0001564590-21-053536 | 10-Q | XBRL Viewer | Easterly Government Properties INC

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Oct. 26, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Trading Symbol	DEA
Entity Registrant Name	EASTERLY GOVERNMENT PROPERTIES, INC.
Entity Central Index Key	0001622194
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-36834
Entity Tax Identification Number	47-2047728
Entity Address, Address Line One	2001 K Street NW
Entity Address, Address Line Two	Suite 775 North
Entity Address, City or Town	Washington
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20006
City Area Code	202
Local Phone Number	595-9500
Entity Common Stock, Shares Outstanding		86,138,038
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	MD
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Real estate properties, net	$ 2,287,208	$ 2,208,661
Cash and cash equivalents	16,068	8,465
Restricted cash	7,680	6,204
Tenant accounts receivable	52,789	45,077
Intangible assets, net	157,906	163,387
Prepaid expenses and other assets	34,319	25,746
Total assets	2,555,970	2,457,540
Liabilities
Revolving credit facility	112,500	79,250
Term loan facilities, net	248,479	248,966
Notes payable, net	447,215	447,171
Mortgage notes payable, net	200,021	202,871
Intangible liabilities, net	20,686	25,406
Deferred revenue	89,077	92,576
Interest rate swaps	8,506	12,781
Accounts payable, accrued expenses and other liabilities	58,776	48,549
Total liabilities	1,185,260	1,157,570
Equity
Common stock, par value $0.01, 200,000,000 shares authorized, 86,116,538 and 82,106,256 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	861	821
Additional paid-in capital	1,521,446	1,424,787
Retained earnings	55,134	31,965
Cumulative dividends	(357,069)	(291,652)
Accumulated other comprehensive loss	(7,526)	(11,351)
Total stockholders’ equity	1,212,846	1,154,570
Non-controlling interest in Operating Partnership	157,864	145,400
Total equity	1,370,710	1,299,970
Total liabilities and equity	$ 2,555,970	$ 2,457,540

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares issued	86,116,538	82,106,256
Common Stock, shares outstanding	86,116,538	82,106,256

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Rental income	$ 67,439	$ 59,843	$ 197,713	$ 175,976
Total revenues	69,608	61,131	203,223	179,875
Expenses
Property operating	15,188	12,313	41,578	34,486
Real estate taxes	7,626	6,803	22,465	19,982
Depreciation and amortization	22,765	23,522	67,615	70,732
Acquisition costs	518	467	1,488	1,673
Corporate general and administrative	5,893	4,577	17,469	15,565
Total expenses	51,990	47,682	150,615	142,438
Other expense
Interest expense, net	(9,353)	(8,628)	(27,739)	(26,535)
Gain on the sale of operating property	777		1,307
Net income	9,042	4,821	26,176	10,902
Non-controlling interest in Operating Partnership	(1,065)	(557)	(3,007)	(1,275)
Net income available to Easterly Government Properties, Inc.	$ 7,977	$ 4,264	$ 23,169	$ 9,627
Net income available to Easterly Government Properties, Inc. per share:
Basic	$ 0.09	$ 0.05	$ 0.27	$ 0.12
Diluted	$ 0.09	$ 0.05	$ 0.27	$ 0.12
Weighted-average common shares outstanding
Basic	83,961,693	80,334,976	83,306,654	77,144,791
Diluted	84,472,257	80,928,844	83,774,752	77,745,370
Dividends declared per common share	$ 0.265	$ 0.260	$ 0.785	$ 0.780
Tenant Reimbursements [Member]
Revenues
Total revenues	$ 1,527	$ 682	$ 3,746	$ 2,269
Other Income [Member]
Revenues
Total revenues	$ 642	$ 606	$ 1,764	$ 1,630

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 9,042	$ 4,821	$ 26,176	$ 10,902
Other comprehensive income (loss):
Unrealized gain (loss) on interest rate swaps, net	1,180	1,232	4,275	(8,880)
Other comprehensive income (loss)	1,180	1,232	4,275	(8,880)
Comprehensive income	10,222	6,053	30,451	2,022
Non-controlling interest in Operating Partnership	(1,065)	(557)	(3,007)	(1,275)
Other comprehensive (income) loss attributable to non-controlling interest	(167)	(184)	(450)	1,000
Comprehensive income attributable to Easterly Government Properties, Inc.	$ 8,990	$ 5,312	$ 26,994	$ 1,747

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net income	$ 26,176	$ 10,902
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	67,615	70,732
Straight line rent	(4,317)	(2,106)
Amortization of above- / below-market leases	(3,569)	(4,499)
Amortization of unearned revenue	(4,217)	(2,138)
Amortization of loan premium / discount	(57)	(59)
Amortization of deferred financing costs	1,164	1,137
Amortization of lease inducements	647	661
Gain on the sale of operating property	(1,307)
Non-cash compensation	3,700	3,056
Other	69	46
Net change in:
Tenant accounts receivable	(3,217)	(17,675)
Prepaid expenses and other assets	(4,890)	(10,169)
Deferred revenue associated with operating leases	761	41,654
Accounts payable, accrued expenses and other liabilities	15,901	17,083
Net cash provided by operating activities	94,459	108,625
Cash flows from investing activities
Real estate acquisitions and deposits	(115,440)	(130,107)
Additions to operating properties	(14,070)	(12,954)
Additions to development properties	(5,278)	(38,255)
Proceeds from sale of operating property, net	7,336
Net cash used in investing activities	(127,452)	(181,316)
Cash flows from financing activities
Payment of deferred financing costs	(3,575)
Issuance of common shares	90,914	143,201
Credit facility draws	159,500	183,500
Credit facility repayments	(126,250)	(183,500)
Repayments of mortgage notes payable	(2,948)	(2,635)
Dividends and distributions paid	(74,106)	(67,884)
Payment of offering costs	(1,463)	(1,666)
Net cash provided by financing activities	42,072	71,016
Net increase (decrease) in Cash and cash equivalents and Restricted cash	9,079	(1,675)
Cash and cash equivalents and Restricted cash, beginning of period	14,669	15,549
Cash and cash equivalents and Restricted cash, end of period	23,748	13,874
Supplemental disclosure of cash flow information is as follows (amounts in thousands):
Cash paid for interest, net of capitalized interest	27,395	26,356
Supplemental disclosure of non-cash information
Offering costs accrued, not paid	16	30
Deferred asset acquisition costs accrued, not paid	144	70
Contingent consideration accrued, not paid	336	336
Unrealized gain (loss) on interest rate swaps, net	4,275	(8,880)
Properties acquired for Common Units	20,790	21,550
Exchange of Common Units for Shares of Common Stock
Non-controlling interest in Operating Partnership	(4,261)	(3,076)
Common stock	3	2
Additional paid-in capital	4,258	3,074
Operating Properties [Member]
Supplemental disclosure of non-cash information
Additions to properties accrued, not paid	1,029	2,318
Development Properties [Member]
Supplemental disclosure of non-cash information
Additions to properties accrued, not paid	$ 1,022	$ 8,309

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Organization and Basis of Presentation

1. Organization and Basis of Presentation

The information contained in the following notes to the consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2020, and related notes thereto, included in the Annual Report on Form 10-K of Easterly Government Properties, Inc. (the “Company”) for the year ended December 31, 2020 filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 24, 2021.

The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2015. The operations of the Company are carried on primarily through Easterly Government Properties LP (the “Operating Partnership”) and the wholly owned subsidiaries of the Operating Partnership. As used herein, the “Company,” “we,” “us,” or “our” refer to Easterly Government Properties, Inc. and its consolidated subsidiaries and partnerships, including the Operating Partnership, except where context otherwise requires.

We are an internally managed REIT, focused primarily on the acquisition, development, and management of Class A commercial properties that are leased to U.S. Government agencies that serve essential functions. We generate substantially all of our revenue by leasing our properties to such agencies, either directly or through the U.S. General Services Administration (“GSA”). Our objective is to generate attractive risk-adjusted returns for our stockholders over the long-term through dividends and capital appreciation.

We focus on acquiring, developing and managing U.S. Government leased properties that are essential to supporting the mission of the tenant agency and strive to be a partner of choice for the U.S. Government, working closely with the tenant agency to meet its needs and objectives. As of September 30, 2021, we wholly owned 83 operating properties in the United States, encompassing approximately 7.5 million leased square feet in the aggregate, including 82 operating properties that were leased primarily to U.S. Government tenant agencies and one operating property that was entirely leased to a private tenant. As of September 30, 2021, our operating properties were 99% leased. For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned one property under development that we expect will encompass approximately 0.2 million leased square feet upon completion.

The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of the Operating Partnership. We owned approximately 88.5% of the aggregate limited partnership interests in the Operating Partnership (“common units”) at September 30, 2021. We believe that we have operated and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015.

