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Section 1: 8-K (FORM 8-K)

Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 3, 2019

 

 

City Office REIT, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

Maryland   001-36409   98-1141883
(State or other jurisdiction of
incorporation or organization)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

 

666 Burrard Street, Suite 3210,
Vancouver, British Columbia,
  V6C 2X8
(Address of principal executive offices)   (Zip Code)

(604) 806-3366

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class

  

Name of Each Exchange on Which Registered

  

Ticker Symbols:

Common Stock, $0.01 par value

6.625% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share

  

New York Stock Exchange

New York Stock Exchange

  

CIO

CIO.PrA

Securities registered pursuant to Section 12(g) of the Act: None

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 

 


Item 2.02. Results of Operations and Financial Condition.

    City Office REIT, Inc. (the “Company”) issued a press release on May 3, 2019 announcing its financial results for the quarter ended March 31, 2019. A copy of the press release is attached hereto as Exhibit 99.1.

    The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished pursuant to Item 9.01, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that Section. Furthermore, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished pursuant to Item 9.01, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

Item  9.01 Financial Statements and Exhibits.

 

 Exhibit

 Number 

 

  Description  

99.1   City Office REIT, Inc. Press Release, dated May 3, 2019.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  CITY OFFICE REIT, INC.
Date: May 3, 2019   By:  

/s/ James Farrar

  Name:   James Farrar
  Title:   Chief Executive Officer
(Back To Top)

Section 2: EX-99.1 (EX-99.1)

EX-99.1

EXHIBIT 99.1

 

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City Office REIT Reports First Quarter 2019 Results

VANCOUVER—May 3, 2019—City Office REIT, Inc. (NYSE: CIO) (the “Company” or “City Office”), today announced its results for the quarter ended March 31, 2019.

First Quarter Highlights

 

 

GAAP net loss attributable to common stockholders was approximately $2.9 million, or ($0.07) per fully diluted share;

 

 

Core FFO was approximately $11.8 million, or $0.29 per fully diluted share;

 

 

AFFO was approximately $8.3 million, or $0.21 per fully diluted share;

 

 

Same Store Cash NOI increased 1.8% as compared to the first quarter 2018;

 

 

In-place occupancy closed the quarter at 92.6%; the Company executed approximately 78,000 square feet of new and renewal leases during the quarter;

 

 

Acquired a 207,000 square foot property in Seattle, Washington for $63.0 million (“Canyon Park”);

 

 

Waived due diligence conditions on a $32.5 million acquisition in Portland, Oregon;

 

 

Closed on the disposition of the Plaza 25 property in Denver, Colorado for $17.9 million;

 

 

Entered into an agreement to sell an 89,000 square foot building in San Diego, CA for $16.5 million (“Sorrento Mesa – 10455”);

 

 

Appointed Sabah Mirza to the Board of Directors, effective March 7, 2019;

 

 

Declared a first quarter dividend of $0.235 per share of common stock, paid on April 25, 2019; and

 

 

Declared a first quarter dividend of $0.4140625 per share of Series A Preferred Stock, paid on April 25, 2019.

“Through the first quarter, we are pleased with our progress towards achieving our target earnings and portfolio metrics for 2019,” commented James Farrar, the Company’s Chief Executive Officer. “With the recently closed acquisition of Canyon Park in Seattle, we have diversified our portfolio within our high growth 18-hour cities in the southern and western US. We also continue to advance strategic capital recycling initiatives that will allow us to redeploy proceeds into higher growth assets.”

“Our focus on leasing and operations has increased portfolio occupancy to 92.6% at quarter end. This leasing activity has resulted in a healthy 1.8% Same Store Cash NOI growth, which we anticipate will remain strong for the balance of 2019.”    

A reconciliation of certain non-GAAP financial measures, including FFO, Core FFO, AFFO, NOI, Same Store NOI, Same Store Cash NOI and Adjusted Cash NOI, to the most directly comparable GAAP financial measure can be found at the end of this release.

Portfolio Operations

The Company reported that its total portfolio as of March 31, 2019 contained 5.7 million net rentable square feet and was 92.6% occupied.

 

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City Office’s NOI was approximately $23.3 million, or approximately $21.9 million on an adjusted cash basis, during the first quarter of 2019. NOI for the quarter benefited from approximately $210,000 of termination fee income related to small lease terminations at the Central Fairwinds and FRP Collection properties.

First quarter Same Store Cash NOI increased 1.8% as compared to the first quarter 2018.

