UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 1, 2022, we issued a press release announcing our results of operations for the third quarter ended September 30, 2022. A copy of this press release as well as a copy of our supplemental information package are available on our website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. The information in this Item 2.02 as well as the attached Exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
We will host a webcast and conference call at 11:00a.m. Eastern Time November 1, 2022, to review our third quarter 2022 performance, discuss recent events and conduct a question-and-answer session. The number to call is 1-877-407-9716 (domestic) and 1-201-493-6779 (international). A live webcast will be available in the Investor Relations section of our website. A replay of the conference call will be available through November 15, 2022, by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and entering the passcode 13733383. Please note that the full text of the press release and supplemental information package are available through our website at ir.easterlyreit.com. The information contained on our website is not incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit Number |
Description |
99.1 |
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99.2 |
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104 |
Cover Page Interactive Data File (embedded within the inline XBRL document.) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EASTERLY GOVERNMENT PROPERTIES, INC. |
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By: |
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/s/ William C. Trimble, III |
Name: |
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William C. Trimble, III |
Title: |
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Chief Executive Officer and President |
Date: November 1, 2022
Exhibit 99.1
EASTERLY GOVERNMENT PROPERTIES
REPORTS THIRD QUARTER 2022 RESULTS
WASHINGTON, D.C. – November 1, 2022 – Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust (“REIT”) focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, today announced its results of operations for the quarter ended September 30, 2022.
Highlights for the Quarter Ended September 30, 2022:
"As macroeconomic headwinds challenge the REIT industry, the stability and attractive yield of our dividend continues to differentiate Easterly," said Meghan G. Baivier, Easterly's Chief Financial and Operating Officer. "With a potential recession in sight, it gives me great comfort knowing 98% of the cashflows supporting our dividend originate with the United States Government."
Financial Results for the Nine Months Ended September 30, 2022:
Net income of $17.1 million, or $0.17 per share on a fully diluted basis
FFO of $98.8 million, or $0.97 per share on a fully diluted basis
FFO, as Adjusted of $98.9 million, or $0.97 per share on a fully diluted basis
CAD of $86.8 million
Portfolio Operations
As of September 30, 2022, the Company or the JV owned 95 operating properties in the United States encompassing approximately 9.1 million leased square feet, including 94 operating properties that were leased primarily to U.S. Government tenant agencies and one operating property that is entirely leased to a private tenant. In addition, the Company wholly owned one property under re-development that the Company expects will encompass approximately 0.2 million rentable square feet upon completion. The re-development project, located in Atlanta, Georgia, is currently in design and, once complete, a 20-year lease with the GSA is expected to commence for the beneficial use of the U.S. Food and Drug Administration (FDA). As of September 30, 2022, the portfolio had a weighted average age of 14.0 years, based upon the date properties were built or renovated-to-suit, and had a weighted average remaining lease term of 10.1 years.
Acquisitions
On July 14, 2022, the Company acquired, through the JV, a 67,793 leased square foot VA outpatient facility in Columbus, Georgia. With a 20-year non-cancelable lease term, VA - Columbus is the seventh property to be acquired in the VA Portfolio and provides an enhanced range of services to the approximately 30,000 surrounding veterans that reside close to the Georgia-Alabama state line.
On August 23, 2022, the Company acquired a 28,900 leased square foot U.S. District courthouse in Council Bluffs, Iowa. JUD - Council Bluffs is a build-to-suit facility constructed in 2021 and 100% leased to the GSA on behalf of the U.S. District Court under a 20-year non-cancelable lease that does not expire until 2041. The lease also features two five-year renewal options that, if exercised, would extend the lease until 2051. The recently constructed facility is occupied by all three branches of government: the Judiciary includes a district clerk’s office, a bankruptcy clerk’s office, a probation and pre-trial services office, and the public defender’s office. Offices for both the US Attorneys and US Marshals Service represent the Executive Branch. And finally, district offices for Iowa’s two U.S. Senators – Senator Grassley and Senator Ernst – represent the Legislative Branch.
Balance Sheet and Capital Markets Activity
As of September 30, 2022, the Company had total indebtedness of approximately $1.4 billion comprised of $177.8 million outstanding on its revolving credit facility, $100.0 million outstanding on its 2016 term loan facility, $150.0 million outstanding on its 2018 term loan facility, $700.0 million of senior unsecured notes, and $247.5 million of mortgage debt (excluding unamortized premiums and discounts and deferred financing fees). At September 30, 2022, Easterly’s outstanding debt had a weighted average maturity of 5.6 years and a weighted average interest rate of 3.7%. As of September 30, 2022, Easterly’s Net Debt to total enterprise value was 45.7% and its Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio was 7.4x.
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As of the date of this release, the Company expects to receive aggregate net proceeds of approximately $92.5 million from the sale of an aggregate of 4,259,000 shares of the Company's common stock that have not yet been settled, including 2,309,000 shares pursuant to the Offering, and 1,950,000 shares from sales under the Company's December 2019 ATM Program, assuming these forward sales transactions are physically settled in full using a net weighted average combined initial forward sales price of $21.72 per share.
Dividend
On October 26, 2022, the Board of Directors of Easterly approved a cash dividend for the third quarter of 2022 in the amount of $0.265 per common share. The dividend will be payable November 23, 2022 to shareholders of record on November 11, 2022.
Subsequent Events and Pro Forma Metrics
On November 1, 2022, Easterly announced it had entered into an agreement to sell a 10-property portfolio totaling approximately 668,000 leased square feet for approximately $205.3 million in gross proceeds (the "Disposition Portfolio"). As of September 30, 2022, the Disposition Portfolio was 99% leased to the U.S. Government with a weighted average remaining lease term of 7.9 years and a weighted average age of 14.0 years. The Disposition Portfolio features a diverse mix of tenant agencies, asset type, lease roll, and geographic exposure. At the time of its announcement, Easterly has completed the sale of nine of the 10 assets, with an expected closing on the remaining asset in late December 2022. Assets within the Disposition Portfolio include (arranged by building size and closing status):
Expected to Close in December 2022:
Sale Completed on October 27, 2022:
3
"The sale of a portfolio is a meaningful event for Easterly," said William C. Trimble, III, Easterly's Chief Executive Officer. "By disposing of these 10 properties, Easterly continues to hone its bullseye focus while rebuilding capacity for future growth opportunities."
Year to date, Easterly has acquired, either directly or through the JV, six properties for an aggregate pro rata contractual purchase price of approximately $179.1 million, representing (i) $107.7 million of wholly owned acquisitions; and (ii) $71.4 million of the VA Portfolio acquisitions at the Company's pro rata share. As of the date of this release, reflecting the completed sale of nine of the 10 assets in the Disposition Portfolio, Easterly owns, directly or through the JV, 86 properties totaling 8.6 million square feet.
Assuming the Company uses gross proceeds from the sale of the Disposition Portfolio to pay off outstanding debt, as of September 30, 2022, the Company's pro forma outstanding debt would have a weighted average maturity of 6.1 years and a weighted average interest rate of 3.6%. Easterly’s pro forma Net Debt to total enterprise value would be 41.7% and its pro forma Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio would be reduced from 7.4x to 6.9x.
Guidance
This guidance is forward-looking and reflects management's view of current and future market conditions. The Company's actual results may differ materially from this guidance.
Outlook for the 12 Months Ending December 31, 2022
Related, in part, to the Portfolio Disposition, the Company is lowering its guidance for 2022 FFO per share on a fully diluted basis to a range of $1.26 - $1.28.
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Low |
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High |
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Net income (loss) per share – fully diluted basis |
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$ |
0.32 |
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0.34 |
Plus: real estate depreciation and amortization |
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$ |
0.94 |
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0.94 |
FFO per share – fully diluted basis |
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$ |
1.26 |
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1.28 |
This guidance assumes (i) no further acquisitions beyond the approximately $107.7 million of wholly owned acquisitions completed year to date, (ii) the closing of properties in the VA Portfolio totaling approximately $145.0 million at the Company’s pro rata share, (iii) the sale of the final property in the Disposition Portfolio, and (iv) no additional material development related investment in 2022.
Non-GAAP Supplemental Financial Measures
This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this press release and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the Securities and Exchange Commission from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.
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Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current Nareit definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items, nonrecurring expenditures and the unconsolidated real estate venture’s allocated share of these adjustments. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.
EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.
Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO includes the Company’s share of FFO generated by unconsolidated affiliates. FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.
Funds From Operations, as Adjusted (FFO, as Adjusted) adjusts FFO to present an alternative measure of our operating performance, which, when applicable, excludes the impact of acquisition costs, straight-line rent, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), non-cash interest expense, non-cash compensation, depreciation of non-real estate assets, other non-cash items, and the unconsolidated real estate venture’s allocated share of these adjustments. By excluding these income and expense items from FFO, as Adjusted, the Company believes it provides useful information as these items have no cash impact. In addition, by excluding acquisition related costs the Company believes FFO, as Adjusted provides useful information that is comparable across periods and more accurately reflects the operating performance of the Company’s properties. Certain prior year amounts have been updated to conform to the current year FFO, as Adjusted definition.
Net Debt and Adjusted Net Debt. Net Debt represents our consolidated debt and our share of unconsolidated debt adjusted to exclude our share of unamortized premiums and discounts and deferred financing fees, less our share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been
5
financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 25 of the Company’s Q3 2022 Supplemental Information Package for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs.
Other Definitions
Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP.
Conference Call Information
The Company will host a webcast and conference call at 11:00 am Eastern time on November 1, 2022, to review the third quarter 2022 performance, discuss recent events and conduct a question-and-answer session. The number to call is 1-877-407-9716 (domestic) and 1-201-493-6779 (international). A live webcast will be available in the Investor Relations section of the Company’s website. A replay of the conference call will be available through November 15, 2022, by dialing 844-512-2921 (domestic) and 1-412-317-6671 (international) and entering the passcode 13733383. Please note that the full text of the press release and supplemental information package are available through the Company’s website at ir.easterlyreit.com.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.
Contact:
Easterly Government Properties, Inc.
Lindsay S. Winterhalter
Supervisory Vice President, Investor Relations & Operations
202-596-3947
ir@easterlyreit.com
Forward Looking Statements
We make statements in this press release that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions and include our guidance with respect to Net income (loss)
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and FFO per share on a fully diluted basis. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this press release for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; loss of key personnel; the continuing adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies and on our financial condition and results of operations; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or to yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (SEC) on February 28, 2022, in the “Risk Factors” section of our Form 10-Q for the quarter ended September 30, 2022, to be filed with the SEC on or about November 1, 2022, and under the heading “Risk Factors” in our other public filings. In addition, our anticipated qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise.