Principles of Consolidation

The accompanying consolidated financial statements are presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company, Easterly Government Properties TRS, LLC, Easterly Government Services, LLC, the Operating Partnership and its other subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to state fairly the consolidated financial position of the Company at September 30, 2021 and December 31, 2020, the consolidated results of operations for the three and nine months ended September 30, 2021 and 2020, and the consolidated cash flows for the nine months ended September 30, 2021 and 2020. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, including the impact of extraordinary events such as the

novel coronavirus (COVID-19) pandemic, the results of which form the basis for making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

The significant accounting policies used in the preparation of the Company’s condensed consolidated financial statements are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Real Estate and Intangibles

9 Months Ended

Sep. 30, 2021

Real Estate [Abstract]

Real Estate and Intangibles

3. Real Estate and Intangibles

Acquisitions

During the nine months ended September 30, 2021, we acquired six operating properties in asset acquisitions, consisting of FBI – Knoxville, ICE – Louisville, USAO – Louisville, USAO – Springfield, NWS – Kansas City and VAR – Cleveland for an aggregate purchase price of $134.0 million. We allocated the aggregate purchase price of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands):

	Total
Real estate
Land	$	6,186
Building		103,214
Acquired tenant improvements		9,539
Total real estate		118,939
Intangible assets
In-place leases		11,325
Acquired leasing commissions		3,436
Above-market leases		301
Total intangible assets		15,062
Intangible liabilities
Below-market leases		(1	)
Total intangible liabilities		(1	)
Purchase price	$	134,000

We did not assume any debt upon acquisition of these properties. The intangible assets and liabilities of operating properties acquired during the nine months ended September 30, 2021 have a weighted average amortization period of 10.78 years as of September 30, 2021. During the nine months ended September 30, 2021, we included $5.4 million of revenues and $1.2 million of net income in our Consolidated Statements of Operations related to the operating properties acquired.

During the nine months ended September 30, 2021, we incurred $1.5 million of acquisition-related expenses mainly consisting of internal costs associated with property acquisitions.

Dispositions

On June 4, 2021, we sold SSA – Mission Viejo to a third party. Net proceeds from the sale of operating property were approximately $3.3 million and we recognized a gain on the sale of operating property of approximately $0.5 million for the nine months ended September 30, 2021.

On September 28, 2021, we sold United Technologies – Midland to a third party. Net proceeds from the sale of operating property were approximately $4.0 million and we recognized a gain on the sale of operating property of approximately $0.8 million for the nine months ended September 30, 2021.

Consolidated Real Estate and Intangibles

Real estate and intangibles consisted of the following as of September 30, 2021 (amounts in thousands):

	Total
Real estate properties, net
Land	$	218,091
Building and improvements		2,215,548
Acquired tenant improvements		85,795
Construction in progress		28,060
Accumulated depreciation		(260,286	)
Total Real estate properties, net		2,287,208
Intangible assets, net
In-place leases		264,991
Acquired leasing commissions		64,489
Above market leases		17,541
Accumulated amortization		(189,115	)
Total Intangible assets, net		157,906
Intangible liabilities, net
Below market leases		(73,483	)
Accumulated amortization		52,797
Total Intangible liabilities, net	$	(20,686	)

The following table summarizes the scheduled amortization of the Company’s acquired above- and below-market lease intangibles for each of the five succeeding years as of September 30, 2021 (amounts in thousands):

	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2021	$	374	$	(1,134	)
2022		1,413		(4,201	)
2023		1,390		(4,024	)
2024		1,341		(2,877	)
2025		1,286		(2,170	)

Above-market lease amortization reduces Rental income on our Consolidated Statements of Operations and below-market lease amortization increases Rental income on our Consolidated Statements of Operations.

Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

4. Debt

At September 30, 2021, our consolidated borrowings consisted of the following (amounts in thousands):

	Principal Outstanding			Interest	Current
Loan	September 30, 2021			Rate ⁽¹⁾	Maturity
Revolving credit facility:
Revolving credit facility ⁽²⁾	$	112,500		L + 125bps	July 2025 ⁽³⁾
Total revolving credit facility		112,500

Term loan facilities:
2016 term loan facility		100,000		2.67% ⁽⁴⁾	March 2024
2018 term loan facility		150,000		3.91% ⁽⁵⁾	July 2026
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,521	)
Total term loan facilities, net		248,479

Notes payable:
2017 series A senior notes		95,000		4.05%	May 2027
2017 series B senior notes		50,000		4.15%	May 2029
2017 series C senior notes		30,000		4.30%	May 2032
2019 series A senior notes		85,000		3.73%	September 2029
2019 series B senior notes		100,000		3.83%	September 2031
2019 series C senior notes		90,000		3.98%	September 2034
Total notes payable		450,000
Less: Total unamortized deferred financing fees		(2,785	)
Total notes payable, net		447,215

Mortgage notes payable:
DEA – Pleasanton		15,700		L + 150bps ⁽⁶⁾	October 2023
VA – Golden		8,878		5.00% ⁽⁶⁾	April 2024
MEPCOM – Jacksonville		7,059		4.41% ⁽⁶⁾	October 2025
USFS II – Albuquerque		15,543		4.46% ⁽⁶⁾	July 2026
ICE – Charleston		15,161		4.21% ⁽⁶⁾	January 2027
VA – Loma Linda		127,500		3.59% ⁽⁶⁾	July 2027
CBP – Savannah		11,402		3.40% ⁽⁶⁾	July 2033
Total mortgage notes payable		201,243
Less: Total unamortized deferred financing fees		(1,285	)
Less: Total unamortized premium/discount		63
Total mortgage notes payable, net		200,021

Total debt	$	1,008,215

(1)

At September 30, 2021, the one-month LIBOR (“L”) was 0.08%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for each of our revolving credit facility, our 2018 term loan facility and our 2016 term loan facility (each as defined below) is based on the Company’s consolidated leverage ratio, as set forth in the respective loan agreements.

(2)

Our revolving credit facility had available capacity of $337.5 million at September 30, 2021 with an accordion feature that permits us to request additional lender commitments for up to $250.0 million of additional capacity, subject to the satisfaction of customary terms and conditions.

(3)

Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

(4)

Entered into two interest rate swaps with an effective date of March 29, 2017 with an aggregate notional value of $100.0 million to effectively fix the interest rate at 2.67% annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement.

(5)

Entered into four interest rate swaps with an effective date of December 13, 2018 with an aggregate notional value of $150.0 million to effectively fix the interest rate at 3.91% annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. The four interest rate swaps mature on June 19, 2023, which is not coterminous with the maturity date of 2018 term loan facility.

(6)

Effective interest rates are as follows: DEA – Pleasanton 1.80%, VA – Golden 5.03%, MEPCOM – Jacksonville 3.89%, USFS II Albuquerque 3.92%, ICE – Charleston 3.93%, VA – Loma Linda 3.78%, CBP – Savannah 4.12%.

On July 23, 2021, we entered into a second amended and restated senior unsecured credit agreement (the “second amended senior unsecured credit agreement”) governing our senior unsecured credit facility. The second amended senior unsecured credit agreement increased the borrowing capacity under our prior senior unsecured credit facility by $50.0 million for a total credit facility size of $650.0 million, consisting of: (i) a $450.0 million senior unsecured revolving credit facility (our “revolving credit facility”), and (ii) a $200.0 million senior unsecured term loan facility (our “2018 term loan facility”), up to $50.0 million of which will be available for a 364-day delayed draw period. Our revolving credit facility also includes an accordion feature that will provide us with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250.0 million.

The Operating Partnership is the borrower, and certain of our subsidiaries that directly own certain of our properties are guarantors under our senior unsecured credit facility. Our revolving credit facility has an initial four year term and will mature in July 2025, with two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee. Our 2018 term loan facility has a five year term and will mature in July 2026. In addition, our 2018 term loan facility is prepayable without penalty for the entire term of the loan.

Borrowings under our senior unsecured credit facility bear interest, at our option, at floating rates equal to either:

•

a Eurodollar rate equal to a periodic fixed rate equal to LIBOR plus, a margin ranging from 1.20% to 1.80% for advances under our revolving credit facility and a margin ranging from 1.20% to 1.70% for advances under our 2018 term loan facility; or

•

a fluctuating rate equal to the sum of (a) the highest of (x) Citibank, N.A.’s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month Eurodollar rate plus 1.00% plus (b) a margin ranging from 0.20% to 0.80% for advances under our revolving credit facility and a margin ranging from 0.20% to 0.70% for advances under our 2018 term loan facility, in each case with a margin based on our leverage ratio.

If the Operating Partnership achieves certain sustainability targets as defined in the second amended senior unsecured credit agreement, the applicable margin will decrease by 0.01%.

In addition, on July 23, 2021, we entered into a fourth amendment to the loan agreement governing our $100.0 million senior unsecured term loan facility (our “2016 term loan facility”). The fourth amendment amends certain provisions in the loan agreement governing our 2016 term loan facility to conform to certain changes made to corresponding provisions in our second amended senior unsecured credit agreement.

Private Placement of Senior Unsecured Notes

On May 11, 2021, the Company and the Operating Partnership entered into a note purchase agreement pursuant to which the Operating Partnership would issue and sell an aggregate of up to $250.0 million of fixed rate, senior unsecured notes (the “Notes”) consisting of (i) 2.62% Series A Senior Notes due October 14, 2028, in an aggregate principal amount of $50.0 million, and (ii) 2.89% Series B Senior Notes due October 14, 2030 in an aggregate principal amount of up to $200.0 million.

On September 30, 2021, the Operating Partnership exercised its option under the note purchase agreement to increase the Series B tranche of the Notes to a principal amount of $200.0 million.

On October 14, 2021, the Operating Partnership issued and sold, an aggregate of $250.0 million of Notes pursuant to the note purchase agreement entered into on May 11, 2021. The Notes are unconditionally guaranteed by the Company and various subsidiaries of the Operating Partnership.

