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.
In line with the company's previous announcement, EOP continues its plan to reduce the size of its portfolio in Chicago, Denver, and Northern California, and may selectively sell buildings in its other core markets. The disposition plans include all properties currently on the market and expected to be sold through December 2007.
Earlier this month, Kincaid revealed that the company would be eliminating 360 positions, which includes the termination of all regional vice presidents. The move, he said, will save the company $35 million to $40 million.
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