Easterly Government Properties, Inc 8-K, filed Oct 26, 2026
Easterly Government Properties, Inc. (DEA)
About this 8-K
Easterly Government Properties, Inc filed this 8-K on October 26, 2026.
Easterly Government Properties, Inc. reported third-quarter net income of $5.7 million and Core FFO of $38.0 million, or $0.78 per diluted share, and approved a $0.45 per common share dividend payable November 20, 2026. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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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):
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Item 2.02 Results of Operations and Financial Condition.
On October 26, 2026, we issued a press release announcing our results of operations for the third quarter ended September 30, 2026. 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 October 26, 2026, to review our third quarter ended 2026 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 |
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99.2 |
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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 PROPERTIES, INC. |
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By: |
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/s/ Allison E. Marino |
Name: |
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Allison E. Marino |
Title: |
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Executive Vice President, Chief Financial Officer |
Date: October 26, 2026
Exhibit 99.1
EASTERLY GOVERNMENT PROPERTIES
REPORTS THIRD QUARTER 2026 RESULTS
WASHINGTON, D.C. – October 26, 2026 – 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 and its adjacent partners, today announced its results of operations for the quarter ended September 30, 2026.
Highlights for the Quarter Ended September 30, 2026:
“Despite continued volatility in the broader market, Easterly’s government-focused portfolio continues to provide stability and durability,” said Darrell Crate, President & CEO of Easterly Government Properties. “Our third quarter results reflect disciplined execution across the business and the strength of the platform we have built.”
Financial Results for the Nine Months Ended September 30, 2026:
Portfolio Operations
As of September 30, 2026, the Company or its joint venture owned 106 operating properties in the United States encompassing approximately 10.7 million leased square feet, including 93 operating properties that were leased primarily to U.S. Government tenant agencies, eight operating properties leased primarily to tenant agencies of a U.S. state or local government and five operating properties that were entirely leased to private tenants. In addition, the Company wholly owned three properties in development that the Company expects will encompass approximately 0.2 million leased square feet upon completion. The Company's operating portfolio was 98% leased.
The first project, the FDLE laboratory facility in Fort Myers, Florida was completed subsequent to quarter end and is leased to the Florida Department of Law Enforcement under a 25-year lease. The second development project, located in Flagstaff, Arizona, is currently under construction and, once complete, a 20-year lease with the GSA is expected to commence for the beneficial use of the United States Judiciary. The third project, located in Medford, Oregon, is currently under construction and, once complete, a 20-year lease with the GSA is expected to commence for the beneficial use of the United States Judiciary.
As of September 30, 2026, the portfolio had a weighted average age of 17.4 years, based upon the date properties were built or renovated-to-suit, and had a weighted average remaining lease term of 9.2 years.
Balance Sheet and Capital Markets Activity
As of September 30, 2026, the Company had total indebtedness of approximately $1.7 billion comprised of $16.1 million outstanding on its senior unsecured revolving credit facility, $100.0 million outstanding on its 2016 term loan facility, $200.0 million outstanding on its 2018 term loan facility, $200.0 million outstanding on its 2026 term loan facility, $1.0 billion of senior unsecured notes, and $142.3 million of mortgage debt (excluding unamortized premiums and discounts and deferred financing fees). The Company's outstanding debt had a weighted average maturity of 3.8 years and a weighted average interest rate of 4.6%. Further, the Company's Net Debt to total enterprise value was 59.6%, its Net Debt to annualized quarterly EBITDA ratio was 7.1x and its Adjusted Net Debt to annualized quarterly EBITDA ratio was 6.8x.
Dividend
On October 22, 2026, the Board of Directors of Easterly approved a cash dividend for the third quarter of 2026 in the amount of $0.45 per common share. The dividend will be payable November 20, 2026 to shareholders of record on November 5, 2026.
Subsequent Events
In October 2026, all significant construction activities were completed at the Florida Department of Law Enforcement laboratory facility in Fort Myers, Florida.
On October 22, 2026, the Company entered into four interest rate swaps which have an aggregate notional value of $200.0 million.
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, 2026
The Company is raising the lower end of its guidance for full-year 2026 Core FFO per share on a fully diluted basis at a range of $3.08 - $3.13.
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Low |
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High |
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Net income (loss) per share – fully diluted basis |
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$ |
0.24 |
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0.29 |
Plus: Company’s share of real estate depreciation and amortization |
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$ |
2.82 |
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2.82 |
FFO per share – fully diluted basis |
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$ |
3.06 |
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3.11 |
Plus: Company’s share of depreciation of non-real estate assets |
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$ |
0.02 |
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0.02 |
Core FFO per share – fully diluted basis |
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$ |
3.08 |
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3.13 |
This guidance assumes approximately $50 million of wholly owned acquisitions and $50 - $100 million of gross development-related investment during 2026.
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Outlook for the 12 Months Ending December 31, 2027
The Company is issuing its guidance for full-year 2027 Core FFO per share on a fully diluted basis at a range of $3.09 - $3.17.
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Low |
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High |
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Net income (loss) per share – fully diluted basis |
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$ |
0.41 |
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0.49 |
Plus: Company’s share of real estate depreciation and amortization |
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$ |
2.66 |
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2.66 |
FFO per share – fully diluted basis |
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$ |
3.07 |
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3.15 |
Plus: Company’s share of depreciation of non-real estate assets |
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$ |
0.02 |
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0.02 |
Core FFO per share – fully diluted basis |
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$ |
3.09 |
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3.17 |
This guidance assumes approximately $50 million of wholly owned acquisitions and $25 - $50 million of gross development-related investment during 2027.
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, provision for (recovery of) credit losses, 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
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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 28 of the Company’s Q3 2026 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.
Percentage Leased is calculated by dividing leased square footage by total square footage. For purposes of calculating Percentage Leased, the Company excludes from the denominator square footage that was unleased and to which no value was attributed at the time of acquisition.
Conference Call Information
The Company will host a webcast and conference call at 11:00 am Eastern time on October 26, 2026 to review the third quarter 2026 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
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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.
Cole Bardawill
Director of Investor Relations
202-987-9395
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, including as a result of or in connection with any shutdown of the U.S. Government; 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, including failure to refinance current or future indebtedness on favorable terms, or at all, failure to
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meet the restrictive covenants and requirements in our existing and new debt agreements, fluctuations in interest rates and increased costs to refinance or issue new debt; 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, 2025, filed with the Securities and Exchange Commission (SEC) on February 23, 2026, 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)
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September 30, 2026 |
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December 31, 2025 |
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Assets |
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Real estate properties, net |
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$ |
2,752,624 |
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$ |
2,714,650 |
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Cash and cash equivalents |
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2,935 |
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23,374 |
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Restricted cash |
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8,842 |
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10,257 |
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Tenant accounts receivable |
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72,107 |
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51,493 |
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Investment in unconsolidated real estate venture |
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294,059 |
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304,721 |
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Real estate loans receivable, net and investment in sales-type lease, net |
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10,440 |
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34,286 |
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Intangible assets, net |
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175,051 |
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183,911 |
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Interest rate swaps |
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3,549 |
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- |
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Prepaid expenses and other assets |
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51,186 |
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57,078 |
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Total assets |
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$ |
3,370,793 |
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$ |
3,379,770 |
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Liabilities |
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Revolving credit facility |
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16,050 |
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199,050 |
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Term loan facilities, net |
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496,222 |
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297,200 |
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Notes payable, net |
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1,019,636 |
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1,018,884 |
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Mortgage notes payable, net |
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141,957 |
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151,191 |
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Intangible liabilities, net |
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12,117 |
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11,959 |
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Deferred revenue |
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225,999 |
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219,201 |
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Interest rate swaps |
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- |
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3,034 |
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Accounts payable, accrued expenses and other liabilities |
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110,932 |
