Dividend sustainability appears precarious as the payout ratio reached 0.87 in 2025Q3, while the FFO/NI ratio of -3.50 highlights the disconnect between GAAP earnings and actual cash generation.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 47.59M | 58.86M | 57.22M | 106.68M | 73.22M | 59.92M | 49.5M | 42.19M | 36.55M | 19.15M | 14.16M | 7.79M | 7.23M | 5.38M | 1.15M |
| Operating CF Growth % | -68.4% | 2.87% | -46.36% | 45.69% | 22.19% | 21.06% | 17.33% | 15.41% | 90.91% | 35.19% | 81.88% | 7.7% | 34.51% | 368.67% | - |
| Operating CF / Revenue % | 29.06% | 34.4% | 31.95% | 59.11% | 44.64% | 37.26% | 31.67% | 32.58% | 34.33% | 26.42% | 25.73% | 21.11% | 35.28% | 46.67% | 12.5% |
| Net Income | -121.55M | -17.13M | -2.04M | 16.99M | 485.28M | 5.13M | 2.44M | 38.17M | 5.76M | -843K | -6.59M | -5.01M | -4.13M | -1.59M | -669.59K |
| Depreciation & Amortization | 35.5M | 59.32M | 62.99M | 62.57M | 57.32M | 60.37M | 59.16M | 52.17M | 41.26M | 30.48M | 21.97M | 15.27M | 8.3M | 4.23M | 3.13M |
| Stock-Based Compensation | 2.84M | 4.32M | 4.09M | 3.88M | 2.64M | 2.33M | 1.74M | 1.42M | 1.67M | 2.44M | 1.91M | 1.09M | 0 | 0 | 0 |
| Other Non-Cash Items | 105.16M | 10.68M | -5.21M | 29.27M | 1.11M | -2.08M | -3.94M | -48.15M | -10.46M | -10.49M | -1.22M | -2.47M | 3.14M | -1.14M | -189.42K |
| Working Capital Changes | -195K | 1.67M | -2.62M | -6.03M | 3.52M | -4.48M | -6.5M | -1.6M | -1.65M | -4.33M | -4.51M | -1.99M | -75K | 3.88M | -1.13M |
| Cash from Investing | 225.22M | -40.29M | -41.34M | -47.05M | -17.38M | -27.8M | -81.92M | -197.31M | -243.3M | -216.24M | -175.47M | -94.58M | -75.11M | -17.11M | -9.12M |
| Acquisitions (Net) | 0 | 0 | 0 | 170K | 286K | 52K | 112K | -843K | 0 | -246.43M | 0 | 0 | -71.31M | 0 | -6.04M |
| Purchase of Investments | 0 | 0 | 0 | -37.48M | -650.19M | -26.35M | -124.36M | -278.1M | -264.25M | -9.5M | -176.34M | 0 | -71.31M | 0 | -6.04M |
| Sale of Investments | 0 | 0 | 0 | 46.88M | 641M | 6.34M | 46.36M | 84.84M | 16.99M | 42.98M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 225.22M | -40.29M | -41.34M | -47.05M | -286K | -52K | -112K | -197.31M | 14.19M | 41.45M | -3.22M | -859K | 102.75K | -13.47M | 5.34M |
| Cash from Financing | -276.56M | -28.01M | -16.75M | -57.63M | -59.53M | -73.69M | 86.8M | 153.25M | 212.11M | 203.43M | 134.58M | 114.53M | 71.9M | 13.37M | 7.43M |
| Dividends Paid | -23.52M | -23.46M | -31.34M | -41.37M | -33.51M | -41.18M | -48.16M | -42.16M | -36.26M | -20.84M | -14.4M | -6.13M | -1.5M | -13.77M | -219.48K |
| Common Dividends | -23.52M | -23.46M | -31.34M | -41.37M | -33.51M | -41.18M | -48.16M | -42.16M | -36.26M | -20.84M | -14.4M | -6.13M | -1.5M | -13.77M | -219.48K |
| Debt Issuance (Net) | -2M | -1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -31K | 0 | -1.64M | -50.08M | -216K | -100.36M | 0 | 0 | 0 | 0 | 0 | -6.06M | 0 | 0 | 0 |
| Other Financing | -1.5M | -1.99M | -2.93M | -1.41M | -1.07M | -819K | -2.32M | -4.42M | -8.14M | -885K | -5.74M | -39.45M | -5.27M | 826K | 6.64M |
| Net Change in Cash | -3.75M | -9.43M | -870K | 2M | -3.69M | -41.57M | 54.38M | -1.87M | 5.36M | 21.51M | -26.72M | 27.73M | 4.02M | 1.64M | -543.52K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 15.18M | 0 | 0 | 0 | 1.47M | 0 |
| Cash at Beginning | 34.5M | 43.39M | 44.26M | 42.27M | 45.95M | 87.52M | 33.15M | 35.01M | 29.65M | 8.14M | 34.86M | 7.13M | 3.11M | 1.47M | 2.01M |
| Cash at End | 39.28M | 33.96M | 43.39M | 44.26M | 42.27M | 45.95M | 87.52M | 33.15M | 35.01M | 29.65M | 8.14M | 34.86M | 7.13M | 3.11M | 1.47M |
