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City Office REIT

NYSE:CIO
Snowflake Description

Average dividend payer with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CIO
NYSE
$475M
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

City Office REIT, Inc. (NYSE: CIO) invests in high-quality office properties in 18-hour cities with strong economic fundamentals, primarily in the Southern and Western United States. The last earnings update was 10 days ago. More info.


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CIO Share Price and Events
7 Day Returns
1.4%
NYSE:CIO
0.2%
US REITs
-3.9%
US Market
1 Year Returns
4.3%
NYSE:CIO
13%
US REITs
1.4%
US Market
CIO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
City Office REIT (CIO) 1.4% 8.6% -1.1% 4.3% 6.7% -3.1%
US REITs 0.2% -1.4% 3.2% 13% 8.8% 24%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • CIO underperformed the REITs industry which returned 13% over the past year.
  • CIO outperformed the Market in United States of America which returned 1.4% over the past year.

CIO Value

 Is City Office REIT undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of City Office REIT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for City Office REIT.

NYSE:CIO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CIO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.531 (1 + (1- 26.5%) (147.96%))
1.073
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.073 * 5.96%)
9.13%

Discounted Cash Flow Calculation for NYSE:CIO using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for City Office REIT is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

City Office REIT is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:CIO DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 9.13%)
2019 35.44 Analyst x5 32.47
2020 40.27 Analyst x4 33.81
2021 37.00 Analyst x1 28.47
2022 37.84 Est @ 2.28% 26.68
2023 38.76 Est @ 2.41% 25.04
2024 39.73 Est @ 2.51% 23.52
2025 40.75 Est @ 2.57% 22.11
2026 41.82 Est @ 2.62% 20.79
2027 42.93 Est @ 2.65% 19.56
2028 44.08 Est @ 2.68% 18.40
Present value of next 10 years cash flows $250.88
NYSE:CIO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $44.08 × (1 + 2.73%) ÷ (9.13% – 2.73%)
$707.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $707.89 ÷ (1 + 9.13%)10
$295.57
NYSE:CIO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $250.88 + $295.57
$546.45
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $546.45 / 39.64
$13.79
NYSE:CIO Discount to Share Price
Calculation Result
Value per share (USD) From above. $13.79
Current discount Discount to share price of $11.99
= -1 x ($11.99 - $13.79) / $13.79
13%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price City Office REIT is available for.
Intrinsic value
13%
Share price is $11.99 vs Future cash flow value of $13.79
Current Discount Checks
For City Office REIT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • City Office REIT's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • City Office REIT's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for City Office REIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are City Office REIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CIO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.46
NYSE:CIO Share Price ** NYSE (2019-05-15) in USD $11.99
United States of America REITs Industry PE Ratio Median Figure of 155 Publicly-Listed REITs Companies 32.37x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of City Office REIT.

NYSE:CIO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CIO Share Price ÷ EPS (both in USD)

= 11.99 ÷ -0.46

-26.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • City Office REIT is loss making, we can't compare its value to the US REITs industry average.
  • City Office REIT is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does City Office REIT's expected growth come at a high price?
Raw Data
NYSE:CIO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -26.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
1.1%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 1.91x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for City Office REIT, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on City Office REIT's assets?
Raw Data
NYSE:CIO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $6.90
NYSE:CIO Share Price * NYSE (2019-05-15) in USD $11.99
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.86x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:CIO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CIO Share Price ÷ Book Value per Share (both in USD)

= 11.99 ÷ 6.90

1.74x

* Primary Listing of City Office REIT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • City Office REIT is good value based on assets compared to the US REITs industry average.
X
Value checks
We assess City Office REIT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. City Office REIT has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CIO Future Performance

 How is City Office REIT expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is City Office REIT expected to grow at an attractive rate?
  • Unable to compare City Office REIT's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare City Office REIT's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • City Office REIT's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CIO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CIO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 1.1%
NYSE:CIO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10.5%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 5.2%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CIO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CIO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 -15
2020-12-31 167 -16 4
2019-12-31 153 -14 5
NYSE:CIO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 135 43 -17
2018-12-31 129 42 31
2018-09-30 126 41 36
2018-06-30 118 36 36
2018-03-31 113 35 47
2017-12-31 106 37 -2
2017-09-30 97 32 -4
2017-06-30 91 29 -2
2017-03-31 82 18 1
2016-12-31 72 19 -3
2016-09-30 69 14 1
2016-06-30 65 10 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • City Office REIT is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • City Office REIT's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CIO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from City Office REIT Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CIO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 -0.26 -0.26 -0.26 1.00
2019-12-31 -0.29 -0.27 -0.31 3.00
NYSE:CIO Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.46
2018-12-31 0.82
2018-09-30 1.04
2018-06-30 1.08
2018-03-31 1.47
2017-12-31 -0.05
2017-09-30 -0.13
2017-06-30 -0.08
2017-03-31 0.05
2016-12-31 -0.13
2016-09-30 0.05
2016-06-30 0.02

