Company Quick10K Filing
City Office REIT
Price14.22 EPS-0
Shares48 P/E-94
MCap678 P/FCF18
Net Debt625 EBIT16
TEV1,302 TEV/EBIT82
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-26
10-Q 2019-09-30 Filed 2019-11-01
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-06
10-K 2018-12-31 Filed 2019-02-27
10-Q 2018-09-30 Filed 2018-11-01
10-Q 2018-06-30 Filed 2018-08-02
10-Q 2018-03-31 Filed 2018-05-04
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-08-04
10-Q 2017-03-31 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-03-03
10-Q 2016-09-30 Filed 2016-11-07
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-03-04
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-08
10-K 2014-12-31 Filed 2015-03-24
10-Q 2014-09-30 Filed 2014-11-14
10-Q 2014-06-30 Filed 2014-08-14
10-Q 2014-03-31 Filed 2014-05-23
8-K 2020-05-07
8-K 2020-04-30
8-K 2020-02-26
8-K 2020-02-26
8-K 2020-01-27
8-K 2019-11-01
8-K 2019-10-02
8-K 2019-10-02
8-K 2019-08-01
8-K 2019-05-03
8-K 2019-05-02
8-K 2019-03-07
8-K 2019-02-27
8-K 2018-11-01
8-K 2018-11-01
8-K 2018-08-02
8-K 2018-05-04
8-K 2018-05-03
8-K 2018-03-15
8-K 2018-03-02
8-K 2018-03-01
8-K 2018-02-01

CIO 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 d887357dex311.htm
EX-31.2 d887357dex312.htm
EX-32.1 d887357dex321.htm
EX-32.2 d887357dex322.htm

City Office REIT Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
1.21.00.70.50.20.02014201620182020
Assets, Equity
0.10.10.0-0.0-0.1-0.12014201620182020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22014201620182020
Ops, Inv, Fin