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Balance Sheet
(Unaudited, in thousands, except share amounts)
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September 30, 2022 |
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December 31, 2021 |
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Assets |
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Real estate properties, net |
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$ |
2,463,961 |
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$ |
2,399,188 |
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Cash and cash equivalents |
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11,032 |
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11,132 |
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Restricted cash |
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10,462 |
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9,011 |
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Tenant accounts receivable |
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60,250 |
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58,733 |
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Investment in unconsolidated real estate venture |
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199,338 |
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131,840 |
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Intangible assets, net |
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178,327 |
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186,307 |
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Interest rate swaps |
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4,515 |
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- |
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Prepaid expenses and other assets |
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33,765 |
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29,901 |
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Total assets |
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$ |
2,961,650 |
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$ |
2,826,112 |
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Liabilities |
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Revolving credit facility |
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177,750 |
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14,500 |
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Term loan facilities, net |
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248,879 |
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248,579 |
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Notes payable, net |
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695,935 |
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695,589 |
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Mortgage notes payable, net |
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247,969 |
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252,421 |
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Intangible liabilities, net |
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19,139 |
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19,718 |
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Deferred revenue |
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85,510 |
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87,134 |
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Interest rate swaps |
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- |
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5,700 |
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Accounts payable, accrued expenses and other liabilities |
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67,673 |
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60,890 |
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Total liabilities |
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1,542,855 |
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1,384,531 |
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Equity |
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Common stock, par value $0.01, 200,000,000 shares authorized, |
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908 |
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901 |
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Additional paid-in capital |
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1,622,628 |
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1,604,712 |
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Retained earnings |
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77,203 |
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62,023 |
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Cumulative dividends |
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(451,917 |
) |
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(379,895 |
) |
Accumulated other comprehensive income (loss) |
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3,987 |
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|
|
(5,072 |
) |
Total stockholders' equity |
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1,252,809 |
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1,282,669 |
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Non-controlling interest in Operating Partnership |
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165,986 |
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158,912 |
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Total equity |
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1,418,795 |
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|
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1,441,581 |
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Total liabilities and equity |
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$ |
2,961,650 |
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$ |
2,826,112 |
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8
Income Statement
(Unaudited, in thousands, except share and per share amounts)
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Three Months Ended |
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Nine Months Ended |
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September 30, 2022 |
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September 30, 2021 |
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September 30, 2022 |
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September 30, 2021 |
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Revenues |
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Rental income |
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$ |
72,643 |
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$ |
67,439 |
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$ |
214,238 |
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$ |
197,713 |
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Tenant reimbursements |
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1,616 |
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|
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1,527 |
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3,676 |
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|
|
3,746 |
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Asset management income |
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377 |
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|
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- |
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|
942 |
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- |
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Other income |
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405 |
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642 |
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1,244 |
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|
1,764 |
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Total revenues |
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75,041 |
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69,608 |
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220,100 |
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203,223 |
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Expenses |
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Property operating |
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17,802 |
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15,188 |
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48,811 |
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41,578 |
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Real estate taxes |
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8,177 |
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7,626 |
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23,854 |
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|
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22,465 |
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Depreciation and amortization |
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25,050 |
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|
|
22,765 |
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|
|
73,552 |
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|
|
67,615 |
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Acquisition costs |
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275 |
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|
|
518 |
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|
|
939 |
|
|
|
1,488 |
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Corporate general and administrative |
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5,870 |
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|
|
5,893 |
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|
|
17,819 |
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|
|
17,469 |
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Total expenses |
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57,174 |
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|
|
51,990 |
|
|
|
164,975 |
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|
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150,615 |
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|
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|
|
|
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|
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Other income (expense) |
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|
|
|
|
|
|
|
|
|
|
|
||||
Income from unconsolidated real estate venture |
|
|
830 |
|
|
|
- |
|
|
|
2,286 |
|
|
|
- |
|
Interest expense, net |
|
|
(12,408 |
) |
|
|
(9,353 |
) |
|
|
(34,729 |
) |
|
|
(27,739 |
) |
Gain on the sale of operating property |
|
|
- |
|
|
|
777 |
|
|
|
- |
|
|
|
1,307 |
|
Impairment loss |
|
|
(5,540 |
) |
|
|
- |
|
|
|
(5,540 |
) |
|
|
- |
|
Net income |
|
|
749 |
|
|
|
9,042 |
|
|
|
17,142 |
|
|
|
26,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlling interest in Operating Partnership |
|
|
(107 |
) |
|
|
(1,065 |
) |
|
|
(1,962 |
) |
|
|
(3,007 |
) |
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. |
|
$ |
642 |
|
|
$ |
7,977 |
|
|
$ |
15,180 |
|
|
$ |
23,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.16 |
|
|
$ |
0.27 |
|
Diluted |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.16 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
90,772,706 |
|
|
|
83,961,693 |
|
|
|
90,560,471 |
|
|
|
83,306,654 |
|
Diluted |
|
|
91,119,372 |
|
|
|
84,472,257 |
|
|
|
90,886,108 |
|
|
|
83,774,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income, per share - fully diluted basis |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.17 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - |
|
|
|
|
|
|
|
|
|
|
|
|
||||
fully diluted basis |
|
|
102,848,357 |
|
|
|
95,275,184 |
|
|
|
102,315,465 |
|
|
|
94,205,897 |
|
9
EBITDA, FFO and CAD
(Unaudited, in thousands, except share and per share amounts)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
Net income |
|
$ |
749 |
|
|
$ |
9,042 |
|
|
$ |
17,142 |
|
|
$ |
26,176 |
|
Depreciation and amortization |
|
|
25,050 |
|
|
|
22,765 |
|
|
|
73,552 |
|
|
|
67,615 |
|
Interest expense |
|
|
12,408 |
|
|
|
9,353 |
|
|
|
34,729 |
|
|
|
27,739 |
|
Tax expense |
|
|
121 |
|
|
|
86 |
|
|
|
346 |
|
|
|
397 |
|
Gain on the sale of operating property |
|
|
- |
|
|
|
(777 |
) |
|
|
- |
|
|
|
(1,307 |
) |
Impairment loss |
|
|
5,540 |
|
|
|
- |
|
|
|
5,540 |
|
|
|
- |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
1,395 |
|
|
|
- |
|
|
|
3,503 |
|
|
|
- |
|
EBITDA |
|
$ |
45,263 |
|
|
$ |
40,469 |
|
|
$ |
134,812 |
|
|
$ |
120,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pro forma adjustments(1) |
|
|
164 |
|
|
|
|
|
|
|
|
|
|
|||
Pro forma EBITDA |
|
$ |
45,427 |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pro forma adjustments for the Disposition Portfolio Properties(2) |
|
|
(3,745 |
) |
|
|
|
|
|
|
|
|
|
|||
Pro forma EBITDA, as Adjusted |
|
$ |
41,682 |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
749 |
|
|
$ |
9,042 |
|
|
$ |
17,142 |
|
|
$ |
26,176 |
|
Depreciation of real estate assets |
|
|
24,802 |
|
|
|
22,741 |
|
|
|
72,810 |
|
|
|
67,561 |
|
Gain on the sale of operating property |
|
|
- |
|
|
|
(777 |
) |
|
|
- |
|
|
|
(1,307 |
) |
Impairment loss |
|
|
5,540 |
|
|
|
- |
|
|
|
5,540 |
|
|
|
- |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
1,347 |
|
|
|
- |
|
|
|
3,352 |
|
|
|
- |
|
FFO |
|
$ |
32,438 |
|
|
$ |
31,006 |
|
|
$ |
98,844 |
|
|
$ |
92,430 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition costs |
|
|
275 |
|
|
|
518 |
|
|
|
939 |
|
|
|
1,488 |
|
Straight-line rent and other non-cash adjustments |
|
|
1,090 |
|
|
|
(1,580 |
) |
|
|
559 |
|
|
|
(4,317 |
) |
Amortization of above-/below-market leases |
|
|
(769 |
) |
|
|
(1,058 |
) |
|
|
(2,373 |
) |
|
|
(3,569 |
) |
Amortization of deferred revenue |
|
|
(1,472 |
) |
|
|
(1,398 |
) |
|
|
(4,313 |
) |
|
|
(4,217 |
) |
Non-cash interest expense |
|
|
235 |
|
|
|
380 |
|
|
|
695 |
|
|
|
1,107 |
|
Non-cash compensation |
|
|
1,625 |
|
|
|
1,333 |
|
|
|
4,891 |
|
|
|
3,700 |
|
Depreciation of non-real estate assets |
|
|
248 |
|
|
|
24 |
|
|
|
742 |
|
|
|
54 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
(374 |
) |
|
|
- |
|
|
|
(1,051 |
) |
|
|
- |
|
FFO, as Adjusted |
|
$ |
33,296 |
|
|
$ |
29,225 |
|
|
$ |
98,933 |
|
|
$ |
86,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO, per share - fully diluted basis |
|
$ |
0.32 |
|
|
$ |
0.33 |
|
|
$ |
0.97 |
|
|
$ |
0.98 |
|
FFO, as Adjusted, per share - fully diluted basis |
|
$ |
0.32 |
|
|
$ |
0.31 |
|
|
$ |
0.97 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO, as Adjusted |
|
$ |
33,296 |
|
|
$ |
29,225 |
|
|
$ |
98,933 |
|
|
$ |
86,676 |
|
Acquisition costs |
|
|
(275 |
) |
|
|
(518 |
) |
|
|
(939 |
) |
|
|
(1,488 |
) |
Principal amortization |
|
|
(1,314 |
) |
|
|
(1,062 |
) |
|
|
(3,942 |
) |
|
|
(2,948 |
) |
Maintenance capital expenditures |
|
|
(2,217 |
) |
|
|
(1,293 |
) |
|
|
(5,123 |
) |
|
|
(6,305 |
) |
Contractual tenant improvements |
|
|
(961 |
) |
|
|
(241 |
) |
|
|
(2,089 |
) |
|
|
(2,168 |
) |
Unconsolidated real estate venture allocated share of above adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Cash Available for Distribution (CAD) |
|
$ |
28,529 |
|
|
$ |
26,111 |
|
|
$ |
86,840 |
|
|
$ |
73,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - fully diluted basis |
|
|
102,848,357 |
|
|
|
95,275,184 |
|
|
|
102,315,465 |
|
|
|
94,205,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
1 Pro forma assuming a full quarter of operations from the two properties acquired in the third quarter of 2022.
2 Pro forma assuming a full quarter of operations without the nine properties disposed of and one property expected to be disposed of subsequent to the third quarter of 2022 (the "Disposition Portfolio Properties")
10
Net Debt and Adjusted Net Debt
(Unaudited, in thousands)
|
September 30, 2022 |
|
|
Total Debt(1) |
$ |
1,375,266 |
|
Less: Cash and cash equivalents |
|
(11,226 |
) |
Net Debt |
$ |
1,364,040 |
|
Less: Adjustment for development projects(2) |
|
(12,648 |
) |
Adjusted Net Debt |
$ |
1,351,392 |
|
|
|
|
|
Disposition Pro Forma Debt Statistics(3) |
September 30, 2022 |
|
|
Total Debt(1) |
$ |
1,375,266 |
|
Less: Cash and cash equivalents |
|
(11,226 |
) |
Net Debt |
$ |
1,364,040 |
|
Less: Gross proceeds from the Disposition Portfolio Properties(3) |
|
(205,320 |
) |
Pro Forma Net Debt |
$ |
1,158,720 |
|
Less: Adjustment for development(2) |
|
(12,648 |
) |
Pro Forma Adjusted Net Debt |
$ |
1,146,072 |
|
1 Excludes unamortized premiums / discounts and deferred financing fees.
2 See definition of Adjusted Net Debt on Page 5.
3 The Company intends to use the gross proceeds from the sale of the ten Disposition Portfolio Properties to extinguish the secured mortgage debt at MEPCOM - Jacksonville and pay off outstanding debt on the Company's revolving credit facility.
