Overview

* City Office reports Q2 GAAP net loss of $107.2 mln due to Phoenix impairment

* Core FFO for Q2 was $11.8 mln, or $0.28 per share

* Company announces merger with MCME Carell at 26% premium to stock price

Outlook

* City Office REIT ( CIO ) will no longer provide guidance due to pending merger

* Company suspends future common stock dividends until merger completion

* City Office REIT ( CIO ) to continue preferred stock dividends during merger process

Result Drivers

* PHOENIX IMPAIRMENT - $102.2 mln impairment on Phoenix Portfolio contributed to Q2 net loss

* LEASING ACTIVITY - Executed 355,000 sq ft of new and renewal leases, boosting occupancy

* SAME STORE NOI - Same Store Cash NOI rose 1.8% compared to Q2 2024, indicating stable operations

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net -$107.20

Income mln

Q2 Core $11.80

FFO mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the commercial reits peer group is "hold"

* Wall Street's median 12-month price target for City Office REIT Inc ( CIO ) is $7.00, about 1.1% above its July 30 closing price of $6.92

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)