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| Strategic Considerations: Improve Balance Sheet 17 1) Reflects the following events as disclosed in EQC’s 2Q 2014 10-Q: 1) sale of entire stake of 22,000,000 common shares of SIR for $704.8 mm, 2) prepayment of the $235.0 mm outstanding balance on the revolving credit facility and 3) prepayment at par of $265.0 mm non-recourse mortgage loan on two buildings in Chicago, IL. As of Activity since As Adjusted1 (in 000's) 6/30/2014 6/30/2014 1 6/30/2014 ASSETS Net Real Estate 4,938,862 $ - $ 4,938,862 $ Cash and Cash Equivalents 428,373 204,880 633,253 Restricted Cash 22,829 - 22,829 Equity Investments (SIR) 531,862 (531,862) - Other 671,434 - 671,434 TOTAL ASSETS 6,593,360 $ (326,982) $ 6,266,378 $ LIABILITIES Revolving Credit Facility 235,000 $ (235,000) $ - $ Unsecured Debt, net 1,356,373 - 1,356,373 Term Loan 500,000 - 500,000 Mortgage Notes Payable, net 895,231 (265,000) 630,231 Total Debt 2,986,604 (500,000) 2,486,604 Other 235,868 - 235,868 Total Liabilities 3,222,472 $ (500,000) $ 2,722,472 $ SHAREHOLDERS' EQUITY 3,370,888 $ 173,018 $ 3,543,906 $ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 6,593,360 $ (326,982) $ 6,266,378 $ Focus on improving credit rating and increasing flexibility through de-levering . Sold EQC’s entire stake in Select Income REIT (SIR) for $704.8 mm . Prepaid at par $265 mm non-recourse mortgage loan . Paid down $235 mm balance on revolving credit facility . Continue to evaluate paying off secured mortgages and, in some instances, weighing the economics of paying defeasance costs . Review existing unsecured bond tranches for opportunities to pay down or refinance where it makes sense . Continue to have proactive discussions with rating agencies |