Financial Covenant Considerations

As of September 30, 2021, we were in compliance with all financial and other covenants related to our revolving credit facility, 2016 term loan facility, 2018 term loan facility, notes payable and mortgage notes payable.

Fair Value of Debt

As of September 30, 2021, the fair value of our revolving credit facility was determined by considering the short term maturity, variable interest rate and credit spreads. We deem the fair value of our revolving credit facility as a Level 3 measurement. At September 30, 2021, the carrying value of our revolving credit facility approximated fair value.

As of September 30, 2021, the fair value of our 2016 term loan facility was determined by considering the variable interest rate and credit spreads. We deem the fair value of our 2016 term loan facility as a Level 3 measurement. At September 30, 2021, the fair value of our 2016 term loan facility was $100.0 million.

As of September 30, 2021, the fair value of our 2018 term loan facility was determined by considering the variable interest rate and credit spreads. We deem the fair value of our 2018 term loan facility as a Level 3 measurement. At September 30, 2021, the fair value of our 2018 term loan facility was $150.0 million.

As of September 30, 2021, the fair value of our notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our notes payable instruments as a Level 3 measurement. At September 30, 2021, the fair value of our notes payable was $497.1 million.

As of September 30, 2021, the fair value of our mortgage notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our mortgage notes payable instruments as a Level 3 measurement. At September 30, 2021, the fair value of our mortgage notes payable was $211.4 million.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

5. Derivatives and Hedging Activities

The following table sets forth the key terms and fair values of our interest rate swap derivatives, each of which was designated as a cash flow hedge as of September 30, 2021 (amounts in thousands):

Notional Amount		Fixed Rate			Floating Rate Index	Effective Date	Expiration Date	Fair Value
$	100,000		1.41	%	One-Month LIBOR	March 29, 2017	September 29, 2023	$	(2,181	)
$	150,000		2.71	%	One-Month LIBOR	December 13, 2018	June 19, 2023	$	(6,325	)

The table below sets forth the fair value of our interest rate derivatives as well as their classification on our Consolidated Balance Sheet (amounts in thousands):

Balance Sheet Line Item	As of September 30, 2021
Interest rate swaps - Asset	$	—
Interest rate swaps - Liability	$	(8,506	)

Cash Flow Hedges of Interest Rate Risk

The gains or losses on derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income (loss) (“AOCI”) and will be reclassified to interest expense in the period that the hedged forecasted transactions affect earnings on the Company’s variable rate debt.

Amounts reported in AOCI related to derivatives designated as qualifying cash flow hedges will be reclassified to interest expense as interest payments are made on the Company’s variable rate debt. The Company estimates that $5.2 million will be reclassified from AOCI as an increase to interest expense over the next 12 months.

The table below presents the effects of our interest rate derivatives on our Consolidated Statements of Operations and Comprehensive Income (Loss) (amounts in thousands):

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Unrealized gain (loss) recognized in AOCI	$	(160	)	$	(60	)	$	324		$	(11,643	)
Loss reclassified from AOCI into interest expense		(1,340	)		(1,292	)		(3,951	)		(2,763	)

Credit-Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on such indebtedness. As of September 30, 2021, the fair value of derivatives in a liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $8.8 million. As of September 30, 2021, the Company had not breached the provisions of these agreements and had not posted any collateral related to these agreements. If the Company breached any of these provisions it would be required to settle its obligations under the agreements at their termination value of $8.8 million.

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

6. Fair Value Measurements

Accounting standards define fair value as the exit price, or the amount that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standards also establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy of these inputs is broken down into three levels: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Categorization within the valuation hierarchy is based upon the lowest level of input that is most significant to the fair value measurement.

Recurring fair value measurements

The fair values of our interest rate swaps are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities in such interest rates. While the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of September 30, 2021 were classified as Level 2 of the fair value hierarchy.

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, other assets and accounts payable and accrued expenses are reasonable estimates of fair values because of the short maturities of these instruments. For our disclosure of debt fair values in Note 4, we estimated the fair value of our 2016 term loan facility and our 2018 term loan facility based on the variable interest rate and credit spreads (categorized within Level 3 of the fair value hierarchy) and estimated the fair value of our other debt based on the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximate current market rates for loans, or groups of loans, with similar maturities and credit quality, and the estimated future payments included scheduled principal and interest payments. Fair value estimates are made as of a specific point in time, are subjective in nature and involve uncertainties and matters of significant judgment. Settlement at such fair value amounts may not be possible and may not be a prudent management decision.

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall (amounts in thousands):

	As of September 30, 2021
Balance Sheet Line Item	Level 1		Level 2			Level 3
Interest rate swaps - Asset	$	—	$	—		$	—
Interest rate swaps - Liability	$	—	$	(8,506	)	$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Equity

7. Equity

The following table summarizes the changes in the Company’s stockholders’ equity for the three months ended September 30, 2021 and 2020 (amounts in thousands, except share amounts):

	Shares		Common Stock Par Value		Additional Paid-in Capital			Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Three months ended September 30, 2021
Balance at June 30, 2021		83,931,290	$	839	$	1,471,928		$	47,157	$	(334,815	)	$	(8,539	)	$	157,967		$	1,334,537
Stock based compensation		—		—		216			—		—			—			1,117			1,333
Dividends and distributions paid ($0.265 per share)		—		—		—			—		(22,254	)		—			(3,075	)		(25,329	)
Grant of unvested restricted stock		11,066		—		—			—		—			—			—			—
Redemption of common units for shares of common stock		59,774		1		836			—		—			—			(837	)		—
Issuance of common stock, net		2,114,408		21		49,926			—		—			—			—			49,947
Unrealized gain on interest rate swaps, net		—		—		—			—		—			1,013			167			1,180
Net income		—		—		—			7,977		—			—			1,065			9,042
Allocation of non-controlling interest in Operating Partnership		—		—		(1,460	)		—		—			—			1,460			—
Balance at September 30, 2021		86,116,538	$	861	$	1,521,446		$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710
Three months ended September 30, 2020
Balance at June 30, 2020		79,655,374	$	797	$	1,371,293		$	25,367	$	(249,811	)	$	(13,618	)	$	149,004		$	1,283,032
Stock based compensation		—		—		247			—		—			—			788			1,035
Dividends and distributions paid ($0.260 per share)		—		—		—			—		(20,720	)		—			(2,761	)		(23,481	)
Redemption of common units for shares of common stock		88,750		1		1,263			—		—			—			(1,264	)		—
Issuance of common stock, net		1,475,991		14		33,502			—		—			—			—			33,516
Unrealized gain on interest rate swaps, net		—		—		—			—		—			1,048			184			1,232
Net income		—		—		—			4,264		—			—			557			4,821
Allocation of non-controlling interest in Operating Partnership		—		—		(792	)		—		—			—			792			—
Balance at September 30, 2020		81,220,115	$	812	$	1,405,513		$	29,631	$	(270,531	)	$	(12,570	)	$	147,300		$	1,300,155

The following table summarizes the changes in the Company’s stockholders’ equity for the nine months ended September 30, 2021 and 2020 (amounts in thousands, except share amounts):

	Shares		Common Stock Par Value		Additional Paid-in Capital			Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Nine months ended September 30, 2021
Balance at December 31, 2020		82,106,256	$	821	$	1,424,787		$	31,965	$	(291,652	)	$	(11,351	)	$	145,400		$	1,299,970
Stock based compensation		—		—		600			—		—			—			3,100			3,700
Dividends and distributions paid ($0.785 per share)		—		—		—			—		(65,417	)		—			(8,689	)		(74,106	)
Grant of unvested restricted stock, net		35,865		—		—			—		—			—			—			—
Redemption of common units for shares of common stock		303,185		3		4,258			—		—			—			(4,261	)		—
Issuance of common stock, net		3,671,232		37		89,868			—		—			—			—			89,905
Contribution of Property for common units		—		—		—			—		—			—			20,790			20,790
Unrealized gain on interest rate swaps, net		—		—		—			—		—			3,825			450			4,275
Net income		—		—		—			23,169		—			—			3,007			26,176
Allocation of non-controlling interest in Operating Partnership		—		—		1,933			—		—			—			(1,933	)		—
Balance at September 30, 2021		86,116,538	$	861	$	1,521,446		$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710
Nine months ended September 30, 2020
Balance at December 31, 2019		74,832,292	$	748	$	1,257,319		$	20,004	$	(210,760	)	$	(4,690	)	$	137,220		$	1,199,841
Stock based compensation		—		—		712			—		—			—			2,344			3,056
Dividends and distributions paid ($0.780 per share)		—		—		—			—		(59,771	)		—			(8,113	)		(67,884	)
Grant of unvested restricted stock		21,930		1		(1	)		—		—			—			—			—
Redemption of common units for shares of common stock		217,710		2		3,074			—		—			—			(3,076	)		—
Issuance of common stock, net		6,148,183		61		141,509			—		—			—			—			141,570
Contribution of Property for common units		—		—		—			—		—			—			21,550			21,550
Unrealized loss on interest rate swaps, net		—		—		—			—		—			(7,880	)		(1,000	)		(8,880	)
Net income		—		—		—			9,627		—			—			1,275			10,902
Allocation of non-controlling interest in Operating Partnership		—		—		2,900			—		—			—			(2,900	)		—
Balance at September 30, 2020		81,220,115	$	812	$	1,405,513		$	29,631	$	(270,531	)	$	(12,570	)	$	147,300		$	1,300,155

On January 4, 2021, the Company granted an aggregate of 164,178 performance-based long-term incentive plan units in the Operating Partnership (“LTIP units”) to members of management pursuant to the Easterly Government Properties, Inc. 2015 Equity Incentive Plan, as amended (the “2015 Equity Incentive Plan”), consisting of (i) 82,070 LTIP units that are subject to the Company achieving certain total shareholder return performance thresholds (on both an absolute and a relative basis) and (ii) 82,108 LTIP units that are subject to the Company achieving certain operational performance hurdles, in each case through a performance period ending on December 31, 2023. Earned performance-based LTIP units, if any, will vest when performance is determined following the end of the performance period on December 31, 2023. On January 4, 2021, the Company also granted an aggregate of 113,703 service-based LTIP units to members of management pursuant to the 2015 Equity Incentive Plan, which will vest on December 31, 2023, subject to the grantee’s continued employment and the other terms of the awards.

