Equity Commonwealth (EQC) 8-K Equity Commonwealth Reports Third Quarter 2015 Results

Exhibit 99.2

Supplemental Operating and Financial Data

Third Quarter 2015

Corporate Headquarters                                Investor Relations

Two North Riverside Plaza                                Sarah Byrnes

Suite 600                                        (312) 646-2801

Chicago, IL 60606                                    ir@eqcre.com

(312) 646-2800                                        www.eqcre.com

TABLE OF CONTENTS

Corporate Information
	Company Profile and Investor Information	3
Financial Information
	Key Financial Data	4
	Condensed Consolidated Balance Sheets	5
	Additional Balance Sheet Information	6
	Condensed Consolidated Statements of Operations	7
	Additional Income Statement Information	8
	Calculation of Same Property Net Operating Income (NOI) and Same Property Cash Basis NOI	9
	Same Property Results of Operations by Property Location	10
	Calculation of EBITDA and Adjusted EBITDA	11
	Calculation of Funds from Operations (FFO) and Normalized FFO	12
	Debt Summary	13
	Debt Maturity Schedule	14
	Leverage Ratios, Coverage Ratios and Public Debt Covenants	15
	Acquisitions and Dispositions	16
Portfolio Information
	Top 30 Properties by Annualized Rental Revenue	17
	Leasing Summary	18
	Same Property Leasing Summary	19
	Leasing Summary by Property Location	20
	Occupancy and Leasing Analysis by Property Location	21
	Capital Expenditures & Leasing Commitments Summary	22
	Tenants Representing 1% or More of Annualized Rental Revenue	23
	Same Property Lease Expiration Schedule	24
	Property Detail	25
	Disposed Property Detail	28
Additional Support
	Common & Potential Common Shares	31
	Summary of Equity Investments	32
	Definitions	33
Forward-Looking Statements
Some of the statements contained in this presentation constitute forward-looking statements within the meaning of the federal securities laws. Any forward-looking statements contained in this presentation are intended to be made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Likewise, all of our statements regarding anticipated growth in our funds from operations and anticipated market conditions are forward-looking statements. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.
The forward-looking statements contained in this presentation reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). We disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause our future results to differ materially from any forward-looking statements, see the sections entitled “Risk Factors” in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

2

COMPANY PROFILE AND INVESTOR INFORMATION

Equity Commonwealth (NYSE: EQC) is an internally managed and self-advised real estate investment trust (REIT) with commercial office properties throughout the United States. EQC currently has a portfolio comprising 67 properties and 25.3 million square feet with executive offices in Chicago, IL.

	No. of		%		3Q 2015		Cash Basis
Same Property Statistics (1)	Properties	Sq. Feet	Leased		Revenues		NOI (1)
CBD	24	13,975	92.0	%	68.6	%	64.8	%
Suburban	43	11,311	91.8	%	31.4	%	35.2	%
Total	67	25,286	91.9	%	100	%	100	%

Senior Unsecured Debt Ratings	NYSE Trading Symbols
Moody's -- Baa3	Common Stock -- EQC
Standard & Poor's -- BBB-	Preferred Stock Series D -- EQC-PD
	Preferred Stock Series E -- EQC-PE
	5.75% Senior Notes due 2042 -- EQCO

Board of Trustees
Sam Zell (Chairman)	David A. Helfand	Kenneth Shea
James S. Corl	Peter Linneman	Gerald A. Spector
Martin L. Edelman	James L. Lozier, Jr.	James A. Star
Edward A. Glickman	Mary Jane Robertson
Senior Management
David A. Helfand	David S. Weinberg
President and Chief Executive Officer	Executive Vice President and
	Chief Operating Officer
Adam S. Markman	Orrin S. Shifrin
Executive Vice President,	Executive Vice President,
Chief Financial Officer and Treasurer	General Counsel and Secretary

Equity Research Coverage (2)
Bank of America / Merrill Lynch	James Feldman	(646) 855-5808	james.feldman@baml.com
Citigroup	Michael Bilerman	(212) 816-1383	michael.bilerman@citi.com
Green Street Advisors	John Bejjani	(949) 640-8780	jbejjani@greenst.com
JMP Securities	Mitch Germain	(212) 906-3546	mgermain@jmpsecurities.com
RBC Capital Markets	Rich Moore	(440) 715-2646	rich.moore@rbccm.com
Stifel Nicolaus	John Guinee	(443) 224-1307	jwguinee@stifel.com
Debt Research Coverage (2)
Citigroup	Thomas Cook	(212) 723-1112	thomas.n.cook@citi.com
Credit Suisse	John Giordano	(212) 538-4935	john.giordano@credit-suisse.com
J.P.Morgan	Mark Streeter	(212) 834-5086	mark.streeter@jpmorgan.com
Wells Fargo Securities	Thierry Perrein	(704) 410-3262	thierry.perrein@wellsfargo.com
Rating Agencies (2)
Moody's Investors Service	Lori Marks	(212) 553-1098	lori.marks@moodys.com
Standard & Poor's	Anita Ogbara	(212) 438-5077	anita.ogbara@standardandpoors.com

(1)	Refer to the Definitions section of this document.
(2)	Any opinions, estimates or forecasts regarding EQC's performance made by these analysts or agencies do not represent opinions, forecasts or predictions of EQC or its management. EQC does not by its reference to the analysts and agencies above imply its endorsement of or concurrence with any information, conclusions or recommendations provided by any of these analysts or agencies.

3

KEY FINANCIAL DATA

(amounts in thousands, except per share data)

		As of and for the Three Months Ended
		9/30/2015			6/30/2015			3/31/2015			12/31/2014			9/30/2014
OPERATING INFORMATION
	Ending property count (1)	67			86			154			156			156
	Ending square footage (1)(2)	25,286			29,385			42,752			42,919			42,919
	Percent leased (1)	91.9		%	90.6		%	85.9		%	85.8		%	85.9		%
	Total revenues	$	159,208		$	203,694		$	213,055		$	212,808		$	216,595
	NOI (3)	85,637			114,008			115,184			118,650			117,203
	Cash Basis NOI (3)	84,743			109,770			114,890			116,947			114,571
	Adjusted EBITDA (3)	75,697			104,646			107,781			107,248			99,626
	NOI margin (3)	53.8		%	56.0		%	54.1		%	55.8		%	54.1		%
	Cash Basis NOI margin	53.5		%	55.0		%	54.0		%	55.4		%	53.5		%
	Net income (loss)	30,466			12,616			13,630			(158,561		)	156,740
	Net income (loss) attributable to EQC common shareholders	23,485			5,635			6,649			(165,542		)	149,759
	FFO attributable to EQC common shareholders(3)	24,214			77,238			65,384			60,442			207,234
	Normalized FFO attributable to EQC common shareholders(3)	46,383			67,763			71,985			68,733			57,306
SHARES OUTSTANDING AND PER SHARE DATA (4)
	Shares Outstanding at End of Period
	Common stock outstanding - basic (includes unvested restricted shares)	126,350			129,760			129,734			129,607			128,894
	Dilutive restricted share units ("RSU"s) (4)	1,139			803			254			—			—
	Dilutive Series D Convertible Preferred Shares Outstanding(5)	—			—			—			—			—
	Preferred Stock Outstanding (5)	15,915			15,915			15,915			15,915			15,915
	Weighted Average Shares Outstanding - EPS & FFO
	Weighted Average Common shares outstanding - basic	128,739			129,733			129,696			129,398			128,880
	Weighted Average Common shares outstanding - diluted	129,878			130,537			129,874			129,398			131,243
	Weighted Average Shares Outstanding - Normalized FFO
	Weighted Average Common shares outstanding - basic	128,739			129,733			129,696			129,398			128,880
	Weighted Average Common shares outstanding - diluted	129,878			130,537			129,874			129,398			128,880
	Per Share Data
	Net income (loss) attributable to EQC common shareholders - basic & diluted	$	0.18		$	0.04		$	0.05		$	(1.28	)	$	1.16
	Normalized FFO attributable to EQC common shareholders - diluted	0.36			0.52			0.55			0.53			0.44
BALANCE SHEET
	Total assets	$	5,324,243		$	5,548,046		$	5,734,296		$	5,761,639		$	6,170,796
	Total liabilities	1,997,035			2,160,816			2,423,118			2,442,056			2,681,793
ENTERPRISE VALUE (3)
	Total debt (book value) (3)	$	1,828,073		$	1,973,692		$	2,205,075		$	2,207,665		$	2,442,942
	Less: Cash and cash equivalents	(1,649,162		)	(1,286,902		)	(421,736		)	(364,516		)	(597,405		)
	Plus: Market value of preferred shares (at end of period)	400,702			400,246			407,335			398,570			400,571
	Plus: Market value of dilutive common shares (at end of period)	3,472,798			3,351,558			3,451,175			3,327,012			3,313,853
	Total enterprise value	$	4,052,411		$	4,438,594		$	5,641,849		$	5,568,731		$	5,559,961
RATIOS
	Net debt (3) / enterprise value	4.4		%	15.5		%	31.6		%	33.1		%	33.2		%
	Net debt (3) / annualized adjusted EBITDA	0.6x			1.6x			4.1x			4.3x			4.6x
	Adjusted EBITDA / interest expense	3.0x			3.7x			3.6x			3.3x			2.8x

(1)	Excludes properties classified as held for sale.
(2)	Changes in total square footage result from remeasurement and property dispositions. Refer to either the schedule of Acquisitions and Dispositions or Disposed Property Detail.
(3)	Refer to the Definitions section of this document.
(4)	We grant restricted share units ("RSU"s) to certain employees, officers, and the chairman of the Board of Trustees. The RSUs contain both service and market-based vesting components. None of the RSUs have vested. Refer to the schedule of Common & Potential Common Shares for information regarding RSUs and their impact on weighted average shares outstanding.
(5)	As of September 30, 2015, we had 4,915 series D preferred shares outstanding that were convertible into 2,363 of our common shares. We exclude these shares from dilutive shares outstanding on September 30, 2015, given this conversion ratio relative to our current common stock price. However, we do consider these shares on a weighted average basis when calculating diluted EPS, FFO per share and normalized FFO per share (when dilutive for those metrics). Refer to the schedule of Common & Potential Common Shares for information regarding the series D preferred shares and their impact on diluted weighted average shares outstanding.

4

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands, except share data)

	September 30, 2015			December 31, 2014
ASSETS
Real estate properties:
Land	$	413,281		$	714,238
Buildings and improvements	3,559,060			5,014,205
	3,972,341			5,728,443
Accumulated depreciation	(884,183		)	(1,030,445		)
	3,088,158			4,697,998
Properties held for sale	112,150			—
Acquired real estate leases, net	99,017			198,287
Cash and cash equivalents	1,649,162			364,516
Restricted cash	28,463			32,257
Rents receivable, net of allowance for doubtful accounts of $9,281 and $6,565, respectively	184,679			248,101
Other assets, net	162,614			220,480
Total assets	$	5,324,243		$	5,761,639
LIABILITIES AND SHAREHOLDERS’ EQUITY
Revolving credit facility	$	—		$	—
Senior unsecured debt, net	1,460,360			1,598,416
Mortgage notes payable, net	367,713			609,249
Liabilities related to properties held for sale	1,909			—
Accounts payable and accrued expenses	121,697			162,204
Assumed real estate lease obligations, net	4,890			26,784
Rent collected in advance	29,744			31,359
Security deposits	10,722			14,044
Total liabilities	$	1,997,035		$	2,442,056
Shareholders’ equity:
Preferred shares of beneficial interest, $0.01 par value: 50,000,000 shares authorized;
Series D preferred shares; 6 1/2% cumulative convertible; 4,915,196 and 4,915,497 shares issued and outstanding, respectively, aggregate liquidation preference of $122,880 and $122,887, respectively	$	119,263		$	119,266
Series E preferred shares; 7 1/4% cumulative redeemable on or after May 15, 2016; 11,000,000 shares issued and outstanding, aggregate liquidation preference $275,000	265,391			265,391
Common shares of beneficial interest, $0.01 par value: 350,000,000 shares authorized; 126,349,914 and 129,607,279 shares issued and outstanding, respectively	1,263			1,296
Additional paid in capital	4,410,951			4,487,133
Cumulative net income	2,290,564			2,233,852
Cumulative other comprehensive loss	(5,142		)	(53,216		)
Cumulative common distributions	(3,111,868		)	(3,111,868		)
Cumulative preferred distributions	(643,214		)	(622,271		)
Total shareholders’ equity	$	3,327,208		$	3,319,583
Total liabilities and shareholders’ equity	$	5,324,243		$	5,761,639

5

ADDITIONAL BALANCE SHEET INFORMATION

(amounts in thousands)

