DEA Easterly Government Properties Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

February 27, 2024

Easterly Government Properties, Inc.

(Exact name of Registrant as Specified in Its Charter)

Maryland	001-36834	47-2047728
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
2001 K Street NW, Suite 775 North, Washington, D.C.		20006
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (202) 595-9500

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	DEA	New York Stock Exchange

 

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition.

On February 27, 2024, we issued a press release announcing our results of operations for the fourth quarter and year ended December 31, 2023. A copy of this press release as well as a copy of our supplemental information package are available on our website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. The information in this Item 2.02 as well as the attached Exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

We will host a webcast and conference call at 11:00 a.m. Eastern Time on February 27, 2024, to review our fourth quarter and year ended 2023 performance, discuss recent events and conduct a question-and-answer session. A live webcast will be available in the Investor Relations section of our website. Please note that the full text of the press release and supplemental information package are available through our website at ir.easterlyreit.com. The information contained on our website is not incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number	Description
99.1	Press Release dated February 27, 2024.
99.2	Easterly Government Properties, Inc. Supplemental Information Package for the quarter ended December 31, 2023.
104	Cover Page Interactive Data File (embedded within the inline XBRL document.)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

EASTERLY GOVERNMENT PROPERTIES, INC.
By:		/s/ Allison E. Marino
Name:		Allison E. Marino
Title:		Executive Vice President, Chief Financial Officer and Chief Accounting Officer

 

Date: February 27, 2024

 

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EASTERLY GOVERNMENT PROPERTIES

REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

 

WASHINGTON, D.C. – February 27, 2024 – Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust (“REIT”) focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, today announced its results of operations for the quarter and full year ended December 31, 2023.

Highlights for the Quarter Ended December 31, 2023:

 

Highlights for the Year Ended December 31, 2023:

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“Mission-critical buildings are essential to the work U.S. Government agencies do every single day,” said Darrell Crate, Easterly’s Chief Executive Officer. “Easterly has a definable edge in servicing our core tenants, and we remain focused on increasing our position in the public markets in 2024 and beyond.”

Portfolio Operations

As of December 31, 2023, the Company or the JV owned 90 operating properties in the United States encompassing approximately 8.8 million leased square feet, including 88 operating properties that were leased primarily to U.S. Government tenant agencies, one operating property leased primarily to tenant agencies of a high-credit state government, and one operating property that is entirely leased to a private tenant. In addition, the Company wholly owned one property under re-development that the Company expects will encompass approximately 0.2 million rentable square feet upon completion. The re-development project, located in Atlanta, Georgia, is currently under construction and, once complete, a 20-year lease with the U.S. General Services Administration (GSA) is expected to commence for the beneficial use of the U.S. Food and Drug Administration (FDA). As of December 31, 2023, the portfolio had a weighted average age of 14.6 years, based upon the date properties were built or renovated-to-suit, and had a weighted average remaining lease term of 10.5 years.

Acquisitions

On September 22, 2023, the Company acquired, through the JV, a U.S. Department of Veterans Affairs (VA) outpatient clinic located in Corpus Christi, Texas (“VA - Corpus Christi”). VA - Corpus Christi, a 69,276 leased square outpatient facility, was the ninth property to be acquired in the previously announced portfolio of 10 properties 100% leased to the VA that the Company is acquiring through the JV. VA - Corpus Christi provides enhanced services for the approximately 25,000 veterans in the surrounding region, including but not limited to an audiology clinic, a mental health clinic, pathology, radiology, and homeless care. VA - Corpus Christi is leased directly to the VA pursuant to a 20-year lease that does not expire until November 2042.

On October 3, 2023, the Company acquired a 95,273 leased square foot Class A workers’ compensation adjudication and training facility located in Anaheim, California. The facility is 100% leased by tenant agencies of the State of California (“CA - Anaheim”), including the Department of Industrial Relations and the Employment Development Department. This public facing facility contains court hearing rooms used for adjudicating workers' compensation claims, as well as training rooms for furthering employment opportunities. With a weighted average expiration date of January 2034, CA - Anaheim has been occupied by the State of California (S&P AA-) since 2009 and recently underwent a renewal exercise process post-pandemic whereby the tenants demonstrated their continued need for the facility by executing several leases with a weighted average lease term of 10.7 years.

On October 3, 2023, the Company acquired a 97,969 square foot facility primarily occupied by two branches of the DHS and located in Atlanta, Georgia (“DHS - Atlanta”). DHS - Atlanta is a 93% leased facility that recently underwent an extensive renovation in 2023 for the beneficial use of the Transportation Security Administration (TSA) and the U.S. Customs and Border Protection (CBP). The two tenants recently executed leases that provide for occupancy of up to 15 years through 2038.

On October 19, 2023, the Company acquired a 35,005 leased square foot United States District Courthouse in Newport News, Virginia (“JUD - Newport News”). The United States District Court, Eastern District of Virginia,

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Newport News Division Courthouse is a highly specialized facility that features 2008 build-to-suit LEED Certified construction, and a new 10-year firm term lease extension that does not expire until 2033. JUD - Newport News houses four District Judges, three Senior District Judges, and three Magistrate Judges, and is responsible for the cities of Newport News, Hampton, and Williamsburg, and the counties of York, James City, Gloucester, and Matthews.

Balance Sheet and Capital Markets Activity

As of December 31, 2023, the Company had total indebtedness of approximately $1.3 billion comprised of $79.0 million outstanding on its revolving credit facility, $100.0 million outstanding on its 2016 term loan facility, $200.0 million outstanding on its 2018 term loan facility, $700.0 million of senior unsecured notes, and $220.6 million of mortgage debt (excluding unamortized premiums and discounts and deferred financing fees). At December 31, 2023, the Company's outstanding debt had a weighted average maturity of 4.6 years and a weighted average interest rate of 4.2%. As of December 31, 2023, the Company's Net Debt to total enterprise value was 47.1% and its Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio was 7.0x.

Dividend

On February 21, 2024, the Board of Directors of Easterly approved a cash dividend for the fourth quarter of 2023 in the amount of $0.265 per common share. The dividend will be payable March 18, 2024 to shareholders of record on March 6, 2024.

 

Subsequent Events

Reflective of its superior tenancy and investment grade balance sheet, the Company announced it received an investment grade issuer credit rating from Kroll Bond Rating Agency, LLC (“KBRA”) of BBB with Stable Outlook.

On January 25, 2024, the Company announced it extended its $100 million unsecured term loan executed in 2016. Easterly secured market leading terms for the facility and extended the weighted average life of maturities at attractive spreads, underscoring the Company’s fortified balance sheet and strong capital partner relationships. The loan now matures on January 30, 2025.

Subsequent to the quarter ending December 31, 2023, the Company entered into forward sales transactions through the Company's December 2019 ATM Program for the sale of an additional 89,647 shares of the Company's common stock at a net weighted average initial forward sales price of $13.39 per share that have not yet been settled.

As of the date of this release, the Company expects to receive aggregate net proceeds of approximately $8.0 million from the sale of an aggregate of 589,647 shares of the Company's common stock that have not yet been settled under the Company's December 2019 ATM Program, assuming these forward sales transactions are physically settled in full using a net weighted average combined initial forward sales price of $13.50 per share.

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Guidance

This guidance is forward-looking and reflects management’s view of current and future market conditions. The Company’s actual results may differ materially from this guidance.

Outlook for the 12 Months Ending December 31, 2024

The Company is introducing its guidance for full-year 2024 Core FFO per share on a fully diluted basis at a range of $1.14 - $1.16.

 

		Low				High
Net income (loss) per share – fully diluted basis		$	0.22				0.24
Plus: Company’s share of real estate depreciation and amortization		$	0.91				0.91
FFO per share – fully diluted basis		$	1.13				1.15
Plus: Company’s share of depreciation of non-real estate assets		$	0.01				0.01
Core FFO per share – fully diluted basis		$	1.14				1.16

 

This guidance assumes (i) the closing of VA - Jacksonville through the JV at the Company’s pro rata share of approximately $41 million, and (ii) $100 - $110 million of gross development-related investment during 2024.