11
Exhibit 99.2
Disclaimers |
|
|
|
Forward-looking Statement
We make statements in this Supplemental Information Package that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this Supplemental Information Package for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; loss of key personnel; the continuing adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies and the financial condition and results of operations of the Company; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or to yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission, or the SEC, on February 28, 2022, in the “Risk Factors” section of our Form 10-Q for the quarter ended September 30, 2022, to be filed with the SEC on or about November 1, 2022 and the factors included under the heading “Risk Factors” in our other public filings. In addition, our qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Ratings
Ratings are not recommendations to buy, sell or hold the Company’s securities.
The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarter ended September 30, 2022 that will be released in our Form 10-Q to be filed with the SEC on or about November 1, 2022.
2
Supplemental Definitions |
|
|
|
This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this Supplemental Information Package and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. Additional detail can be found in the Company’s most recent quarterly report on Form 10-Q and the Company’s most recent annual report on Form 10-K, as well as other documents filed with or furnished to the SEC from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” “our pro rata share” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.
Annualized lease income is defined as the annualized contractual base rent for the last month in a specified period, plus the annualized straight-line rent adjustments for the last month in such period and the annualized net expense reimbursements earned by us for the last month in such period.
Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current Nareit definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items, nonrecurring expenditures and the unconsolidated real estate venture’s allocated share of these adjustments. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.
Cash fixed charge coverage ratio is calculated as EBITDA divided by the sum of principal amortization and interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.
Cash interest coverage ratio is calculated as EBITDA divided by interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.
EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.
Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP.
Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO includes the Company’s share of FFO generated by unconsolidated affiliates. FFO is a widely
3
Supplemental Definitions |
|
|
|
recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.
Funds From Operations, as Adjusted (FFO, as Adjusted) adjusts FFO to present an alternative measure of our operating performance, which, when applicable, excludes the impact of acquisition costs, straight-line rent, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), non-cash interest expense, non-cash compensation, depreciation of non-real estate assets, other non-cash items, and the unconsolidated real estate venture’s allocated share of these adjustments. By excluding these income and expense items from FFO, as Adjusted, the Company believes it provides useful information as these items have no cash impact. In addition, by excluding acquisition related costs the Company believes FFO, as Adjusted provides useful information that is comparable across periods and more accurately reflects the operating performance of the Company’s properties. Certain prior year amounts have been updated to conform to the current year FFO, as Adjusted definition.
Net Operating Income (NOI) and Cash NOI. NOI is calculated as net income adjusted to exclude depreciation and amortization, acquisition costs, corporate general and administrative costs, interest expense, gains or losses from sales of property, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. Cash NOI excludes from NOI straight-line rent, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), and the unconsolidated real estate venture’s allocated share of these adjustments. NOI and Cash NOI presented by the Company may not be comparable to NOI and Cash NOI reported by other REITs that define NOI and Cash NOI differently. The Company believes that NOI and Cash NOI provide investors with useful measures of the operating performance of our properties. NOI and Cash NOI should not be considered an alternative to net income as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions. Certain prior year amounts have been updated to conform to the current year Cash NOI definition.
Net Debt and Adjusted Net Debt. Net Debt represents our consolidated debt and our share of unconsolidated debt adjusted to exclude our share of unamortized premiums and discounts and deferred financing fees, less our share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 25 for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs.
4
Table of Contents |
|
|
|
Overview |
|
|
|
|
|
|
6 |
|
|
|
|
|
7 |
|
|
|
|
Corporate Financials |
|
|
|
|
|
|
8 |
|
|
|
|
|
9 |
|
|
|
|
|
10 |
|
|
|
|
|
11 |
|
|
|
|
|
12 |
|
|
|
|
|
13 |
|
|
|
|
Debt |
|
|
|
|
|
|
15 |
|
|
|
|
|
17 |
|
|
|
|
Properties |
|
|
|
|
|
Leased Operating Property Overview |
|
18 |
|
|
|
|
22 |
|
|
|
|
|
24 |
|
|
|
|
|
25 |
|
|
|
|
5
Corporate Information and Analyst Coverage |
|
|
|
Corporate Information |
|||
|
|
|
|
Corporate Headquarters |
Stock Exchange Listing |
Information Requests |
Investor Relations |
2001 K Street NW |
New York Stock Exchange |
Please contact ir@easterlyreit.com |
Lindsay Winterhalter, |
Suite 775 North |
|
or 202-596-3947 to request an |
Supervisory VP, |
Washington, DC 20006 |
Ticker |
Investor Relations package |
Investor Relations |
202-595-9500 |
DEA |
|
& Operations |
Executive Team |
|
Board of Directors |
|
William Trimble III, CEO |
Darrell Crate, Chairman |
William Binnie, Lead Independent Director |
Emil Henry Jr. |
Michael Ibe, Vice-Chairman and EVP |
Meghan Baivier, CFO & COO |
Darrell Crate |
Michael Ibe |
Mark Bauer, EVP |
Ronald Kendall, EVP |
Cynthia Fisher |
Tara Innes |
Andrew Pulliam, EVP |
Allison Marino, CAO |
Scott Freeman |
William Trimble III |
Equity Research Coverage |
|
|
|
|
|
Citigroup |
Raymond James & Associates |
RBC Capital Markets |
Michael A. Griffin |
Bill Crow |
Michael Carroll |
212-816-5871 |
727-567-2594 |
440-715-2649 |
|
|
|
Jefferies |
Truist Securities |
Compass Point Research & Trading, LLC |
Jonathan Petersen |
Michael R. Lewis |
Merrill Ross |
212-284-1705 |
212-319-5659 |
202-534-1392 |
|
|
|
BMO Capital Markets |
|
|
John P. Kim |
|
|
212-885-4115 |
|
|
Any opinions, estimates, forecasts or predictions regarding Easterly Government Properties, Inc.’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Easterly Government Properties, Inc. or its management. Easterly Government Properties, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.
6
Executive Summary (In thousands, except share and per share amounts) |
|
|
|
Outstanding Classes of Stock and Partnership Units - Fully Diluted Basis |
At September 30, 2022 |
|
|
Earnings |
Three months ended September 30, 2022 |
|
Three months ended September 30, 2021 |
|
|||
Common shares |
|
90,772,706 |
|
|
Net income available to Easterly Government Properties, Inc. |
$ |
642 |
|
$ |
7,977 |
|
Unvested restricted shares |
|
41,315 |
|
|
Net income available to Easterly Government Properties, Inc. |
|
|
|
|
||
Common partnership and vested LTIP units |
|
12,032,018 |
|
|
per share: |
|
|
|
|
||
Total - fully diluted basis |
|
102,846,039 |
|
|
Basic |
$ |
0.01 |
|
$ |
0.09 |
|
|
|
|
|
Diluted |
$ |
0.01 |
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|||
Market Capitalization |
At September 30, 2022 |
|
|
Net income |
$ |
749 |
|
$ |
9,042 |
|
|
Price of Common Shares |
$ |
15.77 |
|
|
Net income, per share - fully diluted basis |
$ |
0.01 |
|
$ |
0.09 |
|
Total equity market capitalization - fully diluted basis |
$ |
1,621,882 |
|
|
Funds From Operations (FFO) |
$ |
32,438 |
|
$ |
31,006 |
|
Net Debt |
|
1,364,040 |
|
|
FFO, per share - fully diluted basis |
$ |
0.32 |
|
$ |
0.33 |
|
Total enterprise value |
$ |
2,985,922 |
|
|
|
|
|
|
|
||
|
|
|
|
FFO, as Adjusted |
$ |
33,296 |
|
$ |
29,225 |
|
|
|
|
|
|
FFO, as Adjusted, per share - fully diluted basis |
$ |
0.32 |
|
$ |
0.31 |
|
|
Ratios |
At September 30, 2022 |
|
|
|
|
|
|
|
|||
Net debt to total enterprise value |
|
45.7 |
% |
|
Cash Available for Distribution (CAD) |
$ |
28,529 |
|
$ |
26,111 |
|
Net debt to annualized quarterly EBITDA |
|
7.5 |
x |
|
|
|
|
|
|
||
Adjusted Net Debt to annualized quarterly pro forma EBITDA |
|
7.4 |
x |
|
Liquidity |
At September 30, 2022 |
|
||||
Cash interest coverage ratio |
|
3.7 |
x |
|
Cash and cash equivalents |
|
|
$ |
11,226 |
|
|
Cash fixed charge coverage ratio |
|
3.4 |
x |
|
Available under $450 million senior unsecured revolving credit facility(1) |
|
$ |
272,125 |
|
||
|
|
|
|
|
|
|
|
|
|||
(1) Revolving credit facility has an accordion feature that provides additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250 million, for a total revolving credit facility size of not more than $700 million.