10-Q
2022-03-312023-03-31false2020Q1--12-31City Office REIT, Inc.0001593222BC2025-102025-102028-092023-092024-08P3Y 0001593222 2020-01-01 2020-03-31 0001593222 2019-01-01 2019-12-31 0001593222 2019-01-01 2019-03-31 0001593222 2020-03-31 0001593222 2019-12-31 0001593222 2019-03-31 0001593222 2019-05-02 0001593222 2020-05-04 0001593222 2020-03-09 0001593222 2018-12-31 0001593222 us-gaap:UnsecuredDebtMember us-gaap:RevolvingCreditFacilityMember 2020-03-31 0001593222 cio:MidlandLifeInsuranceMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:MissionCityMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:OneNinetyOfficeCenterMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:CirclePointMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:SanTanMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:IntellicenterMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:TheQuadMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:FRPCollectionMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:MckinnonMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:GreenwoodBlvdMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:FiftyNinetyMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:AmberGlenMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:LakeVistaPointeMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:CentralFairwindsMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:FrpIngenuityDriveMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 cio:CarillonPointMember us-gaap:SecuredDebtMember 2020-03-31 0001593222 us-gaap:UnsecuredDebtMember cio:TermLoanMember 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:CascadeStationMember 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:CanyonParkMember 2020-03-31 0001593222 us-gaap:LetterOfCreditMember us-gaap:RevolvingCreditFacilityMember 2020-03-31 0001593222 us-gaap:FairValueInputsLevel3Member 2020-03-31 0001593222 cio:CirclePointLandMember 2020-03-31 0001593222 us-gaap:AboveMarketLeasesMember 2020-03-31 0001593222 us-gaap:LeasesAcquiredInPlaceMember 2020-03-31 0001593222 cio:LeasingCommissionsMember 2020-03-31 0001593222 cio:RealEstatePropertiesMember cio:CirclePointLandMember 2020-03-31 0001593222 us-gaap:UnsecuredDebtMember us-gaap:RevolvingCreditFacilityMember srt:MinimumMember 2020-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-03-31 0001593222 cio:GroundLeaseMember 2020-03-31 0001593222 cio:TenantLeaseMember 2020-03-31 0001593222 cio:AccountsPayableAccruedExpensesDeferredRentAndTenantRentDepositsMember cio:CirclePointLandMember 2020-03-31 0001593222 srt:MinimumMember 2020-03-31 0001593222 srt:MaximumMember 2020-03-31 0001593222 us-gaap:CommonStockMember 2020-03-31 0001593222 us-gaap:PreferredStockMember 2020-03-31 0001593222 us-gaap:OtherAssetsMember 2020-03-31 0001593222 us-gaap:OtherLiabilitiesMember 2020-03-31 0001593222 us-gaap:InterestRateSwapMember us-gaap:OtherAssetsMember 2020-03-31 0001593222 cio:MidlandLifeInsuranceMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:MissionCityMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:OneNinetyOfficeCenterMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:CanyonParkMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:CirclePointMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:SanTanMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:IntellicenterMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:TheQuadMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:FRPCollectionMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:MckinnonMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:GreenwoodBlvdMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:FiftyNinetyMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:AmberGlenMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:LakeVistaPointeMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:CentralFairwindsMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:FrpIngenuityDriveMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 cio:CarillonPointMember us-gaap:SecuredDebtMember 2019-12-31 0001593222 us-gaap:UnsecuredDebtMember cio:TermLoanMember 2019-12-31 0001593222 us-gaap:SecuredDebtMember cio:CascadeStationMember 2019-12-31 0001593222 us-gaap:FairValueInputsLevel3Member 2019-12-31 0001593222 us-gaap:AboveMarketLeasesMember 2019-12-31 0001593222 us-gaap:LeasesAcquiredInPlaceMember 2019-12-31 0001593222 cio:LeasingCommissionsMember 2019-12-31 0001593222 cio:RealEstatePropertiesMember cio:CirclePointLandMember 2019-12-31 0001593222 cio:CirclePointLandMember 2019-12-31 0001593222 cio:TenantLeaseMember 2019-12-31 0001593222 cio:GroundLeaseMember 2019-12-31 0001593222 cio:AccountsPayableAccruedExpensesDeferredRentAndTenantRentDepositsMember cio:CirclePointLandMember 2019-12-31 0001593222 us-gaap:OtherAssetsMember 2019-12-31 0001593222 us-gaap:OtherLiabilitiesMember 2019-12-31 0001593222 us-gaap:InterestRateSwapMember us-gaap:OtherAssetsMember 2019-12-31 0001593222 cio:AdministrativeServicesAgreementMember cio:SecondCityFundsMember 2019-01-01 2019-03-31 0001593222 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001593222 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001593222 