City Office REIT, Inc. (NYSE:CIO) Q3 2024 Earnings Conference Call October 31, 2024 11:00 AM ET Company Participants Tony Maretic - Chief Financial Officer, Treasurer and Corporate Secretary Jamie Farrar - Chief Executive Officer Conference Call Participants Upal Rana - KeyBanc Capital Markets Barry Oxford - Colliers Craig Kucera - Lucid Capital Markets Operator Good morning. And welcome to the City Office REIT, Inc. Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen ...

City Office REIT (CIO) came out with quarterly funds from operations (FFO) of $0.27 per share, missing the Zacks Consensus Estimate of $0.28 per share. This compares to FFO of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of -3.57%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.30 per share when it actually produced FFO of $0.28, delivering a surprise of -6.67%.Over the last four qu ...

Property Portfolio and Occupancy - As of September 30, 2024, the company owned 23 properties comprising 56 office buildings with a total of approximately 5.6 million square feet of net rentable area, with an occupancy rate of 83.4%[68] - The company reported that 13.0% of net rentable area was vacant as of September 30, 2024, a slight decrease from 13.7% a year earlier[72] - 2.3% of the company's leases are scheduled to expire over the remainder of the calendar year, without regard to renewal options[76] - As of September 30, 2024, approximately 16.7% of the net rentable area in the portfolio had early termination provisions, but no tenants exercised these provisions in 2024[76] - The company owned 23 properties with a total of approximately 5.6 million square feet of net rentable area (NRA) as of September 30, 2024[81] Financial Performance - For the three months ended September 30, 2024, total rental and other revenues decreased by $1.8 million, or 4%, to $42.4 million compared to $44.2 million for the same period in 2023[86] - Rental and other revenues decreased by $5.6 million, or 4%, to $129.2 million for the nine months ended September 30, 2024, from $134.8 million for the same period in 2023[92] - The company experienced a decrease in revenue at properties such as Intellicenter and 2525 McKinnon, attributed to lower occupancy rates[86] - The company reported a decrease in revenue due to the disposition of Cascade Station, which reduced revenue by $1.0 million[86] Operating Expenses - Total operating expenses increased by $0.3 million, or 1%, to $36.2 million for the three months ended September 30, 2024, from $35.9 million for the same period in 2023[88] - Property operating expenses increased by $0.2 million, or 1%, to $17.8 million for the three months ended September 30, 2024[88] - Total operating expenses decreased by $0.6 million, or 1%, to $108.8 million for the nine months ended September 30, 2024, from $109.4 million for the same period in 2023[93] - Property operating expenses increased by $0.4 million, or 1%, to $53.0 million for the nine months ended September 30, 2024, from $52.6 million for the same period in 2023[95] - General and administrative expenses increased by $0.3 million, or 7%, to $3.8 million for the three months ended September 30, 2024, compared to $3.5 million in the prior year period[89] Rental Rates and Tenant Retention - The average effective rent per square foot increased to $33.44, with new leasing at $33.91 and renewal leasing at $32.87[80] - The annualized average effective rent per square foot across all properties was $29.01[81] - The retention rate for tenants was reported at 42%[80] - The company aims to maintain or increase rental rates through rent escalation provisions in its leases, which are designed to provide annual growth in rental income[76] Economic and Market Conditions - The company has experienced slower new leasing activity due to evolving work-from-home trends, impacting anticipated rental revenues[73] - The company anticipates that the current economic environment, including inflation and interest rates, will continue to impact its operating activities and tenant demand[70] - The company anticipates continued positive population and economic growth in its Sun Belt markets, despite potential economic uncertainties[84] - The company focuses on acquiring office properties in growth markets predominantly in the Sun Belt, which are characterized by growing populations and above-average employment growth forecasts[75] - The company is actively evaluating business operations and strategies to adapt to current economic and industry conditions[75] Debt and Interest Rate Exposure - As of September 30, 2024, approximately $536.0 million, or 82.3%, of the company's debt had fixed interest rates, while $115.0 million, or 17.7%, had variable interest rates[121] - A 1% increase in SOFR would lead to a $1.2 million increase in annual interest costs on debt outstanding as of September 30, 2024[121] - Conversely, a 1% decrease in SOFR would result in a $1.2 million decrease in annual interest costs on debt outstanding as of September 30, 2024[121] - The company considers its interest rate exposure to be moderate due to the current capital structure[121] - The company utilizes derivative financial instruments to manage or hedge interest rate risks related to borrowings[120] - The fixed rate debt includes loans against which interest rate swaps have been applied, effectively fixing the SOFR component of borrowing rates[121] - Future debt issuances or borrowings under the Unsecured Credit Facility would incur increased interest costs with a 1% increase in SOFR[121] - The fair value of outstanding debt would decrease with a 1% increase in SOFR[121] - The company may take further actions to mitigate exposure to changes in interest rates, although specific actions and their effects are uncertain[122] - Interest rate risk estimates are based on hypothetical interest rates and do not account for changes in overall economic activity[122] Cash Flow and Financial Position - Net cash provided by operating activities increased by $1.8 million to $50.0 million for the nine months ended September 30, 2024, compared to $48.2 million for the same period in 2023[101] - Cash, cash equivalents, and restricted cash were $43.0 million as of September 30, 2024, down from $52.3 million as of September 30, 2023[100] - Depreciation and amortization decreased by $1.4 million, or 3%, to $44.4 million for the nine months ended September 30, 2024, from $45.8 million for the same period in 2023[97] - The company recognized a loss on deconsolidation of $1.5 million for the nine months ended September 30, 2024, compared to a loss of $0.1 million for the same period in 2023[99] - Net cash used in financing activities increased by $11.3 million to $20.6 million for the nine months ended September 30, 2024, compared to $9.3 million for the same period in 2023[104]