	September 30, 2015		December 31, 2014
Additional Balance Sheet Information
Straight-line rents receivable, net of allowance for doubtful accounts	$	165,245	$	220,855
Accounts receivable, net of allowance for doubtful accounts	19,434		27,246
Rents receivable, net of allowance for doubtful accounts	$	184,679	$	248,101
Capitalized lease incentives, net	$	9,018	$	15,191
Deferred financing fees, net	19,564		16,861
Deferred leasing costs, net	105,464		126,252
Other	28,568		62,176
Other assets, net	$	162,614	$	220,480
Accounts payable	$	5,528	$	7,755
Accrued interest	14,311		25,007
Accrued taxes	41,899		57,237
Accrued capital expenditures	16,586		13,322
Accrued leasing costs	4,606		9,439
Other accrued liabilities	38,767		49,444
Accounts payable and accrued expenses	$	121,697	$	162,204

6

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Revenues
Rental income(1)	$	125,459		$	174,216		$	457,128		$	518,663
Tenant reimbursements and other income	33,749			42,379			118,829			130,386
Total revenues	$	159,208		$	216,595		$	575,957		$	649,049
Expenses:
Operating expenses	$	73,571		$	99,392		$	261,128		$	293,824
Depreciation and amortization	40,522			57,213			156,858			168,693
General and administrative	16,249			47,450			43,718			96,395
Loss on asset impairment	—			—			17,162			17,922
Acquisition related costs	—			—			—			5
Total expenses	$	130,342		$	204,055		$	478,866		$	576,839
Operating income	$	28,866		$	12,540		$	97,091		$	72,210
Interest and other income	637			406			4,813			1,071
Interest expense (including net amortization of debt discounts, premiums and deferred financing fees of $171, $(91), $23, and $(700), respectively)	(25,111		)	(35,245		)	(82,926		)	(111,079		)
(Loss) gain on early extinguishment of debt	(3,887		)	6,699			6,111			6,699
Gain on sale of equity investment	—			171,754			—			171,721
Gain on issuance of shares by an equity investee	—			—			—			17,020
Foreign currency exchange loss	(9,809		)	—			(8,953		)	—
Gain on sale of properties	39,793			—			42,953			—
Income from continuing operations before income taxes and equity in earnings of investees	30,489			156,154			59,089			157,642
Income tax expense	(23		)	(703		)	(2,377		)	(2,166		)
Equity in earnings of investees	—			1,072			—			24,460
Income from continuing operations	30,466			156,523			56,712			179,936
Discontinued operations:
Income from discontinued operations (1)	—			95			—			8,220
Gain (loss) on asset impairment from discontinued operations	—			122			—			(2,238		)
Loss on early extinguishment of debt from discontinued operations	—			—			—			(3,345		)
Net income	$	30,466		$	156,740		$	56,712		$	182,573
Preferred distributions	(6,981		)	(6,981		)	(20,943		)	(25,114		)
Excess fair value of consideration over carrying value of preferred shares	—			—			—			(16,205		)
Net income attributable to Equity Commonwealth common shareholders	$	23,485		$	149,759		$	35,769		$	141,254

(1) Rental income and income from discontinued operations include non-cash straight line rent adjustments, and non-cash amortization of intangible lease assets and liabilities.

7

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Amounts attributable to Equity Commonwealth common shareholders:
Income from continuing operations	$	23,485	$	149,542	$	35,769	$	138,617
Income from discontinued operations	—		95		—		8,220
Gain (loss) on asset impairment from discontinued operations	—		122		—		(2,238		)
Loss on early extinguishment of debt from discontinued operations	—		—		—		(3,345		)
Net income	$	23,485	$	149,759	$	35,769	$	141,254
Weighted average common shares outstanding — basic (1)	128,739		128,880		129,386		123,736
Weighted average common shares outstanding — diluted (1)	129,878		131,243		130,093		123,736
Basic earnings per common share attributable to Equity Commonwealth common shareholders:
Income from continuing operations	$	0.18	$	1.16	$	0.28	$	1.12
Income from discontinued operations	$	—	$	—	$	—	$	0.02
Net income	$	0.18	$	1.16	$	0.28	$	1.14
Diluted earnings per common share attributable to Equity Commonwealth common shareholders:
Income from continuing operations	$	0.18	$	1.16	$	0.27	$	1.12
Income from discontinued operations	$	—	$	—	$	—	$	0.02
Net income (2)	$	0.18	$	1.16	$	0.27	$	1.14

Additional Income Statement Information
Non-recurring General and administrative
Shareholder litigation and transition related expenses (3)	$	5,474	$	27,777	$	8,731		$	36,582
Fees paid to RMR (4)
Business management fee	$	—	$	9,344	$	—		$	28,558
Business management incentive fee	—		2,124		—			15,349
Transition services fee	198		—		2,613			—
Gain on sale of properties
Gain excluding reclassification of accumulated foreign currency translation adjustment	$	39,793	$	—	$	106,160		$	—
Reclassification of accumulated foreign currency translation adjustment	—		—		(63,207		)	—
Total gain on sale of properties	$	39,793	$	—	$	42,953		$	—

(1	)	Refer to the schedule of Common & Potential Common Shares for information regarding the components of our weighted average common shares outstanding.
(2	)	The series D preferred shares were dilutive for earnings per common share attributable to Equity Commonwealth common shareholders for the three months ended September 30, 2014. The numerator used to calculate earnings per common share attributable to Equity Commonwealth common shareholders per diluted share for the three months ended September 30, 2014 is $151,757, which excludes the series D preferred distribution for the same period. The series D preferred shares are anti-dilutive for all other periods presented.
(3	)	Shareholder litigation and transition related expenses within general and administrative for the three and nine months ended September 30, 2015 includes $4.6 million and $6.9 million, respectively, for the change in the fair value of the shareholder-approved liability for the reimbursement of expenses incurred by Related/Corvex since February 2013 in connection with their consent solicitations to remove the former Trustees, elect the new Board of Trustees and engage in related litigation. On August 4, 2015, we reimbursed $8.4 million to Related/Corvex under the terms of the shareholder-approved agreement. An additional $8.4 million will be reimbursed only if the average closing price of our common shares is at least $26.00 (as adjusted for any share splits or share dividends) from August 1, 2015 through July 31, 2016. As of September 30, 2015, the fair value of this liability is $5.2 million.
(4	)	Amounts represent general and administrative expenses under our business management agreement.

8

CALCULATION OF SAME PROPERTY NET OPERATING INCOME (NOI) AND SAME PROPERTY CASH BASIS NOI

(amounts in thousands)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Calculation of Same Property NOI and Same Property Cash Basis NOI (1):
Rental income	$	125,459		$	174,216		$	457,128		$	518,663
Tenant reimbursements and other income	33,749			42,379			118,829			130,386
Operating expenses	(73,571		)	(99,392		)	(261,128		)	(293,824		)
NOI	$	85,637		$	117,203		$	314,829		$	355,225
Straight line rent adjustments	(1,901		)	(3,197		)	(3,584		)	(10,172		)
Lease value amortization	2,766			2,099			6,033			8,517
Lease termination fees	(1,759		)	(1,534		)	(7,875		)	(3,272		)
Cash Basis NOI	$	84,743		$	114,571		$	309,403		$	350,298
Cash Basis NOI from non-same properties (2)	(6,560		)	(35,576		)	(64,594		)	(107,432		)
Same Property Cash Basis NOI	$	78,183		$	78,995		$	244,809		$	242,866
Non-cash rental and termination income from same properties	454			625			(1,135		)	(2,270		)
Same Property NOI	$	78,637		$	79,620		$	243,674		$	240,596
Reconciliation of Same Property NOI to GAAP Operating Income
Same Property NOI	$	78,637		$	79,620		$	243,674		$	240,596
Non-cash rental and termination income from same properties	(454		)	(625		)	1,135			2,270
Same Property Cash Basis NOI	$	78,183		$	78,995		$	244,809		$	242,866
Cash Basis NOI from non-same properties (2)	6,560			35,576			64,594			107,432
Cash Basis NOI	$	84,743		$	114,571		$	309,403		$	350,298
Straight line rent adjustments	1,901			3,197			3,584			10,172
Lease value amortization	(2,766		)	(2,099		)	(6,033		)	(8,517		)
Lease termination fees	1,759			1,534			7,875			3,272
NOI	$	85,637		$	117,203		$	314,829		$	355,225
Depreciation and amortization	(40,522		)	(57,213		)	(156,858		)	(168,693		)
General and administrative	(16,249		)	(47,450		)	(43,718		)	(96,395		)
Loss on asset impairment	—			—			(17,162		)	(17,922		)
Acquisition related costs	—			—			—			(5		)
Operating Income	$	28,866		$	12,540		$	97,091		$	72,210

(1)	Refer to the Definitions section of this document.
(2)	Cash Basis NOI from non-same properties for all periods presented includes the operations of properties disposed or classified as held for sale during 2015.

9

SAME PROPERTY RESULTS OF OPERATIONS BY PROPERTY LOCATION

(dollars and square feet in thousands)

Total	As of and for the Three Months Ended September 30,								As of and for the Nine Months Ended September 30,
	2015			2014			% Change		2015			2014			% Change
Properties	67			67					67			67
Square Feet	25,286			25,286					25,286			25,286
% Leased	91.9		%	90.6		%	1.4	%	91.9		%	90.6		%	1.4	%
Total revenue	$	140,819		$	140,082		0.5	%	$	421,512		$	421,381		—	%
Operating expenses	(62,182		)	(60,462		)	2.8	%	(177,838		)	(180,785		)	(1.6	)%
NOI (1)	$	78,637		79,620			(1.2	)%	243,674			240,596			1.3	%
NOI Margin (1)	55.8		%	56.8		%			57.8		%	57.1		%
Straight line rent adjustment	(1,654		)	(1,418		)			(473		)	(3,493		)
Lease value amortization	2,568			1,945					6,133			8,315
Lease termination fees	(1,368		)	(1,152		)			(4,525		)	(2,552		)
Cash Basis NOI (1)	78,183			78,995			(1.0	)%	244,809			242,866			0.8	%
Cash Basis NOI Margin (1)	55.7		%	56.6		%			57.9		%	57.3		%
CBD
Properties	24			24					24			24
Square Feet	13,975			13,975					13,975			13,975
% Leased	92.0		%	89.0		%	3.4	%	92.0		%	89.0		%	3.4	%
Total revenue	$	96,605		$	96,021		0.6	%	$	294,287		$	288,574		2.0	%
Operating expenses	(45,894		)	(44,038		)	4.2	%	(130,694		)	(131,927		)	(0.9	)%
NOI (1)	50,711			51,983			(2.4	)%	163,593			156,647			4.4	%
NOI Margin (1)	52.5		%	54.1		%			55.6		%	54.3		%
Straight line rent adjustment	(1,047		)	(944		)			(2,032		)	(1,321		)
Lease value amortization	2,182			1,541					4,867			7,137
Lease termination fees	(1,168		)	(1,063		)			(3,736		)	(2,353		)
Cash Basis NOI (1)	50,678			51,517			(1.6	)%	162,692			160,110			1.6	%
Cash Basis NOI Margin (1)	52.5		%	53.9		%			55.5		%	54.8		%
Suburban
Properties	43			43					43			43
Square Feet	11,311			11,311					11,311			11,311
% Leased	91.8		%	92.4		%	(0.6	)%	91.8		%	92.4		%	(0.6	)%
Total revenue	$	44,214		$	44,061		0.3	%	$	127,225		$	132,807		(4.2	)%
Operating expenses	(16,288		)	(16,424		)	(0.8	)%	(47,144		)	(48,858		)	(3.5	)%
NOI (1)	27,926			27,637			1.0	%	80,081			83,949			(4.6	)%
NOI Margin (1)	63.2		%	62.7		%			62.9		%	63.2		%
Straight line rent adjustment	(607		)	(474		)			1,559			(2,172		)
Lease value amortization	386			404					1,266			1,178
Lease termination fees	(200		)	(89		)			(789		)	(199		)
Cash Basis NOI (1)	27,505			27,478			0.1	%	82,117			82,756			(0.8	)%
Cash Basis NOI Margin (1)	62.8		%	62.6		%			63.5		%	62.9		%

(1) Refer to the Definitions section of this document.

