Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (72956)	6/16/2023 2:23:07 PM
From: E_K_S	Respond to of 78751

Re: CIO They have a fair amount of debt but at a 4.25% rate Remember CIO's market cap is only $220.5 million. BV is stated at $792 million I need to verify this but BARD provided me this info on CIO: As of March 31, 2023, City Office REIT Inc. (CIO) had total debt of $1.4 billion. This debt is structured as follows: $600 million of secured floating-rate notes due 2025 $400 million of unsecured floating-rate notes due 2027 $400 million of preferred equity due 2028 The secured floating-rate notes have a coupon rate of 4.25% and are secured by a first lien on CIO's assets. The unsecured floating-rate notes have a coupon rate of 5.25% and are not secured by any assets. The preferred equity has a dividend rate of 8.5% and is convertible into CIO common stock at a price of $10.00 per share. The debt is due as follows: The secured floating-rate notes are due in full on March 15, 2025.The unsecured floating-rate notes are due in full on March 15, 2027.The preferred equity is due in full on March 15, 2028.CIO's debt is rated BB- by Standard & Poor's and Fitch Ratings. This rating indicates that the debt is considered to be speculative and is subject to high credit risk. Here are some additional details about CIO's debt: The debt is used to finance CIO's acquisition of office properties. The debt is amortized over a period of 10 years. The debt has a prepayment penalty of 2%. Overall, CIO has a significant amount of debt. The debt is secured by CIO's assets and is rated below investment grade. This suggests that the debt is risky and could be difficult to repay if CIO experiences financial difficulties. --------------------------------------------------------------------- The average age of City Office REIT Inc. (CIO) real estate is 17 years. CIO owns 24 properties, with a total of 6.0 million square feet of office space. The majority of CIO's properties are located in Sun Belt markets, including Dallas, Denver, Orlando, Phoenix, Portland, Raleigh, San Diego, Seattle, and Tampa. In the past 5 years, CIO has made significant capital improvements to its properties, totaling $150 million. These improvements have included: Renovating lobbies and common areas Updating the mechanical and electrical systems Adding new amenities, such as fitness centers and conference rooms Constructing new buildings These capital improvements have helped to improve the quality of CIO's properties and attract new tenants. As a result, CIO's occupancy rate has increased from 87% in 2018 to 92% in 2023. Here are some of the specific capital improvements that CIO has made in the past 5 years: In 2018, CIO renovated the lobby and common areas at its 3000 McKinney office building in Dallas. The renovation included new flooring, lighting, and furniture. In 2019, CIO updated the mechanical and electrical systems at its 2000 Colorado office building in Denver. The upgrade included a new heating and cooling system, as well as a new electrical panel. In 2020, CIO added a new fitness center and conference room to its 1000 Las Vegas office building. The new amenities have helped to attract new tenants to the property. In 2021, CIO constructed a new office building in Phoenix. The building is LEED Gold certified and has a number of sustainable features, such as a green roof and a rainwater harvesting system. In 2022, CIO renovated the lobby and common areas at its 500 Seattle office building. The renovation included new flooring, lighting, and furniture. These capital improvements have helped to improve the quality of CIO's properties and attract new tenants. As a result, CIO's occupancy rate has increased from 87% in 2018 to 92% in 2023. ------------------------------------------------------------------------------------------ Will have to look at the Net Free Cash flow after debt payment but it is positive and may/could be growing