CIO - Earnings call transcript Q4 2018

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Operator

Good morning, and welcome to the City Office REIT, Incorporated Fourth Quarter 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. [Operator Instructions] It is now my pleasure to introduce you to Tony Maretic, the company's Chief Financial Officer, Treasurer and Corporate Secretary. Thank you, Mr. Maretic.

begin. may You

Tony Maretic

Good morning.

supplemental like may statements where at fourth expectations, discussed both you press and would discuss fact, direct to quarter the include I that earnings release you today directly The forward-looking or non-GAAP will to can the a on website reconciliation begin, today supplemental measures are cityofficereit.com, our constitute we their earnings be based comparable release GAAP the of Before and the package. that beliefs package information download or within made most to financial that not measures. meaning Certain securities federal statements company's historical of laws. our

we expectations in statements in in some our that that that operational the undertakes assurance and turn could forward-looking after be I cause our Farrar, actual results may obligation Officer, statements this Executive call that achieved. the statements can to quarter's these to update SEC made believes expectations Although differences filings will any assumptions, financial forward-looking quarter factors see third The such course the disclaimer I over give no will results. Jamie call. of review reflected statements now of the Chief company discusses the company highlights. and company's the forward-looking with will between Jamie. be no are these release forward-looking earnings Please our reasonable based material upon for

Jamie Farrar

against path goals We that achieve reviewing the key sales we and and number of targets helped Good a measured us how XXXX on XXXX XXXX. morning. to same-store set transactions those our and many for promising significant concluded I acquisition, had a occupancy call expectations. would stated us with this up the for like year of start for by we

us with sufficient just our year REIT stocks providing to we take to advantage raised we in dry in XXXX, had volatile focus. our business were throughout quite the year, and equity, of discipline opportunities operate the continue While powder Beginning markets.

third the new we exceed a through for target well-timed price million of ATM As date. our our set capital a to our program of best additional allow $XXX equity capital capital-raising quarter, efficient and raised us bar This during in our history million to heated pipeline at XXXX. cost of acquisitions these and to up that capital patient slower acquisition properties million shortly. year year, ultimately of This discuss remain in highest the being any Despite great cities. uncovered and $XXX our our I'll across start to volume deployment acquisitions after in the more Company's we detail XX-hour is of sought the $XXX

at and ended at occupancy into XX.X% back in if Another of larger XXXX which This the increase XXXX. exclude was increasing our start or on occupancy for quarter, cash XXXX substantial began minutes. and our the in of expect new of our occupancy portfolio longer year to Park will targets us results few a of leases an number and Tampa. lease-up NOI that XXX,XXX XXXX the portfolio of Collection we produced activity achieved Tower of space. gains and numbers These at term strong square helped detail during fourth included more two a XXXX. blocks FRP you basis. is same-store these This a XXXX. through in the asset positive all XX.X% primarily of at we growth leases some our feet filling provide NOI Combined, sold achieve in over key in Tony a properties growth returning We that we cash our back over expect target same-store and the XX.X% Orlando accelerate will

We occupancy, Tampa. Park in a program take leased not the six value-add more great to property of and XX% like location. in a the of last the now was advantage as million have $XX in at to completed depth leases update including our increase I'd on yet signed quarters. Tower over Park XX.X% its Next, optimally downtown provide renovation Tower positioned year-end

XX new leases our completed transformed. property building has November functionality With the and income. net significantly of in increased the and have been the a image We since and acquisition of renovated modernize lobby exterior, operating building amenities, XXXX enhanced

We rental throughout rates and momentum expect continue leasing to achieve higher to XXXX.

