Equity Commonwealth (EQC) 13 Feb 242023 Q4 Earnings call transcript

Good morning, and thanks for joining this call to discuss Equity Commonwealth's results for the fourth quarter and full year ending December 31, 2023, and an update on the company. [Operator Instructions] As a reminder, this conference is being recorded. Please be advised that certain matters discussed during this conference call may constitute forward-looking statements within the meaning of federal securities law. Please refer to the section titled Forward-Looking Statements in the press release issued yesterday as well as the section titled Risk Factors in the company's annual report on Form 10-K and quarterly reports on Form 10-Q for subsequent quarters for a discussion of factors that could cause the company's actual results to materially differ from any forward-looking statements. The company assumes no obligation to update or supplement any forward-looking statements made today. The company posts important information on its website at www.eqcre.com, including information that may be material. The portion of today's remarks on the company's quarterly and 2023 earnings also include certain non-GAAP financial measures. press reconciliation supplement to of GAAP results. yesterday's results the the to financial a for these refer release containing and company's company's Please non-GAAP measures

David are that, With turn sir. the Weinberg. President On Griffiths, David I'll David to go call and Bill today and the CEO; Please Weinberg, call COO; CFO. Helfand, ahead,

investment year the activities. update the quarter for morning, Thanks everyone. results an for Good provide the joining as full company's on as us. our I'll review well and

funds increase XXXX. For $X.XX and in down quarter and share NOI normalized share was quarter, share was cash were the the compared from in in per growth income. Same-property same-property interest per and was result FFO of share per compared operations FFO share a other X.X%, per was the XXXX. the fourth $X.XX The year compared to $X.XX largely XX% to Normalized $X.XX to NOI of fourth lower ago. quarter a FFO per $X.XX

year was full operations share growth NOI $X.XX compared XX.X%, decrease other and for share in largely same-property same-property same-property the per to income, in XXXX. interest XXXX, to from the XXXX. was NOI. Same-property a share year per per per and was compared The full FFO NOI. and in For per result increase the a expense lower $X.XX largely NOI a the per by per year and to decrease driven was $X.XX the and $X.XX Normalized share normalized share income down in ago. full cash growth year increase share FFO $X.XX $X.XX in the per cash was in XX.X% G&A were compared other of share interest in The share $X.XX per share $X.XX FFO funds increase $X.XX a

in same-property our early the cash leasing activity NOI onetime and respectively. slow At NOI remained work a as continued through office properties, and tenants X.X% XXXX, space X.X%, collection to same-property fourth requirements. in quarter Excluding declined their

square on up new up XX,XXX cash signed we GAAP Rents basis feet quarter, leases and were the a on renewals. leases of basis. XX.X% For X.X% on and a those

For signed cash feet Rent of on and leases a up were renewals. on those on leases we X.X% new and the up XXX,XXX basis GAAP square year, a XX.X% basis.

occupancy As XX, of occupancy December XX%. leased and XX.X% was was commenced

balance sheet. the to Turning

shares approximately of qualify the share or roughly The month, to have average $XX we XX% Since share of value cash our a We our shares expect the balance to investment income cost at during average existing an identify to our our of average stock, opportunity $XXX an to of an a million income during year down interest REIT, balance currently $X.XX in just share. average during distribution of our $XX.XX. changing buyers for common cash, and was buyback to of gauge cash buybacks. the as create million $XX is by on sales income try the of billion from X.XX% of and cash we contribution sellers completed through an we debt. primarily respect investment for at the on With of in caused aggregate share stock next during across have a our during the XXXX, for all respect strength have the REIT back of a sectors. At share to We XXXX capital per and interest rate the no of repurchased our work began and from price we buybacks, EQC, share sort XXXX. With as cash XXXX. an increased and repurchased of that, at that of to at we we preferred per the continue per buying in XXXX classes to under $XX markets, office remaining interest asset March cash which X.X% XX an total million XXXX, REIT $X.X subsidiary test X makes The Net this XX.X million cash the X $XX.X impact remain volumes change net million months. credit dividend-adjusted price to different markets qualified in a income $XX.XX. With assets. authorization. Earlier on

the are said have we we we believe is paid are we for risk taking. previously, compelling getting a one where As investment opportunity

for that time prospects we more on housing. long-term investments We the also hopeful and we industrial while a REIT. Accordingly, believe With including I find remain that are and the will with remains workforce happy a growth deal. look we take strong team In investments, that, residential meantime, disciplined. Bill, are and spending David, questions. your businesses focused We public sectors, are good across to

question with the is of first Citi. Craig Our Instructions] Mailman from [Operator line

or number This first Bergey to the is you you're quarters? compare on opportunity that at set the how Craig. Like I been see Seth do that opportunities evaluating prior my would looking volume you've of the be, it today? decreased? over guess for Has question how increased does

I'd sure a David to not difference. that It's quarter, Weinberg. of there's I'm quarter from much say just

and year. but for into in there's we keep and more on last saw please those, look from to you're year While perspective, to investments. the opportunities an uptick market transformative sales, there's a larger opportunities maybe references more continuing And one-off we're seeing we're this chatter my early mind in lot looking at

window another Okay, you've you that COVID, the narrowing talked at? be then see of which of increasing, terms great. see about just opportunity? alluding opportunity catalysts be window a you catalyst, and you've in kind In the still the that mentioned you're chatter in that to of frame of kind you do markets. would kind that of transaction one. do didn't capital looking turn Do for of of some how kind of a view then to out dislocation of Kind the past, plenty just And or time

company. if to But change private get things think when discussed harder to rates an credit is window public, pressure shut. to look in predict interest will the up, to I'd attractive need companies option at on cash, and we I to It's do for are providing we we and in the say remaining shuts. when conversations large down, are think we've owners. And can't continue But for longer and predict address environment selling we the your will the can X that being window in companies to of we and this some addition liquidating private are question, the had. and markets, And that given and before, in general, real to proceeds specifically if be reasons harder there hard it had liquidity open. create for lots properties perhaps just

questions, further will no the conference are over please there David, As I hand to David. ahead. now go

right. we and Well, All your again, appreciate you thank time.

The Commonwealth participation. for has you. of you Thank now Equity your concluded. Thank conference

may your You now disconnect lines.