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109,686 |
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Total liabilities |
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$ |
2,022,913 |
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$ |
2,010,205 |
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Equity |
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Common stock, par value $0.01, 80,000,000 shares authorized, |
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473 |
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463 |
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Additional paid-in capital |
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1,985,653 |
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1,958,412 |
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Retained earnings |
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154,772 |
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144,857 |
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Cumulative dividends |
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|
(839,086 |
) |
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(776,022 |
) |
Accumulated other comprehensive income (loss) |
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1,963 |
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|
|
(4,578 |
) |
Total stockholders' equity |
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$ |
1,303,775 |
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$ |
1,323,132 |
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Non-controlling interest in Operating Partnership |
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44,105 |
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|
46,433 |
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Total equity |
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$ |
1,347,880 |
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$ |
1,369,565 |
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Total liabilities and equity |
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$ |
3,370,793 |
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$ |
3,379,770 |
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|
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7
Income Statement
(Unaudited, in thousands, except share and per share amounts)
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Three Months Ended |
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Nine Months Ended |
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September 30, 2026 |
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September 30, 2025 |
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September 30, 2026 |
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September 30, 2025 |
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Revenues |
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|
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|
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Rental income |
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$ |
90,035 |
|
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$ |
82,210 |
|
|
$ |
268,287 |
|
|
$ |
238,123 |
|
Tenant reimbursements |
|
|
988 |
|
|
|
1,700 |
|
|
|
2,137 |
|
|
|
4,621 |
|
Asset management income |
|
|
693 |
|
|
|
623 |
|
|
|
2,036 |
|
|
|
1,867 |
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Other income |
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|
1,895 |
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|
|
1,618 |
|
|
|
5,113 |
|
|
|
4,449 |
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Total revenues |
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$ |
93,611 |
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$ |
86,151 |
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|
$ |
277,573 |
|
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$ |
249,060 |
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|
|
|
|
|
|
|
|
|
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Expenses |
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|
|
|
|
|
|
|
|
|
|
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Property operating |
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|
22,875 |
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|
|
20,715 |
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|
|
63,418 |
|
|
|
57,724 |
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Real estate taxes |
|
|
9,015 |
|
|
|
8,814 |
|
|
|
26,619 |
|
|
|
25,257 |
|
Depreciation and amortization |
|
|
30,964 |
|
|
|
28,946 |
|
|
|
96,343 |
|
|
|
84,277 |
|
Acquisition costs |
|
|
360 |
|
|
|
293 |
|
|
|
1,562 |
|
|
|
962 |
|
Corporate general and administrative |
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|
7,198 |
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|
|
5,808 |
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|
|
24,646 |
|
|
|
18,830 |
|
Provision for (recovery of) credit losses |
|
|
(752 |
) |
|
|
302 |
|
|
|
(869 |
) |
|
|
(475 |
) |
Total expenses |
|
$ |
69,660 |
|
|
$ |
64,878 |
|
|
$ |
211,719 |
|
|
$ |
186,575 |
|
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Other income (expense) |
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Income from unconsolidated real estate venture |
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|
1,778 |
|
|
|
1,556 |
|
|
|
5,036 |
|
|
|
5,218 |
|
Interest expense, net |
|
|
(20,040 |
) |
|
|
(19,037 |
) |
|
|
(60,629 |
) |
|
|
(56,374 |
) |
Impairment loss |
|
|
- |
|
|
|
(2,545 |
) |
|
|
- |
|
|
|
(2,545 |
) |
Net income |
|
|
5,689 |
|
|
|
1,247 |
|
|
|
10,261 |
|
|
|
8,784 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
||||
Non-controlling interest in Operating Partnership |
|
|
(189 |
) |
|
|
(34 |
) |
|
|
(346 |
) |
|
|
(373 |
) |
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. |
|
$ |
5,500 |
|
|
$ |
1,213 |
|
|
$ |
9,915 |
|
|
$ |
8,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.11 |
|
|
$ |
0.02 |
|
|
$ |
0.20 |
|
|
$ |
0.18 |
|
Diluted |
|
$ |
0.11 |
|
|
$ |
0.02 |
|
|
$ |
0.20 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
47,250,107 |
|
|
|
45,337,184 |
|
|
|
46,661,566 |
|
|
|
44,532,044 |
|
Diluted |
|
|
47,554,336 |
|
|
|
45,485,375 |
|
|
|
46,902,574 |
|
|
|
44,650,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income, per share - fully diluted basis |
|
$ |
0.12 |
|
|
$ |
0.03 |
|
|
$ |
0.21 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - |
|
|
|
|
|
|
|
|
|
|
|
|
||||
fully diluted basis |
|
|
48,922,458 |
|
|
|
47,169,281 |
|
|
|
48,363,392 |
|
|
|
46,551,029 |
|
8
EBITDA
(Unaudited, in thousands)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
5,689 |
|
|
$ |
1,247 |
|
|
$ |
10,261 |
|
|
$ |
8,784 |
|
Depreciation and amortization |
|
|
30,964 |
|
|
|
28,946 |
|
|
|
96,343 |
|
|
|
84,277 |
|
Interest expense |
|
|
20,040 |
|
|
|
19,037 |
|
|
|
60,629 |
|
|
|
56,374 |
|
Tax expense |
|
|
157 |
|
|
|
79 |
|
|
|
576 |
|
|
|
435 |
|
Impairment loss |
|
|
- |
|
|
|
2,545 |
|
|
|
- |
|
|
|
2,545 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
2,131 |
|
|
|
2,323 |
|
|
|
6,813 |
|
|
|
7,005 |
|
EBITDA |
|
$ |
58,981 |
|
|
$ |
54,177 |
|
|
$ |
174,622 |
|
|
$ |
159,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
9
FFO and CAD
(Unaudited, in thousands, except share and per share amounts)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
|
September 30, 2026 |
|
|
September 30, 2025 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
5,689 |
|
|
$ |
1,247 |
|
|
$ |
10,261 |
|
|
$ |
8,784 |
|
Depreciation of real estate assets |
|
|
30,707 |
|
|
|
28,695 |
|
|
|
95,553 |
|
|
|
83,523 |
|
Impairment loss |
|
|
- |
|
|
|
2,545 |
|
|
|
- |
|
|
|
2,545 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
2,084 |
|
|
|
2,282 |
|
|
|
6,647 |
|
|
|
6,841 |
|
FFO |
|
$ |
38,480 |
|
|
$ |
34,769 |
|
|
$ |
112,461 |
|
|
$ |
101,693 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss on extinguishment of debt and modification costs |
|
|
42 |
|
|
|
241 |
|
|
|
93 |
|
|
|
1,141 |
|
Provision for (recovery of) credit losses |
|
|
(752 |
) |
|
|
302 |
|
|
|
(869 |
) |
|
|
(475 |
) |
Natural disaster event expense, net of recovery |
|
|
1 |
|
|
|
44 |
|
|
|
16 |
|
|
|
114 |
|
Depreciation of non-real estate assets |
|
|
257 |
|
|
|
251 |
|
|
|
790 |
|
|
|
754 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
17 |
|
|
|
16 |
|
|
|
50 |
|
|
|
49 |
|
Core FFO |
|
$ |
38,045 |
|
|
$ |
35,623 |
|
|
$ |
112,541 |
|
|
$ |
103,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO, per share - fully diluted basis |
|
$ |
0.79 |
|
|
$ |
0.74 |
|
|
$ |
2.33 |
|
|
$ |
2.18 |
|
Core FFO, per share - fully diluted basis |
|
$ |
0.78 |
|
|
$ |
0.76 |
|
|
$ |
2.33 |
|
|
$ |
2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Core FFO |
|
|
38,045 |
|
|
|
35,623 |
|
|
|
112,541 |
|
|
|
103,276 |
|
Straight-line rent and other non-cash adjustments |
|
|
(1,415 |
) |
|
|
(337 |
) |
|
|
(4,976 |
) |
|
|
(386 |
) |
Amortization of above-/below-market leases |
|
|
(432 |
) |
|
|
(421 |
) |
|
|
(1,303 |
) |
|
|
(1,427 |
) |
Amortization of deferred revenue |
|
|
(3,860 |
) |
|
|
(1,892 |
) |
|
|
(11,386 |
) |
|
|
(5,517 |
) |
Non-cash interest expense |
|
|
1,050 |
|
|
|
855 |
|
|
|
2,939 |
|
|
|
2,470 |
|
Non-cash compensation |
|
|
2,041 |
|
|
|
1,633 |
|
|
|
6,241 |
|
|
|
4,449 |
|
Natural disaster event expense, net of recovery |
|
|
(1 |
) |
|
|
(44 |
) |
|
|
(16 |
) |
|
|
(114 |
) |
Principal amortization |
|
|
(642 |
) |
|
|
(1,156 |
) |
|
|
(3,035 |
) |
|
|
(3,420 |
) |
Maintenance capital expenditures |
|
|
(1,269 |
) |
|
|
(2,897 |
) |
|
|
(8,876 |
) |
|
|
(6,902 |
) |
Contractual tenant improvements |
|
|
(704 |
) |
|
|
(2,060 |
) |
|
|
(1,379 |
) |
|
|
(2,672 |
) |
Unconsolidated real estate venture allocated share of above adjustments |
|
|
11 |
|
|
|
(4 |
) |
|
|
56 |
|
|
|
(14 |
) |
Cash Available for Distribution (CAD) |
|
$ |
32,824 |
|
|
$ |
29,300 |
|
|
$ |
90,806 |
|
|
$ |
89,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - fully diluted basis |
|
|
48,922,458 |
|
|
|
47,169,281 |
|
|
|
48,363,392 |
|
|
|
46,551,029 |
|
Net Debt and Adjusted Net Debt
(Unaudited, in thousands)
|
September 30, 2026 |
|
|
Total Debt(1) |
$ |
1,683,347 |
|
Less: Cash and cash equivalents |
|
(5,859 |
) |
Less: property acquisition closing escrow, net of deposit |
|
(750 |
) |
Net Debt |
$ |
1,676,738 |
|
Less: Adjustment for development projects(2) |
|
(65,373 |
) |
Adjusted Net Debt |
$ |
1,611,365 |
|
|
|
|
|
1 Excludes unamortized premiums / discounts and deferred financing fees.
2 See definition of Adjusted Net Debt on Page 4 of this release.
10
Exhibit 99.2
Disclaimers |
|
|
|
Forward-Looking Statements
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, including as a result of or in connection with any shutdown of the U.S. Government; 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, including failure to refinance current or future indebtedness on favorable terms, or at all, failure to meet the restrictive covenants and requirements in our existing and new debt agreements, fluctuations in interest rates and increased costs to refinance or issue new debt; 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, 2025, filed with the Securities and Exchange Commission, or the SEC, on February 23, 2026 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 quarter ended September 30, 2026 that will be released in our Form 10-Q to be filed with the SEC on or about October 26, 2026.
2
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 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, provision for (recovery of) credit losses, 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.
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
3
Supplemental Definitions |
|
|
|
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 28 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.
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, provision for (recovery of) credit losses, 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.
4
Table of Contents |
|
|
|
Overview |
|
|
|
|
|
|
6 |
|
|
|
|
|
7 |
|
|
|
|
Corporate Financials |
|
|
|
|
|
|
8 |
|
|
|
|
|
9 |
|
|
|
|
|
10 |
|
|
|
|
|
11 |
|
|
|
|
|
12 |
|
|
|
|
|
13 |
|
|
|
|
Debt |
|
|
|
|
|
|
15 |
|
|
|
|
|
17 |
|
|
|
|
Properties |
|
|
|
|
|
|
18 |
|
|
|
|
|
23 |
|
|
|
|
|
25 |
|
|
|
|
|
27 |
|
|
|
|
5
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 |
Cole Bardawill |
Suite 775 North |
|
or 202-987-9395 to request an |
Director of Investor Relations |
Washington, DC 20006 |
Ticker |
Investor Relations package |
|
202-595-9500 |
DEA |
|
|
Executive Team |
|
Board of Directors |
|
Darrell Crate, President & CEO |
Mark Bauer, EVP Development |
William Binnie, Chairman |
Emil Henry Jr. |
Michael Ibe, Vice-Chairman & EVP |
Franklin Logan, EVP GC & Secretary |
Darrell Crate |
Michael Ibe |
Allison Marino, EVP CFO |
Christopher Wang, EVP Acquisitions |
Cynthia Fisher |
Tara Innes |
Stuart Burns, EVP Government Relations |
Brian Colantuoni, SVP CAO |
Scott Freeman |
|
Nick Nimerala, EVP Portfolio & Asset Management |
|
|
|
Equity Research Coverage |
|
|
|
|
|
Citigroup |
BMO Capital Markets |
RBC Capital Markets |
Seth Bergey & Nick Joseph |
John P. Kim |
Michael Carroll |
212-816-2066 & 212-816-1909 |
212-885-4115 |
440-715-2649 |
|
|
|
Jefferies |
Truist Securities |
Compass Point Research & Trading, LLC |
Joe Dickstein |
Michael R. Lewis |
Merrill Ross |
212-778-8771 |
212-319-5659 |
202-534-1392 |
|
|
|
Raymond James & Associates |
|
|
RJ Milligan |
|
|
727-567-2585 |
|
|
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.