occurred achieves located one the and renovation. a highest grossing portfolio. is locations of million our we Camelback pocket call, $XXX located of Square the Camelback best frontage. purchase Camelback property closed intersection undergoing is million Scottsdale which Scottsdale earnings fifth quarter. Turning we the investment now walkable In total, This in to and is for our dense entire Oldtown directly this Scottsdale million. since a contract. Square, submarket newly our some has one premier market represents $XXX from in $XX.X reported with amenities. of a of across have Oldtown schedule December, have Road transactions announced specific our use The shopping the U.S. of four under that currently acquisitions last properties Fashion Square at on target Phoenix that is discussed in the over acquired with contains last of the ahead acquisitions we of world-class centers mixed property In feet the Further, of X,XXX

is renovation. rates will Arizona. leased year a the the end presents XX% you us significantly to are be familiar of one tenant property cash was in dynamic of with our Mastro's Camelback and City steakhouses opportunity XX% top place tremendous rates with increased and at post This Hall flow. below Some a expected at Square in rental Steakhouse, approximately which

to add focus will believe core our core or urban generally for small in of AAA continue portfolio that returns time, plus locations. While we properties, on higher generate we shareholders our value over a particularly component in

rental the Camelback into occupancy, drive iteration a this and office we've executed be successfully Most elevate suites. tenants buildings our recently will activate in to limited signage, latest services represents Oldtown spaces rates common add amenities, component add Tampa of out property substantial Tower and curb with Square the have more planned and convert technology in value courtyard the in of and We programs past. renovation the the portfolio. office and To Park Square even the will creative areas, sub desirable improve cover that of supply from professional appeal Camelback traditional for in stand market. and

renovated base. the expected approximately will renovation upfront uses assumes expect yield but year the occupancy, the X%. to This the to low of stabilized full compares the X.X% We conservatively property rents cap initial one rate and in-place on exceed asset costs in which

demand affluent Square for million to office tier property the and of to contiguous $X.X our in our offers known to half company portion acquired in million. in benefits and the presence, from in I-X, acquisition also for submarket. growing through rate sharing Within buildings. multifamily through is our residential of through as positioned acquisition strong you. on a the site. cap healthcare with forward an its environment designated It control Also year, upside the of one XXX% about site, development connectivity acquire has Orlando, residential. valuable employment excited The development to is a competing excellent half for submarket leased is Circle were us is amenitized base. Mary uniquely strong of already strategic management building potentially to Northwest site Approximately Orlando mixed thoroughfare. a in XXXX December, multifamily Point Camelback the site completed the Denver for divest and the Mary has site XX-acre December, services office the Mary, use progress Florida Further northwest which are potential Lake of designated the Denver the we We attracted X.X%. capitalize to to and The land the main portion potential expected it's office build-to-suit $XX.X and at uses, other office provider. Lake of strong look We've use of top The market submarket commenced including for this interest of We developers. Greenwood Boulevard a the Lake mixed process the

three at for of Next on Canyon rate. building February in we Eastside/Bothell Park, million cap Seattle a X.X% submarket campus XX, $XX a acquired the

XXXX life, is and And improvements publicly existing X% property. markets. have Canyon many pursued for Oregon. other customary Portland opportunities to leased waived Seattle property closing lower also cap Portland, committing Park is educated In there to the market this strong Fortune years. its With a historical is the arise. and Park location Seattle expected economy second and assumption its annual new average conditions workforce, flow the our on We'll at XXX% XX is conditions. high expect own acquisition Their provide property XXX well We've approximately we the our $XX.X the of cash on officially purchase call. in close planned to well further access million growth we quality capital traded for recent was and for rate a to step on rate diversified X.X% and expect immediate to nonrefundable and a Way further total significant and CBD superior by the average over The made making under of is XXXX quarter, one enhances an ups. economic this as acquisitions biotech property and The to past and our attractive is finally our prospects and acquisition the Airport of the of this loan earnings submarket anchored a diligence of us, through leased set opportunities next While grow at a property long-term rent population on last companies, than cap is extends five Canyon office lease to tenant deposit to leading due our we're and in a The year features provides company. contract International details existing Portland high-end X.X% subject during our Airport. X%. selectively