On March 17, 2021, the Company issued an aggregate of 4,462 shares of restricted common stock to certain employees pursuant to the 2015 Equity Incentive Plan. The shares of restricted common stock will vest upon the second anniversary of the grant date so long as the grantee remains an employee of the Company on such date.

On May 19, 2021, in connection with the Company’s 2021 annual meeting of stockholders, the Company issued an aggregate of 22,760 shares of restricted common stock and 6,647 LTIP units to its non-employee directors pursuant to the 2015 Equity Incentive Plan. The restricted common stock and LTIP unit grants will vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting, so long as the grantee remains a director on such date.

On August 10, 2021, the Company granted an aggregate of 11,066 shares of restricted common stock to a member of management pursuant to the 2015 Equity Incentive Plan, of which 6,640 shares will vest on August 10, 2023, and 4,426 shares will vest on August 10, 2025, in each case subject to their continued employment with the Company and the other terms of the award.

During the nine months ended September 30, 2021, 32,385 LTIP units and 2,423 shares of restricted common stock were forfeited in connection with employee departures under the terms of the applicable award agreements.

A summary of the Company’s shares of restricted common stock and LTIP unit awards at September 30, 2021 is as follows:

	Restricted Shares			Restricted Shares Weighted Average Grant Date Fair Value Per Share		LTIP Units ⁽¹⁾			LTIP Units Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2020		89,891		$	19.36		492,180		$	19.88
Vested		(39,750	)		21.50		(93,085	)		18.55
Granted		38,288			21.08		284,528			22.18
Forfeited		(2,423	)		18.36		(32,385	)		21.03
Outstanding, September 30, 2021		86,006			19.16		651,238			21.02

(1)

Reflects the number of LTIP units issued to the grantee on the grant date, which may be different from the number of LTIP units actually earned in the case of performance-based LTIP units.

The Company recognized $3.7 million in compensation expense related to its shares of restricted common stock and the LTIP unit awards for the nine months ended September 30, 2021. As of September 30, 2021, unrecognized compensation expense for both sets of awards was $7.8 million, which will be amortized over the applicable vesting period.

A summary of dividends declared by the Company’s board of directors per share of common stock and per common unit at the date of record is as follows:

Quarter	Declaration Date	Record Date	Payment Date	Dividend ⁽¹⁾
Q1 2021	April 29, 2021	May 14, 2021	May 26, 2021	$	0.260
Q2 2021	July 27, 2021	August 12, 2021	August 24, 2021	$	0.265
Q3 2021	October 28, 2021	November 12, 2021	November 24, 2021	$	0.265

(1)

Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of performance-based LTIP units are entitled to receive dividends per LTIP unit equal to 10% of the dividend paid per common unit. After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit. Holders of LTIP units that are not subject to the attainment of performance goals are entitled to receive dividends per LTIP unit equal to 100% of the dividend paid per common unit beginning on the grant date.

Offering of Common Stock on a Forward Basis

On August 11, 2021, the Company and the Operating Partnership entered into an underwriting agreement with RBC Capital Markets, LLC and BMO Capital Markets Corp., as underwriters, RBC Capital Markets, LLC and BMO Capital Markets Corp., as forward sellers, and Royal Bank of Canada and Bank of Montreal, as forward purchasers, in connection with an offering of 6,300,000 shares of the Company’s common stock. The Company also entered into separate forward sale agreements with each of the forward purchasers (the “Forward Sales Agreements”), pursuant to which the forward purchasers borrowed and sold to the underwriters an aggregate of 6,300,000 shares of the Company’s common stock. The Company expects to physically settle the Forward Sale Agreements and receive proceeds, subject to certain adjustments, from the sale of those shares of its common stock upon one or more such physical settlements within approximately one year. Although the Company expects to settle the Forward Sale Agreements entirely by the physical delivery of shares of its common stock for cash proceeds, it may also elect to cash or net-share settle all or a portion of its obligations under the Forward Sale Agreements, in which case, the Company may receive, or may owe, cash or shares of its common stock from or to the forward purchasers. The Forward Sale Agreements provide for an initial forward price of $21.64 per share, subject to certain adjustments pursuant to the terms of each of the Forward Sale Agreements. The Forward Sale Agreements are subject to early termination or settlement under certain circumstances.

ATM Programs

On each of March 4, 2019 and December 20, 2019, we entered into separate equity distribution agreements with each of Citigroup Global Markets Inc., BMO Capital Markets Corp., BTIG, LLC, Capital One Securities, Inc., Jefferies LLC, Raymond James & Associates, Inc., RBC Capital Markets, LLC, Truist Securities, Inc. (f/k/a SunTrust Robinson Humphrey, Inc.) and Wells Fargo Securities, LLC pursuant to which we may issue and sell shares of our common stock having an aggregate offering price of up to $200.0 million and $300.0 million, respectively, from time to time (the “2019 ATM Programs”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). The ATM Programs implemented on March 4, 2019 and December 20, 2019 are referred to as the “March 2019 ATM Program” and “December 2019 ATM Program” respectively. Under each of the 2019 ATM Programs, we may also enter into one or more forward transactions (each, a “forward sale transaction”) under separate master forward sale confirmations and related supplemental confirmations with each of Citibank, N.A., Bank of Montreal, Jefferies LLC, Raymond James & Associates, Inc., Royal Bank of Canada and Wells Fargo Bank, National Association and, under the December 2019 ATM Program only, Truist Bank, for the sale of shares of our common stock on a forward basis.

On June 22, 2021, we entered into separate equity distribution agreements with each of Citigroup Global Markets Inc., BMO Capital Markets Corp., BTIG, LLC, Capital One Securities, Inc., CIBC World Markets Corp., Jefferies LLC, Raymond James & Associates, Inc., RBC Capital Markets, LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC pursuant to which we may issue and sell shares of our common stock having an aggregate offering price of up to $300.0 million from time to time (the “2021 ATM Program”) in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act. Under the 2021 ATM Program, we may also enter into one or more forward sale transactions under separate master forward sale confirmations and related supplemental confirmations with each of Citigroup Global Markets Limited, Bank of Montreal, Canadian Imperial Bank of Commerce, Jefferies LLC, Raymond James & Associates, Inc., Royal Bank of Canada, Truist Bank and Wells Fargo Bank, National Association for the sale of shares of our common stock on a forward basis.

The following table sets forth certain information with respect to issuances under each of the 2019 ATM Programs during the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 (amounts in thousands except share amounts):

	March 2019 ATM Program				December 2019 ATM Program
For the Three Months Ended:	Number of Shares Issued⁽¹⁾		Net Proceeds⁽¹⁾		Number of Shares Issued⁽¹⁾		Net Proceeds⁽¹⁾
March 31, 2021		—	$	—		1,556,824	$	39,998
June 30, 2021		—		—		—		—
September 30, 2021		246,363		6,451		1,868,045		43,556
Total		246,363	$	6,451		3,424,869	$	83,554

(1)

Shares issued by the Company, which were all issued in settlement of forward sales transactions. Additionally, as of September 30, 2021, the Company had entered into forward sales transactions under the December 2019 ATM Program for the sale of an additional 1,885,289 shares of its common stock that have not yet been settled. Subject to its right to elect net share settlement, the Company expects to physically settle the forward sales transactions by the maturity dates set forth in each applicable forward sale transaction placement notice, which dates range from January 2022 to July 2022. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $21.94 per share, the Company expects to receive net proceeds of approximately $41.4 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. The Company accounted for the forward sale agreements as equity.

No sales of shares of the Company’s common stock were made under the 2021 ATM Program during the quarters ended June 30, 2021 and September 30, 2021.

The Company used the net proceeds received from such sales for general corporate purposes. As of September 30, 2021, the Company had approximately $300.0 million of gross sales of its common stock available under the 2021 ATM Program, $98.9 million of gross sales of its common stock available under the December 2019 ATM Program and no remaining availability under the March 2019 ATM Program.

Contribution of Property for Common Units

On May 20, 2021, the Company acquired NWS – Kansas City for which it paid, as partial consideration, 975,452 common units. The issuance of the common units was effected in reliance upon an exemption from registration provided by Section 4(a)(2) under the Securities Act.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

8. Earnings Per Share

Basic earnings or loss per share of common stock (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares of common stock outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented. Unvested restricted shares of common stock and unvested LTIP units are considered participating securities, which require the use of the two-class method for the computation of basic and diluted earnings per share.

