Company: CIO
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052437
Chunk: 39

Company: City Office REIT, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 39
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 basis to compare the Company’s operating performance to that of other REITs. We also believe Core FFO, calculated using FFO as defined by NAREIT and adjusting for certain other non-coreitems, such as deducting acquisition costs, loss on early extinguishment of debt, changes in the fair value of earn-outs, changes in the fair value of contingent consideration and the amortization of stock-based compensation, provides a useful metric in comparing operations between reporting periods and in assessing the sustainability of the Company’s ongoing operating performance. We define NOI as total rental and other revenues less property operating expenses. We consider NOI to be an appropriate supplemental performance measure to net income because we believe it provides information useful in understanding the core operations and operating performance of the Company’s portfolio. We believe that Same Store Cash NOI, calculated as the NOI attributable to the properties continuously owned and operated for the entirety of the reporting periods presented (excluding properties that were not stabilized during both of the applicable reporting periods), is an important measure of comparison, because it allows for comparison of operating results of stabilized properties owned and operated for the entirety of both applicable periods and therefore eliminates variations caused by acquisitions, dispositions or re-positioningsduring such periods. 29

The Compensation Committee established the following relative weightings for these Performance Objectives in 2024: Each Performance Objective is measured between 0-200%of the target weighting, with 100% established as target performance. The Compensation Committee believes that the 2024 Performance Objectives were established with the goal of promoting both short- and long-term stockholder value. In addition, the Compensation Committee believes that maintaining an ability to reward specific accomplishments outside of the Performance Objective criteria that generate incremental stockholder value is an important alignment tool. The Compensation Committee retains the ability to make adjustments in determining performance to reward special achievements or to account for negative factors. 2024 Performance Evaluation The Compensation Committee evaluated the Company’s actual performance against the 2024 Performance Objectives and formulated a recommendation to the Company’s Board of Directors. Key factors driving the Compensation Committee’s conclusions included, among other factors:

| 1. | Operational Targets. The Compensation Committee considered the active steps taken by the Company to best position its available spaces for leasing in the current office leasing environment. The Company’s spec suite program has been a success, with the Company having leased over 75% of the spec suites it has built since 2021. During 2024, the company completed or considerably progressed strategic renovations and capital projects at four properties, positioning them well