10

CALCULATION OF EBITDA AND ADJUSTED EBITDA

(amounts in thousands)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net income	$	30,466		$	156,740		$	56,712		$	182,573
Interest expense from continuing operations	25,111			35,245			82,926			111,079
Interest expense from discontinued operations	—			31			—			608
Income tax expense	23			703			2,377			2,166
Depreciation and amortization from continuing operations	40,522			57,213			156,858			168,693
EBITDA from equity investees	—			1,564			—			36,103
Equity in earnings of investees	—			(1,072		)	—			(24,460		)
EBITDA	$	96,122		$	250,424		$	298,873		$	476,762
Loss on asset impairment from continuing operations	—			—			17,162			17,922
(Gain) loss on asset impairment from discontinued operations	—			(122		)	—			2,238
Acquisition related costs	—			—			—			5
Loss (gain) on early extinguishment of debt from continuing operations	3,887			(6,699		)	(6,111		)	(6,699		)
Loss on early extinguishment of debt from discontinued operations	—			—			—			3,345
Shareholder litigation costs and transition-related expenses	5,474			27,777			8,731			36,582
Transition services fee	198			—			2,613			—
Adjusted EBITDA from equity investees, net of EBITDA	—			—			—			64
Gain on sale of properties	(39,793		)	—			(42,953		)	—
Gain on sale of equity investments	—			(171,754		)	—			(171,721		)
Gain on issuance of shares by an equity investee	—			—			—			(17,020		)
Foreign currency exchange loss	9,809			—			8,953			—
Adjusted EBITDA	$	75,697		$	99,626		$	287,268		$	341,478

11

CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO

(amounts in thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Calculation of FFO
Net income	$	30,466		$	156,740		$	56,712		$	182,573
Depreciation and amortization	40,522			57,213			156,858			168,693
Loss on asset impairment from continuing operations	—			—			17,162			17,922
(Gain) loss on asset impairment from discontinued operations	—			(122		)	—			2,238
FFO from equity investees	—			1,456			—			33,007
Gain on sale of properties	(39,793		)	—			(42,953		)	—
Equity in earnings of investees	—			(1,072		)	—			(24,460		)
FFO attributable to Equity Commonwealth	31,195			214,215			187,779			379,973
Preferred distributions	(6,981		)	(6,981		)	(20,943		)	(25,114		)
FFO attributable to EQC Common Shareholders	$	24,214		$	207,234		$	166,836		$	354,859
Calculation of Normalized FFO
FFO attributable to EQC common shareholders	$	24,214		$	207,234		$	166,836		$	354,859
Recurring adjustments:
Lease value amortization	2,766			2,099			6,033			8,517
Straight line rent adjustments from continuing operations	(1,901		)	(3,197		)	(3,584		)	(10,172		)
Straight line rent adjustments from discontinued operations	—			—			—			(226		)
Loss (gain) on early extinguishment of debt from continuing operations	3,887			(6,699		)	(6,111		)	(6,699		)
Loss on early extinguishment of debt from discontinued operations	—			—			—			3,345
Minimum cash rent from direct financing lease (1)	2,032			2,032			6,096			6,096
Gain on sale of equity investments	—			(171,754		)	—			(171,721		)
Gain on issuance of shares by an equity investee	—			—			—			(17,020		)
Interest earned from direct financing lease	(96		)	(186		)	(356		)	(623		)
Normalized FFO from equity investees, net of FFO	—			—			—			(3,353		)
Other items which affect comparability:
Shareholder litigation and transition related expenses (2)	5,474			27,777			8,731			36,582
Transition services fee	198			—			2,613			—
Acquisition related costs	—			—			—			5
Gain on sale of securities	—			—			(3,080		)	—
Foreign currency exchange loss	9,809			—			8,953			—
Normalized FFO attributable to EQC Common Shareholders	$	46,383		$	57,306		$	186,131		$	199,590
Weighted average common shares outstanding -- basic (3)	128,739			128,880			129,386			123,736
Weighted average common shares outstanding -- diluted FFO (3)	129,878			131,243			130,093			123,736
Weighted average common shares outstanding -- diluted Normalized FFO (3)	129,878			128,880			130,093			123,736
FFO attributable to EQC common shareholders per share -- basic (3)	$	0.19		$	1.61		$	1.29		$	2.87
FFO attributable to EQC common shareholders per share -- diluted(3), (4)	$	0.19		$	1.59		$	1.28		$	2.87
Normalized FFO attributable to EQC common shareholders per share -- basic (3)	$	0.36		$	0.44		$	1.44		$	1.61
Normalized FFO attributable to EQC common shareholders per share -- diluted (3)	$	0.36		$	0.44		$	1.43		$	1.61

(1)	Contractual cash payments (including management fees) from one tenant at Arizona Center for the three and nine months ended September 30, 2015 and 2014 were $2,032 and $6,096, respectively. These payments will decrease to approximately $515 per year beginning in 2016. Our calculation of Normalized FFO reflects the cash payments received from this tenant. The terms of this tenant's lease require us to classify the lease as a direct financing (or capital) lease. As such, the revenue recognized on a GAAP basis within our condensed consolidated statements of operations was $104 and $194 for the three months ended September 30, 2015 and 2014, and $379 and $645 for the nine months ended September 30, 2015 and 2014, respectively. This direct financing lease has an expiration date in 2045.
(2)	Refer to the Additional Income Statement Information for a discussion of expenses related to the shareholder-approved Related/Corvex consent solicitation liability.
(3)	Refer to the schedule of Common & Potential Common Shares for information regarding the components of our weighted average common shares outstanding.
(4)	The series D preferred shares were dilutive for FFO attributable to EQC common shareholders for the three months ended September 30, 2014. The numerator used to calculate FFO attributable to EQC common shareholders per diluted share for the three months ended September 30, 2014 is $209,232, which excludes the series D preferred distribution for the same period. The series D preferred shares are anti-dilutive for all other periods presented.

12

DEBT SUMMARY

As of September 30, 2015

(dollars in thousands)

	Interest Rate		Principal Balance		Maturity Date	Due at Maturity		Years to Maturity
Unsecured Debt:
Unsecured Floating Rate Debt:
Revolving credit facility (LIBOR + 125 bps) (1)	1.44	%	$	—	1/28/2019	$	—	3.3
Term loan (LIBOR + 140 bps) (2)	1.59	%	200,000		1/28/2020	200,000		4.3
Term loan (LIBOR + 180 bps) (2)	1.99	%	200,000		1/28/2022	200,000		6.3
Total / weighted average unsecured floating rate debt	1.79	%	$	400,000		$	400,000	5.3
Unsecured Fixed Rate Debt:
6.25% Senior Unsecured Notes Due 2016	6.25	%	$	139,104	8/15/2016	$	139,104	0.9
6.25% Senior Unsecured Notes Due 2017	6.25	%	250,000		6/15/2017	250,000		1.7
6.65% Senior Unsecured Notes Due 2018	6.65	%	250,000		1/15/2018	250,000		2.3
5.875% Senior Unsecured Notes Due 2020	5.88	%	250,000		9/15/2020	250,000		5.0
5.75% Senior Unsecured Notes Due 2042	5.75	%	175,000		8/1/2042	175,000		26.9
Total / weighted average unsecured fixed rate debt	6.17	%	$	1,064,104		$	1,064,104	6.6
Secured Fixed Rate Debt:
111 Monument Circle	5.24	%	$	116,000	3/1/2016	$	116,000	0.4
Parkshore Plaza	5.67	%	41,275		5/1/2017	41,275		1.6
1735 Market Street (3)	5.66	%	170,097		12/2/2019	160,710		4.2
206 East 9th Street	5.69	%	27,631		1/5/2021	24,836		5.3
33 Stiles Lane	6.75	%	2,874		3/1/2022	—		6.4
97 Newberry Road	5.71	%	6,488		3/1/2026	—		10.4
Total / weighted average secured fixed rate debt	5.54	%	$	364,365		$	342,821	2.9
Total / weighted average (4)	5.09	%	$	1,828,469		$	1,806,925	5.6

(1)	Represents amounts outstanding on EQC's $750,000 revolving credit facility as of September 30, 2015. The interest rate presented is as of September 30, 2015, and equals LIBOR plus 1.25%. We also pay a 25 basis point facility fee annually. The spread over LIBOR and the facility fee vary depending upon EQC's credit rating.
(2)	Represents amounts outstanding on EQC's term loans as of September 30, 2015. The interest rate presented is as of September 30, 2015, and equals LIBOR plus 1.4% for the loan maturing on January 28, 2020, and LIBOR plus 1.8% for the loan maturing January 28, 2022. The spreads over LIBOR vary depending upon EQC's credit rating.
(3)	Interest is payable at a rate equal to LIBOR plus 2.625% but has been fixed by a cash flow hedge, which sets the rate at approximately 5.66% until December 1, 2016.
(4)	Total debt outstanding as of September 30, 2015, including net unamortized premiums and discounts, was $1,828,073.

13

DEBT MATURITY SCHEDULE

(dollars in thousands)

Scheduled Payments During Period
Year	Unsecured Floating Rate Debt				Unsecured Fixed Rate Debt			Secured Fixed Rate Debt				Total				Weighted Average Interest Rate
2015	$	—			$	—		$	802			$	802			5.8	%
2016	—				139,104			119,347				258,451				5.8	%
2017	—				250,000			44,865				294,865				6.2	%
2018	—				250,000			3,847				253,847				6.6	%
2019	—				—			164,613			(1)	164,613				5.7	%
2020	200,000			(2)	250,000			1,674				451,674				4.0	%
2021	—				—			25,982				25,982				5.7	%
2022	200,000			(2)	—			799				200,799				2.0	%
2023	—				—			702				702				5.7	%
2024	—				—			743				743				5.7	%
Thereafter	—				175,000			991				175,991				5.8	%
Total	$	400,000			$	1,064,104		$	364,365			$	1,828,469		(3)	5.1	%
Percent	21.9		%		58.2		%	19.9		%		100.0		%

(1)	Interest is payable at a rate equal to LIBOR plus 2.625% but has been fixed by a cash flow hedge, which sets the rate at approximately 5.66% until December 1, 2016.
(2)	Represents amounts outstanding on EQC's term loans as of September 30, 2015. The interest rate presented is as of September 30, 2015, and equals LIBOR plus 1.4% for the loan maturing on January 28, 2020, and LIBOR plus 1.8% for the loan maturing January 28, 2022. The spreads over LIBOR vary depending upon EQC's credit rating.
(3)	Total debt outstanding as of September 30, 2015, including net unamortized premiums and discounts, was $1,828,073.

14

LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS

(dollars in thousands)

	As of and for the Three Months Ended
	9/30/2015		6/30/2015		3/31/2015		12/31/2014		9/30/2014
Leverage Ratios
Total debt (1) / total assets	34.3	%	35.6	%	38.5	%	38.3	%	39.6	%
Total debt (1) / total market capitalization	32.1	%	34.5	%	36.4	%	37.2	%	39.7	%
Total debt (1) + preferred stock / total market capitalization	39.1	%	41.5	%	43.1	%	43.9	%	46.2	%
Total debt (1) / annualized adjusted EBITDA	6.0x		4.7x		5.1x		5.1x		6.1x
Total debt (1) + preferred stock / annualized adjusted EBITDA	7.4x		5.7x		6.1x		6.1x		7.1x
Net debt (1) / enterprise value (1)	4.4	%	15.5	%	31.6	%	33.1	%	33.2	%
Net debt (1) + preferred stock / enterprise value (1)	14.3	%	24.5	%	38.8	%	40.3	%	40.4	%
Net debt (1) / annualized adjusted EBITDA	0.6x		1.6x		4.1x		4.3x		4.6x
Net debt (1) + preferred stock / annualized adjusted EBITDA	1.9x		2.6x		5.1x		5.2x		5.6x
Secured debt / total assets	6.9	%	9.3	%	10.6	%	10.6	%	10.0	%
Variable rate debt / total debt (1)	21.9	%	20.3	%	18.1	%	18.1	%	20.5	%
Variable rate debt / total assets	7.5	%	7.2	%	7.0	%	6.9	%	8.1	%
Coverage Ratios
Adjusted EBITDA (1) / interest expense	3.0x		3.7x		3.6x		3.3x		2.8x
Adjusted EBITDA (1) / interest expense + preferred distributions	2.4x		3.0x		2.9x		2.7x		2.4x
Public Debt Covenants
Debt / adjusted total assets (2) (maximum 60%)	29.5	%	29.9	%	30.9	%	31.0	%	33.4	%
Secured debt / adjusted total assets (2) (maximum 40%)	5.9	%	7.8	%	8.5	%	8.6	%	8.5	%
Consolidated income available for debt service (1) / debt service (minimum 1.5x)	3.3x		3.3x		3.9x		3.9x		3.4x
Total unencumbered assets (2) / unsecured debt (minimum 150% / 200%)	378.3	%	394.7	%	386.5	%	385.6	%	348.7	%

(1)	Refer to the Definitions section of this document.
(2)	Adjusted total assets and total unencumbered assets includes original cost of real estate assets plus capital improvements, both calculated in accordance with GAAP, and excludes depreciation and amortization, accounts receivable, other intangible assets and impairment write downs, if any.

