Equity Commonwealth

NYSE:EQCUnited States

04:22 PM EDT, 10/23/2024 (MT Newswires) -- ...

--------------------------------------- ---------- --------- Same Property Cash Basis NOI $ 21,838 $ 24,507 --------------------------------------- ---------- --------- Non-cash rental income and lease termination fees from same properties 1,350 (62) --------------------------------------- ---------- --------- Same Property NOI $ 23,188 $ 24,445 --------------------------------------- ---------- --------- Reconciliation of Same Property NOI to GAAP Net Income: --------------------------------------- ------------------ ------------- Same Property NOI $ 23,188 $ 24,445 --------------------------------------- ---------- --------- Non-cash rental income and lease termination fees from same properties (1,350) 62 --------------------------------------- ---------- --------- Same Property Cash Basis NOI $ 21,838 $ 24,507 --------------------------------------- ---------- --------- Cash Basis NOI from non-same properties (2) (19) 13 --------------------------------------- ---------- --------- Cash Basis NOI $ 21,819 $ 24,520 --------------------------------------- ---------- --------- Straight-line rent adjustments 559 (445) Lease termination fees 791 383 --------------------------------------- ---------- --------- NOI $ 23,169 $ 24,458 --------------------------------------- ---------- --------- Depreciation and amortization (12,753) (13,260) General and administrative (25,565) (29,470) Loss on asset impairment (50,226) -- Interest and other income, net 89,278 84,997 --------------------------------------- ---------- --------- Income before income taxes $ 23,903 $ 66,725 --------------------------------------- ---------- --------- Income tax expense (486) (1,906) --------------------------------------- ---------- --------- Net income $ 23,417 $ 64,819 --------------------------------------- ---------- --------- (1) Other revenue is primarily comprised of parking revenue that does not represent a component of a lease. (2) Cash Basis NOI from non-same properties for all periods presented includes the operations of disposed properties. NOI is income from our real estate including lease termination fees received from tenants less our property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions and corporate level expenses. Cash Basis NOI is NOI excluding the effects of straight-line rent adjustments, lease value amortization and lease termination fees. The quarter-to-date same property versions of these measures include the results of properties continuously owned from July 1, 2023 through September 30, 2024. The year-to-date same property versions of these measures include the results of properties continuously owned from January 1, 2023 through September 30, 2024. We consider these supplemental non-GAAP financial measures to be appropriate supplemental measures to net income (loss) because they may help to understand the operations of our properties. We use these measures internally to evaluate property level performance, and we believe that they provide useful information to investors regarding our results of operations because they reflect only those income and expense items that are incurred at the property level and may facilitate comparisons of our operating performance between periods and with other REITs. Cash Basis NOI is among the factors considered with respect to acquisition, disposition and financing decisions. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered as an alternative to net income (loss), net income (loss) attributable to Equity Commonwealth common shareholders or cash flow from operating activities, determined in accordance with GAAP, or as indicators of our financial performance or liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of our needs. These measures should be considered in conjunction with net income (loss), net income (loss) attributable to EQC common shareholders and cash flow from operating activities as presented in our condensed consolidated statements of operations and condensed consolidated statements of cash flows. Other REITs and real estate companies may calculate these measures differently than we do.