Equity Commonwealth (EQC) 2024 Q4 法說會逐字稿

Good afternoon and thanks for joining this call to discuss Equity Commonwealth's progress for the year ending December 31, 2024. and an update on the wind down process.

下午好，感謝您參加本次電話會議，討論 Equity Commonwealth 截至 2024 年 12 月 31 日的年度進展。以及清算流程的最新進展。

At this time, all participants are on a listen-only mode. A question-and-answer session will follow the formal presentation. (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 the federal security laws.

此時，所有參與者都處於只聽模式。正式演講結束後將進行問答環節。（操作員指示）提醒一下，本次會議正在錄音。請注意，本次電話會議中討論的某些事項可能構成聯邦安全法所定義的前瞻性陳述。

Please refer to this section titled forward-looking Statements in the press release issued yesterday, as well as the section titled Risk factors in the Company's report on Form 10K. Quarterly reports on Form 10Q for subsequent quarters and in our definitive process.

請參閱昨天發布的新聞稿中標題為「前瞻性聲明」的部分，以及公司 10K 表格報告中標題為「風險因素」的部分。以 10Q 表格形式提交後續季度和最終流程的季度報告。

On schedule 14A 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.

2024 年 10 月 2 日提交的 14A 表中討論了可能導致公司實際結果與任何前瞻性陳述有重大差異的因素。

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.

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

On the call today are David Helfen, President and CEO David Weinberg, COO and Bill Griffiths, CFO. With that, I'll turn the call over to Bill Griffiths.

參加今天電話會議的有總裁兼執行長 David Helfen、營運長 David Weinberg 和財務長 Bill Griffiths。說完這些，我將把電話轉給比爾‧格里菲斯。

Thanks. Good morning, everyone or good afternoon, everyone. Thanks for joining us. I’ll review the company’s progress for the year as well as provide an update on our wind down process. We are excited to announce that the sale of 1225 Seventeenth Street Plaza in Denver closed this past Tuesday, February 25.

謝謝。大家早安或下午好。感謝您的加入。我將回顧公司今年的進展並提供關於我們的清算流程的最新資訊。我們很高興地宣布，丹佛第十七街廣場 1225 號的出售已於 2 月 25 日星期二完成。

The gross sale price was $132.5 million, and the net purchase price was approximately $124.4 million after credits primarily for contractual lease costs. With this sale completed, we have successfully executed on the sale of all of the company's real estate assets.

總售價為 1.325 億美元，扣除額主要為合約租賃成本後的淨購買價約為 1.244 億美元。隨著此次出售的完成，我們已成功完成公司所有房地產資產的出售。

Since taking responsibility for EQC in 2014. We have sold over $7.9 billion in assets, disposing of 168 properties and three land parcels totalling 45.8 million square feet for an aggregate gross sales price of $7.2 billion as well as $704.8 million of common shares of Select Income REIT.

自 2014 年負責 EQC 以來。我們已出售價值超過 79 億美元的資產，共處置了 168 處房產和三塊土地，總面積達 4,580 萬平方英尺，總銷售價格為 72 億美元，同時也處置了價值 7.048 億美元的 Select Income REIT 普通股。

In addition, we have retired $3.4 billion of debt and preferred shares. We purchased 652 million of our common shares and paid $3.8 billion in distributions to our common shareholders.

此外，我們還償還了 34 億美元的債務和優先股。我們回購了 6.52 億股普通股，並向普通股股東支付了 38 億美元的分配。

We also would like to update you on what we've accomplished since our last call-in late October. At our November 12, special shareholder meeting, our shareholders approved the plan of sale with 99% of votes cast in favour of the plan.

我們也想向您通報自 10 月底上次電話會議以來我們取得的進展。在 11 月 12 日的特別股東大會上，我們的股東以 99% 的讚成票批准了出售計畫。

In December we paid the liquidation preference and retired the Series D preferred shares for $123.3 million. Also, in December we paid our common shareholders an initial liquidating distribution of $19 per share. And finally, we sold our four remaining properties 1250 H Street in Washington, 206 East 9th Street, and Bridgepoint Square in Austin, Texas. And 1225 17th Street Plaza in Denver, Colorado.

