City Office REIT Reports Third Quarter 2024 Results

Core Insights - City Office REIT reported a GAAP net loss of approximately $4.5 million for Q3 2024, translating to a loss of $0.11 per fully diluted share [2][34] - The company achieved rental and other revenues of $42.4 million during the quarter, with Core FFO at approximately $11.1 million or $0.27 per fully diluted share [2][36] - The in-place occupancy rate was 83.4% at the end of the quarter, increasing to 87.0% when including signed leases not yet occupied [2][4] Financial Performance - Total revenues for Q3 2024 were $42.4 million, down from $44.2 million in Q3 2023 [33] - Core FFO for the quarter was approximately $11.1 million, compared to $10.9 million in the same quarter last year [36] - AFFO was approximately $4.8 million, or $0.12 per fully diluted share [2][36] Leasing Activity - The company executed approximately 141,000 square feet of new and renewal leases during Q3 2024, with 78,000 square feet being new leases and 63,000 square feet being renewals [5][6] - The weighted average lease term for new leases was 5.0 years at an effective annual rent of $33.91 per square foot [6] - Renewal leases had a weighted average term of 4.5 years at an effective annual rent of $32.87 per square foot [7] Portfolio Operations - As of September 30, 2024, the total portfolio comprised 5.6 million net rentable square feet, with an occupancy rate of 83.4% [4] - Same Store Cash NOI increased by 0.2% for Q3 2024 compared to the same period in the previous year, but decreased by 0.9% for the nine months ended September 30, 2024 [4] Capital Structure - The company had total principal outstanding debt of approximately $651.0 million, with 82.3% of the debt being fixed rate or effectively fixed [8][9] - The weighted average maturity of the debt was approximately 2.1 years, with a weighted average interest rate of 5.2% [9] Dividends - A cash dividend of $0.10 per share of common stock was declared for Q3 2024, paid on October 24, 2024 [10][11] - A cash dividend of $0.4140625 per share of Series A Preferred Stock was also declared and paid on the same date [11] 2024 Outlook - The company updated its full-year 2024 guidance, reflecting expectations of increased occupancy due to healthy leasing activity [12] - The updated guidance includes a projected Core FFO per fully diluted share range of $1.15 to $1.17 [13]