Non-GAAP Supplemental Financial Measures

This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this press release and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. A reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release following the consolidated financial statements. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the Securities and Exchange Commission from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.

Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current Nareit definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items, nonrecurring expenditures and the unconsolidated real estate venture’s allocated share of these adjustments. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.

Core Funds from Operations (Core FFO) adjusts FFO to present an alternative measure of the Company's operating performance, which, when applicable, excludes items which it believes are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), catastrophic event charges, depreciation of non-real estate assets, and the unconsolidated real estate venture's allocated share of these adjustments. In future periods, the Company may also exclude other items from Core FFO that it believes may help investors compare its results. The Company

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believes Core FFO more accurately reflects the ongoing operational and financial performance of the Company's core business.

EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.

Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO includes the Company’s share of FFO generated by unconsolidated affiliates. FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.

Net Debt and Adjusted Net Debt. Net Debt represents the Company's consolidated debt and its share of unconsolidated debt adjusted to exclude its share of unamortized premiums and discounts and deferred financing fees, less its share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 25 of the Company’s Q4 2023 Supplemental Information Package for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs.

Other Definitions

Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted

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stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP.

Conference Call Information

The Company will host a webcast and conference call at 11:00 am Eastern time on February 27, 2024 to review the fourth quarter and year ended 2023 performance, discuss recent events and conduct a question-and-answer session. A live webcast will be available in the Investor Relations section of the Company’s website. Shortly after the webcast, a replay of the webcast will be available on the Investor Relations section of the Company's website for up to twelve months. Please note that the full text of the press release and supplemental information package are also available through the Company’s website at ir.easterlyreit.com.

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

 

Contact:

Easterly Government Properties, Inc.

Lindsay S. Winterhalter

Senior Vice President, Investor Relations & Operations

202-596-3947

ir@easterlyreit.com

 

 

Forward Looking Statements

We make statements in this press release that are considered “forward-looking statements” within the meaning 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, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions and include our guidance with respect to Net income (loss) and Core FFO per share on a fully diluted basis. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this press release for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues, including credit risk and risk that the U.S. Government reduces its spending on real estate or that it changes its preference away from leased properties; risks associated with ownership and development of real estate; the risk of decreased

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rental rates or increased vacancy rates; the loss of key personnel; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness; risks associated with derivatives or hedging activity; risks associated with mortgage debt or unsecured financing or the unavailability thereof, which could make it difficult to finance or refinance properties and could subject us to foreclosure; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and our financial condition and results of operations; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2023, to be filed with the Securities and Exchange Commission (SEC) on or about February 27, 2024, and under the heading “Risk Factors” in our other public filings. In addition, our anticipated qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise.

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Balance Sheet

(Unaudited, in thousands, except share amounts)

		December 31, 2023				December 31, 2022
Assets
Real estate properties, net		$	2,319,143			$	2,285,308
Cash and cash equivalents			9,381				7,578
Restricted cash			12,558				9,696
Tenant accounts receivable			66,274				58,835
Investment in unconsolidated real estate venture			284,544				271,644
Intangible assets, net			148,453				157,282
Interest rate swaps			1,994				4,020
Prepaid expenses and other assets			37,405				35,022
Total assets		$	2,879,752			$	2,829,385
Liabilities
Revolving credit facility			79,000				65,500
Term loan facilities, net			299,108				248,972
Notes payable, net			696,532				696,052
Mortgage notes payable, net			220,195				240,847
Intangible liabilities, net			12,480				16,387
Deferred revenue			82,712				83,309
Accounts payable, accrued expenses and other liabilities			80,209				67,336
Total liabilities			1,470,236				1,418,403
Equity
Common stock, par value $0.01, 200,000,000 shares authorized,  100,973,247 and 90,814,021 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively			1,010				908
Additional paid-in capital			1,783,338				1,622,913
Retained earnings			112,301				93,497
Cumulative dividends			(576,319	)			(475,983	)
Accumulated other comprehensive income			1,871				3,546
Total stockholders' equity			1,322,201				1,244,881
Non-controlling interest in Operating Partnership			87,315				166,101
Total equity			1,409,516				1,410,982
Total liabilities and equity		$	2,879,752			$	2,829,385

 

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Income Statement

(Unaudited, in thousands, except share and per share amounts)

		Three Months Ended								Twelve Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Revenues
Rental income		$	69,795			$	70,250			$	273,906			$	284,488
Tenant reimbursements			1,629				2,244				8,908				5,920
Asset management income			550				467				2,110				1,409
Other income			646				545				2,303				1,789
Total revenues			72,620				73,506				287,227				293,606
Expenses
Property operating			17,701				17,970				71,964				66,781
Real estate taxes			7,560				7,047				30,461				30,900
Depreciation and amortization			23,347				24,702				91,292				98,254
Acquisition costs			435				431				1,661				1,370
Corporate general and administrative			6,692				6,966				27,118				24,785
Total expenses			55,735				57,116				222,496				222,090
Other income (expense)
Income from unconsolidated real estate venture			1,332				1,088				5,498				3,374
Interest expense, net			(13,430	)			(12,648	)			(49,169	)			(47,378	)
Gain on the sale of operating properties			-				13,590				-				13,590
Impairment loss			-				-				-				(5,540	)
Net income			4,787				18,420				21,060				35,562
Non-controlling interest in Operating Partnership			(351	)			(2,126	)			(2,256	)			(4,088	)
Net income available to Easterly Government
Properties, Inc.		$	4,436			$	16,294			$	18,804			$	31,474
Net income available to Easterly Government
Properties, Inc. per share:
Basic		$	0.04			$	0.18			$	0.19			$	0.34
Diluted		$	0.04			$	0.18			$	0.19			$	0.34
Weighted-average common shares outstanding:
Basic			98,982,693				90,772,706				94,264,166				90,613,966
Diluted			99,334,449				91,136,238				94,556,055				90,948,701
Net income, per share - fully diluted basis		$	0.04			$	0.18			$	0.20			$	0.35
Weighted average common shares outstanding -
fully diluted basis			107,424,269				102,846,963				105,621,563				102,433,575

 

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EBITDA

(Unaudited, in thousands)

		Three Months Ended								Twelve Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Net income		$	4,787			$	18,420			$	21,060			$	35,562
Depreciation and amortization			23,347				24,702				91,292				98,254
Interest expense			13,430				12,648				49,169				47,378
Tax expense			302				585				1,105				931
Gain on the sale of operating properties			-				(13,590	)			-				(13,590	)
Impairment loss			-				-				-				5,540
Unconsolidated real estate venture allocated share of above adjustments			2,087				1,703				7,929				5,206
EBITDA		$	43,953			$	44,468			$	170,555			$	179,281
Pro forma adjustments(1)			79
Pro forma EBITDA		$	44,032

(1) Pro forma assuming a full quarter of operations from the three properties acquired in the fourth quarter of 2023.

