Announcement • Feb 27
An undisclosed buyer acquired the 709,402 square foot office property in Denver, Colorado from Equity Commonwealth (NYSE:EQC). An undisclosed buyer agreed to acquire 709,402 square foot office property in Denver, Colorado from Equity Commonwealth (NYSE:EQC) for approximately $130 million on February 10, 2025. The sale is scheduled to close in late February 2025. The transaction is subject to customary closing conditions. CBRE and Newmark acted as brokers in the transaction.
An undisclosed buyer acquired the 709,402 square foot office property in Denver, Colorado from Equity Commonwealth (NYSE:EQC) for approximately on February 25, 2025. Announcement • Feb 12
An undisclosed buyer agreed to acquire 709,402 square foot office property in Denver, Colorado from Equity Commonwealth (NYSE:EQC) for approximately $130 million. An undisclosed buyer agreed to acquire 709,402 square foot office property in Denver, Colorado from Equity Commonwealth (NYSE:EQC) for approximately $130 million on February 10, 2025. The sale is scheduled to close in late February 2025. The transaction is subject to customary closing conditions. CBRE and Newmark acted as brokers in the transaction. Announcement • Jan 30
Equity Commonwealth to Report Q4, 2024 Results on Feb 27, 2025 Equity Commonwealth announced that they will report Q4, 2024 results Pre-Market on Feb 27, 2025 Announcement • Nov 16
Equity Commonwealth Declares Initial Cash Liquidating Distribution, Payable on December 6, 2024 Equity Commonwealth announced that its Board of Trustees has authorized an initial cash liquidating distribution of $19.00 per common share (the Initial Liquidating Distribution) which will be paid on December 6, 2024 to shareholders of record on November 25, 2024. The Company is also updating the estimated aggregate shareholder liquidating distribution range of $19.50 to $21.00 per common share disclosed in its definitive proxy statement filed on October 2, 2024 (the Definitive Proxy) to an estimated aggregate shareholder liquidating distribution range of $20.00 to $21.00 per common share. In addition, the Company announced that, in connection with the Initial Liquidating Distribution, the New York Stock Exchange (“NYSE”) has determined that the ex-dividend date for the Initial Liquidating Distribution will be December 9, 2024 (the Ex-Dividend Date), the first business day after the payment date. Reported Earnings • Oct 24
Third quarter 2024 earnings released: US$0.26 loss per share (vs US$0.22 profit in 3Q 2023) Third quarter 2024 results: US$0.26 loss per share (down from US$0.22 profit in 3Q 2023). Revenue: US$14.0m (down 8.0% from 3Q 2023). Net loss: US$28.2m (down 217% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Sep 26
Equity Commonwealth to Report Q3, 2024 Results on Oct 24, 2024 Equity Commonwealth announced that they will report Q3, 2024 results After-Market on Oct 24, 2024 Reported Earnings • Aug 01
Second quarter 2024 earnings released: FFO per share: US$0.2 (vs US$0.17 in 2Q 2023) Second quarter 2024 results: FFO per share: US$0.2 (up from US$0.17 in 2Q 2023). Revenue: US$14.1m (down 3.3% from 2Q 2023). Funds from operations (FFO): US$26.4m (up 44% from 2Q 2023). Over the last 3 years on average, earnings per share has increased by 105% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Jul 27
Irenic Capital Calls on Equity Commonwealth to Pursue a Liquidation On July 26, 2024, Irenic Capital Management LP announced that it has issued a statement with Equity Commonwealth regarding the need for the Company’s Board of directors to heed shareholder feedback and pursue a liquidation of the Company. In addition, Irenic Capital stated that after a decade of underperformance, it is time for Company’s Board to focus exclusively on an orderly liquidation, this value-maximizing path offers certainty for shareholders, who are clearly opposed to gambling on any transformative acquisition, and agreed with Indaba Capital and Land & Buildings, and urged the Board to heed the clear shareholder feedback and commit to scheduling a vote on a prospective liquidation when 2nd quarter earnings are announced. Announcement • Jul 23
