City Office REIT (CIO) Lowers Quarterly Dividend 36.2% to $0.15; 8.3% Yield

City Office REIT (NYSE: CIO) declared a quarterly dividend of $0.15 per share, or $0.6 annualized. This is a 36.2% decrease from the prior dividend of $0.235.

The dividend will be payable on April 24, 2020, to stockholders of record on April 9, 2020, with an ex-dividend date of April 8, 2020.

The annual yield on the dividend is 8.3 percent.

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City Office REIT, Inc. (NYSE: CIO) (“City Office” or the “Company”) announced today that its Board of Directors has authorized a quarterly dividend amount of $0.15 per share of common stock and common unit of partnership interest for the first quarter of 2020. Additionally, the Board of Directors authorized a regular quarterly dividend of $0.4140625 per share of the Company’s 6.625% Series A Cumulative Redeemable Preferred Stock. The dividends will be payable on April 24, 2020 to all stockholders and operating partnership unitholders of record as of the close of business on April 9, 2020.

As of March 24, 2020, the Company has over $140 million in unrestricted cash and cash equivalents and over $90 million of further availability under its unsecured credit facility. The Company also announced that it has paused its acquisition activity and now expects that it will not acquire any properties in 2020. Instead, the Company intends to allocate capital to the previously announced $100 million share repurchase program and to continue to operate with lower leverage.

“City Office has diversified and high-quality tenants with strong credit and low exposure to the industries currently most impacted by COVID-19,” commented James Farrar, the Company’s Chief Executive Officer. “However, given the uncertain operating environment and the potential for an elongated economic recovery, we are taking steps to optimally position ourselves. The Company intends to operate with lower leverage, greater liquidity and position ourselves for healthy long-term cash flow growth. The adjusted common stock dividend has been established at a level we believe will be defensive under these economic conditions and help to achieve these goals. Further, we believe that it is in the best interest of shareholders to allocate some of our capital to the recently commenced common stock buy back program given the discounted valuation of our stock.”

For a dividend history and other dividend-related data on City Office REIT (CIO) click here.

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