KeyBanc starts City Office REIT at Sector Weight, sees some near-term risk

KeyBanc analyst Upal Rana initiated coverage of City Office REIT with a Sector Weight rating. The firm views City Office REIT’s Sun Belt portfolio, diverse tenant base, and steady fundamentals positively. The firm added, however, that Phoenix is experiencing occupancy pressure, and thinks risk largely stems from relatively high near-term debt maturities, near-term lease roll, and lower financial flexibility vs peers.