City Office REIT (CIO) came out with quarterly funds from operations (FFO) of $0.28 per share, missing the Zacks Consensus Estimate of $0.30 per share. This compares to FFO of $0.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -6.67%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.31 per share when it actually produced FFO of $0.33, delivering a surprise of 6.45%. Over the last four q ...

Property Portfolio - As of June 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, and properties were approximately 83.0% leased[58] - As of June 30, 2024, 12.7% of net rentable area under the company's portfolio was vacant, a slight decrease from 13.0% as of June 30, 2023[61] - Approximately 17.3% of the net rentable area in the company's portfolio is subject to early termination provisions[64] - The overall occupancy rate across properties was 83.0% as of June 30, 2024[70] Financial Performance - For the three months ended June 30, 2024, rental and other revenues decreased by $2.3 million, or 5%, to $42.3 million compared to $44.6 million for the same period in 2023[75] - Rental and other revenues decreased by $3.8 million, or 4%, to $86.8 million for the six months ended June 30, 2024, compared to $90.6 million for the same period in 2023[82] - Total operating expenses decreased by $0.7 million, or 2%, to $36.0 million for the three months ended June 30, 2024, from $36.7 million for the same period in 2023[76] - Total operating expenses decreased by $0.9 million, or 1%, to $72.6 million for the six months ended June 30, 2024, from $73.5 million for the same period in 2023[84] - Interest expense increased by $0.3 million, or 2%, to $16.9 million for the six months ended June 30, 2024, from $16.6 million for the same period in 2023[86] - The company recognized a loss on deconsolidation of $1.5 million for the six months ended June 30, 2024, compared to a loss of $0.1 million for the same period in 2023[87] - Net cash provided by operating activities increased by $4.1 million to $31.7 million for the six months ended June 30, 2024, compared to $27.6 million for the same period in 2023[90] Leasing Activity - The company recorded a termination fee of $0.9 million during the period ended March 31, 2024, due to WeWork rejecting a lease totaling 46,000 square feet[65] - 3.9% of the company's leases are scheduled to expire over the remainder of the calendar year without regard to renewal options[64] - The average effective rent per square foot for new leasing was $25.95, while for renewal leasing it was $25.52, resulting in a total average of $25.78[68] - The retention rate for tenants was reported at 44%[68] - The company experienced a 4.3% increase in renewal cash rent compared to expiring leases[68] Economic and Industry Challenges - The company expects to face challenges in retaining and attracting new tenants due to potential business layoffs and industry slowdowns[59] - The company has experienced slower new leasing activity and uncertainty over existing tenants' long-term space requirements, which could reduce anticipated rental revenues[62] - The broader economic environment has led to increased levels of inflation and higher interest rates, impacting the company's cost of capital and financing arrangements[59] Debt and Interest Rate Management - The company had approximately $205.0 million outstanding under its Unsecured Credit Facility as of June 30, 2024[92] - Cash, cash equivalents, and restricted cash were $43.3 million as of June 30, 2024, down from $52.7 million as of June 30, 2023[89] - As of June 30, 2024, approximately $587.4 million, or 90.0%, of the company's debt had fixed interest rates, while $65.0 million, or 10.0%, had variable interest rates[106] - A 1% increase in SOFR would result in a $0.7 million increase in annual interest costs on debt outstanding as of June 30, 2024[106] - A 1% decrease in SOFR would result in a $0.7 million decrease in annual interest costs on debt outstanding as of June 30, 2024[106] - The company uses derivative financial instruments to manage interest rate risks related to borrowings, but does not use derivatives for trading or speculative purposes[105] - The fixed rate debt includes loans against which the company has applied interest rate swaps to effectively fix the SOFR component of borrowing rates[106] - The company's interest rate risk estimates are based on its capital structure and hypothetical interest rates, without considering changes in overall economic activity[107] - The company considers its interest rate exposure to be moderate as of June 30, 2024[106] - The fair value of outstanding debt would decrease with a 1% increase in SOFR[106] - The company may take actions to further mitigate exposure to changes in interest rates, but specific actions and their effects are uncertain[107] - The company only enters into contracts with major financial institutions based on their credit rating and other factors[105] Strategic Operations - The company focuses on owning and acquiring office properties in growth markets predominantly in the Sun Belt, which are characterized by growing populations and above-average employment growth forecasts[63] - The company will continue to evaluate business operations and strategies to optimally position itself given current economic and industry conditions[62]