15

ACQUISITIONS AND DISPOSITIONS

(dollars in thousands)

Acquisitions

None

Dispositions
Property/Portfolio	City	State	No. of Properties	Sq. Feet (1)	% Leased(1)		Gross Sales Price			Net Book Value (1),(2)		Secured Mortgage Debt			Annualized Rental Revenue (1)
11350 N Meridian St.	Carmel	IN	1	72,264	78.4	%	$	4,200		$	2,537	$	—		$	751
333 Laurel Oak Dr.	Voorhees	NJ	_(3)	27,164	0.0	%	2,450			1,441		—			—
1921 E Alton Ave.	Santa Ana	CA	1	67,846	84.7	%	14,533			8,567		—			1,691
Total Q1 Dispositions			2	167,274	68.2	%	$	21,183		$	12,545	$	—		$	2,442
Small Office & Industrial Assets Portfolio	Multiple	Multi.	45	5,287,790	77.5	%	$	376,000		$	346,937	$	—		$	67,723
Land Parcel	Birmingham	AL	N/A	N/A	N/A		2,000			155		—			N/A
225 Water Street (4)	Jacksonville	FL	1	318,997	44.7	%	N/A			19,357		40,059			3,144
AL, LA, NC, SC Office Portfolio (5)	Multiple	Multi.	6	3,031,848	89.6	%	417,450			294,567		48,653		(6)	55,799
Sorrento Valley Business Park	San Diego	CA	1	105,003	100.0	%	23,500			10,405		—			2,193
Australia Office and Industrial Portfolio	Multiple	Austr.	11	1,758,525	95.7	%	232,955			192,661		—			23,389
St. Louis Portfolio	St. Louis	MO	2	165,098	77.6	%	14,300			14,500		—			2,731
Total Q2 Dispositions			66	10,667,261	83.2	%	$	1,066,205		$	878,582	$	88,712		$	154,979
Illinois Center	Chicago	IL	1	2,090,162	71.6	%	$	376,000	(7)	$	306,863	$	141,354	(8)	$	45,965
16th and Race Street	Philadelphia	PA	1	608,625	0.0	%	43,000			34,391		—			—
Upstate New York Portfolio	Multiple	NY	11	1,966,928	79.8	%	104,625			104,602		—			27,627
185 Asylum Street	Hartford	CT	1	868,395	98.7	%	113,250			72,971		—			20,971
Total Q3 Dispositions			14	5,534,110	70.9	%	$	636,875		$	518,827	$	141,354		$	94,563
Total 2015 Year-to-Date Dispositions			82	16,368,645	78.9	%	$	1,724,263		$	1,409,954	$	230,066		$	251,984

The dispositions above resulted in a gain on sale of properties of $39.8 million and $43.0 million for the three and nine months ended September 30, 2015, respectively.

(1	)	As of or for the quarter-ended preceding each sale.
(2	)	Refer to the Definitions section of this document.
(3	)	We sold one building in a property containing multiple buildings.
(4	)	On May 22, 2015, title to 225 Water Street was transferred to the lender pursuant to the consensual foreclosure in full satisfaction of the mortgage debt. The transaction resulted in a gain on extinguishment of debt of $17.3 million for the nine months ended September 30, 2015.
(5	)	Proceeds from the AL, LA, NC, SC portfolio sale, net of mortgage debt repayments and credits for contractual lease costs, were $320 million.
(6	)	Comprised of the secured mortgage loan for 1320 Main Street, $38.7 million, and the secured mortgage loan for 2501 20th Place South, $10.0 million. Excludes defeasance costs of $7.4 million for 1320 Main Street and a prepayment fee of $0.8 million for 2501 20th Place South.
(7	)	Proceeds from the Illinois Center sale, net of mortgage debt repayments, defeasance costs, and credits for contractual lease costs, were $211.2 million.
(8	)	Comprised of the secured mortgage loan for one building at Illinois Center, $141.4 million. Excludes defeasance costs of $5.8 million.

16

TOP 30 PROPERTIES BY ANNUALIZED RENTAL REVENUE ⁽¹⁾ 

As of September 30, 2015

(sorted by annualized rental revenue, dollars in thousands)

Property		City	State	No. of Buildings		CBD/SUB		Sq. Feet		% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
1	600 West Chicago Avenue	Chicago	IL	2		CBD		1,511,849		99.7	%	$	46,647	$	356,596	$	323,024	2011	2001
2	1735 Market Street	Philadelphia	PA	1		CBD		1,290,678		88.1	%	36,717		298,703		179,645		1998	1990
3	1500 Market Street	Philadelphia	PA	1		CBD		1,773,967		82.1	%	35,866		286,276		209,891		2002	1974
4	111 River Street	Hoboken	NJ	1		CBD		566,215		99.7	%	23,180		135,443		114,675		2009	2002
5	1225 Seventeenth Street	Denver	CO	1		CBD		672,465		98.3	%	22,370		148,132		127,602		2009	1982
6	111 Monument Circle	Indianapolis	IN	2		CBD		1,063,885		83.4	%	22,287		175,836		163,842		2012	1990
7	333 108th Avenue NE	Bellevue	WA	1		CBD		416,503		100.0	%	18,476		152,557		131,402		2009	2008
8	1600 Market Street	Philadelphia	PA	1		CBD		825,968		86.0	%	18,297		132,307		77,788		1998	1983
9	6600 North Military Trail	Boca Raton	FL	3		SUB		639,830		100.0	%	16,171		145,760		130,348		2011	2008
10	North Point Office Complex	Cleveland	OH	2		CBD		873,335		83.8	%	15,770		122,938		101,457		2008	1988
11	8750 Bryn Mawr Avenue	Chicago	IL	2		SUB		631,518		90.0	%	15,439		90,998		79,868		2010	2005
12	Arizona Center (4)	Phoenix	AZ	4		CBD		1,070,724		94.1	%	14,776		98,996		90,083		2011	1992
13	Foster Plaza	Pittsburgh	PA	8		SUB		727,365		84.8	%	12,247		75,003		55,999		2005	1993
14	101-115 W. Washington Street	Indianapolis	IN	1		CBD		634,058		93.9	%	12,159		90,320		67,104		2005	1977
15	111 Market Place	Baltimore	MD	1		CBD		540,854		99.4	%	12,115		76,988		53,099		2003	1990
16	Research Park	Austin	TX	4		SUB		1,110,007		98.0	%	11,484		90,636		61,754		1998	1976
17	Bridgepoint Parkway	Austin	TX	5		SUB		440,007		95.2	%	11,316		88,233		51,290		1997	1995
18	100 East Wisconsin Avenue	Milwaukee	WI	1		CBD		435,067		92.7	%	10,809		82,330		71,579		2010	1989
19	East Eisenhower Parkway	Ann Arbor	MI	2		SUB		410,464		92.3	%	10,165		55,163		48,657		2010	2006
20	109 Brookline Avenue	Boston	MA	1		CBD		285,556		99.8	%	9,887		45,811		27,473		1995	1915
21	111 East Kilbourn Avenue	Milwaukee	WI	1		CBD		373,669		95.0	%	9,523		55,092		44,965		2008	1988
22	Cherrington Corporate Center	Moon Township	PA	7		SUB		454,890		78.0	%	7,653		73,972		53,249		1998; 1999	1997
23	1601 Dry Creek Drive	Longmont	CO	1		SUB		552,865		95.1	%	7,318		32,748		23,774		2004	1982
24	25 S. Charles Street	Baltimore	MD	1		CBD		343,815		94.4	%	7,254		38,504		26,355		2004	1972
25	5073, 5075, & 5085 S. Syracuse Street	Denver	CO	1		SUB		248,493		100.0	%	7,164		63,610		55,635		2010	2007
26	Danac Stiles Business Park	Rockville	MD	3		SUB		276,637		85.4	%	6,934		65,565		47,061		2004	2002
27	1250 H Street, NW	Washington	DC	1		CBD		187,684		93.0	%	6,596		67,827		42,318		1998	1992
28	600 108th Avenue NE	Bellevue	WA	1		CBD		243,520		97.2	%	6,452		47,249		35,812		2004	2012
29	Georgetown-Green and Harris Buildings	Washington	DC	2		CBD		240,475		100.0	%	6,226		60,023		54,549		2009	2006
30	206 East 9th Street	Austin	TX	1		CBD		170,052		100.0	%	6,073		48,471		45,055		2012	1984
	Subtotal (30 properties)			63				19,012,415		91.9	%	$	447,371	$	3,302,087	$	2,595,353
	All other properties (37 properties)			69				6,273,966		91.7	%	71,801		669,010		491,727
	Total (67 properties)			132				25,286,381		91.9	%	$	519,172	$	3,971,097	$	3,087,080
				Q3 2015 NOI (2)		% of NOI		Q3 2015 Cash Basis NOI (2)		% of Cash Basis NOI
	Top 30 Properties			$	67,138	85.4	%	$	67,040	85.7	%
	All other properties (37 properties)			11,499		14.6	%	11,143		14.3	%
	Total (67 properties)			$	78,637	100	%	$	78,183	100.0	%

(1)	Excludes properties classified as held for sale.
(2)	Refer to the Definitions section of this document.
(3)	Weighted based on square feet.
(4)	Contractual cash payments (including management fees) from one tenant at Arizona Center for the three and nine months ended September 30, 2015 and 2014 were $2,032 and $6,096, respectively. These payments will decrease to approximately $515 per year beginning in 2016. The terms of this tenant's lease require us to classify the lease as a direct financing (or capital) lease. As such, the revenue recognized on a GAAP basis within our condensed consolidated statements of operations was $104 and $194 for the three months ended September 30, 2015 and 2014, and $379 and $645 for the nine months ended September 30, 2015 and 2014, respectively. Annualized rental revenue excludes the cash payments received from this tenant. This direct financing lease has an expiration date in 2045.

17

LEASING SUMMARY

(dollars and square feet in thousands, except per square foot data)

	As of and for the Three Months Ended
	9/30/2015			6/30/2015			3/31/2015			12/31/2014			9/30/2014
Properties	67			86			154			156			156
Total square feet (1)	25,286			29,385			42,752			42,919			42,919
Percentage leased (2)	91.9		%	90.6		%	85.9		%	85.8		%	85.9		%
Total Leases
Square feet	1,384			1,030			1,478			1,448			1,109
Lease term (years)	6.3			5.5			6.6			4.8			10.8
Starting cash rent	$	29.89		$	21.37		$	21.70		$	22.87		$	23.05
Percent change in cash rent (3)	3.2		%	(1.9		)%	0.0		%	1.2		%	(2.8		)%
Percent change in GAAP rent (3)	9.1		%	5.4		%	5.6		%	8.1		%	0.1		%
Total TI & LC per square foot (4)	$	39.35		$	22.63		$	27.61		$	14.92		$	30.66
Total TI & LC per sq. ft. per year of lease term (4)	$	6.22		$	4.11		$	4.20		$	3.08		$	2.84
Renewal Leases
Square feet	955			518			758			1,173			792
Lease term (years)	5.0			5.2			4.5			4.5			12.4
Starting cash rent	$	28.95		$	22.55		$	19.99		$	22.63		$	26.67
Percent change in cash rent (3)	3.1		%	(3.4		)%	(2.8		)%	1.6		%	(2.8		)%
Percent change in GAAP rent (3)	8.5		%	5.3		%	(0.1		)%	8.8		%	0.4		%
Total TI & LC per square foot (4)	$	29.74		$	19.37		$	12.09		$	10.17		$	37.39
Total TI & LC per sq. ft. per year of lease term (4)	$	5.89		$	3.74		$	2.70		$	2.28		$	3.02
New Leases
Square feet	429			512			720			275			317
Lease term (years)	9.2			5.8			8.8			6.4			7.0
Starting cash rent	$	31.98		$	20.18		$	23.49		$	23.88		$	14.01
Percent change in cash rent (3)	3.6		%	0.7		%	3.6		%	(2.9		)%	(2.9		)%
Percent change in GAAP rent (3)	11.4		%	5.5		%	12.7		%	1.3		%	(1.6		)%
Total TI & LC per square foot (4)	$	60.72		$	25.93		$	43.95		$	35.16		$	13.83
Total TI & LC per sq. ft. per year of lease term (4)	$	6.62		$	4.44		$	4.99		$	5.48		$	1.98

The above leasing summary is based on leases executed during the periods indicated.
(1)	Changes in total square footage result from remeasurement and property dispositions. Refer to either the schedule of Acquisitions and Dispositions or Disposed Property Detail.
(2)	Refer to the Definitions section of this document.
(3)	Percent change in GAAP and cash rent is a comparison of current rent (including tenant expense reimbursements, if any, and excluding any initial period free rent), to the rent (including tenant expense reimbursements, if any) last received for the same space during EQC's ownership on a GAAP and cash basis, respectively. Beginning in Q4 2014, new leasing in suites vacant longer than 2 years were excluded from the calculation.
(4)	Includes tenant improvements (TI) and leasing commissions (LC).

