I N V E S TO R P R E S E NTATION N O V E M B E R 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 September 30, 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 $1.9 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 4% B OISE , ID (2) 11% D ENVER , CO S AN D IEGO , CA (1) 18% 13% P HOENIX , AZ D ALLAS , TX 12% O RLANDO , FL 11% 11% T AMPA , FL % OF P ORTFOLIO NRA 20% 48 8 5.2mm SF 88.9% Buildings Markets Total NRA Occupancy 7.3% 4.7 yrs $104.8mm $24.23 2017 YTD SSNOI (3) Avg Lease Term ABR (4) Annualized Gross Rent /SF (1) Except for SSNOI and Avg Lease Term, which are as of September 30, 2017, all other information is as of September 30, 2017 adjusted for the acquisition of Papago Tech in October 2017 Washington Group Plaza in Boise is under contract for disposition; this property is CIO’s only property in Boise (2) (3) For a more detailed description of same store cash NOI as of September 30, 2017, please see our Q3 2017 Supplemental Financial Information package, available on our website 4 (4) Annualized base rent is calculated by multiplying (i) rental payments (defined as cash rents before abatements) for the month ended September 30, 2017 by (ii) 12
A TTRACTIVE M ARKET C HARACTERISTICS % P ROJECTED J OB G ROWTH FROM 2017 TO 2023 14.0% 15.0% 12.6% 12.4% 11.9% 11.7% 11.8% 11.4% ✓ 12.0% Strong economic fundamentals and demographics 7.9% 9.0% 6.3% 6.0% 4.6% ✓ Diverse employment base with national and international employers 3.0% 0.0% ✓ Gateway National San Diego, Portland, Denver, Phoenix, Tampa, Dallas, Boise, Orlando, Educated workforce (1) Markets Average CA OR CO AZ FL TX ID FL % P ROJECTED P OPULATION G ROWTH FROM 2017 TO 2023 ✓ Low-cost center for businesses to operate 12.0% 10.7% ✓ 9.8% Strong and stable demand generators such 9.6% 9.3% 9.0% 8.8% 8.4% as state capitals or university proximity 9.0% 5.0% 6.0% ✓ Demonstrated recovery in local real estate 4.2% conditions 2.4% 3.0% 0.0% Gateway National San Diego, Portland, Tampa, Denver, Phoenix, Dallas, Boise, Orlando, (1) Markets Average CA OR FL CO AZ TX ID FL Source: SNL Financial as of November 1, 2017 (1) Gateway markets represent New York, NY, Boston, MA, Chicago, IL, Los Angeles, CA, San Francisco, CA and Washington, D.C. 5
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