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001593222 us-gaap:ParentMember 2019-01-01 2019-03-31 0001593222 cio:CanyonParkMember 2019-01-01 2019-03-31 0001593222 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-03-31 0001593222 cio:PerformanceRestrictedStockUnitMember 2019-01-01 2019-03-31 0001593222 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0001593222 cio:AdministrativeServicesAgreementMember cio:SecondCityFundsMember 2020-01-01 2020-03-31 0001593222 us-gaap:SeriesAPreferredStockMember 2020-01-01 2020-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2020-01-01 2020-03-31 0001593222 us-gaap:UnsecuredDebtMember cio:TermLoanMember 2020-01-01 2020-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember 2020-01-01 2020-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember 2020-01-01 2020-03-31 0001593222 srt:MaximumMember us-gaap:SecuredDebtMember cio:CanyonParkMember 2020-01-01 2020-03-31 0001593222 cio:CanyonParkMember srt:MinimumMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember srt:MinimumMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember srt:MaximumMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0001593222 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001593222 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001593222 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001593222 us-gaap:ParentMember 2020-01-01 2020-03-31 0001593222 us-gaap:RestrictedStockUnitsRSUMember cio:DirectorsAndNonexecutiveEmployeesMember 2020-01-01 2020-03-31 0001593222 cio:PerformanceRestrictedStockUnitMember srt:ExecutiveOfficerMember 2020-01-01 2020-03-31 0001593222 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-03-31 0001593222 us-gaap:PreferredStockMember 2020-01-01 2020-03-31 0001593222 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0001593222 us-gaap:UnsecuredDebtMember 2020-01-01 2020-03-31 0001593222 cio:CentralFairwindsMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:CascadeStationMember 2020-01-01 2020-03-31 0001593222 cio:MidlandLifeInsuranceMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:FrpIngenuityDriveMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:CarillonPointMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:MissionCityMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:CanyonParkMember 2020-01-01 2020-03-31 0001593222 cio:SanTanMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:MckinnonMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:GreenwoodBlvdMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:FiftyNinetyMember 2020-01-01 2020-03-31 0001593222 us-gaap:SecuredDebtMember cio:AmberGlenMember 2020-01-01 2020-03-31 0001593222 cio:OneNinetyOfficeCenterMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 cio:IntellicenterMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 cio:TheQuadMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 cio:FRPCollectionMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 cio:LakeVistaPointeMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 cio:CirclePointMember us-gaap:SecuredDebtMember 2020-01-01 2020-03-31 0001593222 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001593222 cio:PlazaTwentyFiveMember 2019-02-07 2019-02-07 0001593222 cio:CirclePointLandMember 2019-05-10 2019-05-10 0001593222 srt:MaximumMember 2019-09-30 0001593222 us-gaap:InterestRateSwapMember 2019-09-30 0001593222 us-gaap:UnsecuredDebtMember 2019-09-30 0001593222 cio:CanyonParkMember 2019-03-31 0001593222 srt:MaximumMember 2018-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2018-03-31 0001593222 us-gaap:RevolvingCreditFacilityMember us-gaap:UnsecuredDebtMember 2018-03-31 2018-03-31 0001593222 us-gaap:CommonStockMember 2020-04-24 2020-04-24 0001593222 us-gaap:PreferredStockMember 2020-04-24 2020-04-24 0001593222 us-gaap:SubsequentEventMember 2020-04-01 2020-05-05 0001593222 us-gaap:PreferredStockMember 2018-12-31 0001593222 us-gaap:CommonStockMember 2018-12-31 0001593222 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001593222 us-gaap:RetainedEarningsMember 2018-12-31 0001593222 us-gaap:ParentMember 2018-12-31 0001593222 us-gaap:NoncontrollingInterestMember 2018-12-31 0001593222 us-gaap:PreferredStockMember 2019-03-31 0001593222 us-gaap:CommonStockMember 2019-03-31 0001593222 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001593222 us-gaap:RetainedEarningsMember 2019-03-31 0001593222 us-gaap:ParentMember 2019-03-31 0001593222 us-gaap:NoncontrollingInterestMember 2019-03-31 0001593222 us-gaap:PreferredStockMember 2019-12-31 0001593222 us-gaap:CommonStockMember 2019-12-31 0001593222 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001593222 us-gaap:RetainedEarningsMember 2019-12-31 0001593222 us-gaap:ParentMember 2019-12-31 0001593222 us-gaap:NoncontrollingInterestMember 2019-12-31 0001593222 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001593222 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001593222 us-gaap:RetainedEarningsMember 2020-03-31 0001593222 us-gaap:ParentMember 2020-03-31 0001593222 us-gaap:NoncontrollingInterestMember 2020-03-31 0001593222 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM
10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
 