Point to In all real compelling returns. before the estate successfully are our we're similar cash and with However, Camelback with located have increase shareholders executed confident value-add be exceptionally tremendous well that particular, acquisitions We've rewarded. and Square strategies will flow. opportunities our Circle Land

will are properties lower flow stabilized. blended cash the while near-term the rate impact being cap However,

recorded million our quarter an $XX Plaza In concluded combined February, the its strategic the track a was after terms loss assets Plaza closed we in we property of divestitures contracted four we second record approximately gains impairment to over generated including in Plaza Denver best the asset XX evaluating the including fourth alternative remains smallest value in of and elsewhere. of efforts five options the the wrote and sale completed as XX a our XX%. sell outcome, XX dispositions strong, our the portfolio renovation this down significant of property XX sale Despite price. in years has was refocus over that Plaza program, IRR and and our blended to very our last

capital are we call over to portfolio. to alternatives time. XXXX that As provide well recycling for we results the In further XXXX. that at are Should initiatives we continue future, growth our our at look I'll advance, and these in opportunities we Tony. conclusion, pleased across execute to we details believe will with opportunities the With and that, operational positioned our explore turn

Tony Maretic

December Quad as acquisitions quarter QX. which fourth was quarter GAAP subsequent impact $XXX,XXX acquisitions basis, quarter. the increase offset audit to costs that in the reported was interest a FFO acquired from income late the with achieved equal over fourth year-end was third third filings. which The were primarily had the from to X.XX during quarter Circle slightly elevated and $XX.X which the produced per core quarter Jamie increase by minimal The million and $XX.X are the income increase operating higher referenced a the additional acquisitions quarter million G&A in or fourth of third On to Jamie. income Point a in in $XX.X million, We associated number in represents they of share due quarter in the full the expenses our this the on attributable typically costs reported the or prior was as quarter-end. The the we the and Thanks net quarter to

Our million $X.X $X.XX fourth share. AFFO or per quarter was

quarter planned move at Crossroads. size to in quarter capital our affected of of numbers enhancing to Our one will around of relative our Due our fourth the impact significant completion and some by AFFO portfolio program was quarter-to-quarter. DTC the AFFO leasing any the from value continue

number while quarter Our as count metrics no the shares was core AFFO FFO fourth third shares under quarter. by fourth ATM share the fully were weighted affected compared and weighted a The average the our of quarter in per quarter. were million third the both quarter the issuance to average a impact in realized only higher program in of X.X share in this issued

are some and our first to Our with the leasing pages to supplemental XX Park several our activity largest repositioning, and of AFFO, provided of Further XX at page of definition nonrecurring quarter-end. have capital excluded expenditures on the package. and generation subsequent activities on of Tower details the continues repositioning properties, completed we relate was leasing costs the to are capital expenditures. which which XX under disclosed Consistent

beginning related the same-store headwinds the the was negative our for ended we the of year. to X.X% that cash increased with to much the We guidance same-store occupancy NOI starting of X% the decrease for provided range XXXX which and lower experienced Our X.X% year. in year quarter X% at full we within XXXX of

were in half we year accelerating which As saw later of results the same-store turn achieved gains into occupancy positive, XXXX. see we

our total onto net of deferred $XXX our Moving was costs December sheet, XX million. debt balance at financing

value low. at Using XX%. our value price stock ratio at as December was reported consensus analyst net near NAV debt-to-enterprise based time figure that net was debt-to-enterprise which the is XX.X%, trading estimate was all ratio on but X, of year-end, our Our

approximately disposition with using leverage represented total that Jimmy this approximately we fixed debt average With of one closed of expect Greenwood year-end rate We the X.X measure. XX% the and At acquisitions our XX% interest quarter-end X.X% fixed for weighted after to same million of debt, two our a and discussed be the at rate at a years. maturity seven-year a of end Blvd quarter loan weighted with average X.X% $XX rate of a the interest term.

