City Office REIT
Market Cap
US$480.4m
Last Updated
2021/02/25 00:55 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 12.7% per year for the next 3 years
Snowflake Analysis
Average dividend payer and slightly overvalued.
Share Price & News
How has City Office REIT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CIO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CIO's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
9.1%
CIO
2.4%
US REITs
-1.4%
US Market
1 Year Return
-14.2%
CIO
-4.7%
US REITs
37.1%
US Market
Return vs Industry: CIO underperformed the US REITs industry which returned -6.2% over the past year.
Return vs Market: CIO underperformed the US Market which returned 34.1% over the past year.
Shareholder returns
| CIO | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.1% | 2.4% | -1.4% |
| 30 Day | 14.1% | 5.2% | 1.6% |
| 90 Day | 21.1% | 6.5% | 7.3% |
| 1 Year | -7.8%-14.2% | -0.2%-4.7% | 40.2%37.1% |
| 3 Year | 37.7%10.3% | 39.8%22.8% | 62.5%52.1% |
| 5 Year | 31.8%-9.3% | 51.2%20.6% | 133.9%108.0% |
Long-Term Price Volatility Vs. Market
How volatile is City Office REIT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
How Many City Office REIT, Inc. (NYSE:CIO) Shares Do Institutions Own?1 month ago | Simply Wall St
Who Has Been Buying City Office REIT, Inc. (NYSE:CIO) Shares?2 months ago | Simply Wall St
City Office REIT's(NYSE:CIO) Share Price Is Down 29% Over The Past Year.Valuation
Is City Office REIT undervalued compared to its fair value and its price relative to the market?
23.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CIO ($11.07) is trading below our estimate of fair value ($14.37)
Significantly Below Fair Value: CIO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CIO is unprofitable, so we can't compare its PE Ratio to the US REITs industry average.
PE vs Market: CIO is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate CIO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: CIO's PB Ratio (1.5x) is in line with the US REITs industry average.
Next Steps
Future Growth
How is City Office REIT forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-12.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CIO is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: CIO is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: CIO is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: CIO's revenue (2.5% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: CIO's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CIO's Return on Equity is forecast to be low in 3 years time (1.5%).
Next Steps
Past Performance
How has City Office REIT performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CIO is currently unprofitable.
Growing Profit Margin: CIO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CIO is unprofitable, but has reduced losses over the past 5 years at a rate of 3.2% per year.
Accelerating Growth: Unable to compare CIO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CIO is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-5.6%).
Return on Equity
High ROE: CIO has a negative Return on Equity (1.8%), as it is currently unprofitable.
Next Steps
Financial Health
How is City Office REIT's financial position?
Financial Position Analysis
Short Term Liabilities: CIO's short term assets ($91.1M) exceed its short term liabilities ($32.7M).
Long Term Liabilities: CIO's short term assets ($91.1M) do not cover its long term liabilities ($715.0M).
Debt to Equity History and Analysis
Debt Level: CIO's debt to equity ratio (160.1%) is considered high.
Reducing Debt: CIO's debt to equity ratio has reduced from 438.3% to 160.1% over the past 5 years.
Debt Coverage: CIO's debt is not well covered by operating cash flow (8.8%).
Interest Coverage: CIO is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is City Office REIT current dividend yield, its reliability and sustainability?
5.42%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CIO's dividend (5.42%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: CIO's dividend (5.42%) is in the top 25% of dividend payers in the US market (3.75%)
Stability and Growth of Payments
Stable Dividend: CIO has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: CIO has only been paying a dividend for 7 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (79.3%), CIO's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CIO's dividends in 3 years are forecast to be well covered by earnings (49.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average management tenure
CEO
Jamie Farrar (44 yo)
6.83yrs
Tenure
US$2,129,794
Compensation
Mr. James Thomas Farrar, also known as Jamie, serves as Chief Executive Officer and Director at City Office REIT Inc. since April 2014. He serves as a Co-Managing Partner at Clarity Real Estate. He has exp...
CEO Compensation Analysis
Compensation vs Market: Jamie's total compensation ($USD2.13M) is above average for companies of similar size in the US market ($USD1.53M).
Compensation vs Earnings: Jamie's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$2.13m | 0.91% $ 4.4m | |
| COO & President | 5yrs | US$2.13m | 0.74% $ 3.5m | |
| CFO, Secretary & Treasurer | 6.83yrs | US$1.05m | 0.26% $ 1.3m |
6.8yrs
Average Tenure
48yo
Average Age
Experienced Management: CIO's management team is seasoned and experienced (6.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.83yrs | US$2.13m | 0.91% $ 4.4m | |
| Independent Chairman of the Board | 6.83yrs | US$114.75k | 0.041% $ 196.8k | |
| Independent Director | 3.92yrs | US$100.48k | 0.074% $ 356.5k | |
| Independent Director | 6.83yrs | US$107.76k | 0.045% $ 218.1k | |
| Independent Director | 6.83yrs | US$100.87k | 0.037% $ 180.0k | |
| Independent Director | 1.92yrs | US$28.50k | 0.010% $ 49.8k |
6.8yrs
Average Tenure
45yo
Average Age
Experienced Board: CIO's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
City Office REIT, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: City Office REIT, Inc.
- Ticker: CIO
- Exchange: NYSE
- Founded: 2013
- Industry: Office REITs
- Sector: Real Estate
- Market Cap: US$480.406m
- Shares outstanding: 43.40m
- Website: https://www.cityofficereit.com
Number of Employees
Location
- City Office REIT, Inc.
- 500 North Akard Street
- Suite 2960
- Dallas
- Texas
- 75201
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CIO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2014 |
| 5QV | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2014 |
| CIO.PRA | NYSE (New York Stock Exchange) | RED PFD SER A | US | USD | Sep 2016 |
Biography
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 September 30, 2020,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/25 00:55 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.