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FFO and CAD

(Unaudited, in thousands, except share and per share amounts)

		Three Months Ended								Twelve Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Net income		$	4,787			$	18,420			$	21,060			$	35,562
Depreciation of real estate assets			23,094				24,453				90,288				97,262
Gain on the sale of operating properties			-				(13,590	)			-				(13,590	)
Impairment loss			-				-				-				5,540
Unconsolidated real estate venture allocated share of above adjustments			2,002				1,585				7,639				4,937
FFO		$	29,883			$	30,868			$	118,987			$	129,711
Adjustments to FFO:
Loss on extinguishment of debt			-				20				14				20
Natural disaster event expense, net of recovery			(17	)			87				69				96
Depreciation of non-real estate assets			252				249				1,003				992
Unconsolidated real estate venture allocated share of above adjustments			16				17				66				66
Core FFO		$	30,134			$	31,241			$	120,139			$	130,885
FFO, per share - fully diluted basis		$	0.28			$	0.30			$	1.13			$	1.27
Core FFO, per share - fully diluted basis		$	0.28			$	0.30			$	1.14			$	1.28
Core FFO		$	30,134			$	31,241			$	120,139			$	130,885
Straight-line rent and other non-cash adjustments			(1,236	)			(970	)			(3,897	)			(410	)
Amortization of above-/below-market leases			(678	)			(732	)			(2,730	)			(3,105	)
Amortization of deferred revenue			(1,571	)			(1,484	)			(6,249	)			(5,797	)
Non-cash interest expense			272				240				1,024				934
Non-cash compensation			1,122				1,644				5,747				6,536
Natural disaster event expense, net of recovery			17				(87	)			(69	)			(96	)
Principal amortization			(1,090	)			(1,149	)			(4,316	)			(5,091	)
Maintenance capital expenditures			(4,198	)			(4,648	)			(12,474	)			(9,771	)
Contractual tenant improvements			(771	)			(2,045	)			(2,139	)			(4,134	)
Unconsolidated real estate venture allocated share of above adjustments			(139	)			(323	)			(201	)			(1,424	)
Cash Available for Distribution (CAD)		$	21,862			$	21,687			$	94,835			$	108,527
Weighted average common shares outstanding - fully diluted basis			107,424,269				102,846,963				105,621,563				102,433,575

 

 

 

 

Net Debt and Adjusted Net Debt

(Unaudited, in thousands)

	December 31, 2023
Total Debt(1)	$	1,299,597
Less: Cash and cash equivalents		(10,250	)
Net Debt	$	1,289,347
Less: Adjustment for development projects(2)		(54,159	)
Adjusted Net Debt	$	1,235,188

1 Excludes unamortized premiums / discounts and deferred financing fees.

2 See definition of Adjusted Net Debt on Page 5.

 

 

 

 

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Forward-looking Statement

We make statements in this Supplemental Information Package that are considered “forward-looking statements” within the meaning 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, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this Supplemental Information Package for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues, including credit risk and risk that the U.S. Government reduces its spending on real estate or that it changes its preference away from leased properties; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; the loss of key personnel; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness; risks associated with derivatives or hedging activity; risks associated with mortgage debt or unsecured financing or the unavailability thereof, which could make it difficult to finance or refinance properties and could subject us to foreclosure; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and the financial condition and results of operations of the Company; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2023, to be filed with the Securities and Exchange Commission, or the SEC, on or about February 27, 2024 and included under the heading “Risk Factors” in our other public filings. In addition, our qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Ratings

Ratings are not recommendations to buy, sell or hold the Company’s securities.

The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the year ended December 31, 2023 that will be released in our Form 10-K to be filed with the SEC on or about February 27, 2024.

 

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This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this Supplemental Information Package and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. Additional detail can be found in the Company’s most recent quarterly report on Form 10-Q and the Company’s most recent annual report on Form 10-K, as well as other documents filed with or furnished to the SEC from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” “our pro rata share” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.

 

Annualized lease income is defined as the annualized contractual base rent for the last month in a specified period, plus the annualized straight-line rent adjustments for the last month in such period and the annualized net expense reimbursements earned by us for the last month in such period.

Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current Nareit definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items, nonrecurring expenditures and the unconsolidated real estate venture’s allocated share of these adjustments. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.

Cash fixed charge coverage ratio is calculated as EBITDA divided by the sum of principal amortization and interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.

Cash interest coverage ratio is calculated as EBITDA divided by interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.

Core Funds from Operations (Core FFO) adjusts FFO to present an alternative measure of the Company's operating performance, which, when applicable, excludes items which it believes are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), catastrophic event charges, depreciation of non-real estate assets, and the unconsolidated real estate venture's allocated share of these adjustments. In future periods, the Company may also exclude other items from Core FFO that it believes may help investors compare its results. The Company believes Core FFO more accurately reflects the ongoing operational and financial performance of the Company's core business.

EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.

Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP.

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Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO includes the Company’s share of FFO generated by unconsolidated affiliates. FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.

Net Operating Income (NOI) and Cash NOI. NOI is calculated as net income adjusted to exclude depreciation and amortization, acquisition costs, corporate general and administrative costs, interest expense, gains or losses from sales of property, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. Cash NOI excludes from NOI straight-line rent, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), and the unconsolidated real estate venture’s allocated share of these adjustments. NOI and Cash NOI presented by the Company may not be comparable to NOI and Cash NOI reported by other REITs that define NOI and Cash NOI differently. The Company believes that NOI and Cash NOI provide investors with useful measures of the operating performance of its properties. NOI and Cash NOI should not be considered an alternative to net income as an indication of the Company's performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions.

Net Debt and Adjusted Net Debt. Net Debt represents the Company's consolidated debt and its share of unconsolidated debt adjusted to exclude its share of unamortized premiums and discounts and deferred financing fees, less its share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 25 for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs.

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Overview
Corporate Information and Analyst Coverage		6
Executive Summary		7
Corporate Financials
Balance Sheets		8
Income Statements		9
Net Operating Income		10
EBITDA		11
FFO and CAD		12
Unconsolidated Real Estate Venture		13
Debt
Debt Schedules		15
Debt Maturities		17
Properties
Leased Operating Property Overview		18
Tenants		22
Lease Expirations		24
Summary of Re/Development Projects		25

 

 

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Corporate Information
Corporate Headquarters	Stock Exchange Listing	Information Requests	Investor Relations
2001 K Street NW	New York Stock Exchange	Please contact ir@easterlyreit.com	Lindsay Winterhalter
Suite 775 North		or 202-596-3947 to request an	Senior VP, Operations
Washington, DC 20006	Ticker	Investor Relations package
202-595-9500	DEA

 

Executive Team		Board of Directors
Darrell Crate, CEO	Meghan Baivier, COO & President	William Binnie, Chairman	Emil Henry Jr.
Michael Ibe, Vice-Chairman & EVP	Mark Bauer, EVP Development	Darrell Crate	Michael Ibe
Allison Marino, CFO & CAO	Franklin Logan, GC	Cynthia Fisher	Tara Innes
Stuart Burns, EVP Government Relations	Andrew Pulliam, EVP Acquisitions	Scott Freeman
Nick Nimerala, SVP Chief Asset Officer

 

 

Equity Research Coverage
Citigroup	Raymond James & Associates	RBC Capital Markets
Michael A. Griffin	Bill Crow	Michael Carroll
212-816-5871	727-567-2594	440-715-2649
Jefferies	Truist Securities	Compass Point Research & Trading, LLC
Peter Abramowitz	Michael R. Lewis	Merrill Ross
212-336-7241	212-319-5659	202-534-1392
BMO Capital Markets
John P. Kim
212-885-4115

 

Any opinions, estimates, forecasts or predictions regarding Easterly Government Properties, Inc.’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Easterly Government Properties, Inc. or its management. Easterly Government Properties, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.

