I N V E S TO R P R E S E NTATION M A Y 2 0 1 9 NYSE : 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 and operating 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 or recent acquisitions and dispositions and descriptions relating to these expectations, including, without limitation, anticipated net operating income yield, cap rates and the Company’s projections for its performance in future periods. 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, 2018 and subsequent filings with the SEC, 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, 2019. 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 $2.0 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 $2.5 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 ❑ Former Chief Operating Officer and Chief Financial Officer of Earls Restaurants Ltd., a multi-national hospitality company ❑ Held financial management positions with Bentall Kennedy and a senior living real estate company BOARD OF DIRECTORS ✓ ✓ John McLernon, Chairman Jamie Farrar, CEO & Director William Flatt, Director ✓ ✓ ✓ ✓ Sabah Mirza, Director Mark Murski, Director Stephen Shraiberg, Director John Sweet, Director ✓ Indicates Independent Director 3
Central Fairwinds, Orlando DTC Crossroads, Denver 5090 N 40th St, Phoenix 2525 McKinnon, Dallas Mission City, San Diego Circle Point, Denver City Center, Tampa Park Tower, Tampa Pima Center, Phoenix
C OMPANY O VERVIEW City Office invests in high-quality office properties in 18-hour cities with strong economic fundamentals, primarily in the Southern and Western United States Annualized Lease No. of NRA Gross Rent In Place Term 4% S EATTLE , WA Market Buildings (000s SF) per SF Occupancy Remaining CURRENT MARKETS (1) Phoenix, AZ 22 1,213 $27.02 95.6% 3.3 P ORTLAND , OR Tampa, FL 5 1,040 $24.83 95.1% 5.0 4% Denver, CO 9 1,039 $24.59 88.8% 6.1 Orlando, FL 8 720 $25.81 93.3% 4.4 D ENVER , CO San Diego, CA 10 671 $32.67 83.9% 3.8 S AN D IEGO , CA 18% 577 Dallas, TX 4 $28.29 93.8% 3.8 12% P HOENIX , AZ O RLANDO , FL Seattle, WA 3 207 $29.20 100.0% 9.8 D ALLAS , TX 21% 13% Portland, OR 3 201 $23.68 96.9% 4.6 10% T AMPA , FL Total 64 5,668 $26.72 92.6% 4.7 18% Experienced Targeted Flexible Attractive Dedicated Management Team 8.3% Class A & B Office High Growth, Balance Sheet and 18-Hour Cities Positioned For Dividend Owner Yield (2) Growth Board of Directors Note: All information as of March 31, 2019 (1) Percentage of portfolio NRA 5 (2) Based on common share price of $11.31 as of March 29, 2019
CIO T ARGETS L EADING “18 -H OUR C ITIES ” N ATION -L EADING O FFICE D EMAND D RIVERS (1) N EW S UPPLY B ELOW H ISTORICAL A VERAGES (2) % PROJECTED EMPLOYMENT % PROJECTED POPULATION CONSTRUCTION DELIVERIES IN CIO CURRENT MARKETS 1978 - 2018 GROWTH 2019 - 2024 GROWTH 2019 - 2024 50 6.9% 45 7.7% 40 Square Feet (in Millions) 35 30 3.7% 4.4% 25 2.8% 3.4% 20 AVG 15 10 5 - Gateway National CIO Gateway National CIO Markets Avg Markets Markets Avg Markets A TTRACTIVE 18-H OUR C ITY C HARACTERISTICS O UTSIZED R ETURN & G ROWTH P OTENTIAL ANNOUNCED POST-IPO PROJECTED ACQUISITION CAP RATES (3) ✓ High-quality urban living experience in amenitized setting 8.3% ✓ Live, work, play environments; attractive to millennials 7.6% 7.5% 7.3% 7.2% 7.1% 6.8% ✓ Diverse employment bases with national and international employers ✓ Educated workforces ✓ Low-cost centers for businesses to operate ✓ Sound transportation infrastructure with lower congestion ✓ Strong and stable demand generators such as state capitals or university proximity 2014 2015 2016 2017 2018 2019 Avg. YTD (1) Source: SNL Financial, as of May 1, 2019. Gateway markets represent New York, NY, Boston, MA, Chicago, IL, Los Angeles, CA, San Francisco, CA and Washington, D.C. (2) Source: CoStar Property. Construction deliveries represent Class A&B office building deliveries over 50,000 SF in CIO current markets 6 (3) 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
T RENDS F AVORING CIO 18-H OUR C ITIES T OP 2019 “M ARKETS TO W ATCH ” B Y ULI AND P W C D OMESTIC N ET M IGRATION T O 18-H OUR C ITIES Top 10 markets for overall real estate prospects include nine 18-hour cities (1) Graphic depicts net migration (people per year) into CIO markets (2) 1. Dallas/Fort Worth, TX +64k 2. Brooklyn, NY +30k 3. Raleigh/Durham, NC 4. Orlando, FL 5. Nashville, TN BLUE represents 6. Austin, TX CIO market +36k 7. Boston, MA 8. Denver, CO +20k +88k 9. Charlotte, NC +146k 10. Tampa/St. Petersburg, FL +56k +55k Scottsdale, AZ Uptown Dallas, TX (1) Emerging Trends in Real Estate 2019 published by Urban Land Institute and PricewaterhouseCoopers (2) Based on population change from July 2016 to July 2017 as measured by the US Census Bureau 7
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