City Office REIT Inc ( (CIO) ) has released its Q3 earnings. Here is a breakdown of the information City Office REIT Inc presented to its investors.
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City Office REIT Inc. is a real estate investment trust that focuses on owning, operating, and acquiring high-quality office properties in major markets across the United States. The company is headquartered in Vancouver and is recognized for its strategic investments in office spaces.
City Office REIT Inc. reported its financial results for the third quarter of 2024, highlighting a series of key business developments and financial metrics. The company noted rental and other revenues of $42.4 million, while reporting a net loss attributable to common stockholders of $4.5 million. Despite the losses, City Office maintained a robust leasing activity, executing 141,000 square feet of new and renewal leases within the quarter.
Key financial highlights include a Core Funds from Operations (Core FFO) of $11.1 million or $0.27 per fully diluted share, and an Adjusted Funds from Operations (AFFO) of $4.8 million or $0.12 per share. The company achieved an occupancy rate of 83.4%, which increases to 87.0% when accounting for leases that have been signed but not yet commenced. Another significant achievement was the completion of the repayment of a $50 million term loan, showcasing a strategic approach to managing debt.
City Office’s strategic focus on enhancing its property portfolio with renovations and upgrades is anticipated to drive future occupancy gains. The company plans to complete renovations at four properties over the next two quarters, which aligns with its strategy to meet leasing demand and increase occupancy rates.
Looking ahead, City Office REIT remains optimistic as it updates its full-year guidance for 2024. The company expects further improvements in occupancy rates and aims to capitalize on the strong leasing momentum observed throughout the year. Management continues to focus on strategic property enhancements and disciplined financial management to navigate ongoing market uncertainties.