Lastly, year press we guidance have provided our full release. XXXX in

which which Canyon of earlier Seattle, disposition Plaza scheduled in estimates acquisition to of which the is week, the quarter the acquisition of February, in asset, closed guidance Park XXXX. XX include Our the the in second close and this Portland occurred

Our acquisitions not forth set any guidance share between the on assumptions, acquisition considerations year you below rate acquisition in Square two impact per our earnings slightly of the one effect. that once incremental bottom-end December expect XX, by occupancy value-add $X.XX contracted full the acquisitions. FFO our discussed is that we approximately rate these were material or our cash we of XXXX. the the full-year a core full estimating capital between quarter. near $X.XX The higher of assets Core due QX half towards FFO include rate, be Previously per This or on $X.XX lower cap should achieved a the and for XXXX primarily recycling year run the XXXX are basis near-term the year of to acquisitions are range. to increase Camelback per land to FFO Denver. of and range for impact and and $X.XX take and does flow term deployed We second core on $X.XX QX assumptions. ending Based the we the assumptions quarterly to fully gains, as Together release. or we further closed share end be these can refer through in

significant ups, However, in recycling we one core depending and with and with value-add capital average leasing an coverage of the projects XXX%, contractual below-market will XXXX share gravitate basis in modest fully the close near rental gain rates, rent any to flow our AFFO quarter. expect deployed be step transactions occupancy term on place cash range on expectations, dividend FFO capital. Based on medium programs, to to portfolio to $X.XX $X.XX further associated increases towards per in

this cash comfortable and of interim planned expected are flow the given with recent our and dynamic acquisitions. numerous nature increases high-growth We

and expected side, On the Operator? prepared X% we XX% the up year-end we questions. remarks, to and our with same-store occupancy growth operational to and cash our expect over concludes be be results, XXXX XX%. open to incremental positive and That between line progress X% for NOI between

Operator

with [Operator now comes question begin go Our from question-and-answer will ahead. the session. Janney. Rob We Instructions] Please Stevenson

Rob Stevenson

first at FRP in in DTC XXXX? portfolio How bigger Logan vacancy see far morning should as about in Great the pieces the the leasing thus Collection be Crossroads, we of thinking Tower and Sorrento to Good guys. the Mesa quarter. such

Jamie Farrar

Rob. Thanks question, for the

biggest are, So at building. full if is which one look Mesa, effectively you has where blocks it the Sorrento

If you paid recall, rent. buyout, we negotiated got an the early XX% future of

vacancies to divestiture So we as that That we minds. are We're There XXXX contemplating are hoping other on beyond is accelerate potential working in some is that building candidate. a one. one our probably in is a there that. that

be building, So one focused ultimately that particular but could exit. leasing we that that are still on we

In blocks, There's that XX%. approximately we're Crossroads, suite phenomenal terms top-floor DTC we of a the other big expect.

So the of prospects do but our the for towards assuming We that's that, very the that one, year late end some numbers. we're in have own in year.

we're year. any assumed The that not other suites well, working we've as on, income but from this

Rob Stevenson

Okay. significance point? then any move-outs XXXX this And in at XXXX or known of

Tony Maretic

this Hey is Rob, Tony.

for than the have are to within portfolio – that square-foot X% For we expire. less of And our next XX,XXX have expiring. over XXXX, group, no tenants we that set

really, renewal it's that remainder. lot expect So typical tenants, we rate medium the a of and smaller to on

Rob Stevenson

a you was somebody by term did heavily Okay. two one years. the transactions. case renewals or or assume something? quarter, that driven the was only year the In on I in just that X.X renewed some for Was

Jamie Farrar

Yes.

FRP is Army effectively, Rob. annual So tenant a Collection at we Engineers. There of it's where have Corps transaction, they with longer-term that's renewals the our prenegotiated one skewed, but

been but and the reconfirm skewed property term, year. occupancy requirement effectively we really the that So that long results their quarter, this it's in a for they've each

Rob Stevenson

availability guys, thinking be should – But not that the to sitting able is what stock here probably repeatedly. how XX.XX to leverage one Okay. we your you of hitting to And then close gaps is about portfolio, I the cash Tony, today is cetera, what and if the obviously, and guys dry decide powder at to another cause attractive be last that deals? mean, going me. timing sort begs of for more then in is, future you guess, churn that issue? sort the of coverage et in pending downtime, And between stuff, and question sell dividend to given

