Why I'll Never Own Equity Commonwealth
Since 2014 Equity Commonwealth (NYSE: EQC) has been in the long process of starting anew. The company, which originally went public in the late 1980s as CommonWealth REIT, specialized in the ownership and management of commercial office space. However, in 2014 the company was taken over by billionaire Sam Zell, CEO of several other REITs, which ushered in a new era for the company, rebranding the company to Equity Commonwealth and transitioning it into the industrial real estate space.
Some investors see this transitory period as an opportunity to invest before the company takes off in the future, but personally, I see it as a major risk. Here's why I don't plan to ever own shares of Equity Commonwealth REIT.
A cornerstone of the company's operations over the past several years has been the extinguishment of its existing office portfolio, having sold $7.6 billion worth of assets since 2014. Today, its portfolio comprises just four office buildings in Austin, Texas; Washington D.C.; and Denver. The sale of its assets helped the company amass a sizable sum of cash, roughly $3 billion and zero debt, which it's using to help rebuild its future as an industrial operator.
Source Fool.com
