City Office REIT Reports Strong Leasing Momentum in 2024

City Office REIT Inc ( (CIO) ) has released its Q4 earnings. Here is a breakdown of the information City Office REIT Inc presented to its investors.

City Office REIT Inc. is a real estate investment trust that focuses on acquiring, owning, and operating office properties in the United States, with a portfolio spanning several key urban markets.

City Office REIT Inc. reported its fourth-quarter and full-year 2024 financial results, highlighting strong leasing momentum and increased occupancy rates. Despite a net loss in the fourth quarter, the company experienced a notable increase in leasing activity and same-store cash net operating income.

In the fourth quarter of 2024, City Office REIT recorded rental revenues of $41.9 million and a net loss of $12.6 million attributable to common stockholders, equating to a loss of $0.31 per share. The company achieved a core funds from operations (FFO) of $11.7 million or $0.28 per share, with an adjusted FFO of $4.3 million or $0.10 per share. The quarter saw an in-place occupancy rate of 85.4%, with leasing activities totaling approximately 205,000 square feet. Additionally, the company declared dividends for both common and preferred stockholders.

Notably, City Office REIT completed the sale of its Superior Pointe property in Denver for $12.0 million shortly after the quarter ended. This strategic move is part of the company’s ongoing efforts to optimize its portfolio. Looking ahead, the company anticipates benefiting from completed renovations and expects an increase in occupancy rates and same-store cash NOI growth in 2025.

City Office REIT’s management remains cautiously optimistic about the future, projecting core FFO per share for 2025 to range between $1.10 and $1.14. The company aims to capitalize on its well-positioned office assets and expects continued positive leasing activity, although it acknowledges potential market uncertainties.