I N V E S TO R P R E S E N TATION NYSE : C IO Forward-Looking - PowerPoint PPT Presentation

I N V E S TO R P R E S E N TATION NYSE : C IO

Forward-Looking Statements This presentation contains certain “forward -looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this presentation, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward- looking statements within the meaning of the federal securities laws and as such are based upon City Office REIT, Inc. (“CIO” or the “Company”) and its current beliefs as to the outcome and timing of future events. There can be no assurance that actual forward-looking statements, include projected capital resources, projected profitability and portfolio performance, estimates or developments affecting the Company will be those anticipated by the Company. Examples of forward-looking statements include those pertaining to market rental rates, national or local economic growth, estimated replacement costs of our properties, projected capital improvements, expected sources of financing, expectations as to the timing of closing of acquisitions, dispositions, or other transactions, the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations, including, without limitation, the anticipated net operating income yield and cap rates. Forward-looking statements presented in this presentation are based on management’s beliefs and assumptions made by, and information currently available to, management. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “hypothetical,” “continue,” “future” or other similar words or expressions. All forward-looking statements included in this presentation are based upon information available to the Company on the date hereof and the Company is under no duty to update any of the forward-looking statements after the date of this presentation to conform these statements to actual results. The forward-looking statements involve a number of significant risks and uncertainties. Factors that could have a material adverse effect on the Company’s operations and future prospects are set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and Quarterly Report for on Form 10-Q for the three months ended June 30, 2015, including the sections entitled “Risk Factors” contained therein. The factors set forth in the Risk Factors section and otherwise described in the Company’s filings with SEC could cause the Company’s actual results to differ significantly from those contained in any forward-looking statement contained in this presentation. The Company does not guarantee that the assumptions underlying such forward-looking statements are free from errors. Unless otherwise stated, historical financial information and per share and other data is as of June 30, 2015. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s business, financial condition, liquidity, cash flows and results could differ materially from those expressed in any forward-looking statement. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Use caution in relying on past forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends. 2

Experienced Management Team  Over 15 years of real estate, private equity and corporate finance industry experience. James Farrar  Acquired over $1.0 billion of real estate since 2011 Chief Executive Officer & Director  Prior experience with a family office focused on real estate and hospitality and the private equity group of the TD Bank  Over 15 years of diverse real estate experience that includes acquisitions of income-producing properties as well as high-rise development Greg Tylee  Involved in real estate transactions including development and Chief Operating management with a combined enterprise value of over $2.0 billion Officer & President  Former President of Bosa Properties Inc., a prominent real estate development company with over 400 employees  Over 15 years of experience in senior financial and operational roles, of which 10 years were spent within the real estate industry Anthony Maretic  Former Chief Operating Officer and Chief Financial Officer of Earls Chief Financial Restaurants Ltd., a multinational hospitality company Officer, Secretary &  Previously the Chief Financial Officer of a $230 million U.S. based senior Treasurer living real estate company  Held a variety of financial management positions with Bentall Capital LP 3

City Office REIT Overview City Office REIT owns quality office properties in high growth markets primarily in the Southern and Western United States  Focus on creating stockholder value through a targeted acquisition strategy and internal cash flow growth  CIO owns 2.7 million square feet of office properties  Located in vibrant, growing market with strong leasing fundamentals  High percentage occupied by quality credit tenants  Substantial capital improvements completed P RIMARY T ARGET M ARKETS  Experienced Management Team  Management and Board of Directors own ~13.6% of CIO at June 30, 2015 S EATTLE , WA P ORTLAND , OR  Focused Acquisition Strategy Concentrated on B OISE , ID Thriving Markets with Leading Economic Fundamentals S ALT L AKE C ITY , UT  Well located Class A & B office properties in both D ENVER , CO CBD and key amenity-rich, transit-oriented suburban locations P HOENIX , AZ  Acquisition prices generally between $20mm to D ALLAS , TX $50mm A USTIN , TX H OUSTON , TX O RLANDO , FL S AN A NTONIO , TX  Typical target acquisition cap rates expected T AMPA , FL between 7.0% and 9.0% 4

Robust Target Markets % J OB G ROWTH FROM J UNE 2009 TO J UNE 2015  Focused on markets with desirable attributes for office real estate:  Strong economic fundamentals and demographics  Growing population  Diverse employment base with national and international Source: U.S. Bureau of Labor Statistics as of August 20, 2015. employers % P ROJECTED P OPULATION G ROWTH FROM 2014 TO 2020  Educated workforce  Low-cost center for businesses to operate  State capital or university concentration  Demonstrated recovery in local real estate conditions Source: SNL Financial LLC 5

Delivering Strong Results  Recent Performance (Q2 2015)  Executed approximately 380,000 SF of new and renewal leases during the quarter, including leases which will commence subsequent to quarter end  In-place and committed occupancy increased from 94.5% in Q1 2015 to 95.2%  Decreased rollover in 2015 and 2016 from 25.2% to 11.1% (1)  Achieved Core Funds From Operations ("Core FFO") (2) of $4.2 million, or $0.27 per fully diluted share  Renewed the Dun & Bradstreet Corporation lease at the Corporate Parkway property for 178,330 SF  Strengthened Balance Sheet With Increased Financing Flexibility  Increased revolver availability to $75 million (3) with KeyBank National Association, BMO Harris Bank, N.A. and the Royal Bank of Canada  Maintain outsized dividend yield  Annualized dividend of $0.94 per share or a ~7.6% yield (4)  Continue to Source Strong Acquisitions in Leading Markets  Currently reviewing over $450 million in target markets  Property under contract in Dallas for 307,400 SF and $54.4 million A CQUISITIONS P OST -IPO ( INCLUDING PROPERTIES UNDER CONTRACT ) Property Location Close date % Ownership Cost (000's) (5) Total SF of NRA Plaza 25 Denver, CO 6/4/2014 100% $25,100 196,803 Lake Vista Pointe Dallas, TX 7/18/2014 100% 28,400 163,336 Florida Research Park Orlando, FL 11/18/2014 100% 26,500 124,500 Logan Tower Denver, CO 2/4/2015 100% 10,500 69,968 Superior Pointe Denver, CO 6/17/2015 100% 25,800 149,006 DTC Crossroads Denver, CO 6/30/2015 100% 35,000 191,402 Granite 190 Dallas, TX Pending 100% 54,400 307,400 Total $205,700 1,202,415 Based on net rentable area as of June 30, 2015, assuming the Dun and Bradstreet and St. Luke’s leases were in-place at that time (1) Reconciliation of Core FFO to GAAP net income has been posted to the Company’s website at www.cityofficereit.com (2) (3) The Amended Facility increased our borrowing capacity from $30 million to $75 million. The facility also has an accordion feature that would allow it to be increased to a total of $150 million (4) Based on a closing stock price of $12.40 on June 30, 2015. 6 (5) Excluding closing costs and working capital adjustments