8-K - DEA - Equibles

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):

November 1, 2022

Easterly Government Properties, Inc.

(Exact name of Registrant as Specified in Its Charter)

Maryland	001-36834	47-2047728
(State or Other Jurisdiction<br><br>of Incorporation)	(Commission<br><br>File Number)	(IRS Employer<br><br>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<br><br>Symbol(s)	Name of each exchange on which registered
Common Stock	DEA	New York Stock Exchange

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. ☐

Item 2.02 Results of Operations and Financial Condition.

On November 1, 2022, we issued a press release announcing our results of operations for the third quarter ended September 30, 2022. 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 11:00a.m. Eastern Time November 1, 2022, to review our third quarter 2022 performance, discuss recent events and conduct a question-and-answer session. The number to call is 1-877-407-9716 (domestic) and 1-201-493-6779 (international). A live webcast will be available in the Investor Relations section of our website. A replay of the conference call will be available through November 15, 2022, by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and entering the passcode 13733383. 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 November 1, 2022.
99.2	Easterly Government Properties, Inc. Supplemental Information Package for the quarter ended September 30, 2022.
104	Cover Page Interactive Data File (embedded within the inline XBRL document.)

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<br><br>PROPERTIES, INC.
By:	/s/ William C. Trimble, III
Name:	William C. Trimble, III
Title:	Chief Executive Officer and President

Date: November 1, 2022

EX-99.1

Exhibit 99.1

EASTERLY GOVERNMENT PROPERTIES

REPORTS THIRD QUARTER 2022 RESULTS

WASHINGTON, D.C. – November 1, 2022 – 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 ended September 30, 2022.

Highlights for the Quarter Ended September 30, 2022:

• Net income of $0.7 million, or $0.01 per share on a fully diluted basis

• FFO of $32.4 million, or $0.32 per share on a fully diluted basis

• FFO, as Adjusted of $33.3 million, or $0.32 per share on a fully diluted basis

• CAD of $28.5 million

• Acquired, through its joint venture (the “JV”), a 67,793 leased square foot outpatient facility leased to the Department of Veterans Affairs (VA) located in Columbus, Georgia (“VA - Columbus”). This is the seventh property to be acquired in the previously announced portfolio of 10 properties 100% leased to the VA under predominately 20-year firm term leases (the “VA Portfolio”)

• Acquired a 28,900 leased square foot U.S. District courthouse in Council Bluffs, Iowa (“JUD - Council Bluffs”). JUD - Council Bluffs is a build-to-suit facility constructed in 2021 and 100% leased to the General Services Administration (GSA) on behalf of the U.S. District Court under a 20-year non-cancelable lease that does not expire until 2041

• Released the Company's inaugural Environmental, Social, and Governance Report, which includes details on the Company's environmental and social goals, the Company's Environmental Management System (EMS), the Company's launch of its charitable giving program, its continued volunteer efforts, its focus on Diversity, Equity, and Inclusion (DEI), and a summary of the Company's governance policies, including the Board's commitment to seeking a diversity of views, experiences, skill sets, gender and ethnicity when selecting Board members

• Expects to receive, as of the date of this release, aggregate net proceeds of approximately $92.5 million from the sale of an aggregate of 4,259,000 shares of the Company's common stock that have not yet been settled, including 2,309,000 shares pursuant to the August 11, 2021 underwritten public offering (the “Offering”), and 1,950,000 shares from sales under the Company's ATM Program launched in December 2019 (the “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 $21.72 per share

"As macroeconomic headwinds challenge the REIT industry, the stability and attractive yield of our dividend continues to differentiate Easterly," said Meghan G. Baivier, Easterly's Chief Financial and Operating Officer. "With a potential recession in sight, it gives me great comfort knowing 98% of the cashflows supporting our dividend originate with the United States Government."

Financial Results for the Nine Months Ended September 30, 2022:

Net income of $17.1 million, or $0.17 per share on a fully diluted basis

FFO of $98.8 million, or $0.97 per share on a fully diluted basis

FFO, as Adjusted of $98.9 million, or $0.97 per share on a fully diluted basis

CAD of $86.8 million

Portfolio Operations

As of September 30, 2022, the Company or the JV owned 95 operating properties in the United States encompassing approximately 9.1 million leased square feet, including 94 operating properties that were leased primarily to U.S. Government tenant agencies 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 in design and, once complete, a 20-year lease with the GSA is expected to commence for the beneficial use of the U.S. Food and Drug Administration (FDA). As of September 30, 2022, the portfolio had a weighted average age of 14.0 years, based upon the date properties were built or renovated-to-suit, and had a weighted average remaining lease term of 10.1 years.

Acquisitions

On July 14, 2022, the Company acquired, through the JV, a 67,793 leased square foot VA outpatient facility in Columbus, Georgia. With a 20-year non-cancelable lease term, VA - Columbus is the seventh property to be acquired in the VA Portfolio and provides an enhanced range of services to the approximately 30,000 surrounding veterans that reside close to the Georgia-Alabama state line.

On August 23, 2022, the Company acquired a 28,900 leased square foot U.S. District courthouse in Council Bluffs, Iowa. JUD - Council Bluffs is a build-to-suit facility constructed in 2021 and 100% leased to the GSA on behalf of the U.S. District Court under a 20-year non-cancelable lease that does not expire until 2041. The lease also features two five-year renewal options that, if exercised, would extend the lease until 2051. The recently constructed facility is occupied by all three branches of government: the Judiciary includes a district clerk’s office, a bankruptcy clerk’s office, a probation and pre-trial services office, and the public defender’s office. Offices for both the US Attorneys and US Marshals Service represent the Executive Branch. And finally, district offices for Iowa’s two U.S. Senators – Senator Grassley and Senator Ernst – represent the Legislative Branch.

Balance Sheet and Capital Markets Activity

As of September 30, 2022, the Company had total indebtedness of approximately $1.4 billion comprised of $177.8 million outstanding on its revolving credit facility, $100.0 million outstanding on its 2016 term loan facility, $150.0 million outstanding on its 2018 term loan facility, $700.0 million of senior unsecured notes, and $247.5 million of mortgage debt (excluding unamortized premiums and discounts and deferred financing fees). At September 30, 2022, Easterly’s outstanding debt had a weighted average maturity of 5.6 years and a weighted average interest rate of 3.7%. As of September 30, 2022, Easterly’s Net Debt to total enterprise value was 45.7% and its Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio was 7.4x.

As of the date of this release, the Company expects to receive aggregate net proceeds of approximately $92.5 million from the sale of an aggregate of 4,259,000 shares of the Company's common stock that have not yet been settled, including 2,309,000 shares pursuant to the Offering, and 1,950,000 shares from sales 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 $21.72 per share.

Dividend

On October 26, 2022, the Board of Directors of Easterly approved a cash dividend for the third quarter of 2022 in the amount of $0.265 per common share. The dividend will be payable November 23, 2022 to shareholders of record on November 11, 2022.