6
Executive Summary (In thousands, except share and per share amounts) |
|
|
|
Outstanding Classes of Stock and Partnership Units - Fully Diluted Basis |
At September 30, 2026 |
|
Earnings |
Three months ended September 30, 2026 |
Three months ended September 30, 2025 |
Common shares |
47,250,107 |
|
Net income available to Easterly Government Properties, Inc. |
$5,500 |
$1,213 |
Unvested restricted shares |
71,510 |
|
Net income available to Easterly Government Properties, Inc. |
|
|
Common partnership and vested LTIP units |
1,600,841 |
|
per share: |
|
|
Total - fully diluted basis |
48,922,458 |
|
Basic |
$0.11 |
$0.02 |
|
|
|
Diluted |
$0.11 |
$0.02 |
|
|
|
|
|
|
Market Capitalization |
At September 30, 2026 |
|
Net income |
$5,689 |
$1,247 |
Price of Common Shares |
$23.20 |
|
Net income, per share - fully diluted basis |
$0.12 |
$0.03 |
Total equity market capitalization - fully diluted basis |
$1,135,001 |
|
Funds From Operations (FFO) |
$38,480 |
$34,769 |
Net Debt |
$1,676,738 |
|
FFO, per share - fully diluted basis |
$0.79 |
$0.74 |
Total enterprise value |
$2,811,739 |
|
|
|
|
|
|
|
Core FFO |
$38,045 |
$35,623 |
|
|
|
Core FFO, per share - fully diluted basis |
$0.78 |
$0.76 |
Ratios |
At September 30, 2026 |
|
|
|
|
Net debt to total enterprise value |
59.6% |
|
Cash Available for Distribution (CAD) |
$32,824 |
$29,300 |
Net debt to annualized quarterly EBITDA |
7.1x |
|
|
|
|
Adjusted Net Debt to annualized quarterly EBITDA |
6.8x |
|
Liquidity |
At September 30, 2026 |
|
Cash interest coverage ratio |
3.1x |
|
Cash and cash equivalents |
|
$5,859 |
Cash fixed charge coverage ratio |
3.0x |
|
Available under $400 million senior unsecured 2024 revolving credit facility(1) |
$383,825 |
|
|
|
|
|
|
|
(1) 2024 revolving credit facility has an accordion feature that provides additional capacity, subject to syndication of the increase and the satisfaction of customary terms and conditions, of up to $300 million, for a total revolving credit facility size of not more than $700 million.
7
Balance Sheets (Unaudited, in thousands, except share amounts) |
|
|
|
|
|
September 30, 2026 |
|
December 31, 2025 |
Assets |
|
|
|
|
Real estate properties, net |
|
$2,752,624 |
|
$2,714,650 |
Cash and cash equivalents |
|
2,935 |
|
23,374 |
Restricted cash |
|
8,842 |
|
10,257 |
Tenant accounts receivable |
|
72,107 |
|
51,493 |
Investment in unconsolidated real estate venture |
|
294,059 |
|
304,721 |
Real estate loans receivable, net and investment in sales-type lease, net |
|
10,440 |
|
34,286 |
Intangible assets, net |
|
175,051 |
|
183,911 |
Interest rate swaps |
|
3,549 |
|
- |
Prepaid expenses and other assets |
|
51,186 |
|
57,078 |
Total assets |
|
$3,370,793 |
|
$3,379,770 |
|
|
|
|
|
Liabilities |
|
|
|
|
Revolving credit facility |
|
16,050 |
|
199,050 |
Term loan facilities, net |
|
496,222 |
|
297,200 |
Notes payable, net |
|
1,019,636 |
|
1,018,884 |
Mortgage notes payable, net |
|
141,957 |
|
151,191 |
Intangible liabilities, net |
|
12,117 |
|
11,959 |
Deferred revenue |
|
225,999 |
|
219,201 |
Interest rate swaps |
|
- |
|
3,034 |
Accounts payable, accrued expenses and other liabilities |
|
110,932 |
|
109,686 |
Total liabilities |
|
$2,022,913 |
|
$2,010,205 |
|
|
|
|
|
Equity |
|
|
|
|
Common stock, par value $0.01, 80,000,000 shares authorized, |
|
473 |
|
463 |
Additional paid-in capital |
|
1,985,653 |
|
1,958,412 |
Retained earnings |
|
154,772 |
|
144,857 |
Cumulative dividends |
|
(839,086) |
|
(776,022) |
Accumulated other comprehensive income (loss) |
|
1,963 |
|
(4,578) |
Total stockholders' equity |
|
$1,303,775 |
|
$1,323,132 |
Non-controlling interest in Operating Partnership |
|
44,105 |
|
46,433 |
Total equity |
|
$1,347,880 |
|
$1,369,565 |
Total liabilities and equity |
|
$3,370,793 |
|
$3,379,770 |
|
|
|
|
|
8
Income Statements (Unaudited, in thousands, except share and per share amounts) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
Revenues |
|
|
|
|
|
|
|
|
Rental income |
|
$90,035 |
|
$82,210 |
|
$268,287 |
|
$238,123 |
Tenant reimbursements |
|
988 |
|
1,700 |
|
2,137 |
|
4,621 |
Asset management income |
|
693 |
|
623 |
|
2,036 |
|
1,867 |
Other income |
|
1,895 |
|
1,618 |
|
5,113 |
|
4,449 |
Total revenues |
|
$93,611 |
|
$86,151 |
|
$277,573 |
|
$249,060 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Property operating |
|
22,875 |
|
20,715 |
|
63,418 |
|
57,724 |
Real estate taxes |
|
9,015 |
|
8,814 |
|
26,619 |
|
25,257 |
Depreciation and amortization |
|
30,964 |
|
28,946 |
|
96,343 |
|
84,277 |
Acquisition costs |
|
360 |
|
293 |
|
1,562 |
|
962 |
Corporate general and administrative |
|
7,198 |
|
5,808 |
|
24,646 |
|
18,830 |
Provision for (recovery of) credit losses |
|
(752) |
|
302 |
|
(869) |
|
(475) |
Total expenses |
|
$69,660 |
|
$64,878 |
|
$211,719 |
|
$186,575 |
|
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
Income from unconsolidated real estate venture |
|
1,778 |
|
1,556 |
|
5,036 |
|
5,218 |
Interest expense, net |
|
(20,040) |
|
(19,037) |
|
(60,629) |
|
(56,374) |
Impairment loss |
|
- |
|
(2,545) |
|
- |
|
(2,545) |
Net income |
|
5,689 |
|
1,247 |
|
10,261 |
|
8,784 |
|
|
|
|
|
|
|
|
|
Non-controlling interest in Operating Partnership |
|
(189) |
|
(34) |
|
(346) |
|
(373) |
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
Properties, Inc. |
|
$5,500 |
|
$1,213 |
|
$9,915 |
|
$8,411 |
|
|
|
|
|
|
|
|
|
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
Properties, Inc. per share: |
|
|
|
|
|
|
|
|
Basic |
|
$0.11 |
|
$0.02 |
|
$0.20 |
|
$0.18 |
Diluted |
|
$0.11 |
|
$0.02 |
|
$0.20 |
|
$0.18 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
47,250,107 |
|
45,337,184 |
|
46,661,566 |
|
44,532,044 |
Diluted |
|
47,554,336 |
|
45,485,375 |
|
46,902,574 |
|
44,650,747 |
|
|
|
|
|
|
|
|
|
Net income, per share - fully diluted basis |
|
$0.12 |
|
$0.03 |
|
$0.21 |
|
$0.19 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - |
|
|
|
|
|
|
|
|
fully diluted basis |
|
48,922,458 |
|
47,169,281 |
|
48,363,392 |
|
46,551,029 |
9
Net Operating Income (Unaudited, in thousands) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
|
|
|
|
|
|
|
|
|
Net income |
|
$5,689 |
|
$1,247 |
|
$10,261 |
|
$8,784 |
Depreciation and amortization |
|
30,964 |
|
28,946 |
|
96,343 |
|
84,277 |
Acquisition costs |
|
360 |
|
293 |
|
1,562 |
|
962 |
Corporate general and administrative |
|
7,198 |
|
5,808 |
|
24,646 |
|
18,830 |
Provision for (recovery of) credit losses |
|
(752) |
|
302 |
|
(869) |
|
(475) |
Interest expense |
|
20,040 |
|
19,037 |
|
60,629 |
|
56,374 |
Impairment loss |
|
- |
|
2,545 |
|
- |
|
2,545 |
Unconsolidated real estate venture allocated share of above adjustments |
|
2,154 |
|
2,365 |
|
6,935 |
|
7,086 |
Net Operating Income |
|
$65,653 |
|
$60,543 |
|
$199,507 |
|
$178,383 |
Adjustments to Net Operating Income: |
|
|
|
|
|
|
|
|
Straight-line rent and other non-cash adjustments |
|
(1,449) |
|
(317) |
|
(4,970) |
|
(332) |
Amortization of above-/below-market leases |
|
(432) |
|
(421) |
|
(1,302) |
|
(1,427) |
Amortization of deferred revenue |
|
(3,860) |
|
(1,892) |
|
(11,386) |
|
(5,517) |
Unconsolidated real estate venture allocated share of above adjustments |
|
174 |
|
26 |
|
222 |
|
74 |
Cash Net Operating Income |
|
$60,086 |
|
$57,939 |
|
$182,071 |
|
$171,181 |
10
EBITDA (Unaudited, in thousands) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
|
|
|
|
|
|
|
|
|
Net income |
|
$5,689 |
|
$1,247 |
|
$10,261 |
|
$8,784 |
Depreciation and amortization |
|
30,964 |
|
28,946 |
|
96,343 |
|
84,277 |
Interest expense |
|
20,040 |
|
19,037 |
|
60,629 |
|
56,374 |
Tax expense |
|
157 |
|
79 |
|
576 |
|
435 |
Impairment loss |
|
- |
|
2,545 |
|
- |
|
2,545 |
Unconsolidated real estate venture allocated share of above adjustments |
|
2,131 |
|
2,323 |
|
6,813 |
|
7,005 |
EBITDA |
|
$58,981 |
|
$54,177 |
|
$174,622 |
|
$159,420 |
|
|
|
|
|
|
|
|
|
11
FFO and CAD (Unaudited, in thousands, except share and per share amounts) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 30, 2026 |
|