Tony Maretic

sure. Yes,

two parts that to question. there’s So

our, the are using, terms transactions complete and over about will powder, of leverage in dry of once XX% terms kind close debt a our beyond the basis In NAV. we we first estimates that to to of, asset be analyst know push we our consensus the effectively, kind that. contracted, for But just are – what net the effectively of, to or cost have capacity part,

have We significant us $XXX a million of that that a dry availability gives line powder. credit still has

So recycling. anticipate powder, kind about go leverage that, we of in leads higher don't question dry the I much way to think is which part Generally, of terms think the the while beyond your I into the it have do to of second that building of potentially a alluded contributing NOI. assets recycling that existing we're contributing in NOI. Sorrento that to at very of are They that are not Mesa to are significant earlier is little looking amount has your question assets vacancies Jamie some either,

some about have We talked past. the parcels that we've land in

accretive. recycling the in effectively, kind of, acquisition lead be just immediately NOI. the any, If to anything, should shouldn't So downtimes

Rob Stevenson

Okay, perfect. Appreciate it guys.

Tony Maretic

Rob. Thanks

Operator

ahead. Michael Please Carroll Capital question next go comes from with Our Markets. RBC

Michael Carroll

the stabilization? you you there remarks pretty, that of Yes lease right I activity lease that think talk is up Camelback but mentioned you acquisition, XX-month I activity. there some good bit attractive the seems And And prepared that was we guys timing? But Square. I not more like is some know a how a in It to thanks. see your there. this should what now little hoping can space? guess, Or is about about

Jamie Farrar

the for question Thanks Mike.

Goldwater, from Camelback at again you location, Fashion phenomenal across Square. AAA, the when look it's So Scottsdale great frontage, and

it been just you So of phenomenal the putting about entire go already of sort want creative one in trying in it They've money can the on about XX% you buildings our and submarket. the done, When some some rents, you million been asset, transform great to But is spent enhance the tenants location. a make into suites, there. that the of build-out, by building getting right top to in there's $X has really it. view

So as conservative we're what we and to, as think think starting in on We moving far three five. be mid-Xs we've results. on kind we'll cost, of, the by return expecting year X% been year pretty

that acceleration putting to after We the the really with in greater property, location. does it the have potential also we planned think into money that rents, for particularly

Michael Carroll

that that know Great. And rents? take like? in long look will really that What's it some I capture schedule sub below-market the And you there's to right how the lease mentioned in asset expiration rents now. those about

Jamie Farrar

It’s pretty diverse.

about think right that – year I rolling just we to let feet rustle have in get access one, XX,XXX – we can me away.

think combination of we pretty So it leasing been next our space are roll blocks XXXX around plan. as the near-term well that on roll. as really have it's we But we timing up. and getting on a do based of just The hitting think in that the of We've is conservative vacancies that access. we're But range there X% in then beyond. the the

Michael Carroll

those then can looking little Crossroads we done talk I leases big XX% to there? activity of spaces? your expect And XX%, to commencing occupancy Sorrento expect that there or we're start year-end about DTC assuming guidance at bit get am you And Okay. Mesa. to the lease-ups a we when Can the should and is the at

Tony Maretic

floor of This if good but we're that see Tony top is alluded bit numbers, leased XXXX late have come sort to that little In spaces, a here. having you based most Sure there, it Crossroads, tour the own at the on of look the up perspective through. Mike. internal volume. getting attractive Jamie needs our earlier, in tenants the DTC we

think that to way the one. think, about I that's, So

is transaction if the is with But recently a our of tours. and clean-up you starting This buyout, some most it's could Sorrento there. in the likely. vacancy XXXX and a minds earlier. We hope it that primary that our the space ago. some is in the But boxed year one XXXX be is own the that estimates, white had building did recall, we that full Mesa local

Jamie Farrar

places really both One thing at done we’ve invest in the property is itself.

the lobby it we lounge, looks couple looks Crossroads, finished really asset so phenomenal. a refresh. phenomenal. built That's a built fitness so out what DTC over that a central elevated last it weeks We've We've So was concluded. amenity just at tenant of has facility. It out DTC,

we same built Sorrento an we that within Mesa, courtyard was thing buildings a central amenity did of what the effectively the is campus. all our for

so well And think prospective as that's well really we be going to received tenants. by

our that to think I timing, conservative we're that. can So, hit we being realistic but in hopeful accelerate able and be