7
Balance Sheets (Unaudited, in thousands, except share amounts) |
|
|
|
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
||
Assets |
|
|
|
|
|
|
||
Real estate properties, net |
|
$ |
2,463,961 |
|
|
$ |
2,399,188 |
|
Cash and cash equivalents |
|
|
11,032 |
|
|
|
11,132 |
|
Restricted cash |
|
|
10,462 |
|
|
|
9,011 |
|
Tenant accounts receivable |
|
|
60,250 |
|
|
|
58,733 |
|
Investment in unconsolidated real estate venture |
|
|
199,338 |
|
|
|
131,840 |
|
Intangible assets, net |
|
|
178,327 |
|
|
|
186,307 |
|
Interest rate swaps |
|
|
4,515 |
|
|
|
- |
|
Prepaid expenses and other assets |
|
|
33,765 |
|
|
|
29,901 |
|
Total assets |
|
$ |
2,961,650 |
|
|
$ |
2,826,112 |
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
||
Revolving credit facility |
|
|
177,750 |
|
|
|
14,500 |
|
Term loan facilities, net |
|
|
248,879 |
|
|
|
248,579 |
|
Notes payable, net |
|
|
695,935 |
|
|
|
695,589 |
|
Mortgage notes payable, net |
|
|
247,969 |
|
|
|
252,421 |
|
Intangible liabilities, net |
|
|
19,139 |
|
|
|
19,718 |
|
Deferred revenue |
|
|
85,510 |
|
|
|
87,134 |
|
Interest rate swaps |
|
|
- |
|
|
|
5,700 |
|
Accounts payable, accrued expenses and other liabilities |
|
|
67,673 |
|
|
|
60,890 |
|
Total liabilities |
|
|
1,542,855 |
|
|
|
1,384,531 |
|
|
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
Common stock, par value $0.01, 200,000,000 shares authorized, |
|
|
908 |
|
|
|
901 |
|
Additional paid-in capital |
|
|
1,622,628 |
|
|
|
1,604,712 |
|
Retained earnings |
|
|
77,203 |
|
|
|
62,023 |
|
Cumulative dividends |
|
|
(451,917 |
) |
|
|
(379,895 |
) |
Accumulated other comprehensive income (loss) |
|
|
3,987 |
|
|
|
(5,072 |
) |
Total stockholders' equity |
|
|
1,252,809 |
|
|
|
1,282,669 |
|
Non-controlling interest in Operating Partnership |
|
|
165,986 |
|
|
|
158,912 |
|
Total equity |
|
|
1,418,795 |
|
|
|
1,441,581 |
|
Total liabilities and equity |
|
$ |
2,961,650 |
|
|
$ |
2,826,112 |
|
|
|
|
|
|
|
|
||
8
Income Statements (Unaudited, in thousands, except share and per share amounts) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
|
$ |
72,643 |
|
|
$ |
67,439 |
|
|
$ |
214,238 |
|
|
$ |
197,713 |
|
Tenant reimbursements |
|
|
1,616 |
|
|
|
1,527 |
|
|
|
3,676 |
|
|
|
3,746 |
|
Asset management income |
|
|
377 |
|
|
|
- |
|
|
|
942 |
|
|
|
- |
|
Other income |
|
|
405 |
|
|
|
642 |
|
|
|
1,244 |
|
|
|
1,764 |
|
Total revenues |
|
|
75,041 |
|
|
|
69,608 |
|
|
|
220,100 |
|
|
|
203,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Property operating |
|
|
17,802 |
|
|
|
15,188 |
|
|
|
48,811 |
|
|
|
41,578 |
|
Real estate taxes |
|
|
8,177 |
|
|
|
7,626 |
|
|
|
23,854 |
|
|
|
22,465 |
|
Depreciation and amortization |
|
|
25,050 |
|
|
|
22,765 |
|
|
|
73,552 |
|
|
|
67,615 |
|
Acquisition costs |
|
|
275 |
|
|
|
518 |
|
|
|
939 |
|
|
|
1,488 |
|
Corporate general and administrative |
|
|
5,870 |
|
|
|
5,893 |
|
|
|
17,819 |
|
|
|
17,469 |
|
Total expenses |
|
|
57,174 |
|
|
|
51,990 |
|
|
|
164,975 |
|
|
|
150,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from unconsolidated real estate venture |
|
|
830 |
|
|
|
- |
|
|
|
2,286 |
|
|
|
- |
|
Interest expense, net |
|
|
(12,408 |
) |
|
|
(9,353 |
) |
|
|
(34,729 |
) |
|
|
(27,739 |
) |
Gain on the sale of operating property |
|
|
- |
|
|
|
777 |
|
|
|
- |
|
|
|
1,307 |
|
Impairment loss |
|
|
(5,540 |
) |
|
|
- |
|
|
|
(5,540 |
) |
|
|
- |
|
Net income |
|
|
749 |
|
|
|
9,042 |
|
|
|
17,142 |
|
|
|
26,176 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlling interest in Operating Partnership |
|
|
(107 |
) |
|
|
(1,065 |
) |
|
|
(1,962 |
) |
|
|
(3,007 |
) |
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. |
|
$ |
642 |
|
|
$ |
7,977 |
|
|
$ |
15,180 |
|
|
$ |
23,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.16 |
|
|
$ |
0.27 |
|
Diluted |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.16 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
90,772,706 |
|
|
|
83,961,693 |
|
|
|
90,560,471 |
|
|
|
83,306,654 |
|
Diluted |
|
|
91,119,372 |
|
|
|
84,472,257 |
|
|
|
90,886,108 |
|
|
|
83,774,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income, per share - fully diluted basis |
|
$ |
0.01 |
|
|
$ |
0.09 |
|
|
$ |
0.17 |
|
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - |
|
|
|
|
|
|
|
|
|
|
|
|
||||
fully diluted basis |
|
|
102,848,357 |
|
|
|
95,275,184 |
|
|
|
102,315,465 |
|
|
|
94,205,897 |
|
9
Net Operating Income (Unaudited, in thousands) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
749 |
|
|
$ |
9,042 |
|
|
$ |
17,142 |
|
|
$ |
26,176 |
|
Depreciation and amortization |
|
|
25,050 |
|
|
|
22,765 |
|
|
|
73,552 |
|
|
|
67,615 |
|
Acquisition costs |
|
|
275 |
|
|
|
518 |
|
|
|
939 |
|
|
|
1,488 |
|
Corporate general and administrative |
|
|
5,870 |
|
|
|
5,893 |
|
|
|
17,819 |
|
|
|
17,469 |
|
Interest expense |
|
|
12,408 |
|
|
|
9,353 |
|
|
|
34,729 |
|
|
|
27,739 |
|
Gain on the sale of operating property |
|
|
- |
|
|
|
(777 |
) |
|
|
- |
|
|
|
(1,307 |
) |
Impairment loss |
|
|
5,540 |
|
|
|
- |
|
|
|
5,540 |
|
|
|
- |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
1,399 |
|
|
|
- |
|
|
|
3,505 |
|
|
|
- |
|
Net Operating Income |
|
|
51,291 |
|
|
|
46,794 |
|
|
|
153,226 |
|
|
|
139,180 |
|
Adjustments to Net Operating Income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line rent and other non-cash adjustments |
|
|
1,068 |
|
|
|
(1,608 |
) |
|
|
470 |
|
|
|
(4,407 |
) |
Amortization of above-/below-market leases |
|
|
(769 |
) |
|
|
(1,058 |
) |
|
|
(2,373 |
) |
|
|
(3,569 |
) |
Amortization of deferred revenue |
|
|
(1,472 |
) |
|
|
(1,398 |
) |
|
|
(4,313 |
) |
|
|
(4,217 |
) |
Unconsolidated real estate venture allocated share of above adjustments |
|
|
(413 |
) |
|
|
- |
|
|
|
(1,166 |
) |
|
|
- |
|
Cash Net Operating Income |
|
$ |
49,705 |
|
|
$ |
42,730 |
|
|
$ |
145,844 |
|
|
$ |
126,987 |
|
10
EBITDA (Unaudited, in thousands) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
Net income |
|
$ |
749 |
|
|
$ |
9,042 |
|
|
$ |
17,142 |
|
|
$ |
26,176 |
|
Depreciation and amortization |
|
|
25,050 |
|
|
|
22,765 |
|
|
|
73,552 |
|
|
|
67,615 |
|
Interest expense |
|
|
12,408 |
|
|
|
9,353 |
|
|
|
34,729 |
|
|
|
27,739 |
|
Tax expense |
|
|
121 |
|
|
|
86 |
|
|
|
346 |
|
|
|
397 |
|
Gain on the sale of operating property |
|
|
- |
|
|
|
(777 |
) |
|
|
- |
|
|
|
(1,307 |
) |
Impairment loss |
|
|
5,540 |
|
|
|
- |
|
|
|
5,540 |
|
|
|
- |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
1,395 |
|
|
|
- |
|
|
|
3,503 |
|
|
|
- |
|
EBITDA |
|
$ |
45,263 |
|
|
$ |
40,469 |
|
|
$ |
134,812 |
|
|
$ |
120,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pro forma adjustments(1) |
|
|
164 |
|
|
|
|
|
|
|
|
|
|
|||
Pro forma EBITDA |
|
$ |
45,427 |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pro forma adjustments for the Disposition Portfolio Properties(2) |
|
|
(3,745 |
) |
|
|
|
|
|
|
|
|
|
|||
Pro forma EBITDA, as Adjusted |
|
$ |
41,682 |
|
|
|
|
|
|
|
|
|
|
|||
(1) Pro forma assuming a full quarter of operations from the two properties acquired in the third quarter of 2022
(2) Pro forma assuming a full quarter of operations without the nine properties disposed of and one property expected to be disposed of subsequent to the third quarter of 2022 (the "Disposition Portfolio Properties")
11
FFO and CAD (Unaudited, in thousands, except share and per share amounts) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
749 |
|
|
$ |
9,042 |
|
|
$ |
17,142 |
|
|
$ |
26,176 |
|
Depreciation of real estate assets |
|
|
24,802 |
|
|
|
22,741 |
|
|
|
72,810 |
|
|
|
67,561 |
|
Gain on the sale of operating property |
|
|
- |
|
|
|
(777 |
) |
|
|
- |
|
|
|
(1,307 |
) |
Impairment loss |
|
|
5,540 |
|
|
|
- |
|
|
|
5,540 |
|
|
|
- |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
1,347 |
|
|
|
- |
|
|
|
3,352 |
|
|
|
- |
|
FFO |
|
$ |
32,438 |
|
|
$ |
31,006 |
|
|
$ |
98,844 |
|
|
$ |
92,430 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition costs |
