City Office REIT (CIO) AI Stock Analysis

• Market Cap: $278.51M
• Dividend Yield: 5.8%
• Average Volume (3M): 416.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -3.69%
• EPS Growth: -777.30%
• Country: US
• Employees: 20
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -2.66
• Shares Outstanding: 40,363,640
• 10 Day Avg. Volume: 370,282
• 30 Day Avg. Volume: 416,071
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.40
• Enterprise Value/Revenue: 5.60
• Enterprise Value/Gross Profit: 9.27
• Enterprise Value/Ebitda: -36.83
• 1Y Price Target: $7.00
• Price Target Upside: 0.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: $7.00 ▲(0.86% Upside)

City Office REIT's overall stock score is primarily influenced by its financial performance and technical analysis. The company's financial health is challenged by negative profitability and stagnant growth, which are significant risks. However, the technical indicators suggest a moderately positive trend, providing some optimism. The valuation is mixed, with a high dividend yield but negative P/E ratio, indicating potential risks for investors.

Positive Factors

Merger Approval

The approved merger with MCME Carell Holdings, LP could provide strategic benefits and financial stability, enhancing long-term shareholder value.

Stable Gross Profit Margin

A stable gross profit margin indicates effective cost management, which supports operational efficiency and long-term profitability potential.

Balanced Leverage Position

A balanced leverage position provides financial flexibility, allowing the company to manage debt effectively and pursue growth opportunities.

Negative Factors

Negative Profitability

Persistent negative profitability indicates challenges in cost control and revenue generation, potentially impacting long-term financial health.

Stagnant Revenue Growth

Stagnant revenue growth suggests difficulties in expanding market share or increasing demand, which could hinder long-term growth prospects.

Fluctuating Cash Flows

Fluctuating cash flows can strain liquidity and limit the company's ability to invest in growth initiatives or weather economic downturns.

City Office REIT Business Overview & Revenue Model

Company Description

City Office REIT (CIO) is a real estate investment trust (REIT) focused on owning and operating high-quality office properties located primarily in metropolitan areas across the United States. The company targets markets with strong economic fundamentals, aiming to provide attractive risk-adjusted returns for its shareholders. City Office REIT invests in properties that cater to a diverse range of tenants, including both government and private sector businesses, and emphasizes the management and leasing of its assets to optimize performance and increase overall value.

How the Company Makes Money

City Office REIT generates revenue primarily through leasing office spaces to tenants, which provides a steady stream of rental income. The company typically enters into long-term lease agreements, allowing for predictable cash flows. Additionally, City Office REIT may earn revenue from ancillary services related to property management and maintenance. The company also benefits from appreciation in property values, which can enhance returns when properties are sold or refinanced. Strategic partnerships with local property management firms and brokers can further contribute to its earnings by optimizing occupancy rates and tenant mix, ultimately driving higher rental income.

City Office REIT Financial Statement Overview

Summary

City Office REIT faces significant financial challenges, with negative profitability and fluctuating cash flows. While the company maintains a balanced leverage position, its 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. Overall, the financial health of the company is moderate, with potential risks due to its current financial trajectory.

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	168.89M	171.13M	179.10M	180.49M	164.04M	160.84M
Gross Profit	102.08M	101.67M	109.10M	112.75M	106.04M	102.53M
EBITDA	-25.70M	75.16M	94.26M	97.75M	90.55M	91.84M
Net Income	-120.38M	-17.68M	-2.68M	25.20M	484.39M	-21.84M
Balance Sheet
Total Assets	1.33B	1.46B	1.51B	1.57B	1.60B	1.16B
Cash, Cash Equivalents and Short-Term Investments	34.50M	18.89M	30.08M	28.19M	21.32M	25.30M
Total Debt	652.92M	646.97M	669.51M	890.60M	653.65M	677.24M
Total Liabilities	712.72M	721.13M	738.74M	771.26M	730.92M	739.42M
Stockholders Equity	614.94M	733.86M	772.23M	802.83M	869.62M	416.93M
Cash Flow
Free Cash Flow	52.54M	58.86M	57.22M	97.11M	65.03M	52.13M
Operating Cash Flow	52.54M	58.86M	57.22M	106.68M	73.22M	59.92M
Investing Cash Flow	-33.09M	-40.29M	-41.34M	-47.05M	-17.38M	-27.80M
Financing Cash Flow	-28.29M	-28.01M	-16.75M	-57.63M	-59.53M	-73.69M

City Office REIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIO, the sentiment is Neutral. The current price of 6.94 is below the 20-day moving average (MA) of 6.95, below the 50-day MA of 6.95, and above the 200-day MA of 5.67, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.87 is Neutral, neither overbought nor oversold. The STOCH value of 11.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CIO.

City Office REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CIO	―	$278.51M	-2.18	-17.53%	5.80%	-3.69%	-777.30%
PDM	―	$1.00B	-14.22	-4.45%	6.21%	-1.23%	9.10%
ONL	―	$142.48M	―	-10.03%	6.32%	-15.14%	16.61%
OPI	―	―	―	―	―	―	―
NYC	―	$25.82M	―	-112.61%	―	-11.84%	52.84%
FSP	―	$125.47M	-2.72	-7.21%	3.31%	-14.68%	-13.53%

City Office REIT Corporate Events

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.

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.

The most recent analyst rating on (CIO) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on City Office REIT stock, see the CIO Stock Forecast page.

City Office REIT Announces Special Meeting for Merger Vote

City Office REIT, Inc. has announced a special meeting of stockholders scheduled for October 16, 2025, to vote on a proposed merger with MCME Carell Merger Sub, LLC, a subsidiary of MCME Carell Holdings, LP. Under the terms of the merger agreement, City Office REIT will merge into Merger Sub, and stockholders will receive $7.00 per share in cash. The company’s board of directors has unanimously approved the merger, considering it in the best interests of the company and its stockholders. The approval of the merger requires a majority vote from the holders of City Office REIT’s common stock.

The most recent analyst rating on (CIO) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on City Office REIT stock, see the CIO Stock Forecast page.

City Office REIT Sells Phoenix Properties for $266 Million

On August 15, 2025, City Office REIT, Inc. completed the sale of six office properties in Phoenix, Arizona, for $266 million to an unaffiliated buyer, as part of a previously announced disposition plan. Concurrently, the company amended its credit agreement, reducing the revolving credit facility to $150 million and securing borrowings with certain assets. This strategic move aims to streamline operations and improve financial flexibility, potentially impacting the company’s market positioning and stakeholder interests.

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 Reports Q2 2025 Earnings Amid Merger Plans

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 Announces Merger with MCME Carell Holdings

On July 23, 2025, City Office REIT entered into a merger agreement with MCME Carell Holdings, where City Office will be acquired for $7.00 per share in a transaction valued at approximately $1.1 billion. This merger, approved by the board, includes the sale of the company’s Phoenix portfolio and is expected to close in the fourth quarter of 2025, subject to shareholder approval and other customary conditions. The transaction offers a significant premium over the current stock price, reflecting a strategic move in a challenging office sector environment. Additionally, City Office announced the sale of its Phoenix assets for $296 million, with proceeds intended to repay debt and for general corporate purposes. The sale is scheduled to close on August 14, 2025, and is not contingent upon the merger’s completion.

The most recent analyst rating on (CIO) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on City Office REIT stock, see the CIO Stock Forecast page.