, but are not
limited to, acquisitions, dispositions and properties undergoing
repositioning or significant renovations.
We believe Same Store NOI and Same Store Cash NOI is an
important measure of comparison because it allows for comparison of
operating results of stabilized properties owned and operated for
the entirety of both applicable periods and therefore eliminates
variations caused by acquisitions, dispositions or repositionings
during such periods. Other REITs may calculate Same Store NOI and
Same Store Cash NOI differently and our calculation should not be
compared to that of other REITs.
Forward-looking Statements
This press release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Certain statements contained in this press release, 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 the Company's current beliefs as to the outcome
and timing of future events. Forward-looking statements are
generally identifiable by use of forward-looking terminology such
as "approximately," "anticipate," "assume," "believe," "budget,"
"contemplate," "continue," "could," "estimate," "expect," "future,"
"hypothetical," "intend," "may," "outlook," "plan," "potential,"
"predict," "project," "seek," "should," "target," "will" or
other similar words or expressions. There can be no assurance that
actual forward-looking statements, including projected capital
resources, projected profitability and portfolio performance,
estimates or developments affecting the Company will be those
anticipated by the Company. Examples of forward-looking statements
include those pertaining to expectations regarding our financial
performance, including under metrics such as NOI and FFO, market
rental rates, national or local economic growth, estimated
replacement costs of our properties, the Company's expectations
regarding tenant occupancy, re-leasing periods, projected capital
improvements, expected sources of 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, and changes in local, regional, national and international
economic conditions, including as a result of the ongoing COVID-19
pandemic. Forward-looking statements presented in this press
release are based on management's beliefs and assumptions made by,
and information currently available to, management.
The forward-looking statements contained in this press release
are based on historical performance and management's current plans,
estimates and expectations in light of information currently
available to us and are subject to uncertainty and changes in
circumstances. There can be no assurance that future developments
affecting us will be those that we have 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 our news releases
and filings with the SEC, including but not limited to those
described in our Annual Report on Form 10-K for the year ended
December 31, 2021 under the heading
"Risk Factors" and in our subsequent reports filed with the SEC,
many of which are beyond our control. Should one or more of these
risks or uncertainties materialize, or should any of our
assumptions prove to be incorrect, our actual results may vary in
material respects from what we may have expressed or implied by
these forward-looking statements. We caution that you should not
place undue reliance on any of our forward-looking statements. Any
forward-looking statement made by us in this press release speaks
only as of the date of this press release. Factors or events that
could cause our actual results to differ may emerge from time to
time, and it is not possible for us to predict all of them. The
Company does not guarantee that the assumptions underlying such
forward-looking statements contained in this press release are free
from errors. Unless otherwise stated, historical financial
information and per share and other data are as of December 31, 2021 or relate to the quarter ended
December 31, 2021. We undertake no
obligation 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.
City Office REIT,
Inc.
|
Consolidated
Balance Sheets
|
|
(In thousands,
except par value and share data)
|
|
December
31, 2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Real estate
properties
|
|
|
|
Land
|
$
204,801
|
|
$
204,289
|
Building and
improvement
|
1,244,177
|
|
777,184
|
Tenant
improvement
|
119,011
|
|
104,694
|
Furniture, fixtures
and equipment
|
664
|
|
642
|
|
1,568,653
|
|
1,086,809
|
Accumulated
depreciation
|
(157,356)
|
|
(131,220)
|
|
1,411,297
|
|
955,589
|
Cash and cash
equivalents
|
21,321
|
|
25,305
|
Restricted
cash
|
20,945
|
|
20,646
|
Rents receivable,
net
|
30,415
|
|
32,968
|
Deferred leasing
costs, net
|
20,327
|
|
16,829
|
Acquired lease
intangible assets, net
|
68,925
|
|
44,143
|
Other
assets
|
28,283
|
|
15,758
|
Assets held for
sale
|
—
|
|
46,054
|
Total
Assets
|
$
1,601,513
|
|
$
1,157,292
|
Liabilities and
Equity
|
|
|
|
Liabilities:
|
|
|
|
Debt
|
$
653,648
|
|
$
677,242
|
Accounts payable and
accrued liabilities
|
27,101
|
|
25,414
|
Deferred
rent
|
11,600
|
|
7,295
|
Tenant rent
deposits
|
6,165
|
|
4,801
|
Acquired lease
intangible liabilities, net
|
10,872
|
|
6,035
|
Other
liabilities
|
21,532
|
|
18,099
|
Liabilities related to
assets held for sale
|
—
|
|
531
|
Total
Liabilities
|
730,918
|
|
739,417
|
Commitments and
Contingencies
|
|
|
|
Equity:
|
|
|
|
6.625% Series A
Preferred stock, $0.01 par value per share, 5,600,000 shares
authorized,
4,480,000 issued and outstanding as of December 31, 2021 and
2020
|
112,000
|
|
112,000
|
Common stock, $0.01
par value, 100,000,000 shares authorized, 43,554,375 and
43,397,117
shares issued and outstanding as of December 31, 2021 and 2020
respectively
|
435
|
|
433
|
Additional paid-in
capital
|
482,061
|
|
479,411
|
Retained
earnings/(accumulated deficit)
|
275,502
|
|
(172,958)
|
Accumulated other
comprehensive loss
|
(382)
|
|
(1,960)
|
Total Stockholders'
Equity
|
869,616
|
|
416,926
|
Non-controlling
interests in properties
|
979
|
|
949
|
Total
Equity
|
870,595
|
|
417,875
|
Total Liabilities and
Equity
|
$
1,601,513
|
|
$
1,157,292
|
|
|
|
|
City Office REIT,
Inc.
