City Office REIT(US:CIO)2024-02-21 16:00Leasing Activity - New leasing activity in Q4 2023 was the highest of any quarter in 2023, with a weighted average lease term of 8.0 years and an average annual rent of $38.04 per square foot[6] - The company executed approximately 134,000 square feet of new and renewal leases during Q4 2023, with total leasing activity for the year reaching approximately 599,000 square feet[12] Financial Performance - Total rental and other revenues for Q4 2023 were $44.3 million, with a GAAP net loss of approximately $4.5 million, or ($0.11) per fully diluted share[7] - Core FFO for Q4 2023 was approximately $13.5 million, or $0.33 per fully diluted share, while AFFO was approximately $9.3 million, or $0.23 per fully diluted share[7] - Same Store Cash NOI decreased by 0.5% for Q4 2023 compared to the same period in the prior year, but increased by 3.0% for the full year 2023[5] - Operating income for the three months ended December 31, 2023, was $5,864 thousand, compared to a loss of $4,464 thousand in the same period of 2022[43] - Net loss attributable to common stockholders for the three months ended December 31, 2023, was $(4,518) thousand, an improvement from $(14,274) thousand in the same period of 2022[43] - Funds from Operations (FFO) attributable to common stockholders for the three months ended December 31, 2023, was $12,510 thousand, with FFO per common share at $0.31[45] - Core FFO attributable to common stockholders was $13,533 thousand for the three months ended December 31, 2023, with Core FFO per common share at $0.33[45] - AFFO attributable to common stockholders for the three months ended December 31, 2023, was $9,273 thousand, with AFFO per common share at $0.23[45] - Net operating income (NOI) for the full year 2023 was $109,099, down 3.0% from $112,746 in 2022[46] - Rental and other revenues for the three months ended December 31, 2023, were $44,321 thousand, slightly down from $44,613 thousand in the same period of 2022[43] - Rental and other revenues for Q4 2023 were $44,321, a slight decrease of 0.7% from $44,613 in Q4 2022[46] Guidance and Projections - The company expects Core FFO per fully diluted share for 2024 to be in the range of $1.18 to $1.22, reflecting anticipated higher interest expenses and the departure of WeWork[18] - The 2024 guidance includes a Same Store Cash NOI change expectation of between -1.0% and 1.0%[20] - Core FFO attributable to common stockholders is projected to be between $48,750 and $50,500 for the full year 2024[49] - FFO per common share for the full year 2024 is expected to range from $1.12 to $1.22[49] - The company reported a net loss attributable to common stockholders of $(15,150) for the full year 2024 outlook[49] Balance Sheet and Debt - As of December 31, 2023, total principal outstanding debt was approximately $672.7 million, with a weighted average interest rate of 4.8%[14] - Total assets decreased to $1,511,376 thousand as of December 31, 2023, down from $1,574,439 thousand in 2022, representing a decline of approximately 4%[36] - Total liabilities decreased to $738,743 thousand as of December 31, 2023, down from $771,265 thousand in 2022, a reduction of approximately 4%[36] - Cash and cash equivalents increased to $30,082 thousand as of December 31, 2023, compared to $28,187 thousand in 2022, reflecting a growth of approximately 7%[36] Dividends and Distributions - The company declared a cash dividend of $0.10 per share of common stock for Q4 2023, paid on January 24, 2024[15] - Preferred stock distributions remained consistent at $(1,855) thousand for both the three months ended December 31, 2023, and 2022[43] Other Income and Expenses - Property operating expenses for Q4 2023 were $17,387, an increase of 2.3% from $17,003 in Q4 2022[46] - Non-recurring other income for the full year 2023 was $2,005, with no such income reported in 2022[46] - Above and below market leases contributed $1,009 in Q4 2023, compared to $33 in Q4 2022[46]