Equity Commonwealth (EQC) 2024 Q3 法說會逐字稿

Good morning. And thanks for joining this call to discuss Equity Commonwealth results for the quarter ending September 30, 2024, [in and] update on the company. (Operator Instructions)

早安.感謝您參加本次電話會議，討論截至 2024 年 9 月 30 日的季度 Equity Commonwealth 業績以及公司最新情況。（操作員說明）

As a reminder, this conference is being recorded. Please be advised, certain matters discussed during the conference call may constitute forward-looking statements within the meaning of federal securities laws.

提醒一下，本次會議正在錄製中。請注意，電話會議期間討論的某些事項可能構成聯邦證券法含義內的前瞻性陳述。

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 quarterly reports on form 10-Q for subsequent quarters. And in our definitive proxy statement on schedule 14, a filed-on October 2, 2024, for a discussion of factors that could cause the company's actual results to materially differ from any forward-looking statements.

請參閱昨天發布的新聞稿中標題為“前瞻性陳述”的部分以及公司年報中“10-K 表”季度報告中“10-Q 表”後續季度報告中“風險因素”部分。在我們於 2024 年 10 月 2 日提交的附表 14 的最終委託書中，討論了可能導致公司實際結果與任何前瞻性陳述存在重大差異的因素。

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.

該公司不承擔更新或補充今天所做的任何前瞻性陳述的義務。本公司在其網站 www.eqcre.com 上發布重要訊息，包括可能重要的資訊。

The portion of today's remarks regarding the company's quarterly earnings also includes certain non-GAAP financial measures. Please refer to yesterday's press release and supplemental containing the company's results for a reconciliation of these non-GAAP measures to the company's GAAP financial results. On the call today are David Helfand, President and CEO; David Weinberg, COO; and Bill Griffiths CFO.

今天有關公司季度收益的評論部分還包括某些非公認會計準則財務指標。請參閱昨天的新聞稿和包含公司績效的補充資料，以了解這些非公認會計原則措施與公司公認會計原則財務表現的調節。今天參加電話會議的是總裁兼執行長 David Helfand；大衛‧溫伯格，營運長；和比爾格里菲斯首席財務官。

With that, I will turn the call over to David Helfand.

這樣，我會將電話轉給大衛·赫爾芬德。

Thank you. Good morning. I'd like to provide some key updates on our progress, since our last call at the end of July. Our two Austin properties and our DC property are now under contract. These assets are held for sale on/or September 30 balance sheet. We recognized a $50 million non cash impairment charge in this quarter's financials.

謝謝。早安.我想提供一些自 7 月底上次通話以來我們進展的重要最新情況。我們在奧斯汀的兩處房產和華盛頓特區的房產現已簽約。這些資產在 9 月 30 日的資產負債表上持有待售。我們在本季的財務數據中確認了 5,000 萬美元的非現金減損費用。

The closing of these sales are expected to begin in early November and the buyers have posted non-refundable deposits. Pricing for the three sales plus our expectation for Denver in total remains consistent with the $234 million estimate we discussed on last quarter's call.

這些銷售預計將於 11 月初開始，買家已繳納不可退還的訂金。三筆銷售的定價加上我們對丹佛的整體預期仍然與我們在上個季度電話會議中討論的 2.34 億美元的估計值保持一致。

The marketing of 1225, 17th street in Denver commenced in September. So it's too early to provide an update on that process. We will provide more information on all of the dispositions as they progress. With respect to our upcoming special shareholder meeting, we've set a meeting date of November 12, for shareholders of record as of the close of business on October 1, to vote to approve the plan of sale as well, as the related advisory vote on sale on pay, plan of sale requires the affirmative vote of 2/3 of our outstanding common shares to be approved.

丹佛第 17 街 1225 號的行銷活動於 9 月開始。因此，現在提供該流程的最新資訊還為時過早。隨著所有處置的進展，我們將提供更多資訊。對於即將召開的特別股東大會，我們將會議日期定為 11 月 12 日，截至 10 月 1 日收盤時登記在冊的股東將投票批准出售計劃以及相關的諮詢投票在有償出售時，出售計劃需要獲得我們已發行普通股2/3 的贊成票才能獲得批准。

We continue to estimate the total distributions resulting from the plan of sale will be in the $19.50 to $21 per share range. Assuming shareholders approve the plan of sale, we will adopt liquidation basis accounting for our 2024 10-K. Under this method, assets are recognized that the amount expected to be collected and our estimated expenses including wind down costs will be accrued in full as of December 31, 2024.