September 30, 2025 |
|
September 30, 2026 |
|
September 30, 2025 |
|
|
|
|
|
|
|
|
|
Net income |
|
$5,689 |
|
$1,247 |
|
$10,261 |
|
$8,784 |
Depreciation of real estate assets |
|
30,707 |
|
28,695 |
|
95,553 |
|
83,523 |
Impairment loss |
|
- |
|
2,545 |
|
- |
|
2,545 |
Unconsolidated real estate venture allocated share of above adjustments |
|
2,084 |
|
2,282 |
|
6,647 |
|
6,841 |
FFO |
|
$38,480 |
|
$34,769 |
|
$112,461 |
|
$101,693 |
Adjustments to FFO: |
|
|
|
|
|
|
|
|
Loss on extinguishment of debt and modification costs |
|
42 |
|
241 |
|
93 |
|
1,141 |
Provision for (recovery of) credit losses |
|
(752) |
|
302 |
|
(869) |
|
(475) |
Natural disaster event expense, net of recovery |
|
1 |
|
44 |
|
16 |
|
114 |
Depreciation of non-real estate assets |
|
257 |
|
251 |
|
790 |
|
754 |
Unconsolidated real estate venture allocated share of above adjustments |
|
17 |
|
16 |
|
50 |
|
49 |
Core FFO |
|
$38,045 |
|
$35,623 |
|
$112,541 |
|
$103,276 |
|
|
|
|
|
|
|
|
|
FFO, per share - fully diluted basis |
|
$0.79 |
|
$0.74 |
|
$2.33 |
|
$2.18 |
Core FFO, per share - fully diluted basis |
|
$0.78 |
|
$0.76 |
|
$2.33 |
|
$2.22 |
|
|
|
|
|
|
|
|
|
Core FFO |
|
38,045 |
|
35,623 |
|
112,541 |
|
103,276 |
Straight-line rent and other non-cash adjustments |
|
(1,415) |
|
(337) |
|
(4,976) |
|
(386) |
Amortization of above-/below-market leases |
|
(432) |
|
(421) |
|
(1,303) |
|
(1,427) |
Amortization of deferred revenue |
|
(3,860) |
|
(1,892) |
|
(11,386) |
|
(5,517) |
Non-cash interest expense |
|
1,050 |
|
855 |
|
2,939 |
|
2,470 |
Non-cash compensation |
|
2,041 |
|
1,633 |
|
6,241 |
|
4,449 |
Natural disaster event expense, net of recovery |
|
(1) |
|
(44) |
|
(16) |
|
(114) |
Principal amortization |
|
(642) |
|
(1,156) |
|
(3,035) |
|
(3,420) |
Maintenance capital expenditures |
|
(1,269) |
|
(2,897) |
|
(8,876) |
|
(6,902) |
Contractual tenant improvements |
|
(704) |
|
(2,060) |
|
(1,379) |
|
(2,672) |
Unconsolidated real estate venture allocated share of above adjustments |
|
11 |
|
(4) |
|
56 |
|
(14) |
Cash Available for Distribution (CAD) |
|
$32,824 |
|
$29,300 |
|
$90,806 |
|
$89,743 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - fully diluted basis |
|
48,922,458 |
|
47,169,281 |
|
48,363,392 |
|
46,551,029 |
12
Unconsolidated Real Estate Venture (Unaudited, in thousands) |
|
|
|
Balance Sheet Information |
Balance Sheet |
|
Easterly's Share(2) |
|
September 30, 2026 |
|
September 30, 2026 |
|
|
|
|
Real estate properties - net |
$475,429 |
|
$251,977 |
Total assets |
569,724 |
|
301,953 |
Total liabilities |
15,477 |
|
8,203 |
Total preferred stockholders' equity |
125 |
|
66 |
Total common stockholders' equity |
554,122 |
|
293,684 |
Basis difference(1) |
- |
|
375 |
Total equity |
$554,247 |
|
$294,059 |
(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.
13
Unconsolidated Real Estate Venture (Cont.) (Unaudited, in thousands) |
|
|
|
Income Statement Information |
Three Months Ended |
|
Easterly's Share(1) |
|
Nine Months Ended |
|
Easterly's Share(1) |
|
September 30, 2026 |
|
September 30, 2026 |
|
September 30, 2026 |
|
September 30, 2026 |
Revenues |
|
|
|
|
|
|
|
Rental income |
$12,709 |
|
$6,735 |
|
$38,063 |
|
$20,173 |
Other income |
68 |
|
36 |
|
144 |
|
77 |
Total Revenues |
$12,777 |
|
$6,771 |
|
$38,207 |
|
$20,250 |
Operating expenses |
|
|
|
|
|
|
|
Property operating |
2,996 |
|
1,588 |
|
8,688 |
|
4,606 |
Real estate taxes |
1,741 |
|
923 |
|
5,118 |
|
2,714 |
Depreciation and amortization |
3,961 |
|
2,099 |
|
12,633 |
|
6,696 |
Asset management fees |
618 |
|
328 |
|
1,807 |
|
959 |
Corporate general and administrative |
63 |
|
33 |
|
327 |
|
173 |
Total expenses |
$9,379 |
|
$4,971 |
|
$28,573 |
|
$15,148 |
Other expenses |
|
|
|
|
|
|
|
Interest expense |
(41) |
|
(22) |
|
(123) |
|
(66) |
Net income |
$3,357 |
|
$1,778 |
|
$9,511 |
|
$5,036 |
|
|
|
|
|
|
|
|
Depreciation and amortization |
3,961 |
|
2,099 |
|
12,633 |
|
6,696 |
Interest expense |
41 |
|
22 |
|
123 |
|
66 |
Tax expense |
19 |
|
10 |
|
96 |
|
51 |
EBITDA |
$7,378 |
|
$3,909 |
|
$22,363 |
|
$11,849 |
|
|
|
|
|
|
|
|
Net income |
$3,357 |
|
$1,778 |
|
$9,511 |
|
$5,036 |
Depreciation of real estate assets |
3,932 |
|
2,084 |
|
12,543 |
|
6,647 |
FFO |
$7,289 |
|
$3,862 |
|
$22,054 |
|
$11,683 |
Adjustments to FFO: |
|
|
|
|
|
|
|
Depreciation of non-real estate assets |
31 |
|
17 |
|
93 |
|
50 |
Core FFO |
$7,320 |
|
$3,879 |
|
$22,147 |
|
$11,733 |
Adjustments to Core FFO: |
|
|
|
|
|
|
|
Straight-line rent and other non-cash adjustments |
329 |
|
174 |
|
421 |
|
222 |
Non-cash interest expense |
41 |
|
22 |
|
123 |
|
66 |
Maintenance capital expenditures |
(349) |
|
(185) |
|
(439) |
|
(232) |
Cash Available for Distribution (CAD) |
$7,341 |
|
$3,890 |
|
$22,252 |
|
$11,789 |
(1) The Company owns 53.0% of the properties through the unconsolidated joint venture.
14
Debt Schedules (Unaudited, in thousands) |
|
|
|
Debt Instrument |
Maturity Date |
|
September 30, 2026 |
September 30, 2026 |
September 30, 2026 |
Unsecured debt |
|
|
|
|
|
2024 Revolving Credit facility |
3-Jun-28(2) |
|
S + 135 bps(3) |
$16,050 |
1.0% |
2016 Term Loan facility |
28-Jan-28(4) |
|
5.21%(5) |
100,000 |
5.9% |
2018 Term Loan facility |
21-Aug-28(6) |
|
4.99%(7) |
200,000 |
11.9% |
2026 Term Loan facility |
25-Jun-31 |
|
S + 130 bps |
200,000 |
11.9% |
2017 Series A Senior Notes |
25-May-27 |
|
4.05% |
95,000 |
5.6% |
2017 Series B Senior Notes |
25-May-29 |
|
4.15% |
50,000 |
3.0% |
2017 Series C Senior Notes |
25-May-32 |
|
4.30% |
30,000 |
1.8% |
2019 Series A Senior Notes |
12-Sep-29 |
|
3.73% |
85,000 |
5.0% |
2019 Series B Senior Notes |
12-Sep-31 |
|
3.83% |
100,000 |
5.9% |
2019 Series C Senior Notes |
12-Sep-34 |
|
3.98% |
90,000 |
5.3% |
2021 Series A Senior Notes |
14-Oct-28 |
|
2.62% |
50,000 |
3.0% |
2021 Series B Senior Notes |
14-Oct-30 |
|
2.89% |
200,000 |
11.9% |
2024 Series A Senior Notes |
28-May-33 |
|
6.56% |
150,000 |
8.9% |
2024 Series B Senior Notes |
13-Aug-33 |
|
6.56% |
50,000 |
3.0% |
2025 Series A Senior Notes |
20-Mar-30 |
|
6.13% |
25,000 |
1.5% |
2025 Series B Senior Notes |
20-Mar-32 |
|
6.33%(8) |
100,000 |
5.9% |
Total unsecured debt |
4.0 years(9) |
|
4.69% |
$1,541,050 |
91.5% |
|
(wtd-avg maturity) |
|
(wtd-avg rate) |
|
|
|
|
|
|
|
|
Secured mortgage debt |
|
|
|
|
|
ICE - Charleston |
15-Jan-27 |
|
4.21% |
7,697 |
0.5% |
VA - Loma Linda |
6-Jul-27 |
|
3.59% |
127,500 |
7.6% |
CBP - Savannah |
10-Jul-33 |
|
3.40% |
7,100 |
0.4% |
Total secured mortgage debt |
1.0 years |
|
3.61% |
$142,297 |
8.5% |
|
(wtd-avg maturity) |
|
(wtd-avg rate) |
|
|
(1) Excludes unamortized premiums / discounts and deferred financing fees.
(2) 2024 revolving credit facility has two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.
(3) At September 30, 2026, the USD SOFR with a five day lookback ("SOFR" or "S") was 3.87%. The spread over the applicable rate for our 2024 revolving credit facility is based on the Company's current consolidated leverage ratio.
(4) 2016 term loan facility has two one-year as-of-right extension options, subject to certain conditions and the payment of an extension fee.
(5) Calculated based on three interest rate swaps with a total notional value of $100.0 million, which effectively fixes the interest rate at 5.21% annually based on the Company’s current consolidated leverage ratio. The interest rate swaps mature on December 23, 2027, which is not coterminous with the maturity date of the 2016 term loan facility.
(6) 2018 term loan facility has two one-year as-of-right extension options, subject to certain conditions and the payment of an extension fee.
(7) Calculated based on three interest rate swaps with an aggregate notional value of $200.0 million, which effectively fixes the interest rate at 4.99% annually based on the Company’s current consolidated leverage ratio. One of the interest rate swaps matures on April 1, 2028 and the other two interest rate swaps mature on July 1, 2028, none of which are coterminous with the maturity date of the 2018 term loan facility.
