Is Equity Commonwealth in Trouble?
Equity Commonwealth (NYSE: EQC) has been slowly selling off its properties since real estate titan Sam Zell took control of the office REIT (real estate investment trust) in 2014. At that time, Equity Commonwealth had more than 150 properties with over 40 million square feet of space. However, today the REIT only has four properties remaining, with 1.5 million square feet. As a result of the portfolio purge, normalized funds from operations (FFO) declined from $268.3 million, or $2.14 per share, in 2014 to $15.8 million, or $0.13 per share, in 2020.
That significant decline in its property count and FFO might have investors worried it’s in trouble. However, that’s not the case. Instead, it positioned the REIT to shift gears and pounce when it found a compelling opportunity.
Repositioning for the right opportunity
Equity Commonwealth cashed in on institutional investors’ high demand for…