Equity Commonwealth (NYSE:EQC) Q2 2023 Earnings Conference Call July 27, 2023 10:00 AM ET
Company Participants
David Helfand - Chair of Board, President and Chief Executive Officer
Dave Weinberg - Chief Operating Officer
Bill Griffiths - Chief Financial Officer
Operator
Good morning and thanks for joining this call to discuss Equity Commonwealth’s Results for the quarter ending June 3, 2023 and provide an update on the company. [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 federal securities laws. Please refer to the section titled forward-looking statements in the press release issued yesterday as well as the section titled Risk Factors in the company’s annual report on Form 10-K and quarterly report on Form 10-Q for subsequent quarter for a discussion of factors that could cause the company’s actual results to materially differ from any forward-looking statements.
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 maybe material. The portion of today’s remarks on the company’s quarterly earnings also includes certain non-GAAP financial measures. Please refer to yesterday’s press release and supplemental containing the company’s results for a reconciliation of these non-GAAP measures to the company’s GAAP financial results.
On the call today are David Helfand, Chair of Board, President and CEO; Dave Weinberg, COO; and Bill Griffiths, CFO.
With that, I would turn the call over to David Weinberg. Please go ahead.
Dave Weinberg
Good morning, everyone. Thanks for joining us. Today, I will review the company’s results for the quarter as well as provide an update on the capital markets and our investment activities.
For the quarter, funds from operations were $0.16 per share compared to $0.05 per share in the second quarter of 2022. The growth in FFO was largely the result of a $0.19 per share increase in interest and other income, partially offset by a $0.05 per share increase in G&A related to compensation expense due to Sam Zell’s passing and $0.01 per share each from a decrease in same-property NOI and an increase in income tax expense.
Normalized FFO was $0.22 per share compared to $0.04 per share a year ago. The growth in normalized FFO was largely the result of a $0.19 per share increase in interest and other income partially offset by a $0.01 per share decrease in same-property NOI and a $0.01 per share increase in income tax expense. Same-property NOI decreased 14.8% and same-property cash NOI was 9.4% lower compared to last year, both primarily due to an increase of pre-leasing demolition costs and a decrease in average commenced occupancy for this quarter.