City Office REIT (NYSE: CIO) reported Q2 EPS of ($0.03), in-line with the analyst estimate of ($0.03). Revenue for the quarter came in at $39.62 million versus the consensus estimate of $39.61 million.

Second Quarter Highlights

• GAAP net loss attributable to common stockholders was approximately $1.4 million, or ($0.03) per fully diluted share;
• Core FFO was approximately $14.1 million, or $0.29 per fully diluted share;
• AFFO was approximately $6.6 million, or $0.14 per fully diluted share;
• To date, collected over 99% of second quarter contractual base rent;
• Same Store Cash NOI increased 2.3% as compared to the second quarter of 2019;
• In-place occupancy closed the quarter at 91.9%;
• Executed approximately 326,000 square feet of new and renewal leases during the quarter;
• Including repurchases subsequent to quarter end, completed the full $100 million share repurchase program. In total, 11,363,851 shares were repurchased at an average gross price of $8.80 per share;
• Declared a second quarter dividend of $0.15 per share of common stock, paid on July 24, 2020; and
• Declared a second quarter dividend of $0.4140625 per share of Series A Preferred Stock, paid on July 24, 2020.

“We continue to execute on the proactive strategic initiatives that we have put in place to optimally position ourselves in response to COVID-19,” commented James Farrar, the Company’s Chief Executive Officer. “Collections have been strong with over 99% of base rental revenue collected to date for the second quarter. We continue to focus on operations and renewal leasing. Subsequent to quarter end, we executed a major lease renewal and expansion with a life science tenant at our Sorrento Mesa property in San Diego. In total, this transaction includes approximately 136,000 square feet of space and will be an important driver of incremental cash flow and value creation for the Company. Upon full occupancy occurring in 2021, these lease amendments will generate approximately $2.8 million of incremental base rental revenue per year as compared to the expiring rates.”

“As a result of the strong performance to date, we have increased our 2020 guidance metrics. However, we remain cautious about the continued economic impact of the pandemic and the effect it will have on our operations and tenants. We intend to continue to operate with lower leverage levels and in a conservative manner to protect long term value for our shareholders.”

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