EquityCommonwealth (NYSE:EQC) Q3 2023 Earnings Conference Call October 31, 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 September 30, 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 differ materially 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 our investment activities.
For the quarter, same property NOI decreased 6.8% and same property cash NOI was 6.6% lower, compared to last year, both primarily due to a decrease in average commenced occupancy and an increase in preleasing demolition cost. At our properties in the quarter, we signed 54,000 square feet of new leases and renewals.Rents on those leases were down 1.8% on a cash basis and up 6% on a GAAP basis. As of September 30, 2023, leased occupancy was 80.8% and commenced occupancy was 79.9%. In terms of leasing, we continue to see a range of deals with some tenants giving back space, some looking for short term extensions and others more comfortable committing to term.