The following table sets forth the computation of the Company’s basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2021 and 2020 (amounts in thousands, except per share amounts):

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Numerator
Net income	$	9,042		$	4,821		$	26,176		$	10,902
Less: Non-controlling interest in Operating Partnership		(1,065	)		(557	)		(3,007	)		(1,275	)
Net income available to Easterly Government Properties, Inc.		7,977			4,264			23,169			9,627
Less: Dividends on participating securities		(120	)		(72	)		(350	)		(217	)
Net income available to common stockholders	$	7,857		$	4,192		$	22,819		$	9,410
Denominator for basic EPS		83,961,693			80,334,976			83,306,654			77,144,791
Dilutive effect of share-based compensation awards⁽¹⁾		49,200			51,495			50,299			54,318
Dilutive effect of LTIP units ⁽²⁾		425,317			537,446			384,694			514,607
Dilutive effect of shares issuable under forward sale agreements ⁽³⁾		36,047			4,927			33,105			31,654
Denominator for diluted EPS		84,472,257			80,928,844			83,774,752			77,745,370
Basic EPS	$	0.09		$	0.05		$	0.27		$	0.12
Diluted EPS	$	0.09		$	0.05		$	0.27		$	0.12

(1)

During both the three and nine months ended September 30, 2021, there were 11,066 unvested share-based compensation awards that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

(2)

During both the three and nine months ended September 30, 2021, there were 195,096 unvested performance-based LTIP units that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period. During both the three and nine months ended September 30, 2020, there were 74,481 unvested performance-based LTIP units that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

(3)

During the three and nine months ended September 30, 2021, there were 435,289 and 6,735,289 shares, respectively, of underlying unsettled forward sales transactions that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period. During the three and nine months ended September 30, 2020, there were 3,747,232 and 2,397,232 shares, respectively, of underlying unsettled forward sales transactions that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

9. Leases

Lessor

The Company leases commercial space to the U.S. Government through the GSA or other federal agencies or nongovernmental tenants. These leases may contain extension options that are predominately at the sole discretion of the tenant. Certain of our leases contain a “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. While certain of our leases are contractually subject to early termination, we do not believe that our tenant

agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the weighted average age of these properties based on the date the property was built or renovated-to-suit, where applicable (approximately 15.9 years as of September 30, 2021), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties. Certain lease agreements include variable lease payments that, in the future, will vary based on changes in inflationary measures, real estate tax rates, usage, or share of expenditures of the leased premises.

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of September 30, 2021 (amounts in thousands):

	Payments due by period
	Total		2021		2022		2023		2024		2025		Thereafter
Fixed lease payments	$	1,887,601		55,191		209,229		194,390		178,731		167,317		1,082,743

Lessee

In August 2020, we entered into a lease agreement for office space in Washington, D.C. to replace our previous sublease that commenced March 2016 and was terminated in March 2021. This new lease commenced in March 2021 and expires in August 2026. We also lease office space in San Diego, CA under an operating lease that commenced in February 2015 and expires in April 2022.

The commenced leases include variable lease payments that, in the future, will vary based on changes in real estate tax rates, usage, or share of expenditures of the leased premises. The Company has elected not to separate lease and nonlease components for its corporate office leases.

As of September 30, 2021, the unamortized balances associated with the Company’s right-of-use operating lease asset and operating lease liability were $1.5 million and $1.7 million, respectively. As of December 31, 2020, the unamortized balance associated with the Company’s right-of-use operating lease asset and operating lease liability for the Company’s two commenced office leases was $0.4 million. The Company used its incremental borrowing rate, which was arrived at utilizing prevailing market rates and the spread on our revolving credit facility, in order to determine the net present value of the minimum lease payments.

The following table provides quantitative information for the Company’s commenced operating leases for the three and nine months ended September 30, 2021 and 2020 (amounts in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Operating leases costs	$	119	$	115	$	387	$	344

In addition, the maturity of fixed lease payments under the Company’s commenced corporate office leases as of September 30, 2021 is summarized in the table below (amounts in thousands):

	Payments due by period
	Total		2021		2022		2023		2024		2025		Thereafter
Fixed lease payments	$	1,867		101		278		277		446		456		309

Revenue

9 Months Ended

Sep. 30, 2021

Revenue From Contract With Customer [Abstract]

Revenue

10. Revenue

The table below sets forth revenue from tenant construction projects and the associated project management income disaggregated by tenant agency for the three and nine months ended September 30, 2021 and 2020 (amounts in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
Tenant	2021		2020		2021		2020

Federal Bureau of Investigation (“FBI”)	$	1,141	$	411	$	1,791	$	1,022
Department of Veteran Affairs (“VA”)		352		39		1,460		779
Environmental Protection Agency (“EPA”)		—		4		204		94
Internal Revenue Service (“IRS”)		—		29		127		77
U.S. Citizenship and Immigration Services (“USCIS”)		—		—		108		—
Department of Energy (“DOE”)		—		—		95		—
Food and Drug Administration (“FDA”)		58		203		82		254
U.S. Joint Staff Command (“JSC”)		34		32		60		73
Department of Transportation (“DOT”)		9		3		49		8
General Services Administration - Other		—		25		25		25
Military Entrance Processing Command (“MEPCOM”)		—		—		18		66
Immigration and Customs Enforcement (“ICE”)		17		11		17		73
Federal Emergency Management Agency (“FEMA”)		—		—		15		—
The Judiciary of the U.S. Government (“JUD”)		7		—		11		1
Bureau of the Fiscal Service (“BFS”)		7		—		11		27
National Park Services (“NPS”)		7		19		7		19
U.S. Coast Guard (“USCG”)		7		—		7		—
Health Resources and Services Administration (“HRSA”)		—		—		3		—
Patent and Trademark Office (“PTO”)		—		8		—		8
Customs and Border Protection (“CBP”)		—		11		—		11
Social Security Administration (“SSA”)		—		—		—		19
	$	1,639	$	795	$	4,090	$	2,556

The balance in Accounts receivable related to tenant construction projects and the associated project management income was $3.7 million as of September 30, 2021 and $3.0 million as of December 31, 2020.

The duration of the majority of tenant construction project reimbursement arrangements are less than a year and payment is typically due once a project is complete and work has been accepted by the tenant. There were no projects on going as of September 30, 2021 with a duration of greater than one year.

During the three and nine months ended September 30, 2021 and 2020, the Company recognized $0.1 million, $0.2 million, $0.1 million and $0.5 million, respectively, in parking garage income generated from the operations of parking garages situated on the Various GSA – Buffalo property and on the Various GSA – Portland property. The monthly and transient daily parking revenue falls within the scope of Revenue from Contracts with Customers (“ASC 606”) and is accounted for at the point in time when control of the goods or services transfers to the customer and the Company’s performance obligation is satisfied. The balance in Accounts receivable related to parking garage income was less than $0.1 million as of September 30, 2021, and less than $0.1 million as of December 31, 2020.

During the three and nine months ended September 30, 2021 and 2020, the Company recognized $0.3 million, $1.0 million, $0.2 million and $0.3 million in income for providing COVID-19 related cleaning services to certain tenants. The income falls within the scope of ASC 606 and is recognized over time as the performance obligation is satisfied. The balance in Accounts receivable related to these services was $0.2 million as of September 30, 2021, and $0.3 million as of December 31, 2020.

There were no contract assets or liabilities as of September 30, 2021 or December 31, 2020.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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+ Details

Concentrations Risk

9 Months Ended

Sep. 30, 2021

Risks And Uncertainties [Abstract]

Concentrations Risk

11. Concentrations Risk

Concentrations of credit risk arise for the Company when multiple tenants of the Company are engaged in similar business activities, are located in the same geographic region or have similar economic features that impact in a similar manner their ability to meet contractual obligations, including those to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk.

As stated in Note 1 above, the Company leases commercial space to the U.S. Government or non-governmental tenants. At September 30, 2021, the U.S. Government accounted for approximately 98.6% of our total annualized lease income and non-governmental tenants accounted for the remaining approximately 1.4%.

Seventeen of our 83 operating properties are located in California, accounting for approximately 17.7% of our total leased square feet and approximately 23.4% of our total annualized lease income as of September 30, 2021. To the extent that weak economic or real estate conditions or natural disasters affect California more severely than other areas of the country, our business, financial condition and results of operations could be significantly impacted.

Subsequent Events

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

12. Subsequent Events

For its consolidated financial statements as of September 30, 2021, the Company evaluated subsequent events and noted the following significant events.

On October 13, 2021, the Company formed a new joint venture (the “JV”) with a global investor (the “JV Partner”) to fund the acquisition of a portfolio of ten properties anticipated to encompass 1,214,165 leased square feet (the “Portfolio Acquisition”) in exchange for a 47.0% stake in the JV. The Company will retain a 53.0% stake in the JV, subject to adjustment as set forth in the applicable JV documentation, and will act as manager of the Portfolio Acquisition properties, with customary rights and obligations, and will receive customary fees and incentives.

The JV will serve as the acquisition vehicle for the Portfolio Acquisition and has been assigned the rights of the purchase and sale agreement, entered into by the Operating Partnership on September 30, 2021. The aggregate contractual purchase price for the Portfolio Acquisition is $635.6 million and the portfolio is 100% leased to the Department of Veterans Affairs (VA) with a weighted average lease term of 19.6 years. On October 13, 2021, the JV closed on two of the ten properties included in the Portfolio Acquisition, consisting of VA outpatient clinics located in Lubbock, Texas (VA – Lubbock) and Lenexa, Kansas (VA – Lenexa). The remaining eight properties are either ready for future acquisition or currently under construction. The Company expects the JV to close on the remaining Portfolio Acquisition properties on a rolling basis by the end of 2023.

