Company Quick10K Filing
Equity Commonwealth
Price34.22 EPS4
Shares126 P/E9
MCap4,310 P/FCF58
Net Debt-3,210 EBIT487
TEV1,099 TEV/EBIT2
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-07-31
10-Q 2020-03-31 Filed 2020-05-05
10-K 2019-12-31 Filed 2020-02-13
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-04-30
10-K 2018-12-31 Filed 2019-02-14
10-Q 2018-09-30 Filed 2018-10-25
10-Q 2018-06-30 Filed 2018-07-31
10-Q 2018-03-31 Filed 2018-05-08
10-K 2017-12-31 Filed 2018-02-15
10-Q 2017-09-30 Filed 2017-10-25
10-Q 2017-06-30 Filed 2017-07-25
10-Q 2017-03-31 Filed 2017-05-04
10-K 2016-12-31 Filed 2017-02-16
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-07-29
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-18
10-Q 2015-09-30 Filed 2015-11-05
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-19
10-Q 2014-09-30 Filed 2014-11-04
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-08
10-K 2013-12-31 Filed 2014-02-28
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-09
10-K 2012-12-31 Filed 2013-02-25
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-08
10-K 2011-12-31 Filed 2012-02-27
10-Q 2011-09-30 Filed 2011-11-07
10-Q 2011-06-30 Filed 2011-08-08
10-Q 2011-03-31 Filed 2011-05-06
10-K 2010-12-31 Filed 2011-02-25
10-Q 2010-09-30 Filed 2010-11-03
10-Q 2010-06-30 Filed 2010-08-04
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-02-23
8-K 2020-07-29 Earnings, Exhibits
8-K 2020-06-23
8-K 2020-05-29
8-K 2020-05-20
8-K 2020-05-04
8-K 2020-04-02
8-K 2020-03-12
8-K 2020-02-12
8-K 2020-02-12
8-K 2019-10-29
8-K 2019-10-07
8-K 2019-07-31
8-K 2019-06-20
8-K 2019-04-29
8-K 2019-03-26
8-K 2019-02-13
8-K 2019-01-29
8-K 2018-10-24
8-K 2018-10-09
8-K 2018-08-20
8-K 2018-07-30
8-K 2018-06-20
8-K 2018-05-07
8-K 2018-03-14
8-K 2018-02-21
8-K 2018-02-14
8-K 2018-01-22

EQC 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements.
Note 1. Business
Note 2. Summary of Significant Accounting Policies
Note 3. Real Estate Properties
Note 4. Indebtedness
Note 5. Shareholders' Equity
Note 6. Noncontrolling Interest
Note 7. Income Taxes
Note 8. Share - Based Compensation
Note 9. Fair Value of Assets and Liabilities
Note 10. Earnings per Common Share
Note 11. Segment Information
Note 12. Related Person Transactions
Note 13. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 eqc63020exhibit311.htm
EX-31.2 eqc63020exhibit312.htm
EX-32.1 eqc63020exhibit321.htm

Equity Commonwealth Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
0.30.20.20.10.10.02016201720182020
Rev, G Profit, Net Income
1.00.70.40.0-0.3-0.62012201420172020
Ops, Inv, Fin

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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
 
     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the quarterly period ended June 30, 2020
OR
         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-9317
EQUITY COMMONWEALTH
(Exact Name of Registrant as Specified in Its Charter)
Maryland04-6558834
(State or Other Jurisdiction of Incorporation or Organization)(IRS Employer Identification No.)
Two North Riverside Plaza, Suite 2100, Chicago, IL
60606
(Address of Principal Executive Offices)(Zip Code)
(312) 646-2800
(Registrant’s Telephone Number, Including Area Code)

 Securities registered pursuant to Section 12(b) of the Exchange Act:
Title Of Each ClassTrading SymbolName of Each Exchange On Which Registered
Common Shares of Beneficial InterestEQCThe New York Stock Exchange
6.50% Series D Cumulative Convertible Preferred Shares of Beneficial InterestEQCpDThe New York Stock Exchange
Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ý  No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ý  No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No ý
Number of registrant’s common shares of beneficial interest, $0.01 par value per share, outstanding as of July 24, 2020:  121,521,624.