Michael Carroll

I Great. like big you was a pretty XXXX, And then compared your guess about Tony, it last guidance, that a increase? bit talk little can question, G&A there's what driving looks uplift to

Tony Maretic

we've primarily, G&A, there's that a to continues from in that to the decline second we group reimbursement the one the So driving previously G&A, leading of received couple burn-off just city a as that natural year-over-year increase from that factors really in will been of then higher higher simply and continue investing portfolio into head personnel combination XXXX management – it's with XXXX the and factors. count, those asset XXXX. component And the two a is other

Michael Carroll

you. great. Okay, Thank

Jamie Farrar

Thanks. Mike.

Operator

question next Oxford Barry comes with ahead. Our Davidson. go Please D.A. from

Barry Oxford

towards be as You was Phoenix the lean to say we guys. or attractive year seeing in, was that or it continue most it you're which you look, thanks as you as When may what Great, you're as that far ones look – into this pricing? market do far currently though? as Tampa Jamie Orlando getting

Jamie Farrar

will the last how look there large liked you that's come market vacancies the such from that. really locations where In we've at benefit points, concentrated basis Phoenix to moving, our they're XXX of months, at and and in looking think like XX and the in over terms where a push mean, that at fundamentals we've rental assets we've continuing really pricing, you all made be just to look rates great I strong a I continue of when

for access one As of mentioned, past to long-term. great as over population been we the new Barry Seattle think long–term a markets, us. is a lot flow and we getting as employment, that'll positioned we've great is well think in spent market into has way time a cash far found transaction is a as Seattle you trying really of and what deliver the growth, we far

Barry Oxford

than at a to you been in was in Do Seattle trying there had or of you this you more runoff let's it ago, rates kind of particular maybe get attractive that guys say the what's did a making feel to Seattle finally come market guys guys cap type and change up, enable there. into market have inch does get you time? you year for at to of get that situation do more Looking back this into and that

Tony Maretic

cap of say been moved really we've close deals a number and on there. wouldn't Well I have that rates up

focused of I three think acquired it's we emerged long-term. was couple stabilize liked when buildings buildings the included been it really that And fairly we then buyer stable, with the the Kevin more other the particular a a past top for to when multiple the a he's and opportunity and in finding right with initially And so really on a the buildings, this portfolio, for worked and us were Shannon, we times coast, who's at broker about and we it. for we value-add came the the helped looked opportunity excited secure west of value-add assets, component. we really performed in was him pretty terms three quickly, of we're particular these one us in

Barry Oxford

color Great. Thanks for the guys.

Tony Maretic

you. Thank

Jamie Farrar

Barry. Thanks

Operator

with Craig B. Kucera FBR, next please comes question go Riley from Our ahead.

Craig Kucera

think sort that to XX% sort got plus in to X% aggressively vacant guys. rate? get of likely keep naturally XX% Camelback to I XXXX. roll lease XX% plans future this today, are then renovations market cap your Hey and rents? are the in higher you there. Are you rise the circle to the that It's as good you complete and and going stabilized understand gradually until Wanted of hope things you Or to morning to, just market another rolling the today what just back about of, kind off to space

Jamie Farrar

we're exactly Craig, what really and do. we it the so renovation focused to right planning launched want on getting now,

out have towards that one perspective we're we don't fairly to I right the now that is we at level, would be There targeting, think there. potential really that going it our there be existing debating leasing trending internally think communicate and we're aren't rates I so tenants can well answer. solid could a accelerate to one have what

Craig Kucera

quarter a as occupancy. signed during likely points that quarter leases begin XXX both haven't are leases of before when the about quite And far of commenced, occupancy those that Do have and this you basis to paying? the Okay. as take and it's sense you've

Tony Maretic

kind happening of here. gains my a ones top off are of of, the and occurring it's early Park kind kind the head in They're the kind Collection the those FRP half XXXX spread major through thinking QX. of really just and of Florida lot are Tower Tony of Hey, Craig, between first of

Craig Kucera

leasing to as as did, have And you sense rent what a that far during spreads quarter, of do were your prior you relative complete Okay. the the rents?