On October 14, 2021, the Company acquired a 489,316 leased square foot USCIS facility in Kansas City, Missouri. The building was substantially renovated-to-suit in 1999. The facility is primarily leased to the GSA for beneficial use of the USCIS and has lease expirations ranging from 2024 to 2042. In conjunction with the acquisition, the Company assumed $51.5 million of mortgage notes payable.

On November 1, 2021, the Company acquired an 80,000 square foot VA facility located in the Midwest United States. The building is a build-to-suit property that was completed during 2021. The facility is leased to the VA and has a lease expiration of May 2041.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Real Estate and Intangibles (Tables)

9 Months Ended

Sep. 30, 2021

Real Estate [Abstract]

Fair Values of Assets Acquired and Liabilities Assumed

	Total
Real estate
Land	$	6,186
Building		103,214
Acquired tenant improvements		9,539
Total real estate		118,939
Intangible assets
In-place leases		11,325
Acquired leasing commissions		3,436
Above-market leases		301
Total intangible assets		15,062
Intangible liabilities
Below-market leases		(1	)
Total intangible liabilities		(1	)
Purchase price	$	134,000

Schedule of Real Estate and Intangibles

Real estate and intangibles consisted of the following as of September 30, 2021 (amounts in thousands):

	Total
Real estate properties, net
Land	$	218,091
Building and improvements		2,215,548
Acquired tenant improvements		85,795
Construction in progress		28,060
Accumulated depreciation		(260,286	)
Total Real estate properties, net		2,287,208
Intangible assets, net
In-place leases		264,991
Acquired leasing commissions		64,489
Above market leases		17,541
Accumulated amortization		(189,115	)
Total Intangible assets, net		157,906
Intangible liabilities, net
Below market leases		(73,483	)
Accumulated amortization		52,797
Total Intangible liabilities, net	$	(20,686	)

Summary of Scheduled Amortization Market Lease Intangibles

	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2021	$	374	$	(1,134	)
2022		1,413		(4,201	)
2023		1,390		(4,024	)
2024		1,341		(2,877	)
2025		1,286		(2,170	)

Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Summary of Borrowings

At September 30, 2021, our consolidated borrowings consisted of the following (amounts in thousands):

	Principal Outstanding			Interest	Current
Loan	September 30, 2021			Rate ⁽¹⁾	Maturity
Revolving credit facility:
Revolving credit facility ⁽²⁾	$	112,500		L + 125bps	July 2025 ⁽³⁾
Total revolving credit facility		112,500

Term loan facilities:
2016 term loan facility		100,000		2.67% ⁽⁴⁾	March 2024
2018 term loan facility		150,000		3.91% ⁽⁵⁾	July 2026
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,521	)
Total term loan facilities, net		248,479

Notes payable:
2017 series A senior notes		95,000		4.05%	May 2027
2017 series B senior notes		50,000		4.15%	May 2029
2017 series C senior notes		30,000		4.30%	May 2032
2019 series A senior notes		85,000		3.73%	September 2029
2019 series B senior notes		100,000		3.83%	September 2031
2019 series C senior notes		90,000		3.98%	September 2034
Total notes payable		450,000
Less: Total unamortized deferred financing fees		(2,785	)
Total notes payable, net		447,215

Mortgage notes payable:
DEA – Pleasanton		15,700		L + 150bps ⁽⁶⁾	October 2023
VA – Golden		8,878		5.00% ⁽⁶⁾	April 2024
MEPCOM – Jacksonville		7,059		4.41% ⁽⁶⁾	October 2025
USFS II – Albuquerque		15,543		4.46% ⁽⁶⁾	July 2026
ICE – Charleston		15,161		4.21% ⁽⁶⁾	January 2027
VA – Loma Linda		127,500		3.59% ⁽⁶⁾	July 2027
CBP – Savannah		11,402		3.40% ⁽⁶⁾	July 2033
Total mortgage notes payable		201,243
Less: Total unamortized deferred financing fees		(1,285	)
Less: Total unamortized premium/discount		63
Total mortgage notes payable, net		200,021

Total debt	$	1,008,215

(1)

(2)

(3)

Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

(4)

(5)

(6)

Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Key Terms and Fair Values of Our Interest Rate Swap Derivatives

The following table sets forth the key terms and fair values of our interest rate swap derivatives, each of which was designated as a cash flow hedge as of September 30, 2021 (amounts in thousands):

Notional Amount		Fixed Rate			Floating Rate Index	Effective Date	Expiration Date	Fair Value
$	100,000		1.41	%	One-Month LIBOR	March 29, 2017	September 29, 2023	$	(2,181	)
$	150,000		2.71	%	One-Month LIBOR	December 13, 2018	June 19, 2023	$	(6,325	)

Schedule of Fair Value of Our Interest Rate Derivatives as Well as Their Classification on Our Consolidated Balance Sheets

The table below sets forth the fair value of our interest rate derivatives as well as their classification on our Consolidated Balance Sheet (amounts in thousands):

Balance Sheet Line Item	As of September 30, 2021
Interest rate swaps - Asset	$	—
Interest rate swaps - Liability	$	(8,506	)

Schedule Of Effects of Our Interest Rate Derivatives on our Consolidated Statements of Operations and Comprehensive Income (Loss)

The table below presents the effects of our interest rate derivatives on our Consolidated Statements of Operations and Comprehensive Income (Loss) (amounts in thousands):

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Unrealized gain (loss) recognized in AOCI	$	(160	)	$	(60	)	$	324		$	(11,643	)
Loss reclassified from AOCI into interest expense		(1,340	)		(1,292	)		(3,951	)		(2,763	)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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-Name Accounting Standards Codification
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+ Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

	As of September 30, 2021
Balance Sheet Line Item	Level 1		Level 2			Level 3
Interest rate swaps - Asset	$	—	$	—		$	—
Interest rate swaps - Liability	$	—	$	(8,506	)	$	—

Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Summary of Changes In Stockholders' Equity

The following table summarizes the changes in the Company’s stockholders’ equity for the three months ended September 30, 2021 and 2020 (amounts in thousands, except share amounts):

	Shares		Common Stock Par Value		Additional Paid-in Capital			Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Three months ended September 30, 2021
Balance at June 30, 2021		83,931,290	$	839	$	1,471,928		$	47,157	$	(334,815	)	$	(8,539	)	$	157,967		$	1,334,537
Stock based compensation		—		—		216			—		—			—			1,117			1,333
Dividends and distributions paid ($0.265 per share)		—		—		—			—		(22,254	)		—			(3,075	)		(25,329	)
Grant of unvested restricted stock		11,066		—		—			—		—			—			—			—
Redemption of common units for shares of common stock		59,774		1		836			—		—			—			(837	)		—
Issuance of common stock, net		2,114,408		21		49,926			—		—			—			—			49,947
Unrealized gain on interest rate swaps, net		—		—		—			—		—			1,013			167			1,180
Net income		—		—		—			7,977		—			—			1,065			9,042
Allocation of non-controlling interest in Operating Partnership		—		—		(1,460	)		—		—			—			1,460			—
Balance at September 30, 2021		86,116,538	$	861	$	1,521,446		$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710
Three months ended September 30, 2020
Balance at June 30, 2020		79,655,374	$	797	$	1,371,293		$	25,367	$	(249,811	)	$	(13,618	)	$	149,004		$	1,283,032
Stock based compensation		—		—		247			—		—			—			788			1,035
Dividends and distributions paid ($0.260 per share)		—		—		—			—		(20,720	)		—			(2,761	)		(23,481	)
Redemption of common units for shares of common stock		88,750		1		1,263			—		—			—			(1,264	)		—
Issuance of common stock, net		1,475,991		14		33,502			—		—			—			—			33,516
Unrealized gain on interest rate swaps, net		—		—		—			—		—			1,048			184			1,232
Net income		—		—		—			4,264		—			—			557			4,821
Allocation of non-controlling interest in Operating Partnership		—		—		(792	)		—		—			—			792			—
Balance at September 30, 2020		81,220,115	$	812	$	1,405,513		$	29,631	$	(270,531	)	$	(12,570	)	$	147,300		$	1,300,155

The following table summarizes the changes in the Company’s stockholders’ equity for the nine months ended September 30, 2021 and 2020 (amounts in thousands, except share amounts):

