City Holding-City Office REIT Reports Fourth Quarter and Full Year 2024 Results

Core Insights - City Office REIT, Inc. reported a positive shift in the office sector for 2024, with strong leasing momentum and an increase in portfolio occupancy to 85.4% [3][4] - The company achieved a Same Store Cash NOI increase of 3.3% in Q4 2024 compared to the same period in the previous year, and a cash re-leasing spread of 12.3% in Q4 [3][4] - The company expects continued benefits from renovation programs and anticipates an increase in portfolio occupancy and positive Same Store Cash NOI growth for 2025 [3][13] Fourth Quarter Highlights - Total rental and other revenues for Q4 2024 were $41.9 million, with a GAAP net loss attributable to common stockholders of approximately$ 12.6 million [9][34] - The company executed approximately 205,000 square feet of new and renewal leases during the quarter, contributing to a 2.0% occupancy increase over the prior quarter [3][5] - A dividend of $0.10 per share of common stock was declared for Q4 2024, paid on January 23, 2025 [11][12] Portfolio Operations - As of December 31, 2024, the total portfolio comprised 5.6 million net rentable square feet, with an occupancy rate of 85.4% [4][9] - Same Store Cash NOI for the year ended December 31, 2024, increased by 0.1% compared to the previous year [4] Leasing Activity - Total leasing activity for 2024 was approximately 806,000 square feet, representing a 35% increase compared to 2023 [5] - New leases signed had a weighted average lease term of 6.1 years at an effective annual rent of$ 32.88 per square foot [6] Capital Structure - As of December 31, 2024, the company had total principal outstanding debt of approximately $649.5 million, with 82.3% of the debt being fixed rate [7] - The weighted average interest rate on the debt was 5.1%, with a maturity of approximately 1.9 years [7] 2025 Outlook - The company expects Core FFO per fully diluted share to be in the range of$ 1.10 to $1.14 for 2025, with anticipated Same Store Cash NOI growth of 2.5% to 4.5% [13][17] - The guidance includes expectations for net operating income between$ 102.5 million and $104.5 million [13]