|
Consolidated
Statements of Operations
|
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Rental and other
revenues
|
$
39,672
|
|
$
39,840
|
|
$
164,041
|
|
$
160,840
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Property operating
expenses
|
14,529
|
|
14,647
|
|
58,005
|
|
58,312
|
General and
administrative
|
1,721
|
|
2,665
|
|
15,489
|
|
10,690
|
Depreciation and
amortization
|
13,299
|
|
15,145
|
|
57,317
|
|
60,367
|
Total operating
expenses
|
29,549
|
|
32,457
|
|
130,811
|
|
129,369
|
|
|
|
|
|
|
|
|
Operating
income
|
10,123
|
|
7,383
|
|
33,230
|
|
31,471
|
Interest
expense:
|
|
|
|
|
|
|
|
Contractual interest
expense
|
(5,736)
|
|
(6,590)
|
|
(23,268)
|
|
(26,363)
|
Amortization of
deferred financing costs and debt fair
value
|
(462)
|
|
(332)
|
|
(1,332)
|
|
(1,326)
|
|
(6,198)
|
|
(6,922)
|
|
(24,600)
|
|
(27,689)
|
Net gain on sale of
real estate property
|
429,250
|
|
—
|
|
476,651
|
|
1,347
|
Net
income
|
433,175
|
|
461
|
|
485,281
|
|
5,129
|
Less:
|
|
|
|
|
|
|
|
Net income
attributable to non-controlling interests in
properties
|
(126)
|
|
(88)
|
|
(886)
|
|
(602)
|
|
|
|
|
|
|
|
|
Net income
attributable to the Company
|
433,049
|
|
373
|
|
484,395
|
|
4,527
|
Preferred stock
distributions
|
(1,855)
|
|
(1,855)
|
|
(7,420)
|
|
(7,420)
|
Net income/(loss)
attributable to common stockholders
|
$
431,194
|
|
$
(1,482)
|
|
$
476,975
|
|
$
(2,893)
|
|
|
|
|
|
|
|
|
Net income/(loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
9.90
|
|
$
(0.03)
|
|
$
10.97
|
|
$
(0.06)
|
Diluted
|
$
9.76
|
|
$
(0.03)
|
|
$
10.80
|
|
$
(0.06)
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
43,554
|
|
43,397
|
|
43,498
|
|
47,223
|
Diluted
|
44,162
|
|
43,397
|
|
44,145
|
|
47,223
|
|
|
|
|
|
|
|
|
Dividend
distributions declared per common share
|
$
0.20
|
|
$
0.15
|
|
$
0.65
|
|
$
0.60
|
|
|
|
|
|
|
|
|
City Office REIT,
Inc.
|
Reconciliation of
Net Income to Net Operating Income and Adjusted Cash
NOI
|
(Unaudited)
|
|
(In
thousands)
|
|
|
Three Months
Ended
December 31, 2021
|
Net income
|
$
433,175
|
Adjustments to net
income:
|
|
General and
administrative
|
1,721
|
Contractual interest
expense
|
5,736
|
Amortization of
deferred financing costs and debt fair value
|
462
|
Depreciation and
amortization
|
13,299
|
Net gain on sale of
real estate property
|
(429,250)
|
Net Operating Income
("NOI")
|
$
25,143
|
Net recurring
straight-line rent/expense adjustment
|
(963)
|
Net amortization of
above and below market leases
|
61
|
Portfolio Adjusted
Cash NOI
|
$
24,241
|
NCI in properties –
share in cash NOI
|
(365)
|
Adjusted Cash NOI
(CIO share)
|
$
23,876
|
|
|
City Office REIT,
Inc.
