Company: CIO
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-023714
Chunk: 33

Company: City Office REIT, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 15
Chunk 33
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 which will be recognized over the next two years, with a weighted average period of approximately one year.

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 13. Segment InformationThe Company is a REIT focused on real estate investments and currently operates in one operating segment: Office Properties. As a group, the Company’s Chief Executive Officer, Chief Operating Officer and Chief Financial Officer have collectively been identified as the chief operating decision makers (“CODM”), as defined by GAAP. The CODM review financial information presented on a consolidated basis when making decisions. Additionally, the Company does not group its operations on a geographical basis for the purpose of measuring performance.The CODM uses both consolidated net income and net operating income (“NOI”) as the profit or loss measures to evaluate the performance of our operating segment and allocate resources. Refer to the accompanying consolidated statements of operations for the presentation of consolidated net income for the years ended December 31, 2024, 2023 and 2022. NOI is a measure which includes the revenues and certain expenses directly attributable to our office properties. NOI is defined as rental and other revenues less property operating expenses. NOI is used by the CODM to make operating decisions as we believe it provides information useful in understanding the core operations and operating performance of our portfolio. Total assets are not utilized by the CODM to assess performance.The following table presents segment NOI for the years ended December 31, 2024, 2023 and 2022 (in thousands): 

         Years Ended December 31,

         2024

         2023

         2022

         Rental and other revenues
          
         $
         171,126

         $
         179,096

         $
         180,485

         Property operating expenses

         69,460

         69,997

         67,739

         Segment net operating income
          
         $
         101,666

         $
         109,099

         $
         112,746

       Significant expenses that comprise property operating expenses within NOI primarily include building common area and maintenance expenses, insurance, property taxes, property management fees, as well as certain expenses that are not recoverable from tenants. Presented below is a reconciliation of the reportable segment NOI to the consolidated net income (in thousands): 

         Years Ended December 31,

         2024

         2023

         2022

         Segment net operating income
          
         $
         101,666

         $
         109,099