Financial Performance - Rental and other revenues for Q2 2024 were $42.3 million, with a GAAP net loss of approximately $5.6 million, or ($0.14) per fully diluted share[2] - Core FFO was approximately $11.5 million, or $0.28 per fully diluted share, while AFFO was approximately $5.3 million, or $0.13 per fully diluted share[2] - Same Store Cash NOI decreased by 2.0% for Q2 2024 compared to the same period in the prior year[4] - The company reported a net loss attributable to common stockholders of $5,607,000 for the three months ended June 30, 2024, compared to a net loss of $2,535,000 for the same period in 2023[26] - Funds from operations (FFO) attributable to common stockholders for the three months ended June 30, 2024, were $10,414,000, with an FFO per common share of $0.25[27] - The AFFO attributable to common stockholders for the three months ended June 30, 2024, was $5,293,000, with an AFFO per common share of $0.13[27] Occupancy and Leasing Activity - In-place occupancy was 83.0% as of June 30, 2024, or 87.3% including signed leases not yet occupied[2] - Renewal cash rents increased by 4.3% compared to expiring cash rents, with total leasing activity of approximately 269,000 square feet during the quarter[5] - The company executed 162,000 square feet of new leases, representing approximately 3% of the entire portfolio[3] Debt and Assets - Total principal outstanding debt was approximately $652.4 million, with 90.0% of the debt being fixed rate or effectively fixed rate[7] - The company recognized a net loss of $1.5 million on the disposition of its Cascade Station property, reducing total debt outstanding by $20.6 million[8] - The company’s total assets decreased to $1,480,501,000 as of June 30, 2024, from $1,511,376,000 as of December 31, 2023[25] - Total liabilities decreased to $721,405,000 as of June 30, 2024, from $738,743,000 as of December 31, 2023[25] - Cash and cash equivalents were $28,005,000 as of June 30, 2024, down from $30,082,000 as of December 31, 2023[25] Dividends - The company declared a cash dividend of $0.10 per share of common stock and $0.4140625 per share of Series A Preferred Stock, both paid on July 24, 2024[9] - The company declared a dividend distribution of $0.10 per common share for the three months ended June 30, 2024, unchanged from the same period in 2023[26] Guidance - The company reiterated its full year 2024 guidance based on current plans and assumptions[10]

City Office's management will hold a conference call at 11:00 am Eastern Time on August 1, 2024 to discuss the Company's financial results. Additionally, a supplemental financial package to accompany the discussion of the results will be posted on www.cioreit.com. Telephone Conference Call Domestic: 1-866-813-9403 International: 1-929-458-6194 Passcode: 237346 Contact Click on the webcast link under the "Investor Relations" section of the Company's website at www.cioreit.com. Domestic: 1-833-470-1428 Intern ...

Summary of Key Points Core Viewpoint - City Office REIT, Inc. has announced a quarterly dividend of $0.10 per share for the second quarter of 2024, reflecting the company's ongoing commitment to returning value to its shareholders [7]. Company Information - City Office REIT is an internally-managed real estate investment trust (REIT) focused on acquiring, owning, and operating high-quality office properties, primarily in Sun Belt markets [8]. - The company currently owns or has a controlling interest in 5.7 million square feet of office properties [8]. - The Board of Directors has also authorized a regular quarterly dividend of $0.4140625 per share for the 6.625% Series A Cumulative Redeemable Preferred Stock [4]. Dividend Payment Details - The dividends will be payable on July 24, 2024, to all stockholders, preferred stockholders, and operating partnership unitholders of record as of the close of business on July 10, 2024 [1].

HONG KONG and SHANGHAI, June 4, 2024 /PRNewswire/ -- China's macroeconomy and capital market development remains steady this year, and Ping An will maintain a balanced "double barbell" asset allocation to ensure stable returns, said Benjamin Deng, Chief Investment Officer of Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An", the "Company" or the "Group", HKEX: 2318 / 82318; SSE: 601318). Mr. Deng was speaking at Asian Investor's Asian Investment Summit in Hong Kong. Mr. Deng said he also ...

