Company: CIO
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001193125-25-270904
Chunk: 15

Company: City Office REIT, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 15
---
 Company's common stockholders. On October 16, 2025, the Company’s common stockholders approved the Merger.

2. Summary of Significant Accounting Policies Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

3. Real Estate Investments Assets Held for SaleOn June 18, 2025, the Company entered into a purchase and sale agreement (the “Phoenix Sale Agreement”) to sell Block 23, Pima Center, 5090 N 40th St, SanTan, Papago Tech, The Quad, and Camelback Square (the “Phoenix Portfolio”) for $296.0 million, which excludes closing costs and credits. Upon classification as held for sale during the second quarter of 2025, the Company recognized an impairment of $102.2 million to lower the carrying amount of the Phoenix Portfolio to its estimated fair value less cost to sell. Refer to “Impairment of Real Estate” below. On August 15, 2025, the Company completed the sale of six of the seven office properties in the Phoenix Portfolio (the “First Phoenix Closing”). These six properties included Block 23; 5090 N 40th St; SanTan; Papago Tech; The Quad; and Camelback Square. The Company’s Pima Center property continues to be under contract at a $30.0 million gross sales price, and meets the criteria for classification as held for sale as of September 30, 2025. The sale of the Pima Center property is expected to close at a later date, subject to the Company (or its successor in interest) obtaining certain approvals related to the property’s ground lease.