	Shares		Common Stock Par Value		Additional Paid-in Capital			Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Nine months ended September 30, 2021
Balance at December 31, 2020		82,106,256	$	821	$	1,424,787		$	31,965	$	(291,652	)	$	(11,351	)	$	145,400		$	1,299,970
Stock based compensation		—		—		600			—		—			—			3,100			3,700
Dividends and distributions paid ($0.785 per share)		—		—		—			—		(65,417	)		—			(8,689	)		(74,106	)
Grant of unvested restricted stock, net		35,865		—		—			—		—			—			—			—
Redemption of common units for shares of common stock		303,185		3		4,258			—		—			—			(4,261	)		—
Issuance of common stock, net		3,671,232		37		89,868			—		—			—			—			89,905
Contribution of Property for common units		—		—		—			—		—			—			20,790			20,790
Unrealized gain on interest rate swaps, net		—		—		—			—		—			3,825			450			4,275
Net income		—		—		—			23,169		—			—			3,007			26,176
Allocation of non-controlling interest in Operating Partnership		—		—		1,933			—		—			—			(1,933	)		—
Balance at September 30, 2021		86,116,538	$	861	$	1,521,446		$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710
Nine months ended September 30, 2020
Balance at December 31, 2019		74,832,292	$	748	$	1,257,319		$	20,004	$	(210,760	)	$	(4,690	)	$	137,220		$	1,199,841
Stock based compensation		—		—		712			—		—			—			2,344			3,056
Dividends and distributions paid ($0.780 per share)		—		—		—			—		(59,771	)		—			(8,113	)		(67,884	)
Grant of unvested restricted stock		21,930		1		(1	)		—		—			—			—			—
Redemption of common units for shares of common stock		217,710		2		3,074			—		—			—			(3,076	)		—
Issuance of common stock, net		6,148,183		61		141,509			—		—			—			—			141,570
Contribution of Property for common units		—		—		—			—		—			—			21,550			21,550
Unrealized loss on interest rate swaps, net		—		—		—			—		—			(7,880	)		(1,000	)		(8,880	)
Net income		—		—		—			9,627		—			—			1,275			10,902
Allocation of non-controlling interest in Operating Partnership		—		—		2,900			—		—			—			(2,900	)		—
Balance at September 30, 2020		81,220,115	$	812	$	1,405,513		$	29,631	$	(270,531	)	$	(12,570	)	$	147,300		$	1,300,155

Summary of Shares of Restricted Common Stock and Long-term Incentive Plan Units in Operating Partnership Awards

A summary of the Company’s shares of restricted common stock and LTIP unit awards at September 30, 2021 is as follows:

	Restricted Shares			Restricted Shares Weighted Average Grant Date Fair Value Per Share		LTIP Units ⁽¹⁾			LTIP Units Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2020		89,891		$	19.36		492,180		$	19.88
Vested		(39,750	)		21.50		(93,085	)		18.55
Granted		38,288			21.08		284,528			22.18
Forfeited		(2,423	)		18.36		(32,385	)		21.03
Outstanding, September 30, 2021		86,006			19.16		651,238			21.02

(1)

Reflects the number of LTIP units issued to the grantee on the grant date, which may be different from the number of LTIP units actually earned in the case of performance-based LTIP units.

Summary of Dividends Declared

A summary of dividends declared by the Company’s board of directors per share of common stock and per common unit at the date of record is as follows:

Quarter	Declaration Date	Record Date	Payment Date	Dividend ⁽¹⁾
Q1 2021	April 29, 2021	May 14, 2021	May 26, 2021	$	0.260
Q2 2021	July 27, 2021	August 12, 2021	August 24, 2021	$	0.265
Q3 2021	October 28, 2021	November 12, 2021	November 24, 2021	$	0.265

(1)

Schedule of Information with Respect to ATM Program

	March 2019 ATM Program				December 2019 ATM Program
For the Three Months Ended:	Number of Shares Issued⁽¹⁾		Net Proceeds⁽¹⁾		Number of Shares Issued⁽¹⁾		Net Proceeds⁽¹⁾
March 31, 2021		—	$	—		1,556,824	$	39,998
June 30, 2021		—		—		—		—
September 30, 2021		246,363		6,451		1,868,045		43,556
Total		246,363	$	6,451		3,424,869	$	83,554

(1)

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Summary of Basic and Diluted Earnings Per Common Share

	For the three months ended September 30,						For the nine months ended September 30,
	2021			2020			2021			2020
Numerator
Net income	$	9,042		$	4,821		$	26,176		$	10,902
Less: Non-controlling interest in Operating Partnership		(1,065	)		(557	)		(3,007	)		(1,275	)
Net income available to Easterly Government Properties, Inc.		7,977			4,264			23,169			9,627
Less: Dividends on participating securities		(120	)		(72	)		(350	)		(217	)
Net income available to common stockholders	$	7,857		$	4,192		$	22,819		$	9,410
Denominator for basic EPS		83,961,693			80,334,976			83,306,654			77,144,791
Dilutive effect of share-based compensation awards⁽¹⁾		49,200			51,495			50,299			54,318
Dilutive effect of LTIP units ⁽²⁾		425,317			537,446			384,694			514,607
Dilutive effect of shares issuable under forward sale agreements ⁽³⁾		36,047			4,927			33,105			31,654
Denominator for diluted EPS		84,472,257			80,928,844			83,774,752			77,745,370
Basic EPS	$	0.09		$	0.05		$	0.27		$	0.12
Diluted EPS	$	0.09		$	0.05		$	0.27		$	0.12

(1)

(2)

(3)

Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Summary of Maturity of Fixed Lease Payments Under Company's Leases

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of September 30, 2021 (amounts in thousands):

	Payments due by period
	Total		2021		2022		2023		2024		2025		Thereafter
Fixed lease payments	$	1,887,601		55,191		209,229		194,390		178,731		167,317		1,082,743

Schedule of Quantitative Information for Company's Operating Leases

The following table provides quantitative information for the Company’s commenced operating leases for the three and nine months ended September 30, 2021 and 2020 (amounts in thousands):

	For the three months ended September 30,				For the nine months ended September 30,
	2021		2020		2021		2020
Operating leases costs	$	119	$	115	$	387	$	344

Schedule of Maturity of Fixed Lease Payments Under Company's Corporate Office Leases

In addition, the maturity of fixed lease payments under the Company’s commenced corporate office leases as of September 30, 2021 is summarized in the table below (amounts in thousands):

	Payments due by period
	Total		2021		2022		2023		2024		2025		Thereafter
Fixed lease payments	$	1,867		101		278		277		446		456		309

Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue From Contract With Customer [Abstract]

Summary of Revenue from Tenant Construction Projects Disaggregated by Tenant Agency

	For the three months ended September 30,				For the nine months ended September 30,
Tenant	2021		2020		2021		2020

Federal Bureau of Investigation (“FBI”)	$	1,141	$	411	$	1,791	$	1,022
Department of Veteran Affairs (“VA”)		352		39		1,460		779
Environmental Protection Agency (“EPA”)		—		4		204		94
Internal Revenue Service (“IRS”)		—		29		127		77
U.S. Citizenship and Immigration Services (“USCIS”)		—		—		108		—
Department of Energy (“DOE”)		—		—		95		—
Food and Drug Administration (“FDA”)		58		203		82		254
U.S. Joint Staff Command (“JSC”)		34		32		60		73
Department of Transportation (“DOT”)		9		3		49		8
General Services Administration - Other		—		25		25		25
Military Entrance Processing Command (“MEPCOM”)		—		—		18		66
Immigration and Customs Enforcement (“ICE”)		17		11		17		73
Federal Emergency Management Agency (“FEMA”)		—		—		15		—
The Judiciary of the U.S. Government (“JUD”)		7		—		11		1
Bureau of the Fiscal Service (“BFS”)		7		—		11		27
National Park Services (“NPS”)		7		19		7		19
U.S. Coast Guard (“USCG”)		7		—		7		—
Health Resources and Services Administration (“HRSA”)		—		—		3		—
Patent and Trademark Office (“PTO”)		—		8		—		8
Customs and Border Protection (“CBP”)		—		11		—		11
Social Security Administration (“SSA”)		—		—		—		19
	$	1,639	$	795	$	4,090	$	2,556

Organization and Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2021 ft² Property
Easterly Government Properties LP [Member]
Organization And Significant Accounting Policies [Line Items]
Outstanding common units of aggregate limited partnership interest owned percentage	88.50%
Wholly Owned Operating Properties [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	83
Leased percentage of operating properties	99.00%
Aggregate area of land \| ft²	7,500,000
Wholly Owned Operating Properties [Member] \| Government [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	82
Wholly Owned Operating Properties [Member] \| Private Tenants [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	1
Wholly Owned Properties Under Development [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	1
Aggregate area of land \| ft²	200,000

Real Estate and Intangibles - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($) Property	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) Property	Sep. 30, 2020 USD ($)
Real Estate Properties [Line Items]
Revenues	$ 69,608	$ 61,131	$ 203,223	$ 179,875
Net income available to Easterly Government Properties, Inc.	7,977	4,264	23,169	9,627
Acquisition-related expenses	518	$ 467	1,488	$ 1,673
Net proceeds from the sale of operating property			7,336
Gain on the sale of operating property	$ 777		1,307
Operating Properties Acquired [Member]
Real Estate Properties [Line Items]
Acquisition-related expenses			1,500
Net proceeds from the sale of operating property			3,300
Gain on the sale of operating property			500
Operating Properties Acquired [Member] \| United Technologies Midland [Member]
Real Estate Properties [Line Items]
Net proceeds from the sale of operating property			4,000
Gain on the sale of operating property			$ 800
Operating Properties Acquired [Member] \| FBI Knoxville ICE Louisville, USAO Louisville, USAO Springfield and NWS Kansas City [Member]
Real Estate Properties [Line Items]
Number of properties \| Property	6		6
Purchase price	$ 134,000		$ 134,000
Operating Properties Acquired [Member] \| D H A Aurora F B I D E A El Paso V A Mobile And V A Chico And F B I Member
Real Estate Properties [Line Items]
Weighted average amortization period			10 years 9 months 10 days
Revenues			$ 5,400
Net income available to Easterly Government Properties, Inc.			$ 1,200

