City Office REIT Reports Second Quarter 2024 Results

Core Insights - City Office REIT, Inc. reported a GAAP net loss of approximately $5.6 million for Q2 2024, with a core FFO of about $11.5 million, indicating ongoing challenges in profitability despite some positive leasing activity [2][3][34]. Financial Performance - Total rental and other revenues for the quarter were $42.3 million, down from $44.6 million in the same quarter of the previous year [2][34]. - The company declared a cash dividend of $0.10 per share for common stock and $0.4140625 per share for Series A Preferred Stock, both paid on July 24, 2024 [13][14]. - The net loss attributable to common stockholders was $5.6 million, or $0.14 per diluted share, compared to a loss of $2.5 million, or $0.06 per diluted share, in Q2 2023 [35]. Leasing Activity - The company executed approximately 269,000 square feet of new and renewal leases during the quarter, with renewal cash rents increasing by 4.3% compared to expiring rents [2][5]. - New leases signed had a weighted average lease term of 6.3 years at an effective annual rent of $25.95 per square foot [8]. Portfolio Operations - As of June 30, 2024, the total portfolio consisted of 5.6 million net rentable square feet, with an occupancy rate of 83.0%, or 87.3% including signed leases not yet occupied [4][5]. - Same Store Cash NOI decreased by 2.0% year-over-year for the three months ended June 30, 2024 [4]. Capital Structure - The company had total principal outstanding debt of approximately $652.4 million, with about 90% of the debt being fixed rate or effectively fixed due to interest rate swaps [9]. - The weighted average interest rate on the debt was 5.0%, with a weighted average maturity of approximately 2.3 years [9]. Strategic Initiatives - The CEO highlighted the company's focus on strategic property upgrades and enhancing the balance sheet, with the highest quarterly new leasing activity since the pandemic [3]. - The company successfully renewed its last two 2024 property-level debt maturities, extending maturities by two and five years [3]. Disposition of Real Estate - The company transferred its Cascade Station property in Portland, Oregon, to the lender, reducing total debt outstanding by $20.6 million and recognizing a net loss of $1.5 million on the transaction [12].