Company: CIO
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052437
Chunk: 40

Company: City Office REIT, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 40
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 for enhanced leasing. The Compensation Committee considered the increase in overall portfolio occupancy as compared to the prior year as well as specific leasing metrics achieved at various target properties, even with the headwinds of corporate downsizing. In 2024, the Company completed 430,000 square feet of new leases and 376,000 square feet of renewals. The Compensation Committee also evaluated the successful mitigation of the impact of the downsizing of one of the Company’s largest tenants during the year. The Company achieved positive Same Store Cash NOI growth of 0.1% and a 5.9% cash re-leasing spread during 2024. |

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| the third quartile of companies comprising the Dow Jones U.S. Real Estate Office Index. The Compensation Committee considered that general sentiment towards the office sector continues to negatively impact the Company’s earnings multiples. Further, the Company maintained significant liquidity throughout the year with cash and availability under its credit facility. Specifically, the Company successfully secured loan renewals on two properties and continues to retain excess potential liquidity with several of the Company’s properties unencumbered by debt. |

| 3. | Financial Measure Targets. The Compensation Committee considered performance relative to the detailed financial measure targets. Core FFO per share and portfolio NOI were negatively impacted in 2024 by the downsizing of a significant tenant. The Company successfully mitigated the impacts of the downsizing through partially backfilling the space and negotiating an extension with the tenant for a portion of its space subsequent to the initial downsizing. After revising the guidance that the Company provided to shareholders at the beginning of the year to account for the impact of that tenant, the Company ended 2024 with Core FFO per share and portfolio NOI within the revised guidance ranges. The Compensation Committee considered that the Company covered its common stock dividend with cash flow in the aggregate for the year. The Company also achieved its primary goals relative to leverage targets. The Compensation Committee also considered initiatives enacted by management to both enhance and preserve corporate value. |

| 5. | Capital Markets, Sustainability and Investor Relations Targets. The Compensation Committee considered performance relative to the detailed capital markets, corporate sustainability and investor relations targets. Conditions in the capital markets were challenging in 2024 but investor sentiment towards the office real estate sector has started to improve as fundamentals and leasing stabilized in 2024. The Company focused on maintaining and strengthening existing capital markets and lending relationships, as well as continued investor outreach. Further, the Company continued to focus on its corporate sustainability-related disclosures, initiatives