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Equity Commonwealth (EQC)
NYSE:EQC
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Equity Commonwealth
(NYSE:EQC)
58Neutral
Equity Commonwealth (EQC) vs. S&P 500 (SPY)
Market Cap
$171.87M
Dividend YieldN/A
Average Volume (3M)793.63K
Price to Earnings (P/E)4.2
Beta (1Y)0.49
Revenue Growth-4.47%
EPS Growth-44.64%
CountryUS
Employees22
SectorReal Estate
Sector Strength74
IndustryREIT - Office
Share Statistics
EPS (TTM)0.39
Shares Outstanding107,421,250
10 Day Avg. Volume872,407
30 Day Avg. Volume793,628
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.97
Price to Cash Flow (P/CF)1.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.65Price Target Upside3.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
Equity Commonwealth Business Overview & Revenue Model
Company DescriptionEquity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's same property portfolio is comprised of 4 properties and 1.5 million square feet.
How the Company Makes MoneyEquity Commonwealth makes money primarily through the leasing and management of its office properties. The company generates revenue by renting out office spaces to a diverse tenant base, which includes businesses from various sectors. Lease agreements typically include base rent, which provides a consistent income stream, and may also include additional revenues from tenant reimbursements for property expenses such as maintenance and utilities. EQC's earnings are significantly influenced by occupancy rates, rental rates, and the ability to effectively manage operational costs. Strategic property dispositions and acquisitions also play a role in optimizing the portfolio's performance and enhancing shareholder value.
Equity Commonwealth Financial Statement Overview
Summary
Equity Commonwealth demonstrates strong financial stability through a robust balance sheet and effective cash flow management, yet faces challenges in revenue generation and profit consistency. Despite low leverage and substantial cash reserves, the company must enhance revenue growth and operational efficiency to improve profitability.Income Statement
Equity Commonwealth's revenue has shown a declining trend from 2019 to 2024, with significant fluctuations in EBIT and net income. The gross profit margin remains healthy due to low COGS, but the net profit margin has been volatile, partly due to non-operational income. The company needs to stabilize its revenue and operating income for better performance.45
Neutral
Balance Sheet
The company maintains a strong balance sheet with no debt and substantial cash reserves. The debt-to-equity ratio is favorable at 0, and the equity ratio is robust, indicating financial stability. Return on equity has been inconsistent due to fluctuating net income but remains positive overall.70
Positive
Cash Flow
Operating cash flow is strong, and free cash flow has been positive, indicating good cash management. However, the fluctuations in operating cash flow to net income ratio suggest variable operational efficiency. The company has managed investing and financing activities well, maintaining cash flow positivity.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 58.43M | 47.98M | 60.52M | 63.14M | 58.00M | 66.28M | Gross Profit |
| 19.02M | 47.98M | 33.06M | 38.96M | 32.11M | 37.42M | EBIT |
| 9.06M | 17.89M | -21.36M | -9.33M | -16.31M | 6.09M | EBITDA |
| -1.30M | 36.56M | -3.91M | 8.58M | -5.33M | 4.19M | Net Income Common Stockholders |
| 49.91M | 23.66M | 91.16M | 29.27M | -16.43M | 451.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 138.70M | 160.51M | 2.16B | 2.58B | 2.80B | 2.99B | Total Assets |
| 6.23B | 293.62M | 2.43B | 2.85B | 3.08B | 3.28B | Total Debt |
| 2.94B | 0.00 | 0.00 | 7.35M | 4.78M | 5.91M | Net Debt |
| 2.80B | -160.51M | -2.16B | -2.57B | -2.80B | -2.98B | Total Liabilities |
| 3.08B | 114.77M | 34.93M | 31.15M | 26.11M | 34.51M | Stockholders Equity |
| 3.15B | 178.60M | 2.39B | 2.82B | 3.05B | 3.24B |
| Cash Flow | Free Cash Flow | ||||
| 123.20M | 99.13M | 122.27M | 61.46M | 9.31M | 21.29M | Operating Cash Flow |
| 124.28M | 99.13M | 122.27M | 65.04M | 16.11M | 33.33M | Investing Cash Flow |
| -13.78M | 13.92M | -5.69M | -3.48M | -6.80M | 643.25M | Financing Cash Flow |
| -13.13M | -11.13M | -538.26M | -280.34M | -195.53M | -490.00M |
Equity Commonwealth Technical Analysis
Negative
1.60
Price Trends
1.66
Negative
5.56
Negative
12.70
Negative
Market Momentum
-0.06
Negative
37.41
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQC, the sentiment is Negative. The current price of 1.6 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.66, and below the 200-day MA of 12.70, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 37.41 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQC.