Subsequent Events and Pro Forma Metrics

On November 1, 2022, Easterly announced it had entered into an agreement to sell a 10-property portfolio totaling approximately 668,000 leased square feet for approximately $205.3 million in gross proceeds (the "Disposition Portfolio"). As of September 30, 2022, the Disposition Portfolio was 99% leased to the U.S. Government with a weighted average remaining lease term of 7.9 years and a weighted average age of 14.0 years. The Disposition Portfolio features a diverse mix of tenant agencies, asset type, lease roll, and geographic exposure. At the time of its announcement, Easterly has completed the sale of nine of the 10 assets, with an expected closing on the remaining asset in late December 2022. Assets within the Disposition Portfolio include (arranged by building size and closing status):

Expected to Close in December 2022:

• DOI - Billings: A 149,110 leased square foot two-building office occupied by the U.S. Department of the Interior (DOI) and located in Billings, Montana

Sale Completed on October 27, 2022:

• DHA - Aurora: A 101,285 leased square foot office occupied by the Defense Health Agency (DHA) and located in Aurora, Colorado

• DOE - Lakewood: A 115,650 leased square foot office occupied by the U.S. Department of Energy (DOE) and located in Lakewood, Colorado

• FDA - College Park: An 80,677 leased square foot laboratory occupied by the Food and Drug Administration (FDA) and located in College Park, Maryland

• OSHA - Sandy: A 75,000 leased square foot laboratory occupied by the Occupational Safety and Health Administration (OSHA) and located in Sandy, Utah

• ICE - Pittsburgh: A 25,369 leased square foot office predominately occupied by U.S. Immigration and Customs Enforcement (ICE) and located in Pittsburgh, Pennsylvania

• CBP - Sunburst: A 33,000 leased square foot office occupied by Customs and Border Protection (CBP) and located in Sunburst, Montana

• VA - Baton Rouge: A 30,000 leased square foot outpatient facility occupied by the Department of Veterans Affairs (VA) and located in Baton Rouge, Louisiana

• MEPCOM - Jacksonville: A 30,000 leased square foot office occupied by Military Entrance Processing Command (MEPCOM) and located in Jacksonville, Florida

• HRSA - Baton Rouge: A 27,569 leased square foot office occupied by the Health Resources and Services Administration (HRSA) and located in Baton Rouge, Louisiana

"The sale of a portfolio is a meaningful event for Easterly," said William C. Trimble, III, Easterly's Chief Executive Officer. "By disposing of these 10 properties, Easterly continues to hone its bullseye focus while rebuilding capacity for future growth opportunities."

Year to date, Easterly has acquired, either directly or through the JV, six properties for an aggregate pro rata contractual purchase price of approximately $179.1 million, representing (i) $107.7 million of wholly owned acquisitions; and (ii) $71.4 million of the VA Portfolio acquisitions at the Company's pro rata share. As of the date of this release, reflecting the completed sale of nine of the 10 assets in the Disposition Portfolio, Easterly owns, directly or through the JV, 86 properties totaling 8.6 million square feet.

Assuming the Company uses gross proceeds from the sale of the Disposition Portfolio to pay off outstanding debt, as of September 30, 2022, the Company's pro forma outstanding debt would have a weighted average maturity of 6.1 years and a weighted average interest rate of 3.6%. Easterly’s pro forma Net Debt to total enterprise value would be 41.7% and its pro forma Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio would be reduced from 7.4x to 6.9x.

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, 2022

Related, in part, to the Portfolio Disposition, the Company is lowering its guidance for 2022 FFO per share on a fully diluted basis to a range of $1.26 - $1.28.

	Low
Net income (loss) per share – fully diluted basis	$	0.32	0.34
Plus: real estate depreciation and amortization	$	0.94	0.94
FFO per share – fully diluted basis	$	1.26	1.28

This guidance assumes (i) no further acquisitions beyond the approximately $107.7 million of wholly owned acquisitions completed year to date, (ii) the closing of properties in the VA Portfolio totaling approximately $145.0 million at the Company’s pro rata share, (iii) the sale of the final property in the Disposition Portfolio, and (iv) no additional material development related investment in 2022.

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. 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.

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.

Funds From Operations, as Adjusted (FFO, as Adjusted) adjusts FFO to present an alternative measure of our operating performance, which, when applicable, excludes the impact of acquisition costs, straight-line rent, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), non-cash interest expense, non-cash compensation, depreciation of non-real estate assets, other non-cash items, and the unconsolidated real estate venture’s allocated share of these adjustments. By excluding these income and expense items from FFO, as Adjusted, the Company believes it provides useful information as these items have no cash impact. In addition, by excluding acquisition related costs the Company believes FFO, as Adjusted provides useful information that is comparable across periods and more accurately reflects the operating performance of the Company’s properties. Certain prior year amounts have been updated to conform to the current year FFO, as Adjusted definition.

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 Q3 2022 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 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 November 1, 2022, to review the third quarter 2022 performance, discuss recent events and conduct a question-and-answer session. The number to call is 1-877-407-9716 (domestic) and 1-201-493-6779 (international). A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available through November 15, 2022, by dialing 844-512-2921 (domestic) and 1-412-317-6671 (international) and entering the passcode 13733383. Please note that the full text of the press release and supplemental information package are 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

Supervisory 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 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; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; loss of key personnel; the continuing adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies and on our financial condition and results of operations; 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 to 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; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (SEC) on February 28, 2022, in the “Risk Factors” section of our Form 10-Q for the quarter ended September 30, 2022, to be filed with the SEC on or about November 1, 2022, 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.

Balance Sheet

(Unaudited, in thousands, except share amounts)

			December 31, 2021
Assets
Real estate properties, net	2,463,961		$	2,399,188
Cash and cash equivalents	11,032			11,132
Restricted cash	10,462			9,011
Tenant accounts receivable	60,250			58,733
Investment in unconsolidated real estate venture	199,338			131,840
Intangible assets, net	178,327			186,307
Interest rate swaps	4,515			-
Prepaid expenses and other assets	33,765			29,901
Total assets	2,961,650		$	2,826,112
Liabilities
Revolving credit facility	177,750			14,500
Term loan facilities, net	248,879			248,579
Notes payable, net	695,935			695,589
Mortgage notes payable, net	247,969			252,421
Intangible liabilities, net	19,139			19,718
Deferred revenue	85,510			87,134
Interest rate swaps	-			5,700
Accounts payable, accrued expenses and other liabilities	67,673			60,890
Total liabilities	1,542,855			1,384,531
Equity
Common stock, par value 0.01, 200,000,000 shares authorized, 90,814,021 and 90,147,868 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	908			901
Additional paid-in capital	1,622,628			1,604,712
Retained earnings	77,203			62,023
Cumulative dividends	(451,917	)		(379,895	)
Accumulated other comprehensive income (loss)	3,987			(5,072	)
Total stockholders' equity	1,252,809			1,282,669
Non-controlling interest in Operating Partnership	165,986			158,912
Total equity	1,418,795			1,441,581
Total liabilities and equity	2,961,650		$	2,826,112

All values are in US Dollars.

Income Statement

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

	Three Months Ended						Nine Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Revenues
Rental income	$	72,643		$	67,439		$	214,238		$	197,713
Tenant reimbursements		1,616			1,527			3,676			3,746
Asset management income		377			-			942			-
Other income		405			642			1,244			1,764
Total revenues		75,041			69,608			220,100			203,223
Expenses
Property operating		17,802			15,188			48,811			41,578
Real estate taxes		8,177			7,626			23,854			22,465
Depreciation and amortization		25,050			22,765			73,552			67,615
Acquisition costs		275			518			939			1,488
Corporate general and administrative		5,870			5,893			17,819			17,469
Total expenses		57,174			51,990			164,975			150,615
Other income (expense)
Income from unconsolidated real estate venture		830			-			2,286			-
Interest expense, net		(12,408	)		(9,353	)		(34,729	)		(27,739	)
Gain on the sale of operating property		-			777			-			1,307
Impairment loss		(5,540	)		-			(5,540	)		-
Net income		749			9,042			17,142			26,176
Non-controlling interest in Operating Partnership		(107	)		(1,065	)		(1,962	)		(3,007	)
Net income available to Easterly Government
Properties, Inc.	$	642		$	7,977		$	15,180		$	23,169
Net income available to Easterly Government
Properties, Inc. per share:
Basic	$	0.01		$	0.09		$	0.16		$	0.27
Diluted	$	0.01		$	0.09		$	0.16		$	0.27
Weighted-average common shares outstanding:
Basic		90,772,706			83,961,693			90,560,471			83,306,654
Diluted		91,119,372			84,472,257			90,886,108			83,774,752
Net income, per share - fully diluted basis	$	0.01		$	0.09		$	0.17		$	0.28
Weighted average common shares outstanding -
fully diluted basis		102,848,357			95,275,184			102,315,465			94,205,897

