EOP Adds $1B in Assets to Disposition Plans

CHICAGO-Locally based Equity Office is putting up for sale $3 billion to $3.5 billion in assets during the next year, $1 billion more than previously announced . According to company documents, EOP is anticipating more than $700 million in profits from these planned dispositions.

Richard Kincaid, Equity Office’s president and chief executive officer, says the company continues to attract strong demand for its office assets. “As a result, we have increased our pipeline and extended the timeframe of our previously planned dispositions,” Kincaid says. “We will continue to leverage market conditions, and our level of sales may fluctuate in response to changing opportunities.”

Following the reduction in the intended holding period on these properties, EOP will recognize a non-cash impairment charge on nine assets of approximately $185 million, or 46 cents per diluted share. Approximately 65% of this impairment charge relates to one building in the Atlanta market–a market the company is exiting.