Equity Commonwealth (NYSE:EQC) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET

Company Participants

David Helfand - President and CEO

David Weinberg - COO

Conference Call Participants

Craig Mailman - Citi

Operator

Good morning, and thanks for joining this call to discuss Equity Commonwealth's results for the Third Quarter ending September 30, 2022, and 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 reports on Form 10-Q for subsequent quarters for a discussion of factors that could cause the company's actual results to materially differ from any forward-looking statement. 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 may be material.

The portion of today's remarks on the company's quarterly earnings also include certain non-GAAP financial measures. Please refer to yesterday's press release and supplementals 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, President and CEO; David Weinberg, COO; and Bill Griffiths, CFO.

And with that, I will turn the call over to David Helfand. Please go ahead, sir.

David Helfand

Thank you. Thanks for joining us.

This morning, I'll review the company's results for the quarter as well as provide a brief update on the capital markets, our dispositions and investment activities. Funds from operations were $0.13 per share compared to $0.00 per share in the third quarter of 2021. Normalized FFO was also $0.13 per share compared to a loss of $0.01 per share a year ago. The growth in FFO and normalized FFO was largely a result of a $0.12 per share increase in interest and other income as well as a $0.01 per share increase in same-property cash NOI.

Same-property NOI was up 16.8% and same-property cash NOI was 19.1% higher compared to the third quarter 2021. At the properties in the third quarter, we signed 55,000 square feet of new leases and renewals. Rents on those leases were down 3.3% on a cash basis and up 2.2% on a GAAP basis. As of September 30, leased occupancy was 83.4% and commenced occupancy was 80.8%.