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Outstanding Classes of Stock and Partnership Units - Fully Diluted Basis	At December 31, 2023				Earnings	Three months ended December 31, 2023			Three months ended December 31, 2022
Common shares		100,930,433			Net income available to Easterly Government Properties, Inc.	$	4,436		$	16,294
Unvested restricted shares		42,814			Net income available to Easterly Government Properties, Inc.
Common partnership and vested LTIP units		6,668,036			per share:
Total - fully diluted basis		107,641,283			Basic	$	0.04		$	0.18
					Diluted	$	0.04		$	0.18
Market Capitalization	At December 31, 2023				Net income	$	4,787		$	18,420
Price of Common Shares	$	13.44			Net income, per share - fully diluted basis	$	0.04		$	0.18
Total equity market capitalization - fully diluted basis	$	1,446,699			Funds From Operations (FFO)	$	29,883		$	30,868
Net Debt		1,289,347			FFO, per share - fully diluted basis	$	0.28		$	0.30
Total enterprise value	$	2,736,045
					Core FFO	$	30,134		$	31,241
					Core FFO, per share - fully diluted basis	$	0.28		$	0.30
Ratios	At December 31, 2023
Net debt to total enterprise value		47.1	%		Cash Available for Distribution (CAD)	$	21,862		$	21,687
Net debt to annualized quarterly EBITDA		7.3	x
Adjusted Net Debt to annualized quarterly pro forma EBITDA		7.0	x		Liquidity	At December 31, 2023
Cash interest coverage ratio		3.3	x		Cash and cash equivalents				$	10,250
Cash fixed charge coverage ratio		3.1	x		Available under $450 million senior unsecured revolving credit facility(1)				$	370,875

 

(1) Revolving credit facility has an accordion feature that provides additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250 million, for a total revolving credit facility size of not more than $700 million.

 

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		December 31, 2023				December 31, 2022
Assets
Real estate properties, net		$	2,319,143			$	2,285,308
Cash and cash equivalents			9,381				7,578
Restricted cash			12,558				9,696
Tenant accounts receivable			66,274				58,835
Investment in unconsolidated real estate venture			284,544				271,644
Intangible assets, net			148,453				157,282
Interest rate swaps			1,994				4,020
Prepaid expenses and other assets			37,405				35,022
Total assets		$	2,879,752			$	2,829,385
Liabilities
Revolving credit facility			79,000				65,500
Term loan facilities, net			299,108				248,972
Notes payable, net			696,532				696,052
Mortgage notes payable, net			220,195				240,847
Intangible liabilities, net			12,480				16,387
Deferred revenue			82,712				83,309
Accounts payable, accrued expenses and other liabilities			80,209				67,336
Total liabilities			1,470,236				1,418,403
Equity
Common stock, par value $0.01, 200,000,000 shares authorized,  100,973,247 and 90,814,021 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively			1,010				908
Additional paid-in capital			1,783,338				1,622,913
Retained earnings			112,301				93,497
Cumulative dividends			(576,319	)			(475,983	)
Accumulated other comprehensive income			1,871				3,546
Total stockholders' equity			1,322,201				1,244,881
Non-controlling interest in Operating Partnership			87,315				166,101
Total equity			1,409,516				1,410,982
Total liabilities and equity		$	2,879,752			$	2,829,385

 

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		Three Months Ended								Twelve Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Revenues
Rental income		$	69,795			$	70,250			$	273,906			$	284,488
Tenant reimbursements			1,629				2,244				8,908				5,920
Asset management income			550				467				2,110				1,409
Other income			646				545				2,303				1,789
Total revenues			72,620				73,506				287,227				293,606
Expenses
Property operating			17,701				17,970				71,964				66,781
Real estate taxes			7,560				7,047				30,461				30,900
Depreciation and amortization			23,347				24,702				91,292				98,254
Acquisition costs			435				431				1,661				1,370
Corporate general and administrative			6,692				6,966				27,118				24,785
Total expenses			55,735				57,116				222,496				222,090
Other income (expense)
Income from unconsolidated real estate venture			1,332				1,088				5,498				3,374
Interest expense, net			(13,430	)			(12,648	)			(49,169	)			(47,378	)
Gain on the sale of operating properties			-				13,590				-				13,590
Impairment loss			-				-				-				(5,540	)
Net income			4,787				18,420				21,060				35,562
Non-controlling interest in Operating Partnership			(351	)			(2,126	)			(2,256	)			(4,088	)
Net income available to Easterly Government
Properties, Inc.		$	4,436			$	16,294			$	18,804			$	31,474
Net income available to Easterly Government
Properties, Inc. per share:
Basic		$	0.04			$	0.18			$	0.19			$	0.34
Diluted		$	0.04			$	0.18			$	0.19			$	0.34
Weighted-average common shares outstanding:
Basic			98,982,693				90,772,706				94,264,166				90,613,966
Diluted			99,334,449				91,136,238				94,556,055				90,948,701
Net income, per share - fully diluted basis		$	0.04			$	0.18			$	0.20			$	0.35
Weighted average common shares outstanding -
fully diluted basis			107,424,269				102,846,963				105,621,563				102,433,575

 

 

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		Three Months Ended								Twelve Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Net income		$	4,787			$	18,420			$	21,060			$	35,562
Depreciation and amortization			23,347				24,702				91,292				98,254
Acquisition costs			435				431				1,661				1,370
Corporate general and administrative			6,692				6,966				27,118				24,785
Interest expense			13,430				12,648				49,169				47,378
Gain on the sale of operating properties			-				(13,590	)			-				(13,590	)
Impairment loss			-				-				-				5,540
Unconsolidated real estate venture allocated share of above adjustments			2,053				1,686				7,925				5,191
Net Operating Income			50,744				51,263				198,225				204,490
Adjustments to Net Operating Income:
Straight-line rent and other non-cash adjustments			(1,230	)			(803	)			(4,012	)			(333	)
Amortization of above-/below-market leases			(678	)			(732	)			(2,730	)			(3,105	)
Amortization of deferred revenue			(1,571	)			(1,484	)			(6,249	)			(5,797	)
Unconsolidated real estate venture allocated share of above adjustments			(7	)			(335	)			(125	)			(1,501	)
Cash Net Operating Income		$	47,258			$	47,909			$	185,109			$	193,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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		Three Months Ended								Twelve Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Net income		$	4,787			$	18,420			$	21,060			$	35,562
Depreciation and amortization			23,347				24,702				91,292				98,254
Interest expense			13,430				12,648				49,169				47,378
Tax expense			302				585				1,105				931
Gain on the sale of operating properties			-				(13,590	)			-				(13,590	)
Impairment loss			-				-				-				5,540
Unconsolidated real estate venture allocated share of above adjustments			2,087				1,703				7,929				5,206
EBITDA		$	43,953			$	44,468			$	170,555			$	179,281
Pro forma adjustments(1)			79
Pro forma EBITDA		$	44,032

(1) Pro forma assuming a full quarter of operations from the three properties acquired in the fourth quarter of 2023.

 

 

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		Three Months Ended								Twelve Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Net income		$	4,787			$	18,420			$	21,060			$	35,562
Depreciation of real estate assets			23,094				24,453				90,288				97,262
Gain on the sale of operating properties			-				(13,590	)			-				(13,590	)
Impairment loss			-				-				-				5,540
Unconsolidated real estate venture allocated share of above adjustments			2,002				1,585				7,639				4,937
FFO		$	29,883			$	30,868			$	118,987			$	129,711
Adjustments to FFO:
Loss on extinguishment of debt			-				20				14				20
Natural disaster event expense, net of recovery			(17	)			87				69				96
Depreciation of non-real estate assets			252				249				1,003				992
Unconsolidated real estate venture allocated share of above adjustments			16				17				66				66
Core FFO		$	30,134			$	31,241			$	120,139			$	130,885
FFO, per share - fully diluted basis		$	0.28			$	0.30			$	1.13			$	1.27
Core FFO, per share - fully diluted basis		$	0.28			$	0.30			$	1.14			$	1.28
Core FFO		$	30,134			$	31,241			$	120,139			$	130,885
Straight-line rent and other non-cash adjustments			(1,236	)			(970	)			(3,897	)			(410	)
Amortization of above-/below-market leases			(678	)			(732	)			(2,730	)			(3,105	)
Amortization of deferred revenue			(1,571	)			(1,484	)			(6,249	)			(5,797	)
Non-cash interest expense			272				240				1,024				934
Non-cash compensation			1,122				1,644				5,747				6,536
Natural disaster event expense, net of recovery			17				(87	)			(69	)			(96	)
Principal amortization			(1,090	)			(1,149	)			(4,316	)			(5,091	)
Maintenance capital expenditures			(4,198	)			(4,648	)			(12,474	)			(9,771	)
Contractual tenant improvements			(771	)			(2,045	)			(2,139	)			(4,134	)
Unconsolidated real estate venture allocated share of above adjustments			(139	)			(323	)			(201	)			(1,424	)
Cash Available for Distribution (CAD)		$	21,862			$	21,687			$	94,835			$	108,527
Weighted average common shares outstanding - fully diluted basis			107,424,269				102,846,963				105,621,563				102,433,575