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if City Office REIT will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess City Office REIT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
City Office REIT has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CIO Past Performance

  How has City Office REIT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare City Office REIT's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • City Office REIT does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare City Office REIT's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare City Office REIT's 1-year growth to the US REITs industry average as it is not currently profitable.
Earnings and Revenue History
City Office REIT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from City Office REIT Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CIO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 135.07 -17.40 8.46
2018-12-31 129.48 30.75 8.14
2018-09-30 126.50 36.48 7.35
2018-06-30 117.70 36.01 6.95
2018-03-31 112.62 46.87 6.58
2017-12-31 106.49 -1.66 6.79
2017-09-30 96.61 -3.81 7.13
2017-06-30 90.65 -2.13 7.43
2017-03-31 81.59 1.18 7.38
2016-12-31 72.46 -2.62 13.47
2016-09-30 68.70 0.90 12.91
2016-06-30 64.53 0.35 12.23
2016-03-31 60.07 -12.97 11.69
2015-12-31 55.05 -6.59 4.22
2015-09-30 48.03 -4.37 3.81
2015-06-30 43.42 -3.63 3.52
2015-03-31 40.17 -5.75 3.17
2014-12-31 36.90 -5.01 2.41
2014-09-30 32.39 -8.54 1.11
2014-06-30 29.31 -6.59 0.47
2014-03-31 25.39 -4.07 -0.06
2013-12-31 20.89 -4.13
2013-09-30 18.36 -1.91 0.48
2012-12-31 12.02 -1.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if City Office REIT has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • City Office REIT used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • It is difficult to establish if City Office REIT improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess City Office REIT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
City Office REIT has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CIO Health

 How is City Office REIT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up City Office REIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • City Office REIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • City Office REIT's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of City Office REIT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from City Office REIT Company Filings, last reported 1 month ago.

NYSE:CIO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 386.39 703.17 15.31
2018-12-31 398.38 645.35 16.14
2018-09-30 415.75 546.02 13.70
2018-06-30 386.15 479.61 14.66
2018-03-31 396.94 421.79 18.51
2017-12-31 359.83 489.51 12.30
2017-09-30 302.13 532.11 18.90
2017-06-30 312.91 411.11 68.15
2017-03-31 312.66 400.76 50.63
2016-12-31 256.06 370.06 13.70
2016-09-30 156.60 302.77 12.02
2016-06-30 162.68 289.84 7.66
2016-03-31 66.90 345.12 8.20
2015-12-31 73.72 341.28 8.14
2015-09-30 78.79 344.95 10.52
2015-06-30 81.89 241.10 11.29
2015-03-31 87.18 189.67 23.99
2014-12-31 91.24 189.94 34.86
2014-09-30 96.23 190.20 36.54
2014-06-30 57.29 155.00 10.18
2014-03-31 32.01 159.39 6.53
2013-12-31 27.71 109.92 7.13
2013-09-30 26.72 108.91 7.55
2012-12-31 6.01 53.26 3.11
  • City Office REIT's level of debt (182%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (493.5% vs 182% today).
  • Debt is not well covered by operating cash flow (6.1%, less than 20% of total debt).
  • City Office REIT is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess City Office REIT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. City Office REIT has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CIO Dividends