|
|
275 |
|
|
|
518 |
|
|
|
939 |
|
|
|
1,488 |
|
Straight-line rent and other non-cash adjustments |
|
|
1,090 |
|
|
|
(1,580 |
) |
|
|
559 |
|
|
|
(4,317 |
) |
Amortization of above-/below-market leases |
|
|
(769 |
) |
|
|
(1,058 |
) |
|
|
(2,373 |
) |
|
|
(3,569 |
) |
Amortization of deferred revenue |
|
|
(1,472 |
) |
|
|
(1,398 |
) |
|
|
(4,313 |
) |
|
|
(4,217 |
) |
Non-cash interest expense |
|
|
235 |
|
|
|
380 |
|
|
|
695 |
|
|
|
1,107 |
|
Non-cash compensation |
|
|
1,625 |
|
|
|
1,333 |
|
|
|
4,891 |
|
|
|
3,700 |
|
Depreciation of non-real estate assets |
|
|
248 |
|
|
|
24 |
|
|
|
742 |
|
|
|
54 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
(374 |
) |
|
|
- |
|
|
|
(1,051 |
) |
|
|
- |
|
FFO, as Adjusted |
|
$ |
33,296 |
|
|
$ |
29,225 |
|
|
$ |
98,933 |
|
|
$ |
86,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO, per share - fully diluted basis |
|
$ |
0.32 |
|
|
$ |
0.33 |
|
|
$ |
0.97 |
|
|
$ |
0.98 |
|
FFO, as Adjusted, per share - fully diluted basis |
|
$ |
0.32 |
|
|
$ |
0.31 |
|
|
$ |
0.97 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO, as Adjusted |
|
$ |
33,296 |
|
|
$ |
29,225 |
|
|
$ |
98,933 |
|
|
$ |
86,676 |
|
Acquisition costs |
|
|
(275 |
) |
|
|
(518 |
) |
|
|
(939 |
) |
|
|
(1,488 |
) |
Principal amortization |
|
|
(1,314 |
) |
|
|
(1,062 |
) |
|
|
(3,942 |
) |
|
|
(2,948 |
) |
Maintenance capital expenditures |
|
|
(2,217 |
) |
|
|
(1,293 |
) |
|
|
(5,123 |
) |
|
|
(6,305 |
) |
Contractual tenant improvements |
|
|
(961 |
) |
|
|
(241 |
) |
|
|
(2,089 |
) |
|
|
(2,168 |
) |
Unconsolidated real estate venture allocated share of above adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Cash Available for Distribution (CAD) |
|
$ |
28,529 |
|
|
$ |
26,111 |
|
|
$ |
86,840 |
|
|
$ |
73,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - fully diluted basis |
|
|
102,848,357 |
|
|
|
95,275,184 |
|
|
|
102,315,465 |
|
|
|
94,205,897 |
|
12
Unconsolidated Real Estate Venture (Unaudited, in thousands) |
|
|
|
Balance Sheet Information |
Balance Sheet |
|
|
Easterly's Share(2) |
|
||
|
September 30, 2022 |
|
|
September 30, 2022 |
|
||
Real estate properties - net |
$ |
313,768 |
|
|
$ |
166,297 |
|
Total assets |
|
384,884 |
|
|
|
203,989 |
|
Total liabilities |
|
9,407 |
|
|
|
4,986 |
|
Total preferred stockholders' equity |
|
75 |
|
|
|
40 |
|
Total common stockholders' equity |
|
375,402 |
|
|
|
198,963 |
|
Basis difference(1) |
|
- |
|
|
|
375 |
|
Total equity |
$ |
375,477 |
|
|
$ |
199,338 |
|
(1) This amount represents the aggregate difference between the Company’s historical cost basis and basis reflected at the joint venture level.
(2) The Company owns 53.0% of the properties through the unconsolidated joint venture.
13
Unconsolidated Real Estate Venture (Cont.) (Unaudited, in thousands) |
|
|
|
Income Statement Information |
Three Months Ended |
|
|
Easterly's Share(1) |
|
|
Nine Months Ended |
|
|
Easterly's Share(1) |
|
||||
|
September 30, 2022 |
|
|
September 30, 2022 |
|
|
September 30, 2022 |
|
|
September 30, 2022 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
$ |
7,136 |
|
|
$ |
3,782 |
|
|
$ |
17,798 |
|
|
$ |
9,432 |
|
Other income |
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
Total Revenues |
|
7,136 |
|
|
|
3,782 |
|
|
|
17,799 |
|
|
|
9,433 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||
Property operating |
|
1,371 |
|
|
|
727 |
|
|
|
3,038 |
|
|
|
1,610 |
|
Real estate taxes |
|
1,181 |
|
|
|
626 |
|
|
|
2,892 |
|
|
|
1,533 |
|
Depreciation and amortization |
|
2,572 |
|
|
|
1,363 |
|
|
|
6,417 |
|
|
|
3,401 |
|
Asset management fees |
|
377 |
|
|
|
200 |
|
|
|
942 |
|
|
|
499 |
|
Corporate general and administrative |
|
27 |
|
|
|
14 |
|
|
|
74 |
|
|
|
39 |
|
Total expenses |
|
5,528 |
|
|
|
2,930 |
|
|
|
13,363 |
|
|
|
7,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other expenses |
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense - net |
|
(41 |
) |
|
|
(22 |
) |
|
|
(123 |
) |
|
|
(65 |
) |
Net income |
$ |
1,567 |
|
|
$ |
830 |
|
|
$ |
4,313 |
|
|
$ |
2,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
2,572 |
|
|
|
1,363 |
|
|
|
6,417 |
|
|
|
3,401 |
|
Interest expense - net |
|
41 |
|
|
|
22 |
|
|
|
123 |
|
|
|
65 |
|
Tax expense |
|
20 |
|
|
|
10 |
|
|
|
70 |
|
|
|
37 |
|
EBITDA |
$ |
4,200 |
|
|
$ |
2,225 |
|
|
$ |
10,923 |
|
|
$ |
5,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pro forma adjustments(2) |
|
70 |
|
|
|
37 |
|
|
|
|
|
|
|
||
Pro forma EBITDA |
$ |
4,270 |
|
|
$ |
2,262 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
$ |
1,567 |
|
|
$ |
830 |
|
|
$ |
4,313 |
|
|
$ |
2,286 |
|
Depreciation of real estate assets |
|
2,541 |
|
|
|
1,347 |
|
|
|
6,324 |
|
|
|
3,352 |
|
FFO |
$ |
4,108 |
|
|
$ |
2,177 |
|
|
$ |
10,637 |
|
|
$ |
5,638 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line rent and other non-cash adjustments |
|
(778 |
) |
|
|
(413 |
) |
|
|
(2,200 |
) |
|
|
(1,166 |
) |
Non-cash interest expense |
|
41 |
|
|
|
22 |
|
|
|
123 |
|
|
|
65 |
|
Depreciation of non-real estate assets |
|
31 |
|
|
|
17 |
|
|
|
93 |
|
|
|
50 |
|
FFO, as Adjusted |
$ |
3,402 |
|
|
$ |
1,803 |
|
|
$ |
8,653 |
|
|
$ |
4,587 |
|
Cash Available for Distribution (CAD) |
$ |
3,402 |
|
|
$ |
1,803 |
|
|
$ |
8,653 |
|
|
$ |
4,587 |
|
(1) The Company owns 53.0% of the properties through the unconsolidated joint venture.
(2) Pro forma assuming a full quarter of operations from the one unconsolidated joint venture property acquired in the third quarter of 2022.
14
Debt Schedules (Unaudited, in thousands) |
|
|
|
Debt Instrument |
Maturity Date |
|
September 30, 2022 |
September 30, 2022 |
|
September 30, 2022 |
|
Unsecured debt |
|
|
|
|
|
|
|
Revolving Credit facility |
23-Jul-25(2) |
|
LIBOR + 135bps |
$ |
177,750 |
|
12.9% |
2016 Term Loan facility |
29-Mar-24 |
|
2.77%(3) |
|
100,000 |
|
7.3% |
2018 Term Loan facility |
23-Jul-26 |
|
4.01%(4) |
|
150,000 |
|
10.9% |
2017 Series A Senior Notes |
25-May-27 |
|
4.05% |
|
95,000 |
|
6.9% |
2017 Series B Senior Notes |
25-May-29 |
|
4.15% |
|
50,000 |
|
3.6% |
2017 Series C Senior Notes |
25-May-32 |
|
4.30% |
|
30,000 |
|
2.2% |
2019 Series A Senior Notes |
12-Sep-29 |
|
3.73% |
|
85,000 |
|
6.2% |
2019 Series B Senior Notes |
12-Sep-31 |
|
3.83% |
|
100,000 |
|
7.3% |
2019 Series C Senior Notes |
12-Sep-34 |
|
3.98% |
|
90,000 |
|
6.5% |
2021 Series A Senior Notes |
14-Oct-28 |
|
2.62% |
|
50,000 |
|
3.6% |
2021 Series B Senior Notes |
14-Oct-30 |
|
2.89% |
|
200,000 |
|
14.5% |
Total unsecured debt |
6 years |
|
3.65% |
$ |
1,127,750 |
|
81.9% |
|
(wtd-avg maturity) |
|
(wtd-avg rate) |
|
|
|
|
Secured mortgage debt |
|
|
|
|
|
|
|
DEA - Pleasanton |
18-Oct-23 |
|
LIBOR + 150bps |
$ |
15,700 |
|
1.1% |
VA - Golden |
1-Apr-24 |
|
5.00% |
|
8,692 |
|
0.6% |
MEPCOM - Jacksonville |
14-Oct-25 |
|
4.41% |
|
5,858 |
|
0.4% |
USFS II - Albuquerque |
14-Jul-26 |
|
4.46% |
|
13,879 |
|
1.0% |
ICE - Charleston |
15-Jan-27 |
|
4.21% |
|
13,792 |
|
1.0% |
VA - Loma Linda |
6-Jul-27 |
|
3.59% |
|
127,500 |
|
9.3% |
CBP - Savannah |
10-Jul-33 |
|
3.40% |
|
10,595 |
|
0.9% |
USCIS - Kansas City |
6-Aug-24 |
|
3.68% |
|
51,500 |
|
3.8% |
Total secured mortgage debt |
3.9 years |
|
3.78% |
$ |
247,516 |
|
18.1% |
|
(wtd-avg maturity) |
|
(wtd-avg rate) |
|
|
|
|
(1) Excludes unamortized premiums / discounts and deferred financing fees.
(2) Revolving credit facility has two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.
(3) Calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 2.77% annually based on the Company’s current consolidated leverage ratio.
(4) Calculated based on four interest rate swaps with an aggregate notional value of $150.0 million, which effectively fix the interest rate at 4.01% annually based on the Company’s current consolidated leverage ratio. The four interest rate swaps mature on June 19, 2023, which is not coterminous with the maturity date of 2018 term loan facility.