| Free Cash Flow | 47.59M | 58.86M | 57.22M | 97.11M | 65.03M | 52.13M | 45.57M | 38.14M | -220.94M | -238.54M | -158.09M | -85.93M | 3.34M | 1.73M | -1.23M |
| FCF Growth % | -17.52% | 2.87% | -41.08% | 49.33% | 24.74% | 14.39% | 19.49% | 117.26% | 7.38% | -50.89% | -83.97% | -2676.66% | 92.65% | 240.45% | - |
| FCF / Revenue % | 29.06% | 34.4% | 31.95% | 53.81% | 39.64% | 32.41% | 29.16% | 29.45% | -207.48% | -329.2% | -287.17% | -232.91% | 16.28% | 15.03% | -13.44% |
Dividend coverage and liquidity
As reported in quarterly financial statements, the wide variance between GAAP operating cash flow and FFO, exemplified by the -3.50 FFO/NI ratio in 2025Q3, suggests that non-cash items and accounting adjustments are significantly obscuring the underlying cash-generating capacity of the company's office portfolio.
The persistent disconnect between GAAP operating cash flow and FFO indicates that investors should exercise caution when relying on headline earnings metrics. This volatility suggests that the company's core operating performance is subject to significant accounting noise, which may mask the true cash-generating potential of its secondary market assets.
Based on the provided financial data, the dividend payout ratio reached 0.87 in 2025Q3, indicating that the company is distributing a substantial portion of its available cash flow, which leaves a narrow margin for error in an environment of declining revenue and rising operational costs.
The trend of dividend payout ratios fluctuating near or above historical norms suggests that the current distribution policy may be unsustainable if cash flow continues to erode. Investors should monitor whether the company can maintain these payouts without relying on external financing or asset sales to bridge the gap.
According to recent SEC filings, the company's consistent GAAP net losses, including the $105.4 million loss in 2025Q2, highlight how heavy non-cash depreciation charges distort the perceived profitability of the REIT, necessitating a focus on FFO to understand the actual cash available for debt service and distributions.
The reliance on FFO as a primary metric is essential given the significant GAAP net losses that appear to be driven by non-cash accounting charges rather than immediate operational failure. However, the persistence of these losses warrants further investigation into whether the underlying assets are truly generating sufficient cash to justify their carrying values.
As indicated by the historical data, the cessation of reported maintenance capital expenditures in recent quarters may suggest that the company is deferring necessary property improvements, which could lead to future cash flow volatility as the portfolio ages and requires significant reinvestment to remain competitive.
The absence of reported maintenance capital expenditures in recent periods is concerning and may imply that the company is under-investing in its properties to preserve short-term cash. This strategy appears risky, as it may lead to a loss of pricing power and increased vacancy rates if the assets are not maintained to institutional standards.
Quick answers to the most common questions about buying CIO stock.
City Office REIT, Inc. (CIO) generated $58.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
City Office REIT, Inc. (CIO) generated $58.9M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
City Office REIT, Inc. (CIO) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, City Office REIT, Inc. (CIO) returned $23.5M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.