 

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Balance Sheet Information	Balance Sheet				Easterly's Share(2)
	December 31, 2023				December 31, 2023
Real estate properties - net	$	449,956			$	238,477
Total assets		547,146				289,988
Total liabilities		10,854				5,753
Total preferred stockholders' equity		125				66
Total common stockholders' equity		536,167				284,169
Basis difference(1)		-				375
Total equity	$	536,292			$	284,544

(1) This amount represents the aggregate difference between the Company’s historical cost basis and basis reflected at the joint venture level.

(2) The Company owns 53.0% of the properties through the unconsolidated joint venture.

 

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Income Statement Information	Three Months Ended				Easterly's Share(1)				Twelve Months Ended				Easterly's Share(1)
	December 31, 2023				December 31, 2023				December 31, 2023				December 31, 2023
Revenues
Rental income	$	10,652			$	5,646			$	40,517			$	21,474
Other income		48				25				176				93
Total Revenues		10,700				5,671				40,693				21,567
Operating expenses
Property operating		2,179				1,155				7,991				4,235
Real estate taxes		1,579				837				5,237				2,776
Depreciation and amortization		3,809				2,019				14,538				7,705
Acquisition costs		-				-				(4	)			(2	)
Asset management fees		550				291				2,110				1,118
Corporate general and administrative		22				12				255				135
Total expenses		8,139				4,314				30,127				15,967
Other expenses
Interest expense - net		(41	)			(22	)			(164	)			(87	)
Distributions to preferred shareholders		-				(3	)			-				(15	)
Net income	$	2,520			$	1,332			$	10,402			$	5,498
Depreciation and amortization		3,809				2,019				14,538				7,705
Interest expense - net		41				22				164				87
Tax expense		87				46				258				137
EBITDA	$	6,457			$	3,419			$	25,362			$	13,427
Net income	$	2,520			$	1,332			$	10,402			$	5,498
Depreciation of real estate assets		3,777				2,002				14,413				7,639
FFO	$	6,297			$	3,334			$	24,815			$	13,137
Adjustments to FFO:
Depreciation of non-real estate assets		32				16				125				66
Core FFO	$	6,329			$	3,350			$	24,940			$	13,203
Adjustments to Core FFO:
Straight-line rent and other non-cash adjustments		(13	)			(7	)			(235	)			(125	)
Non-cash interest expense		41				22				164				87
Maintenance capital expenditures		(291	)			(154	)			(327	)			(173	)
Contractual tenant improvements		-				-				18				10
Cash Available for Distribution (CAD)	$	6,066			$	3,211			$	24,560			$	13,002

(1) The Company owns 53.0% of the properties through the unconsolidated joint venture.

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Debt Instrument	Maturity Date		December 31, 2023 Interest Rate	December 31, 2023 Balance(1)			December 31, 2023 Percent of Total Indebtedness
Unsecured debt
Revolving Credit facility	23-Jul-25(2)		S + 135 bps	$	79,000		6.1%
2016 Term Loan facility	29-Mar-24(3)		5.05%(4)		100,000		7.7%
2018 Term Loan facility	23-Jul-26		5.39%(5)		200,000		15.4%
2017 Series A Senior Notes	25-May-27		4.05%		95,000		7.3%
2017 Series B Senior Notes	25-May-29		4.15%		50,000		3.8%
2017 Series C Senior Notes	25-May-32		4.30%		30,000		2.3%
2019 Series A Senior Notes	12-Sep-29		3.73%		85,000		6.5%
2019 Series B Senior Notes	12-Sep-31		3.83%		100,000		7.7%
2019 Series C Senior Notes	12-Sep-34		3.98%		90,000		6.9%
2021 Series A Senior Notes	14-Oct-28		2.62%		50,000		3.8%
2021 Series B Senior Notes	14-Oct-30		2.89%		200,000		15.4%
Total unsecured debt	4.9 years		4.26%	$	1,079,000		82.9%
	(wtd-avg maturity)		(wtd-avg rate)
Secured mortgage debt
VA - Golden	1-Apr-24		5.00%	$	8,447		0.7%
USFS II - Albuquerque	14-Jul-26		4.46%		11,603		0.9%
ICE - Charleston	15-Jan-27		4.21%		11,998		0.9%
VA - Loma Linda	6-Jul-27		3.59%		127,500		9.8%
CBP - Savannah	10-Jul-33		3.40%		9,549		0.8%
USCIS - Kansas City	6-Aug-24		3.68%		51,500		4.0%
Total secured mortgage debt	2.9 years		3.74%	$	220,597		17.1%
	(wtd-avg maturity)		(wtd-avg rate)

(1) Excludes unamortized premiums / discounts and deferred financing fees.

(2) Revolving credit facility has two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.

(3) On January 23, 2024, we entered into the seventh amendment to the 2016 term loan facility to extend the maturity date of the loan agreement to January 30, 2025.

(4) Calculated based on one interest rate swap with a notional value of $100.0 million, which effectively fixes the interest rate at 5.05% annually based on the Company’s current consolidated leverage ratio. The interest rate swap matures on June 29, 2025, which is not coterminous with the maturity date of the 2016 term loan facility.

(5) Calculated based on two interest rate swaps with an aggregate notional value of $200.0 million, which effectively fix the interest rate at 5.39% annually based on the Company’s current consolidated leverage ratio. The two interest rate swaps mature on December 23, 2024 and March 23, 2025, neither of which is coterminous with the maturity date of the 2018 term loan facility.

 

 

 

 

 

 

 

 

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Debt Statistics	December 31, 2023						December 31, 2023
Variable rate debt - unhedged	$	79,000			% Variable rate debt - unhedged			6.1	%
Fixed rate debt		1,220,597			% Fixed rate debt(3)			93.9	%
Total Debt(1)	$	1,299,597
Less: cash and cash equivalents		(10,250	)		Weighted average maturity		4.6 years
Net Debt	$	1,289,347			Weighted average interest rate			4.2	%
Less: Adjustment for development(2)		(54,159	)
Adjusted Net Debt	$	1,235,188

(1) Excludes unamortized premiums / discounts and deferred financing fees.

(2) See definition of Adjusted Net Debt on Page 4.

(3) Includes the Company's 2016 and 2018 term loan facilities which are effectively swapped to fixed interest rates. Note the associated swaps are not coterminous with maturity dates of the respective term loan facilities. See Page 15 for further detail.