Jamie Farrar

Yes, for Craig size but sample small less X,XXX again, square feet, X% than I was the so size. mean, it’s relatively quarter, a number that small that's sample

Craig Kucera

any was I an pricing situation? for for had Okay. Portland And for you X.X% seeing an that more that rate. wasn't of quite attractive market a time, more that the long asset said But make that you feel Or that here liked market cap just at you like change to growth? Is unique a a you found in guys one likely me, you're but more it that close future there. are

Jamie Farrar

lot demand. been there's it's grow, to of a it's, hard market No, a

that particularly number They've a at a ultimately We few it vacated looked desirable very bought leasing had tough deal lot in Portland a a in came of a job. did built it creative million bit just a at back great you for younger looked asset schools they've workforce then was job a out and it, so number tenants done when $XX.X think signed they out unique small that the great really spaces it of at ago. way, they and it, it years I and of that and a group up. a and the of was for-profit

hopefully get looked accomplished, buyers had debt And assumed that impressed unique. is you'd looked XX ground smaller there year minute years conventionally an lease institutional is really it came will we size. I'll is counterparty dug we when it find kind prepaid, had actually and so so lot debt. it, a were felt really ground lot what being but There out live XX to we about ground at into in just so went was a of and and around good drag which a with more of an over for the with deal didn't and time. We It's down back no the and there live we and you when lease, great at and of a could they'd with deal, importantly really to we for attention and and the a could smaller waiting the when opportunity have we a us first talk assume just lease, are it it,

Craig Kucera

thanks right, All guys.

Jamie Farrar

Thanks for the questions, Craig.

Operator

Our next JMP Germain Please ahead. Mitch with from go comes Securities. question

Mitch Germain

guys. morning Good

that that from but model? to than don’t in was presented it or leasing are a number of who a just envelope, the seems the You it there was said you time know was to value-add, my the around the in the I or Or back it I I slower think terms skew of get of it fixed you cost of besides circle think what caused little us? was of some acquisitions, I of Jamie, that kind for you Tony thought? know I acquisitions. higher XX, it maybe anything said you the anything rate, might the think – I run else was XX kind I Was like, Tony, last $X.XX to little to more, it your you it wanted changed apologize have maybe it back

Tony Maretic

about primary single that acquisitions factor I the other are think driving point to, as that I occupancy. it's mentioned, sort it I $X.XX the can be to isn't other any than $X.XX $X.XX below. There Yes, will factor of

to you end to a we year, of year was ended at look at end last the range. lower occupancy, provide If of up where the expect it we beginning XX – at XX range we'd that the

the difference. up occupancy bulk so expectations that of And makes the

Mitch Germain

envision you is you your some rest the of safe – of focus in that in a or are out? you're, do of opportunities now there different a And efforts you of to playing value-add say it when acquisitions guys some the want how Great. out pause to taken kind bit you're

Jamie Farrar

fourth rolled obviously first and that's quarter the we really busy Yes, into had quarter. so a

really optimally potentially have we we the in significant the the later to are I and digestion to reinvest we this year of in to, occupancy impact driving right trying potentially So we we're use now assets and achieve position mode focused on bottom in think say that would focused year a line. there some on have. could can we sales We're and as alluded that

internally really right we're So focused now.

Mitch Germain

guys. Thanks helpful. Very

Jamie Farrar

Thank you.

Tony Maretic

Mitch. you Thank

Operator

this [Operator the Instructions] the to over Jamie any time no conference At closing to would back now remarks. Mr. in I Farrar questions further are like there queue. for turn

Jamie Farrar

today. time We on questions we the progress you the really year. appreciate look to updating for forward throughout everybody's and Thanks our

Operator

The for conference disconnect. today's attending now concluded. and you has you Thank now presentation may

City Office REIT (CIO) 27 Feb 192018 Q4 Earnings call transcript