Equity Commonwealth Reports Q1 2025 Financial Results Amid Liquidation Process

Equity Commonwealth (EQC) reported its financial results for the first quarter of 2025, reflecting significant changes as the company continues its wind-down and liquidation process. As of March 31, 2025, the company had total assets of $227.7 million, a decrease from $293.6 million at the end of 2024. The decline in assets is primarily attributed to the sale of its last remaining property, 1225 Seventeenth Street in Denver, Colorado, which was sold for $132.5 million in February 2025. The company reported cash and cash equivalents of $227.3 million, with no outstanding debt.

In terms of profitability, Equity Commonwealth reported net income of $25.5 million for the three months ended March 31, 2024, with net income attributable to common shareholders amounting to $23.4 million, or $0.22 per share. The company’s total revenues for the same period were $15.2 million, primarily driven by rental income and other revenue streams. However, total expenses exceeded revenues, totaling $19.2 million, which included operating expenses, depreciation, and general administrative costs. The company’s financial performance reflects the ongoing transition to a liquidation basis of accounting, which was adopted following shareholder approval of the Plan of Sale in November 2024.

Operationally, Equity Commonwealth has made significant strides in its liquidation strategy. The company has distributed a total of $2.2 billion in cash liquidating distributions to common shareholders, equating to $20.60 per share, including a final distribution of $1.60 per share paid on April 22, 2025. The company’s shareholder base remains stable, with 107.8 million common shares outstanding as of March 31, 2025. The company has also retired a substantial amount of debt and preferred shares, totaling $3.4 billion since 2014, and repurchased $652.1 million of its common shares.

Looking ahead, Equity Commonwealth plans to continue its wind-down process, with expectations to transfer any remaining assets and liabilities to a Liquidating Entity by the end of the second quarter of 2025. The company has filed for delisting from the New York Stock Exchange, with the last day of trading occurring on April 21, 2025. The outlook remains focused on completing the liquidation process efficiently, although the company cautions that actual liquidation costs and proceeds may differ from estimates due to inherent uncertainties. The management team remains committed to maximizing shareholder value during this transition.