I N V E S TO R P R E S E NTATION M A Y 2 0 1 7 N YS E : CIO F - PowerPoint PPT Presentation

I N V E S TO R P R E S E NTATION M A Y 2 0 1 7 N YS E : CIO

F ORWARD -L OOKING S TATEMENTS 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, including 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 expectations regarding our financial performance, including under metrics such as 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 dispositions 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, 2016, 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 March 31, 2017. 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

E XECUTIVES AND B OARD OF D IRECTORS J AMIE F ARRAR , C HIEF E XECUTIVE O FFICER  Over 20 years of real estate, private equity and corporate finance industry experience  Completed the acquisition of over $1.7 billion of real estate since 2011  Prior experience with a family office focused on real estate and hospitality and the private equity group of the TD Bank G REG T YLEE , C HIEF O PERATING O FFICER & P RESIDENT  Over 20 years of diverse real estate experience that includes acquisitions of income-producing properties as well as high-rise development  Involved in real estate transactions, incl. development and management, with a combined enterprise value of over $2.0 billion  Former President of Bosa Properties Inc., a prominent real estate development company with over 400 employees T ONY M ARETIC , C HIEF F INANCIAL O FFICER , S ECRETARY & T REASURER  Over 20 years of experience, including over 15 years of experience in senior financial and operational roles, of which 12 years were spent within the real estate industry  Former Chief Operating Officer and Chief Financial Officer of Earls Restaurants Ltd., a multi-national hospitality company  Held financial management positions with a U.S. based senior living real estate company and Bentall Kennedy BOARD OF DIRECTORS   John McLernon, Chairman Jamie Farrar, CEO & Director William Flatt, Director     Jeffrey Kohn, Director Mark Murski, Director Stephen Shraiberg, Director John Sweet, Director  Indicates Independent Director 3

C OMPANY O VERVIEW City Office invests in high-quality office properties in mid-sized metropolitan areas with strong economic fundamentals, primarily in the Southern and Western United States CURRENT MARKETS (1) P ORTLAND , OR 7% B OISE , ID (2) 10% D ENVER , CO 19% P HOENIX , AZ D ALLAS , TX 12% O RLANDO , FL 13% 14% T AMPA , FL % OF P ORTFOLIO ABR (3) 26% 19 38 4.5mm SF 90.2% Properties Buildings Total NRA Occupancy 6 5.2 yrs $88.0mm $22.98 States Avg Lease Term ABR (3) Annualized Gross Rent /SF (1) Current markets map and information in the table below are as of March 31, 2017 Washington Group Plaza in Boise is under contract for disposition; this property is CIO’s only property in Boise (2) (3) Annualized base rent is calculated by multiplying (i) rental payments (defined as cash rents before abatements) for the month ended March 31, 2017 by (ii) 12 4

A TTRACTIVE M ARKET C HARACTERISTICS % P ROJECTED J OB G ROWTH FROM 2017 TO 2022 9.4% 9.6% 9.2% 10.0% 9.0% 8.1% 7.3%  7.2% 8.0% Strong economic fundamentals and demographics 6.0% 4.7% 4.0% 4.0%  Diverse employment base with national and 2.0% international employers 0.0% Gateway National Tampa, Portland, Phoenix, Denver, Boise, Orlando, Dallas,  Educated workforce Markets (1) Average FL OR AZ CO ID FL TX % P ROJECTED P OPULATION G ROWTH FROM 2017 TO 2022  Low-cost center for businesses to operate 10.0% 8.3% 8.1% 8.1%  7.6% Strong and stable demand generators such 7.1% 8.0% 6.5% as state capitals or university proximity 6.4% 6.0% 4.0% 3.4%  4.0% Demonstrated recovery in local real estate conditions 2.0% 0.0% Gateway National Portland, Tampa, Phoenix, Boise, Denver, Dallas, Orlando, Markets (1) Average OR FL AZ ID CO TX FL Source: SNL Financial as of May 1, 2017 (1) Gateway markets represent New York, NY, Boston, MA, Chicago, IL, Los Angeles, CA, San Francisco, CA and Washington, D.C. 5

M IGRATION T RENDS F AVORING CIO M ARKETS N ET D OMESTIC M IGRATION 2015-2016 Maricopa County (Phoenix) added over 222 people per day in 2016, more than any other county in the US Dallas MSA experienced largest total gain, increasing by 100,000+ Represents CIO current or pipeline market Source: United States Census Bureau, data release from 3/23/2017 6

O UR S TRATEGY CIO’s strategy is to produce attractive returns through a focused acquisition strategy and increasing property cash flows O UTPERFORMANCE OF N ON -G ATEWAY O FFICE M ARKETS Less competition from larger institutional investors  Local real estate operators lack the capital to compete  Outsized population and employment growth catalysts  CIO ranked #1 in market exposure to job-related demand in  Deutsche Bank’s REIT Job Tracker (1) I NVEST W HERE W E H AVE AN A DVANTAGE Announced Post – IPO Acquisition Cap Rates (2) Focus on properties valued between $25-100 million  8.3% Supply-constrained market dynamics  7.7% 7.6% 7.5% High credit tenancy, below market in-place rents and  acquisition prices below replacement cost Leverage local property manager relationships to source  acquisition opportunities and efficiently operate 2014 2015 2016 Avg. As of March 31, 2017 for the trailing 12 months. For REITs under coverage by Deutsche Bank Equity Research – North America. Ranking based on weighted average year over year non-seasonally (1) adjusted job growth rate for each REIT under coverage 7 (2) Includes all acquisitions since IPO; represents the weighted average cap rate for each year of announced, projected year one cap rates at the time of acquisition