Equity Commonwealth(EQC) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The gross sale price of the last property sold was $132.5 million, with a net purchase price of approximately $124.4 million after credits [4] - Since 2014, the company has sold over $7.9 billion in assets, including 168 properties and 3 land parcels, totaling 45.8 million square feet, for an aggregate gross sales price of $7.2 billion [5] - The company has retired $3.4 billion of debt and preferred shares, repurchased $652 million of common shares, and paid $3.8 billion in distributions to common shareholders [5] - As of December 31, net assets in liquidation are approximately $179 million, with an updated estimated aggregate shareholder liquidating distribution range of $20.55 to $20.70 per common share [9] Business Line Data and Key Metrics Changes - The company has successfully executed the sale of all its real estate assets, completing the wind-down process [5][10] - The liquidation preference for Series D preferred shares was paid in December for $123.3 million [6] Market Data and Key Metrics Changes - The company anticipates making its final distribution in mid-April, with common shares expected to be delisted from the New York Stock Exchange the day before the final distribution payment date [10][11] Company Strategy and Development Direction - The company has adopted a liquidation basis of accounting for its 2024 10-K in accordance with GAAP, recognizing assets at the amount expected to be collected and accruing estimated expenses [8] - The focus has been on executing the wind-down process prudently and efficiently, with significant progress made in the sales of the remaining assets [12] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the progress made, particularly with the sales of the four remaining assets over the last few months [12] - The company does not anticipate any future distributions from the liquidating trust after the final distribution [10] Other Important Information - The company plans to transfer remaining assets and liabilities to a Maryland liquidating trust, with common shares converted into beneficial interest units on a one-for-one basis [11] - The company expects to qualify as a REIT in 2025 until the transfer to the liquidating trust [12] Q&A Session Summary - No specific questions or answers were recorded in the provided content.