EBITDA, FFO and CAD

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

	Three Months Ended						Nine Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net income	$	749		$	9,042		$	17,142		$	26,176
Depreciation and amortization		25,050			22,765			73,552			67,615
Interest expense		12,408			9,353			34,729			27,739
Tax expense		121			86			346			397
Gain on the sale of operating property		-			(777	)		-			(1,307	)
Impairment loss		5,540			-			5,540			-
Unconsolidated real estate venture allocated share of above adjustments		1,395			-			3,503			-
EBITDA	$	45,263		$	40,469		$	134,812		$	120,620
Pro forma adjustments(1)		164
Pro forma EBITDA	$	45,427
Pro forma adjustments for the Disposition Portfolio Properties(2)		(3,745	)
Pro forma EBITDA, as Adjusted	$	41,682
	Three Months Ended						Nine Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net income	$	749		$	9,042		$	17,142		$	26,176
Depreciation of real estate assets		24,802			22,741			72,810			67,561
Gain on the sale of operating property		-			(777	)		-			(1,307	)
Impairment loss		5,540			-			5,540			-
Unconsolidated real estate venture allocated share of above adjustments		1,347			-			3,352			-
FFO	$	32,438		$	31,006		$	98,844		$	92,430
Adjustments to FFO:
Acquisition costs		275			518			939			1,488
Straight-line rent and other non-cash adjustments		1,090			(1,580	)		559			(4,317	)
Amortization of above-/below-market leases		(769	)		(1,058	)		(2,373	)		(3,569	)
Amortization of deferred revenue		(1,472	)		(1,398	)		(4,313	)		(4,217	)
Non-cash interest expense		235			380			695			1,107
Non-cash compensation		1,625			1,333			4,891			3,700
Depreciation of non-real estate assets		248			24			742			54
Unconsolidated real estate venture allocated share of above adjustments		(374	)		-			(1,051	)		-
FFO, as Adjusted	$	33,296		$	29,225		$	98,933		$	86,676
FFO, per share - fully diluted basis	$	0.32		$	0.33		$	0.97		$	0.98
FFO, as Adjusted, per share - fully diluted basis	$	0.32		$	0.31		$	0.97		$	0.92
FFO, as Adjusted	$	33,296		$	29,225		$	98,933		$	86,676
Acquisition costs		(275	)		(518	)		(939	)		(1,488	)
Principal amortization		(1,314	)		(1,062	)		(3,942	)		(2,948	)
Maintenance capital expenditures		(2,217	)		(1,293	)		(5,123	)		(6,305	)
Contractual tenant improvements		(961	)		(241	)		(2,089	)		(2,168	)
Unconsolidated real estate venture allocated share of above adjustments		-			-			-			-
Cash Available for Distribution (CAD)	$	28,529		$	26,111		$	86,840		$	73,767
Weighted average common shares outstanding - fully diluted basis		102,848,357			95,275,184			102,315,465			94,205,897

1 Pro forma assuming a full quarter of operations from the two properties acquired in the third quarter of 2022.

2 Pro forma assuming a full quarter of operations without the nine properties disposed of and one property expected to be disposed of subsequent to the third quarter of 2022 (the "Disposition Portfolio Properties")

Net Debt and Adjusted Net Debt

(Unaudited, in thousands)

	September 30, 2022
Total Debt(1)	$	1,375,266
Less: Cash and cash equivalents		(11,226	)
Net Debt	$	1,364,040
Less: Adjustment for development projects(2)		(12,648	)
Adjusted Net Debt	$	1,351,392
Disposition Pro Forma Debt Statistics(3)	September 30, 2022
Total Debt(1)	$	1,375,266
Less: Cash and cash equivalents		(11,226	)
Net Debt	$	1,364,040
Less: Gross proceeds from the Disposition Portfolio Properties(3)		(205,320	)
Pro Forma Net Debt	$	1,158,720
Less: Adjustment for development(2)		(12,648	)
Pro Forma Adjusted Net Debt	$	1,146,072

1 Excludes unamortized premiums / discounts and deferred financing fees.

2 See definition of Adjusted Net Debt on Page 5.

3 The Company intends to use the gross proceeds from the sale of the ten Disposition Portfolio Properties to extinguish the secured mortgage debt at MEPCOM - Jacksonville and pay off outstanding debt on the Company's revolving credit facility.

EX-99.2

Exhibit 99.2

Disclaimers

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; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; loss of key personnel; the continuing adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies and the financial condition and results of operations of the Company; 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 to 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; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission, or the SEC, on February 28, 2022, in the “Risk Factors” section of our Form 10-Q for the quarter ended September 30, 2022, to be filed with the SEC on or about November 1, 2022 and the factors 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 quarter ended September 30, 2022 that will be released in our Form 10-Q to be filed with the SEC on or about November 1, 2022.

Supplemental Definitions

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 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.

Supplemental Definitions

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 our properties. NOI and Cash NOI should not be considered an alternative to net income as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions. Certain prior year amounts have been updated to conform to the current year Cash NOI definition.

Net Debt and Adjusted Net Debt. Net Debt represents our consolidated debt and our share of unconsolidated debt adjusted to exclude our share of unamortized premiums and discounts and deferred financing fees, less our 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.

Table of Contents
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
Corporate Information and Analyst Coverage
---
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	Supervisory VP,
Washington, DC 20006	Ticker	Investor Relations package	Investor Relations
202-595-9500	DEA		& Operations
Executive Team		Board of Directors
---	---	---	---
William Trimble III, CEO	Darrell Crate, Chairman	William Binnie, Lead Independent Director	Emil Henry Jr.
Michael Ibe, Vice-Chairman and EVP	Meghan Baivier, CFO & COO	Darrell Crate	Michael Ibe
Mark Bauer, EVP	Ronald Kendall, EVP	Cynthia Fisher	Tara Innes
Andrew Pulliam, EVP	Allison Marino, CAO	Scott Freeman	William Trimble III
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
Jonathan Petersen	Michael R. Lewis	Merrill Ross
212-284-1705	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.

Executive Summary<br><br>(In thousands, except share and per share amounts)
Outstanding Classes of Stock and Partnership Units - Fully Diluted Basis	At September 30, 2022			Earnings		Three months ended September 30, 2021
---	---	---	---	---	---	---	---
Common shares		90,772,706		Net income available to Easterly Government Properties, Inc.	642	$	7,977
Unvested restricted shares		41,315		Net income available to Easterly Government Properties, Inc.
Common partnership and vested LTIP units		12,032,018		per share:
Total - fully diluted basis		102,846,039		Basic	0.01	$	0.09
				Diluted	0.01	$	0.09
Market Capitalization	At September 30, 2022			Net income	749	$	9,042
Price of Common Shares	$	15.77		Net income, per share - fully diluted basis	0.01	$	0.09
Total equity market capitalization - fully diluted basis	$	1,621,882		Funds From Operations (FFO)	32,438	$	31,006
Net Debt		1,364,040		FFO, per share - fully diluted basis	0.32	$	0.33
Total enterprise value	$	2,985,922
				FFO, as Adjusted	33,296	$	29,225
				FFO, as Adjusted, per share - fully diluted basis	0.32	$	0.31
Ratios	At September 30, 2022
Net debt to total enterprise value		45.7	%	Cash Available for Distribution (CAD)	28,529	$	26,111
Net debt to annualized quarterly EBITDA		7.5	x
Adjusted Net Debt to annualized quarterly pro forma EBITDA		7.4	x	Liquidity
Cash interest coverage ratio		3.7	x	Cash and cash equivalents		$	11,226
Cash fixed charge coverage ratio		3.4	x	Available under 450 million senior unsecured revolving credit facility(1)		$	272,125

All values are in US Dollars.

(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.