 
For the quarterly period ended March 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
 
 
 
 
 
 
 
 
 
For the transition period from
 
                    
to
                    
Commission File Number:
001-36409
 
CITY OFFICE REIT, INC.
(Exact name of registrant as specified in its charter)
 
     
Maryland
 
98-1141883
(State or other jurisdiction
 
of
incorporation
 or organi
z
ation
)
 
(I.R.S. Employer
Identificatio
n
No.)
 
 
 
 
 
 
 
 
 
 
 
666 Burrard Street
Suite 3210
Vancouver, BC
V6C 2X8
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (604)
806-3366
 
Securities registered pursuant to Section 12(b) of the Act:
         
Title of Each Class
 
Trading
Symbol(s)
 
Name of each Exchange
on Which Registered
Common Stock, $0.01 par value
 
CIO
 
New York Stock Exchange
6.625% Series A Cumulative Redeemable
Preferred Stock, $0.01 par value per share
 
CIO.PrA
 
New York Stock Exchange
 
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    
Yes  ☒    
 
 
No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    
  Yes    No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the
Exchange Act.  
             
Large accelerated filer
 
 
Accelerated filer
 
             
Non-accelerated
filer
 
 
Smaller reporting company
 
             
 
 
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  
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    
Yes  
    
 
 
No
The number of shares of Common Stock, $0.01 par value, of the registrant outstanding at May 4, 2020 was 47,571,517.
 
 

City Office REIT, Inc.
Quarterly Report on Form
10-Q
For the Quarter Ended March 31, 2020
Table of Contents
         
 
 
3
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
4
 
 
 
 
 
 
 
 
5
 
 
 
 
 
 
 
 
6
 
 
 
 
 
 
 
 
7
 
 
 
 
 
 
 
 
8
 
 
 
 
 
 
 
 
17
 
 
 
 
 
 
 
 
26
 
 
 
 
 
 
 
 
26
 
 
 
 
 
 
 
 
27
 
 
 
 
 
 
 
 
27
 
 
 
 
 
 
 
 
27
 
 
 
 
 
 
 
 
28
 
 
 
 
 
 
 
 
29
 
 
 
 
 
 
 
 
29
 
 
 
 
 
 
 
 
29
 
 
 
 
 
 
 
 
29
 
 
 
 
 
 
 
 
31
 
 
 
2

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
City Office REIT, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, ex
c
ept par value and share data)
                 
 
March 31,
2020
 
 
December 31,
2019
 
Assets
 
 
 
 
 
 
Real estate properties
   
     
 
Land
  $
230,034
    $
230,034
 
Building and improvement
   
786,939
     
784,636
 
Tenant improvement
   
97,474
     
94,218
 
Furniture, fixtures and equipment
   
285
     
285
 
                 
   
1,114,732
     
1,109,173
 
Accumulated depreciation
   
(111,177
)    
(101,835
)
                 
   
1,003,555
     
1,007,338
 
                 
Cash and cash equivalents
   
146,509
     
70,129
 
Restricted cash
   
18,328
     
17,394
 
Rents receivable, net
   
32,875
     
32,112
 
Deferred leasing costs, net
   
14,249
     
12,393
 
Acquired lease intangibles assets, net
   
62,104
     
67,533
 
Other assets
   
16,054
     
17,061
 
Assets held for sale
   
4,543
     
4,514
 
                 
Total Assets
  $
1,298,217
    $
1,228,474
 
                 
Liabilities and Equity
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Debt
  $
706,031
    $
607,250
 
Accounts payable and accrued liabilities
   
27,354
     
28,786
 
Deferred re
nt
   
5,298
     
6,593
 
Tenant rent deposits
   
5,660
     
5,658
 
Acquired lease intangible liabilities, net
   
7,604
     
8,194
 
Other liabilities
   
19,711
     
22,794
 
Liabilities related to assets held for sale
   
87
     
67
 
                 
Total Liabilities
   
771,745
     
679,342
 
                 
Commitments and Contingencies (Note 9) 
 
 
 
 
 
 
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, 53,175,051 and 54,591,047 shares issued and outstanding
   