Table of Contents
EQUITY COMMONWEALTH
 
FORM 10-Q
 
June 30, 2020
 
INDEX
 
  Page
 
 
 
 
 
 
 
 
 



Table of Contents

 
EXPLANATORY NOTE
 
References in this Quarterly Report on Form 10-Q to the “Company,” “EQC,” “we,” “us” or “our,” refer to Equity Commonwealth and its consolidated subsidiaries as of June 30, 2020, unless the context indicates otherwise.

i

Table of Contents
PART I.      Financial Information

Item 1.         Financial Statements.
EQUITY COMMONWEALTH
 CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
(unaudited)
June 30,
2020
December 31,
2019
(audited)
ASSETS
Real estate properties:
Land$44,060  $85,627  
Buildings and improvements353,665  576,494  
397,725  662,121  
Accumulated depreciation(139,061) (202,700) 
258,664  459,421  
Cash and cash equivalents3,437,775  2,795,642  
Restricted cash4,103  5,003  
Rents receivable13,968  19,554  
Other assets, net18,645  39,757  
Total assets$3,733,155  $3,319,377  
LIABILITIES AND EQUITY
Mortgage notes payable, net$25,281  $25,691  
Accounts payable, accrued expenses and other25,821  37,153  
Rent collected in advance2,521  3,127  
Distributions payable5,791  7,534  
Total liabilities59,414  73,505  
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value: 50,000,000 shares authorized;
Series D preferred shares; 6.50% cumulative convertible; 4,915,196 shares issued and
   outstanding, aggregate liquidation preference of $122,880
119,263  119,263  
Common shares of beneficial interest, $0.01 par value: 350,000,000 shares authorized;
   121,521,624 and 121,924,199 shares issued and outstanding, respectively
1,215  1,219  
Additional paid in capital4,288,245  4,313,831  
Cumulative net income3,816,245  3,363,654  
Cumulative common distributions(3,852,856) (3,851,666) 
Cumulative preferred distributions(705,718) (701,724) 
Total shareholders’ equity3,666,394  3,244,577  
Noncontrolling interest7,347  1,295  
Total equity3,673,741  3,245,872  
Total liabilities and equity$3,733,155  $3,319,377  
See accompanying notes.
1

Table of Contents
EQUITY COMMONWEALTH
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Revenues:
Rental revenue$15,248  $30,574  $32,391  $69,464  
Other revenue1,017  2,794  2,694  5,656  
Total revenues16,265  33,368  35,085  75,120  
Expenses:
Operating expenses6,677  10,974  15,438  26,754  
Depreciation and amortization4,398  7,561  9,512  16,146  
General and administrative8,302  9,533  18,906  21,629  
Total expenses19,377  28,068  43,856  64,529  
Interest and other income, net4,443  20,695  16,338  38,470  
Interest expense (including net amortization of debt discounts,
   premiums and deferred financing fees of $(60), $154, $(116) and
   $319, respectively)
(302) (4,070) (611) (8,276) 
Loss on early extinguishment of debt  (6,374)   (6,374) 
Gain on sale of properties, net
26,916  227,166  446,536  420,203  
Income before income taxes
27,945  242,717  453,492  454,614  
Income tax expense(59) (340) (99) (1,640) 
Net income27,886  242,377  453,393  452,974  
Net income attributable to noncontrolling interest(54) (91) (802) (170) 
Net income attributable to Equity Commonwealth27,832  242,286  452,591  452,804  
Preferred distributions(1,997) (1,997) (3,994) (3,994) 
Net income attributable to Equity Commonwealth common shareholders
$25,835  $240,289  $448,597  $448,810  
Weighted average common shares outstanding — basic121,655  122,122  121,901  122,041  
Weighted average common shares outstanding — diluted123,255  125,862  126,358  125,841  
Earnings per common share attributable to Equity Commonwealth common shareholders:
Basic$0.21  $1.97  $3.68  $3.68  
Diluted
$0.21  $1.93  $3.58  $3.60  

See accompanying notes.
2

Table of Contents
EQUITY COMMONWEALTH
 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(amounts in thousands)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Net income$27,886  $242,377  $453,393  $452,974  
Other comprehensive income, net of tax:
Unrealized gain on marketable securities      342  
Total comprehensive income27,886  242,377  453,393  453,316  
Comprehensive income attributable to the noncontrolling interest
(54) (91) (802) (170) 
Total comprehensive income attributable to Equity Commonwealth
$27,832  $242,286  $452,591  $453,146  

See accompanying notes.