Investment and Disposition Activity

During the quarter, the Company completed the previously announced acquisition of Canyon Park, a three-building office campus comprised of approximately 207,000 square feet, located in the Eastside/Bothell submarket of Seattle, Washington. The purchase price was $63.0 million, exclusive of closing costs, and the acquisition is anticipated to generate an initial full-year net operating income yield of approximately 7.1%.

During the quarter, the Company waived due diligence conditions on the previously announced pending acquisition of a two-building property located in the Airport Way submarket of Portland, Oregon. The purchase price is $32.5 million, exclusive of closing costs. The closing of the property remains subject to the assumption of an existing loan on the property and customary closing conditions and is anticipated to generate an initial full-year net operating income yield of approximately 8.1%. The property is expected to close during the second quarter of 2019.

During the quarter, the Company entered into an agreement to sell Sorrento Mesa – 10455 in San Diego, California for a price of $16.5 million, exclusive of closing costs. The building was purchased in September 2017 as part of the Company’s 10-building San Diego portfolio acquisition and is one of the six buildings that comprises the Company’s Sorrento Mesa portfolio. The property was identified as a candidate for disposition at the time of the portfolio acquisition, as it did not fit the Company’s strategic investment profile. The property was 45.8% occupied as of quarter end. The purchaser has waived due diligence conditions and made a non-refundable deposit. The sale is expected to close in May 2019, subject to customary closing conditions.

During the quarter, the Company completed the previously announced disposition of its Plaza 25 property in Denver, Colorado for a sales price of $17.9 million. The Company used the proceeds from the sale to repay amounts outstanding under its unsecured credit facility and intends to accretively recycle the disposition proceeds into the Company’s acquisition pipeline.

Leasing Activity

The Company’s total leasing activity during the first quarter of 2019 was 78,000 square feet, which included 31,000 square feet of new leasing and 47,000 square feet of renewals. 64,000 square feet of leases signed within the quarter will commence subsequent to quarter end.

New Leasing – New leases were signed with a weighted average lease term of 4.1 years at a weighted average annual rent per square foot of $31.29 and at a weighted average cost of $4.58 per square foot per year.

 

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Renewal Leasing – Renewal leases were signed with a weighted average lease term of 4.8 years at a weighted average annual rent per square foot of $31.01 and at a weighted average cost of $5.26 per square foot per year.

Capital Structure

As of March 31, 2019, the Company had total principal outstanding debt of approximately $701.2 million. 77.5% of the Company’s outstanding debt was fixed rate, with a weighted average maturity of 5.7 years and a weighted average interest rate of 4.2%.

During the first quarter, the Company completed a $41.0 million eight-year financing for the Canyon Park property with a fixed interest rate of 4.3%.

Dividends

On March 15, 2019, the Company’s board of directors approved and the Company declared a cash dividend of $0.235 per share of the Company’s common stock for the three months ended March 31, 2019. The dividend was paid on April 25, 2019 to common stockholders and unitholders of record as of April 11, 2019.

On March 15, 2019, the Company’s board of directors approved and the Company declared a cash dividend of $0.4140625 per share of the Company’s 6.625% Series A Preferred Stock. The dividend was paid on April 25, 2019 to preferred stockholders of record as of April 11, 2019.

2019 Outlook

Following City Office’s performance for the first quarter of 2019, the Company is reiterating the components of full year 2019 guidance provided in the Company’s fourth quarter 2018 earnings report.

This outlook reflects management’s view of current and future market conditions, including assumptions such as the pace of future acquisitions and dispositions, rental rates, occupancy levels, operating and general administrative expenses, weighted average diluted shares outstanding and interest rates. The outlook assumes no additional capital raising activity during 2019.

Webcast and Conference Call Details

City Office’s management will hold a conference call at 11:00 am Eastern Time on May 3, 2019.    

The webcast will be available under the “Investor Relations” section of the Company’s website at www.cityofficereit.com. The conference call can be accessed by dialing 1-866-262-0919 for domestic callers and 1-412-902-4106 for international callers.

A replay of the call will be available later in the day on May 3, 2019, continuing through 11:59 pm Eastern Time on August 3, 2019 and can be accessed by dialing 1-877-344-7529 for domestic callers and 1-412-317-0088 for international callers. The passcode for the replay is 10130412. A replay will also be available for twelve months following the call at “Webcasts & Events” in the “Investor Relations” section of the Company’s website.

 

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A supplemental financial package to accompany the discussion of the results will be posted on www.cityofficereit.com under the “Investor Relations” section.

