Equity Commonwealth (EQC) Reports Q3 2023 Earnings: Net Income Doubles Year-Over-Year
Net income attributable to common shareholders for Q3 2023 was $24.1 million, a significant increase from $10.2 million in Q3 2022.
Funds from Operations (FFO) for Q3 2023 were $28.7 million, nearly double the $14.5 million reported for the same period in 2022.
Same property Net Operating Income (NOI) decreased by 6.8% compared to the same period in 2022.
As of September 30, 2023, the company's cash and cash equivalents balance was $2.1 billion.
Equity Commonwealth (NYSE:EQC) released its financial results for the third quarter of 2023 on October 30, 2023. The company reported a significant increase in net income attributable to common shareholders, which was $24.1 million, or $0.22 per diluted share, for the quarter ended September 30, 2023. This is a substantial increase from the $10.2 million, or $0.09 per diluted share, reported for the same quarter in 2022. The increase in net income was primarily due to an increase in interest income from higher average interest rates.
Financial Highlights
Equity Commonwealth's FFO for the quarter ended September 30, 2023, were $28.7 million, or $0.26 per diluted share. This compares to FFO for the quarter ended September 30, 2022, of $14.5 million, or $0.13 per diluted share. The increase in FFO was primarily driven by a $0.13 per diluted share increase in interest and other income, net, and a $(0.01) per diluted share decrease in same property NOI.
Normalized FFO for the quarter ended September 30, 2023, was $28.6 million, or $0.26 per diluted share, compared to $14.5 million, or $0.13 per diluted share, for the same period in 2022. The increase in Normalized FFO was also primarily due to a $0.13 per diluted share increase in interest and other income, net, and a $(0.01) per diluted share decrease in same property NOI.
Property Portfolio Performance
The company's same property portfolio at the end of the quarter consisted of 4 properties totaling 1.5 million square feet. The same property portfolio was 80.8% leased as of September 30, 2023, compared to 82.0% as of June 30, 2023, and 83.4% as of September 30, 2022. Same property NOI decreased 6.8% when compared to the same period in 2022, primarily due to a decrease in commenced occupancy and an increase in pre-leasing demolition costs.
Share Repurchase and Cash Position
During the quarter ended September 30, 2023, the company repurchased 3,018,411 of its common shares at a weighted average price of $18.78 for a total investment of $56.7 million. As of September 30, 2023, the company's cash and cash equivalents balance was $2.1 billion.
Equity Commonwealth will host a conference call to discuss third quarter results on Tuesday, October 31, 2023, at 9:00 A.M. CT. The conference call will be available via live audio webcast on the Investor Relations section of the companys website.
Explore the complete 8-K earnings release (here) from Equity Commonwealth for further details.
This article first appeared on GuruFocus.