18

SAME PROPERTY LEASING SUMMARY

(dollars and square feet in thousands, except per square foot data)

	As of and for the Three Months Ended
	9/30/2015			6/30/2015			3/31/2015			12/31/2014			9/30/2014
Properties	67			67			67			67			67
Total square feet	25,286			25,286			25,286			25,286			25,286
Percentage leased (1)	91.9		%	91.7		%	90.5		%	90.3		%	90.6		%
Total Leases
Square feet	1,384			811			784			1,056			638
Lease term (years)	6.3			5.9			8.3			4.2			13.4
Starting cash rent	$	29.89		$	21.21		$	24.49		$	25.78		$	30.86
Percent change in cash rent (2)	3.2		%	(0.5		)%	2.6		%	3.8		%	(5.1		)%
Percent change in GAAP rent (2)	9.1		%	7.3		%	10.9		%	10.1		%	(1.8		)%
Total TI & LC per square foot (3)	$	39.35		$	25.26		$	40.26		$	15.62		$	47.19
Total TI & LC per sq. ft. per year of lease term (3)	$	6.22		$	4.29		$	4.72		$	3.38		$	3.52
Renewal Leases
Square feet	955			360			163			896			516
Lease term (years)	5.0			6.0			5.1			3.7			15.2
Starting cash rent	$	28.95		$	24.15		$	26.91		$	25.43		$	33.58
Percent change in cash rent (2)	3.1		%	(2.3		)%	0.6		%	5.0		%	(4.0		)%
Percent change in GAAP rent (2)	8.5		%	7.7		%	6.4		%	11.0		%	(0.7		)%
Total TI & LC per square foot (3)	$	29.74		$	24.14		$	16.91		$	10.72		$	53.19
Total TI & LC per sq. ft. per year of lease term (3)	$	5.89		$	4.04		$	3.28		$	2.88		$	3.49
New Leases
Square feet	429			451			621			160			122
Lease term (years)	9.2			5.8			9.1			7.0			6.0
Starting cash rent	$	31.98		$	18.86		$	23.86		$	27.72		$	19.37
Percent change in cash rent (2)	3.6		%	1.9		%	3.3		%	(8.4		)%	(12.2		)%
Percent change in GAAP rent (2)	11.4		%	6.7		%	12.6		%	1.2		%	(9.4		)%
Total TI & LC per square foot (3)	$	60.72		$	26.16		$	46.39		$	43.09		$	21.79
Total TI & LC per sq. ft. per year of lease term (3)	$	6.62		$	4.49		$	5.10		$	6.18		$	3.64

The above leasing summary is based on leases executed during the periods indicated.
(1)	Refer to the Definitions section of this document.
(2)	Percent change in GAAP and cash rent is a comparison of current rent (including tenant expense reimbursements, if any, and excluding any initial period free rent), to the rent (including tenant expense reimbursements, if any) last received for the same space during EQC's ownership on a GAAP and cash basis, respectively. Beginning in Q4 2014, new leasing in suites vacant longer than 2 years were excluded from the calculation.
(3)	Includes tenant improvements (TI) and leasing commissions (LC).

19

LEASING SUMMARY BY PROPERTY LOCATION

(dollars and square feet in thousands, except per square foot data)

	As of and for the Three Months Ended
	September 30, 2015
	CBD Properties			Suburban Properties			Total
Properties	24			43			67
Total square feet	13,975			11,311			25,286
Percentage leased (1)	92.0		%	91.8		%	91.9		%
Total Leases
Square feet	1,048			336			1,384
Lease term (years)	6.5			5.8			6.3
Starting cash rent	$	32.41		$	22.03		$	29.89
Percentage change in cash rent (2)	1.4		%	12.7		%	3.2		%
Percentage change in GAAP rent (2)	6.1		%	24.4		%	9.1		%
Total TI & LC per square foot (3)	$	45.35		$	20.64		$	39.35
Total TI & LC per sq. ft. per year of lease term (3)	$	6.97		$	3.57		$	6.22
Renewal Leases
Square feet	705			250			955
Lease term (years)	5.0			5.2			5.0
Starting cash rent	$	31.98		$	20.39		$	28.95
Percentage change in cash rent (2)	1.1		%	13.0		%	3.1		%
Percentage change in GAAP rent (2)	5.1		%	26.0		%	8.5		%
Total TI & LC per square foot (3)	$	34.77		$	15.58		$	29.74
Total TI & LC per sq. ft. per year of lease term (3)	$	6.97		$	2.99		$	5.89
New Leases
Square feet	343			86			429
Lease term (years)	9.6			7.4			9.2
Starting cash rent	$	33.29		$	26.80		$	31.98
Percentage change in cash rent (2)	2.1		%	11.6		%	3.6		%
Percentage change in GAAP rent (2)	9.9		%	18.8		%	11.4		%
Total TI & LC per square foot (3)	$	67.09		$	35.32		$	60.72
Total TI & LC per sq. ft. per year of lease term (3)	$	6.98		$	4.77		$	6.62

The above leasing summary is based on leases executed during the periods indicated.
(1)	Refer to the Definitions section of this document.
(2)	Percent change in GAAP and cash rent is a comparison of current rent (including tenant expense reimbursements, if any, and excluding any initial period free rent), to the rent (including tenant expense reimbursements, if any) last received for the same space during EQC's ownership on a GAAP and cash basis, respectively. New leasing in suites vacant longer than 2 years is excluded from the calculation.
(3)	Includes tenant improvements (TI) and leasing commissions (LC).

20

OCCUPANCY AND LEASING ANALYSIS BY PROPERTY LOCATION

(square feet in thousands)

Square Footage Leased - Three Months Ended September 30, 2015	CBD Properties				SUB Properties				Total Properties
	Square Feet		% Leased		Square Feet		% Leased		Square Feet		% Leased
Total Portfolio - June 30, 2015	14,289		90.6	%	12,342		90.6	%	26,631		90.6	%
Less: Leased SF of Sold Assets	1,589		88.5	%	1,850		80.3	%	3,439		83.9	%
Same Property - June 30, 2015	12,700		90.9	%	10,492		92.8	%	23,192		91.7	%
Expirations	(896	)	(6.4	)%	(446	)	(3.8	)%	(1,342	)	(5.3	)%
Renewal Leases	705		5.0	%	250		2.2	%	955		3.8	%
New Leases	343		2.5	%	86		0.8	%	429		1.7	%
Total Leases	1,048		7.5	%	336		3.0	%	1,384		5.5	%
Same Property - September 30, 2015	12,852		92.0	%	10,382		91.8	%	23,234		91.9	%
Square Footage Leased - Nine Months Ended September 30, 2015	CBD Properties				SUB Properties				Total Properties
	Square Feet		% Leased		Square Feet		% Leased		Square Feet		% Leased
Total Portfolio - December 31, 2014	18,552		84.7	%	18,288		87.0	%	36,840		85.8	%
Less: Leased SF of Sold Assets	6,073		76.7	%	7,938		81.7	%	14,011		79.5	%
Same Property - December 31, 2014	12,479		89.3	%	10,350		91.5	%	22,829		90.3	%
Expirations	(1,373	)	(9.8	)%	(1,201	)	(10.6	)%	(2,574	)	(10.1	)%
Renewal Leases	1,027		7.4	%	450		4.0	%	1,478		5.8	%
New Leases	719		5.1	%	783		6.9	%	1,501		5.9	%
Total Leases	1,746		12.5	%	1,233		10.9	%	2,979		11.7	%
Same Property - September 30, 2015	12,852		92.0	%	10,382		91.8	%	23,234		91.9	%

	Total Square Feet Owned as of
Property Location	September 30, 2015	June 30, 2015	December 31, 2014
CBD Properties	13,975	15,769	21,892
Suburban Properties	11,311	13,616	21,027
Total	25,286	29,385	42,919

21

CAPITAL EXPENDITURES & LEASING COMMITMENTS SUMMARY

(dollars and square feet in thousands, except per square foot data)

CAPITAL EXPENDITURES SUMMARY	For the Three Months Ended
	9/30/2015		6/30/2015		3/31/2015		12/31/2014		9/30/2014
Tenant improvements	$	13,497	$	11,734	$	8,167	$	15,989	$	10,719
Leasing costs	14,166		9,698		10,868		10,517		15,838
Building improvements (1)	4,975		5,012		2,674		8,206		5,897
Development, redevelopment and other activities	352		163		76		1,544		2,273
Total capital expenditures	$	32,990	$	26,607	$	21,785	$	36,256	$	34,727
Average square feet during period (2)	27,336		37,418		42,835		42,919		42,919
Building improvements per average total sq. ft. during period	$	0.18	$	0.13	$	0.06	$	0.19	$	0.14

LEASING COMMITMENTS	For the Three Months Ended
SUMMARY	September 30, 2015
	New Leases		Renewals		Total
Rentable square feet leased during the period	429		955		1,384
Total TI & LC (3)	$	26,049	$	28,402	$	54,451
Total TI & LC per rentable square foot (3)	$	60.72	$	29.74	$	39.35
Weighted average lease term by square foot (years)	9.2		5.0		6.3
Total TI & LC per rentable square foot per year (3)	$	6.62	$	5.89	$	6.22

(1)	Tenant-funded capital expenditures are excluded.
(2)	Average square feet during each period includes properties held for sale at the end of each period.
(3)	Includes tenant improvements (TI) and leasing commissions (LC).

22

TENANTS REPRESENTING 1% OR MORE OF ANNUALIZED RENTAL REVENUE

As of September 30, 2015

(square feet in thousands)

	Tenant (1)	Square Feet (2)	% of Total Sq. Ft. (2)		% of Annualized Rental Revenue (3)		Weighted Average Remaining Lease Term
1	Expedia, Inc.	398	1.7	%	3.4	%	3.1
2	Office Depot, Inc.	640	2.8	%	3.1	%	8.1
3	John Wiley & Sons, Inc.	414	1.8	%	3.1	%	16.5
4	PNC Financial Services Group	587	2.5	%	2.9	%	5.4
5	Flextronics International Ltd.	1,051	4.5	%	2.1	%	4.3
6	J.P. Morgan Chase & Co.	356	1.5	%	2.0	%	9.2
7	Level 3 Communications, Inc.	212	0.9	%	1.9	%	4.7
8	Groupon, Inc. (4)	394	1.7	%	1.8	%	9.9
9	Jones Day	343	1.5	%	1.7	%	10.8
10	Towers Watson & Co	376	1.6	%	1.6	%	4.2
11	Ballard Spahr LLP	218	0.9	%	1.5	%	14.4
12	Carmike Cinemas, Inc.	552	2.4	%	1.5	%	0.9
13	RE/MAX Holdings, Inc.	249	1.1	%	1.4	%	12.6
14	Sunoco	147	0.6	%	1.3	%	2.0
15	Exelon Corporation	279	1.2	%	1.3	%	2.7
16	Georgetown University	241	1.0	%	1.2	%	4.0
17	The Bank of New York Mellon Corp.	99	0.4	%	1.1	%	6.2
18	University of Pennsylvania Health System	238	1.0	%	1.1	%	6.1
19	Wm. Wrigley Jr. Company	150	0.6	%	1.1	%	6.3
20	FMC Corporation	207	0.9	%	1.0	%	0.7
	Total	7,151	30.6	%	36.1	%	6.5

(1)	Tenants located in properties classified as held for sale are excluded.
(2)	Square footage is pursuant to existing leases as of September 30, 2015 and includes (i) space being fitted out for occupancy and (ii) space which is leased but is not occupied or is being offered for sublease.
(3)	Refer to the Definitions section of this document.
(4)	Groupon, Inc. statistics include 207,536 square feet that are sublet from Bankers Life and Casualty Company.

23

SAME PROPERTY LEASE EXPIRATION SCHEDULE

As of September 30, 2015 (dollars and sq. ft. in thousands)

Total Properties
Year		Number of Tenants Expiring	Sq. Ft. Expiring (1)	% of Sq. Ft. Expiring		Cumulative % of Sq. Ft. Expiring		Annualized Rental Revenue Expiring (2)	% of Annualized Rental Revenue Expiring		Cumulative % of Annualized Rental Revenue Expiring
2015	(3)	80	765	3.3	%	3.3	%	28,877	5.6	%	5.6	%
2016		161	2,268	9.8	%	13.1	%	44,395	8.6	%	14.2	%
2017		152	2,226	9.6	%	22.7	%	47,948	9.2	%	23.4	%
2018		157	2,550	11.0	%	33.7	%	65,138	12.5	%	35.9	%
2019		111	1,642	7.1	%	40.8	%	44,810	8.6	%	44.5	%
2020		128	4,034	17.3	%	58.1	%	54,881	10.6	%	55.1	%
2021		71	2,008	8.6	%	66.7	%	47,673	9.2	%	64.3	%
2022		44	968	4.2	%	70.9	%	27,946	5.4	%	69.7	%
2023		46	1,620	7.0	%	77.9	%	43,156	8.3	%	78.0	%
2024		20	612	2.6	%	80.5	%	12,352	2.4	%	80.4	%
Thereafter		67	4,541	19.5	%	100.0	%	101,996	19.6	%	100.0	%
Total		1,037	23,234	100.0	%			519,172	100.0	%
Weighted average remaining
lease term (in years)			5.9					5.7
CBD Properties
Year		Number of Tenants Expiring	Sq. Ft. Expiring (1)	% of Sq. Ft. Expiring		Cumulative % of Sq. Ft. Expiring		Annualized Rental Revenue Expiring (2)	% of Annualized Rental Revenue Expiring		Cumulative % of Annualized Rental Revenue Expiring
2015		54	456	3.5	%	3.5	%	22,232	6.3	%	6.3	%
2016		82	902	7.0	%	10.5	%	22,304	6.3	%	12.6	%
2017		86	1,089	8.5	%	19.0	%	30,469	8.7	%	21.3	%
2018		95	1,679	13.1	%	32.1	%	52,316	14.9	%	36.2	%
2019		73	1,079	8.4	%	40.5	%	26,835	7.6	%	43.8	%
2020		68	1,329	10.3	%	50.8	%	35,962	10.2	%	54.0	%
2021		51	1,451	11.3	%	62.1	%	36,277	10.3	%	64.3	%
2022		33	790	6.1	%	68.2	%	23,665	6.7	%	71.0	%
2023		31	563	4.4	%	72.6	%	17,162	4.9	%	75.9	%
2024		13	225	1.8	%	74.4	%	8,577	2.5	%	78.4	%
Thereafter		54	3,289	25.6	%	100.0	%	76,059	21.6	%	100.0	%
Total		640	12,852	100.0	%			351,858	100.0	%
Weighted average remaining
lease term (in years)			6.7					5.9
Suburban Properties
Year		Number of Tenants Expiring	Sq. Ft. Expiring (1)	% of Sq. Ft. Expiring		Cumulative % of Sq. Ft. Expiring		Annualized Rental Revenue Expiring (2)	% of Annualized Rental Revenue Expiring		Cumulative % of Annualized Rental Revenue Expiring
2015	(3)	26	309	3.0	%	3.0	%	6,645	4.0	%	4.0	%
2016		79	1,366	13.2	%	16.2	%	22,091	13.2	%	17.2	%
2017		66	1,137	11.0	%	27.2	%	17,479	10.4	%	27.6	%
2018		62	871	8.4	%	35.6	%	12,822	7.7	%	35.3	%
2019		38	563	5.4	%	41.0	%	17,975	10.7	%	46.0	%
2020		60	2,705	25.9	%	66.9	%	18,919	11.3	%	57.3	%
2021		20	557	5.4	%	72.3	%	11,396	6.8	%	64.1	%
2022		11	178	1.7	%	74.0	%	4,281	2.6	%	66.7	%
2023		15	1,057	10.2	%	84.2	%	25,994	15.5	%	82.2	%
2024		7	387	3.7	%	87.9	%	3,775	2.3	%	84.5	%
Thereafter		13	1,252	12.1	%	100.0	%	25,937	15.5	%	100.0	%
Total		397	10,382	100.0	%			167,314	100.0	%
Weighted average remaining
lease term (in years)			4.9					5.4