Balance Sheets<br><br>(Unaudited, in thousands, except share amounts)
			December 31, 2021
---	---	---	---	---	---
Assets
Real estate properties, net	2,463,961		$	2,399,188
Cash and cash equivalents	11,032			11,132
Restricted cash	10,462			9,011
Tenant accounts receivable	60,250			58,733
Investment in unconsolidated real estate venture	199,338			131,840
Intangible assets, net	178,327			186,307
Interest rate swaps	4,515			-
Prepaid expenses and other assets	33,765			29,901
Total assets	2,961,650		$	2,826,112
Liabilities
Revolving credit facility	177,750			14,500
Term loan facilities, net	248,879			248,579
Notes payable, net	695,935			695,589
Mortgage notes payable, net	247,969			252,421
Intangible liabilities, net	19,139			19,718
Deferred revenue	85,510			87,134
Interest rate swaps	-			5,700
Accounts payable, accrued expenses and other liabilities	67,673			60,890
Total liabilities	1,542,855			1,384,531
Equity
Common stock, par value 0.01, 200,000,000 shares authorized, 90,814,021 and 90,147,868 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	908			901
Additional paid-in capital	1,622,628			1,604,712
Retained earnings	77,203			62,023
Cumulative dividends	(451,917	)		(379,895	)
Accumulated other comprehensive income (loss)	3,987			(5,072	)
Total stockholders' equity	1,252,809			1,282,669
Non-controlling interest in Operating Partnership	165,986			158,912
Total equity	1,418,795			1,441,581
Total liabilities and equity	2,961,650		$	2,826,112

All values are in US Dollars.

Income Statements<br><br>(Unaudited, in thousands, except share and per share amounts)
	Three Months Ended						Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Revenues
Rental income	$	72,643		$	67,439		$	214,238		$	197,713
Tenant reimbursements		1,616			1,527			3,676			3,746
Asset management income		377			-			942			-
Other income		405			642			1,244			1,764
Total revenues		75,041			69,608			220,100			203,223
Expenses
Property operating		17,802			15,188			48,811			41,578
Real estate taxes		8,177			7,626			23,854			22,465
Depreciation and amortization		25,050			22,765			73,552			67,615
Acquisition costs		275			518			939			1,488
Corporate general and administrative		5,870			5,893			17,819			17,469
Total expenses		57,174			51,990			164,975			150,615
Other income (expense)
Income from unconsolidated real estate venture		830			-			2,286			-
Interest expense, net		(12,408	)		(9,353	)		(34,729	)		(27,739	)
Gain on the sale of operating property		-			777			-			1,307
Impairment loss		(5,540	)		-			(5,540	)		-
Net income		749			9,042			17,142			26,176
Non-controlling interest in Operating Partnership		(107	)		(1,065	)		(1,962	)		(3,007	)
Net income available to Easterly Government
Properties, Inc.	$	642		$	7,977		$	15,180		$	23,169
Net income available to Easterly Government
Properties, Inc. per share:
Basic	$	0.01		$	0.09		$	0.16		$	0.27
Diluted	$	0.01		$	0.09		$	0.16		$	0.27
Weighted-average common shares outstanding:
Basic		90,772,706			83,961,693			90,560,471			83,306,654
Diluted		91,119,372			84,472,257			90,886,108			83,774,752
Net income, per share - fully diluted basis	$	0.01		$	0.09		$	0.17		$	0.28
Weighted average common shares outstanding -
fully diluted basis		102,848,357			95,275,184			102,315,465			94,205,897
Net Operating Income<br><br>(Unaudited, in thousands)
---
	Three Months Ended						Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net income	$	749		$	9,042		$	17,142		$	26,176
Depreciation and amortization		25,050			22,765			73,552			67,615
Acquisition costs		275			518			939			1,488
Corporate general and administrative		5,870			5,893			17,819			17,469
Interest expense		12,408			9,353			34,729			27,739
Gain on the sale of operating property		-			(777	)		-			(1,307	)
Impairment loss		5,540			-			5,540			-
Unconsolidated real estate venture allocated share of above adjustments		1,399			-			3,505			-
Net Operating Income		51,291			46,794			153,226			139,180
Adjustments to Net Operating Income:
Straight-line rent and other non-cash adjustments		1,068			(1,608	)		470			(4,407	)
Amortization of above-/below-market leases		(769	)		(1,058	)		(2,373	)		(3,569	)
Amortization of deferred revenue		(1,472	)		(1,398	)		(4,313	)		(4,217	)
Unconsolidated real estate venture allocated share of above adjustments		(413	)		-			(1,166	)		-
Cash Net Operating Income	$	49,705		$	42,730		$	145,844		$	126,987
EBITDA<br><br>(Unaudited, in thousands)
---
	Three Months Ended						Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021			September 30, 2022		September 30, 2021
Net income	$	749		$	9,042		$	17,142	$	26,176
Depreciation and amortization		25,050			22,765			73,552		67,615
Interest expense		12,408			9,353			34,729		27,739
Tax expense		121			86			346		397
Gain on the sale of operating property		-			(777	)		-		(1,307	)
Impairment loss		5,540			-			5,540		-
Unconsolidated real estate venture allocated share of above adjustments		1,395			-			3,503		-
EBITDA	$	45,263		$	40,469		$	134,812	$	120,620
Pro forma adjustments(1)		164
Pro forma EBITDA	$	45,427
Pro forma adjustments for the Disposition Portfolio Properties(2)		(3,745	)
Pro forma EBITDA, as Adjusted	$	41,682

(1) Pro forma assuming a full quarter of operations from the two properties acquired in the third quarter of 2022

(2) Pro forma assuming a full quarter of operations without the nine properties disposed of and one property expected to be disposed of subsequent to the third quarter of 2022 (the "Disposition Portfolio Properties")

FFO and CAD<br><br>(Unaudited, in thousands, except share and per share amounts)
	Three Months Ended						Nine Months Ended
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net income	$	749		$	9,042		$	17,142		$	26,176
Depreciation of real estate assets		24,802			22,741			72,810			67,561
Gain on the sale of operating property		-			(777	)		-			(1,307	)
Impairment loss		5,540			-			5,540			-
Unconsolidated real estate venture allocated share of above adjustments		1,347			-			3,352			-
FFO	$	32,438		$	31,006		$	98,844		$	92,430
Adjustments to FFO:
Acquisition costs		275			518			939			1,488
Straight-line rent and other non-cash adjustments		1,090			(1,580	)		559			(4,317	)
Amortization of above-/below-market leases		(769	)		(1,058	)		(2,373	)		(3,569	)
Amortization of deferred revenue		(1,472	)		(1,398	)		(4,313	)		(4,217	)
Non-cash interest expense		235			380			695			1,107
Non-cash compensation		1,625			1,333			4,891			3,700
Depreciation of non-real estate assets		248			24			742			54
Unconsolidated real estate venture allocated share of above adjustments		(374	)		-			(1,051	)		-
FFO, as Adjusted	$	33,296		$	29,225		$	98,933		$	86,676
FFO, per share - fully diluted basis	$	0.32		$	0.33		$	0.97		$	0.98
FFO, as Adjusted, per share - fully diluted basis	$	0.32		$	0.31		$	0.97		$	0.92
FFO, as Adjusted	$	33,296		$	29,225		$	98,933		$	86,676
Acquisition costs		(275	)		(518	)		(939	)		(1,488	)
Principal amortization		(1,314	)		(1,062	)		(3,942	)		(2,948	)
Maintenance capital expenditures		(2,217	)		(1,293	)		(5,123	)		(6,305	)
Contractual tenant improvements		(961	)		(241	)		(2,089	)		(2,168	)
Unconsolidated real estate venture allocated share of above adjustments		-			-			-			-
Cash Available for Distribution (CAD)	$	28,529		$	26,111		$	86,840		$	73,767
Weighted average common shares outstanding - fully diluted basis		102,848,357			95,275,184			102,315,465			94,205,897
Unconsolidated Real Estate Venture<br><br>(Unaudited, in thousands)
---
Balance Sheet Information	Balance Sheet		Easterly's Share(2)
---	---	---	---	---
	September 30, 2022		September 30, 2022
Real estate properties - net	$	313,768	$	166,297
Total assets		384,884		203,989
Total liabilities		9,407		4,986
Total preferred stockholders' equity		75		40
Total common stockholders' equity		375,402		198,963
Basis difference(1)		-		375
Total equity	$	375,477	$	199,338

(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.

