Company: CIO
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052437
Chunk: 38

Company: City Office REIT, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 38
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 budget, maintaining general and administrative expense ratio targets and enhancing service provider efficiency and execution. |

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| 2. | Share Performance and Liquidity Targets. The Compensation Committee believes that setting specific targets related to the total return performance of the Company’s common stock relative to the peer set is an appropriate measure of overall and corporate performance. These targets included one-year and five-year total return performance relative to office REITs and a comparison of historical valuation metrics for the Company with the goal of delivering higher valuation multiples over time. The Company also set targets for maintaining liquidity and refinancing certain property loans to preserve liquidity. |

| 3. | Financial Measure Targets. The Compensation Committee believes that establishing specific targets related to quantifiable financial measures derived from the annual business plan and strategic plan is an appropriate measure of corporate performance. These metrics included performance relating to core funds from operations (“Core FFO”), normalized per share FFO, portfolio NOI, dividend coverage and leverage targets, among others. |

| 4. | Acquisition and Divestiture Targets. The Compensation Committee believes that setting specific targets related to acquisition strategy, as well as capital recycling activities, is an appropriate measure of corporate performance. Such targets in 2024 included strategically positioning certain properties for disposition or value maximization, identifying opportunities to de-risk the portfolio and executing on opportunities to unlock property value. |

| 5. | Capital Markets, Sustainability and Investor Relations Targets. The Compensation Committee believes that setting specific targets related to maintaining strong capital markets relationships, enhancing corporate sustainability initiatives and promoting investor relations is an appropriate measure of corporate performance. Such targets in 2024 included investor relations outreach to enhance the shareholder base, strengthening relationships with banks and lending syndicates, improving corporate sustainability ratings through enhanced disclosure and the implementation of new policies and programs (in a cost-effective manner appropriate for a company of our size) and expanding the Company’s equity and enterprise value base over time. |

We use FFO, which NAREIT states should represent net income or loss (computed in accordance with U.S. generally accepted accounting principles) plus real estate related depreciation and amortization (excluding amortization of deferred financing costs) and after adjustments of unconsolidated partnerships and joint ventures, gains or losses on the sale of property and impairments to real estate, as a supplemental performance measure, because we believe that FFO is beneficial as a starting point in measuring the Company’s operational performance. We also believe that, as a widely recognized measure of the performance of REITs, FFO can be used as a