(1)	Square footage is pursuant to existing leases as of September 30, 2015 and includes (i) space being fitted out for occupancy and (ii) space which is leased but is not occupied or is being offered for sublease.
(2)	Refer to the Definitions section of this document.
(3)	2015 includes $1.8 million of self storage annualized rental revenue.

24

PROPERTY DETAIL ⁽¹⁾ 

As of September 30, 2015

(sorted by geographic location, dollars in thousands)

Office Properties

	Property	City and State		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
1	Arizona Center (4)	Phoenix	AZ	4	CBD	1,070,724	94.1	%	$	14,776	$	98,996	$	90,083	2011	1992
2	Parkshore Plaza	Folsom	CA	4	SUB	269,281	47.3	%	2,176		48,681		43,958		2011	1999
3	Sky Park Centre	San Diego	CA	2	SUB	63,485	100.0	%	1,373		9,794		6,556		2002	1986
4	9110 East Nichols Avenue	Centennial	CO	1	SUB	143,958	99.8	%	2,564		20,332		14,070		2001	1984
5	1225 Seventeenth Street	Denver	CO	1	CBD	672,465	98.3	%	22,370		148,132		127,602		2009	1,982
6	5073, 5075, & 5085 S. Syracuse Street	Denver	CO	1	SUB	248,493	100.0	%	7,164		63,610		55,635		2010	2,007
7	1601 Dry Creek Drive	Longmont	CO	1	SUB	552,865	95.1	%	7,318		32,748		23,774		2004	1982
8	1250 H Street, NW	Washington	DC	1	CBD	187,684	93.0	%	6,596		67,827		42,318		1998	1992
9	Georgetown-Green and Harris Buildings	Washington	DC	2	CBD	240,475	100.0	%	6,226		60,023		54,549		2009	2006
10	802 Delaware Avenue	Wilmington	DE	1	CBD	240,780	100.0	%	4,127		43,467		20,658		1998	1986
11	6600 North Military Trail	Boca Raton	FL	3	SUB	639,830	100.0	%	16,171		145,760		130,348		2011	2008
12	Executive Park	Atlanta	GA	9	SUB	427,443	70.7	%	4,959		43,698		29,072		2004; 2007	1972
13	1200 Lakeside Drive	Bannockburn	IL	1	SUB	260,084	100.0	%	4,574		62,226		49,397		2005	1999
14	600 West Chicago Avenue	Chicago	IL	2	CBD	1,511,849	99.7	%	46,647		356,596		323,024		2011	2001
15	8750 Bryn Mawr Avenue	Chicago	IL	2	SUB	631,518	90.0	%	15,439		90,998		79,868		2010	2005
16	101-115 W. Washington Street	Indianapolis	IN	1	CBD	634,058	93.9	%	12,159		90,320		67,104		2005	1977
17	111 Monument Circle	Indianapolis	IN	2	CBD	1,063,885	83.4	%	22,287		175,836		163,842		2012	1990
18	109 Brookline Avenue	Boston	MA	1	CBD	285,556	99.8	%	9,887		45,811		27,473		1995	1915
19	111 Market Place	Baltimore	MD	1	CBD	540,854	99.4	%	12,115		76,988		53,099		2003	1990
20	25 S. Charles Street	Baltimore	MD	1	CBD	343,815	94.4	%	7,254		38,504		26,355		2004	1972
21	820 W. Diamond	Gaithersburg	MD	1	SUB	134,933	88.7	%	2,839		33,660		22,496		1997	1995
22	Danac Stiles Business Park	Rockville	MD	3	SUB	276,637	85.4	%	6,934		65,565		47,061		2004	2002
23	East Eisenhower Parkway	Ann Arbor	MI	2	SUB	410,464	92.3	%	10,165		55,163		48,657		2010	2006
24	4700 Belleview Avenue	Kansas City	MO	1	SUB	80,615	79.0	%	1,205		7,006		6,039		2008	1986
25	111 River Street	Hoboken	NJ	1	CBD	566,215	99.7	%	23,180		135,443		114,675		2009	2002
26	North Point Office Complex	Cleveland	OH	2	CBD	873,335	83.8	%	15,770		122,938		101,457		2008	1988
27	Cherrington Corporate Center	Moon Township	PA	7	SUB	454,890			7,653		73,972		53,249		1998; 1999	1997
28	1500 Market Street	Philadelphia	PA	1	CBD	1,773,967	82.1	%	35,866		286,276		209,891		2002	1974
29	1525 Locust Street	Philadelphia	PA	1	CBD	98,009	95.4	%	2,289		11,211		7,189		1999	1987
30	1600 Market Street	Philadelphia	PA	1	CBD	825,968	86.0	%	18,297		132,307		77,788		1998	1983
31	1735 Market Street	Philadelphia	PA	1	CBD	1,290,678	88.1	%	36,717		298,703		179,645		1998	1990
32	Foster Plaza	Pittsburgh	PA	8	SUB	727,365	84.8	%	12,247		75,003		55,999		2005	1993
33	1601 Rio Grande Street	Austin	TX	1	CBD	56,219	100.0	%	1,382		8,318		5,258		1999	1985
34	206 East 9th Street	Austin	TX	1	CBD	170,052	100.0	%	6,073		48,471		45,055		2012	1984
35	4515 Seton Center Parkway	Austin	TX	1	SUB	117,265	95.1	%	2,912		22,876		13,966		1999	1997
36	4516 Seton Center Parkway	Austin	TX	1	SUB	120,559	94.8	%	2,890		23,301		13,863		1999	1985
37	7800 Shoal Creek Boulevard	Austin	TX	4	SUB	151,917	99.1	%	3,338		21,231		13,777		1999	1974
38	812 San Antonio Street	Austin	TX	1	CBD	59,321	100.0	%	1,705		8,708		5,681		1999	1987

25

PROPERTY DETAIL ⁽¹⁾ 

As of September 30, 2015

(sorted by geographic location, dollars in thousands)

	Property	City and State		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
39	8701 N Mopac	Austin	TX	1	SUB	121,901	69.0	%	1,759		18,295		11,677		1999	1982
40	Bridgepoint Parkway	Austin	TX	5	SUB	440,007	95.2	%	11,316		88,233		51,290		1997	1995
41	Lakewood on the Park	Austin	TX	2	SUB	180,558	89.8	%	$	4,141	$	37,177	$	22,803	1998	1998
42	Research Park	Austin	TX	4	SUB	1,110,007	98.0	%	11,484		90,636		61,754		1998	1976
43	3330 N Washington Boulevard	Arlington	VA	1	SUB	55,719	15.3	%	273		8,826		5,573		1998	1987
44	333 108th Avenue NE	Bellevue	WA	1	CBD	416,503	100.0	%	18,476		152,557		131,402		2009	2008
45	600 108th Avenue NE	Bellevue	WA	1	CBD	243,520	97.2	%	6,452		47,249		35,812		2004	2012
46	100 East Wisconsin Avenue	Milwaukee	WI	1	CBD	435,067	92.7	%	10,809		82,330		71,579		2010	1989
47	111 East Kilbourn Avenue	Milwaukee	WI	1	CBD	373,669	95.0	%	9,523		55,092		44,965		2008	1988
Subtotal Office Properties				96		21,594,462	90.9	%	$	491,877	$	3,730,894	$	2,887,386	2005	1989
Other Properties
	Property	City and State		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
48	4 South 84th Avenue	Tolleson	AZ	1	SUB	236,007	100.0	%	$	1,611	$	11,401	$	8,573	2003	1989
49	97 Newberry Road	East Windsor	CT	1	SUB	289,386	100.0	%	1,817		15,350		12,562		2006	1989
50	33 Stiles Lane	North Haven	CT	1	SUB	175,301	100.0	%	1,126		9,793		7,681		2006	2002
51	625 Crane Street	Aurora	IL	1	SUB	103,683	100.0	%	435		1,611		1,532		2007	1977
52	2250 Pilot Knob Road	Mendota Heights	MN	1	SUB	87,183	100.0	%	851		6,530		3,950		1998	1995
53	411 Farwell Avenue	South St. Paul	MN	1	SUB	422,727	100.0	%	1,906		16,357		12,963		2004	1970
54	6200 Glenn Carlson Drive	St. Cloud	MN	1	SUB	338,000	100.0	%	2,151		15,753		13,683		2009	2013
55	Raintree Industrial Park	Solon	OH	12	SUB	563,182	86.9	%	2,133		12,224		11,471		2004	1975
56	128 Crews Drive	Columbia	SC	1	SUB	185,600	100.0	%	636		3,747		3,284		2007	2011
57	111 Southchase Boulevard	Fountain Inn	SC	1	SUB	168,087	100.0	%	838		6,164		4,668		2007	1987
58	1043 Global Avenue	Graniteville	SC	1	SUB	450,000	100.0	%	1,484		16,875		13,462		2007	1998
Subtotal Industrial/Flex				22		3,019,156	97.6	%	$	14,988	$	115,805	$	93,829	2006	1990
59	785 Schilinger Road South	Mobile	AL	1	SUB	72,000	100.0	%	$	987	$	11,269	$	9,340	2007	1998
60	401 Vine Street	Delmont	PA	1	SUB	53,980	100.0	%	549		7,117		6,022		2007	1999
61	633 Frazier Drive	Franklin	TN	1	SUB	150,000	100.0	%	2,081		18,980		16,351		2007	1999
62	9840 Gateway Boulevard North	El Paso	TX	1	SUB	72,000	100.0	%	1,128		11,432		9,497		2007	1999
63	3003 South Expressway 281	Hidalgo	TX	1	SUB	150,000	100.0	%	1,922		17,004		13,908		2007	1999
64	1331 North Center Parkway	Kennewick	WA	1	SUB	53,980	100.0	%	944		9,187		7,727		2007	1999
Subtotal Movie Theaters				6		551,960	100.0	%	$	7,611	$	74,989	$	62,845	2007	1999
65	633 Ahua Street	Honolulu	HI	1	SUB	120,803	80.7	%	$	1,778	$	16,401	$	12,728	2003	2006
Subtotal Self Storage				1		120,803	80.7	%	$	1,778	$	16,401	$	12,728	2003	2006

26

PROPERTY DETAIL ⁽¹⁾ 

As of September 30, 2015

(sorted by geographic location, dollars in thousands)

	Property	City and State		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
66	Cabot Business Park Land	Mansfield	MA	—	SUB	—	0.0	%	$	—	$	1,033	$	1,033	2003	—
Subtotal Land				—		—	0.0	%	$	—	$	1,033	$	1,033	2003	—
67	Leased Land	Gonzalez	CA	7	SUB	—	0.0	%	$	2,918	$	31,975	$	29,259	2010	—
Subtotal Vineyards				7		—	0.0	%	$	2,918	$	31,975	$	29,259	2010	—
Subtotal				132		25,286,381	91.9	%	$	519,172	$	3,971,097	$	3,087,080	2005	1989

Properties Held for Sale as of September 30, 2015 (5)
	Property	City and State		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
68	One South Church Avenue	Tucson	AZ	1	CBD	240,811	65.4	%	$	3,811	$	33,802	$	23,903	2002	1986
69	9040 Roswell Road	Atlanta	GA	1	SUB	178,941	78.9	%	2,691		21,708		15,832		2004	1985
70	The Exchange	Atlanta	GA	2	SUB	187,632	78.1	%	2,527		16,715		11,916		2004; 2005	1995
71	3920 Arkwright Road	Macon	GA	1	SUB	196,156	77.5	%	2,685		19,154		13,837		2006	1988
72	1775 West Oak Commons Court	Marietta	GA	1	SUB	79,854	100	%	1,368		7,719		6,030		2007	1998
73	One Park Square	Albuquerque	NM	6	CBD	259,737	90.9	%	4,509		30,279		21,107		2002	1986
74	775 Ridge Lake Boulevard	Memphis	TN	1	CBD	120,678	78.1	%	2,467		20,823		15,398		2004	2000
Total Held for Sale				13		1,263,809	79.7	%	$	20,058	$	150,200	$	108,023	2004	1989
Total Portfolio				145		26,550,190	91.3	%	$	539,230	$	4,121,297	$	3,195,103	2005	1989

(1	)	Excludes properties disposed prior to October 1, 2015.
(2	)	Refer to the Definitions section of this document.
(3	)	Weighted based on square feet.
(4	)	Contractual cash payments (including management fees) from one tenant at Arizona Center for the three and nine months ended September 30, 2015 and 2014 were $2,032 and $6,096, respectively. These payments will decrease to approximately $515 per year beginning in 2016. The terms of this tenant's lease require us to classify the lease as a direct financing (or capital) lease. As such, the revenue recognized on a GAAP basis within our condensed consolidated statements of operations was $104 and $194 for the three months ended September 30, 2015 and 2014, and $379 and $645 for the nine months ended September 30, 2015 and 2014, respectively. Annualized rental revenue excludes the cash payments received from this tenant. This direct financing lease has an expiration date in 2045.
(5	)	All properties held for sale as of September 30, 2015 have been sold during the fourth quarter.

