City Office REIT
Market Cap
US$423.1m
Last Updated
2021/01/24 01:01 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 fair value.
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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CIO's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-2.0%
CIO
1.1%
US REITs
2.3%
US Market
1 Year Return
-28.7%
CIO
-10.6%
US REITs
23.8%
US Market
Return vs Industry: CIO underperformed the US REITs industry which returned -10.6% over the past year.
Return vs Market: CIO underperformed the US Market which returned 23.8% over the past year.
Shareholder returns
| CIO | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | 1.1% | 2.3% |
| 30 Day | 2.1% | 1.7% | 4.8% |
| 90 Day | 39.1% | 5.6% | 14.5% |
| 1 Year | -23.4%-28.7% | -6.4%-10.6% | 26.6%23.8% |
| 3 Year | 2.7%-17.8% | 25.2%9.8% | 45.0%35.4% |
| 5 Year | 20.6%-17.0% | 52.7%21.4% | 126.2%101.0% |
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
Who Has Been Buying City Office REIT, Inc. (NYSE:CIO) Shares?1 month ago | Simply Wall St
City Office REIT's(NYSE:CIO) Share Price Is Down 29% Over The Past Year.2 months ago | Simply Wall St
City Office REIT, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next YearValuation
Is City Office REIT undervalued compared to its fair value and its price relative to the market?
35.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CIO ($9.75) is trading below our estimate of fair value ($15.14)
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 is good value based on its PB Ratio (1.4x) compared to the US REITs industry average (1.6x).
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 (10.6% 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 (2.9%).
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?
6.15%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CIO's dividend (6.15%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: CIO's dividend (6.15%) is in the top 25% of dividend payers in the US market (3.86%)
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)
6.75yrs
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 about average for companies of similar size in the US market ($USD1.65M).
Compensation vs Earnings: Jamie's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 6.75yrs | US$2.13m | 0.91% $ 3.8m | |
| COO & President | 4.92yrs | US$2.13m | 0.74% $ 3.1m | |
| CFO, Secretary & Treasurer | 6.75yrs | US$1.05m | 0.26% $ 1.1m |
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 | 6.75yrs | US$2.13m | 0.91% $ 3.8m | |
| Independent Chairman of the Board | 6.75yrs | US$114.75k | 0.041% $ 173.4k | |
| Independent Director | 3.83yrs | US$100.48k | 0.074% $ 314.0k | |
| Independent Director | 6.75yrs | US$107.76k | 0.045% $ 192.1k | |
| Independent Director | 6.75yrs | US$100.87k | 0.037% $ 158.5k | |
| Independent Director | 1.83yrs | US$28.50k | 0.010% $ 43.9k |
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$423.122m
- Shares outstanding: 43.40m
- Website: https://www.cityofficereit.com
Number of Employees
Location
- City Office REIT, Inc.
- 666 Burrard Street
- Suite 2960
- Vancouver
- British Columbia
- V6C 2X8
- Canada
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 | 2021/01/24 01:01 |
| End of Day Share Price | 2021/01/22 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.