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EOP Sells Nearly $2B in Assets During First Half of 2005

CHICAGO-Equity Office Properties Trust sells 1.6 million sf in the first quarter and 7.5 million sf in the second quarter. Reaching a $1.6 billion benchmark at mid-year, the company is on target to sell an anticipated $2 billion to $3 billion of assets by year-end.

By Dana Dubriwny | Updated on July 01, 2005

CHICAGO-In its first quarter, Equity Office Properties Trust released 1.6 million sf for a total of $297.6 million, while bringing in a $1.3 billion gain during its second quarter of 2005. With the bulk of released properties located in California, disposed assets across the country totaled nearly 10 million sf.

Richard Kincaid, Equity Office’s president and chief executive officer, says that with year-to-date sales totaling $1.6 billion, the company is on target to sell $2 billion to $3 billion of assets by year-end. “It is the right business decision to take advantage of today’s strong asset-sale environment to sell non-strategic properties,” Kincaid says.

The company expects to identify approximately $80 million of gains and $170 million of non-cash impairment charges related to sales closing in the second quarter. The company notes a $200 million to $215 million impairment charge due to accelerated disposition plans and a reduction in the intended holding period on 53 additional assets (totaling 6.7 million sf) anticipated to sell after June 30, 2005. This is expected to reduce net income and FFO in the company’s second quarter results.

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