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

Company: City Office REIT, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 15
Chunk 25
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 income with respect to the 190 Office Center property on the deconsolidation of the entity on May 15, 2023. Refer to Note 4 for further details. The Company recognized interest income of $0.6 million and variable lease payments of $0.2 million for the sales-type lease at the Lake Vista Pointe property for the year ended December 31, 2022. Future minimum lease payments to be received by the Company as of December 31, 2024 under non-cancellable operating leases for the next five years and thereafter are as follows (in thousands):  

         2025
          
         $
         127,005

         2026

         120,679

         2027

         102,956

         2028

         87,582

         2029

         66,703

         Thereafter

         137,258

         $
         642,183

        The Company’s leases may include various provisions such as scheduled rent increases, renewal options and termination options. The majority of the Company’s leases include defined rent increases rather than variable payments based on an index or unknown rate. Lessee Accounting As a lessee, the Company has ground and office leases which are classified as operating and financing leases. As of December 31, 2024, these leases had remaining terms of two to 64 years and a weighted average remaining lease term of 50 years.  Right-of-use assets and lease liabilities have been included within other assets and other liabilities on the Company’s consolidated balance sheets as follows (in thousands): 

         December 31, 2024

         December 31, 2023

         Right-of-use asset – operating leases
          
         $
         10,101

         $
         12,564

         Lease liability – operating leases
          
         $
         8,286

         $
         8,550

         Right-of-use asset – financing leases
          
         $
         9,593

         $
         9,820

         Lease liability – financing leases
          
         $
         1,637

         $
         1,551

        Lease liabilities are measured at the commencement date based on the present value of future lease payments. One of the Company’s operating ground leases includes rental payment increases over the lease term based on increases in the Consumer Price Index (“CPI”). Changes in the