(8) We entered into two $50.0 million treasury lock agreements to fix the Treasury rate of our 2025 series B senior notes.
(9) Assuming the as-of-right extension options are exercised on our 2024 revolving credit facility, 2016 term loan facility and 2018 term loan facility, the weighted-average maturity of our unsecured debt is 4.4 years.
15
Debt Schedules (Cont.) (Unaudited, in thousands) |
|
|
|
Debt Statistics |
September 30, 2026 |
|
|
|
September 30, 2026 |
Variable rate debt - unhedged |
$216,050 |
|
% Variable rate debt - unhedged |
12.8% |
|
Fixed rate debt |
1,467,297 |
|
% Fixed rate debt(3) |
87.2% |
|
Total Debt(1) |
$1,683,347 |
|
|
|
|
Less: cash and cash equivalents |
(5,859) |
|
Weighted average maturity |
3.8 years |
|
Less: property acquisition closing escrow, net of deposit |
(750) |
|
Weighted average interest rate |
4.6% |
|
Net Debt |
$1,676,738 |
|
|
|
|
Less: Adjustment for development(2) |
(65,373) |
|
|
|
|
Adjusted Net Debt |
$1,611,365 |
|
|
|
|
(1) Excludes unamortized premiums / discounts and deferred financing fees.
(2) See definition of Adjusted Net Debt on Page 4.
(3) Includes the Company's secured mortgage debt and 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 16 for further detail.
16
Debt Maturities (Unaudited, in thousands) |
|
|
|
|
|
Secured Debt |
|
Unsecured Debt |
|
|
|
|
|
|
||
Year |
|
Scheduled |
|
Scheduled |
|
Scheduled |
|
Total |
|
Percentage of |
|
Weighted Average |
2026 |
|
$650 |
|
$- |
|
$- |
|
$650 |
|
0.0% |
|
0.00% |
2027 |
|
1,093 |
|
134,640 |
|
95,000 |
|
230,733 |
|
13.7% |
|
3.80% |
2028 |
|
983 |
|
- |
|
366,050 |
|
367,033 |
|
21.8% |
|
4.74% |
2029 |
|
1,016 |
|
- |
|
135,000 |
|
136,016 |
|
8.1% |
|
3.89% |
2030 |
|
1,049 |
|
- |
|
225,000 |
|
226,049 |
|
13.4% |
|
3.25% |
2031 |
|
1,081 |
|
- |
|
300,000 |
|
301,081 |
|
17.9% |
|
4.72% |
2032 |
|
1,116 |
|
- |
|
130,000 |
|
131,116 |
|
7.8% |
|
5.86% |
2033 |
|
669 |
|
- |
|
200,000 |
|
200,669 |
|
11.9% |
|
6.45% |
2034 |
|
- |
|
- |
|
90,000 |
|
90,000 |
|
5.4% |
|
3.98% |
Total |
|
$7,657 |
|
$134,640 |
|
$1,541,050 |
|
$1,683,347 |
|
100.0% |
|
|
17
Leased Operating Property Overview (As of September 30, 2026, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
Annualized |
|
Percentage |
|
Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned U.S. Government Leased Properties |
||||||||||||||||
VA - Loma Linda |
|
Loma Linda, CA |
|
Outpatient Clinic |
|
2036 |
|
2016 |
|
327,614 |
|
$16,892,383 |
|
4.3% |
|
$51.56 |
USCIS - Kansas City |
|
Lee's Summit, MO |
|
Office |
|
2027 - 2042(1) |
|
1969 / 1999 |
|
417,945 |
|
10,452,533 |
|
2.6% |
|
25.01 |
JSC - Suffolk |
|
Suffolk, VA |
|
Specialized Facility |
|
2028(2) |
|
1993 / 2004 |
|
403,737 |
|
8,665,537 |
|
2.2% |
|
21.46 |
Various GSA - Chicago |
|
Des Plaines, IL |
|
Office |
|
2027 |
|
1971 / 1999 |
|
188,768 |
|
7,925,559 |
|
1.9% |
|
41.99 |
FDA - Atlanta |
|
Atlanta, GA |
|
Laboratory |
|
2045 |
|
2025 |
|
162,000 |
|
7,064,453 |
|
1.8% |
|
43.61 |
IRS - Fresno |
|
Fresno, CA |
|
Office |
|
2033 |
|
2003 |
|
180,481 |
|
7,043,219 |
|
1.8% |
|
39.02 |
FBI - Salt Lake |
|
Salt Lake City, UT |
|
Specialized Facility |
|
2032 |
|
2012 |
|
169,542 |
|
6,849,035 |
|
1.7% |
|
40.40 |
Various GSA - Buffalo |
|
Buffalo, NY |
|
Office |
|
2031 - 2039(2) |
|
2004 |
|
251,236 |
|
6,784,857 |
|
1.7% |
|
27.01 |
Various GSA - Portland |
|
Portland, OR |
|
Office |
|
2027 - 2039(3) |
|
2002 |
|
177,341 |
|
5,990,495 |
|
1.5% |
|
33.78 |
VA - San Jose |
|
San Jose, CA |
|
Outpatient Clinic |
|
2038 |
|
2018 |
|
90,085 |
|
5,812,834 |
|
1.5% |
|
64.53 |
EPA - Lenexa |
|
Lenexa, KS |
|
Office |
|
2027(2) |
|
2007 / 2012 |
|
169,585 |
|
5,798,381 |
|
1.5% |
|
34.19 |
FBI - Tampa |
|
Tampa, FL |
|
Specialized Facility |
|
2040 |
|
2005 |
|
138,000 |
|
5,385,768 |
|
1.4% |
|
39.03 |
PTO - Arlington |
|
Arlington, VA |
|
Specialized Facility |
|
2035 |
|
2009 |
|
190,546 |
|
5,350,786 |
|
1.4% |
|
28.08 |
FDA - Alameda |
|
Alameda, CA |
|
Laboratory |
|
2039 |
|
2019 |
|
69,624 |
|
5,099,184 |
|
1.3% |
|
73.24 |
FBI - San Antonio |
|
San Antonio, TX |
|
Specialized Facility |
|
2045 |
|
2007 |
|
148,584 |
|
4,865,679 |
|
1.2% |
|
32.75 |
FBI / DEA - El Paso |
|
El Paso, TX |
|
Specialized Facility |
|
2028 |
|
1998 - 2005 |
|
203,683 |
|
4,825,010 |
|
1.2% |
|
23.69 |
FEMA - Tracy |
|
Tracy, CA |
|
Warehouse |
|
2038 |
|
2018 |
|
210,373 |
|
4,668,336 |
|
1.2% |
|
22.19 |
TREAS - Parkersburg |
|
Parkersburg, WV |
|
Office |
|
2041 |
|
2004 / 2006 |
|
182,500 |
|
4,440,650 |
|
1.1% |
|
24.33 |
FBI - Mobile |
|
Mobile, AL |
|
Specialized Facility |
|
2029(2) |
|
2001 |
|
76,112 |
|
4,364,100 |
|
1.1% |
|
57.34 |
FDA - Lenexa |
|
Lenexa, KS |
|
Laboratory |
|
2040 |
|
2020 |
|
59,690 |
|
4,297,893 |
|
1.1% |
|
72.00 |
ICE - Dallas |
|
Irving, TX |
|
Specialized Facility |
|
2032 / 2040(4) |
|
2000 / 2020 |
|
135,200 |
|
4,285,579 |
|
1.1% |
|
31.70 |
FBI - Pittsburgh |
|
Pittsburgh, PA |
|
Specialized Facility |
|
2027 |
|
2001 |
|
100,054 |
|
4,272,250 |
|
1.1% |
|
42.70 |
VA - South Bend |
|
Mishawaka, IN |
|
Outpatient Clinic |
|
2032 |
|
2017 |
|
86,363 |
|
4,260,909 |
|
1.1% |
|
49.34 |
FBI - Knoxville |
|
Knoxville, TN |
|
Specialized Facility |
|
2028 |
|
2010 |
|
99,130 |
|
4,253,329 |
|
1.1% |
|
42.91 |
USCIS - Lincoln |
|
Lincoln, NE |
|
Office |
|
2041 |
|
2005 |
|
137,671 |
|
4,220,772 |
|
1.1% |
|
30.66 |
FBI - Omaha |
|
Omaha, NE |
|
Specialized Facility |
|
2044 |
|
2009 |
|
112,196 |
|
4,011,855 |
|
1.0% |
|
35.76 |
FBI - New Orleans |
|
New Orleans, LA |
|
Specialized Facility |
|
2029(5) |
|
1999 / 2006 |
|
137,679 |
|
3,923,663 |
|
1.0% |
|
28.50 |
VA - Mobile |
|
Mobile, AL |
|
Outpatient Clinic |
|
2033 |
|
2018 |
|
79,212 |
|
3,916,316 |
|
1.0% |
|
49.44 |
FBI - Albany |
|
Albany, NY |
|
Specialized Facility |
|
2036 |
|
1998 |
|
69,476 |
|
3,657,678 |
|
0.9% |
|
52.65 |
DOT - Lakewood |
|
Lakewood, CO |
|
Office |
|
2039 |
|
2004 |
|
116,046 |
|
3,622,432 |
|
0.9% |
|
31.22 |
FBI - Birmingham |
|
Birmingham, AL |
|
Specialized Facility |
|
2042 |
|
2005 |
|
96,278 |
|
3,621,989 |
|
0.9% |
|
37.62 |
EPA - Kansas City |
|
Kansas City, KS |
|
Laboratory |
|
2043 |
|
2003 |
|
55,833 |
|
3,604,587 |
|
0.9% |
|
64.56 |
FBI - Little Rock |
|
Little Rock, AR |
|
Specialized Facility |
|
2041 |
|
2001 |
|
102,377 |
|
3,512,528 |
|
0.9% |
|
34.31 |
VA - Chico |
|
Chico, CA |
|
Outpatient Clinic |
|
2034 |
|
2019 |
|
51,647 |
|
3,389,051 |
|
0.9% |
|
65.62 |
FBI - Richmond |
|
Richmond, VA |
|
Specialized Facility |
|
2041 |
|
2001 |
|
96,607 |
|
3,369,153 |
|
0.9% |
|
34.87 |
USFS II - Albuquerque |
|
Albuquerque, NM |
|
Office |
|
2031 |
|
2011 |
|
98,720 |
