City Office REIT, Inc. entered into a purchase and sale agreement to sell several properties in Phoenix for a total of $296.0 million, with the first closing resulting in $266.0 million in gross sales proceeds.
The company also made amendments to its Credit Agreement related to the sale transaction, reducing the available commitment for the revolving credit facility.
Pro Forma Consolidated Financial Statements as of June 30, 2025, illustrate the estimated effect of the company's disposition of the Phoenix Portfolio.
Property Sale Agreement
City Office REIT, Inc. sold several properties in Phoenix for $296.0 million, with one property still pending closure.
Credit Agreement Amendment
The company made amendments to its Credit Agreement in conjunction with the property sale, impacting its financial commitments.
Pro Forma Financial Statements
The Pro Forma Consolidated Financial Statements provide insights into the anticipated impact of the property disposition on the company's financial position.
- The sale of the Phoenix Portfolio will generate significant proceeds for City Office REIT, Inc., allowing for debt repayment and potential reinvestment opportunities.
- The amendments to the Credit Agreement reflect the company's strategic financial management in light of the property sale transaction.
Overall, City Office REIT, Inc.'s decision to sell a portion of its property portfolio in Phoenix showcases its proactive approach to optimizing its asset mix and financial structure. The accompanying Pro Forma Consolidated Financial Statements provide stakeholders with a clearer understanding of the potential implications of this strategic move.