2024-06-04 11:07:21 ET
Summary
- Equity Commonwealth is an Office REIT owning just 4 office buildings but with a $2.17 billion cash pile.
- The company's portfolio has a leased rate of only 75.4%.
- Despite lower cash basis NOI, normalized FFO increased 13% Y/Y due to higher interest income.
- The company will either use the excess cash to grow its portfolio or alternatively sell the remainder of its properties.
- The value of the property portfolio varies between $400 and $213 million, depending on the cap rate used.
Introduction
Equity Commonwealth ( EQC ) has outperformed the Vanguard Real Estate Index Fund ETF ( VNQ ) in 2024, posting a 1% gain in the face of broad-based US real estate weakness, with the VNQ down some 6% so far this year....
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Equity Commonwealth: Conservative Capital Structure With A 9-18% Upside