City Office REIT (CIO) AI Stock Analysis

• Market Cap: $280.53M
• Dividend Yield: 5.76%
• Average Volume (3M): 414.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -5.61%
• EPS Growth: -651.25%
• Country: US
• Employees: 20
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.14
• Shares Outstanding: 40,363,640
• 10 Day Avg. Volume: 599,169
• 30 Day Avg. Volume: 414,984
• PEG Ratio: -0.08
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 3.76
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: 4.63
• Enterprise Value/Gross Profit: 7.64
• Enterprise Value/Ebitda: -22.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.71
• Revenue Forecast (FY): $170.40M

• Rating: 49 Neutral
• Price Target: $7.00 ▲(2.94% Upside)

City Office REIT's overall stock score reflects significant financial challenges, including declining revenue and profitability, and legal uncertainties related to a merger. While technical indicators suggest a short-term upward trend, the negative P/E ratio and potential overbought conditions warrant caution. The high dividend yield is attractive but may not be sustainable.

Positive Factors

Business Model Strength

The company's focus on long-term leases provides predictable cash flow, supporting financial stability and resilience in the office REIT sector.

Leverage Management

Improved leverage management enhances financial flexibility, allowing the company to better navigate economic fluctuations and invest in growth opportunities.

New Leadership

The appointment of new leadership can bring fresh perspectives and strategies, potentially improving governance and operational efficiency.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in maintaining market position and could hinder long-term financial health and investor confidence.

Profitability Issues

Negative profitability margins highlight operational challenges, potentially affecting the company's ability to sustain dividends and invest in growth.

Merger Uncertainties

Legal uncertainties surrounding the merger could impact strategic direction and investor confidence, affecting long-term business stability.

City Office REIT Business Overview & Revenue Model

Company Description

City Office REIT, Inc. (CIO) is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and operation of office properties located in metropolitan areas across the United States. The company primarily invests in high-quality office buildings that are typically leased to a diverse range of tenants, including government agencies and professional services firms. City Office REIT aims to generate attractive returns for its shareholders by strategically managing its portfolio and enhancing the value of its properties.

How the Company Makes Money

City Office REIT generates revenue primarily through leasing office space to tenants, which provides a steady stream of rental income. The company's revenue model is based on long-term leases, which typically range from 5 to 10 years, allowing for predictable cash flow. Key revenue streams include base rental income, which is supplemented by additional income from tenant reimbursements for operating expenses, as well as potential revenue from lease renewals and escalations. The company may also engage in property management and leasing services, which can further enhance its earnings. Strategic partnerships with local and national firms also contribute to its ability to attract and retain tenants, thereby solidifying its income base.

City Office REIT Financial Statement Overview

Summary

City Office REIT faces significant financial challenges with negative profitability and fluctuating cash flows. While maintaining a balanced leverage position, the company's ability to generate returns for shareholders is limited. The stable gross profit margin indicates some operational efficiency, but stagnant revenue growth and negative net income highlight the need for strategic improvements.

Income Statement

City Office REIT's income statement shows a challenging financial position. The TTM data indicates a negative net profit margin of -71.27%, and EBIT margin of -51.22%, reflecting significant losses. Revenue growth is stagnant at 0.1%, indicating limited expansion. Historical data shows fluctuating revenue growth with a peak in 2022, but recent years have seen declining profitability. The gross profit margin remains relatively stable around 60%, suggesting some operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial structure with a debt-to-equity ratio of 1.06 in the TTM period, indicating a balanced leverage position. However, the return on equity is negative at -17.06%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is approximately 46.3%, suggesting a reasonable level of equity financing. Historical data shows fluctuating debt levels, with a peak in 2022, but a general trend towards reducing leverage.