Indaba Capital Issues an Opens Letter to Equity Commonwealth On July 22, 2024, Indaba Capital Management, L.P. issued an open letter to Equity Commonwealth’s Board of Trustees regarding the need to protect shareholders’ capital and prioritize their best interests following years of financial underperformance. In the letter, Indaba Capital Management makes clear that the Board’s arbitrary end-of-year deadline for deciding between a major transaction or liquidation incentivizes poor decision-making and reckless capital allocation. Indaba Capital Management also stated that it reminds the Board it has presided over a decade of poor financial performance and lacks any track record of effectively allocating capital to value-enhancing acquisitions. Indaba Capital Management added that it urges the Board to stop wasting Company resources and embrace shareholder-friendly governance by convening a vote on a prospective liquidation. Announcement • Jul 04
Equity Commonwealth to Report Q2, 2024 Results on Jul 30, 2024 Equity Commonwealth announced that they will report Q2, 2024 results After-Market on Jul 30, 2024 Reported Earnings • May 02
First quarter 2024 earnings released: EPS: US$0.22 (vs US$0.19 in 1Q 2023) First quarter 2024 results: EPS: US$0.22 (up from US$0.19 in 1Q 2023). Revenue: US$15.2m (down 2.5% from 1Q 2023). Net income: US$23.4m (up 13% from 1Q 2023). Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Announcement • Mar 29
Equity Commonwealth to Report Q1, 2024 Results on May 01, 2024 Equity Commonwealth announced that they will report Q1, 2024 results After-Market on May 01, 2024 Reported Earnings • Feb 14
Full year 2023 earnings released: FFO per share: US$0.9 (vs US$0.42 in FY 2022) Full year 2023 results: FFO per share: US$0.9 (up from US$0.42 in FY 2022). Revenue: US$60.5m (down 4.1% from FY 2022). Funds from operations (FFO): US$100.9m (up 115% from FY 2022). Over the last 3 years on average, earnings per share has fallen by 31% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Jan 12
Equity Commonwealth to Report Q4, 2023 Results on Feb 12, 2024 Equity Commonwealth announced that they will report Q4, 2023 results After-Market on Feb 12, 2024 New Risk • Dec 29
New major risk - Revenue and earnings growth Earnings have declined by 46% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Major Estimate Revision • Nov 15
Consensus EPS estimates increase by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from US$59.0m to US$60.2m. EPS estimate increased from US$0.68 to US$0.75 per share. Net income forecast to grow 6.2% next year vs 15% decline forecast for Office REITs industry in the US. Consensus price target of US$20.00 unchanged from last update. Share price was steady at US$19.20 over the past week. Reported Earnings • Oct 31
Third quarter 2023 earnings: EPS and revenues exceed analyst expectations Third quarter 2023 results: EPS: US$0.22 (up from US$0.092 in 3Q 2022). Revenue: US$15.2m (flat on 3Q 2022). Net income: US$24.1m (up 137% from 3Q 2022). Revenue exceeded analyst estimates by 4.9%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Revenue is expected to decline by 5.4% p.a. on average during the next 2 years, while revenues in the Office REITs industry in the US are expected to grow by 3.9%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Announcement • Sep 29
Equity Commonwealth to Report Q3, 2023 Results on Oct 30, 2023 Equity Commonwealth announced that they will report Q3, 2023 results on Oct 30, 2023 Recent Insider Transactions • Aug 11
Executive VP recently sold US$963k worth of stock On the 10th of August, Orrin Shifrin sold around 50k shares on-market at roughly US$19.26 per share. This transaction amounted to 24% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$2.3m more than they bought in the last 12 months. New Risk • Jul 29
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: FFO per share: US$0.2 (up from US$0.044 in 2Q 2022). Revenue: US$14.6m (down 6.1% from 2Q 2022). Funds from operations (FFO): US$18.3m (up 254% from 2Q 2022). Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 40%. Revenue is forecast to stay flat during the next 2 years compared to a 4.7% growth forecast for the Office REITs industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Announcement • Jun 28
Equity Commonwealth to Report Q2, 2023 Results on Jul 26, 2023 Equity Commonwealth announced that they will report Q2, 2023 results at 4:00 PM, US Eastern Standard Time on Jul 26, 2023 Announcement • May 20
Equity Commonwealth Appoints David Helfand as Chair of the Board of Trustees Equity Commonwealth announced that its Board of Trustees has named David Helfand to serve as the Chair of the Board, effective immediately. Mr. Helfand has served as the company’s President and Chief Executive Officer since 2014 and will continue in those roles. Announcement • May 19