Non-GAAP Financial Measures

Funds from Operations (“FFO”) – The National Association of Real Estate Investment Trusts (“NAREIT”) states FFO should represent net income or loss (computed in accordance with GAAP) plus real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments of unconsolidated partnerships and joint ventures, gains or losses on the sale of property and impairments to real estate.

The Company uses FFO as a supplemental performance measure because the Company believes that FFO is beneficial to investors as a starting point in measuring the Company’s operational performance. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare the Company’s operating performance with that of other REITs.

However, because FFO excludes depreciation and amortization and captures neither the changes in the value of the Company’s properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of the Company’s properties, all of which have real economic effects and could materially impact the Company’s results from operations, the utility of FFO as a measure of the Company’s performance is limited. In addition, other equity REITs may not calculate FFO in accordance with the NAREIT definition as the Company does, and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance.

Core Funds from Operations (“Core FFO”) – We calculate Core FFO by using FFO as defined by NAREIT and adjusting for certain other non-core items.    We also exclude from our Core FFO calculation acquisition costs, loss on early extinguishment of debt, changes in the fair value of the earn-out, changes in fair value of contingent consideration and the amortization of stock based compensation.

We believe Core FFO provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of our ongoing operating performance. Other equity REITs may calculate Core FFO differently or not at all, and, accordingly, the Company’s Core FFO may not be comparable to such other REITs’ Core FFO.

Adjusted Funds from Operations (“AFFO”) – We compute AFFO by adding to Core FFO the non-cash amortization of deferred financing fees and non-real estate depreciation and then subtracting cash paid for recurring tenant improvements, leasing commissions, and capital expenditures, and eliminating the net effect of straight-line rent / expense, deferred market rent and debt fair value amortization. Recurring capital expenditures exclude development / redevelopment activities, capital expenditures planned at acquisition and costs to reposition a property. We exclude first generation leasing costs within the first two years of our initial public offering or acquisition, which are generally to fill vacant space in properties we acquire or were planned at acquisition. We have further excluded all costs associated with tenant improvements, leasing commissions and capital expenditures which were funded by the entity contributing the properties at closing.

 

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Along with FFO and Core FFO, we believe AFFO provides investors with appropriate supplemental information to evaluate the ongoing operations of the Company. Other equity REITs may calculate AFFO differently, and, accordingly, the Company’s AFFO may not be comparable to such other REITs’ AFFO.

Net Operating Income (“NOI”), Adjusted Cash NOI – We define NOI as rental and other revenues less property operating expenses. We define Adjusted Cash NOI as NOI less the effect of recurring straight-line rent / expense, deferred market rent, and any amounts which are funded by the selling entities.

We consider NOI and Adjusted Cash NOI to be appropriate supplemental performance measures to net income because we believe they provide information useful in understanding the core operations and operating performance of our portfolio.

Same Store Net Operating Income (“Same Store NOI”) and Same Store Cash Net Operating Income (“Same Store Cash NOI”) – Same Store NOI and Same Store Cash NOI is calculated as the NOI attributable to the properties continuously owned and operated for the entirety of the reporting periods presented. The Company’s definition of Same Store NOI and Same Store Cash NOI excludes properties that were not stabilized during both of the applicable reporting periods. These exclusions may include, but are not limited to, acquisitions, dispositions and properties undergoing repositioning or significant renovations.

We believe Same Store NOI and Same Store Cash NOI is an important measure of comparison because it allows for comparison of operating results of stabilized properties owned and operated for the entirety of both applicable periods and therefore eliminates variations caused by acquisitions, dispositions or repositionings during such periods. Other REITs may calculate Same Store NOI and Same Store Cash NOI differently and our calculation should not be compared to that of other REITs.

Forward-looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements within the meaning of the federal securities laws and as such are based upon the Company’s current beliefs as to the outcome and timing of future events. There can be no assurance that actual forward-looking statements, including projected capital resources, projected profitability and portfolio performance, estimates or developments affecting the Company will be those anticipated by the Company. Examples of forward-looking statements include those pertaining to expectations regarding our financial performance, including under metrics such as NOI and FFO, market rental rates, national or local economic growth, estimated replacement costs of our properties, the Company’s expectations regarding tenant occupancy, re-leasing periods, projected capital improvements, expected sources of financing, expectations as to the likelihood and timing of closing of acquisitions, dispositions, or other transactions, the expected operating performance of the Company’s current properties and anticipated near-term acquisitions and descriptions relating to these expectations, including, without limitation, the anticipated net operating income yield and cap rates. Forward-looking statements presented in this press release are based on management’s beliefs and assumptions made by, and information currently available to, management.