 What is City Office REIT's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.84%
Current annual income from City Office REIT dividends. Estimated to be 7.84% next year.
If you bought $2,000 of City Office REIT shares you are expected to receive $157 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • City Office REIT's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • City Office REIT's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CIO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CIO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.94 1.00
2020-12-31 0.94 3.00
2019-12-31 0.94 5.00
NYSE:CIO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-15 0.940 8.245
2018-12-21 0.940 8.320
2018-09-14 0.940 8.229
2018-06-15 0.940 7.352
2018-03-21 0.940 8.023
2017-12-15 0.940 8.128
2017-11-07 0.940 7.247
2017-11-06 0.940 7.349
2017-08-04 0.940 7.236
2017-08-03 0.940 7.499
2017-03-21 0.940 7.563
2016-12-21 0.940 7.406
2016-09-15 0.940 7.497
2016-06-20 0.940 7.166
2016-03-15 0.940 8.110
2015-12-18 0.940 7.997
2015-09-15 0.940 8.256
2015-06-15 0.940 7.888
2015-03-19 0.940 7.318
2014-12-15 0.940 7.387
2014-09-15 0.940 7.176
2014-05-12 0.940 7.448

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, City Office REIT has been paying a dividend for less than 10 years.
  • City Office REIT has only been paying a dividend for 5 years, and since then there has been no growth.
Current Payout to shareholders
What portion of City Office REIT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (56.5x coverage).
X
Income/ dividend checks
We assess City Office REIT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can City Office REIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. City Office REIT has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CIO Management

 What is the CEO of City Office REIT's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jamie Farrar
COMPENSATION $1,624,006
AGE 42
TENURE AS CEO 5.1 years
CEO Bio

Mr. James Thomas Farrar, also known as Jamie, serves as Chief Executive Officer and Director at City Office REIT Inc. since April 2014. He has extensive experience in the private equity, real estate and corporate finance industry. Mr. Farrar joined Second City Real Estate in 2009 as a Managing Director and prior to this, spent seven years as an executive at a family office with a diversified portfolio primarily concentrated in the real estate sector. From August 2003, prior to joining Second City, Mr. Farrar served as the Vice President of Ken Fowler Enterprises Limited, a family office with a diversified portfolio concentrated primarily in the real estate and hospitality sectors. At Ken Fowler Enterprises Limited, Mr. Farrar was responsible for leading acquisitions, divestitures and portfolio management. Prior to this, Mr. Farrar was an investment professional with TD Capital, the private equity unit of TD Bank. Mr. Farrar has extensive experience in acquisitions and divestitures and has been involved in the acquisition of approximately $2.0 billion of commercial real estate. Mr. Farrar received a bachelor’s degree in business administration from Wilfrid Laurier University and is a chartered accountant, a chartered business valuator and a CFA charterholder. Mr. Farrar brings to our Board of Directors extensive executive management experience gained over 20 years of involvement in the private equity, real estate and corporate finance industries.

CEO Compensation
  • Jamie's compensation has increased whilst company is loss making.
  • Jamie's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the City Office REIT management team in years:

5.1
Average Tenure
46
Average Age
  • The average tenure for the City Office REIT management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jamie Farrar

TITLE
CEO & Director
COMPENSATION
$2M
AGE
42
TENURE
5.1 yrs

Greg Tylee

TITLE
COO & President
COMPENSATION
$2M
AGE
46
TENURE
5.1 yrs

Tony Maretic

TITLE
CFO, Treasurer & Secretary
COMPENSATION
$999K
AGE
46
TENURE
5.1 yrs
Board of Directors Tenure

Average tenure and age of the City Office REIT board of directors in years:

5.1
Average Tenure
43
Average Age
  • The tenure for the City Office REIT board of directors is about average.
Board of Directors

John McLernon

TITLE
Chairman of the Board
COMPENSATION
$101K
AGE
77
TENURE
5.1 yrs

Jamie Farrar

TITLE
CEO & Director
COMPENSATION
$2M
AGE
42
TENURE
5.1 yrs

Mark Murski

TITLE
Independent Director
COMPENSATION
$91K
AGE
42
TENURE
5.1 yrs

Stephen Shraiberg

TITLE
Independent Director
COMPENSATION
$86K
AGE
71
TENURE
5.1 yrs

Will Flatt

TITLE
Independent Director
COMPENSATION
$96K
AGE
43
TENURE
5.1 yrs

John Sweet

TITLE
Independent Director
COMPENSATION
$86K
AGE
74
TENURE
2.2 yrs

Sabah Mirza

TITLE
Independent Director
AGE
43
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by City Office REIT insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 19 Buy John Sweet Individual 08. May 19 08. May 19 3,000 $11.84 $35,520
06. Mar 19 Buy James Farrar Individual 06. Mar 19 06. Mar 19 8,000 $11.41 $91,120
28. Dec 18 Buy Gregory Tylee Individual 27. Dec 18 27. Dec 18 5,000 $9.83 $49,150
29. Nov 18 Buy John Sweet Individual 29. Nov 18 29. Nov 18 1,000 $10.70 $10,700
06. Nov 18 Buy Stephen Shraiberg Individual 05. Nov 18 05. Nov 18 35,000 $10.81 $377,500
X
Management checks
We assess City Office REIT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. City Office REIT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CIO News

