City Office REIT, Inc. announced its financial results for the second quarter ended June 30, 2025, on July 31, 2025. The company reported that its portfolio occupancy was 82.5% as of June 30, 2025, or 86.8% including signed leases not yet occupied.
Same Store Cash Net Operating Income (NOI) increased by 1.8% for the three months ended June 30, 2025, compared to the prior year period, and increased by 3.1% for the six months ended June 30, 2025. Total leasing activity during the second quarter was approximately 355,000 square feet.
The company entered into a purchase and sale agreement on June 18, 2025, to sell the Phoenix Portfolio, comprising seven properties, for $296.0 million. Upon classification as held for sale, City Office recognized an impairment of $102.2 million to lower the carrying amount of the Phoenix Portfolio to its estimated fair value less cost to sell.
City Office also reported that it amended and restated a loan agreement for its Greenwood Blvd property, extending the term by three years to May 2028. The interest rate was effectively fixed at 6.34% for the three-year term through an interest rate swap agreement.
In light of the previously announced pending merger, the company stated it will no longer provide guidance nor affirm past guidance. The Board of Directors also resolved to suspend future quarterly common stock dividend payments through the expected close of the merger, while continuing regular quarterly dividends on its Preferred Stock.
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