12月，我們支付了清算優先權，並以1.233億美元的價格贖回了D系列優先股。此外，12 月我們向普通股股東支付了每股 19 美元的初始清算分配。最後，我們出售了剩下的四處房產，分別是華盛頓 H 街 1250 號、東 9 街 206 號和德克薩斯州奧斯汀的 Bridgepoint Square。以及科羅拉多州丹佛市 17 街廣場 1225 號。

As a result of our plan of sale, we have adopted liquidation basis of accounting for our 202410K in accordance with GAAP. Under this accounting method, assets are recognized at the amount expected to be collected, and our estimated expenses, including wind down costs, are accrued in full as of December 31, 2024.

根據我們的銷售計劃，我們根據 GAAP 對 202410K 採用了清算會計基礎。根據此會計方法，資產按預期收回的金額確認，且我們的估計費用（包括清算成本）截至 2024 年 12 月 31 日全額累積。

Future quarter's financials will outline changes to the estimates in a statement of changes in net assets. As of December 31, our net assets and liquidation are approximately $179 million which are estimated based on projected expenses to be incurred during the period required to complete the plan of sale.

未來季度的財務狀況將在淨資產變動表中概述估計的變化。截至 12 月 31 日，我們的淨資產和清算金額約為 1.79 億美元，這是根據完成銷售計劃所需期間產生的預計費用估算的。

As a result, we are updating the estimated aggregate shareholder liquidating distribution range from $20 to $21 per common share previously announced in November to an estimated range of $20.55 to $20.70 per common share inclusive of the $19 per share distribution paid in December.

因此，我們將 11 月宣布的預期股東清算分配總額範圍從每股普通股 20 美元至 21 美元更新為每股普通股 20.55 美元至 20.70 美元，其中包括 12 月支付的每股 19 美元的分配。

Looking ahead, we anticipate making our final distribution in mid-April.

展望未來，我們預計將在四月中旬進行最終分配。

Given the execution on the sale of all of our assets and the reasonable certainty of our remaining liabilities, this will be the last distribution made while we are a public company, and we do not anticipate any future distributions from the liquidating trust.

鑑於我們所有資產的出售執行情況以及我們剩餘負債的合理確定性，這將是我們作為上市公司進行的最後一次分配，並且我們預計清算信託不會進行任何未來分配。

We expect that the company's common shares will be delisted from the New York Stock Exchange the day before the final distribution payment date. Following that payment, we plan to move forward and transfer the remaining assets and liabilities to a Maryland liquidating trust, and the common shares will be converted into beneficial interest units in the trust on a one for one basis.

我們預計該公司普通股將在最終分配付款日的前一天從紐約證券交易所下市。付款後，我們計劃繼續將剩餘資產和負債轉移到馬裡蘭州清算信託，普通股將以一對一的方式轉換為信託中的受益權單位。

Concurrently with the transfer, we expect that the company will be deregistered with the SEC. We expect to qualify as a REIT in 2025 until the transfer to the liquidating trust.

在轉讓的同時，我們預計該公司將在證券交易委員會註銷註冊。我們預計在 2025 年獲得房地產投資信託基金 (REIT) 資格，直至轉移到清算信託。

We've been focused on executing the wind down process prudently and efficiently. We are proud of the progress to date, particularly with the sales of the 4 remaining assets over the last few months.

我們一直致力於謹慎、有效率地執行清算流程。我們對迄今為止的進展感到自豪，特別是過去幾個月剩餘 4 項資產的出售。

We appreciate the support we've received from our shareholders and want to acknowledge the continued hard work and dedication of the EQC team.

我們感謝股東給予的支持，並感謝 EQC 團隊的持續努力和奉獻。

With that, David and I are happy to take your questions.

因此，大衛和我很樂意回答您的問題。

(Operator Instructions). There are no questions at this time. At this point I'd like to turn the call back over to management for closing comments.

（操作員指令）。目前沒有問題。現在，我想將電話轉回給管理層，請他們發表最後評論。

Thanks again for joining us.

再次感謝您的加入。

This includes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

這包括今天的會議。現在您可以斷開線路，感謝您的參與。