NYSE$CIO

City Office REIT Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported first quarter results, showcasing growth in key financial metrics and strategic capital allocation.

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.

Headline financials

Total Revenue

$39.5M

Previous: $40.1M-1.5%
EPS (adj)

$0.33

Previous: $0.26+26.9%
Same Store Cash NOI Growth

5.0%

Previous: 4.1%+22.0%
In-Place Occupancy

90.5%

Previous: 92.2%-1.8%
Net Income

$47M

Previous: -$1.03M+4658.7%
Operating Income

$8.18M

Previous: $7.69M+6.4%
Gross Profit

$39.5M

Previous: $40.1M-1.5%
Cash & Equivalents

$14.9M

Previous: $147M-89.8%
Total Assets

$1.09B

Previous: $1.3B-16.2%
Stock-Based Comp

$645K

Previous: $569K+13.4%

Revenue & EPS history

City Office · Revenue · Quarterly

$39.5M

Q1 2021-1.5%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • The Company reminds investors that the impacts of the COVID-19 pandemic are uncertain and impossible to predict.
  • There can be no assurance that future developments affecting us will be those that we have anticipated.
  • Actual results may differ materially from these expectations due to the factors, risks and uncertainties described above, changes in global, regional or local political, economic, business, competitive, market, regulatory and other factors described in our news releases and filings with the SEC

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports

Historical avg

-1.4%

Avg return

Earnings day

-3.9%

Avg return

5 days after

+0.4%

Avg return

30 days after

35%

15 / 43 earnings

Positive

+12.0%

Q1 2020

Best reaction

-13.1%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2025+0.0%+0.3%+0.4%
Q2 2025+0.1%+0.7%+0.1%
Q1 2025-5.3%-6.7%-6.7%
Q4 2025+1.4%-2.2%-0.6%
Q3 2024-5.8%-2.2%+6.5%
Q2 2024-9.8%-10.6%-3.5%
Q1 2024+2.3%+0.6%+3.4%
Q4 2023-4.5%-11.6%+3.4%
Q3 2023+5.1%
Q2 2023-1.5%
Q1 2023-13.1%
Q4 2022-2.3%
Q3 2022-9.1%
Q2 2022-6.2%
Q1 2022-7.0%
Q4 2021-0.6%
Q3 2021-4.3%
Q2 2021+4.7%
Q1 2021-2.8%
Q4 2020-8.2%
Q3 2020-0.5%
Q2 2020+6.5%
Q1 2020+12.0%
Q4 2019-8.5%
Q3 2019-0.7%
Q2 2019+2.2%
Q1 2019+4.0%
Q4 2018-9.4%
Q3 2018-3.3%
Q2 2018-0.3%
Q1 2018+1.1%
Q4 2017+6.8%
Q3 2017-2.0%
Q2 2017-0.2%
Q1 2017+1.8%
Q4 2016-2.9%
Q3 2016+4.2%
Q2 2016-0.4%
Q1 2016+2.0%
Q4 2015-1.2%
Q3 2015-4.8%
Q2 2015+0.0%
Q1 2014+0.1%
Q3 2013
Q2 2013
Q1 2013
Q4 2012

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