Unconsolidated Real Estate Venture (Cont.)<br><br>(Unaudited, in thousands)
Income Statement Information	Three Months Ended			Easterly's Share(1)			Nine Months Ended			Easterly's Share(1)
---	---	---	---	---	---	---	---	---	---	---	---	---
	September 30, 2022			September 30, 2022			September 30, 2022			September 30, 2022
Revenues
Rental income	$	7,136		$	3,782		$	17,798		$	9,432
Other income		-			-			1			1
Total Revenues		7,136			3,782			17,799			9,433
Operating expenses
Property operating		1,371			727			3,038			1,610
Real estate taxes		1,181			626			2,892			1,533
Depreciation and amortization		2,572			1,363			6,417			3,401
Asset management fees		377			200			942			499
Corporate general and administrative		27			14			74			39
Total expenses		5,528			2,930			13,363			7,082
Other expenses
Interest expense - net		(41	)		(22	)		(123	)		(65	)
Net income	$	1,567		$	830		$	4,313		$	2,286
Depreciation and amortization		2,572			1,363			6,417			3,401
Interest expense - net		41			22			123			65
Tax expense		20			10			70			37
EBITDA	$	4,200		$	2,225		$	10,923		$	5,789
Pro forma adjustments(2)		70			37
Pro forma EBITDA	$	4,270		$	2,262
Net income	$	1,567		$	830		$	4,313		$	2,286
Depreciation of real estate assets		2,541			1,347			6,324			3,352
FFO	$	4,108		$	2,177		$	10,637		$	5,638
Adjustments to FFO:
Straight-line rent and other non-cash adjustments		(778	)		(413	)		(2,200	)		(1,166	)
Non-cash interest expense		41			22			123			65
Depreciation of non-real estate assets		31			17			93			50
FFO, as Adjusted	$	3,402		$	1,803		$	8,653		$	4,587
Cash Available for Distribution (CAD)	$	3,402		$	1,803		$	8,653		$	4,587

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

(2) Pro forma assuming a full quarter of operations from the one unconsolidated joint venture property acquired in the third quarter of 2022.

Debt Schedules<br><br>(Unaudited, in thousands)
Debt Instrument	Maturity Date	September 30, 2022<br>Interest Rate	September 30, 2022<br>Balance(1)		September 30, 2022<br>Percent of <br>Total Indebtedness
---	---	---	---	---	---
Unsecured debt
Revolving Credit facility	23-Jul-25(2)	LIBOR + 135bps	$	177,750	12.9%
2016 Term Loan facility	29-Mar-24	2.77%(3)		100,000	7.3%
2018 Term Loan facility	23-Jul-26	4.01%(4)		150,000	10.9%
2017 Series A Senior Notes	25-May-27	4.05%		95,000	6.9%
2017 Series B Senior Notes	25-May-29	4.15%		50,000	3.6%
2017 Series C Senior Notes	25-May-32	4.30%		30,000	2.2%
2019 Series A Senior Notes	12-Sep-29	3.73%		85,000	6.2%
2019 Series B Senior Notes	12-Sep-31	3.83%		100,000	7.3%
2019 Series C Senior Notes	12-Sep-34	3.98%		90,000	6.5%
2021 Series A Senior Notes	14-Oct-28	2.62%		50,000	3.6%
2021 Series B Senior Notes	14-Oct-30	2.89%		200,000	14.5%
Total unsecured debt	6 years	3.65%	$	1,127,750	81.9%
	(wtd-avg maturity)	(wtd-avg rate)
Secured mortgage debt
DEA - Pleasanton	18-Oct-23	LIBOR + 150bps	$	15,700	1.1%
VA - Golden	1-Apr-24	5.00%		8,692	0.6%
MEPCOM - Jacksonville	14-Oct-25	4.41%		5,858	0.4%
USFS II - Albuquerque	14-Jul-26	4.46%		13,879	1.0%
ICE - Charleston	15-Jan-27	4.21%		13,792	1.0%
VA - Loma Linda	6-Jul-27	3.59%		127,500	9.3%
CBP - Savannah	10-Jul-33	3.40%		10,595	0.9%
USCIS - Kansas City	6-Aug-24	3.68%		51,500	3.8%
Total secured mortgage debt	3.9 years	3.78%	$	247,516	18.1%
	(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) Calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 2.77% annually based on the Company’s current consolidated leverage ratio.

(4) Calculated based on four interest rate swaps with an aggregate notional value of $150.0 million, which effectively fix the interest rate at 4.01% annually based on the Company’s current consolidated leverage ratio. The four interest rate swaps mature on June 19, 2023, which is not coterminous with the maturity date of 2018 term loan facility.

Debt Schedules (Cont.)<br><br>(Unaudited, in thousands)
Debt Statistics	September 30, 2022				September 30, 2022
---	---	---	---	---	---	---	---
Variable rate debt - unhedged	$	193,450		% Variable rate debt - unhedged		14.1	%
Fixed rate debt		1,181,816		% Fixed rate debt		85.9	%
Total Debt(1)	$	1,375,266
Less: Cash and cash equivalents		(11,226	)	Weighted average maturity	5.6 years
Net Debt	$	1,364,040		Weighted average interest rate		3.7	%
Less: Adjustment for development(2)		(12,648	)
Adjusted Net Debt	$	1,351,392
Disposition Pro Forma Debt Statistics(3)	September 30, 2022
Total Debt(1)	$	1,375,266
Less: Cash and cash equivalents		(11,226	)
Net Debt	$	1,364,040
Less: Gross proceeds from the Disposition Portfolio Properties(3)		(205,320	)
Pro Forma Net Debt	$	1,158,720
Less: Adjustment for development(2)		(12,648	)
Pro Forma Adjusted Net Debt	$	1,146,072

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

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

(3) The Company intends to use the gross proceeds from the sale of the ten Disposition Portfolio Properties to extinguish the secured mortgage debt at MEPCOM - Jacksonville and pay off outstanding debt on the Company's revolving credit facility.

Debt Maturities<br><br>(Unaudited, in thousands)
	Secured Debt				Unsecured Debt
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Year	Scheduled<br>Amortization		Scheduled<br>Maturities		Scheduled<br>Maturities		Total		Percentage of <br>Debt Maturing			Weighted Average<br>Interest Rate of<br>Scheduled Maturities
2022	$	1,355	$	-	$	-	$	1,355		0.1	%
2023		5,585		15,700		-		21,285		1.5	%		4.06	%
2024		5,731		59,895		100,000		165,626		12.1	%		3.18	%
2025		5,633		1,917		177,750		185,300		13.5	%		4.23	%
2026		3,686		6,368		150,000		160,054		11.6	%		4.05	%
2027		1,093		134,640		95,000		230,733		16.8	%		3.81	%
2028		983		-		50,000		50,983		3.7	%		2.62	%
2029		1,016		-		135,000		136,016		9.9	%		3.89	%
2030		1,049		-		200,000		201,049		14.6	%		2.89	%
2031		1,081		-		100,000		101,081		7.3	%		3.83	%
2032		1,116		-		30,000		31,116		2.3	%		4.30	%
2033		668		-		-		668		0.1	%		-
2034		-		-		90,000		90,000		6.5	%		3.98	%
Total	$	28,996	$	218,520	$	1,127,750	$	1,375,266		100.0	%