Real Estate and Intangibles - Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Operating Properties Acquired [Member] - D E A Sterling V A F D A College Park M D And Various G S A Portland O R J S C Scffolk F B I New Orleans Member $ in Thousands	Sep. 30, 2021 USD ($)
Business Acquisition [Line Items]
Total real estate	$ 118,939
Total intangible assets	15,062
Total intangible liabilities	(1)
Purchase price	134,000
Real Estate Investment [Member]
Business Acquisition [Line Items]
Land	6,186
Building	103,214
Acquired tenant improvements	9,539
In-place leases [Member]
Business Acquisition [Line Items]
Total intangible assets	11,325
Acquired Leasing Commissions [Member]
Business Acquisition [Line Items]
Total intangible assets	3,436
Above Market Leases [Member]
Business Acquisition [Line Items]
Total intangible assets	301
Below Market Leases [Member]
Business Acquisition [Line Items]
Total intangible liabilities	$ (1)

Real Estate and Intangibles - Schedule of Real Estate and Intangibles (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Real estate properties, net
Land	$ 218,091
Building and improvements	2,215,548
Acquired tenant improvements	85,795
Construction in progress	28,060
Accumulated depreciation	(260,286)
Total Real estate properties, net	2,287,208	$ 2,208,661
Intangible assets, net
Accumulated amortization	(189,115)
Total Intangible assets, net	157,906
Intangible liabilities, net
Intangible Liabilities, Below market leases	(73,483)
Intangible Liabilities, Accumulated amortization	52,797
Total Intangible liabilities, net	(20,686)
In-place leases [Member]
Intangible assets, net
Above market leases	264,991
Acquired Leasing Commissions [Member]
Intangible assets, net
Above market leases	64,489
Above Market Leases [Member]
Intangible assets, net
Above market leases	$ 17,541

Real Estate and Intangibles - Summary of Scheduled Amortization Market Lease Intangibles (Detail) $ in Thousands	Sep. 30, 2021 USD ($)
Acquired Above-Market Lease Intangibles
2021	$ 374
2022	1,413
2023	1,390
2024	1,341
2025	1,286
Acquired Below-Market Lease Intangibles
2021	(1,134)
2022	(4,201)
2023	(4,024)
2024	(2,877)
2025	$ (2,170)

Debt - Summary of Borrowings (Detail) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2021

Oct. 14, 2021

Dec. 31, 2020

Debt - Summary of Borrowings (Parenthetical) (Detail)	9 Months Ended
Debt - Summary of Borrowings (Parenthetical) (Detail)	Sep. 30, 2021 USD ($) Swap
CBP Savannah [Member] \| Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	4.12%
ICE Charleston [Member] \| Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.93%
MEPCOM Jacksonville [Member] \| Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.89%
USFS II Albuquerque [Member] \| Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.92%
DEA Pleasanton [Member] \| Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	1.80%
VA Loma Linda [Member] \| Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.78%
VA Golden [Member] \| Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	5.03%
2018 Term Loan Facility [Member] \| Interest Rate Swaps [Member]
Debt Instrument [Line Items]
Number of forward interest rate swaps \| Swap	4
Forward swaps effective date	Dec. 13, 2018
Aggregate notional value of interest rate swaps	$ 150,000,000.0
Forward swaps interest rate	3.91%
2016 Term Loan Facility [Member] \| Interest Rate Swaps [Member]
Debt Instrument [Line Items]
Number of forward interest rate swaps \| Swap	2
Forward swaps effective date	Mar. 29, 2017
Aggregate notional value of interest rate swaps	$ 100,000,000.0
Forward swaps interest rate	2.67%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line Of Credit Facility Accordion Feature Additional Borrowing Capacity	$ 250,000,000.0
Amount available under revolving credit facility	$ 337,500,000
Line of Credit Facility, Description	revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee
LIBOR [Member]
Debt Instrument [Line Items]
Loan, interest rate	0.08%

Derivative and Hedging Activities - Schedule of Key Terms and Fair Values of Our Interest Rate Swap Derivatives (Detail)	9 Months Ended
	Sep. 30, 2021 USD ($)
Interest Swap Rate at 1.14 % Fixed Rate[Member]
Derivative [Line Items]
Aggregate notional value of interest rate swaps	$ 100,000,000
Forward swaps interest rate	1.41%
Floating Rate Index	One-Month LIBOR
Forward swaps effective date	Mar. 29, 2017
Expiration Date	Sep. 29, 2023
Fair Value	$ (2,181,000)
Interest Swap Rate at 2.71 % Fixed Rate[Member]
Derivative [Line Items]
Aggregate notional value of interest rate swaps	$ 150,000,000
Forward swaps interest rate	2.71%
Floating Rate Index	One-Month LIBOR
Forward swaps effective date	Dec. 13, 2018
Expiration Date	Jun. 19, 2023
Fair Value	$ (6,325,000)

Derivative and Hedging Activities - Schedule of Fair Value of Our Interest Rate Derivatives as Well as Their Classification on Our Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Interest rate swaps - Liability	$ (8,506)	$ (12,781)

Derivative and Hedging Activities - Additional Information (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Estimates reclassified from accumulated other comprehensive income (loss) increase to interest expense over the next 12 months	$ 5.2
Credit risk related contingent features derivatives, net fair value of derivatives in liability position	8.8
Breach of agreement termination value	$ 8.8

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swaps - Liability	$ (8,506)	$ (12,781)
Fair Value Measured on Recurring Basis [Member] \| Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swaps - Liability	$ (8,506)

Equity - Summary of Dividends Declared (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2021
Performance Based LTIP Units[Member]
Dividends Payable [Line Items]
Operating partnership dividend rate percentage	10.00%
Service Based LTIP Units[Member]
Dividends Payable [Line Items]
Operating partnership dividend rate percentage	100.00%

Equity - Schedule of Information with Respect to ATM Program (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Subsidiary Sale Of Stock [Line Items]
Net Proceeds	$ 90,914	$ 143,201
2019 ATM Program [Member]
Subsidiary Sale Of Stock [Line Items]
Number of Shares Sold	1,885,289
Net Proceeds	$ 41,400
Price per share	$ 21.94

Leases - Additional Information (Detail) $ in Millions	9 Months Ended	12 Months Ended
Leases - Additional Information (Detail) $ in Millions	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($) Agreement
Lessee Lease Description [Line Items]
Average age of property	15 years 10 months 24 days
Right-of-use asset	$ 1.5	$ 0.4
Operating lease liability	$ 1.7	$ 0.4
Number of lease agreement \| Agreement		2
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	us-gaap:OtherLiabilities	us-gaap:OtherLiabilities
California [Member] \| San Diego [Member] \| Lease
Lessee Lease Description [Line Items]
Operating lease agreement expire date	2022-04
Washington, D.C. [Member] \| Lease
Lessee Lease Description [Line Items]
Operating lease agreement expire date	2026-08

Leases - Summary of Maturity of Fixed Lease Payments Under Company's Leases (Detail) $ in Thousands	Sep. 30, 2021 USD ($)
Leases [Abstract]
Fixed lease payments, Total	$ 1,887,601
Fixed lease payments, 2021	55,191
Fixed lease payments, 2022	209,229
Fixed lease payments, 2023	194,390
Fixed lease payments, 2024	178,731
Fixed lease payments, 2025	167,317
Fixed lease payments, Thereafter	$ 1,082,743

Leases - Schedule of Maturity of Fixed Lease Payments Under Company's Corporate Office Leases (Detail) - Corporate Office Leases [Member] $ in Thousands	Sep. 30, 2021 USD ($)
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items]
Fixed lease payments, Total	$ 1,867
Fixed lease payments, 2021	101
Fixed lease payments, 2022	278
Fixed lease payments, 2023	277
Fixed lease payments, 2024	446
Fixed lease payments, 2025	456
Fixed lease payments, Thereafter	$ 309

Concentrations Risk - Additional Information (Detail)	9 Months Ended
Concentrations Risk - Additional Information (Detail)	Sep. 30, 2021 Property
Wholly Owned Properties [Member]
Concentration Risk [Line Items]
Number of properties	83
California [Member]
Concentration Risk [Line Items]
Number of properties	17
Lease Income [Member] \| Customer Concentration Risk [Member] \| California [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	23.40%
Rentable Square Feet [Member] \| Customer Concentration Risk [Member] \| California [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	17.70%
U.S. Government [Member] \| Lease Income [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	98.60%
Non Governmental Tenants [Member] \| Lease Income [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	1.40%

Subsequent Events - Additional Information (Detail) $ in Millions				9 Months Ended
	Nov. 01, 2021 ft²	Oct. 14, 2021 USD ($) ft²	Oct. 13, 2021 ft² Property	Sep. 30, 2021 USD ($)
Subsequent Event [Line Items]
Aggregate contractual purchase price \| $				$ 635.6
Lease facility percentage				100.00%
Weighted average lease term				19 years 7 months 6 days
Subsequent Event
Subsequent Event [Line Items]
Area acquired \| ft²	80,000	489,316
Mortgage notes payable assumed \| $		$ 51.5
Lease expiration date	2041-05
Subsequent Event \| Minimum [Member]
Subsequent Event [Line Items]
Lease expiration date		2024
Subsequent Event \| Maximum
Subsequent Event [Line Items]
Lease expiration date		2042
J V Partner \| Subsequent Event
Subsequent Event [Line Items]
Number of properties \| Property			10
Area acquired \| ft²			1,214,165
Stake rate			53.00%
J V Partner \| Portfolio Acquisition [Member] \| Subsequent Event
Subsequent Event [Line Items]
Stake rate			47.00%