531
     
545
 
Additional
paid-in
capital
   
566,122
     
577,131
 
Accumulated deficit
   
(151,264
)    
(142,383
)
Accumulated other comprehensive
(loss)/
income
   
(2,026
)    
715
 
                 
Total Stockholders’ Equity
   
525,363
     
548,008
 
Non-controlling
interests in properties
   
1,109
     
1,124
 
                 
Total Equity
   
526,472
     
549,132
 
                 
Total Liabilities and Equity
  $
1,298,217
    $
1,228,474
 
                 
Subsequent Events (Note 11)
   
     
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statement
s
.
3

City Office REIT, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share data)
                 
 
 
Three Months Ended
March 31,
 
 
2020
 
 
2019
 
Rental and other revenues
  $
40,122
    $
37,120
 
Operating expenses:
 
 
 
 
 
 
Property operating expens
es
   
14,694
     
13,844
 
General and administrative
   
2,783
     
2,299
 
Depreciation and amortization
   
14,953
     
14,417
 
                 
Total operating expenses
   
32,430
     
30,560
 
                 
Operating income
   
7,692
     
6,560
 
Interest expense:
   
     
 
Contractual interest expense
   
(6,362
)    
(7,143
)
Amortization of deferred financing costs and debt fair value
   
(324
)    
(337
)
                 
   
(6,686
)    
(7,480
)
                 
Net income/(loss)
   
1,006
     
(920
)
Less:
   
     
 
Net income attributable to
non-controlling
interests in properties
   
(182
)    
(169
)
                 
Net income/(loss) attributable to the Company
   
824
     
(1,089
)
Preferred stock distributions
   
(1,855
)    
(1,855
)
                 
Net loss attributable to common stockholders
  $
(1,031
)   $
(2,944
)
                 
Net loss per common share:
   
     
 
Basic
  $
(0.02
)   $
(0.07
)
                 
Diluted
  $
(0.02
)   $
(0.07
)
                 
Weighted average common shares outstanding:
   
     
 
Basic
   
54,458
     
39,565
 
                 
Diluted
   
54,458
     
39,565
 
                 
Dividends distributions declared per common share
  $
0.150
    $
0.235
 
                 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

City Office REIT, Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands)
                 
 
Three Months
 
Ended
March 31,
 
 
2020
 
 
2019
 
Net income/(loss)
  $
1,006
    $
(920
)
Other comprehensive loss:
               
Unrealized cash flow hedge loss
   
(2,690
)    
—  
 
Amounts reclassified to interest expense
   
(51
)    
—  
 
                 
Other comprehensive loss
   
(2,741
)    
—  
 
                 
Comprehensive loss
   
(1,735
)    
(920
)
Less:
   
     
 
Comprehensive income attributable to
non-controlling
interests in properties
   
(182
)    
(169
)
                 
Comprehensive loss attributable to the Company
   
(1,917
)    
(1,089
)
Preferred stock distributions
   
(1,855
)    
(1,855
)
                 
Comprehensive loss attributable to common stockholders
  $
(3,772
)   $
(2,944
)
                 
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

City Office REIT, Inc.
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
(In thousands)
 
 
Number of
shares of
preferred stock
 
 
Preferred
stock
 
 
Number
of
shares of
common stock
 
 
Common
stock
 
 
Additional
paid-in

capital
 
 
Accumulated
deficit
 
 
Accumulated
other
comprehensive
(loss)/income
 
 
Total
stockholders’
equity
 
 
Non-
controlling
interests in
properties
 
 
Total
equity
 
Balance—December 31, 2019
 
 
4,480
 
 
$
112,000
 
 
 
54,591
 
 
$
545
 
 
$
577,131
 
 
$
(142,383
)
 
$
715
 
 
$
548,008
 
 
$
1,124
 
 
$
 
 
549,132
 
Restricted stock award grants and vesting
 
 
 
 
 
 
 
 
35
 
 
 
