Company: CIO
Filing Date: 2025-08-22
Form Type: PREM14A
Source: 0001193125-25-186443
Chunk: 86

Company: City Office REIT, Inc.
Filing Date: 2025-08-22
Form: PREM14A
Chunk 86
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 Common Share 
 Low                                   |      |     | High |       |
|:----------------------------------|:----|:--------------------------------------|-----:|:----|:-----|------:|
| Implied Cap Rate                  |     | $                                     | 5.01 |     | $    | 10.68 |
| 2025E FFO Multiple                |     |                                       | 5.63 |     |      |  9.71 |
| 2026E FFO Multiple                |     |                                       | 4.81 |     |      |  7.74 |
| 2025E AFFO Multiple               |     |                                       | 4.17 |     |      |  5.39 |
| 2026E AFFO Multiple               |     |                                       | 2.34 |     |      |  3.82 |
| Common Stock Merger Consideration |     |                                       | 7.00 |     |      |  7.00 |

Discounted Cash Flow Analysis.Raymond James analyzed the discounted present value of the Company’s projected unlevered free cash flows for the calendar years ending December 31, 2025 through 2030 on a standalone basis of approximately $23 million for the third and fourth quarters of 2025, approximately $36 million for 2026, approximately $39 million for 2027, approximately $39 million for 2028, approximately $26 million for 2029 and approximately $97 million for 2030. Raymond James used unlevered free cash flows, defined as earnings before interest, taxes, depreciation and amortization, less tenant improvements, less leasing commissions, less capital expenditures, plus tenant improvements, leasing commissions and capital expenditure escrow reimbursement. The discounted cash flow analysis was based on the Projections. Consistent with the periods included in the Projections, Raymond James used calendar year 2030 as the final year for the analysis and applied a range of terminal cap rates from 9.0% to 11.0% (which range was selected based on the professional judgment and experience of Raymond James), to calendar year 2030 unlevered free cash flow in order to derive a range of terminal values for the Company in 2030. The projected unlevered free cash flows and terminal values were discounted using rates ranging from 8.0% to 10.0%, which reflected the weighted average after-tax costof debt and equity capital associated with executing the Company’s