We consider the NOI and adjusted NOI to be appropriate complementary performance measures to net income, as we believe they provide useful insights to understand the core business and operating performance of our portfolio. We believe that the comparable store NOI and the comparable store species NOI are an important benchmark as they allow for comparison of the operating results of stabilized properties located and operated throughout the applicable period and thus eliminate fluctuations caused by acquisitions, divestitures or repositioning during these periods. Other REITs may charge the NOI of the same store differently and the NOI of cash from the same store and our calculation should not be compared to that of other REITs. However, given that FFO excludes depreciation and does not recognise changes in the value of the entity`s properties resulting from the use or market conditions, nor the amount of investments and lease fees necessary to maintain the operational performance of the entity`s assets, all of which have a real economic impact and could have a material impact on the entity`s results of operations, the usefulness of FFO as a measure of business performance is limited. In addition, other Stock REITs may not calculate the FFO as defined by nareit as the Company does, and therefore the Company`s FFO may not be comparable to the FFO of such other REITs. Therefore, FFO should only be considered as a complement to net profit as a measure of the entity`s performance. The Company`s guidance is based on current plans and assumptions and is subject to the risks and uncertainties further described in the Company`s filings with the U.S. Securities and Exchange Commission. This outlook reflects management`s assessment of current and future market conditions, including assumptions such as the pace of future acquisitions and divestitures, lease rates, occupancy rates, leasing activities, abusive rents, general operating and administrative expenses, weighted average of outstanding diluted shares, and interest rates. The company reminds investors that the impact of the COVID-19 pandemic is uncertain and impossible to predict.
See “Forward-Looking Statements” below. During the quarter, the Company completed the acquisition of two properties in the Sorrento Mesa submarket in San Diego, California, valued at $43.3 million. The properties are adjacent to sorrento Mesa`s existing portfolio in the field of life sciences. The acquisition consists of two office buildings located on valuable infill development land. The acquisition complements the development potential of the company`s investments in Sorrento Mesa and creates an attractive portfolio of cash flow assets in the life sciences sector and more than one million square feet of potential life sciences development density. This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release, including those that express a belief, expectation or intent, as well as those that are not historical facts, are forward-looking statements within the meaning of federal securities laws and are based as such on the Company`s current beliefs regarding future results and timing of events. Forward-looking statements are generally identified by the use of forward-looking words such as “approximately”, “anticipate”, “assume”, “believe”, “budget”, “consider”, “continue”, “could”, “estimate”, “expect”, “future”, “hypothetical”, “intend”, “may”, “outlook”, “plan”, “potential”, “predict”, “project”, “seek”, “should”, “seek”, “want” or other similar words or expressions. There can be no assurance that actual forward-looking statements, including projected capital resources, projected profitability and portfolio performance, estimates or developments affecting the Company, will be consistent with the Company`s expectations. The forward-looking statements contained in this press release are based on management`s beliefs, assumptions and information currently available to it. “The assets for sale are not burdened by debt, so we can reallocate all proceeds to prime office buildings in some of the best markets in the country.
Our team has led our acquisition pipeline, which includes a number of incredible properties in high-growth markets. These goals include highly equipped locations, new and modern buildings, and long contractual lease terms with strong tenants. We expect the implementation of this strategy to expand our portfolio, significantly increase our earnings per share and generate predictable long-term cash flows. Based on our confidence in the reallocation of proceeds from the sale, we have accelerated the closing of the sale of the entire Sorrento Mesa transaction until December 2021. This is an exciting time of value creation and growth for our business and we look forward to providing updates in the coming quarters. City Office REIT, Inc. (“CIO”) is an internally managed real estate company focused on the acquisition, ownership and operation of high-quality office buildings located primarily in the southern and western metropolitan areas of the United States. The CIO`s strategy is to continue to grow through a combination of internal cash flow growth initiatives and a targeted acquisition strategy. City Office REIT, Inc., founded on November 26, 2013, is a real estate investment trust. The company focuses on the acquisition, ownership and operation of office buildings located primarily in the southern and western metropolitan areas of the United States.
The Company operates primarily through the City Office REIT Operating Partnership, L.P. (the “Operating Partnership”). The webcast will be available in the “Investor Relations” section of the Company`s website under www.cioreit.com. The conference call is available at 1-866-262-0919 for domestic callers and 1-412-902-4106 for international callers. VANCOUVER, Dec. 17, 2021 /PRNewswire/ — City Office REIT, Inc. (NYSE: CIO) (“City Office” or the “Company”) announced today that its Board of Directors has approved a 33.3% increase in the quarterly dividend from $0.15 to $0.20 per common share and common share of a partnership for the fourth quarter of 2021. Funds from Operations (“FFO”) – The National Association of Real Estate Investment Trusts (“NAREIT”) states that the FFO should represent net income or loss (calculated in accordance with GAAP) plus depreciation and amortization of deferred financing costs) and after adjusting for unconsolidated partnerships and joint ventures, gains or losses from the sale of real estate and impairments on property Real estate.
The Company uses FFO as an additional performance measure because it believes that FFO is beneficial to investors as a starting point for measuring the Company`s operational performance. We also believe that FFO, as a widely recognized measure of REIT performance, is used by investors as a basis for comparing the company`s operating performance with that of other REITs. .
