City Office REIT (CIO) AI Stock Analysis

• Market Cap: $282.14M
• Dividend Yield: 5.76%
• Average Volume (3M): 428.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• 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: 54,547,000
• 10 Day Avg. Volume: 261,388
• 30 Day Avg. Volume: 428,656
• 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: 2.34
• Enterprise Value/Revenue: 4.04
• Enterprise Value/Gross Profit: 6.67
• Enterprise Value/Ebitda: -19.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• 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. (NYSE: CIO) invests in high-quality office properties in 18-hour cities with strong economic fundamentals, primarily in the Southern and Western United States. At September 30, 2020, CIO owned office complexes comprising 5.8 million square feet of net rentable area (NRA).

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 is facing significant financial challenges, with declining revenue and profitability as reflected in the income statement. While the balance sheet shows some improvement in leverage, the negative return on equity and cash flow challenges highlight ongoing operational difficulties. The company needs to address its profitability issues to improve its overall financial health.

Income Statement

City Office REIT's income statement shows declining revenue growth with a negative trend in profitability. The TTM data indicates a gross profit margin of 60.54%, which is relatively stable, but the net profit margin is significantly negative at -75.34%, reflecting substantial losses. The EBIT and EBITDA margins are also negative, indicating operational challenges. Overall, the income statement reflects a struggling financial performance with declining revenue and profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.66 in the TTM period, which is an improvement from previous years, suggesting better leverage management. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio stands at 57.15%, showing a reasonable level of equity financing. Despite some improvements in leverage, the negative ROE highlights ongoing profitability issues.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -9.42% in the TTM period, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.26, suggesting limited cash generation relative to net income losses. However, the free cash flow to net income ratio is 1.0, indicating that free cash flow is sufficient to cover net income losses. Overall, the cash flow position is stable but reflects underlying profitability challenges.

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 6.97, below the 50-day MA of 6.92, and above the 200-day MA of 6.14, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 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	$1.08B	-15.45	-4.45%	6.09%	-1.23%	9.10%
ONL	51 Neutral	$115.44M	-0.88	-18.67%	7.34%	-11.41%	-56.73%
CIO	49 Neutral	$282.14M	-2.19	-17.91%	5.76%	-5.61%	-651.25%
NYC	48 Neutral	$26.73M	-1.08	-25.83%	―	-17.00%	89.73%
FSP	40 Neutral	$98.12M	-2.04	-7.21%	4.71%	-14.68%	-13.53%

City Office REIT Corporate Events

City Office REIT Acquired and Taken Private by MCME

On January 9, 2026, a joint venture between Elliott Investment Management and Morning Calm Management, operating as MCME Carrell, completed its previously announced acquisition of City Office REIT for $7.00 per share in cash, leading to the delisting of the company’s common and preferred stock from the New York Stock Exchange and the planned suspension of its SEC reporting obligations. In connection with the closing, City Office REIT fully repaid and terminated its 2018 credit agreement, redeemed all outstanding 6.625% Series A preferred shares for $25.00 per share plus accrued distributions, cashed out and vested all outstanding equity awards, replaced its board and management with those of the acquisition vehicle, and converted the surviving entity’s governing documents, marking City Office’s transition from a publicly traded REIT to a privately held portfolio under MCME Carrell with the backing of Elliott and Morning Calm’s strategy to capitalize on opportunities in the U.S. commercial office market.

The most recent analyst rating on (CIO) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on City Office REIT stock, see the CIO Stock Forecast page.

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.

The most recent analyst rating on (CIO) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on City Office REIT stock, see the CIO Stock Forecast page.

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.

The most recent analyst rating on (CIO) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on City Office REIT stock, see the CIO Stock Forecast page.

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.

The most recent analyst rating on (CIO) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on City Office REIT stock, see the CIO Stock Forecast page.