|
3,351,215 |
|
0.8% |
|
33.95 |
ICE - Charleston |
|
North Charleston, SC |
|
Specialized Facility |
|
2027 |
|
1994 / 2012 |
|
65,124 |
|
3,262,630 |
|
0.8% |
|
50.10 |
18
Leased Operating Property Overview (Cont.) (As of September 30, 2026, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
Annualized |
|
Percentage |
|
Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned U.S. Government Leased Properties (Cont.) |
||||||||||||||||
DEA - Sterling |
|
Sterling, VA |
|
Laboratory |
|
2038 |
|
2001 |
|
57,692 |
|
$3,238,759 |
|
0.8% |
|
$56.14 |
JUD - Del Rio |
|
Del Rio, TX |
|
Federal Courthouse |
|
2041 |
|
1992 / 2004 |
|
89,880 |
|
3,216,180 |
|
0.8% |
|
35.78 |
USCIS - Tustin |
|
Tustin, CA |
|
Office |
|
2034 |
|
1979 / 2019 |
|
66,818 |
|
3,198,547 |
|
0.8% |
|
47.87 |
DEA - Vista |
|
Vista, CA |
|
Laboratory |
|
2035 |
|
2002 |
|
52,293 |
|
3,175,630 |
|
0.8% |
|
60.73 |
VA - Indianapolis |
|
Brownsburg, IN |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
80,000 |
|
3,051,338 |
|
0.8% |
|
38.14 |
VA - Orange |
|
Orange, CT |
|
Outpatient Clinic |
|
2034 |
|
2019 |
|
56,330 |
|
2,961,653 |
|
0.7% |
|
52.58 |
SSA - Charleston |
|
Charleston, WV |
|
Office |
|
2029 |
|
1959 / 2000 |
|
110,000 |
|
2,912,001 |
|
0.7% |
|
26.47 |
ICE - Albuquerque |
|
Albuquerque, NM |
|
Specialized Facility |
|
2027 |
|
2011 |
|
71,100 |
|
2,886,242 |
|
0.7% |
|
40.59 |
JUD - El Centro |
|
El Centro, CA |
|
Federal Courthouse |
|
2034 |
|
2004 |
|
43,345 |
|
2,843,624 |
|
0.7% |
|
65.60 |
DEA - Dallas Lab |
|
Dallas, TX |
|
Laboratory |
|
2038 |
|
2001 |
|
49,723 |
|
2,840,432 |
|
0.7% |
|
57.13 |
DEA - Pleasanton |
|
Pleasanton, CA |
|
Laboratory |
|
2035 |
|
2015 |
|
42,480 |
|
2,803,986 |
|
0.7% |
|
66.01 |
DHS - Burlington |
|
Williston, VT |
|
Specialized Facility |
|
2031(2) |
|
2000 |
|
74,549 |
|
2,792,800 |
|
0.7% |
|
37.46 |
DEA - Upper Marlboro |
|
Upper Marlboro, MD |
|
Laboratory |
|
2037 |
|
2002 |
|
50,978 |
|
2,789,546 |
|
0.7% |
|
54.72 |
DEA - Dallas |
|
Dallas, TX |
|
Specialized Facility |
|
2041 |
|
2001 |
|
71,827 |
|
2,742,744 |
|
0.7% |
|
38.19 |
NARA - Broomfield |
|
Broomfield, CO |
|
Warehouse |
|
2032 |
|
2012 |
|
161,730 |
|
2,684,946 |
|
0.7% |
|
16.60 |
JUD - Jackson |
|
Jackson, TN |
|
Federal Courthouse |
|
2043 |
|
1998 |
|
75,043 |
|
2,680,097 |
|
0.7% |
|
35.71 |
TREAS - Birmingham |
|
Birmingham, AL |
|
Office |
|
2029 |
|
2014 |
|
83,676 |
|
2,647,284 |
|
0.7% |
|
31.64 |
DHS - Atlanta |
|
Atlanta, GA |
|
Specialized Facility |
|
2031 - 2038(6) |
|
2008 / 2023 |
|
96,235 |
|
2,635,485 |
|
0.7% |
|
27.39 |
USAO - Louisville |
|
Louisville, KY |
|
Specialized Facility |
|
2031 |
|
2011 |
|
60,000 |
|
2,566,248 |
|
0.6% |
|
42.77 |
JUD - Charleston |
|
Charleston, SC |
|
Federal Courthouse |
|
2040 |
|
1999 |
|
52,339 |
|
2,491,927 |
|
0.6% |
|
47.61 |
IRS - Ogden |
|
Ogden, UT |
|
Warehouse |
|
2029(7) |
|
1996 |
|
100,000 |
|
2,394,006 |
|
0.6% |
|
23.94 |
CBP - Savannah |
|
Savannah, GA |
|
Laboratory |
|
2033 |
|
2013 |
|
35,000 |
|
2,337,990 |
|
0.6% |
|
66.80 |
Various GSA - Cleveland |
|
Brooklyn Heights, OH |
|
Office |
|
2028 - 2040(8) |
|
1981 / 2021 |
|
61,384 |
|
2,267,525 |
|
0.6% |
|
36.94 |
NWS - Kansas City |
|
Kansas City, MO |
|
Specialized Facility |
|
2033(2) |
|
1998 / 2020 |
|
94,378 |
|
2,180,189 |
|
0.6% |
|
23.10 |
ICE - Orlando |
|
Orlando, FL |
|
Specialized Facility |
|
2040 |
|
1996 / 2010 |
|
49,420 |
|
2,136,063 |
|
0.5% |
|
43.22 |
DEA - Santa Ana |
|
Santa Ana, CA |
|
Specialized Facility |
|
2029 |
|
2004 |
|
39,905 |
|
2,070,469 |
|
0.5% |
|
51.88 |
GSA - Clarksburg |
|
Clarksburg, WV |
|
Office |
|
2039(2) |
|
1999 |
|
70,495 |
|
1,958,481 |
|
0.5% |
|
27.78 |
JUD - Aberdeen |
|
Aberdeen, MS |
|
Federal Courthouse |
|
2040 |
|
2005 |
|
45,194 |
|
1,948,573 |
|
0.5% |
|
43.12 |
DEA - North Highlands |
|
Sacramento, CA |
|
Specialized Facility |
|
2033 |
|
2002 |
|
37,975 |
|
1,907,525 |
|
0.5% |
|
50.23 |
NPS - Omaha |
|
Omaha, NE |
|
Specialized Facility |
|
2029 |
|
2004 |
|
62,772 |
|
1,899,374 |
|
0.5% |
|
30.26 |
DEA - Riverside |
|
Riverside, CA |
|
Specialized Facility |
|
2032 |
|
1997 |
|
34,354 |
|
1,889,093 |
|
0.5% |
|
54.99 |
VA - Golden |
|
Golden, CO |
|
Warehouse |
|
2036(2) |
|
1996 / 2011 |
|
59,792 |
|
1,849,540 |
|
0.5% |
|
30.93 |
JUD - Newport News |
|
Newport News, VA |
|
Federal Courthouse |
|
2033 |
|
2008 |
|
35,005 |
|
1,692,492 |
|
0.4% |
|
48.35 |
USCG - Martinsburg |
|
Martinsburg, WV |
|
Specialized Facility |
|
2027 |
|
2007 |
|
59,547 |
|
1,652,084 |
|
0.4% |
|
27.74 |
DEA - Birmingham |
|
Birmingham, AL |
|
Specialized Facility |
|
2038 |
|
2005 |
|
35,616 |
|
1,632,111 |
|
0.4% |
|
45.83 |
JUD - Council Bluffs |
|
Council Bluffs, IA |
|
Federal Courthouse |
|
2041(7) |
|
2021 |
|
28,900 |
|
1,430,087 |
|
0.4% |
|
49.48 |
USAO - Springfield |
|
Springfield, IL |
|
Specialized Facility |
|
2038 |
|
2002 |
|
43,600 |
|
1,408,680 |
|
0.4% |
|
32.31 |
19
Leased Operating Property Overview (Cont.) (As of September 30, 2026, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
Annualized |
|
Percentage |
|
Annualized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned U.S. Government Leased Properties (Cont.) |
||||||||||||||||
VA - Charleston |
|
North Charleston, SC |
|
Warehouse |
|
2040 |
|
2020 |
|
97,718 |
|
$1,389,771 |
|
0.4% |
|
$14.22 |
DEA - Albany |
|
Albany, NY |
|
Specialized Facility |
|
2042 |
|
2004 |
|
31,976 |
|
1,198,254 |
|
0.3% |
|
37.47 |
HSI - Orlando |
|
Orlando, FL |
|
Specialized Facility |
|
2036 |
|
2006 |
|
27,840 |
|
1,123,185 |
|
0.3% |
|
40.34 |
SSA - Dallas |
|
Dallas, TX |
|
Specialized Facility |
|
2035 |
|
2005 |
|
27,200 |
|
1,083,262 |
|
0.3% |
|
39.83 |
JUD - South Bend |
|
South Bend, IN |
|
Federal Courthouse |
|
2027 |
|
1996 / 2011 |
|
30,119 |
|
837,437 |
|
0.2% |
|
27.80 |
ICE - Louisville |
|
Louisville, KY |
|
Specialized Facility |
|
2036 |
|
2011 |
|
17,420 |
|
782,609 |
|
0.2% |
|
44.93 |
DEA - San Diego |
|
San Diego, CA |
|
Warehouse |
|
2032 |
|
1999 |
|
16,100 |
|
569,961 |
|
0.1% |
|
35.40 |
DEA - Bakersfield |
|
Bakersfield, CA |
|
Specialized Facility |
|
2038 |
|
2000 |
|
9,800 |
|
502,549 |
|
0.1% |
|
51.28 |
SSA - San Diego |
|
San Diego, CA |
|
Specialized Facility |
|
2032 |
|
2003 |
|
10,059 |
|
458,846 |
|
0.1% |
|
45.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
|
|
|
|
|
|
|
8,064,666 |
|
$294,872,253 |
|
74.6% |
|
$36.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned State and Local Government Leased Property |
||||||||||||||||
DC - Capitol Plaza |
|
Washington, DC |
|
Office |
|
2027 - 2038(9) |
|
2006 |
|
280,485 |
|
$17,593,797 |
|
4.4% |
|
$62.73 |
