NYSE:CIO

Stock Analysis Report

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.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

CIO

0.3%

US REITs

2.4%

US Market


1 Year Return

-38.3%

CIO

-20.3%

US REITs

-10.0%

US Market

Return vs Industry: CIO underperformed the US REITs industry which returned -23.9% over the past year.

Return vs Market: CIO underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

CIOIndustryMarket
7 Day0.8%0.3%2.4%
30 Day-35.1%-22.2%-11.0%
90 Day-46.8%-24.2%-19.4%
1 Year-33.5%-38.3%-16.9%-20.3%-8.1%-10.0%
3 Year-28.0%-41.4%-2.8%-15.0%17.3%9.6%
5 Year-21.1%-45.0%15.9%-7.9%36.1%21.1%

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

Valuation

Is City Office REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIO ($7.29) is trading below our estimate of fair value ($22.78)

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 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 (0.9x) compared to the US REITs industry average (1.2x).


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?

37.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CIO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CIO's is expected to become profitable in the next 3 years.

Revenue vs Market: CIO's revenue (5.9% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: CIO's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CIO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

20.2%

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 20.2% 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 (4.3%).


Return on Equity

High ROE: CIO has a negative Return on Equity (0.44%), 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 ($124.8M) exceed its short term liabilities ($28.9M).

Long Term Liabilities: CIO's short term assets ($124.8M) do not cover its long term liabilities ($650.5M).


Debt to Equity History and Analysis

Debt Level: CIO's debt to equity ratio (110.6%) is considered high.

Reducing Debt: CIO's debt to equity ratio has reduced from 208.3% to 110.6% over the past 5 years.

Debt Coverage: CIO's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: CIO is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

8.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CIO's dividend (8.24%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: CIO's dividend (8.24%) is in the top 25% of dividend payers in the US market (5.66%)


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 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (97.3%), CIO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIO's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Jamie Farrar (43yo)

6s

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 ($USD2.13M) is about average for companies of similar size in the US market ($USD2.21M).

Compensation vs Earnings: Jamie's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
James Farrar
CEO & Director6yrsUS$2.13m0.61% $2.4m
Gregory Tylee
Former Board Member4.17yrsUS$2.13m0.49% $2.0m
Anthony Maretic
CFO, Secretary & Treasurer6yrsUS$1.05m0.31% $1.2m

6.0yrs

Average Tenure

47yo

Average Age

Experienced Management: CIO's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Farrar
CEO & Director6yrsUS$2.13m0.61% $2.4m
John McLernon
Independent Chairman of the Board6yrsUS$114.75k0.033% $130.3k
John Sweet
Independent Director3.08yrsUS$100.48k0.059% $236.1k
William Flatt
Independent Director6yrsUS$107.76k0.036% $144.4k
Mark Murski
Independent Director6yrsUS$100.87k0.030% $119.2k
Sabah Mirza
Independent Director1.08yrsUS$28.50k0.0082% $33.0k

6.0yrs

Average Tenure

44yo

Average Age

Experienced Board: CIO's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CIO insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.9%.


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$400.152m
  • Shares outstanding: 54.59m
  • Website: https://www.cityofficereit.com

Number of Employees


Location

  • City Office REIT, Inc.
  • 666 Burrard Street
  • Suite 3210
  • Vancouver
  • British Columbia
  • V6C 2X8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIONYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2014
CIO.PRANYSE (New York Stock Exchange)RED PFD SER AUSUSDSep 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 December 31, 2019, CIO owned office complexes comprising 5.8 million square feet of net rentable area (“NRA”). 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 06:24
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.