Equity Commonwealth(EQC) - 2024 Q2 - Quarterly Results

Financial Performance - Net income attributable to EQC common shareholders for Q2 2024 was $22,153,000, a decrease of 5.3% compared to $23,408,000 in Q1 2024[41] - Adjusted EBITDAre for Q2 2024 was reported at $28,802,000, down from $29,845,000 in Q1 2024, indicating a decline of 3.5%[41] - Total revenues for the three months ended June 30, 2024, were $14,109 million, a decrease of 3.3% compared to $14,586 million in the same period of 2023[46] - Net income attributable to Equity Commonwealth common shareholders for the three months ended June 30, 2024, was $22,153 million, up from $13,787 million in the same period of 2023, representing a 60.5% increase[46] - Net income for the three months ended June 30, 2024, was $24,186,000, an increase from $15,836,000 in the same period last year[81] - Net income for the three months ended June 30, 2024, was $24,186 million, compared to $15,836 million for the same period in 2023, representing a year-over-year increase of 52.8%[82] - Adjusted EBITDAre for the six months ended June 30, 2024, was $58,647,000, compared to $55,244,000 for the same period in 2023[81] - The normalized FFO attributable to EQC common shareholders and unitholders for the three months ended June 30, 2024, was $26,099 million, significantly higher than $5,957 million in 2023[82] - FFO attributable to EQC common shareholders and unitholders for the six months ended June 30, 2024, was $54,165 million, up from $43,395 million in 2023, reflecting a growth of 24.8%[82] Property Performance - Same Property NOI for Q2 2024 was $7,391,000, a decrease of 14.7% from $8,672,000 in Q1 2024[41] - Same Property NOI for the six months ended June 30, 2024, was $16,044 million, compared to $15,968 million for the same period in 2023, reflecting a 0.5% increase[49] - Same Property Cash Basis NOI for the three months ended June 30, 2024, was $7,063,000, compared to $7,833,000 for the previous quarter[73] - The company reported a Same Property Cash Basis NOI margin of 51.3% for Q2 2024, down from 54.6% in Q1 2024, indicating a decline of 3.3%[41] - Cash Basis NOI for the six months ended June 30, 2024, was $14,896 million, down from $16,302 million in the same period of 2023, indicating a decrease of 8.6%[52] - The percentage leased for properties as of June 30, 2024, was 71.4%, down from 75.4% in Q1 2024, representing a decline of 4%[41] - The percentage leased for properties as of June 30, 2024, was 71.4%, a decline of 10.6% from 82.0% in the same period of 2023[52] - The percentage commenced for properties as of June 30, 2024, was 70.7%, down from 74.6% in Q1 2024, reflecting a decrease of 3.9%[41] - The company reported a decrease in the percentage commenced for the same property portfolio to 70.7% as of June 30, 2024, down from 78.2% in June 2023[87] Assets and Liabilities - Total assets as of June 30, 2024, increased to $2,463,741,000 from $2,425,041,000 as of December 31, 2023, reflecting a growth of approximately 1.6%[43] - Total liabilities decreased to $25,954,000 as of June 30, 2024, from $34,928,000 as of December 31, 2023, a reduction of approximately 25.7%[24] - Accounts receivable increased to $1,780,000 from $742,000 in the previous period[70] - Total accrued liabilities decreased to $19,585,000 from $27,298,000[70] Market Capitalization - Total market capitalization as of June 30, 2024, was $2,386,287,000, an increase from $2,172,889,000 in Q1 2024, showing a growth of approximately 9.8%[22] - Total capital expenditures for the three months ended June 30, 2024, amounted to $2,696 million, compared to $2,557 million for the same period in 2023, indicating an increase of 5.4%[90] Tenant and Lease Information - Total tenant improvements (TI) and leasing commissions (LC) amounted to $513,000, with $147,000 for new leases and $366,000 for renewal leases[64] - Total square feet leased during the period includes 24 leases, with 4 new leases and 20 renewal leases[64] - Major tenants representing 2.5% or more of annualized rental revenue account for 45.4% of total square feet and 47.9% of annualized rental revenue[65] - The weighted average lease term by square foot is 5.6 years for new leases and 4.0 years for renewal leases[64] - The total tenant improvements per square foot for the three months ended June 30, 2024, was $36.67, reflecting the costs associated with new leases[88] Strategic Focus - The company plans to focus on market expansion and new product development to drive future growth[50] Additional Metrics - The percentage of annualized rental revenue expiring in 2024 was 4.3%, with a total of $2,241 million in annualized rental revenue expiring[94] - The weighted average common shares outstanding for the three months ended June 30, 2024, was 107,578 million, a decrease from 110,196 million in the previous year[82] - The company reported a weighted average of 107,416 common shares outstanding for the three months ended June 30, 2024, compared to 109,839 for the same period in 2023[118] - EBITDA for the period is calculated as net income excluding interest expense, income tax expense, and depreciation and amortization, providing a measure of operating performance[100] - Net Operating Income (NOI) is defined as income from real estate minus property operating expenses, excluding certain costs, and is used to evaluate property-level performance[103] - The NOI margin is calculated as NOI divided by total revenues, providing insight into operational efficiency[105] - The company emphasizes that EBITDA, EBITDAre, and Adjusted EBITDAre are non-GAAP measures and should be considered alongside GAAP measures for a comprehensive view of financial performance[100]