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Mar 31, 2021
City Office Q1 2021 Earnings Report
Reported first quarter results, showcasing growth in key financial metrics and strategic capital allocation.
Key Takeaways
City Office REIT reported a strong first quarter with rental revenue of $39.5 million and a net income of $47.0 million. The company executed strategic capital allocation, including the sale of the Cherry Creek property, and saw a 5.0% increase in Same Store Cash NOI. They also completed 208,000 square feet of new and renewal leases.
Rental and other revenues reached $39.5 million.
GAAP net income attributable to common stockholders was approximately $47.0 million, or $1.07 per fully diluted share.
Same Store Cash NOI increased 5.0% compared to the same period in 2020.
Closed the disposition of the Cherry Creek property for a gross sale price of $95.0 million, generating a gain on sale of approximately $47.4 million.
Forward Guidance
The company is updating its full year 2021 guidance based on year-to-date performance and its expectations for the remainder of the year.
Positive Outlook
- Acquisitions in the Low scenario reflects the $43.3 million acquisition under contract, which is expected to close in May 2021.
- Dispositions reflects the sale of the Cherry Creek property that occurred on February 10, 2021 for a gross sale price of $95.0 million.
- Termination fee income of $2.0 million related to a tenant at the SanTan property in Phoenix has been included in the 2021 guidance.
- The General and Administrative Expenses guidance includes approximately $2.6 million for stock-based compensation.
- Annual weighted average fully diluted shares of common stock outstanding are assumed to be approximately 44.1 million.
Challenges Ahead
- The Company’s guidance is based on current plans and assumptions and subject to the risks and uncertainties more fully described in the Company’s filings with the United States Securities and Exchange Commission.
- 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, leasing activity, uncollectible rents, operating and general administrative expenses, weighted average diluted shares outstanding and interest rates.
Historical Earnings Impact
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