Simply Wall St News

A Holistic Look At City Office REIT, Inc. (NYSE:CIO)

Help shape the future of investing tools and you could win a $250 gift card! … As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

A Closer Look At City Office REIT, Inc.'s (NYSE:CIO) Impressive ROE

Our data shows City Office REIT has a return on equity of 9.7% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.097 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Institutions Own City Office REIT, Inc. (NYSE:CIO) Shares?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … City Office REIT is a smaller company with a market capitalization of US$433m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Does City Office REIT, Inc.'s (NYSE:CIO) CEO Salary Compare Well With Others?

Jamie Farrar has been the CEO of City Office REIT, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Jamie Farrar's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Kind Of Shareholder Appears On The City Office REIT Inc's (NYSE:CIO) Shareholder Register?

A look at the shareholders of City Office REIT Inc (NYSE:CIO) can tell us which group is most powerful. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … City Office REIT is a smaller company with a market capitalization of US$442m, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Is City Office REIT Inc's (NYSE:CIO) CEO Salary Justified?

In 2014 Jamie Farrar was appointed CEO of City Office REIT Inc (NYSE:CIO). … How Does Jamie Farrar's Compensation Compare With Similar Sized Companies. … Our data indicates that City Office REIT Inc is worth US$422m, and total annual CEO compensation is US$1m.

Simply Wall St -

Can City Office REIT Inc (NYSE:CIO) Continue To Outperform Its Industry?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … With an ROE of 11.3%, City Office REIT Inc (NYSE:CIO) outpaced its own industry which delivered a less exciting 6.6% over the past year. … See our latest analysis for City Office REIT

Simply Wall St -

How Does City Office REIT Inc (NYSE:CIO) Fare As A Dividend Stock?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Over the past 4 years, City Office REIT Inc (NYSE:CIO) has returned an average of 8.00% per year to shareholders in terms of dividend yield. … Does City Office REIT tick all the boxes of a great dividend stock?

Simply Wall St -

3 Days Left Before City Office REIT Inc (NYSE:CIO) Will Start Trading Ex-Dividend, Should Investors Buy?

See our latest analysis for City Office REIT How I analyze a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it paying an annual yield above 75% of dividend payers? … NYSE:CIO Historical Dividend Yield Apr 6th 18 Does City Office REIT pass our checks? … Next Steps: After digging a little deeper into City Office REIT's yield, it's easy to see why you should be cautious investing in the company just for the dividend.

Simply Wall St -

One Metric To Rule Them All: City Office REIT Inc (NYSE:CIO)

City Office REIT Inc is a US$374.53M small-cap real estate investment trust (REIT) based in Vancouver, Canada. … Check out our latest analysis for City Office REIT Funds from Operations (FFO) is a higher quality measure of CIO's earnings compared to net income. … Instead of the P/E ratio, P/FFO is used instead, which is very common for REIT stocks.

Simply Wall St -

CIO Company Info

Description

City Office REIT, Inc. (NYSE: CIO) invests in high-quality office properties in 18-hour cities with strong economic fundamentals, primarily in the Southern and Western United States. At March 31, 2019, CIO owned office complexes comprising 5.7 million square feet of net rentable area (“NRA”).

Details
Name: City Office REIT, Inc.
CIO
Exchange: NYSE
Founded: 2013
$475,233,158
39,635,793
Website: http://www.cityofficereit.com
Address: City Office REIT, Inc.
666 Burrard Street,
Suite 3210,
Vancouver,
British Columbia, V6C 2X8,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CIO Common Stock New York Stock Exchange US USD 15. Apr 2014
NYSE CIO.PRA RED PFD SER A New York Stock Exchange US USD 27. Sep 2016
Number of employees
Current staff
Staff numbers
18
City Office REIT employees.
Industry
Office REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 02:37
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/07
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.