15
Debt Schedules (Cont.) (Unaudited, in thousands) |
|
|
|
Debt Statistics |
September 30, 2022 |
|
|
|
|
September 30, 2022 |
|
||
Variable rate debt - unhedged |
$ |
193,450 |
|
|
% Variable rate debt - unhedged |
|
14.1 |
% |
|
Fixed rate debt |
|
1,181,816 |
|
|
% Fixed rate debt |
|
85.9 |
% |
|
Total Debt(1) |
$ |
1,375,266 |
|
|
|
|
|
|
|
Less: Cash and cash equivalents |
|
(11,226 |
) |
|
Weighted average maturity |
5.6 years |
|
||
Net Debt |
$ |
1,364,040 |
|
|
Weighted average interest rate |
|
3.7 |
% |
|
Less: Adjustment for development(2) |
|
(12,648 |
) |
|
|
|
|
|
|
Adjusted Net Debt |
$ |
1,351,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Disposition Pro Forma Debt Statistics(3) |
September 30, 2022 |
|
|
|
|
|
|
||
Total Debt(1) |
$ |
1,375,266 |
|
|
|
|
|
|
|
Less: Cash and cash equivalents |
|
(11,226 |
) |
|
|
|
|
|
|
Net Debt |
$ |
1,364,040 |
|
|
|
|
|
|
|
Less: Gross proceeds from the Disposition Portfolio Properties(3) |
|
(205,320 |
) |
|
|
|
|
|
|
Pro Forma Net Debt |
$ |
1,158,720 |
|
|
|
|
|
|
|
Less: Adjustment for development(2) |
|
(12,648 |
) |
|
|
|
|
|
|
Pro Forma Adjusted Net Debt |
$ |
1,146,072 |
|
|
|
|
|
|
|
(1) Excludes unamortized premiums / discounts and deferred financing fees.
(2) See definition of Adjusted Net Debt on Page 4.
(3) The Company intends to use the gross proceeds from the sale of the ten Disposition Portfolio Properties to extinguish the secured mortgage debt at MEPCOM - Jacksonville and pay off outstanding debt on the Company's revolving credit facility.
16
Debt Maturities (Unaudited, in thousands) |
|
|
|
|
|
Secured Debt |
|
|
Unsecured Debt |
|
|
|
|
|
|
|
|
|
|
|||||||||
Year |
|
Scheduled |
|
|
Scheduled |
|
|
Scheduled |
|
|
Total |
|
|
Percentage of |
|
|
Weighted Average |
|
||||||
2022 |
|
$ |
1,355 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
1,355 |
|
|
|
0.1 |
% |
|
|
|
|
2023 |
|
|
5,585 |
|
|
|
15,700 |
|
|
|
- |
|
|
|
21,285 |
|
|
|
1.5 |
% |
|
|
4.06 |
% |
2024 |
|
|
5,731 |
|
|
|
59,895 |
|
|
|
100,000 |
|
|
|
165,626 |
|
|
|
12.1 |
% |
|
|
3.18 |
% |
2025 |
|
|
5,633 |
|
|
|
1,917 |
|
|
|
177,750 |
|
|
|
185,300 |
|
|
|
13.5 |
% |
|
|
4.23 |
% |
2026 |
|
|
3,686 |
|
|
|
6,368 |
|
|
|
150,000 |
|
|
|
160,054 |
|
|
|
11.6 |
% |
|
|
4.05 |
% |
2027 |
|
|
1,093 |
|
|
|
134,640 |
|
|
|
95,000 |
|
|
|
230,733 |
|
|
|
16.8 |
% |
|
|
3.81 |
% |
2028 |
|
|
983 |
|
|
|
- |
|
|
|
50,000 |
|
|
|
50,983 |
|
|
|
3.7 |
% |
|
|
2.62 |
% |
2029 |
|
|
1,016 |
|
|
|
- |
|
|
|
135,000 |
|
|
|
136,016 |
|
|
|
9.9 |
% |
|
|
3.89 |
% |
2030 |
|
|
1,049 |
|
|
|
- |
|
|
|
200,000 |
|
|
|
201,049 |
|
|
|
14.6 |
% |
|
|
2.89 |
% |
2031 |
|
|
1,081 |
|
|
|
- |
|
|
|
100,000 |
|
|
|
101,081 |
|
|
|
7.3 |
% |
|
|
3.83 |
% |
2032 |
|
|
1,116 |
|
|
|
- |
|
|
|
30,000 |
|
|
|
31,116 |
|
|
|
2.3 |
% |
|
|
4.30 |
% |
2033 |
|
|
668 |
|
|
|
- |
|
|
|
- |
|
|
|
668 |
|
|
|
0.1 |
% |
|
|
- |
|
2034 |
|
|
- |
|
|
|
- |
|
|
|
90,000 |
|
|
|
90,000 |
|
|
|
6.5 |
% |
|
|
3.98 |
% |
Total |
|
$ |
28,996 |
|
|
$ |
218,520 |
|
|
$ |
1,127,750 |
|
|
$ |
1,375,266 |
|
|
|
100.0 |
% |
|
|
|
|
17
Leased Operating Property Overview (As of September 30, 2022, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
|
Annualized |
|
|
Percentage |
|
|
Annualized |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Wholly Owned U.S. Government Leased Properties |
|
|||||||||||||||||||||||
VA - Loma Linda |
|
Loma Linda, CA |
|
Outpatient Clinic |
|
2036 |
|
2016 |
|
|
327,614 |
|
|
$ |
16,444,222 |
|
|
|
5.2 |
% |
|
$ |
50.19 |
|
USCIS - Kansas City |
|
Lee's Summit, MO |
|
Office/Warehouse |
|
2023 - 2042(1) |
|
1969 / 1999 |
|
|
491,226 |
|
|
|
12,026,995 |
|
|
|
3.8 |
% |
|
|
24.48 |
|
JSC - Suffolk |
|
Suffolk, VA |
|
Office |
|
2028(2) |
|
1993 / 2004 |
|
|
403,737 |
|
|
|
8,381,901 |
|
|
|
2.7 |
% |
|
|
20.76 |
|
IRS - Fresno |
|
Fresno, CA |
|
Office |
|
2033 |
|
2003 |
|
|
180,481 |
|
|
|
6,972,995 |
|
|
|
2.2 |
% |
|
|
38.64 |
|
Various GSA - Portland |
|
Portland, OR |
|
Office |
|
2022 - 2039(3) |
|
2002 |
|
|
218,798 |
|
|
|
6,953,863 |
|
|
|
2.2 |
% |
|
|
31.78 |
|
Various GSA - Chicago |
|
Des Plaines, IL |
|
Office |
|
2023 |
|
1971 / 1999 |
|
|
202,185 |
|
|
|
6,812,395 |
|
|
|
2.2 |
% |
|
|
33.69 |
|
FBI - Salt Lake |
|
Salt Lake City, UT |
|
Office |
|
2032 |
|
2012 |
|
|
169,542 |
|
|
|
6,802,806 |
|
|
|
2.2 |
% |
|
|
40.12 |
|
Various GSA - Buffalo |
|
Buffalo, NY |
|
Office |
|
2025 - 2039 |
|
2004 |
|
|
273,678 |
|
|
|
6,691,883 |
|
|
|
2.1 |
% |
|
|
24.45 |
|
VA - San Jose |
|
San Jose, CA |
|
Outpatient Clinic |
|
2038 |
|
2018 |
|
|
90,085 |
|
|
|
5,725,957 |
|
|
|
1.8 |
% |
|
|
63.56 |
|
EPA - Lenexa |
|
Lenexa, KS |
|
Office |
|
2027(2) |
|
2007 / 2012 |
|
|
169,585 |
|
|
|
5,603,247 |
|
|
|
1.8 |
% |
|
|
33.04 |
|
FBI - San Antonio |
|
San Antonio, TX |
|
Office |
|
2025 |
|
2007 |
|
|
148,584 |
|
|
|
5,241,403 |
|
|
|
1.7 |
% |
|
|
35.28 |
|
PTO - Arlington |
|
Arlington, VA |
|
Office |
|
2035 |
|
2009 |
|
|
190,546 |
|
|
|
5,154,770 |
|
|
|
1.6 |
% |
|
|
27.05 |
|
FBI - Tampa |
|
Tampa, FL |
|
Office |
|
2040 |
|
2005 |
|
|
138,000 |
|
|
|
5,057,412 |
|
|
|
1.6 |
% |
|
|
36.65 |
|
FDA - Alameda |
|
Alameda, CA |
|
Laboratory |
|
2039 |
|
2019 |
|
|
69,624 |
|
|
|
4,834,488 |
|
|
|
1.5 |
% |
|
|
69.44 |
|
FBI / DEA - El Paso |
|
El Paso, TX |
|
Office/Warehouse |
|
2028 |
|
1998 - 2005 |
|
|
203,683 |
|
|
|
4,682,935 |
|
|
|
1.5 |
% |
|
|
22.99 |
|
FEMA - Tracy |
|
Tracy, CA |
|
Warehouse |
|
2038 |
|
2018 |
|
|
210,373 |
|
|
|
4,646,467 |
|
|
|
1.5 |
% |
|
|
22.09 |
|
FBI - Omaha |
|
Omaha, NE |
|
Office |
|
2024 |
|
2009 |
|
|
112,196 |
|
|
|
4,548,028 |
|
|
|
1.4 |
% |
|
|
40.54 |
|
TREAS - Parkersburg |
|
Parkersburg, WV |
|
Office |
|
2041 |
|
2004 / 2006 |
|
|
182,500 |
|
|
|
4,302,091 |
|
|
|
1.4 |
% |
|
|
23.57 |
|
EPA - Kansas City |
|
Kansas City, KS |
|
Laboratory |
|
2042 |
|
2003 |
|
|
71,979 |
|
|
|
4,291,659 |
|
|
|
1.4 |
% |
|
|
59.62 |
|
VA - South Bend |
|
Mishakawa, IN |
|
Outpatient Clinic |
|
2032 |
|
2017 |
|
|
86,363 |
|
|
|
4,155,805 |
|
|
|
1.3 |
% |
|
|
48.12 |
|
FDA - Lenexa |
|
Lenexa, KS |
|
Laboratory |
|
2040 |
|
2020 |
|
|
59,690 |
|
|
|
3,990,453 |
|
|
|
1.3 |
% |
|
|
66.85 |
|
FBI - Pittsburgh |
|
Pittsburgh, PA |
|
Office |
|
2027 |
|
2001 |
|
|
100,054 |
|
|
|
3,981,726 |
|
|
|
1.3 |
% |
|
|
39.80 |
|
VA - Mobile |
|
Mobile, AL |
|
Outpatient Clinic |
|
2033 |
|
2018 |
|
|
79,212 |
|
|
|
3,908,885 |
|
|
|
1.2 |
% |
|
|
49.35 |
|
USCIS - Lincoln |
|
Lincoln, NE |
|
Office |
|
2025 |
|
2005 |
|
|
137,671 |
|
|
|
3,887,343 |
|
|
|
1.2 |
% |