 
 
 
599
 
 
 
(79
)
 
 
 
 
 
520
 
 
 
 
 
 
520
 
Common stock repurchased
 
 
 
 
 
 
 
 
(1,451
)
 
 
(14
)
 
 
(11,608
)
 
 
 
 
 
 
 
 
(11,622
)
 
 
 
 
 
(11,622
)
Common stock dividend distribution declared
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(7,771
)
 
 
 
 
 
(7,771
)
 
 
 
 
 
(7,771
)
Preferred stock dividend distribution declared
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,855
)
 
 
 
 
 
(1,855
)
 
 
 
 
 
(1,855
)
Contributions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3
 
 
 
3
 
Distributions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(200
)
 
 
(200
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
824
 
 
 
 
 
 
824
 
 
 
182
 
 
 
1,006
 
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,741
)
 
 
(2,741
)
 
 
 
 
 
 
(2,741
)
                                                                                 
Balance—March 31, 2020
 
 
4,480
 
 
$
112,000
 
 
 
53,175
 
 
$
531
 
 
$
566,122
 
 
$
(151,264
)
 
$
(2,026
)
 
$
525,363
 
 
$
1,109
 
 
$
526,472
 
                                                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nu
mber
 
of
shares of
preferred
 
stock
 
 
Preferred
stock
 
 
Number
of
shares
 
o
f
common
 
stock
 
 
Common
stock
 
 
Additional
paid-in
capital
 
 
Accumulated
deficit
 
 
Accumulated
other
comprehensive
(loss)/income
 
 
Total
stockholders’
equity
 
 
Non
-
controlling
interests
 
in
properties
 
 
Total
equity
 
Balance—December 31, 2018
 
 
4,480
 
 
$
112,000
 
 
 
39,544
 
 
$
395
 
 
$
377,126
 
 
$
(92,108
)
 
$
  —  
 
 
$
397,413
 
 
$
964
 
 
$
 
 
398,377
 
Restricted stock award grants and vesting
 
 
—  
 
 
 
—  
 
 
 
92
 
 
 
1
 
 
 
302
 
 
 
(83
)
 
 
—  
 
 
 
220
 
 
 
—  
 
 
 
220
 
Common stock dividend distribution declared
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(9,314
)
 
 
—  
 
 
 
(9,314
)
 
 
—  
 
 
 
(9,314
)
Preferred stock dividend distribution declared
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(1,855
)
 
 
—  
 
 
 
(1,855
)
 
 
—  
 
 
 
(1,855
)
Contributions
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
12
 
 
 
12
 
Distributions
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(134
)
 
 
(134
)
Net income
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(1,089
)
 
 
—  
 
 
 
(1,089
)
 
 
169
 
 
 
(920
)
                                                                                 
Balance—March 31, 2019
 
 
4,480
 
 
$
112,000
 
 
 
39,636
 
 
$
396
 
 
$
377,428
 
 
$
(104,449
)
 
$
  —  
 
 
$
385,375
 
 
$
1,011
 
 
$
386,386
 
                                                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements
.
6

City Office REIT, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
                 
 
Three Months Ended
March 31,
 
 
2020
 
 
2019
 
Cash Flows from Operating Activities:
 
 
 
 
 
 
Net income/(loss)
  $
1,006
    $
(920
)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
   
     
 
Depreciation and amortization
   
14,953
     
14,417
 
Amortization of deferred financing costs and debt fair value
   
324
     
337
 
Amortization of above/below market leases
   
14
     
(27
)
Increase in straight-line rent/expense
   
(704
)    
(1,454
)
Non-cash
stock compensation
   
569
     
444
 
Changes in
non-cash
working capital:
   
     
 
Rents receivable, net
   
(38
)    
(225
)
Other assets
   
190
     
(1,710
)
Accounts payable
 
and
accrued liabilities
   
(4,282
)    
(7,506
)
Deferred rent
   
(1,295
)    
(485
)
Tenant rent deposits
   
2
     
(45
)
                 
