City Office REIT Jumps 27% on a Massive Deal That Could Repay Its Entire Debt
City Office REIT (NYSE: CIO) stock is on fire today, rallying a whopping 27% as of 3:10 p.m. EDT. The real estate investment trust's stock is reacting to a huge announcement coming from the company that should mean big returns for shareholders.
Last Friday after market close, City Office announced it will sell all of its assets in the Sorrento Mesa submarket of San Diego in deals that should fetch it $576 million in two tranches: $395 million by the end of this year and the remaining $181 million by February 2023.
City Office owns office properties primarily in the southern and western United States, including San Diego, which accounted for 12% of its total net rentable area as of June 30. You might think the sale of its Sorrento Mesa assets could, therefore, hit its rentals and revenue, but here's why it shouldn't.
Source Fool.com
