City Office REIT Inc (NYSE: CIO), a real estate company backed by Canadian private equity firm Second City Capital Partners, has completed its previously announced initial public offering, raising $82.3 million. Jamie Farrar, Second City managing director, told peHUB Canada that the firm retains around 39% post-IPO ownership in the company, which is focused on U.S.-based high-quality office properties. Farrar, who is also City Office REIT’s CEO, also announced a board of directors’ declaration of a second quarter dividend of $0.183, which accounts for part of the time the company has been public.
City Office REIT Declares Second Quarter Dividend
VANCOUVER, May 12, 2014 /PRNewswire/ — City Office REIT, Inc. (NYSE: CIO), a real estate company focused on the acquisition, ownership and management of high quality office properties in targeted markets across the United States, announced today that its Board of Directors declared a second quarter dividend of $0.183, payable on July 17, 2014 to all stockholders of record as of the close of business on July 3, 2014. The dividend payment has been pro-rated for the portion of the second quarter that City Office REIT has been in existence as a public company. On an annualized basis, this dividend rate equates to $0.940 per share, or an annual distribution yield of 7.5% based on the initial public offering pricing of $12.50 per share for the common stock of City Office REIT.
James Farrar, Chief Executive Officer of City Office REIT, stated, “The Board of Directors are pleased to declare our inaugural dividend. This dividend is the initial dividend following completion of City Office REIT’s initial public offering. We believe that our portfolio of well-located properties provides both stable and predictable cash flow and exposure to attractive real estate markets. We are excited about the opportunities to grow City Office REIT and benefit our stockholders.”
“In the future, City Office REIT anticipates that the declaration and timing of quarterly dividends, if any, and the announcement of any such dividends will be normalized to correspond with the middle of the last month of each of City Office REIT’s fiscal quarters.”
About City Office REIT, Inc.
City Office REIT, Inc. is a real estate company focused on owning high-quality office properties in attractive markets primarily in the Southern and Western United States. City Office REIT owns or has an interest in 1.85 million square feet of office properties as of January 1, 2014. Additional information about City Office REIT is available on the company’s website at www.cityofficereit.com. The Company intends to elect to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
This press release contains “forward looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements that are not statements of historical facts are, or may be deemed to be, forward looking statements. Forward looking statements reflect our current expectations concerning future results, objectives, plans and goals, and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause future results, performance or achievements to differ. These risks, uncertainties and other factors include factors described in our news releases and filings with the Securities and Exchange Commission. The Company does not have any obligation to publicly update any forward looking statements to reflect subsequent events or circumstances.
City Office REIT, Inc.
SOURCE City Office REIT, Inc.
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