 

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Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “hypothetical,” “continue,” “future” or other similar words or expressions. All forward-looking statements included in this press release are based upon information available to the Company on the date hereof and the Company is under no duty to update any of the forward-looking statements after the date of this press release to conform these statements to actual results. The forward-looking statements involve a number of significant risks and uncertainties. Factors that could have a material adverse effect on the Company’s operations and future prospects are set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and subsequent reports filed from time to time with the U.S. Securities and Exchange Commission, including the sections entitled “Risk Factors” contained therein. The factors set forth in the Risk Factors section and otherwise described in the Company’s filings with SEC could cause the Company’s actual results to differ significantly from those contained in any forward-looking statement contained in this press release. The Company does not guarantee that the assumptions underlying such forward-looking statements are free from errors. Unless otherwise stated, historical financial information and per share and other data are as of March 31, 2019.

Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s business, financial condition, liquidity, cash flows and results could differ materially from those expressed in any forward-looking statement. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Use caution in relying on past forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends.

 

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City Office REIT, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except par value and share data)

 

     March 31,
2019
     December 31,
2018
 

Assets

     

Real estate properties

     

Land

       $ 224,837           $ 223,789   

Building and improvement

     735,403         704,113   

Tenant improvement

     81,960         77,426   

Furniture, fixtures and equipment

     270         319   
  

 

 

    

 

 

 
     1,042,470         1,005,647   

Accumulated depreciation

     (78,263)        (70,484)  
  

 

 

    

 

 

 
     964,207         935,163   
  

 

 

    

 

 

 

Cash and cash equivalents

     15,314         16,138   

Restricted cash

     21,713         17,007   

Rents receivable, net

     27,524         26,095   

Deferred leasing costs, net

     10,865         10,402   

Acquired lease intangible assets, net

     74,651         75,501   

Other assets(1)

     14,419         2,755   

Assets held for sale

     15,932         17,370   
  

 

 

    

 

 

 

Total Assets

       $  1,144,625           $  1,100,431   
  

 

 

    

 

 

 

Liabilities and Equity

     

Liabilities:

     

Debt

       $ 694,989           $ 645,354   

Accounts payable and accrued liabilities

     23,408         25,892   

Deferred rent

     5,079         5,331   

Tenant rent deposits

     5,531         4,564   

Acquired lease intangible liabilities, net

     9,610         8,887   

Other liabilities(1)

     19,352         11,148   

Liabilities related to assets held for sale

     270         878   
  

 

 

    

 

 

 

Total Liabilities

     758,239         702,054   
  

 

 

    

 

 

 

Commitments and Contingencies

     

Equity:

     

6.625% Series A Preferred stock, $0.01 par value per share, 5,600,000 shares authorized, 4,480,000 issued and outstanding

     112,000         112,000   

Common stock, $0.01 par value, 100,000,000 shares authorized, 39,635,793 and 39,544,073 shares issued and outstanding

     396         395   

Additional paid-in capital

     377,428         377,126   

Accumulated deficit

     (104,449)        (92,108)  
  

 

 

    

 

 

 

Total Stockholders’ Equity

     385,375         397,413   

Non-controlling interests in properties

     1,011         964   
  

 

 

    

 

 

 

Total Equity

     386,386         398,377   
  

 

 

    

 

 

 

Total Liabilities and Equity

       $ 1,144,625           $ 1,100,431   
  

 

 

    

 

 

 

(1) Upon adoption of Topic 842 on January 1, 2019, the Company recognized right-of-use assets and lease liabilities in relation to its lessee operating leases.

 

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City Office REIT, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share data)

 

     Three Months Ended  
                     March 31,                   
     2019      2018  

Rental and other revenues(1)

     $  37,120         $  31,534   

Operating expenses:

     

Property operating expenses

     13,844         11,625   

General and administrative

     2,299         1,978   

Depreciation and amortization

     14,417         11,893   
  

 

 

    

 

 

 

Total operating expenses

     30,560         25,496   
  

 

 

    

 

 

 

Operating income

     6,560         6,038   

Interest expense:

     

Contractual interest expense

     (7,143)        (5,188)  

Amortization of deferred financing costs

     (337)        (632)  
  

 

 

    

 

 

 
     (7,480)        (5,820)  

Net gain on sale of real estate property

     -              46,980   
  

 

 

    

 

 

 