Equity Commonwealth Announces Demise of Sam Zell as Chairman of the Board Equity Commonwealth announced that Sam Zell, its Chairman of the Board of Trustees, died on May 18, 2023 due to complications from a recent illness. Sam served as Chairman since took responsibility for EQC in May 2014. Sam also served as the chairman of Equity Group Investments, the private investment firm he founded more than 50 years ago, and chaired two other companies listed on the New York Stock Exchange: Equity Residential and Equity LifeStyle Properties. Major Estimate Revision • May 11
Consensus EPS estimates increase by 26% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from US$59.9m to US$60.8m. EPS estimate increased from US$0.57 to US$0.72 per share. Net income forecast to grow 48% next year vs 28% decline forecast for Office REITs industry in the US. Consensus price target down from US$21.50 to US$21.00. Share price was steady at US$20.58 over the past week. Reported Earnings • May 05
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: US$0.19 (up from US$0.006 loss in 1Q 2022). Revenue: US$15.6m (down 6.7% from 1Q 2022). Net income: US$20.7m (up US$21.4m from 1Q 2022). Revenue exceeded analyst estimates by 3.8%. Earnings per share (EPS) also surpassed analyst estimates by 36%. Revenue is forecast to stay flat during the next 2 years compared to a 5.3% growth forecast for the Office REITs industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 102 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$21.28, the stock trades at a forward P/E ratio of 73x. Average forward P/E is 36x in the REITs industry in the US. Total loss to shareholders of 6.1% over the past three years. Announcement • Feb 14
Equity Commonwealth Declares Special Cash Distribution, Payable on March 9, 2023 Equity Commonwealth announced that its Board of Trustees has declared a special, one-time cash distribution of $4.25 per common share which will be paid on March 9, 2023 to shareholders of record on February 23, 2023. Reported Earnings • Feb 09
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: FFO per share: US$0.4 (up from US$0.056 loss in FY 2021). Revenue: US$63.1m (up 8.9% from FY 2021). Funds from operations (FFO): US$46.9m (up US$53.7m from FY 2021). FFO margin: 74% (up from net loss in FY 2021). The move to profitability was primarily driven by lower expenses. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) also surpassed analyst estimates by 44%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 102 percentage points per year, which is a significant difference in performance. Announcement • Jan 11
Equity Commonwealth to Report Q4, 2022 Results on Feb 08, 2023 Equity Commonwealth announced that they will report Q4, 2022 results at 4:00 PM, US Eastern Standard Time on Feb 08, 2023 Major Estimate Revision • Nov 23
Consensus EPS estimates increase by 1,700% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$58.2m to US$61.5m. EPS estimate increased from US$0.01 to US$0.18 per share. Net income forecast to grow 319% next year vs 7.3% decline forecast for REITs industry in the US. Consensus price target down from US$28.50 to US$25.50. Share price rose 2.5% to US$26.43 over the past week. Price Target Changed • Nov 22
Price target decreased to US$25.50 Down from US$28.50, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of US$26.38. Stock is up 2.1% over the past year. The company is forecast to post earnings per share of US$0.18 next year compared to a net loss per share of US$0.20 last year. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. No experienced directors. 7 highly experienced directors. Independent Trustee Ellen-Blair Chube was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 26
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: FFO per share: US$0.1 (up from US$0.002 loss in 3Q 2021). Revenue: US$15.1m (up 9.0% from 3Q 2021). Funds from operations (FFO): US$14.5m (up US$14.8m from 3Q 2021). FFO margin: 96% (up from net loss in 3Q 2021). The move to profitability was primarily driven by lower expenses. Revenue missed analyst estimates by 3.3%. Earnings per share (EPS) exceeded analyst estimates. Revenue is expected to decline by 26% p.a. on average during the next 2 years, while revenues in the REITs industry in the US are expected to grow by 7.0%. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. Announcement • Sep 29
