Author Topic: EQC - Equity Commonwealth  (Read 32804 times)

CorpRaider

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Re: EQC - Equity Commonwealth
« Reply #70 on: March 26, 2020, 11:51:28 AM »
Haha.  Been thinking of selling today too.  Looking for stuff to sell, but I kind of hate to get rid of a cash bag with optionality where I've been waiting for them to have opportunity; but you know mkt is likely to give us another chance to participate if/when they do something because they ain't likely to pay up for something that looks great/easy. 
« Last Edit: March 26, 2020, 12:09:08 PM by CorpRaider »


RiskAdjReturn

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Re: EQC - Equity Commonwealth
« Reply #71 on: May 22, 2020, 07:07:58 PM »
for you real estate guys, In EQC's recent Washington asset, the transcript I read said over 400 million sale price, but netted only 316.7 after " credits for contractual lease costs and transfer taxes"..... thats huge leakage? what are these items and why so big. makes me think nav is a fluff number in REITs if leakage is this substantial. any thoughts here?

thepupil

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Re: EQC - Equity Commonwealth
« Reply #72 on: July 31, 2020, 04:05:22 PM »
EQC sold their building in Georgetown for $85mm and a 7% cap rate, brining YTD capital gainst to $440mm which will need to be distributed. they think public market is cheap but won't do anything but a friendly transaction. 

Emmanuel Korchman -- Citigroup -- Analyst

Hey, good morning everyone. David, maybe you could comment on sort of what's going on in the public markets and where valuation is being implied there versus any shifts or potential shift that you're seeing in the private markets, and how that impacts both your underwriting and your point earlier that you kind of revisit the way that you've looked at everything in the past?

David Helfand -- President and Chief Executive Officer

Sure. Thanks Manny. Good morning. It's really -- I think you ask an interesting question, and we are obviously monitoring public companies, understanding the trading values and in particular, as you well know there are haves and have nots across sectors, certainly the data centers and cell towers, industrial and SFR and residential are the haves, and then there is a number of others that have been hit pretty hard, whether that -- the market has got it right or not, that's a judgment people make for themselves. With respect to the office side, values have been hit pretty hard, and it's hard to reconcile them, whether the market's right, because there so little transaction activity in the private market.

There have been some deals have gotten done. We got one deal done. A number of the deals that gotten done were started pre-COVID. So I think it's just hard to see any read through from the private market, as the indicator of what -- where things are going to settle. I think we're waiting to see both lease transactions, as well as sale transactions. And as it relates to the public market, I mean you know better than me, whether things are cheap or not. But certainly, it appears -- to us, if you look at some of the office companies that need price per pound implied by the equity price is a pretty compelling number. The question is how much of the company can you buy at those kind of prices.

CorpRaider

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Re: EQC - Equity Commonwealth
« Reply #73 on: August 01, 2020, 08:06:32 PM »
Zell was on a video call thing via NYU Stern a week or two ago and said something like "REITs are kinda' cheap like 20% but not pound the table cheap given the environment."  He said he thinks market is frozen and will thaw in the fall/winter when banks force some movement.  It's on youtube if anyone is interested.

thepupil

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Re: EQC - Equity Commonwealth
« Reply #74 on: August 02, 2020, 04:53:58 AM »
https://m.youtube.com/watch?v=xgEB_UYkgqk

Thanks! Will have a listen link above

CorpRaider

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Re: EQC - Equity Commonwealth
« Reply #75 on: August 02, 2020, 03:49:05 PM »
Hey man.  My bad, it looks like its a different one than the one I was talking about (July 8 was the one I referenced).  I was mistaken it wasn't via Stern was some post grad leadership seminar thing. 

Sorry, I tweeted out the link, so I forgot to come back here and post it.  Here it is:

https://youtu.be/120xupZUHGE 

He probably said much the same thing in the Stern talk. He repeatedly a lot of the same stuff when he was on Bloomberg the last few (during covid) times. 

Basically:  Highly uncertain what this will do to CRE classes, but fading the "savants" most extreme takes about new reality (sounded like he was referring to that Land and Buildings guy to me); unlikely he would do retail; still likes cities; buys deals not sectors; CRE market kind of frozen, sellers often anchor on prior prices and delay reckoning as much as possible; thinks banks will start forcing some transactions in fall/winter; but this question about REITs was a little new.  Said cheaper than private RE; kind of attractive, but didn't sound like he was ready to start dancing.  Oh yeah I think he said he thought they would likely deploy EQC capital in fall-winter when prices thaw/reflect more reality.
« Last Edit: August 02, 2020, 03:56:14 PM by CorpRaider »