NYSE$CIO

City Office REIT Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported second quarter results

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.

Headline financials

Total Revenue

$40M

Previous: $39.6M+0.9%
EPS (adj)

$0.35

Previous: $0.29+20.7%
In-Place Occupancy

89.7%

Previous: 91.9%-2.4%
Net Income

$200K

Previous: $623K-67.9%
Operating Income

$7.76M

Previous: $7.76M+0.1%
Cash & Equivalents

$13.4M

Previous: $67M-80.0%
Total Assets

$1.13B

Previous: $1.21B-6.9%

Revenue & EPS history

City Office · Revenue · Quarterly

$40M

Q2 2021+0.9%vs Q2 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

  • 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 %

Headwinds

  • 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.

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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