Equity Commonwealth to Report Q3, 2022 Results on Oct 25, 2022 Equity Commonwealth announced that they will report Q3, 2022 results After-Market on Oct 25, 2022 Recent Insider Transactions • Sep 22
Executive VP recently sold US$1.3m worth of stock On the 20th of September, Orrin Shifrin sold around 50k shares on-market at roughly US$26.95 per share. This transaction amounted to 21% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Upcoming Dividend • Sep 21
Upcoming dividend of US$1.00 per share Eligible shareholders must have bought the stock before 28 September 2022. Payment date: 18 October 2022. The company last paid an ordinary dividend in October 2011. The average dividend yield among industry peers is 3.8%. Announcement • Sep 10
Equity Commonwealth Declares Special Cash Distribution, Payable on October 18, 2022 Equity Commonwealth announced that its Board of Trustees has declared a special, one-time cash distribution of $1.00 per common share which will be paid on October 18, 2022 to shareholders of record on September 29, 2022. Reported Earnings • Aug 02
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: FFO: US$15.5m per share (up from US$0.004 in 2Q 2021). Revenue: US$15.5m (up 4.5% from 2Q 2021). Funds from operations (FFO): US$5.18m (up US$4.73m from 2Q 2021). FFO margin: 33% (up from 3.0% in 2Q 2021). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 5.2%. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is expected to shrink by 16% compared to a 9.2% growth forecast for the industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. Seeking Alpha • Jul 22
Equity Commonwealth Charges You Nothing For Sam Zell EQC is still looking for that big deal, but with real estate market giving up gains, possibilities look better for Sam Zell to place capital.
Currently the company trades at book value and is mostly cash, charging you nothing for Sam Zell's expertise.
While scope to develop assets is harangued by supply side issues, there are many good ways this can go over the next couple of years thanks to market troubles.
Equity Commonwealth (EQC) is a real estate investment trust ("REIT") vehicle whose trustees are led by the legendary real estate investor Sam Zell that currently trades at book value. It has been sitting almost entirely in cash for a couple of years after some exits pre-COVID as it looked for serious real estate investments that could add numbers to Sam's legendary returns. Now with rates rising, that cash could find better uses in Sam Zell's hands when real-estate markets have become better priced.
Due to the value you get by getting Sam Zell's expertise without a premium on his vehicle, where something like that for Bill Ackman or Warren Buffett would be impossible, we think EQC could be attractive for investors.
Real Estate Challenges
It's been good to have been out of the markets for a while. Major commercial real estate categories carries some risks. Office real estate is still quite uncertain due to the permanence of hybrid working, and there is a real risk that the current footprint constitutes an oversupply. Higher rates are creating an environment where investors are looking for bargains while sellers hang on to the hope of pre-scare valuations. Falling liquidity is creating uncertainty on the buyside with exit prices harder to determine.
The real estate market has slowed down to the detriment of savvy buyers like EQC for the time being, but once the new regime becomes accepted, in particular as higher CPI rates continue to create a basis for greater than expected rate hikes, the landscape is becoming fallow ground for Sam Zell and Co. to splash the EQC cash that they've been sitting on for years. Cap rates are going to have to rise at some point as lenders and buyers together crimp the market on uncertainties, and a high conviction investment will be able to create value in the current environment.
Opportunities are beginning to grow in retail, which has been working through its oversupply for a decade now. Industrial real estate, which has been difficult to develop on supply chain issues, might constitute an interesting opportunity as well on the basis that geopolitical tension is requiring shoring of inventory and government support of local production in a spiraling response to growing mercantilism. Multi-family might be the most attractive of all, with the housing shortage a secular concern, and latent demographic trends supporting demand for multi-family living. With security of rent-growth being a major factor for opening up financing options, things look really good.