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Table of Contents
EQUITY COMMONWEALTH
 CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(amounts in thousands, except share data)
(unaudited)

 Equity Commonwealth Shareholders
Number of Series D Preferred SharesSeries D Preferred
Shares
Number of Common SharesCommon
Shares
Additional
Paid
in
Capital
Cumulative
Net
Income
Cumulative
Common
Distributions
Cumulative
Preferred
Distributions
Noncontrolling InterestTotal
Balance at April 1, 2020
4,915,196  $119,263  121,502,520  $1,215  $4,285,266  $3,788,413  $(3,852,856) $(703,721) $7,034  $3,644,614  
Net income
—  —  —  —  —  27,832  —  —  54  27,886  
Share-based compensation
—  —  19,104  —  2,906  —  —  —  362  3,268  
Contributions
—  —  —  —  —  —  —  —  1  1  
Distributions
—  —  —  —  —  —    (1,997) —  (1,997) 
Redemption of noncontrolling interest—  —  —  —  —  —  —  —  (31) (31) 
Adjustment for noncontrolling interest
—  —  —  —  73  —  —  —  (73) —  
Balance at June 30, 2020
4,915,196  $119,263  121,521,624  $1,215  $4,288,245  $3,816,245  $(3,852,856) $(705,718) $7,347  $3,673,741  
Balance at January 1, 2020
4,915,196  $119,263  121,924,199  $1,219  $4,313,831  $3,363,654  $(3,851,666) $(701,724) $1,295  $3,245,872  
Net income—  —  —  —  —  452,591  —  —  802  453,393  
Repurchase of shares—  —  (711,000) (7) (20,862) —  —  —  —  (20,869) 
Surrender of shares for tax withholding—  —  (183,466) (2) (6,010) —  —  —  —  (6,012) 
Share-based compensation—  —  491,891  5  5,859  —  —  —  707  6,571  
Contributions—  —  —  —  —  —  —  —  1  1  
Distributions—  —  —  —  —  —  (1,190) (3,994) —  (5,184) 
Redemption of noncontrolling interest—  —  —  —  —  —  —  —  (31) (31) 
Adjustment for noncontrolling interest
—  —  —  —  (4,573) —  —  —  4,573  —  
Balance at June 30, 2020
4,915,196  $119,263  121,521,624  $1,215  $4,288,245  $3,816,245  $(3,852,856) $(705,718) $7,347  $3,673,741  

See accompanying notes.









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Table of Contents


EQUITY COMMONWEALTH
 CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Continued)
(amounts in thousands, except share data)
(unaudited)

 Equity Commonwealth Shareholders
Number of Series D Preferred SharesSeries D Preferred
Shares
Number of Common
Shares
Common
Shares
Additional
Paid
in
Capital
Cumulative
Net
Income
Cumulative
Common
Distributions
Cumulative
Preferred
Distributions
Cumulative Other Comprehensive LossNoncontrolling InterestTotal
Balance at April 1, 2019
4,915,196  $119,263  121,899,625  $1,219  $4,304,560  $3,081,492  $(3,420,512) $(695,733) $  $1,272  $3,391,561  
Net income
—  —  —  —  —  242,286  —  —  —  91  242,377  
Surrender of shares for tax withholding—  —  (4,414) —  (145) —  —  —  —  —  (145) 
Share-based compensation
—  —  26,909  —  3,393  —  —  —  —  328  3,721  
Distributions
—  —  —  —  —  —  106  (1,997) —  —  (1,891) 
Adjustment for noncontrolling interest
—  —  —  —  241  —  —  —  —  (241) —  
Balance at June 30, 2019
4,915,196  $119,263  121,922,120  $1,219  $4,308,049  $3,323,778  $(3,420,406) $(697,730) $  $1,450  $3,635,623  
Balance at January 1, 2019
4,915,196  $119,263  121,572,155  $1,216  $4,305,974  $2,870,974  $(3,420,548) $(693,736) $(342) $1,197  $3,183,998  
Net income—  —  —  —  —  452,804  —  —  —  170  452,974  
Unrealized gain on marketable securities—  —  —  —  —  —  —  —  342  —  342  
Surrender of shares for tax withholding—  —  (168,327) (2) (5,485) —  —  —  (5,487) 
Share-based compensation—  —  518,292  5  6,978  —  —  —  —  665  7,648  
Distributions—  —  —  —  —  —  142  (3,994) —  —  (3,852) 
Adjustment for noncontrolling interest—  —  —  —  582  —  —  —  —  (582) —  
Balance at June 30, 2019
4,915,196  $119,263  121,922,120  $1,219  $4,308,049  $3,323,778  $(3,420,406) $(697,730) $  $1,450  $3,635,623  

See accompanying notes.
5