Credit Rating For The Unrated REITs (Part 4): City Office REIT, Inc.

Summary

  • CIO's asset base and leverage are reasonable, but weak liquidity and a challenging operating environment constrain its credit profile to a B3 rating.
  • The preferred stock, CIO.PR.A, is rated Caa2, reflecting its higher risk and limited downside protection for investors.
  • Despite attractive yields, the risk-reward profile for CIO's preferred stock is unfavorable due to low credit ratings and insufficient coverage of fixed costs.
  • Given these factors, I do not recommend investing in CIO's preferred stock at this time and maintain a 'pass' stance.
Providing services to the lowest rated customers One star on a very bad level

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Co-authored by Strategic Yield.

Today's article is another credit rating for the unrated REIT company. We talk about City Office REIT, Inc. (NYSE:CIO) and its preferred stock (NYSE:CIO.PR.A).

Company Overview

CIO was founded in 2013, and it is headquartered in Vancouver, Canada. Its

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CIO
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