Leased Operating Property Overview<br><br>(As of September 30, 2022, unaudited)
Property Name	Location	Property Type	Tenant<br>Lease<br>Expiration<br>Year	Year Built /<br>Renovated	Leased<br>Square<br>Feet		Annualized<br>Lease<br>Income		Percentage <br>of Total<br>Annualized<br>Lease<br>Income			Annualized<br>Lease<br>Income per<br>Leased<br>Square Foot
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Wholly Owned U.S. Government Leased Properties
VA - Loma Linda	Loma Linda, CA	Outpatient Clinic	2036	2016		327,614	$	16,444,222		5.2	%	$	50.19
USCIS - Kansas City	Lee's Summit, MO	Office/Warehouse	2023 - 2042(1)	1969 / 1999		491,226		12,026,995		3.8	%		24.48
JSC - Suffolk	Suffolk, VA	Office	2028(2)	1993 / 2004		403,737		8,381,901		2.7	%		20.76
IRS - Fresno	Fresno, CA	Office	2033	2003		180,481		6,972,995		2.2	%		38.64
Various GSA - Portland	Portland, OR	Office	2022 - 2039(3)	2002		218,798		6,953,863		2.2	%		31.78
Various GSA - Chicago	Des Plaines, IL	Office	2023	1971 / 1999		202,185		6,812,395		2.2	%		33.69
FBI - Salt Lake	Salt Lake City, UT	Office	2032	2012		169,542		6,802,806		2.2	%		40.12
Various GSA - Buffalo	Buffalo, NY	Office	2025 - 2039	2004		273,678		6,691,883		2.1	%		24.45
VA - San Jose	San Jose, CA	Outpatient Clinic	2038	2018		90,085		5,725,957		1.8	%		63.56
EPA - Lenexa	Lenexa, KS	Office	2027(2)	2007 / 2012		169,585		5,603,247		1.8	%		33.04
FBI - San Antonio	San Antonio, TX	Office	2025	2007		148,584		5,241,403		1.7	%		35.28
PTO - Arlington	Arlington, VA	Office	2035	2009		190,546		5,154,770		1.6	%		27.05
FBI - Tampa	Tampa, FL	Office	2040	2005		138,000		5,057,412		1.6	%		36.65
FDA - Alameda	Alameda, CA	Laboratory	2039	2019		69,624		4,834,488		1.5	%		69.44
FBI / DEA - El Paso	El Paso, TX	Office/Warehouse	2028	1998 - 2005		203,683		4,682,935		1.5	%		22.99
FEMA - Tracy	Tracy, CA	Warehouse	2038	2018		210,373		4,646,467		1.5	%		22.09
FBI - Omaha	Omaha, NE	Office	2024	2009		112,196		4,548,028		1.4	%		40.54
TREAS - Parkersburg	Parkersburg, WV	Office	2041	2004 / 2006		182,500		4,302,091		1.4	%		23.57
EPA - Kansas City	Kansas City, KS	Laboratory	2042	2003		71,979		4,291,659		1.4	%		59.62
VA - South Bend	Mishakawa, IN	Outpatient Clinic	2032	2017		86,363		4,155,805		1.3	%		48.12
FDA - Lenexa	Lenexa, KS	Laboratory	2040	2020		59,690		3,990,453		1.3	%		66.85
FBI - Pittsburgh	Pittsburgh, PA	Office	2027	2001		100,054		3,981,726		1.3	%		39.80
VA - Mobile	Mobile, AL	Outpatient Clinic	2033	2018		79,212		3,908,885		1.2	%		49.35
USCIS - Lincoln	Lincoln, NE	Office	2025	2005		137,671		3,887,343		1.2	%		28.24
DOI - Billings(8)	Billings, MT	Office/Warehouse	2033	2013		149,110		3,871,654		1.2	%		25.97
FBI - New Orleans	New Orleans, LA	Office	2029(4)	1999 / 2006		137,679		3,802,565		1.2	%		27.62
DOT - Lakewood(8)	Lakewood, CO	Office	2024	2004		122,225		3,668,047		1.2	%		30.01
FBI - Knoxville	Knoxville, TN	Office	2025	2010		99,130		3,579,291		1.1	%		36.11
FBI - Birmingham	Birmingham, AL	Office	2042	2005		96,278		3,433,823		1.1	%		35.67
ICE - Charleston	North Charleston, SC	Office	2027	1994 / 2012		65,124		3,301,629		1.0	%		50.70
VA - Chico	Chico, CA	Outpatient Clinic	2034	2019		51,647		3,282,987		1.0	%		63.57
FBI - Richmond	Richmond, VA	Office	2041	2001		96,607		3,252,338		1.0	%		33.67
USFS II - Albuquerque	Albuquerque, NM	Office	2026(2)	2011		98,720		3,249,952		1.0	%		32.92
FBI - Little Rock	Little Rock, AR	Office	2041	2001		102,377		3,189,062		1.0	%		31.15
FDA - College Park(8)	College Park, MD	Laboratory	2029	2004		80,677		3,107,988		1.0	%		38.52
USCIS - Tustin	Tustin, CA	Office	2034	1979 / 2019		66,818		3,102,375		1.0	%		46.43
USFS I - Albuquerque	Albuquerque, NM	Office	2026	2006		92,455		3,100,080		1.0	%		33.53
Leased Operating Property Overview (Cont.)<br><br>(As of September 30, 2022, unaudited)
---
Property Name	Location	Property Type	Tenant<br>Lease<br>Expiration<br>Year	Year Built /<br>Renovated	Leased<br>Square<br>Feet		Annualized<br>Lease<br>Income		Percentage <br>of Total<br>Annualized<br>Lease<br>Income			Annualized<br>Lease<br>Income per<br>Leased<br>Square Foot
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Wholly Owned U.S. Government Leased Properties (Cont.)
OSHA - Sandy(8)	Sandy, UT	Laboratory	2024(5)	2003		75,000		3,077,661		1.0	%		41.04
DEA - Vista	Vista, CA	Laboratory	2035	2002		52,293		3,067,840		1.0	%		58.67
VA - Indianapolis	Brownsburg, IN	Outpatient Clinic	2041	2021		80,000		2,958,386		0.9	%		36.98
VA - Orange	Orange, CT	Outpatient Clinic	2034	2019		56,330		2,937,172		0.9	%		52.14
JUD - Del Rio	Del Rio, TX	Courthouse/Office	2024	1992 / 2004		89,880		2,792,219		0.9	%		31.07
ICE - Albuquerque	Albuquerque, NM	Office	2027	2011		71,100		2,789,429		0.9	%		39.23
DEA - Dallas Lab	Dallas, TX	Laboratory	2038	2001		49,723		2,716,354		0.9	%		54.63
DEA - Pleasanton	Pleasanton, CA	Laboratory	2035	2015		42,480		2,716,215		0.9	%		63.94
JUD - El Centro	El Centro, CA	Courthouse/Office	2034	2004		43,345		2,702,496		0.9	%		62.35
FBI - Mobile	Mobile, AL	Office	2029(2)	2001		76,112		2,682,150		0.9	%		35.24
FBI - Albany	Albany, NY	Office	2036	1998		69,476		2,677,247		0.9	%		38.53
SSA - Charleston	Charleston, WV	Office	2024(2)	1959 / 2000		110,000		2,660,225		0.8	%		24.18
DEA - Sterling	Sterling, VA	Laboratory	2037	2001		49,692		2,607,909		0.8	%		52.48
DEA - Upper Marlboro	Upper Marlboro, MD	Laboratory	2037	2002		50,978		2,522,977		0.8	%		49.49
