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City Office Q1 2025 Earnings Report
City Office REIT reported its financial results for the first quarter ended March 31, 2025, highlighting an increase in Same Store Cash NOI and significant leasing activity.
Key Takeaways
City Office REIT reported first-quarter 2025 results with rental and other revenues of $42.3 million and a GAAP net loss attributable to common stockholders of $3.5 million, or ($0.09) per fully diluted share. Core FFO was $12.3 million, or $0.30 per fully diluted share, and AFFO was $6.5 million, or $0.16 per fully diluted share. The company saw a 4.4% increase in Same Store Cash NOI compared to the first quarter of 2024 and maintained an in-place occupancy of 84.9%.
Rental and other revenues for Q1 2025 were $42.3 million.
GAAP net loss attributable to common stockholders was $3.5 million, or ($0.09) per fully diluted share.
Core FFO was $12.3 million, or $0.30 per fully diluted share, and AFFO was $6.5 million, or $0.16 per fully diluted share.
Same Store Cash NOI increased by 4.4% compared to Q1 2024, and in-place occupancy stood at 84.9%.
City Office
City Office
Forward Guidance
City Office REIT is reiterating its full-year 2025 guidance, which is based on current plans and assumptions regarding market conditions, acquisitions, dispositions, rental rates, occupancy levels, and interest rates. The company acknowledges uncertainties related to work-from-home trends, inflation, and general market conditions.
Positive Outlook
- Reiterating full year 2025 guidance, indicating confidence in previous projections.
- Assumptions include potential future acquisitions and dispositions, allowing for strategic portfolio management.
- Guidance considers anticipated rental rates and occupancy levels, suggesting stability in core operations.
- Expectations for leasing activity and ability to renew expiring leases are factored in, indicating ongoing tenant demand.
- Anticipated net operating income yield and cap rates are part of the outlook, providing insight into expected property performance.
Challenges Ahead
- Uncertainty regarding the timing and magnitude of future acquisitions and dispositions.
- Potential for uncollectible rents, which could impact revenue.
- Operating and general administrative expenses are subject to change.
- Rising interest rates could increase financing costs.
- Impacts of the work-from-home trend, inflation, and general market conditions are uncertain and impossible to predict.