City Office REITNYSE: CIO

HONG KONG and SHANGHAI , June 4, 2024 /PRNewswire/ -- China's macroeconomy and capital market development remains steady this year, and Ping An will maintain a balanced "double barbell" asset allocation to ensure stable returns, said Benjamin Deng, Chief Investment Officer of Ping An Insurance (Group) Company of China, Ltd. (hereafter "Ping An", the "Company" or the "Group", HKEX: 2318 / 82318; SSE: 601318).

Chris Wyllie, the Chief Investment Officer at Connor Broadley, talks about the potential for investing in copper and the overall industry.

SECAUCUS, N.J., May 16, 2024 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a top provider of diagnostic information services, revealed today that Robert (Rob) B. was chosen by its Board of Directors.

City Office REIT is offering a dividend yield of 8.4%, which is backed by its 2024 core FFO guidance. The REIT is currently trading at a low multiple of 4.12x to the midpoint of its guidance. I have been purchasing the preferred shares, which have decreased in value this year and now provide a yield of 9.2% on my initial investment.

Some people make decent money dumpster diving, as seen in a Business Insider article about a couple who make up to $3,000 a month selling their trash treasures. The office REIT space is currently under tremendous pressure, reflected in the stock prices of three high-risk office plays: City Office REIT, Orion Office, and Net Lease Office Properties. These stocks offer value for investors willing to take on elevated risks, but caution is warranted due to the challenges facing the office real estate sector.

City Office REIT's preferreds are a strong investment with a 9.7% yield on cost and the ability to cover annual preferred payments with core FFO generated in a single quarter. The REIT's lease expirations and debt maturities are well managed, reducing credit risk for the preferreds. The preferreds are currently trading at a discount to their liquidation value and stand to benefit from future Fed rate cuts.

City Office REIT (CIO) came out with quarterly funds from operations (FFO) of $0.33 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.38 per share a year ago.

City Office REIT is trading at a nearly 70% discount to book value per share at the end of its most recent quarter. The Sun Belt office-focused REIT is currently paying out a 7.3% dividend yield after a series of cuts over the last few years. The quarterly distribution was 150% covered by adjusted FFO which dipped 3 cents year-over-year.

Since the publication of my initial buy article City Office REIT's preferred shares have performed slightly better than CIO's equity, registering a more balanced ride and a 7% total return. The company's ample liquidity, strong cash retention, and improving fundamentals were the initial factors behind the buy rating for the preferred shares. The most recent Q3 results entail mixed signals. The underlying FFO and occupancy ratio declined and the struggles with WeWork could inflict further damage down the road.