USAO - Louisville	Louisville, KY	Office	2031	2011		60,000		2,506,169		0.8	%		41.77
TREAS - Birmingham	Birmingham, AL	Office	2029	2014		83,676		2,487,887		0.8	%		29.73
DHA - Aurora(8)	Aurora, CO	Office	2034	1998 / 2018		101,285		2,392,674		0.8	%		23.62
NARA - Broomfield	Broomfield, CO	Office/Warehouse	2032	2012		161,730		2,346,885		0.7	%		14.51
JUD - Charleston	Charleston, SC	Courthouse/Office	2040	1999		52,339		2,333,282		0.7	%		44.58
Various GSA - Cleveland	Brooklyn Heights, OH	Office	2028 - 2040(5)	1981 / 2021		61,384		2,253,745		0.7	%		36.72
CBP - Savannah	Savannah, GA	Laboratory	2033	2013		35,000		2,234,261		0.7	%		63.84
DEA - Dallas	Dallas, TX	Office	2041	2001		71,827		2,215,883		0.7	%		30.85
MEPCOM - Jacksonville(8)	Jacksonville, FL	Office	2025	2010		30,000		2,215,374		0.7	%		73.85
DOE - Lakewood	Lakewood, CO	Office	2029	1999		115,650		2,126,332		0.7	%		18.39
NWS - Kansas City	Kansas City, MO	Office	2033(2)	1998 / 2020		94,378		2,114,807		0.7	%		22.41
JUD - Jackson	Jackson, TN	Courthouse/Office	2023(2)	1998		73,397		2,105,260		0.7	%		28.68
DEA - Santa Ana	Santa Ana, CA	Office	2024	2004		39,905		1,943,792		0.6	%		48.71
DEA - North Highlands	Sacramento, CA	Office	2033	2002		37,975		1,896,685		0.6	%		49.95
NPS - Omaha	Omaha, NE	Office	2024	2004		62,772		1,829,413		0.6	%		29.14
ICE - Otay	San Diego, CA	Office	2022 / 2027	2001		47,919		1,761,413		0.6	%		36.76
VA - Golden	Golden, CO	Office/Warehouse	2026	1996 / 2011		56,753		1,741,257		0.6	%		30.68
USCG - Martinsburg	Martinsburg, WV	Office	2027	2007		59,547		1,651,037		0.5	%		27.73
CBP - Sunburst(8)	Sunburst, MT	Office	2028	2008		33,000		1,646,988		0.5	%		49.91
JUD - Aberdeen	Aberdeen, MS	Courthouse/Office	2025	2005		46,979		1,552,938		0.5	%		33.06
VA - Charleston	North Charleston, SC	Warehouse	2040	2020		97,718		1,539,323		0.5	%		15.75
GSA - Clarksburg	Clarksburg, WV	Office	2024(2)	1999		63,750		1,499,446		0.5	%		23.52
DEA - Birmingham	Birmingham, AL	Office	2023	2005		35,616		1,423,869		0.5	%		39.98
Leased Operating Property Overview (Cont.)<br><br>(As of September 30, 2022, unaudited)
---
Property Name	Location	Property Type	Tenant<br>Lease<br>Expiration<br>Year	Year Built /<br>Renovated	Leased<br>Square<br>Feet		Annualized<br>Lease<br>Income		Percentage <br>of Total<br>Annualized<br>Lease<br>Income			Annualized<br>Lease<br>Income per<br>Leased<br>Square Foot
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Wholly Owned U.S. Government Leased Properties (Cont.)
DEA - Albany	Albany, NY	Office	2025	2004		31,976		1,380,195		0.4	%		43.16
USAO - Springfield	Springfield, IL	Office	2038	2002		43,600		1,372,735		0.4	%		31.48
DEA - Riverside	Riverside, CA	Office	2032	1997		34,354		1,280,417		0.4	%		37.27
JUD - Council Bluffs	Council Bluffs, IA	Courthouse/Office	2041(5)	2021		28,900		1,272,798		0.4	%		44.04
SSA - Dallas	Dallas, TX	Office	2035	2005		27,200		1,058,859		0.3	%		38.93
HRSA - Baton Rouge(8)	Baton Rouge, LA	Office	2040	1981 / 2020		27,569		965,676		0.3	%		35.03
VA - Baton Rouge(8)	Baton Rouge, LA	Outpatient Clinic	2024	2004		30,000		823,488		0.3	%		27.45
ICE - Pittsburgh(8)	Pittsburgh, PA	Office	2028 / 2032	2004		25,369		803,239		0.3	%		31.66
JUD - South Bend	South Bend, IN	Courthouse/Office	2027	1996 / 2011		30,119		782,994		0.2	%		26.00
ICE - Louisville	Louisville, KY	Office	2036	2011		17,420		647,615		0.2	%		37.18
DEA - San Diego	San Diego, CA	Warehouse	2032	1999		16,100		552,336		0.2	%		34.31
SSA - San Diego	San Diego, CA	Office	2032	2003		10,059		433,434		0.1	%		43.09
DEA - Bakersfield	Bakersfield, CA	Office	2038	2000		9,800		402,401		0.1	%		41.06
Subtotal						8,347,728	$	285,544,707		90.7	%	$	34.21
Wholly Owned Privately Leased Property
501 East Hunter Street - Lummus Corporation	Lubbock, TX	Warehouse/Distribution	2028(5)	2013		70,078		410,344		0.1	%		5.86
Subtotal						70,078	$	410,344		0.1	%	$	5.86
Wholly Owned Properties Total / Weighted Average						8,417,806	$	285,955,051		90.8	%	$	33.97
Leased Operating Property Overview (Cont.)<br><br>(As of September 30, 2022, unaudited)
---
Property Name	Location	Property Type	Tenant<br>Lease<br>Expiration<br>Year	Year Built /<br>Renovated	Leased<br>Square<br>Feet		Annualized<br>Lease<br>Income		Percentage <br>of Total<br>Annualized<br>Lease<br>Income			Annualized<br>Lease<br>Income per<br>Leased<br>Square Foot
---	---	---	---	---	---	---	---	---	---	---	---	---	---
U.S Government Leased to Unconsolidated Real Estate Venture
VA - San Antonio(6)	San Antonio, TX	Outpatient Clinic	2041	2021		226,148		9,802,802		3.1	%		43.35
VA - Chattanooga(6)	Chattanooga, TN	Outpatient Clinic	2035	2020		94,566		4,154,710		1.3	%		43.93
VA - Lubbock(6)(7)	Lubbock, TX	Outpatient Clinic	2040	2020		120,916		3,961,655		1.3	%		32.76
VA - Marietta(6)	Marietta, GA	Outpatient Clinic	2041	2021		76,882		3,795,065		1.2	%		49.36
VA - Birmingham(6)	Irondale, AL	Outpatient Clinic	2041	2021		77,128		3,105,255		1.0	%		40.26
VA - Columbus(6)	Columbus, GA	Outpatient Clinic	2042	2022		67,793		2,863,407		0.9	%		42.24
VA - Lenexa(6)	Lenexa, KS	Outpatient Clinic	2041	2021		31,062		1,298,203		0.4	%		41.79
Subtotal						694,495	$	28,981,097		9.2	%	$	41.73
Total / Weighted Average						9,112,301	$	314,936,148		100.0	%	$	34.56
Total / Weighted Average at Easterly's Share						8,785,887	$	301,315,032				$	34.30

