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Jun 30, 2021
City Office Q2 2021 Earnings Report
Reported second quarter results
Key Takeaways
City Office REIT reported rental and other revenues of $40.0 million for the second quarter. Core FFO was approximately $15.3 million, or $0.35 per fully diluted share. The company acquired two properties in San Diego, California for $43.3 million.
Rental and other revenues were $40.0 million.
Core FFO was approximately $15.3 million, or $0.35 per fully diluted share.
AFFO was approximately $9.9 million, or $0.22 per fully diluted share.
Same Store Cash NOI increased 2.7% as compared to the second quarter of 2020.
City Office
City Office
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
- 2021 Core FFO per diluted share expectations were increased primarily due to incremental termination fee income received in a value-enhancing leasing transaction at the Company’s Park Tower property.
- Full Year 2021 Net Operating Income between $104.5M and $106.0M
- Full Year 2021 General & Administrative Expenses between $11.5M and $12.0M
- Full Year 2021 Core FFO per diluted share between $1.40 and $1.43
- Full Year 2021 Same Store Cash NOI Change between 1.5 % and 2.5 %
Challenges Ahead
- The leasing transaction results in temporarily lower December 31, 2021 Occupancy guidance, as the new tenant is expected to take occupancy in May 2022.
- The amount and timing of future acquisitions and dispositions, if any, could have an effect on our Net Operating Income and Core FFO results for Full Year 2021.
- Termination fee income of $2.0 million related to a tenant at the SanTan property in Phoenix and termination fee income of $5.4 million related to a tenant at the Park Tower property in Tampa have been included in 2021 guidance.
- The General and Administrative Expenses guidance includes approximately $2.6 million for stock-based compensation.
- 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.