我們繼續估計銷售計劃產生的總分配將在每股 19.50 美元至 21 美元範圍內。假設股東批准出售計劃，我們將採用清算基礎會計 2024 年 10-K。根據這種方法，資產被確認為預期收取的金額和我們的估計費用（包括逐步減少成本）將於 2024 年 12 月 31 日全額提列。

The year end and future quarters financials will outline any changes to the estimates and a statement of changes in net assets. Following shareholder approval of the plan of sale and subject to board approval, we will pay off the Series D preferred and declare a common distribution of $18 to $19 per share with the payments made in early December. The exact amount of the common distribution will depend on the status of the dispositions at that time.

年終和未來季度的財務狀況將概述估計的任何變化以及淨資產變化表。在股東批准銷售計劃並經董事會批准後，我們將償還 D 系列優先股，並宣布每股 18 至 19 美元的共同分配，並於 12 月初支付。共同分配的具體金額將取決於當時的處置狀況。

After all the remaining assets are sold, which we currently estimate to be, by the end of the first quarter of 202,5 we will distribute substantially all of our remaining cash, net of reserve for any remaining liabilities. Then sometime in the second quarter of next year, we expect to commence the NYSCD listing and SECD registration processes transfer the remaining assets and liabilities to a liquidating trust and complete other administrative tasks. With the goal substantially winding down. By the end of the second quarter, we continue to expect to qualify as a read in 2024 and 2025.

在所有剩餘資產出售後（我們目前預計到 202 年第一季末）5，我們將分配幾乎所有剩餘現金（扣除任何剩餘負債的準備金）。然後，我們預計在明年第二季的某個時候開始 NYSCD 上市和 SECD 註冊流程，將剩餘資產和負債轉移到清算信託並完成其他管理任務。隨著目標的逐步結束。到第二季末，我們繼續預計在 2024 年和 2025 年獲得閱讀資格。

So far, the disposition process has gone reasonably smoothly, but it remains a challenging time to sell office buildings. The ability to close one or more -- the inability of to close one or more of our dispositions will affect the timing for the overall wind down.

到目前為止，處置過程相當順利，但出售辦公大樓仍充滿挑戰。能夠關閉一項或多項處置－無法關閉一項或多項處置將影響整體結束的時間。

We are focused EQC on executing the wind down process prudently and efficiently. We'll continue to communicate our progress. We appreciate the support we've received from our shareholders and want to acknowledge the continued hard work and dedication of the EQC team. With that David, Bill and I are happy to take your questions.

我們將 EQC 的重點放在審慎、有效率地執行結束流程。我們將繼續通報我們的進展。我們感謝股東的支持，並感謝 EQC 團隊的持續努力和奉獻。大衛、比爾和我很樂意回答你的問題。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Thank you.

謝謝。

Craig mailman, Citi.

克雷格郵差，花旗銀行。

Hey, good morning guys. Just some clarifying questions to start. So David, you said the Series D pref, is that going to be paid the same day as the initial distribution? Or is there, could there be a difference there? I just got some questions about, when the exact timing of that would be assuming the vote goes through on the plan date that you guys have in the proxy.

嘿，早上好，夥計們。只需要澄清一些問題即可開始。那麼大衛，你說的 D 輪偏好，會在初始分配的同一天支付嗎？或者說有什麼不同嗎？我剛剛有一些問題，具體時間是假設投票在你們代理中的計劃日期進行。

Pay credit against the bill. The Series D preferred will be paid first. And then we expect to do the common distribution, few days later.

根據帳單支付信用額。D 系列優先股將先支付。然後我們預計幾天後進行共同分發。

Okay. So the Series D will be within that 30 day window, after the vote?

好的。那麼 D 系列將在投票後的 30 天窗口內進行？

Correct.

正確的。

Okay, perfect. And then on the asset sales, you guys -- have how much of a deposit is hard at this point of the total? Like is it really difficult for the buyers to walk away? Or is it an amount that, if they can't get financing they'd be willing to kind of eat at this point.