Equity Commonwealth Risk Analysis
Equity Commonwealth disclosed 30 risk factors in its most recent earnings report. Equity Commonwealth reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Equity Commonwealth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
60 Neutral | $10.89B | 692.48 | 0.23% | 6.26% | 4.10% | -92.47% | |
58 Neutral | $12.95B | 805.70 | 1.32% | 2.18% | -1.30% | -80.81% | |
58 Neutral | $171.87M | 4.16 | 2.10% | ― | -4.47% | -44.64% | |
55 Neutral | $3.17B | 31.39 | 4.27% | 6.78% | -0.98% | -32.02% | |
52 Neutral | $3.98B | 670.74 | 0.71% | 5.75% | 5.12% | ― | |
49 Neutral | $384.65M | ― | -11.53% | 3.77% | -11.47% | -89.12% |
* Real Estate Sector Average
Performance Comparison
EQC
Equity Commonwealth
1.60
-17.15
-91.47%
BXP
Boston Properties
62.60
4.54
7.82%
HIW
Highwoods Properties
27.91
5.17
22.74%
HPP
Hudson Pacific Properties
2.65
-3.51
-56.98%
SLG
SL Green Realty
52.72
3.96
8.12%
VNO
Vornado Realty
33.92
7.04
26.19%
Equity Commonwealth Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.43% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The call highlighted a successful execution of asset sales and effective management of the wind-down process, with strong shareholder support and favorable distributions. However, the transition to a liquidating trust and delisting from the NYSE marks a significant organizational change.Highlights
Completion of Asset Sales
The sale of 1225 Seventeenth Street Plaza in Denver was completed for a gross price of $132.5 million. This marks the successful execution of the sale of all company real estate assets, totaling over $7.9 billion in assets sold since 2014.
Shareholder Approval and Distributions
At the November 12 Special Shareholder Meeting, 99% of votes cast were in favor of the plan of sale. An initial liquidating distribution of $19 per share was paid in December, with an updated estimated aggregate shareholder liquidating distribution range of $20.55 to $20.70 per common share.
Debt and Equity Management
The company has retired $3.4 billion in debt and preferred shares, repurchased $652 million of common shares, and paid $3.8 billion in distributions to common shareholders.
Efficient Wind-Down Process
The company has effectively managed the wind-down process, including the sale of remaining properties and planning for the final distribution and delisting from the NYSE.
Lowlights
Transition to Liquidating Trust
The company's shares will be delisted from the New York Stock Exchange, and the remaining assets and liabilities will be transferred to a Maryland liquidating trust, indicating the end of operations as a public company.
Company Guidance
During the call, Bill Griffiths, CFO of Equity Commonwealth, provided detailed guidance on the company's wind-down process. The company successfully completed the sale of 1225 Seventeenth Street Plaza in Denver for a gross price of $132.5 million, netting $124.4 million after credits. Since 2014, EQC has sold over $7.9 billion in assets, including 168 properties and three land parcels totaling 45.8 million square feet, with an aggregate gross sales price of $7.2 billion. Additionally, they retired $3.4 billion of debt and preferred shares, repurchased $652 million in common shares, and distributed $3.8 billion to shareholders. The recent Special Shareholder Meeting saw 99% approval for the plan of sale. EQC adopted a liquidation basis of accounting for the 2024 10-K, with net assets in liquidation estimated at $179 million. The estimated shareholder liquidating distribution range was updated to $20.55 to $20.70 per share, inclusive of a $19 distribution already paid. The final distribution is anticipated in mid-April, after which the company's shares will be delisted from the NYSE, and EQC will transfer remaining assets to a Maryland liquidating trust, converting shares into beneficial interest units. The company plans to deregister with the SEC and expects to maintain REIT status until the transfer.Equity Commonwealth Corporate Events
Delistings and Listing ChangesDividendsRegulatory Filings and Compliance
Equity Commonwealth Announces Final Liquidating Distribution
Neutral
Apr 1, 2025
On April 1, 2025, Equity Commonwealth announced its Board of Trustees has authorized a final cash liquidating distribution of $1.60 per common share, to be paid on April 22, 2025, marking the company’s continued winding down process. Following the payment and delisting from NYSE, the company will transfer remaining assets to a Maryland liquidating trust and deregister with the SEC by the end of the second quarter of 2025, converting common shares into beneficial interest units in the trust.
Executive/Board ChangesBusiness Operations and Strategy
Equity Commonwealth Approves Bonuses Amid Strategic Liquidation
Neutral
Jan 27, 2025
On January 27, 2025, Equity Commonwealth’s Compensation Committee approved short-term incentive cash bonuses for its named executive officers. This decision followed the company’s strategic shift towards liquidation, with the sale of three out of four remaining properties in 2024, which rendered previous performance metrics invalid.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.