 

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		Secured Debt								Unsecured Debt
Year		Scheduled Amortization				Scheduled Maturities				Scheduled Maturities				Total				Percentage of Debt Maturing				Weighted Average Interest Rate of Scheduled Maturities
2024			4,404				59,895				100,000				164,299				12.5	%			4.60	%
2025			4,598				-				79,000				83,598				6.4	%			6.68	%
2026			3,686				6,368				200,000				210,054				16.2	%			5.34	%
2027			1,093				134,640				95,000				230,733				17.8	%			3.81	%
2028			983				-				50,000				50,983				3.9	%			2.62	%
2029			1,016				-				135,000				136,016				10.5	%			3.89	%
2030			1,049				-				200,000				201,049				15.5	%			2.89	%
2031			1,081				-				100,000				101,081				7.8	%			3.83	%
2032			1,116				-				30,000				31,116				2.4	%			4.30	%
2033			668				-				-				668				0.1	%			3.40	%
2034			-				-				90,000				90,000				6.9	%			3.98	%
Total		$	19,694			$	200,903			$	1,079,000			$	1,299,597				100.0	%

 

 

 

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Property Name		Location		Property Type		Tenant Lease Expiration Year		Year Built / Renovated		Leased Square Feet				Annualized Lease Income				Percentage of Total Annualized Lease Income				Annualized Lease Income per Leased Square Foot
Wholly Owned U.S. Government Leased Properties
VA - Loma Linda		Loma Linda, CA		Outpatient Clinic		2036		2016			327,614			$	16,656,342				5.2	%		$	50.84
USCIS - Kansas City		Lee's Summit, MO		Office/Warehouse		2024 - 2042(1)		1969 / 1999			416,399				10,282,368				3.2	%			24.69
JSC - Suffolk		Suffolk, VA		Office		2028(2)		1993 / 2004			403,737				8,427,298				2.7	%			20.87
Various GSA - Chicago		Des Plaines, IL		Office		2026		1971 / 1999			188,768				7,765,015				2.5	%			41.14
FBI - Salt Lake		Salt Lake City, UT		Office		2032		2012			169,542				6,953,528				2.2	%			41.01
IRS - Fresno		Fresno, CA		Office		2033		2003			180,481				6,908,070				2.2	%			38.28
Various GSA - Portland		Portland, OR		Office		2024 - 2039(3)		2002			205,478				6,855,312				2.2	%			33.36
Various GSA - Buffalo		Buffalo, NY		Office		2025 - 2039		2004			273,678				6,822,162				2.2	%			24.93
VA - San Jose		San Jose, CA		Outpatient Clinic		2038		2018			90,085				5,770,504				1.8	%			64.06
EPA - Lenexa		Lenexa, KS		Office		2027(2)		2007 / 2012			169,585				5,732,732				1.8	%			33.80
FBI - Tampa		Tampa, FL		Office		2040		2005			138,000				5,313,544				1.7	%			38.50
FBI - San Antonio		San Antonio, TX		Office		2025		2007			148,584				5,208,055				1.6	%			35.05
PTO - Arlington		Arlington, VA		Office		2035		2009			190,546				5,028,972				1.6	%			26.39
FDA - Alameda		Alameda, CA		Laboratory		2039		2019			69,624				4,898,064				1.5	%			70.35
FBI / DEA - El Paso		El Paso, TX		Office/Warehouse		2028		1998 - 2005			203,683				4,653,875				1.5	%			22.85
FEMA - Tracy		Tracy, CA		Warehouse		2038		2018			210,373				4,650,064				1.5	%			22.10
FBI - Omaha		Omaha, NE		Office		2024		2009			112,196				4,435,691				1.4	%			39.54
TREAS - Parkersburg		Parkersburg, WV		Office		2041		2004 / 2006			182,500				4,355,673				1.4	%			23.87
FDA - Lenexa		Lenexa, KS		Laboratory		2040		2020			59,690				4,254,683				1.3	%			71.28
DOT - Lakewood		Lakewood, CO		Office		2039		2004			122,225				4,154,365				1.3	%			33.99
VA - South Bend		Mishakawa, IN		Outpatient Clinic		2032		2017			86,363				4,068,428				1.3	%			47.11
FBI - Pittsburgh		Pittsburgh, PA		Office		2027		2001			100,054				4,037,239				1.3	%			40.35
FBI - New Orleans		New Orleans, LA		Office		2029(4)		1999 / 2006			137,679				3,970,218				1.3	%			28.84
USCIS - Lincoln		Lincoln, NE		Office		2025		2005			137,671				3,937,828				1.2	%			28.60
JUD - Del Rio		Del Rio, TX		Courthouse/Office		2041		1992 / 2004			89,880				3,822,377				1.2	%			42.53
VA - Mobile		Mobile, AL		Outpatient Clinic		2033		2018			79,212				3,676,952				1.2	%			46.42
FBI - Knoxville		Knoxville, TN		Office		2025		2010			99,130				3,607,505				1.1	%			36.39
EPA - Kansas City		Kansas City, KS		Laboratory		2043		2003			55,833				3,497,886				1.1	%			62.65
FBI - Birmingham		Birmingham, AL		Office		2042		2005			96,278				3,474,546				1.1	%			36.09
ICE - Charleston		North Charleston, SC		Office		2027		1994 / 2012			65,124				3,343,735				1.1	%			51.34
USFS II - Albuquerque		Albuquerque, NM		Office		2026(2)		2011			98,720				3,340,675				1.1	%			33.84
VA - Chico		Chico, CA		Outpatient Clinic		2034		2019			51,647				3,324,046				1.0	%			64.36
FBI - Richmond		Richmond, VA		Office		2041		2001			96,607				3,307,199				1.0	%			34.23
FBI - Little Rock		Little Rock, AR		Office		2041		2001			102,377				3,217,259				1.0	%			31.43
DEA - Sterling		Sterling, VA		Laboratory		2038		2001			57,692				3,209,041				1.0	%			55.62
USFS I - Albuquerque		Albuquerque, NM		Office		2026		2006			92,455				3,194,580				1.0	%			34.55
USCIS - Tustin		Tustin, CA		Office		2034		1979 / 2019			66,818				3,159,364				1.0	%			47.28

 

 