Wake County III - Cary |
|
Cary, NC |
|
Office |
|
2027 / 2034(10) |
|
1997 |
|
113,722 |
|
3,508,330 |
|
0.9% |
|
30.85 |
CA - Anaheim |
|
Anaheim, CA |
|
Office |
|
2033 / 2034 |
|
1991 / 2020 |
|
95,273 |
|
3,364,379 |
|
0.9% |
|
35.31 |
SVA - Glen Allen I |
|
Glen Allen, VA |
|
Office |
|
2034(7) |
|
1999 |
|
127,500 |
|
3,100,670 |
|
0.8% |
|
24.32 |
Wake County II - Cary |
|
Cary, NC |
|
Office |
|
2034(11) |
|
1994 |
|
98,340 |
|
3,007,735 |
|
0.8% |
|
30.59 |
NM - Albuquerque |
|
Albuquerque, NM |
|
Office |
|
2036(7) |
|
2006 |
|
81,423 |
|
2,342,930 |
|
0.6% |
|
28.77 |
Wake County I - Cary |
|
Cary, NC |
|
Office |
|
2034(11) |
|
1991 |
|
75,401 |
|
2,226,569 |
|
0.5% |
|
29.53 |
SVA - Glen Allen II |
|
Glen Allen, VA |
|
Office |
|
2036(7) |
|
1999 |
|
46,147 |
|
1,094,415 |
|
0.3% |
|
23.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
|
|
|
|
|
|
|
918,291 |
|
$36,238,825 |
|
9.2% |
|
$39.46 |
20
Leased Operating Property Overview (Cont.) (As of September 30, 2026, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
Annualized |
|
Percentage |
|
Annualized |
Wholly Owned Privately Leased Property |
||||||||||||||||
York Space Systems - Greenwood Village |
|
Greenwood Village, CO |
|
Specialized Facility |
|
2031(5) |
|
1982 / 2020 |
|
138,125 |
|
$4,719,588 |
|
1.1% |
|
$34.17 |
SVA - Glen Allen III |
|
Glen Allen, VA |
|
Office |
|
2027 - 2031(12) |
|
1999 |
|
124,066 |
|
2,975,104 |
|
0.8% |
|
23.98 |
Northrop Grumman - Dayton |
|
Beavercreek, OH |
|
Specialized Facility |
|
2029(7) |
|
2012 |
|
99,246 |
|
2,588,312 |
|
0.7% |
|
26.08 |
Northrop Grumman - Aurora |
|
Aurora, CO |
|
Specialized Facility |
|
2032(7) |
|
2002 |
|
104,136 |
|
2,368,386 |
|
0.6% |
|
22.74 |
501 East Hunter Street - Lummus Corporation |
|
Lubbock, TX |
|
Warehouse |
|
2028(7) |
|
2013 |
|
70,078 |
|
410,164 |
|
0.1% |
|
5.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
|
|
|
|
|
|
|
|
535,651 |
|
$13,061,554 |
|
3.3% |
|
$24.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholly Owned Properties Total / Weighted Average |
|
|
|
9,518,608 |
|
$344,172,632 |
|
87.1% |
|
$36.16 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Leased to Unconsolidated Real Estate Venture |
||||||||||||||||
VA - Phoenix(13) |
|
Phoenix, AZ |
|
Outpatient Clinic |
|
2042 |
|
2022 |
|
257,294 |
|
$10,850,231 |
|
2.7% |
|
$42.17 |
VA - San Antonio(13) |
|
San Antonio, TX |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
226,148 |
|
9,271,825 |
|
2.3% |
|
41.00 |
VA - Jacksonville(13) |
|
Jacksonville, FL |
|
Outpatient Clinic |
|
2043 |
|
2023 |
|
193,100 |
|
7,731,086 |
|
2.0% |
|
40.04 |
VA - Chattanooga(13) |
|
Chattanooga, TN |
|
Outpatient Clinic |
|
2035 |
|
2020 |
|
94,566 |
|
4,310,316 |
|
1.1% |
|
45.58 |
VA - Lubbock(13)(14) |
|
Lubbock, TX |
|
Outpatient Clinic |
|
2040 |
|
2020 |
|
120,916 |
|
4,250,332 |
|
1.1% |
|
35.15 |
VA - Marietta(13) |
|
Marietta, GA |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
76,882 |
|
3,880,745 |
|
1.0% |
|
50.48 |
VA - Birmingham(13) |
|
Irondale, AL |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
77,128 |
|
3,212,594 |
|
0.8% |
|
41.65 |
VA - Corpus Christi(13) |
|
Corpus Christi, TX |
|
Outpatient Clinic |
|
2042 |
|
2022 |
|
69,276 |
|
2,994,311 |
|
0.8% |
|
43.22 |
VA - Columbus(13) |
|
Columbus, GA |
|
Outpatient Clinic |
|
2042 |
|
2022 |
|
67,793 |
|
2,981,857 |
|
0.8% |
|
43.98 |
VA - Lenexa(13) |
|
Lenexa, KS |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
31,062 |
|
1,347,188 |
|
0.3% |
|
43.37 |
Subtotal |
|
|
|
|
|
|
|
|
|
1,214,165 |
|
$50,830,485 |
|
12.9% |
|
$41.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total / Weighted Average |
|
10,732,773 |
|
$395,003,117 |
|
100.0% |
|
$36.80 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total / Weighted Average at Easterly's Share |
|
|
|
|
|
10,162,114 |
|
$371,112,789 |
|
|
|
$36.52 |
||||
(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. 62,165 square feet leased to three private tenants will expire between 2027-2030 and each contains renewal options.
(2) Lease contains one five-year renewal option.
(3) 33,407 square feet leased to the U.S. Army Corps of Engineers ("ACOE") will expire on February 19, 2030 and contains one five-year renewal options. 21,646 square feet leased to the Federal Bureau of Investigation ("FBI") will expire on December 31, 2029 and contains one five-year renewal option. 13,188 square feet leased to five private tenants will expire between 2027-2036 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) 80,523 square feet leased to the U.S. Immigration and Customs Enforcement ("ICE") will expire on September 14, 2040. 29,074 square feet leased to a private tenant will expire on September 30, 2032 and contains one five-year renewal option. 25,603 square feet leased to a private tenant will expire on January 31, 2032 and contains one five-year renewal option.
(5) Lease contains one ten-year renewal option.
(6) 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. 49,125 square feet leased to the Transportation Security Administration ("TSA") will expire on December 14, 2038 and contains one five-year renewal option.
21
Leased Operating Property Overview (Cont.) (As of September 30, 2026, unaudited) |
|
|
|
(7) Lease contains two five-year renewal options.
(8) 40,502 square feet leased to the U.S. Immigration and Customs Enforcement ("ICE") will expire on August 31, 2031. 11,402 square feet leased to a private tenant will expire on December 31, 2028 and contains two five-year renewal options. 9,480 square feet leased to the U.S. National Oceanic and Atmospheric Administration ("NOAA") will expire on September 13, 2040.
(9) 238,062 square feet leased to the District of Columbia Government will expire on February 28, 2038 and contains one five-year renewal option. 16,096 square feet leased to three private tenants will expire between 2027-2031 and each contains renewal options. 26,327 square feet leased to the Internal Revenue Service ("IRS") will expire on December 21, 2029.
(10) 75,864 square feet leased to Wake County Public School System will expire on June 30, 2034 and contains two eight-year renewal options. 37,858 square feet leased to a private tenant will expire on December 31, 2027 and contains one five-year renewal option.
(11) Lease contains two eight-year renewal options.
(12) 124,066 square feet leased to three private tenants will expire between 2027-2031 and each contains renewal options.
(13) The Company owns 53.0% of the property through an unconsolidated joint venture.
(14) Asset is subject to a ground lease where the unconsolidated joint venture is the lessee.