Exhibit 99.1 City Office REIT Reports Third Quarter 2024 Results VANCOUVER—October 31, 2024 —City Office REIT, Inc. (NYSE: CIO) (the "Company," "City Office," "we" or "our") today announced its results for the quarter ended September 30, 2024. Third Quarter Highlights • Rental and other revenues were $42.4 million. GAAP net loss attributable to common stockholders was approximately $4.5 million, or ($0.11) per fully diluted share; • Core FFO was approximately $11.1 million, or $0.27 per fully diluted share; ...

– Bank Named CIO Awards Canada Winner by IDC and CIO – LONDON, ON, Sept. 26, 2024 /PRNewswire/ - VersaBank has been named a CIO Awards Canada winner by IDC Canada and CIO. VersaBank CIO, Wooi Koay received the award at a CIO Awards Canada gala dinner hosted at The National Club in Toronto on September 25, 2024. CIO Awards Canada recognized VersaBank for its Capital Adequacy Requirement (CAR) project. Canada's banking regulator requires banks to set aside capital amounts for different loan types – known as c ...

China's slow post-Covid recovery could be a lasting headwind for its stock market. With the mainland's two largest indexes — the Shanghai Composite and the Shenzhen Composite — each negative so far in 2024, KraneShares Chief Investment Officer Brendan Ahern thinks government stimulus is necessary to kick-start the country's stock market performance. "Investors, particularly in mainland China … [are] looking for much, much stronger fiscal support from the government," he told CNBC's "ETF Edge" this week. "Th ...

Key Takeaways Ken Leech, the co-CIO of a Franklin Resources unit, took a leave of absence after receiving a Wells Notice from the Securities and Exchange Commission (SEC). The departure came as the company and federal regulators have been investigating certain past trade allocations in some Western Asset Management accounts. Western Asset said in light of Leech's exit, it has closed its Macro Opportunities fund in what it called the "best interests" of clients. Franklin Resources (BEN) was the worst-perform ...

Financial Data and Key Metrics Changes - The company's net operating income (NOI) for Q2 2024 was $24.9 million, which is $1.8 million lower than Q1 2024 due to lower occupancy and a $900,000 termination fee recognized in Q1 [13] - Core funds from operations (FFO) were reported at $11.5 million or $0.28 per share, a decrease of $2 million from Q1 2024, primarily driven by the decrease in NOI [13] - Adjusted funds from operations (AFFO) for Q2 2024 were $5.3 million or $0.13 per share, with a significant impact from a $1 million tenant improvement deduction related to a new lease [13] Business Line Data and Key Metrics Changes - New leasing activity increased to 162,000 square feet in Q2 2024, while total leasing activity rose to 269,000 square feet, marking the highest quarter of new leasing in the company's history [4] - The largest new lease was a 30,000 square foot lease with a strong credit energy tenant in Orlando, and a 24,000 square foot lease with a co-working operator in Phoenix [7] Market Data and Key Metrics Changes - The office leasing fundamentals have strengthened across markets, with a nationwide increase in tenant requirements by 28% year-over-year [5] - Sublease space has decreased for four consecutive quarters, indicating a tightening supply of high-quality lease space [5] Company Strategy and Development Direction - The company is focused on executing strategic property upgrades in key submarkets, with an investment of $9 million planned for four significant renovation projects [9] - There is an ongoing exploration of a mixed-use development opportunity at the City Center property in St. Petersburg, which could enhance shareholder value [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the office market still faces challenges, particularly a lack of liquidity in real estate transactions, but believes the pathway to long-term success is becoming clearer for quality properties [6] - The company reiterated its guidance for the year, expecting occupancy levels to increase in the last two quarters due to a significant number of signed leases [15] Other Important Information - The company has approximately $92 million undrawn and authorized on its credit facility and $43 million in cash and restricted cash as of June 30, 2024 [14] - The company completed the transfer of the Cascade Station property to the lender, reducing overall debt by approximately $21 million [15] Q&A Session Summary Question: Any additional known move-outs of consequence? - Management confirmed that there is only one significant known move-out of 72,000 square feet scheduled for January, which is the only known move-out greater than 30,000 square feet in the coming quarters [18] Question: How is the leasing pipeline looking for the back half of the year? - Management indicated that while there is a natural slowdown over the summer, the overall leasing requirements and discussions remain strong, particularly in Phoenix [19] Question: Thoughts on addressing debt in the current environment? - Management is exploring various options for debt placement and noted that the CMBS market is improving, allowing for more flexibility in financing [21]

| --- | --- | --- | |-------|-------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | I N V E S T O R P R E S E NTATION | | | | A U G U S T 2 0 2 4 | | | | N Y S E: CIO | | FORWARD-LOOKING STATEMENTS This presentation contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and S ...

TYSONS CORNER, Va. and PETAH TIKVA, Israel, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Cellebrite (NASDAQ: CLBT), a global leader in premier Digital Investigative solutions for the public and private sectors, today announced the appointment of Sigalit Shavit as Chief Information Officer (CIO) who begins her role today, August 1, 2024. Shavit joins the Company's Leadership Team, bringing with her more than 30 years of experience to Cellebrite's information technology and security team. In this newly established posit ...