Sam Zell and EQC
Sam Zell has an aggressive investment philosophy focusing on contrarianism but also defense against capital impairment, which any successful investor must do. He made his fortune investing in abandoned developments in the '70s. The market may not be quite at that point now with a deleveraging rather unlikely, but with cap rates rising and more tightness on the financing side, markets have become more ripe for EQC to capitalize on. In a more ebullient market environment, the risk with EQC is that it is dead capital, and that it would get eroded away by opportunity cost and now inflation. With more possibility of a major allocation these risks have diminished, and the key question of value comes into play. Reported Earnings • May 05
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: FFO: US$16.7m per share (up from US$0.064 loss in 1Q 2021). Revenue: US$16.7m (up 12% from 1Q 2021). Funds from operations (FFO): US$3.68m (up US$11.4m from 1Q 2021). FFO margin: 22% (up from net loss in 1Q 2021). The move to profitability was primarily driven by lower expenses. Revenue exceeded analyst estimates by 18%. Earnings per share (EPS) also surpassed analyst estimates. Over the next year, revenue is expected to shrink by 5.6% compared to a 10% growth forecast for the industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 61 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. Independent Trustee Ellen-Blair Chube was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Apr 07
Equity Commonwealth to Report Q1, 2022 Results on May 04, 2022 Equity Commonwealth announced that they will report Q1, 2022 results After-Market on May 04, 2022 Reported Earnings • Feb 11
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: US$0.20 loss per share (down from US$3.64 profit in FY 2020). Revenue: US$58.0m (down 13% from FY 2020). Net loss: US$24.4m (down 106% from profit in FY 2020). Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 4.8%. Over the next year, revenue is expected to shrink by 6.1% compared to a 9.8% growth forecast for the reits industry in the US. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Announcement • Jan 30
Equity Commonwealth Announces Promotion of William H. Griffiths to Executive Vice President, Chief Financial Officer and Treasurer of the Company On January 26, 2022, the Board of Trustees of Equity Commonwealth promoted William (Bill) H. Griffiths from Senior Vice President, Chief Financial Officer and Treasurer of the Company to Executive Vice President, Chief Financial Officer and Treasurer of the Company, effective February 14, 2022. On January 26, 2022, EQC's Compensation Committee approved, among other items, the following compensation-related actions for Mr. Griffiths. These compensation-related actions recognize Mr. Griffiths' increased responsibilities following his promotion from Senior Vice President - Capital Markets to Senior Vice President, Chief Financial Officer and Treasurer of the Company (as approved by the Board of Trustees on March 1, 2021 and effective as of April 1, 2021), Mr. Griffiths' contributions to the Company during 2021, and Mr. Griffiths' promotion to Executive Vice President,Chief Financial Officer and Treasurer of the Company. Board Change • Dec 05
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. Independent Trustee Ellen-Blair Chube was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 30
Third quarter 2021 earnings released: US$0.039 loss per share (vs US$0.013 loss in 3Q 2020) The company reported a poor third quarter result with increased losses, weaker revenues and weaker control over costs. Third quarter 2021 results: Revenue: US$13.9m (down 16% from 3Q 2020). Net loss: US$4.81m (loss widened 195% from 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Jul 29
Second quarter 2021 earnings released: US$0.032 loss per share (vs US$0.21 profit in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and control over costs. Second quarter 2021 results: Revenue: US$14.9m (down 8.5% from 2Q 2020). Net loss: US$3.93m (down 115% from profit in 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 7% per year whereas the company’s share price has fallen by 6% per year. Major Estimate Revision • Jul 10
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from US$48.3m to US$65.7m. EPS estimate unchanged from -US$0.19 at last update. REITs industry in the US expected to see average net income growth of 12% next year. Consensus price target of US$29.25 unchanged from last update. Share price was steady at US$26.80 over the past week. Reported Earnings • May 05
First quarter 2021 earnings released: US$0.082 loss per share (vs US$3.46 profit in 1Q 2020) The company reported a poor first quarter result with weaker earnings, revenues and control over costs. First quarter 2021 results: Revenue: US$14.9m (down 21% from 1Q 2020). Net loss: US$10.0m (down 102% from profit in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Executive Departure • Apr 02