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Property Name		Location		Property Type		Tenant Lease Expiration Year		Year Built / Renovated		Leased Square Feet				Annualized Lease Income				Percentage of Total Annualized Lease Income				Annualized Lease Income per Leased Square Foot
Wholly Owned U.S. Government Leased Properties (Cont.)
DEA - Vista		Vista, CA		Laboratory		2035		2002			52,293				3,130,467				1.0	%			59.86
VA - Orange		Orange, CT		Outpatient Clinic		2034		2019			56,330				2,990,034				0.9	%			53.08
VA - Indianapolis		Brownsburg, IN		Outpatient Clinic		2041		2021			80,000				2,954,619				0.9	%			36.93
FBI - Mobile		Mobile, AL		Office		2029(2)		2001			76,112				2,826,776				0.9	%			37.14
ICE - Albuquerque		Albuquerque, NM		Office		2027		2011			71,100				2,822,205				0.9	%			39.69
JUD - El Centro		El Centro, CA		Courthouse/Office		2034		2004			43,345				2,800,983				0.9	%			64.62
DEA - Dallas Lab		Dallas, TX		Laboratory		2038		2001			49,723				2,773,342				0.9	%			55.78
DEA - Pleasanton		Pleasanton, CA		Laboratory		2035		2015			42,480				2,765,720				0.9	%			65.11
DEA - Upper Marlboro		Upper Marlboro, MD		Laboratory		2037		2002			50,978				2,745,212				0.9	%			53.85
SSA - Charleston		Charleston, WV		Office		2029(2)		1959 / 2000			110,000				2,706,668				0.9	%			24.61
FBI - Albany		Albany, NY		Office		2036		1998			69,476				2,697,700				0.9	%			38.83
TREAS - Birmingham		Birmingham, AL		Office		2029		2014			83,676				2,613,424				0.8	%			31.23
USAO - Louisville		Louisville, KY		Office		2031		2011			60,000				2,539,045				0.8	%			42.32
JUD - Charleston		Charleston, SC		Courthouse/Office		2040		1999			52,339				2,522,970				0.8	%			48.20
JUD - Jackson		Jackson, TN		Courthouse/Office		2043		1998			75,043				2,386,456				0.8	%			31.80
NARA - Broomfield		Broomfield, CO		Office/Warehouse		2032		2012			161,730				2,373,591				0.7	%			14.68
CBP - Savannah		Savannah, GA		Laboratory		2033		2013			35,000				2,267,962				0.7	%			64.80
Various GSA - Cleveland		Brooklyn Heights, OH		Office		2028 - 2040		1981 / 2021			61,384				2,262,036				0.7	%			36.85
DEA - Dallas		Dallas, TX		Office		2041		2001			71,827				2,251,355				0.7	%			31.34
NWS - Kansas City		Kansas City, MO		Office		2033(2)		1998 / 2020			94,378				2,143,349				0.7	%			22.71
GSA - Clarksburg		Clarksburg, WV		Office		2039(2)		1999			63,750				2,094,870				0.7	%			32.86
DEA - Santa Ana		Santa Ana, CA		Office		2029		2004			39,905				2,002,191				0.6	%			50.17
NPS - Omaha		Omaha, NE		Office		2029(2)		2004			62,772				1,954,754				0.6	%			31.14
DEA - North Highlands		Sacramento, CA		Office		2033		2002			37,975				1,914,312				0.6	%			50.41
VA - Golden		Golden, CO		Office/Warehouse		2026		1996 / 2011			56,753				1,769,302				0.6	%			31.18
JUD - Newport News		Newport News, VA		Courthouse/Office		2033		2008			35,005				1,660,941				0.5	%			47.45
USCG - Martinsburg		Martinsburg, WV		Office		2027		2007			59,547				1,611,989				0.5	%			27.07
JUD - Aberdeen		Aberdeen, MS		Courthouse/Office		2025		2005			46,979				1,562,188				0.5	%			33.25
VA - Charleston		North Charleston, SC		Warehouse		2024 / 2040		2020			102,718				1,553,987				0.5	%			15.13
DHS - Atlanta		Atlanta, GA		Office		2031 - 2038(5)		2008 / 2023			47,110				1,467,480				0.5	%			31.15
DEA - Albany		Albany, NY		Office		2025		2004			31,976				1,400,197				0.4	%			43.79
USAO - Springfield		Springfield, IL		Office		2038		2002			43,600				1,381,505				0.4	%			31.69
DEA - Riverside		Riverside, CA		Office		2032		1997			34,354				1,310,541				0.4	%			38.15
DEA - Birmingham		Birmingham, AL		Office		2038		2005			35,616				1,296,804				0.4	%			36.41
JUD - Council Bluffs		Council Bluffs, IA		Courthouse/Office		2041(6)		2021			28,900				1,287,379				0.4	%			44.55
SSA - Dallas		Dallas, TX		Office		2035		2005			27,200				1,061,702				0.3	%			39.03
JUD - South Bend		South Bend, IN		Courthouse/Office		2027		1996 / 2011			30,119				796,519				0.3	%			26.45

 

 

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Property Name		Location		Property Type		Tenant Lease Expiration Year		Year Built / Renovated		Leased Square Feet				Annualized Lease Income				Percentage of Total Annualized Lease Income				Annualized Lease Income per Leased Square Foot
Wholly Owned U.S. Government Leased Properties (Cont.)
ICE - Louisville		Louisville, KY		Office		2036		2011			17,420				654,219				0.2	%			37.56
DEA - San Diego		San Diego, CA		Warehouse		2032		1999			16,100				556,881				0.2	%			34.59
DEA - Bakersfield		Bakersfield, CA		Office		2038		2000			9,800				487,590				0.2	%			49.75
SSA - San Diego		San Diego, CA		Office		2032		2003			10,059				447,488				0.1	%			44.49
ICE - Otay		San Diego, CA		Office		2027		2001			7,434				259,066				0.1	%			34.85
Subtotal											7,618,634			$	270,421,014				85.5	%		$	35.49
Wholly Owned State and Local Government Leased Property
CA - Anaheim		Anaheim, CA		Office		2033 / 2034		1991 / 2020			95,273				3,256,203				1.0	%			34.18
Subtotal											95,273			$	3,256,203				1.0	%		$	34.18
Wholly Owned Privately Leased Property
501 East Hunter Street - Lummus Corporation		Lubbock, TX		Warehouse/Distribution		2028(6)		2013			70,078				400,380				0.1	%			5.71
Subtotal											70,078			$	400,380				0.1	%		$	5.71
Wholly Owned Properties Total / Weighted Average											7,783,985			$	274,077,597				86.6	%		$	35.21

 

 

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Property Name		Location		Property Type		Tenant Lease Expiration Year		Year Built / Renovated		Leased Square Feet				Annualized Lease Income				Percentage of Total Annualized Lease Income				Annualized Lease Income per Leased Square Foot
U.S Government Leased to Unconsolidated Real Estate Venture
VA - Phoenix(7)		Phoenix, AZ		Outpatient Clinic		2042		2022			257,294				10,678,873				3.4	%			41.50
VA - San Antonio(7)		San Antonio, TX		Outpatient Clinic		2041		2021			226,148				9,185,752				2.9	%			40.62
VA - Chattanooga(7)		Chattanooga, TN		Outpatient Clinic		2035		2020			94,566				4,355,633				1.4	%			46.06
VA - Lubbock(7)(8)		Lubbock, TX		Outpatient Clinic		2040		2020			120,916				4,206,784				1.3	%			34.79
VA - Marietta(7)		Marietta, GA		Outpatient Clinic		2041		2021			76,882				3,955,701				1.2	%			51.45
VA - Birmingham(7)		Irondale, AL		Outpatient Clinic		2041		2021			77,128				3,175,571				1.0	%			41.17
VA - Corpus Christi(7)		Corpus Christi, TX		Outpatient Clinic		2042		2022			69,276				2,938,590				0.9	%			42.42
VA - Columbus(7)		Columbus, GA		Outpatient Clinic		2042		2022			67,793				2,909,443				0.9	%			42.92
VA - Lenexa(7)		Lenexa, KS		Outpatient Clinic		2041		2021			31,062				1,309,622				0.4	%			42.16
Subtotal											1,021,065			$	42,715,969				13.4	%		$	41.83
Total / Weighted Average											8,805,050			$	316,793,566				100.0	%		$	35.98
Total / Weighted Average at Easterly's Share											8,325,148			$	296,717,063							$	35.64

(1) 316,318 square feet leased to U.S. Citizenship and Immigration Services ("USCIS") will expire on February 19, 2042 and contains two five-year renewal options. 88,672 square feet leased to four private tenants will expire between 2024-2028 and each contains renewal options.

(2) Lease contains one five-year renewal option.

(3) 37,811 square feet leased to the U.S. Army Corps of Engineers ("ACOE") will expire on February 19, 2025 and contains two five-year renewal options. 21,646 square feet leased to the Federal Bureau of Investigation ("FBI") will expire on December 31, 2024 and contains two five-year renewal options. 11,061 square feet leased to five private tenants will expire between 2025-2030 and each contains renewal options. 4,846 square feet leased to the Department of Energy ("DOE") will expire on April 14, 2033 and contains one ten-year renewal option.

(4) Lease contains one ten-year renewal option.

(5) 29,737 square feet leased to the U.S. Customs and Border Protection ("CBP") will expire on April 30, 2038. 17,373 square feet leased to a private tenant will expire on December 31, 2031 and contains two five-year renewal options. 44,075 square feet leased to the Transportation Security Administration ("TSA") was signed in February 2023, but has not yet commenced. The lease is seven years firm and contains one five-year renewal option and one three-year renewal option.

(6) Lease contains two five-year renewal options.

(7) The Company owns 53.0% of the property through an unconsolidated joint venture.

(8) Asset is subject to a ground lease where the Company is the lessee.