Net Cash Provided By Operating Activities
   
10,739
     
2,826
 
                 
Cash Flows to Investing Activities:
 
 
 
 
 
 
Additions to real estate properties
   
(3,137
)    
(2,292
)
Acquisition of real estate
   
     
(51,070
)
Net proceeds from sale of real estate
   
     
17,426
 
Deferred leasing costs
   
(2,195
)    
(811
)
                 
Net Cash Used In Investing Activities
   
(5,332
)    
(36,747
)
                 
Cash Flows from Financing Activities:
 
 
 
 
 
 
Repurchases of common stock
   
(11,622
)    
—  
 
Debt issuance and extinguishment costs
   
     
(516
)
Proceeds from borrowings
   
100,000
     
75,950
 
Repayment of borrowings
   
(1,541
)    
(26,137
)
Shares withheld for payment of taxes on restricted stock unit vesting
   
(49
)    
(224
)
Contributions from
non-controlling
interests in properties
   
3
     
12
 
Distributions to
non-controlling
interests in properties
   
(200
)    
(134
)
Dividend distributions paid to stockholders
   
(14,684
)    
(11,148
)
                 
Net Cash Provided By Financing Activities
   
71,907
     
37,803
 
                 
Net Increase in Cash, Cash Equivalents and Restricted Cash
   
77,314
     
3,882
 
Cash, Cash Equivalents and Restricted Cash, Beginning of Period
   
87,523
     
33,145
 
                 
Cash, Cash Equivalents and Restricted Cash, End of Period
  $
164,837
    $
37,027
 
                 
Reconciliation of Cash, Cash Equivalents and Restricted Cash:
 
 
 
 
 
 
Cash and Cash Equivalents, End of Period
   
146,509
     
15,314
 
Restricted Cash, End of Period
   
18,328
     
21,713
 
                 
Cash, Cash Equivalents and Restricted Cash, End of Period
  $
164,837
    $
37,027
 
                 
Supplemental Disclosures of Cash Flow Information:
 
 
 
 
 
 
Cash paid for interest
  $
6,111
    $
6,679
 
Purchase of additions in real estate properties included in accounts payable
  $
2,587
    $
4,161
 
Purchase of deferred leasing costs included in accounts payable
  $
284
    $
192
 
 
 
 
 
 
 
 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements
.
7

City Office REIT, Inc.
Notes to the Condensed Consolidated Financial Statements
1. Organization and Description of Business
City Office REIT, Inc. (the “Company”) was organized in the state of Maryland on
November 26, 2013
. On
April 21, 2014
, the Company completed its initial public offering (“IPO”) of shares of the Company’s common stock. The Company contributed the net proceeds of the IPO to City Office REIT Operating Partnership, L.P., a Maryland limited partnership (the “Operating Partnership”), in exchange for common units of limited partnership interest in the Operating Partnership (“common units”).
The Company’s interest in the Operating Partnership entitles the Company to share in distributions from, and allocations of profits and losses of, the Operating Partnership in proportion to the Company’s percentage ownership of common units. As the sole general partner of the Operating Partnership, the Company has the exclusive power under the Operating
Partnership’s
 
partnership agreement
 
to manage and conduct the Operating Partnership’s business, subject to limited approval and voting rights of the limited partners.
The Company has elected to be taxed and will continue to operate in a manner that will allow it to continue to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to qualification as a REIT, the Company will be permitted to deduct dividend distributions paid to its stockholders, eliminating the U.S. federal taxation of income represented by such distributions at the Company level. REITs are subject to a number of organizational and operational requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and, for tax years beginning before 2018, any applicable alternative minimum tax.
2. Summary of Significant Accounting Policies
Basis of Preparation and Summary of Significant Accounting Policies
The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form
10-K
for the year ended December 31, 2019.