Investor Presentaiton
LIFE SCIENCE SALE ENHANCES FINANCIAL POSITION
CITY OFFICE REIT
Sorrento Mesa Net Sale Proceeds Nearly Equal to CIO's Entire Corporate Debt Outstanding
To illustrate the magnitude of the balance sheet enhancement from the life science sale, the chart below provides CIO's pro forma
leverage ratios assuming the transaction closed June 30, 2021 and all net proceeds were initially used to reduce net debt
(1)
(2)
(3)
(4)
(in millions)
Assets:
June 30,
2021
Sorrento
Mesa Sale
Pro
Forma
Real estate properties, net
983.3
Cash, cash equivalents and restricted cash
36.3
(109.2) $
546.0
874.1
582.3
Combined other assets
(1)
108.6
(8.8)
99.8
Total Assets
$
1,128.2
$
1,556.2
Liabilities:
Debt
Combined other liabilities
(2)
Equity:
Total Equity
Total Liabilities and Equity
$
612.5
612.5
62.3
(2.3)
60.0
453.4
430.3
883.7
$
1,128.2
$
1,556.2
Leverage
CIO share of net debt (CIO share of debt principal less cash)
Annualized Adjusted EBITDA
574.1
(546.0)
28.1
92.5
(9.8) (4)
82.7
Net Debt including Restricted Cash/Annualized Adjusted EBITDA
6.2x
0.3x
(3)
Net Debt to Enterprise Value including Restricted Cash
46.5%
Combined other assets include rents receivable, deferred leasing costs, acquired lease intangible assets and other assets
Combined other liabilities include accounts payable and accrued liabilities, deferred rent, tenant rent deposits, acquired lease intangible liabilities and other liabilities
Net Debt to Enterprise Value including Restricted Cash calculated based the June 30, 2021 closing stock price of $12.43 per share of common stock
Annualized Adjusted EBITDA attributable to Sorrento Mesa
4.1%
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