Executive VP, CFO & Treasurer has left the company On the 31st of March, Adam Markman's tenure as Executive VP, CFO & Treasurer ended after 6.7 years in the role. As of December 2020, Adam personally held 207.29k shares (US$5.7m worth at the time). A total of 2 executives have left over the last 12 months. Major Estimate Revision • Feb 28
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from US$3.61 to US$1.96. No change was made to the revenue estimate which at the last update was US$58.9m. Net income is expected to shrink by 104% next year compared to 1.9% growth forecast for the REITs industry in the US . The consensus price target of US$30.75 was unchanged from the last update. Share price stayed mostly flat at US$28.21 over the past week. Major Estimate Revision • Feb 20
Analysts update estimates The 2021 consensus revenue estimate was lowered from US$59.9m to US$58.9m. The company is forecast to report a profit instead of a loss with analysts raising their EPS forecasts from -US$0.13 to US$3.61 for the same period. The REITs industry in the US is expected to see an average net income growth of 1.0% next year. The consensus price target of US$30.75 was unchanged from the last update. Share price is down by 2.4% to US$28.25 over the past week. Reported Earnings • Feb 12
Full year 2020 earnings released: FFO US$0.13 per share (vs US$0.73 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: US$66.3m (down 48% from FY 2019). Funds from operations (FFO): US$15.8m (down 82% from FY 2019). FFO margin: 24% (down from 70% in FY 2019). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue beats expectations Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is expected to shrink by 9.6% compared to a 3.0% growth forecast for the REITs industry in the US. Is New 90 Day High Low • Feb 02
New 90-day high: US$28.60 The company is up 7.0% from its price of US$26.84 on 03 November 2020. The American market is up 16% over the last 90 days, indicating the company underperformed over that time. It also underperformed the REITs industry, which is up 8.0% over the same period. Is New 90 Day High Low • Jan 15
New 90-day high: US$27.49 The company is up 2.0% from its price of US$26.94 on 16 October 2020. The American market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the REITs industry, which is up 3.0% over the same period. Announcement • Jan 08
Equity Commonwealth to Report Q4, 2020 Results on Feb 10, 2021 Equity Commonwealth announced that they will report Q4, 2020 results After-Market on Feb 10, 2021 Announcement • Nov 20
James Corl Resigns from Equity Commonwealth's Board of Trustees Equity Commonwealth announced that James Corl, who has served as a Trustee since May 2014, resigned from the company’s Board of Trustees effective November 19, 2020. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total funds from operations (FFO) of US$89.7m, down 6.1% from the prior year. Total revenue was US$77.6m over the last 12 months, down 46% from the prior year. Analyst Estimate Surprise Post Earnings • Oct 30
Third-quarter earnings released: Revenue and earnings beat expectations Third-quarter revenue exceeded analyst estimates by 3.3% at US$16.5m. Earnings per share (EPS) also surpassed analyst estimates by 12% at -US$0.01. Revenue is expected to shrink by 18% over the next year, compared to a 1.8% growth forecast for the REITs industry in the US. Is New 90 Day High Low • Oct 20
New 90-day low: US$26.41 The company is down 17% from its price of US$31.69 on 22 July 2020. The American market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the REITs industry, which is up 3.0% over the same period. Price Target Changed • Oct 07
Price target lowered to US$32.25 Down from US$36.50, the current price target is provided by 1 analyst. The new target price is 18% above the current share price of US$27.36. As of last close, the stock is down 12% over the past year. Announcement • Oct 01
Equity Commonwealth to Report Q3, 2020 Results on Oct 28, 2020 Equity Commonwealth announced that they will report Q3, 2020 results at 5:00 PM, Eastern Standard Time on Oct 28, 2020 Announcement • Sep 18
Equity Commonwealth Appoints Ellen-Blair Chube to Board of Trustees Equity Commonwealth announced the appointment of Ellen-Blair Chube to the company’s Board of Trustees until the next annual meeting of shareholders. Equity Commonwealth’s Board of Trustees has determined that Ms. Chube, who will serve as a member of the Company’s Nominating and Corporate Governance Committee, qualifies as an independent trustee under the New York Stock Exchange listing standards. Ms. Chube is a Partner, Managing Director and Client Service Officer at William Blair, a global boutique investment bank and investment management company. Prior to joining William Blair in 2015, Ms. Chube was Vice President and Chief of Staff to the Chairman and CEO at Ariel Investments. Is New 90 Day High Low • Sep 18
New 90-day low: US$30.23 The company is down 4.0% from its price of US$31.56 on 19 June 2020. The American market is up 10.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the REITs industry, which is up 4.0% over the same period.