City Office REIT Inc ( (CIO) ) has released its Q2 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 acquiring, owning, and operating office properties in the United States, with a portfolio that spans several major metropolitan areas.
City Office REIT Inc. has released its second-quarter 2025 earnings report, revealing a net loss attributable to common stockholders of approximately $107.2 million, alongside rental and other revenues of $42.3 million. The company also highlighted significant leasing activity and strategic transactions, including a pending merger and property sales.
Key financial metrics from the report include a Core Funds from Operations (Core FFO) of $11.8 million and an Adjusted Funds from Operations (AFFO) of $3.0 million. The company executed approximately 355,000 square feet of new and renewal leases, maintaining an in-place occupancy rate of 82.5%. Additionally, City Office REIT announced a property sale in Phoenix, Arizona, for $296.0 million and a pending merger agreement with MCME Carell Holdings, LP.
The merger agreement with MCME Carell Holdings, LP, proposes an acquisition of all outstanding shares of City Office for $7.00 per share, representing a significant premium over recent trading prices. This transaction, valued at approximately $1.1 billion, is contingent upon the completion of the Phoenix property sale and other conditions.
Looking ahead, City Office REIT’s management has suspended future quarterly common stock dividend payments in anticipation of the merger’s completion. The company will continue to pay dividends on its preferred stock and has ceased providing forward guidance due to the pending merger transaction.