Company: CIO
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-023714
Chunk: 43

Company: City Office REIT, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1A
Chunk 43
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SUMMARY

Risks Related to Our Business and Our Properties

•There are inherent risks associated with real estate investments and with the real estate industry, each of which could have an adverse impact on our financial performance and the value of our properties.

•Significant competition may decrease or prevent increases in our properties’ occupancy and rental rates and may reduce our investment opportunities.

•Real estate is a competitive business and that competition may adversely impact us.

•We may be unable to renew expiring leases or re-lease vacant space on a timely basis or on attractive terms.

•We are dependent on our key personnel and the loss of such key personnel could materially adversely effect our business.

•A decrease in demand for office space in our markets may have a material adverse effect on our financial condition and results of operations.

•Failure by any major tenant to make rental payments to us, because of a deterioration of its financial condition, a termination of its lease, a non-renewal of its lease or otherwise, could have a material adverse effect on our results of operations.

•Systemic changes in the demand for office real estate are the result of many factors, including historical or possible future public health events. The change in tenant behavior resulting from the work-from-home trend has been and may continue to be significant, and a future pandemic or epidemic outbreak could materially and adversely affect our financial condition, results of operations, cash flow, liquidity and performance and that of our tenants.

•We may be unable to secure funds for future tenant or other capital improvements or payment of leasing commissions.

•We may be required to, and currently make, rent or other concessions and significant capital expenditures to improve our properties in order to retain and attract tenants.

•We may not be able to obtain additional capital to further our business objectives.

•We have a substantial amount of indebtedness outstanding which may affect our ability to pay distributions to our stockholders, may expose us to interest rate fluctuation risk and may expose us to the risk of default under our debt obligations.

•Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to our stockholders.

•Failure of the U.S. federal government to manage its fiscal matters or to raise or further suspend the debt ceiling, and changes in the amount of federal debt, may negatively impact the economic environment and adversely impact our results of operations.

•We may engage in hedging transactions, which can limit our gains and increase exposure to losses.

•Economic conditions and global events may