Core Insights - Quest Diagnostics has elected Robert (Rob) B. Carter to its Board of Directors, expanding the board to 10 members [1] - Mr. Carter is currently the Executive Vice President and Chief Information Officer at FedEx Corporation, with extensive experience in technology and customer service [2][3] - His expertise in cloud technologies and cybersecurity is expected to provide valuable insights for Quest Diagnostics as it leverages IT and generative AI for business growth [3] Company Overview - Quest Diagnostics is a leading provider of diagnostic information services, aiming to improve health outcomes through laboratory testing and diagnostic insights [4] - The company serves one in three adult Americans and half of the physicians and hospitals in the United States, employing nearly 50,000 individuals [4]

dszc/E+ via Getty Images City Office REIT (NYSE:CIO) is now a buy on the back of its low multiple to core FFO, fully covered dividend yield, and occupancy set to rise across its Class A office portfolio. The REIT last declared a quarterly cash dividend of $0.10 per share, kept flat from its prior quarter, and $0.40 per share if annualized for an 8.4% dividend yield. CIO generated fiscal 2024 first quarter core FFO of $0.33 per share, beating consensus by 3 cents and flat sequentially from the prior fourth q ...

Financial Data and Key Metrics Changes - The company's net operating income (NOI) for Q1 2024 was $26.7 million, which is $200,000 lower than Q4 2023 due to lower occupancy [29] - Core funds from operations (FFO) remained stable at $13.5 million or $0.33 per share, unchanged from the previous quarter [29] - Adjusted funds from operations (AFFO) for Q1 was $9.1 million or $0.22 per share, indicating a well-covered dividend [29] - Same-store cash NOI change was negative 1.0% or $200,000 lower compared to Q1 2023, but excluding Cascade Station, the rest of the portfolio showed a positive change of 0.8% [11] Business Line Data and Key Metrics Changes - The company executed 191,000 square feet of new and renewal leases during the quarter, with a significant lease of 43,000 square feet at FRP Ingenuity Drive in Orlando [6][24] - The occupancy rate at the end of the quarter was 83%, which increased to 86% when including signed leases that have not yet commenced [11] - The leasing pipeline remains strong, with expectations for longer-term lease solutions as opposed to shorter-term renewals [6][26] Market Data and Key Metrics Changes - JLL reported that 70% of U.S. office markets experienced an increase in tenant demand compared to the prior quarter, with active office requirements up 28% year-over-year [4] - The sublease vacancy rate has continued to decline, and new construction has significantly slowed, indicating a tightening supply in the office market [23] Company Strategy and Development Direction - The company is focusing on enhancing key assets to grow net operating income, with significant investments planned for renovations and upgrades [26][27] - The strategy includes positioning the best assets for leasing success while being cautious with underperforming properties [17] - The company anticipates that the majority of its portfolio value will reside in newly renovated properties, setting the stage for long-term leasing success [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the office sector is trending towards equilibrium, with gradual improvements expected in the supply-demand equation [5] - The company is reducing guidance to reflect the impact of WeWork's expected downsizing, estimating a $1.8 million impact on core FFO guidance for 2024 [13] - Management expressed optimism about the leasing environment, with trends indicating a shift towards longer-term solutions from tenants [66] Other Important Information - The company has a total debt of $668 million, with a net debt to EBITDA ratio of 6.6x as of March 31 [31] - The company is working with existing lenders due to challenges in the debt markets for new office loans [12] Q&A Session Summary Question: How did the company approach negotiations with WeWork? - Management indicated that they reached an agreement in principle with WeWork to continue in two buildings but with a smaller footprint, which is expected to be finalized soon [25][44] Question: What is the outlook for asset sales given current market conditions? - Management stated that they are being cautious with asset sales due to illiquid market conditions but are positioning their best assets for future monetization [17][46] Question: What is the expected impact of WeWork's downsizing on occupancy? - Management expects to regain two floors from WeWork, which will positively impact occupancy numbers by year-end [56][57] Question: How is the company managing its spec suite investments? - Management noted that spec suite investments are being reduced to a more normalized level after a significant focus in 2023, with expectations of generating over $2 million in NOI from current spec suites [39][40]

"CIO" "CIO.PrA" New York Stock Exchange New York Stock Exchange For the quarterly period ended March 31, 2024 For the transition period from to Title of Each Class Trading Symbol(s) Name of each Exchange on Which Registered Common Stock, $0.01 par value 6.625% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...