Cash Flow

Cash flow analysis shows a mixed picture. The TTM free cash flow growth rate is negative at -3.69%, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.17, reflecting limited cash generation relative to net income. However, the free cash flow to net income ratio is 1.0, suggesting that the company is able to convert its net income into free cash flow effectively. Historical data shows volatility in cash flow growth, with significant fluctuations over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.79M	171.13M	179.10M	180.49M	164.04M	160.84M
Gross Profit	99.15M	101.67M	109.10M	112.75M	106.04M	102.53M
EBITDA	-34.45M	75.16M	92.83M	97.75M	90.55M	91.84M
Net Income	-123.41M	-17.68M	-2.68M	25.20M	484.39M	-21.84M
Balance Sheet
Total Assets	1.07B	1.46B	1.51B	1.57B	1.60B	1.16B
Cash, Cash Equivalents and Short-Term Investments	21.35M	18.89M	30.08M	28.19M	21.32M	25.30M
Total Debt	401.90M	646.97M	669.51M	890.60M	653.65M	677.24M
Total Liabilities	456.78M	721.13M	738.74M	771.26M	730.92M	739.42M
Stockholders Equity	610.05M	733.86M	772.23M	802.83M	869.62M	416.93M
Cash Flow
Free Cash Flow	47.59M	58.86M	57.22M	97.11M	65.03M	52.13M
Operating Cash Flow	47.59M	58.86M	57.22M	106.68M	73.22M	59.92M
Investing Cash Flow	225.22M	-40.29M	-41.34M	-47.05M	-17.38M	-27.80M
Financing Cash Flow	-276.56M	-28.01M	-16.75M	-57.63M	-59.53M	-73.69M

City Office REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIO, the sentiment is Positive. The current price of 6.8 is below the 20-day moving average (MA) of 6.88, below the 50-day MA of 6.91, and above the 200-day MA of 5.97, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.86 is Neutral, neither overbought nor oversold. The STOCH value of 89.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CIO.

City Office REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PDM	55 Neutral	$1.03B	―	-4.45%	6.00%	-1.23%	9.10%
ONL	51 Neutral	$115.44M	―	-18.67%	8.08%	-11.41%	-56.73%
CIO	49 Neutral	$280.53M	―	-17.91%	5.76%	-5.61%	-651.25%
OPI	41 Neutral	―	―	―	―	―	―
NYC	41 Neutral	$20.05M	―	-25.83%	―	-17.00%	89.73%
FSP	40 Neutral	$98.90M	―	-7.21%	4.13%	-14.68%	-13.53%

City Office REIT Corporate Events

City Office REIT Announces Merger with MCME Carell

City Office REIT, Inc. announced a merger agreement dated July 23, 2025, with MCME Carell Holdings, LP and MCME Carell Merger Sub, LLC. As part of the merger, City Office REIT will redeem all outstanding shares of its 6.625% Series A Cumulative Redeemable Preferred Stock at $25.00 per share plus accrued distributions, with the redemption anticipated on January 9, 2026. This merger could impact the company’s operations and stakeholder relationships.

City Office REIT Appoints New Chairwoman

On November 23, 2025, City Office REIT, Inc. announced the passing of John Sweet, Chairman of the Board of Directors. Following this event, Sabah Mirza has been appointed as Chairwoman of the Board, and Michael Mazan has joined the Compensation Committee, filling the vacancy left by Mr. Sweet.

City Office REIT Approves Merger with MCME Carell

On October 16, 2025, City Office REIT held a special meeting where stockholders approved a merger with MCME Carell Holdings, LP and MCME Carell Merger Sub, LLC. The merger, which is expected to close in the fourth quarter of 2025, will result in City Office stockholders receiving $7.00 per share in cash. Although the merger proposal was approved, the advisory compensation proposal was not. The merger is subject to closing conditions, and its completion could impact the company’s operations and stakeholder relationships.

City Office REIT Faces Stockholder Challenges in Merger

On July 23, 2025, City Office REIT, Inc. entered into a Merger Agreement with MCME Carell Holdings, LP, and its subsidiary, which will result in the company merging into the subsidiary. The merger has faced challenges, including demand letters and complaints from stockholders alleging omissions in the proxy statement. Despite these challenges, City Office REIT is supplementing its proxy statement to address these claims and proceed with the merger, which is scheduled for a stockholder vote on October 16, 2025. The company maintains that the allegations are without merit and that the disclosures comply with legal requirements.