Equity Commonwealth (EQC, Financial) declined modestly during the year as its attempted $3.4 billion acquisition ofindustrial REIT, Monmouth, was rebuffed (Monmouth was acquired later for $4 billion by Industrial Logistics Properties Trust). Equity Commonwealth, headed by Sam Zell, is a REIT that has sold off substantially all its properties over the last eight years and now boasts a balance sheet with $3 billion in cash and around $120 million in debt.8 Zell has shown himself to be very patient with deploying this capital, and we believe this investment will require a lot of patience. Given his track record, we are confident he will make a shrewd acquisition when the time is right.
From Steven Scruggs (Trades, Portfolio)' FPA Queens Road Small Cap Value Fund fourth-quarter 2021 commentary.