27

DISPOSED PROPERTY DETAIL ⁽¹⁾ 

(dollars in thousands)

	Property	City and State/Country		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
1	1921 E Alton Ave.	Santa Ana	CA	1	SUB	67,846	84.7	%	$	1,691	$	11,522	$	8,567	2003	2000
2	11350 N Meridian St.	Carmel	IN	1	SUB	72,264	78.4	%	751		2,721		2,537		2006	1982
_	333 Laurel Oak Dr. (4)	Voorhees	NJ	1	SUB	27,164	—	%	0		1,496		1,441		1998	1989
	Subtotal Q1 2015 Sales			3		167,274	68.2	%	$	2,442	$	15,739	$	12,545	2004	1990
3	7450 Campus Drive	Colorado Springs	CO	1	SUB	77,411	88.1	%	$	1,771	$	9,481	$	8,462	2010	1996
4	129 Worthington Ridge Road	Berlin	CT	1	SUB	227,500	100.0	%	862		5,252		4,473		2006	1968
5	599 Research Parkway	Meriden	CT	1	SUB	48,249	100.0	%	823		8,092		6,090		2003	1982
6	181 Marsh Hill Road	Orange	CT	1	SUB	162,036	100.0	%	1,211		10,794		9,080		2006	2006
7	101 Barnes Road	Wallingford	CT	1	SUB	45,755	90.5	%	869		1,423		1,371		1998	1988
8	15 Sterling Drive	Wallingford	CT	1	SUB	173,015	60.5	%	1,133		4,808		4,653		2006	1978
9	35 Thorpe Avenue	Wallingford	CT	1	SUB	79,862	87.2	%	1,279		6,464		6,212		1998	1986
10	50 Barnes Industrial Road North	Wallingford	CT	1	SUB	154,255	100.0	%	1,421		11,404		8,866		2006	1976
11	5-9 Barnes Industrial Road	Wallingford	CT	1	SUB	38,006	99.3	%	437		3,510		2,945		2006	1980
12	860 North Main Street	Wallingford	CT	1	SUB	31,165	99.5	%	477		3,850		2,898		2006	1982
13	One Barnes Industrial Road South	Wallingford	CT	1	SUB	30,170	100.0	%	382		2,366		1,890		2006	1977
14	Village Lane	Wallingford	CT	2	SUB	58,185	100.0	%	682		4,199		4,051		2006	1977
15	100 Northfield Drive	Windsor	CT	1	SUB	116,986	99.6	%	1,822		13,272		8,964		2003	1988
16	905 Meridian Lake Drive	Aurora	IL	1	SUB	74,652	93.1	%	1,886		12,298		9,636		2007	1999
17	1717 Deerfield Road	Deerfield	IL	1	SUB	141,186	69.5	%	2,450		8,499		8,214		2005	1986
18	1955 West Field Court	Lake Forest	IL	1	SUB	59,130	100.0	%	1,278		11,925		8,782		2005	2001
19	5015 S. Water Circle	Wichita	KS	1	SUB	113,524	100.0	%	581		5,874		5,103		2007	1995
20	Adams Place	Braintree/Quincy	MA	2	SUB	230,259	72.7	%	4,034		19,775		18,628		1998	2006
21	Cabot Business Park	Mansfield	MA	2	SUB	252,755	50.0	%	2,096		14,829		14,088		2003	1980
22	2300 Crown Colony Drive	Quincy	MA	1	SUB	45,974	95.5	%	1,037		7,144		4,646		2004	1999
23	Myles Standish Industrial Park	Taunton	MA	2	SUB	74,800	100.0	%	1,016		7,664		7,479		2007	1988
24	340 Thompson Road	Webster	MA	1	SUB	25,000	100.0	%	226		3,188		1,900		1997	1,995
25	100 South Charles Street	Baltimore	MD	1	CBD	159,616	86.0	%	2,784		16,362		9,285		1997	1988
26	6710 Oxon Hill	Oxon Hill	MD	1	SUB	118,336	60.3	%	1,803		17,538		10,380		1997	1992
27	8800 Queen Avenue South	Bloomington	MN	1	SUB	280,822	92.7	%	3,959		13,639		13,155		1998	1957
28	9800 Shelard Parkway	Plymouth	MN	1	SUB	46,765	80.3	%	858		5,289		2,865		1999	1987
29	Rosedale Corporate Plaza	Roseville	MN	3	SUB	149,116	100.0	%	2,889		27,548		18,462		1999	1987
30	1000 Shelard Parkway	St. Louis Park	MN	1	SUB	62,499	64.7	%	907		7,917		4,839		1999	1986
31	525 Park Street	St. Paul	MN	1	CBD	75,636	89.1	%	1,249		8,456		5,280		1999	1987
32	1900 Meyer Drury Drive	Arnold	MO	1	SUB	65,225	100.0	%	1,014		8,610		6,518		2004	1999
33	131-165 West Ninth Street	N. Kansas City	MO	1	SUB	75,517	100.0	%	280		1,753		1,544		2008	1970
34	7-9 Vreeland Road	Florham Park	NJ	1	SUB	155,891	66.0	%	1,782		7,215		6,635		1998	1979
35	5 Paragon Drive	Montvale	NJ	1	SUB	119,089	100.0	%	3,721		14,426		12,993		2011	2008
36	1000 Voorhees Drive 400 Laurel Oak Drive	Voorhees	NJ	2	SUB	125,415	55.0	%	1,451		6,165		5,788		1998	1989
37	1601 Veterans Highway	Islandia	NY	1	SUB	63,608	92.1	%	1,470		3,535		3,373		1999	1987
38	Two Corporate Center Drive	Melville	NY	1	SUB	291,230	49.3	%	3,812		11,831		10,798		1999	1985
39	11311 Cornell Park Drive	Blue Ash	OH	1	SUB	93,413	69.3	%	1,064		6,617		6,332		2006	1982
40	5300 Kings Island Drive	Mason	OH	1	SUB	159,421	68.1	%	367		11,072		10,264		1998	1994

28

DISPOSED PROPERTY DETAIL ⁽¹⁾ 

(dollars in thousands)

	Property	City and State/Country		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
41	3 Crown Point Court	Sharonville	OH	1	SUB	73,987	100.0	%	1,248		10,750		8,762		2005	1999
42	515 Pennsylvania Avenue	Fort Washington	PA	1	SUB	82,000	77.0	%	1,443		10,710		6,236		1997	1998
43	443 Gulph Road	King of Prussia	PA	1	SUB	21,000	100.0	%	462		4,673		3,115		1997	1966
44	4350 Northern Pike	Monroeville	PA	1	SUB	503,885	46.9	%	4,042		40,818		25,466		2004	2012
45	Thunderbolt Place	Chantilly	VA	2	SUB	100,505	87.9	%	1,433		14,562		9,464		1999	1988
46	6160 Kempsville Circle	Norfolk	VA	1	SUB	129,565	44.8	%	895		15,288		11,107		2002	1987
47	448 Viking Drive	Virginia Beach	VA	1	SUB	75,374	75.7	%	1,017		7,576		5,845		2004	1991
	Subtotal Small Office & Industrial Assets Portolio			53		5,287,790	77.5	%	$	67,723	$	448,461	$	346,937	2002	1989
48	2501 20th Place South	Birmingham	AL	1	CBD	125,722	98.6	%	$	3,115	$	24,116	$	19,815	2006	2001
49	420 20th Street North	Birmingham	AL	1	CBD	514,893	75.6	%	9,600		55,760		50,652		2011	2006
50	Inverness Center	Birmingham	AL	4	SUB	475,882	87.0	%	8,471		51,756		46,140		2010	1981
51	701 Poydras Street	New Orleans	LA	1	CBD	1,256,971	95.6	%	19,250		97,897		89,971		2011	2010
52	300 North Greene Street	Greensboro	NC	1	CBD	324,305	86.3	%	6,684		40,799		36,175		2010	1989
53	1320 Main Street	Columbia	SC	1	CBD	334,075	91.8	%	8,679		55,168		51,814		2012	2004
	Subtotal AL, LA, NC, SC Office Portfolio			9		3,031,848	89.6	%	$	55,799	$	325,496	$	294,567	2011	2002
54	225 Water Street (5)	Jacksonville	FL	1	CBD	318,997	44.7	%	$	3,144	$	20,012	$	19,357	2008	1985
55	Sorrento Valley Business Park	San Diego	CA	4	SUB	105,003	100.0	%	$	2,193	$	17,530	$	10,405	1996	1984
56	12655 Olive Boulevard	St. Louis	MO	1	SUB	98,588	98.6	%	$	2,091	$	13,134	$	11,010	2006	1988
57	1285 Fern Ridge Parkway	St. Louis	MO	1	SUB	66,510	46.5	%	640		6,039		3,490		2003	1998
	Subtotal St. Louis Portfolio			2		165,098	77.6	%	$	2,731	$	19,173	$	14,500	2005	1992
58	310-320 Pitt Street	Sydney	Aust.	1	CBD	313,865	100.0	%	$	14,082	$	129,100	$	120,156	2010	1989
59	7 Modal Crescent	Canning Vale	Aust.	1	SUB	164,160	100.0	%	1,293		12,313		11,861		2010	2001
60	71-93 Whiteside Road	Clayton	Aust.	1	SUB	303,488	100.0	%	1,782		14,213		13,475		2010	1965
61	9-13 Titanium Court	Crestmead	Aust.	1	SUB	69,664	46.8	%	101		4,699		4,422		2010	2005
62	16 Rodborough Road	Frenchs Forest	Aust.	1	SUB	90,525	100.0	%	1,634		13,468		12,620		2010	1987
63	22 Rodborough Road	Frenchs Forest	Aust.	1	SUB	43,427	100.0	%	217		6,356		5,888		2010	1997
64	127-161 Cherry Lane	Laverton North	Aust.	1	SUB	278,570	100.0	%	1,009		7,680		7,222		2010	1965
65	310-314 Invermay Road	Mowbray	Aust.	1	SUB	47,480	100.0	%	373		44		—		2010	1970
66	253-293 George Town Road	Rocherlea	Aust.	1	SUB	143,914	100.0	%	1,047		109		—		2010	1970
67	44-46 Mandarin Street	Villawood	Aust.	1	SUB	226,718	82.7	%	1,011		12,542		11,730		2010	1980
68	19 Leadership Way	Wangara	Aust.	1	SUB	76,714	100.0	%	840		5,531		5,287		2010	2000
	Subtotal Australia Office and Industrial Portfolio			11		1,758,525	95.7	%	$	23,389	$	206,055	$	192,661	2010	1980
69	Illinois Center	Chicago	IL	2	CBD	2,090,162	71.6	%	$	45,965	$	334,132	$	306,863	2011; 2012	2001
70	16th and Race Street	Philadelphia	PA	1	CBD	608,625	—	%	$	—	$	36,306	$	34,391	1997	1980
71	Widewaters Parkway	Dewitt	NY	8	SUB	514,241	73.5	%	$	6,463	$	17,687	$	16,340	1999; 2006	1988
72	5062 Brittonfield Parkway	East Syracuse	NY	1	SUB	40,162	100.0	%	1,050		3,399		3,275		2006	1995
73	Woodcliff Drive	Fairport	NY	6	SUB	516,760	80.9	%	8,571		44,409		39,853		2006	1995
74	Interstate Place	North Syracuse	NY	2	SUB	61,399	81.0	%	843		2,673		2,542		2006	1973
75	1000 Pittsford-Victor Road	Pittsford	NY	1	SUB	73,358	54.5	%	585		2,923		2,770		2006	1986