|
|
28.24 |
|
DOI - Billings(8) |
|
Billings, MT |
|
Office/Warehouse |
|
2033 |
|
2013 |
|
|
149,110 |
|
|
|
3,871,654 |
|
|
|
1.2 |
% |
|
|
25.97 |
|
FBI - New Orleans |
|
New Orleans, LA |
|
Office |
|
2029(4) |
|
1999 / 2006 |
|
|
137,679 |
|
|
|
3,802,565 |
|
|
|
1.2 |
% |
|
|
27.62 |
|
DOT - Lakewood(8) |
|
Lakewood, CO |
|
Office |
|
2024 |
|
2004 |
|
|
122,225 |
|
|
|
3,668,047 |
|
|
|
1.2 |
% |
|
|
30.01 |
|
FBI - Knoxville |
|
Knoxville, TN |
|
Office |
|
2025 |
|
2010 |
|
|
99,130 |
|
|
|
3,579,291 |
|
|
|
1.1 |
% |
|
|
36.11 |
|
FBI - Birmingham |
|
Birmingham, AL |
|
Office |
|
2042 |
|
2005 |
|
|
96,278 |
|
|
|
3,433,823 |
|
|
|
1.1 |
% |
|
|
35.67 |
|
ICE - Charleston |
|
North Charleston, SC |
|
Office |
|
2027 |
|
1994 / 2012 |
|
|
65,124 |
|
|
|
3,301,629 |
|
|
|
1.0 |
% |
|
|
50.70 |
|
VA - Chico |
|
Chico, CA |
|
Outpatient Clinic |
|
2034 |
|
2019 |
|
|
51,647 |
|
|
|
3,282,987 |
|
|
|
1.0 |
% |
|
|
63.57 |
|
FBI - Richmond |
|
Richmond, VA |
|
Office |
|
2041 |
|
2001 |
|
|
96,607 |
|
|
|
3,252,338 |
|
|
|
1.0 |
% |
|
|
33.67 |
|
USFS II - Albuquerque |
|
Albuquerque, NM |
|
Office |
|
2026(2) |
|
2011 |
|
|
98,720 |
|
|
|
3,249,952 |
|
|
|
1.0 |
% |
|
|
32.92 |
|
FBI - Little Rock |
|
Little Rock, AR |
|
Office |
|
2041 |
|
2001 |
|
|
102,377 |
|
|
|
3,189,062 |
|
|
|
1.0 |
% |
|
|
31.15 |
|
FDA - College Park(8) |
|
College Park, MD |
|
Laboratory |
|
2029 |
|
2004 |
|
|
80,677 |
|
|
|
3,107,988 |
|
|
|
1.0 |
% |
|
|
38.52 |
|
USCIS - Tustin |
|
Tustin, CA |
|
Office |
|
2034 |
|
1979 / 2019 |
|
|
66,818 |
|
|
|
3,102,375 |
|
|
|
1.0 |
% |
|
|
46.43 |
|
USFS I - Albuquerque |
|
Albuquerque, NM |
|
Office |
|
2026 |
|
2006 |
|
|
92,455 |
|
|
|
3,100,080 |
|
|
|
1.0 |
% |
|
|
33.53 |
|
18
Leased Operating Property Overview (Cont.) (As of September 30, 2022, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
|
Annualized |
|
|
Percentage |
|
|
Annualized |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Wholly Owned U.S. Government Leased Properties (Cont.) |
|
|||||||||||||||||||||||
OSHA - Sandy(8) |
|
Sandy, UT |
|
Laboratory |
|
2024(5) |
|
2003 |
|
|
75,000 |
|
|
|
3,077,661 |
|
|
|
1.0 |
% |
|
|
41.04 |
|
DEA - Vista |
|
Vista, CA |
|
Laboratory |
|
2035 |
|
2002 |
|
|
52,293 |
|
|
|
3,067,840 |
|
|
|
1.0 |
% |
|
|
58.67 |
|
VA - Indianapolis |
|
Brownsburg, IN |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
|
80,000 |
|
|
|
2,958,386 |
|
|
|
0.9 |
% |
|
|
36.98 |
|
VA - Orange |
|
Orange, CT |
|
Outpatient Clinic |
|
2034 |
|
2019 |
|
|
56,330 |
|
|
|
2,937,172 |
|
|
|
0.9 |
% |
|
|
52.14 |
|
JUD - Del Rio |
|
Del Rio, TX |
|
Courthouse/Office |
|
2024 |
|
1992 / 2004 |
|
|
89,880 |
|
|
|
2,792,219 |
|
|
|
0.9 |
% |
|
|
31.07 |
|
ICE - Albuquerque |
|
Albuquerque, NM |
|
Office |
|
2027 |
|
2011 |
|
|
71,100 |
|
|
|
2,789,429 |
|
|
|
0.9 |
% |
|
|
39.23 |
|
DEA - Dallas Lab |
|
Dallas, TX |
|
Laboratory |
|
2038 |
|
2001 |
|
|
49,723 |
|
|
|
2,716,354 |
|
|
|
0.9 |
% |
|
|
54.63 |
|
DEA - Pleasanton |
|
Pleasanton, CA |
|
Laboratory |
|
2035 |
|
2015 |
|
|
42,480 |
|
|
|
2,716,215 |
|
|
|
0.9 |
% |
|
|
63.94 |
|
JUD - El Centro |
|
El Centro, CA |
|
Courthouse/Office |
|
2034 |
|
2004 |
|
|
43,345 |
|
|
|
2,702,496 |
|
|
|
0.9 |
% |
|
|
62.35 |
|
FBI - Mobile |
|
Mobile, AL |
|
Office |
|
2029(2) |
|
2001 |
|
|
76,112 |
|
|
|
2,682,150 |
|
|
|
0.9 |
% |
|
|
35.24 |
|
FBI - Albany |
|
Albany, NY |
|
Office |
|
2036 |
|
1998 |
|
|
69,476 |
|
|
|
2,677,247 |
|
|
|
0.9 |
% |
|
|
38.53 |
|
SSA - Charleston |
|
Charleston, WV |
|
Office |
|
2024(2) |
|
1959 / 2000 |
|
|
110,000 |
|
|
|
2,660,225 |
|
|
|
0.8 |
% |
|
|
24.18 |
|
DEA - Sterling |
|
Sterling, VA |
|
Laboratory |
|
2037 |
|
2001 |
|
|
49,692 |
|
|
|
2,607,909 |
|
|
|
0.8 |
% |
|
|
52.48 |
|
DEA - Upper Marlboro |
|
Upper Marlboro, MD |
|
Laboratory |
|
2037 |
|
2002 |
|
|
50,978 |
|
|
|
2,522,977 |
|
|
|
0.8 |
% |
|
|
49.49 |
|
USAO - Louisville |
|
Louisville, KY |
|
Office |
|
2031 |
|
2011 |
|
|
60,000 |
|
|
|
2,506,169 |
|
|
|
0.8 |
% |
|
|
41.77 |
|
TREAS - Birmingham |
|
Birmingham, AL |
|
Office |
|
2029 |
|
2014 |
|
|
83,676 |
|
|
|
2,487,887 |
|
|
|
0.8 |
% |
|
|
29.73 |
|
DHA - Aurora(8) |
|
Aurora, CO |
|
Office |
|
2034 |
|
1998 / 2018 |
|
|
101,285 |
|
|
|
2,392,674 |
|
|
|
0.8 |
% |
|
|
23.62 |
|
NARA - Broomfield |
|
Broomfield, CO |
|
Office/Warehouse |
|
2032 |
|
2012 |
|
|
161,730 |
|
|
|
2,346,885 |
|
|
|
0.7 |
% |
|
|
14.51 |
|
JUD - Charleston |
|
Charleston, SC |
|
Courthouse/Office |
|
2040 |
|
1999 |
|
|
52,339 |
|
|
|
2,333,282 |
|
|
|
0.7 |
% |
|
|
44.58 |
|
Various GSA - Cleveland |
|
Brooklyn Heights, OH |
|
Office |
|
2028 - 2040(5) |
|
1981 / 2021 |
|
|
61,384 |
|
|
|
2,253,745 |
|
|
|
0.7 |
% |
|
|
36.72 |
|
CBP - Savannah |
|
Savannah, GA |
|
Laboratory |
|
2033 |
|
2013 |
|
|
35,000 |
|
|
|
2,234,261 |
|
|
|
0.7 |
% |
|
|
63.84 |
|
DEA - Dallas |
|
Dallas, TX |
|
Office |
|
2041 |
|
2001 |
|
|
71,827 |
|
|
|
2,215,883 |
|
|
|
0.7 |
% |
|
|
30.85 |
|
MEPCOM - Jacksonville(8) |
|
Jacksonville, FL |
|
Office |
|
2025 |
|
2010 |
|
|
30,000 |
|
|
|
2,215,374 |
|
|
|
0.7 |
% |
|
|
73.85 |
|
DOE - Lakewood |
|
Lakewood, CO |
|
Office |
|
2029 |
|
1999 |
|
|
115,650 |
|
|
|
2,126,332 |
|
|
|
0.7 |
% |
|
|
18.39 |
|
NWS - Kansas City |
|
Kansas City, MO |
|
Office |
|
2033(2) |
|
1998 / 2020 |
|
|
94,378 |
|
|
|
2,114,807 |
|
|
|
0.7 |
% |
|
|
22.41 |
|
JUD - Jackson |
|
Jackson, TN |
|
Courthouse/Office |
|
2023(2) |
|
1998 |
|
|
73,397 |
|
|
|
2,105,260 |
|
|
|
0.7 |
% |
|
|
28.68 |
|
DEA - Santa Ana |
|
Santa Ana, CA |
|
Office |
|
2024 |
|
2004 |
|
|
39,905 |
|
|
|
1,943,792 |
|
|
|
0.6 |
% |
|
|
48.71 |
|
DEA - North Highlands |
|
Sacramento, CA |
|
Office |
|
2033 |
|
2002 |
|
|
37,975 |
|
|
|
1,896,685 |
|
|
|
0.6 |
% |
|
|
49.95 |
|
NPS - Omaha |
|
Omaha, NE |
|
Office |
|
2024 |
|
2004 |
|
|
62,772 |
|
|
|
1,829,413 |
|
|
|
0.6 |
% |
|
|
29.14 |
|
ICE - Otay |
|
San Diego, CA |
|
Office |
|
2022 / 2027 |
|
2001 |
|
|
47,919 |
|
|
|
1,761,413 |
|
|
|
0.6 |
% |
|
|
36.76 |
|
VA - Golden |
|
Golden, CO |
|
Office/Warehouse |
|
2026 |
|
1996 / 2011 |
|
|
56,753 |
|
|
|
1,741,257 |
|
|
|
0.6 |
% |
|
|
30.68 |
|
USCG - Martinsburg |
|
Martinsburg, WV |
|
Office |
|
2027 |
|
2007 |
|
|
59,547 |
|
|
|
1,651,037 |
|
|
|
0.5 |
% |
|
|
27.73 |
|
CBP - Sunburst(8) |
|
Sunburst, MT |
|
Office |
|
2028 |
|
2008 |
|
|
33,000 |
|
|
|
1,646,988 |
|
|
|
0.5 |
% |
|
|
49.91 |
|
JUD - Aberdeen |
|
Aberdeen, MS |
|
Courthouse/Office |
|
2025 |
|
2005 |
|
|
46,979 |
|
|
|
1,552,938 |
|
|
|
0.5 |
% |
|
|
33.06 |
|
VA - Charleston |
|
