Equity Commonwealth Completes Property Sale Amid Liquidation

Equity Commonwealth ( (EQC) ) has released its Q4 earnings. Here is a breakdown of the information Equity Commonwealth presented to its investors.

Equity Commonwealth is a Chicago-based, internally managed and self-advised real estate investment trust (REIT) that focuses on managing and liquidating its real estate assets. The company has recently completed the sale of its last remaining property, 1225 Seventeenth Street in Denver, Colorado, marking a significant milestone in its liquidation process.

In its latest earnings report, Equity Commonwealth announced the completion of the sale of its Denver property for a gross price of $132.5 million, with net proceeds of approximately $124.4 million. This sale has prompted an update to the estimated aggregate shareholder liquidating distribution range, now set between $20.55 and $20.70 per common share, reflecting an increase from the previously announced range.

The company has been operating under a liquidation basis of accounting since November 2024, following shareholder approval of a Plan of Sale and Dissolution. As of December 31, 2024, the company’s net assets in liquidation were approximately $179 million. This includes projections of costs and expenses expected during the wind-down process, highlighting the inherent uncertainties in these estimates.

Throughout 2024, Equity Commonwealth has been actively executing its Plan of Sale, which included selling its remaining properties and distributing proceeds to shareholders. The company has already made an initial cash liquidating distribution of $19.00 per common share and has settled obligations related to its preferred shares.

Looking forward, Equity Commonwealth continues to focus on efficiently completing its liquidation process, with management emphasizing the importance of maximizing shareholder value through the distribution of net proceeds. The company’s strategic decisions and financial management will be crucial as it navigates the final stages of its dissolution.