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Tenant		Weighted Average Remaining Lease Term(1)				Leased Square Feet				Percentage of Leased Square Feet				Annualized Lease Income				Percentage of Total Annualized Lease Income
U.S. Government
Department of Veteran Affairs ("VA")			14.7				2,058,031				23.3	%		$	88,091,238				27.7	%
Federal Bureau of Investigation ("FBI")			8.4				1,501,720				17.0	%			52,774,609				16.7	%
Drug Enforcement Administration ("DEA")			10.8				607,064				6.9	%			27,846,156				8.8	%
Judiciary of the U.S. ("JUD")			13.4				401,610				4.6	%			16,839,813				5.3	%
U.S. Citizenship and Immigration Services ("USCIS")			12.8				520,807				5.9	%			14,955,067				4.7	%
Environmental Protection Agency ("EPA")			7.7				225,418				2.6	%			9,230,618				2.9	%
Food and Drug Administration ("FDA")			16.2				129,314				1.5	%			9,152,747				2.9	%
U.S. Joint Staff Command ("JSC")			4.4				403,737				4.6	%			8,427,298				2.7	%
Internal Revenue Service ("IRS")			9.6				233,334				2.7	%			7,998,696				2.5	%
Immigration and Customs Enforcement ("ICE")			5.0				183,894				2.1	%			7,871,695				2.5	%
Federal Aviation Administration ("FAA")			2.8				188,768				2.1	%			7,765,015				2.5	%
Bureau of the Fiscal Service ("BFS")			13.7				266,176				3.0	%			6,969,097				2.2	%
U.S. Forest Service ("USFS")			2.4				191,175				2.2	%			6,535,255				2.1	%
Social Security Administration ("SSA")			8.9				189,276				2.1	%			5,596,570				1.8	%
Patent and Trademark Office ("PTO")			11.0				190,546				2.2	%			5,028,972				1.6	%
Federal Emergency Management Agency ("FEMA")			14.8				210,373				2.4	%			4,650,064				1.5	%
Department of Transportation ("DOT")			14.8				129,659				1.5	%			4,413,431				1.4	%
U.S. Attorney Office ("USAO")			10.9				110,008				1.2	%			4,131,106				1.3	%
Customs and Border Protection ("CBP")			11.7				64,737				0.7	%			3,199,589				1.0	%
National Archives and Records Administration ("NARA")			8.4				161,730				1.8	%			2,373,591				0.7	%
National Weather Service ("NWS")			10.0				94,378				1.1	%			2,143,349				0.7	%
National Park Service ("NPS")			5.5				62,772				0.7	%			1,954,754				0.6	%
U.S. Department of Agriculture ("USDA")			4.1				60,257				0.7	%			1,907,054				0.6	%
General Services Administration - Other			1.7				55,807				0.6	%			1,798,673				0.6	%
U.S. Coast Guard ("USCG")			4.0				59,547				0.7	%			1,611,989				0.5	%
National Oceanic and Atmospheric Administration ("NOAA")			7.7				33,403				0.4	%			1,421,067				0.4	%
U.S. Army Corps of Engineers ("ACOE")			1.1				39,320				0.4	%			1,146,042				0.4	%
Small Business Administration ("SBA")			15.6				44,753				0.5	%			1,040,562				0.3	%
Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF")			9.2				23,775				0.3	%			743,335				0.2	%

 

 

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Tenant		Weighted Average Remaining Lease Term(1)				Leased Square Feet				Percentage of Leased Square Feet				Annualized Lease Income				Percentage of Total Annualized Lease Income
U.S. Government
Federal Energy Regulatory Commission ("FERC")			15.6				6,214				0.1	%			246,845				0.1	%
Department of Energy ("DOE")			9.3				4,846				0.1	%			187,782				0.1	%
U.S. Marshals Service ("USMS")			3.1				1,054				0.0	%			50,101				0.0	%
Department of Labor ("DOL")			15.1				1,004				0.0	%			32,987				0.0	%
U.S. Probation Office ("USPO")			15.1				452				0.0	%			14,863				0.0	%
Subtotal			10.7				8,454,959				96.0	%		$	308,150,030				97.3	%
State and Local Government
State of California Employee Development Department			9.9				65,133				0.7	%			2,140,000				0.7	%
State of California Department of Industrial Relations			9.8				30,140				0.3	%			1,116,203				0.4	%
New York State Court of Claims			2.8				14,274				0.2	%			393,861				0.1	%
Subtotal			9.0				109,547				1.2	%		$	3,650,064				1.2	%
Private Tenants
Other Private Tenants			4.0				77,090				0.9	%			2,022,945				0.6	%
CVS Health			1.4				39,690				0.5	%			931,928				0.3	%
St. Luke's Health System			3.0				32,043				0.4	%			907,488				0.3	%
Providence Health & Services			1.7				21,643				0.2	%			730,731				0.2	%
Lummus Corporation			4.6				70,078				0.8	%			400,380				0.1	%
Subtotal			3.4				240,544				2.8	%		$	4,993,472				1.5	%
Total / Weighted Average			10.5				8,805,050				100.0	%		$	316,793,566				100.0	%

(1) Weighted based on leased square feet.

 

 

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Year of Lease Expiration		Number of Leases Expiring		Leased Square Footage Expiring				Percentage of Total Leased Square Footage Expiring				Annualized Lease Income Expiring				Percentage of Total Annualized Lease Income Expiring				Annualized Lease Income per Leased Square Foot Expiring
2024		4			155,176				1.8	%		$	5,504,512				1.7	%		$	35.47
2025		14			629,156				7.1	%			20,639,041				6.5	%			32.80
2026		6			483,013				5.5	%			17,370,921				5.5	%			35.96
2027		9			506,510				5.8	%			18,731,963				5.9	%			36.98
2028		11			802,397				9.1	%			17,491,834				5.5	%			21.80
2029		6			510,144				5.8	%			16,074,031				5.1	%			31.51
2030		1			1,536				0.0	%			58,893				0.0	%			38.34
2031		3			117,875				1.3	%			4,613,758				1.5	%			39.14
2032		7			531,001				6.0	%			16,801,083				5.3	%			31.64
2033		9			522,122				5.9	%			20,815,244				6.6	%			39.87
Thereafter		54			4,546,120				51.7	%			178,692,286				56.4	%			39.31
Total / Weighted Average		124			8,805,050				100.0	%		$	316,793,566				100.0	%		$	35.98

 

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Projects Under Construction(1)
Property Name		Location				Property Type				Total Leased Square Feet				Lease Term				Anticipated Total Cost				Cost to Date				Anticipated Lump-Sum Reimbursement(2)				Anticipated Completion Date		Anticipated Lease Commencement
FDA - Atlanta		Atlanta, GA				Laboratory					162,000			20-year				$	229,053			$	54,191			$	150,680			4Q 2025		4Q 2025
Total											162,000							$	229,053			$	54,191			$	150,680
Projects in Design(3)
Property Name		Location				Property Type				Total Estimated Leased Square Feet				Lease Term				Cost to Date				Anticipated Completion Date				Anticipated Lease Commencement
N/A			-				-				-				-			$	-				-				-
Projects Previously Completed with Outstanding Lump-Sum Reimbursements(2)
Property Name		Location				Property Type				Total Leased Square Feet				Lease Term				Outstanding Lump-Sum Reimbursement(2)				Completion Date				Lease Commencement
N/A			-				-				-				-			$	-				-				-

 

(1) Includes properties under construction for which design is complete.

(2) Includes reimbursement of lump-sum tenant improvement costs and development fees.

(3) Includes projects in the design phase for which project scope is not fully determined.

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v3.24.0.1

Document and Entity Information	Feb. 27, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 27, 2024
Entity Registrant Name	Easterly Government Properties, Inc.
Entity Central Index Key	0001622194
Entity Emerging Growth Company	false
Securities Act File Number	001-36834
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	47-2047728
Entity Address, Address Line One	2001 K Street NW
Entity Address, Address Line Two	Suite 775 North
Entity Address, City or Town	Washington
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20006
City Area Code	(202)
Local Phone Number	595-9500
Entity Information, Former Legal or Registered Name	Not Applicable
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	DEA
Security Exchange Name	NYSE

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