LONDON, UK / ACCESSWIRE / January 09, 2018 / Active-Investors has a free review on City Office REIT, Inc. (NYSE: CIO) following the Company's announcement that it will begin trading ex-dividend on January 10, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on January 09, 2017. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on CIO:
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Dividend Declared
On December 15, 2017, City Office REIT announced that its Board of Directors authorized a quarterly dividend of $0.235 per share of common stock and common unit of partnership interest for the fourth quarter of 2017. The dividends will be payable on January 25, 2018, to all stockholders and operating partnership unitholders of record as of the close of business on January 11, 2018.
City Office's indicated dividend represents a yield of 7.29%, which is substantially above the average dividend yield of 4.31% for the financial sector.
Dividend Insights
City Office has a dividend payout ratio of 98.9%, which means that the Company distributes approximately $0.99 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, City Office is forecasted to report earnings of $0.20 for the next year compared to the Company's annualized dividend of $0.94. One of the primary reasons for the difference between earnings and annualized dividend is that City Office REIT is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization to earnings and subtracting any gains on sales which then provides a better picture of any company's profitability and capacity to pay and to sustain dividends. For instance, for the quarter ended September 30, 2017, City Office REIT's GAAP net loss attributable to common stockholders was approximately $3.6 million, or $0.12 per fully diluted share, Core FFO was approximately $5.9 million, or $0.19 per fully diluted share, and AFFO was approximately $5.0 million, or $0.16 per fully diluted share. The FFO indicates that the Company should be able to comfortably cover its dividend payout.
As of September 30, 2017, City Office REIT had cash and cash equivalents of $18.90 million compared to $13.70 million available as of December 31, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for City Office
On December 21, 2017, City Office REIT announced the closing of its underwritten public offering of 5,750,000 shares of its common stock, including 750,000 shares pursuant to the full exercise of the underwriters' option, at a public offering price of $12.60 per share for total gross proceeds of $72.5 million.
The Company stated that it intends to use the net proceeds from the offering for the repayment of amounts outstanding under its secured credit facility and for general working capital purposes, including funding future acquisitions, capital expenditures, and investments.
About City Office REIT, Inc.
City Office REIT is an internally-managed real estate Company focused on acquiring, owning, and operating high-quality office properties located in leading markets in the Southern and Western United States. City Office REIT currently owns or has an interest in 5.2 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for US federal income tax purposes.
Stock Performance Snapshot
January 08, 2018 - At Monday's closing bell, City Office REIT's stock ended the trading session flat at $12.89.
Volume traded for the day: 231.46 thousand shares.
Stock performance in the previous six-month period – up 3.95%
After yesterday's close, City Office REIT's market cap was at $451.02 million.
The stock has a dividend yield of 7.29%.
The stock is part of the Financial sector, categorized under the REIT - Office industry. This sector was flat at the end of the session.
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