City Office REIT, Inc. announced its financial results for the first quarter ended March 31, 2025, on May 2, 2025. The company reported rental and other revenues of $42.3 million, a decrease from $44.5 million in the prior year period, primarily due to strategic dispositions and lower occupancy at certain properties.
Net operating income (NOI) for the first quarter was $26.0 million, slightly lower than $26.7 million in Q1 2024. However, Same Store Cash NOI increased by 4.4% compared to the prior year, and the company achieved an 8.5% positive cash re-leasing spread on renewals over the last twelve months.
Portfolio occupancy stood at 84.9% as of March 31, 2025, or 87.6% including signed leases not yet occupied. Core FFO per share for the first quarter was $0.30, and the company reiterated its full year 2025 guidance for Core FFO, occupancy, and Same Store Cash NOI growth.
In a significant strategic development, City Office REIT entered into an agreement on April 14, 2025, with Property Markets Group (PMG) to redevelop a portion of its City Center property in St. Petersburg, Florida. The plan involves developing a 49-story residential condominium and mixed-use tower, expected to be marketed under the Waldorf Astoria Residences brand.
Under the agreement, City Office will contribute a parcel of land, including a standalone parking garage, for a 50% partnership interest. PMG will invest $17 million in predevelopment costs, positioning the company to participate in future development profits from this large-scale project.
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