好的，完美。然後在資產出售方面，你們──目前總共有多少存款是困難的？買家真的很難走開嗎？或者，如果他們無法獲得融資，他們現在願意吃掉這個數字嗎？

Well, it's David, I guess it's in the buyer's perspective. Obviously, they can always walk regardless of the size of the deposit. The deposits range from 1% to 5% of the purchase prices and two of the buyers are all cash. So it's just one that is subject to financing risk.

嗯，是大衛，我想這是從買家的角度來看的。顯然，無論存款有多少，他們總是可以行走。定金為購買價格的1%至5%，其中兩位買家都是現金。所以這只是一個面臨融資風險的問題。

Okay. Perfect. And I know you guys said these could start to close in November. And but everything could be sold kind of by the end of first quarter. Is -- especially for the two buyers that are all cash. Is there an expected kind of close on those as of now? Or just trying to get a sense of the timing of these three assets relative to the timing of kind of the initial payment. And whether that initial payment could be closer to the $19 a share or the $18 a share, just a pretty wide window.

好的。完美的。我知道你們說過這些可能會在 11 月開始關閉。但到第一季末，所有東西都可以賣掉。是——特別是對於兩個全是現金的買家來說。截至目前，這些項目是否有預期的關閉？或者只是想了解這三種資產相對於初始付款的時間表。至於初始付款是否接近每股 19 美元或每股 18 美元，只是一個相當寬的窗口。

It's hard to say because closings are subject to certain conditions such as [stopwalls], etcetera and buyers have extension rights. So as David alluded to and said specifically in his opening remarks, we expect them to begin in early November and then just kind of continue thereafter and we'll be providing updates accordingly.

這很難說，因為關閉需要滿足某些條件，例如[阻擋牆]等，而買家擁有延期權利。因此，正如 David 在開場白中提到並特別指出的那樣，我們預計這些活動將於 11 月初開始，然後繼續進行，我們將提供相應的更新。

Okay? And, and as of now, just from a distribution perspective, you guys are sitting on close to $20.20 of cash and then assuming these three assets close, it's what, another $0.80 or so. So you're at the full $21 from just these three assets. And then, assuming you back into it feels like Denver is about, another call, a $60 of value there. So, you're getting to $20 to $60. So, are the wind down costs coming in higher than the $50 million that you guys had talked about originally or is that kind of still a good place to think about it?

好的？而且，截至目前，僅從分配的角度來看，你們擁有接近 20.20 美元的現金，然後假設這三項資產關閉，那就是另外 0.80 美元左右。因此，您僅從這三項資產中即可獲得 21 美元的全額收益。然後，假設你回到丹佛，感覺就像是，另一個電話，那裡價值 60 美元。因此，您將獲得 20 至 60 美元。那麼，逐步減少的成本是否高於你們最初討論的 5000 萬美元，或者這仍然是一個值得考慮的好地方？

Well, to answer your second question, first, the wind-down costs have not changed. So no, they're not coming in higher. And I'm just wondering in your math whether you've deducted the preferred in the cash?

好吧，回答你的第二個問題，首先，逐步成本沒有改變。所以不，他們的排名不會更高。我只是想知道你的數學中是否扣除了現金中的首選？

Yes, that's a good point. I forgot that. Okay, perfect. Thank you for that clarification. All right. Awesome. Thank you guys and congrats on getting these done. Thanks.

是的，這是一個很好的觀點。我忘記了。好的，完美。謝謝你的澄清。好的。驚人的。謝謝你們，恭喜你們完成了這些。謝謝。

Thanks Craig.

謝謝克雷格。

Thank you. We have no further questions at this time, Mr. Helfand and I would now like to turn the floor back over to you for closing comments.

謝謝。目前我們沒有其他問題了，赫爾芬德先生和我現在想將發言權交回給您進行結束評論。

Thank you and thanks for your time this morning. As we said, we'll continue to provide updates on our progress as we execute our plan of sale.

謝謝您，也謝謝您今天早上抽出時間。正如我們所說，我們將在執行銷售計劃時繼續提供最新進展。

Thank you.

謝謝。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。