City Office REIT, a real estate investment trust that focuses on acquiring, owning, and operating office properties in the United States, reported an earnings per share (EPS) of -$0.10 on July 31, 2025. This was below the estimated EPS of $0.28. The company generated a revenue of $42.2 million, slightly missing the estimated revenue of $42.26 million.
Despite the earnings miss, CIO's stock price surged by 24.1% in the last trading session, closing at $6.90. This increase was driven by the announcement of a definitive merger agreement with MCME Carell Holdings, LP and MCME Carell Holdings, LLC. Under this agreement, MCME Carell will acquire all issued and outstanding shares of CIO for $7 per share, as highlighted by the recent trading activity.
CIO's financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of approximately -14.81, reflecting negative earnings. The price-to-sales ratio is about 1.65, meaning investors pay $1.65 for every dollar of sales. The enterprise value to sales ratio is around 5.35, and the enterprise value to operating cash flow ratio is approximately 16.56, indicating the company's valuation in relation to its cash flow.
CIO's earnings yield is about -6.75%, further highlighting the negative earnings situation. The debt-to-equity ratio is approximately 0.89, indicating a moderate level of debt relative to equity. The current ratio is around 0.30, suggesting potential liquidity challenges in meeting short-term obligations. These financial metrics provide insight into the company's current financial health and potential risks.