|
Reconciliation of
Net Income to FFO, Core FFO and AFFO
|
(Unaudited)
|
|
(In thousands,
except per share data)
|
|
|
Three Months
Ended
December 31, 2021
|
Net income
attributable to common stockholders
|
$
431,194
|
(+) Depreciation and
amortization
|
13,299
|
(-) Net gain on sale
of real estate property
|
(429,250)
|
|
15,243
|
Non-controlling
interests in properties:
|
|
(+) Share of net
income
|
126
|
(-) Share of
FFO
|
(282)
|
FFO attributable to
common stockholders
|
$
15,087
|
(+) Stock based
compensation
|
665
|
Core FFO attributable
to common stockholders
|
$
15,752
|
(-) Net recurring
straight-line rent/expense adjustment
|
(963)
|
(+) Net amortization
of above and below market leases
|
61
|
(+) Net amortization
of deferred financing costs and debt fair value
|
460
|
(-) Net recurring
tenant improvements and incentives
|
(4,548)
|
(-) Net recurring
leasing commissions
|
(1,222)
|
(-) Net recurring
capital expenditures
|
(1,850)
|
AFFO attributable to
common stockholders
|
$
7,690
|
|
|
FFO per common
share
|
$
0.34
|
Core FFO per common
share
|
$
0.36
|
AFFO per common
share
|
$
0.17
|
|
|
Dividends
distributions declared per common share
|
$
0.20
|
FFO Payout
Ratio
|
59%
|
Core FFO Payout
Ratio
|
56%
|
AFFO Payout
Ratio
|
115%
|
|
|
Weighted average
common shares outstanding - diluted
|
44,162
|
City Office REIT,
Inc.
|
Reconciliation of
Rental and Other Revenues to Same Store NOI and Same Store Cash
NOI
|
(Unaudited)
|
|
(In
thousands)
|
|
|
Three Months
Ended
December 31,
|
|
Years Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Rental and other
revenues
|
$
39,672
|
|
$
39,840
|
|
$
164,041
|
|
$
160,840
|
Property operating
expenses
|
14,529
|
|
14,647
|
|
58,005
|
|
58,312
|
Net operating income
("NOI")
|
$
25,143
|
|
$
25,193
|
|
$
106,036
|
|
$
102,528
|
Less: NOI of properties
not included in same store
|
(2,966)
|
|
(3,332)
|
|
(5,011)
|
|
(8,685)
|
Same store
NOI
|
$
22,177
|
|
$
21,861
|
|
$
101,025
|
|
$
93,843
|
Less:
|
|
|
|
|
|
|
|
Non-recurring other income
|
—
|
|
—
|
|
—
|
|
(29)
|
Termination fee
income
|
(1,027)
|
|
—
|
|
(8,437)
|
|
(532)
|
Straight-line
rent/expense adjustment
|
251
|
|
(460)
|
|
638
|
|
(2,073)
|
Above and below market
leases
|
67
|
|
188
|
|
344
|
|
149
|
NCI in properties –
share in cash NOI
|
(365)
|
|
(388)
|
|
(1,860)
|
|
(1,611)
|
Same store cash
NOI
|
$
21,103
|
|
$
21,201
|
|
$
91,710
|
|
$
89,747
|
|
|
|
|
|
|
|
|
City Office REIT,
Inc.
|
Reconciliation of
Net Income to Core FFO Guidance
|
(Unaudited)
|
|
(In thousands,
except per share data)
|
|
|
Full Year 2022
Outlook
|
|
Low
|
|
High
|
Net income
attributable to common stockholders
|
$
22,900
|
|
$
3,900
|
(+) Depreciation and
amortization
|
63,000
|
|
64,000
|
(-) Net gain on sale
of real estate property
|
(20,000)
|
|
-
|
(-) Non-controlling
interests in properties
|
(700)
|
|
(700)
|
FFO attributable to
common stockholders
|
$
65,200
|
|
$
67,200
|
(+) Stock based
compensation
|
4,000
|
|
4,000
|
Core FFO attributable
to common stockholders
|
$
69,200
|
|
$
71,200
|
|
|
|
|
FFO per common
share
|
$
1.47
|
|
$
1.51
|
Core FFO per common
share
|
$
1.56
|
|
$
1.60
|
|
|
|
|
Weighted average
shares of common stock
|
44,400
|
|
44,400
|
Contact
City Office REIT, Inc.
Anthony Maretic, CFO
+1-604-806-3366
investorrelations@cityofficereit.com
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SOURCE City Office REIT, Inc.