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DISPOSED PROPERTY DETAIL ⁽¹⁾ 

(dollars in thousands)

	Property	City and State/Country		No. of Bldgs.	CBD/SUB	Sq. Feet	% Leased		Annualized Rental Revenue (2)		Undepreciated Book Value (2)		Net Book Value (2)		Year Acquired	Weighted Average Year Built or Substantially Renovated (3)
76	1200 Pittsford - Victor Road	Pittsford	NY	1	SUB	18,900	100.0	%	$	418	$	1,681	$	1,618	2004	2003
77	Corporate Crossing	Pittsford	NY	5	SUB	216,126	81.8	%	3,213		13,128		12,559		2004	2000
78	Canal View Boulevard	Rochester	NY	3	SUB	118,375	91.1	%	1,586		10,741		8,746		2006	2000
79	14 Classic Street	Sherburne	NY	1	SUB	37,084	100.0	%	204		1,289		998		2006	2000
80	110 W Fayette Street	Syracuse	NY	1	CBD	304,906	80.5	%	3,765		14,373		13,379		1999	2012
81	251 Salina Meadows Parkway	Syracuse	NY	1	SUB	65,617	87.5	%	929		2,731		2,522		1999	1990
	Subtotal Upstate New York Portfolio			30		1,966,928	79.8	%	$	27,627	$	115,034	$	104,602	2004	1996
82	185 Asylum Street	Hartford	CT	1	CBD	868,395	98.7	%	$	20,971	$	78,046	$	72,971	2012	2010
Total Disposed Year-to-Date (6)				117		16,368,645	78.9	%	$	251,984	$	1,615,984	$	1,409,799	2006	1994

(1	)	Statistics for disposed properties are presented as of or for the quarter-ended preceding each sale.
(2	)	Refer to the Definitions section of this document.
(3	)	Weighted based on square feet.
(4	)	We sold one building in a property containing multiple buildings.
(5	)	On May 22, 2015, title to 225 Water Street was transferred to the lender pursuant to the consensual foreclosure in full satisfaction of the mortgage debt. The transaction resulted in a gain on extinguishment of debt of $17.3 million for the nine months ended September 30, 2015.
(6	)	Excludes a land parcel located in Birmingham, Alabama that was sold during the second quarter of 2015. Refer to the Acquisitions & DIspositions section of this document.

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COMMON & POTENTIAL COMMON SHARES

(share amounts in thousands)

	For the Three Months Ended			For the Nine Months Ended
	September 30,			September 30,
Weighted Average Share Calculation	2015	2014		2015	2014
Weighted average EQC common shares outstanding	127,963	128,880		128,583	123,736
Weighted average restricted shares outstanding	776	—		803	—
Weighted average common shares outstanding - basic - GAAP EPS, FFO, Normalized FFO	128,739	128,880		129,386	123,736
Weighted average number of dilutive RSUs(1)	1,139	—		707	—
Weighted average number of dilutive Series D preferred shares convertible to common shares (2)	—	2,363		—	—
Weighted average common shares outstanding - diluted - GAAP EPS & FFO	129,878	131,243		130,093	123,736
Weighted average number of anti-dilutive Series D preferred shares convertible to common shares (2)	—	(2,363	)	—	—
Weighted average common shares outstanding - diluted - Normalized FFO	129,878	128,880		130,093	123,736

Rollforward of Share Count to September 30, 2015	Series D Preferred Shares(2)	Series E Preferred Shares(3)	EQC Common Shares(4)
Outstanding on December 31, 2014	4,915	11,000	129,607
Issuance of restricted shares, net of forfeitures	—	—	153
Repurchase of common shares	—	—	(3,410	)
Outstanding on September 30, 2015	4,915	11,000	126,350
Series D preferred shares convertible into common shares on September 30, 2015(2)			2,363
Common shares issuable from RSUs as measured on September 30, 2015(1)			1,139
Potential common shares as measured on September 30, 2015			129,852

(1	)	As of September 30, 2015, we had granted restricted share units ("RSU"s) to certain employees, officers, and the chairman of the Board of Trustees. The RSUs contain both service and market-based vesting components. None of the RSUs have vested. If the market-based vesting component was measured as of September 30, 2015, 1,139 common shares would be issued to the RSU holders. Using a weighted average basis, 1,139 and 707 common shares are reflected in diluted GAAP EPS, FFO per common share and Normalized FFO per common share for the three and nine months ended September 30, 2015, respectively. The RSUs are excluded from basic GAAP EPS, FFO per common share and Normalized FFO per common share for all periods presented because the market-based vesting measurement date has not yet occurred.
(2	)	As of September 30, 2015, we had 4,915 series D preferred shares outstanding that were convertible into 2,363 of our common shares. The series D preferred shares are anti-dilutive for GAAP EPS, FFO per common share and Normalized FFO per common share for all periods presented, except the three months ended September 30, 2014, when they were dilutive for EPS and FFO per common share.
(3	)	The Series E preferred shares are convertible to EQC common shares only upon limited circumstances surrounding a change in control of EQC. As such, the effect of the potential conversion of the Series E preferred shares on EQC common shares is not contemplated in this schedule.
(4	)	EQC common shares include unvested restricted shares.

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SUMMARY OF EQUITY INVESTMENTS

(in thousands)

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Equity in earnings of investees
Select Income REIT (1)	$	—	$	1,072	$	—	$	24,516
Affiliates Insurance Company (2)	—		—		—		(56		)
Total	$	—	$	1,072	$	—	$	24,460
FFO From Investees
Select Income REIT (1)	$	—	$	1,456	$	—	$	33,063
Affiliates Insurance Company (2)	—		—		—		(56		)
Total	$	—	$	1,456	$	—	$	33,007

(1	)	Beginning on July 2, 2013, EQC no longer consolidated its investment in SIR, but instead accounted for its investment in SIR under the equity method. In addition, in May and June 2014, SIR issued 10,000,000 of its common shares in a public offering, which reduced EQC's ownership interest in SIR to 36.7%. On July 9, 2014, EQC sold its entire stake of 22,000,000 common shares of SIR.
(2	)	Affiliates Insurance Company, or AIC, is a private company that, until May 9, 2014, was owned equally by Reit Management & Research LLC, or RMR, and each of the public companies to which RMR provides management services, including EQC and SIR. On May 9, 2014, as a result of the change in control of EQC and in accordance with the terms of a shareholders agreement among EQC and the other AIC shareholders, the other AIC shareholders purchased pro rata from EQC all 20,000 shares of AIC that EQC then owned for aggregate proceeds of $5,776.

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DEFINITIONS

Annualized Rental Revenue

Annualized rental revenue is annualized contractual rents from our tenants pursuant to leases which have commenced as of September 30, 2015, plus estimated recurring expense reimbursements; includes triple net lease rents and excludes lease value amortization, straight line rent adjustments, free rent periods and parking revenue. The annualized rental revenue of disposed properties is presented for the quarter-ended preceding each disposition.

Building Improvements

Building improvements are expenditures to replace obsolete building components or extend the useful life of existing assets.

Consolidated Income Available for Debt Service

Consolidated income available for debt service is earnings from operations excluding interest expense, depreciation and amortization, taxes, and certain items that we view as nonrecurring or impacting comparability from period to period, determined together with debt service on a pro forma basis for the four consecutive fiscal quarters most recently ended.

Development, Redevelopment and Other Activities

Development, redevelopment and other activities include: 1) major capital expenditures that are identified at the time of a property acquisition and incurred within a short time period after acquiring the property, and 2) major capital expenditure projects that reposition a property or result in new sources of revenue.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

We calculate EBITDA as net income (loss) excluding 1) interest expense, 2) income tax expense, 3) depreciation and amortization, and 4) our portion of these items related to equity investees. Our calculation of Adjusted EBITDA differs from our calculation of EBITDA because we exclude certain items that we view as nonrecurring or impacting comparability from period to period.

We consider EBITDA and Adjusted EBITDA to be appropriate measures of our operating performance, along with net income, net income attributable to EQC common shareholders, operating income and cash flow from operating activities. We believe that EBITDA and Adjusted EBITDA provide useful information to investors because by excluding the effects of certain historical amounts, such as interest, depreciation and amortization expense, EBITDA and Adjusted EBITDA may facilitate a comparison of current operating performance with our past operating performance. EBITDA and Adjusted EBITDA do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income, net income attributable to EQC common shareholders, operating income or cash flow from operating activities, determined in accordance with GAAP, or as indicators of our financial performance or liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of our needs. These measures should be considered in conjunction with net income, net income attributable to EQC common shareholders, operating income and cash flow from operating activities as presented in our condensed consolidated statements of operations, condensed consolidated statements of comprehensive income (loss) and condensed consolidated statements of cash flows. Other REITs and real estate companies may calculate EBITDA and Adjusted EBITDA differently than we do.

Enterprise Value

Enterprise value is net debt plus the market value of our preferred shares plus the market value of our common shares.

Funds from Operations (FFO) and Normalized FFO

We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT). NAREIT defines FFO as net income (loss), calculated in accordance with GAAP, excluding real estate depreciation and amortization, gains (or losses) from sales of depreciable property, impairment of depreciable real estate, and our portion of these items related to equity investees and noncontrolling interests.  Our calculation of Normalized FFO differs from NAREIT’s definition of FFO because we exclude certain items that we view as nonrecurring or impacting comparability from period to period.  We consider FFO and Normalized FFO to be appropriate measures of operating performance for a REIT, along with net income, net income attributable to Equity Commonwealth common shareholders, operating income and cash flow from operating activities.

33

DEFINITIONS

We believe that FFO and Normalized FFO provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense, FFO and Normalized FFO may facilitate a comparison of our operating performance between periods and with other REITs.  FFO and Normalized FFO are among the factors considered by our Board of Trustees when determining the amount of distributions to our shareholders.  FFO and Normalized FFO do not represent cash generated by operating activities in accordance with GAAP and should not be considered as alternatives to net income, net income attributable to Equity Commonwealth common shareholders, operating income or cash flow from operating activities, determined in accordance with GAAP, or as indicators of our financial performance or liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of our needs.  These measures should be considered in conjunction with net income, net income attributable to Equity Commonwealth common shareholders, operating income and cash flow from operating activities as presented in our condensed consolidated statements of operations, condensed consolidated statements of comprehensive income and condensed consolidated statements of cash flows.  Other REITs and real estate companies may calculate FFO and Normalized FFO differently than we do.

Leasing Costs

These are leasing costs such as brokerage commissions and related legal expenses.

Net Debt

Net debt is total debt minus cash and cash equivalents.

Net Operating Income (NOI), Same Property NOI, Cash Basis NOI, and Same Property Cash Basis NOI

NOI is total revenues minus operating expenses. Cash Basis NOI is NOI excluding the effects of straight line rent adjustments, lease value amortization, and lease termination fees. The quarter-to-date same property versions of these measures include the results of properties continuously owned from July 1, 2014 through September 30, 2015. The year-to-date same property versions of these measures include the results of properties continuously owned from January 1, 2014 through September 30, 2015. Discontinued operations and properties classified as held for sale are excluded from same property results.

We consider these measures to be appropriate supplemental measures to net income because they may help both investors and management to understand the operations of our properties. We use these measures internally to evaluate individual, regional and combined property level performance, and we believe that they provide useful information to investors regarding our results of operations because they reflect only those income and expense items that are incurred at the property level and may facilitate comparisons of our operating performance between periods and with other REITs. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered as an alternative to net income, net income attributable to Equity Commonwealth common shareholders, operating income or cash flow from operating activities, determined in accordance with GAAP, or as indicators of our financial performance or liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of our needs. These measures should be considered in conjunction with net income, net income attributable to Equity Commonwealth common shareholders, operating income and cash flow from operating activities as presented in our condensed consolidated statements of operations, condensed consolidated statements of comprehensive income and condensed consolidated statements of cash flows. Other REITs and real estate companies may calculate these measures differently than we do.

Net Book Value

Net book value represents the carrying value of real estate properties after depreciation and amortization, purchase price allocations, impairment write-downs, and currency adjustments, if any.

NOI Margin

NOI Margin is NOI (or the same property or cash basis derivations of NOI defined above) divided by the total revenues used to calculate NOI (or its derivation).

Percentage Leased

Percentage leased includes: 1) space being fitted out for occupancy pursuant to existing leases and 2) space which is leased but not occupied or is being offered for sublease by tenants.

34

DEFINITIONS

Tenant Improvements

Tenant improvements are capital expenditures to improve tenant spaces.

Total Debt

Total debt is the aggregate balance of the following line items on our condensed consolidated balance sheets: revolving credit facility, senior unsecured debt, net, and mortgage notes payable, net.

Undepreciated Book Value

Undepreciated book value represents the carrying value of real estate properties after purchase price allocations, impairment write-downs, and currency adjustments, if any.

35