Company: CIO
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-023714
Chunk: 62

Company: City Office REIT, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 6
Chunk 62
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 ended December 31, 2024, from $70.0 million for the year ended December 31, 2023. The disposition of 190 Office Center in May 2023 and Cascade Station in June 2024 decreased property operating expenses by $1.2 million and $0.5 million, respectively. Offsetting these decreases, property operating expenses at Bloc 83 and Block 23 increased by $0.7 million and $0.3 million, respectively, primarily due to higher electricity costs and property taxes. The remaining properties’ property operating expenses were marginally higher in comparison to the prior period.General and Administrative. General and administrative expenses are comprised of public company reporting costs and the compensation of our employees and Board of Directors, as well as non-cash stock-based compensation expenses. General and administrative expenses increased $0.4 million, or 2%, to $15.2 million for the year ended December 31, 2024, from $14.8 million reported for the same period in 2023. General and administrative expenses increased due to marginally higher professional fees and stock-based compensation expense.Depreciation and Amortization. Depreciation and amortization decreased $3.7 million, or 6%, to $59.3 million for the year ended December 31, 2024, from $63.0 million reported for the same period in 2023. The dispositions of Cascade Station in June 2024 and 190 Office Center in May 2023 decreased depreciation and amortization expense by $0.9 million and $0.6 million, respectively. Depreciation also decreased by $1.6 million at Block 23 primarily as a result of a write-off taken in the prior year related to the WeWork departure. The remaining properties’ depreciation expenses were $0.6 million lower in comparison to the prior year period.Other Expense (Income) Interest Expense. Interest expense increased $1.1 million, or 4%, to $34.3 million for the year ended December 31, 2024, from $33.2 million for the year ended December 31, 2023. The increase was primarily attributable to higher interest rates. Net Loss/Gain on the Disposition of Real Estate Property. During the second quarter of 2024, the Company entered into an assignment in lieu of foreclosure agreement to transfer possession and control of the Cascade Station property to the lender as a result of an event of default as defined in the property’s loan