How does the valuation multiple of the Phoenix portfolio compare to recent comparable office asset sales in the sector?

The Phoenix portfolio was sold for a gross price of $266 million for six office properties, translating to a valuation multiple of roughly 13‑14 times the projected 2025 net operating income (NOI) (based on the portfolio’s disclosed NOI of about $19‑20 million). In the past 12 months, comparable office‑asset transactions in the U.S. have been priced at 15‑18 times NOI on average, with premium‑quality, centrally‑located assets edging toward the high‑18s. Consequently, the Phoenix deal sits on the low‑end of the sector range, reflecting a modest discount relative to recent comparable sales.

From a trading perspective, the sub‑mid‑range multiple signals that the market is still rewarding price‑sensitive, well‑located office assets with a leaner valuation than many peers. Assuming the assets’ cash‑flow profile holds, the lower multiple could translate into a higher yield for investors and a potential upside for City Office REIT’s remaining portfolio, especially if the broader office market stabilises and cap‑rates compress. For short‑term traders, the discount may already be baked into the stock, suggesting a neutral‑to‑slightly bullish stance on CIO with a focus on price‑support around the $30‑$32 share level, while longer‑term investors could view the transaction as a value‑entry point if the company can redeploy the capital into higher‑multiple, growth‑oriented assets.