Net (loss)/income

     (920)        47,198   

Less:

     

Net income attributable to non-controlling interests in properties

     (169)        (135)  
  

 

 

    

 

 

 

Net (loss)/income attributable to the Company

     (1,089)        47,063   

Preferred stock distributions

     (1,855)        (1,855)  
  

 

 

    

 

 

 

Net (loss)/income attributable to common stockholders

     $  (2,944)        $ 45,208   
  

 

 

    

 

 

 

Net (loss)/income per common share:

     

Basic

     $ (0.07)        $ 1.25   
  

 

 

    

 

 

 

Diluted

     $ (0.07)        $ 1.24   
  

 

 

    

 

 

 

Weighted average common shares outstanding:

     

Basic

     39,565         36,073   
  

 

 

    

 

 

 

Diluted

     39,565         36,432   
  

 

 

    

 

 

 

Dividend distributions declared per common share

     $ 0.235         $ 0.235   
  

 

 

    

 

 

 

 

(1) 

Upon adoption of Topic 842 on January 1, 2019, rental income, expense reimbursement and other were aggregated into a single line within rental and other revenues.

 

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City Office REIT, Inc.

Reconciliation of Net Income to Net Operating Income and Adjusted Cash NOI

(Unaudited)

(In thousands)

 

     Three Months Ended  
     March 31, 2019  

Net loss

     $  (920)  

Adjustments to net loss:

  

General and administrative

     2,299   

Contractual interest expense

     7,143   

Amortization of deferred financing costs

     337   

Depreciation and amortization

     14,417   
  

 

 

 

Net Operating Income (“NOI”)

     $      23,276   

Net recurring straight line rent/expense adjustment

     (978)  

Net amortization of above and below market leases

     (29)  
  

 

 

 

Portfolio Adjusted Cash NOI

     $ 22,269   

NCI in properties - share in cash NOI

     (394)  
  

 

 

 

Adjusted Cash NOI (CIO share)

     $  21,875   
  

 

 

 

 

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City Office REIT, Inc.

Reconciliation of Net Income to FFO, Core FFO and AFFO

(Unaudited)

(In thousands, except per share data)

 

     Three Months Ended  
     March 31, 2019  

Net loss attributable to common stockholders

     $  (2,944)  

(+) Depreciation and amortization

     14,417   
  

 

 

 
     11,473   

Non-controlling interests in properties:

  

(+) Share of net income

     169   

(-) Share of FFO

     (316)  
  

 

 

 

FFO attributable to common stockholders

     $  11,326   
  

 

 

 

(+) Stock based compensation

     444   
  

 

 

 

Core FFO attributable to common stockholders

     $ 11,770   
  

 

 

 

(+) Net recurring straight line rent/expense adjustment

     (978)  

(+) Net amortization of above and below market leases

     (29)  

(+) Net amortization of deferred financing costs

     334   

(-) Net recurring tenant improvement and incentives

     (1,298)  

(-) Net recurring leasing commissions

     (918)  

(-) Net recurring capital expenditures

     (542)  
  

 

 

 

AFFO attributable to common stockholders

     $ 8,339   
  

 

 

 

Core FFO per common share

     $ 0.29   
  

 

 

 

AFFO per common share

     $ 0.21   
  

 

 

 

Dividends per common share

     $ 0.235   

Core FFO Payout Ratio

     80%  

AFFO Payout Ratio

     113%  

Weighted average common shares outstanding - diluted

     40,017   

 

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City Office REIT, Inc.

Reconciliation of Rental and Other Revenues to Same Store NOI and Same Store Cash NOI

(Unaudited)

(In thousands)

 

     Three Months Ended
March 31,
 
     2019      2018  

Rental and other revenues

     $  37,120         $  31,534   

Property operating expenses

     13,844         11,625   
  

 

 

    

 

 

 

Net operating income (“NOI”)

     $ 23,276         $ 19,909   

Less: NOI of properties not included in same store

     (5,322)        (1,113)  
  

 

 

    

 

 

 

Same store NOI

     $ 17,954         $ 18,796   

Less:

     

Termination fee income

     (203)         (1,007)  

Straight line rent/expense adjustment

     (620)        (743)  

Above and below market leases

     13         (190)  

NCI in properties - cash NOI

     (394)        (395)  
  

 

 

    

 

 

 

Same store cash NOI

     $      16,750         $      16,461   
  

 

 

    

 

 

 

Contact

City Office REIT, Inc.

Anthony Maretic, CFO

+1-604-806-3366

[email protected]

 

11

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