Equity Commonwealth (NYSE:EQC) Q2 2024 Results Conference Call July 31, 2024 10:00 AM ET

Company Participants

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

Conference Call Participants

Nick Joseph - Citi

Operator

Good morning, and thanks for joining this call to discuss Equity Commonwealth's results for the quarter ending June 30, 2024, 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 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 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. Good morning, everyone. Thanks for joining us. Rather than spend time on the company's results for the quarter, the details of which are covered in our earnings release and other filings, I'd like to provide a general update on our business. As we discussed on last quarter's call, we have been evaluating potential investment opportunities in an effort to create long-term value for shareholders. After working through our pipeline, we have been unable to consummate a compelling transaction. As a result, our Board of Trustees has determined that it's advisable and in the best interest of our shareholders to proceed with the wind down of our operations and liquidation of our assets in order to maximize value for shareholders.

The key gating factor in the wind down will be the timing of the sale of our 4 remaining properties. We disclosed last quarter that we had initiated the process to sell 3 of our 4 assets. Those properties, 1250 H in Washington, D.C. and our 2 assets in Austin are currently being marketed for sale. While our team is focused on achieving the best execution, it is important to understand that current market conditions for selling office assets are uniquely challenging. Transaction volume for the first 6 months of the year was the lowest since 2010 and down 75% from pre-COVID levels. Moreover, debt availability for office assets is scarce and when available is priced at double-digit coupons.