Equity Commonwealth (OTCPK:NABZY) Q1 2024 Results Conference Call May 2, 2024 10:00 AM ET

Company Participants

David Helfand - President and CEO
David Weinberg - COO
Bill Griffiths - CFO

Conference Call Participants

Craig Mailman - Citi

Operator

Good morning, and thank you for joining this call to discuss Equity Commonwealth's Results for the Quarter Ending March 31, 2024, and an Update on the Company. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [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 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 may be material.

The portion of today's remarks regarding the Company's quarterly earnings also include 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, President and CEO; David Weinberg, COO; and Bill Griffiths, CFO.

With that, I will turn the call over to David Helfand.

David Helfand

Thank you, and good morning, everyone. Thanks for joining us. I'll review the Company's results for the quarter as well as provide an update on our business. The quarter funds from operations were $0.26 per share compared to $0.22 per share in the first quarter 2023. Normalized FFO was $0.25 per share compared to $0.23 per share a year ago. The growth in FFO and normalized FFO was largely the result of a $0.01 per share increase in interest and other income and a $0.01 per share decrease in income tax expense.

Same-property NOI increased 4.3% compared to last year due to a decrease in pre-leasing demolition costs and an increase in lease termination fees, partially offset by a decrease in average commenced occupancy.

Same-property cash NOI was 6.9% lower primarily due to the decrease in average commenced occupancy, partially offset by the decrease in pre-leasing demolition costs. And as of March 31, leased occupancy was 75.4% and commenced occupancy was 74.6%.