Oksenholt Capital Slams City Office REIT’s “Lowball” Elliott Capital Offer, Calls for New Leadership and Strategic Restructuring

SCOTTSDALE, Ariz.--( BUSINESS WIRE)--Oksenholt Capital Management LLC (“Oksenholt Capital”) today announced that its Chief Executive Officer, Jon Oksenholt, has sent a formal letter to the Chairman of the Board of City Office REIT, Inc. (NYSE: CIO), outlining serious concerns about the company’s leadership, performance, and opposition to the proposed merger with affiliates of Elliott Capital.

On the Current State of City Office REIT, Inc. and its Executive Leadership:

"City's stock price has fallen from its 2022 high of $21.24 to $5.57 as of July 23, 2025, (the closing price prior to the merger announcement), reflecting a loss of approximately $626,800,000 in market capitalization. While the shareholders have suffered significant loss due to the drastic decline in stock price, the CEO based in Canada, James Farrar, has continued to receive millions of dollars in salary, bonuses & stock awards notwithstanding the significant underperformance of City. For example, in 2024, James Farrar received $2,326,635 in total compensation. Of this total $525,000 was salary, $656,250 was received as a bonus, $1,054,368 was awarded as stock and $91,017 came from other types of compensation according to issued 2024 proxy statements.

And, despite the significant benefit personally received by James Farrar, the CEO has failed to take accountability or provide meaningful solutions for the continued decline of City. For example, while the stock cratered in 2022, City’s CEO wrote a very long preamble to the 35-page ESG report but only wrote a very short letter for the annual report which was long on excuses & short on solutions to course correct City’s continued decline. That would be the last annual letter written by CEO James Farrar as the stock continued to crater.”

On the Proposed Merger/Acquisition with MCME Carell, affiliates of MCME Capital:

"Despite the horrid performance of the stock over the years, we are convinced that there is a significant opportunity at hand for City to unlock its intrinsic value for the benefit of all its shareholders (which we believe may be closer to City’s recent book value of ~$15.00 per share than the current offer). As such, we object to the proposed merger with affiliates of Elliott Capital, which offer was done in the dead of night behind closed doors, effectively is a liquidation sale, and is not in the best interests of City or its shareholders.

In particular, throughout 2025, City kept shareholders in the dark as it negotiated a sale behind closed doors rather than as part of an open & competitive bid process. We believe that certain key elements of a typical take private investment have the potential to be highly beneficial to shareholders, particularly where the transaction entails the addition of new independent directors & the appointment of a new senior management team. However, we view the current offer as too low & believe that it fails to maximize shareholder value. As such, if our affiliates remain shareholders, we will oppose any sale with price or terms that are disadvantageous to current shareholders or limit the options for a new senior management team to maximize long-term shareholder value. Given the Company's market position & current liquidity, we fail to see how selling the company at or around the current stock price maximizes long-term value for shareholders.”

On Oksenholt Capital Management's Plan for Restoring and Enhancing Value at City:

". . . to realize City's value potential & restore its enviable Sun Belt market position & its financial performance, rather than entering into what for all intents and purposes is a quick liquidation sale, we believe City must promptly implement restructuring, strategic visioning & cost savings plans, including some or all the following:

On the Need for New Independent Directors & New Leadership at the Senior Management Level without Potential Conflicts of Interest:

"We also believe that in order to be successful, City's senior management must:

On the Value Potential at City:

"With the right leadership in place to execute Oksenholt Capital Management’s plan, we are confident that City will once again be able to harness the strength of its Sun Belt real estate portfolio, thus creating significant value for shareholders. We also believe it is critical that City promptly add new independent directors who are focused on improving long-term shareholder value, ensuring that shareholder interests are protected and recruiting a new senior management team that is US based (and in particular, operating out of one of the company’s offices) & capable of executing a strategy to improve City's performance & maximize shareholder value.

Oksenholt Capital Management LLC's Conclusion:

“We strongly believe in City's long-term prospects and are confident that with the right leadership and independent directors in place, City can recover its position as a leading Sun Belt office REIT and unlock City's value potential for all shareholders.”

Oksenholt Capital Management LLC and its affiliates are significant shareholders and are committed to helping City Office REIT, Inc. improve its long-term financial and share price performance. Oksenholt Capital Management LLC informed the Chairman that it welcomes the opportunity to meet and present its recommendations in person.

*Information contained herein is deemed reliable but not guaranteed*