(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. 123,826 square feet leased to four private tenants will expire between 2024-2025.

(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. 13,846 square feet leased to five private tenants will expire between 2022-2027. 4,846 square feet leased to the Department of Energy ("DOE") will expire on April 14, 2023 and contains two five-year renewal options.

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

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

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

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

(8) Disposition Portfolio Property

Tenants<br><br>(As of September 30, 2022, unaudited)
Tenant		Leased<br>Square Feet		Percentage<br>of Leased<br>Square Feet			Annualized<br>Lease Income		Percentage<br>of Total<br>Annualized<br>Lease<br>Income
---	---	---	---	---	---	---	---	---	---	---	---
U.S. Government
Department of Veteran Affairs ("VA")	15.1		1,761,461		19.4	%	$	75,118,998		23.8	%
Federal Bureau of Investigation ("FBI")	9.6		1,501,720		16.5	%		51,950,980		16.5	%
Drug Enforcement Administration ("DEA")	10.9		601,497		6.6	%		26,647,877		8.5	%
U.S. Citizenship and Immigration Services ("USCIS")	14.1		520,807		5.7	%		14,744,671		4.7	%
Judiciary of the U.S. ("JUD")	6.7		364,959		4.0	%		13,541,987		4.3	%
Food and Drug Administration ("FDA")	13.4		209,991		2.3	%		11,932,929		3.8	%
Immigration and Customs Enforcement ("ICE")	5.5		245,894		2.7	%		10,018,245		3.2	%
Environmental Protection Agency ("EPA")	9.5		241,564		2.7	%		9,894,906		3.1	%
U.S. Joint Staff Command ("JSC")	5.7		403,737		4.4	%		8,381,901		2.7	%
Internal Revenue Service ("IRS")	10.9		233,334		2.6	%		8,053,414		2.6	%
Bureau of the Fiscal Service ("BFS")	14.9		266,176		2.9	%		6,789,978		2.2	%
Federal Aviation Administration ("FAA")	1.1		194,540		2.1	%		6,547,118		2.1	%
U.S. Forest Service ("USFS")	3.7		191,175		2.1	%		6,350,032		2.0	%
Patent and Trademark Office ("PTO")	12.3		190,546		2.1	%		5,154,770		1.6	%
Social Security Administration ("SSA")	4.0		189,276		2.1	%		5,140,792		1.6	%
Federal Emergency Management Agency ("FEMA")	16.0		210,373		2.3	%		4,646,467		1.5	%
U.S. Attorney Office ("USAO")	11.3		110,008		1.2	%		4,029,614		1.3	%
Department of Transportation ("DOT")	1.9		129,659		1.4	%		3,924,829		1.2	%
Customs and Border Protection ("CBP")	8.5		68,000		0.7	%		3,881,249		1.2	%
Occupational Safety and Health Administration ("OSHA")	1.3		75,000		0.8	%		3,077,661		1.0	%
Defense Health Agency ("DHA")	11.6		101,285		1.1	%		2,392,674		0.8	%
National Archives and Records Administration ("NARA")	9.6		161,730		1.8	%		2,346,885		0.7	%
Department of Energy ("DOE")	6.8		120,496		1.3	%		2,246,152		0.7	%
Military Entrance Processing Command ("MEPCOM")	3.0		30,000		0.3	%		2,215,374		0.7	%
U.S. Department of Agriculture ("A")	4.9		67,902		0.7	%		2,132,111		0.7	%
National Weather Service ("NWS")	11.2		94,378		1.0	%		2,114,807		0.7	%
Bureau of Indian Affairs ("BIA")	9.8		78,184		0.9	%		2,090,033		0.7	%
National Park Service ("NPS")	1.7		62,772		0.7	%		1,829,413		0.6	%
Bureau of Reclamation ("BOR")	10.6		69,518		0.8	%		1,805,041		0.6	%

All values are in US Dollars.

Tenants (Cont.)<br><br>(As of September 30, 2022, unaudited)
Tenant	Weighted<br>Average<br>Remaining<br>Lease Term(1)		Leased<br>Square Feet		Percentage<br>of Leased<br>Square Feet			Annualized<br>Lease Income		Percentage<br>of Total<br>Annualized<br>Lease<br>Income
---	---	---	---	---	---	---	---	---	---	---	---	---
U.S. Government
General Services Administration - Other		3.0		55,807		0.6	%		1,741,825		0.6	%
U.S. Coast Guard ("USCG")		5.2		59,547		0.7	%		1,651,037		0.5	%
National Oceanic and Atmospheric Administration ("NOAA")		5.3		33,403		0.4	%		1,247,647		0.4	%
U.S. Army Corps of Engineers ("ACOE")		2.4		39,320		0.4	%		1,120,690		0.4	%
Small Business Administration ("SBA")		15.1		44,753		0.5	%		983,872		0.3	%
Health Resources and Services Administration ("HRSA")		17.8		27,569		0.3	%		965,676		0.3	%
Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF")		3.7		21,342		0.2	%		765,851		0.2	%
Federal Energy Regulatory Commission ("FERC")		16.9		6,214		0.1	%		245,540		0.1	%
Office of the Field Solicitor ("OFC")		10.6		4,526		0.0	%		117,518		0.0	%
Office of the Special Trustee for American Indians ("OST")		10.6		3,359		0.0	%		87,217		0.0	%
U.S. Marshals Service ("USMS")		4.3		1,054		0.0	%		49,293		0.0	%
Department of Labor ("DOL")		1.3		1,004		0.0	%		23,611		0.0	%
U.S. Probation Office ("USPO")		1.3		452		0.0	%		10,638		0.0	%
Subtotal		10.3		8,794,332		96.4	%	$	308,011,323		97.9	%
Private Tenants
Other Private Tenants		2.7		81,866		0.9	%	$	2,107,358		0.7	%
ExamOne		1.0		52,015		0.6	%	$	1,362,864		0.4	%
CVS Health		2.0		60,324		0.7	%	$	1,323,937		0.4	%
St. Luke's Health System		4.3		32,043		0.4	%	$	996,821		0.3	%
Providence Health & Services		2.9		21,643		0.2	%	$	723,501		0.2	%
Lummus Corporation		5.8		70,078		0.8	%	$	410,344		0.1	%
Subtotal		3.2		317,969		3.6	%	$	6,924,825		2.1	%
Total / Weighted Average		10.1		9,112,301		100.0	%	$	314,936,148		100.0	%

(1) Weighted based on leased square feet.

Lease Expirations<br><br>(As of September 30, 2022, unaudited)
Year of Lease Expiration	Number of <br>Leases <br>Expiring	Leased Square<br>Footage<br>Expiring		Percentage of<br>Total Leased Square<br>Footage<br>Expiring			Annualized <br>Lease Income<br>Expiring		Percentage of<br>Total Annualized<br>Lease Income<br>Expiring			Annualized<br>Lease Income<br>per Leased<br>Square Foot Expiring
---	---	---	---	---	---	---	---	---	---	---	---	---	---
2022	2		41,683		0.5	%	$	1,543,184		0.5	%	$	37.02
2023	11		437,753		4.8	%		13,523,681		4.3	%		30.89
2024	11		740,595		8.1	%		23,731,586		7.5	%		32.04
2025	15		660,128		7.2	%		22,652,412		7.2	%		34.32
2026	5		294,245		3.2	%		9,477,011		3.0	%		32.21
2027	9		506,510		5.6	%		18,494,025		5.9	%		36.51
2028	11		805,055		8.8	%		18,191,041		5.8	%		22.60
2029	5		493,794		5.4	%		14,206,922		4.5	%		28.77
2030	0		-		0.0	%		-		0.0	%		-
2031	2		100,502		1.1	%		4,042,792		1.3	%		40.23
Thereafter	59		5,032,036		55.3	%		189,073,494		60.0	%		37.57
Total / Weighted Average	130		9,112,301		100.0	%	$	314,936,148		100.0	%	$	34.56

Summary of Re/Development Projects<br><br>(As of September 30, 2022, unaudited, in thousands, except square feet)
Projects Under Construction(1)
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Property Name	Location		Property Type		Total Leased Square Feet		Lease Term		Anticipated Total Cost		Cost to Date		Total Lump-Sum Reimbursement		Anticipated Completion Date		Anticipated Lease Commencement
N/A		-		-		-		-	$	-	$	-	$	-		-		-
Projects in Design(2)
Property Name	Location		Property Type		Total Estimated Leased Square Feet		Lease Term		Cost to Date		Anticipated Completion Date		Anticipated Lease Commencement
FDA - Atlanta	Atlanta, GA		Laboratory			162,000	20-Year		$	31,620	2Q 2025		2Q 2025
Total						162,000			$	31,620
Projects Previously Completed with Outstanding Lump-Sum Reimbursements
Property Name	Location		Property Type		Total Leased Square Feet		Lease Term		Outstanding Lump-Sum Reimbursement(3)		Completion Date		Lease Commencement
N/A		-		-		-		-	$	-		-		-

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

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

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