22
Tenants (As of September 30, 2026, unaudited) |
|
|
|
Tenant |
|
Weighted |
|
Leased |
|
Percentage |
|
Annualized |
|
Percentage |
|
|
|
|
|
|
|
|
|
|
|
U.S. Government |
|
|
|
|
|
|
|
|
|
|
Department of Veterans Affairs ("VA") |
|
12.7 |
|
2,254,170 |
|
20.9% |
|
$97,730,484 |
|
24.8% |
Federal Bureau of Investigation ("FBI") |
|
9.4 |
|
1,498,607 |
|
13.9% |
|
55,843,740 |
|
14.1% |
Drug Enforcement Administration ("DEA") |
|
9.0 |
|
607,290 |
|
5.6% |
|
29,304,066 |
|
7.4% |
Judiciary of the U.S. ("JUD") |
|
12.4 |
|
399,825 |
|
3.6% |
|
17,140,417 |
|
4.3% |
Food and Drug Administration ("FDA") |
|
16.6 |
|
291,314 |
|
2.6% |
|
16,461,530 |
|
4.2% |
Immigration and Customs Enforcement ("ICE") |
|
6.6 |
|
388,386 |
|
3.6% |
|
15,509,915 |
|
3.9% |
U.S. Citizenship and Immigration Services ("USCIS") |
|
14.3 |
|
520,807 |
|
4.9% |
|
15,505,703 |
|
3.9% |
Internal Revenue Service ("IRS") |
|
5.3 |
|
359,661 |
|
3.4% |
|
12,108,892 |
|
3.1% |
Environmental Protection Agency ("EPA") |
|
4.9 |
|
225,418 |
|
2.1% |
|
9,402,968 |
|
2.4% |
U.S. Joint Staff Command ("JSC") |
|
1.7 |
|
403,737 |
|
3.8% |
|
8,665,537 |
|
2.2% |
Federal Aviation Administration ("FAA") |
|
0.8 |
|
188,768 |
|
1.8% |
|
7,925,559 |
|
2.0% |
Bureau of the Fiscal Service ("BFS") |
|
10.9 |
|
266,176 |
|
2.5% |
|
7,087,934 |
|
1.8% |
Social Security Administration ("SSA") |
|
6.3 |
|
192,185 |
|
1.8% |
|
5,702,199 |
|
1.4% |
Patent and Trademark Office ("PTO") |
|
8.3 |
|
190,546 |
|
1.8% |
|
5,350,786 |
|
1.4% |
Federal Emergency Management Agency ("FEMA") |
|
12.0 |
|
210,373 |
|
2.0% |
|
4,668,336 |
|
1.2% |
U.S. Attorney Office ("USAO") |
|
8.2 |
|
110,776 |
|
1.0% |
|
4,174,294 |
|
1.1% |
Department of Transportation ("DOT") |
|
12.7 |
|
116,046 |
|
1.1% |
|
3,622,432 |
|
0.9% |
U.S. Forest Service ("USFS") |
|
4.8 |
|
98,720 |
|
0.9% |
|
3,351,215 |
|
0.8% |
Customs and Border Protection ("CBP") |
|
8.9 |
|
64,737 |
|
0.6% |
|
3,286,192 |
|
0.8% |
National Archives and Records Administration ("NARA") |
|
5.6 |
|
161,730 |
|
1.5% |
|
2,684,946 |
|
0.7% |
National Weather Service ("NWS") |
|
7.2 |
|
94,378 |
|
0.9% |
|
2,180,189 |
|
0.6% |
National Park Service ("NPS") |
|
2.7 |
|
62,772 |
|
0.6% |
|
1,899,374 |
|
0.5% |
U.S. Department of Agriculture ("USDA") |
|
1.3 |
|
60,257 |
|
0.6% |
|
1,891,647 |
|
0.5% |
U.S. Coast Guard ("USCG") |
|
1.2 |
|
59,547 |
|
0.6% |
|
1,652,084 |
|
0.4% |
National Oceanic and Atmospheric Administration ("NOAA") |
|
4.9 |
|
33,403 |
|
0.3% |
|
1,417,817 |
|
0.4% |
Transportation Security Administration ("TSA") |
|
7.2 |
|
49,125 |
|
0.5% |
|
1,180,378 |
|
0.3% |
Homeland Security Investigations ("HSI") |
|
9.5 |
|
27,840 |
|
0.3% |
|
1,123,185 |
|
0.3% |
Small Business Administration ("SBA") |
|
12.8 |
|
44,969 |
|
0.4% |
|
1,057,499 |
|
0.3% |
U.S. Army Corps of Engineers ("ACOE") |
|
3.4 |
|
33,407 |
|
0.3% |
|
972,324 |
|
0.2% |
General Services Administration - Other |
|
7.6 |
|
33,365 |
|
0.3% |
|
843,482 |
|
0.2% |
Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") |
|
6.4 |
|
23,775 |
|
0.2% |
|
821,816 |
|
0.2% |
23
Tenants (Cont.) (As of September 30, 2026, unaudited) |
|
|
|
Tenant |
|
Weighted |
|
Leased |
|
Percentage |
|
Annualized |
|
Percentage |
|
|
|
|
|
|
|
|
|
|
|
U.S. Government (Cont.) |
|
|
|
|
|
|
|
|
|
|
Department of Energy ("DOE") |
|
6.5 |
|
4,846 |
|
0.0% |
|
$277,782 |
|
0.1% |
Federal Energy Regulatory Commission ("FERC") |
|
12.9 |
|
6,214 |
|
0.1% |
|
237,482 |
|
0.1% |
U.S. Probation Office ("USPO") |
|
12.3 |
|
6,621 |
|
0.1% |
|
183,957 |
|
0.0% |
U.S. Marshals Service ("USMS") |
|
0.3 |
|
1,054 |
|
0.0% |
|
48,789 |
|
0.0% |
Department of Labor ("DOL") |
|
12.3 |
|
574 |
|
0.0% |
|
15,954 |
|
0.0% |
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
9.6 |
|
9,091,419 |
|
84.6% |
|
$341,330,904 |
|
86.5% |
|
|
|
|
|
|
|
|
|
|
|
State and Local Government |
|
|
|
|
|
|
|
|
|
|
District of Columbia Government |
|
11.4 |
|
238,062 |
|
2.2% |
|
$15,139,998 |
|
3.8% |
Wake County Public Schools |
|
7.8 |
|
249,605 |
|
2.3% |
|
7,602,320 |
|
1.9% |
Commonwealth of Virginia |
|
8.3 |
|
173,647 |
|
1.6% |
|
4,195,085 |
|
1.1% |
State of New Mexico Health Care Authority |
|
10.3 |
|
81,423 |
|
0.8% |
|
2,342,930 |
|
0.6% |
State of California Employee Development Department |
|
7.4 |
|
65,133 |
|
0.6% |
|
2,296,631 |
|
0.6% |
State of California Department of Industrial Relations |
|
7.1 |
|
30,140 |
|
0.3% |
|
1,067,748 |
|
0.3% |
New York State Court of Claims |
|
10.0 |
|
14,274 |
|
0.1% |
|
447,550 |
|
0.1% |
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
9.1 |
|
852,284 |
|
7.9% |
|
$33,092,262 |
|
8.4% |
|
|
|
|
|
|
|
|
|
|
|
Private Tenants |
|
|
|
|
|
|
|
|
|
|
Northrop Grumman Systems Corporation |
|
4.2 |
|
203,382 |
|
1.9% |
|
$4,956,698 |
|
1.3% |
York Space Systems |
|
5.3 |
|
138,125 |
|
1.3% |
|
4,719,588 |
|
1.2% |
Other Private Tenants |
|
3.5 |
|
67,127 |
|
0.6% |
|
2,108,475 |
|
0.5% |
ChemTreat |
|
5.3 |
|
94,456 |
|
0.9% |
|
1,991,327 |
|
0.5% |
Caremark, L.L.C |
|
3.8 |
|
41,462 |
|
0.4% |
|
1,371,946 |
|
0.3% |
Jacobs Engineering Group, Inc. |
|
1.3 |
|
37,858 |
|
0.4% |
|
1,140,314 |
|
0.3% |
Intercontinental Exchange |
|
3.3 |
|
27,488 |
|
0.3% |
|
926,356 |
|
0.2% |
Pate Rehabilitation Endeavors, LLC |
|
5.3 |
|
25,603 |
|
0.2% |
|
862,947 |
|
0.2% |
HUB International Midwest Limited |
|
6.0 |
|
29,074 |
|
0.3% |
|
844,637 |
|
0.2% |
Saint Luke's Health System, Inc. |
|
1.3 |
|
32,043 |
|
0.3% |
|
777,439 |
|
0.2% |
University of Central Missouri |
|
5.7 |
|
22,374 |
|
0.2% |
|
470,060 |
|
0.1% |
Lummus Corporation |
|
1.8 |
|
70,078 |
|
0.7% |
|
410,164 |
|
0.1% |
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
|
4.1 |
|
789,070 |
|
7.5% |
|
$20,579,951 |
|
5.1% |
|
|
|
|
|
|
|
|
|
|
|
Total / Weighted Average |
|
9.2 |
|
10,732,773 |
|
100.0% |
|
$395,003,117 |
|
100.0% |
(1) Weighted based on leased square feet.
24
Lease Expirations (As of September 30, 2026, unaudited) |
|
|
|
Year of Lease Expiration (1) |
|
Number of |
|
Leased Square |
|
Percentage of |
|
Annualized |
|
Percentage of |
|
Annualized |
2027 |
|
13 |
|
761,371 |
|
7.1% |
|
$28,847,107 |
|
7.3% |
|
$37.89 |
2028 |
|
12 |
|
905,036 |
|
8.4% |
|
22,352,713 |
|
5.7% |
|
24.70 |
2029 |
|
10 |
|
757,363 |
|
7.1% |
|
24,946,345 |
|
6.3% |
|
32.94 |
2030 |
|
6 |
|
95,888 |
|
0.9% |
|
2,789,150 |
|
0.7% |
|
29.09 |
2031 |
|
9 |
|
544,416 |
|
5.1% |
|
18,460,375 |
|
4.7% |
|
33.91 |
2032 |
|
11 |
|
712,188 |
|
6.6% |
|
22,470,883 |
|
5.7% |
|
31.55 |
2033 |
|
10 |
|
571,247 |
|
5.3% |
|
22,486,479 |
|
5.7% |
|
39.36 |
2034 |
|
12 |
|
639,124 |
|
6.0% |
|
24,635,426 |
|
6.2% |
|
38.55 |
2035 |
|
6 |
|
429,138 |
|
4.0% |
|
17,183,471 |
|
4.4% |
|
40.04 |
Thereafter |
|
59 |
|
5,317,002 |
|
49.5% |
|
210,831,168 |
|
53.3% |
|
39.65 |
Total / Weighted Average |
|
148 |
|
10,732,773 |
|
100.0% |
|
$395,003,117 |
|
100.0% |
|
$36.80 |
(1) The year of lease expiration is pursuant to current contract terms. Some U.S. government tenants have the right to vacate their space during a specified period, or "soft term," before the stated terms of their leases expire. As of September 30, 2026, six U.S. government tenants occupying approximately 2.3% of our leased square feet and contributing approximately 2.3% of our annualized lease income are currently operating under lease provisions that allow them to exercise their right to terminate their lease before the stated term of their respective lease expires.
25
Lease Expirations (As of September 30, 2026, unaudited) |
|
|
|
26
Summary of Re/Development Projects (As of September 30, 2026, unaudited, in thousands, except square feet) |
|
|
|
Projects Under Construction (1) |
||||||||||||||||
Property Name |
|
Location |
|
Property Type |
|
Total Leased Square Feet |
|
Lease Term |
|
Cost to Date |
|
Anticipated Lump-Sum Reimbursement (2) |
|
Anticipated Completion Date |
|
Anticipated Lease Commencement |
FL - Fort Myers (3) |
|
Fort Myers, FL |
|
Laboratory |
|
64,000 |
|
25-Year |
|
$49,166 |
|
$- |
|
4Q 2026 |
|
4Q 2026 |
JUD - Flagstaff |
|
Flagstaff, AZ |
|
Courthouse |
|
50,777 |
|
20-Year |
|
52,221 |
|
33,034 |
|
1Q 2027 |
|
1Q 2027 |
JUD - Medford |
|
Medford, OR |
|
Courthouse |
|
40,035 |
|
20-Year |
|
17,455 |
|
20,290 |
|
1H 2028 |
|
1H 2028 |
Total |
|
|
|
|
|
154,812 |
|
|
|
$118,842 |
|
$53,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects Previously Completed with Outstanding Lump-Sum Reimbursements |
|
|
||||||||||||||
Property Name |
|
Location |
|
Property Type |
|
Total Leased Square Feet |
|
Lease Term |
|
Outstanding Lump-Sum Reimbursement (2) |
|
Completion Date |
|
Lease Commencement |
|
|
FDA - Atlanta (4) |
|
Atlanta, GA |
|
Laboratory |
|
162,000 |
|
20-Year |
|
$1,181 |
|
4Q 2025 |
|
4Q 2025 |
|
|
(1) Includes properties under construction for which design is complete.
(2) Includes reimbursement of lump-sum tenant improvement costs and development fees.
(3) In October 2026, all significant construction activities were completed at the FL - Fort Myers laboratory.
(4) Total lump sum reimbursements received for the project as of September 30, 2026 are $153.4 million.
27