Company: CIO
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-023714
Chunk: 16

Company: City Office REIT, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 15
Chunk 16
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 Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which will enhance segment disclosures. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, with early adoption permitted. This standard must be applied retrospectively to all periods presented in the financial statements. The Company adopted ASU 2023-07 during the fourth quarter of 2024, which resulted in incremental disclosure in the notes to the consolidated financial statements for the year ended December 31, 2024.  Refer to Note 13.3. Rents Receivable, Net The Company’s rents receivable is comprised of the following components (in thousands):  

         December 31, 2024

         December 31, 2023

         Billed receivables
          
         $
         3,888

         $
         5,132

         Straight-line receivables (unbilled receivables)

         48,423

         48,322

         Total rents receivable
          
         $
         52,311

         $
         53,454

        As of December 31, 2024, the Company’s allowance for doubtful accounts was $0.3 million. As of December 31, 2023, the Company’s allowance for doubtful accounts was nominal. 4. Real Estate Investments Disposition of Real Estate PropertyCascade StationOn June 27, 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 non-recourse loan agreement. Given the terms of the assignment in lieu of foreclosure agreement, the Company assessed whether the entity holding the property should be reassessed for consolidation as a VIE in accordance with ASC 810 – Consolidation.Based on its analysis, the Company concluded that it is not the primary beneficiary of the VIE and therefore deconsolidated the property as of June 27, 2024. The Company deconsolidated the net carrying value of real estate assets of $17.9 million, the mortgage loan of $20.6 million, cash and restricted cash of $2.5 million and net current assets of $1.7 million. For the year ended December 31, 2024, the Company recognized a loss on deconsolidation of $1.