North Charleston, SC |
|
Warehouse |
|
2040 |
|
2020 |
|
|
97,718 |
|
|
|
1,539,323 |
|
|
|
0.5 |
% |
|
|
15.75 |
|
GSA - Clarksburg |
|
Clarksburg, WV |
|
Office |
|
2024(2) |
|
1999 |
|
|
63,750 |
|
|
|
1,499,446 |
|
|
|
0.5 |
% |
|
|
23.52 |
|
DEA - Birmingham |
|
Birmingham, AL |
|
Office |
|
2023 |
|
2005 |
|
|
35,616 |
|
|
|
1,423,869 |
|
|
|
0.5 |
% |
|
|
39.98 |
|
19
Leased Operating Property Overview (Cont.) (As of September 30, 2022, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
|
Annualized |
|
|
Percentage |
|
|
Annualized |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Wholly Owned U.S. Government Leased Properties (Cont.) |
|
|||||||||||||||||||||||
DEA - Albany |
|
Albany, NY |
|
Office |
|
2025 |
|
2004 |
|
|
31,976 |
|
|
|
1,380,195 |
|
|
|
0.4 |
% |
|
|
43.16 |
|
USAO - Springfield |
|
Springfield, IL |
|
Office |
|
2038 |
|
2002 |
|
|
43,600 |
|
|
|
1,372,735 |
|
|
|
0.4 |
% |
|
|
31.48 |
|
DEA - Riverside |
|
Riverside, CA |
|
Office |
|
2032 |
|
1997 |
|
|
34,354 |
|
|
|
1,280,417 |
|
|
|
0.4 |
% |
|
|
37.27 |
|
JUD - Council Bluffs |
|
Council Bluffs, IA |
|
Courthouse/Office |
|
2041(5) |
|
2021 |
|
|
28,900 |
|
|
|
1,272,798 |
|
|
|
0.4 |
% |
|
|
44.04 |
|
SSA - Dallas |
|
Dallas, TX |
|
Office |
|
2035 |
|
2005 |
|
|
27,200 |
|
|
|
1,058,859 |
|
|
|
0.3 |
% |
|
|
38.93 |
|
HRSA - Baton Rouge(8) |
|
Baton Rouge, LA |
|
Office |
|
2040 |
|
1981 / 2020 |
|
|
27,569 |
|
|
|
965,676 |
|
|
|
0.3 |
% |
|
|
35.03 |
|
VA - Baton Rouge(8) |
|
Baton Rouge, LA |
|
Outpatient Clinic |
|
2024 |
|
2004 |
|
|
30,000 |
|
|
|
823,488 |
|
|
|
0.3 |
% |
|
|
27.45 |
|
ICE - Pittsburgh(8) |
|
Pittsburgh, PA |
|
Office |
|
2028 / 2032 |
|
2004 |
|
|
25,369 |
|
|
|
803,239 |
|
|
|
0.3 |
% |
|
|
31.66 |
|
JUD - South Bend |
|
South Bend, IN |
|
Courthouse/Office |
|
2027 |
|
1996 / 2011 |
|
|
30,119 |
|
|
|
782,994 |
|
|
|
0.2 |
% |
|
|
26.00 |
|
ICE - Louisville |
|
Louisville, KY |
|
Office |
|
2036 |
|
2011 |
|
|
17,420 |
|
|
|
647,615 |
|
|
|
0.2 |
% |
|
|
37.18 |
|
DEA - San Diego |
|
San Diego, CA |
|
Warehouse |
|
2032 |
|
1999 |
|
|
16,100 |
|
|
|
552,336 |
|
|
|
0.2 |
% |
|
|
34.31 |
|
SSA - San Diego |
|
San Diego, CA |
|
Office |
|
2032 |
|
2003 |
|
|
10,059 |
|
|
|
433,434 |
|
|
|
0.1 |
% |
|
|
43.09 |
|
DEA - Bakersfield |
|
Bakersfield, CA |
|
Office |
|
2038 |
|
2000 |
|
|
9,800 |
|
|
|
402,401 |
|
|
|
0.1 |
% |
|
|
41.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Subtotal |
|
|
|
|
|
|
|
|
|
|
8,347,728 |
|
|
$ |
285,544,707 |
|
|
|
90.7 |
% |
|
$ |
34.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Wholly Owned Privately Leased Property |
|
|||||||||||||||||||||||
501 East Hunter Street - Lummus Corporation |
|
Lubbock, TX |
|
Warehouse/Distribution |
|
2028(5) |
|
2013 |
|
|
70,078 |
|
|
|
410,344 |
|
|
|
0.1 |
% |
|
|
5.86 |
|
Subtotal |
|
|
|
|
|
|
|
|
|
|
70,078 |
|
|
$ |
410,344 |
|
|
|
0.1 |
% |
|
$ |
5.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Wholly Owned Properties Total / Weighted Average |
|
|
|
|
8,417,806 |
|
|
$ |
285,955,051 |
|
|
|
90.8 |
% |
|
$ |
33.97 |
|
||||||
20
Leased Operating Property Overview (Cont.) (As of September 30, 2022, unaudited) |
|
|
|
Property Name |
|
Location |
|
Property Type |
|
Tenant |
|
Year Built / |
|
Leased |
|
|
Annualized |
|
|
Percentage |
|
|
Annualized |
|
||||
U.S Government Leased to Unconsolidated Real Estate Venture |
|
|||||||||||||||||||||||
VA - San Antonio(6) |
|
San Antonio, TX |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
|
226,148 |
|
|
|
9,802,802 |
|
|
|
3.1 |
% |
|
|
43.35 |
|
VA - Chattanooga(6) |
|
Chattanooga, TN |
|
Outpatient Clinic |
|
2035 |
|
2020 |
|
|
94,566 |
|
|
|
4,154,710 |
|
|
|
1.3 |
% |
|
|
43.93 |
|
VA - Lubbock(6)(7) |
|
Lubbock, TX |
|
Outpatient Clinic |
|
2040 |
|
2020 |
|
|
120,916 |
|
|
|
3,961,655 |
|
|
|
1.3 |
% |
|
|
32.76 |
|
VA - Marietta(6) |
|
Marietta, GA |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
|
76,882 |
|
|
|
3,795,065 |
|
|
|
1.2 |
% |
|
|
49.36 |
|
VA - Birmingham(6) |
|
Irondale, AL |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
|
77,128 |
|
|
|
3,105,255 |
|
|
|
1.0 |
% |
|
|
40.26 |
|
VA - Columbus(6) |
|
Columbus, GA |
|
Outpatient Clinic |
|
2042 |
|
2022 |
|
|
67,793 |
|
|
|
2,863,407 |
|
|
|
0.9 |
% |
|
|
42.24 |
|
VA - Lenexa(6) |
|
Lenexa, KS |
|
Outpatient Clinic |
|
2041 |
|
2021 |
|
|
31,062 |
|
|
|
1,298,203 |
|
|
|
0.4 |
% |
|
|
41.79 |
|
Subtotal |
|
|
|
|
|
|
|
|
|
|
694,495 |
|
|
$ |
28,981,097 |
|
|
|
9.2 |
% |
|
$ |
41.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total / Weighted Average |
|
|
9,112,301 |
|
|
$ |
314,936,148 |
|
|
|
100.0 |
% |
|
$ |
34.56 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total / Weighted Average at Easterly's Share |
|
|
|
|
|
|
8,785,887 |
|
|
$ |
301,315,032 |
|
|
|
|
|
$ |
34.30 |
|
|||||
(1) 316,318 square feet leased to U.S. Citizenship and Immigration Services ("USCIS") will expire on February 19, 2042 and contains two five-year renewal options. 123,826 square feet leased to four private tenants will expire between 2024-2025.
(2) Lease contains one five-year renewal option.
(3) 37,811 square feet leased to the U.S. Army Corps of Engineers ("ACOE") will expire on February 19, 2025 and contains two five-year renewal options. 21,646 square feet leased to the Federal Bureau of Investigation ("FBI") will expire on December 31, 2024 and contains two five-year renewal options. 13,846 square feet leased to five private tenants will expire between 2022-2027. 4,846 square feet leased to the Department of Energy ("DOE") will expire on April 14, 2023 and contains two five-year renewal options.
(4) Lease contains one ten-year renewal option.
(5) Lease contains two five-year renewal options.
(6) The Company owns 53.0% of the property through an unconsolidated joint venture.
(7) Asset is subject to a ground lease where the Company is the lessee.
(8) Disposition Portfolio Property
21
Tenants (As of September 30, 2022, unaudited) |
|
|
|
Tenant |
|
Weighted |
|
|
Leased |
|
|
Percentage |
|
|
Annualized |
|
|
Percentage |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Government |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Department of Veteran Affairs ("VA") |
|
|
15.1 |
|
|
|
1,761,461 |
|
|
|
19.4 |
% |
|
$ |
75,118,998 |
|
|
|
23.8 |
% |
Federal Bureau of Investigation ("FBI") |
|
|
9.6 |
|
|
|
1,501,720 |
|
|
|
16.5 |
% |
|
|
51,950,980 |
|
|
|
16.5 |
% |
Drug Enforcement Administration ("DEA") |
|
|
10.9 |
|
|
|
601,497 |
|
|
|
6.6 |
% |
|
|
26,647,877 |
|
|
|
8.5 |
% |
U.S. Citizenship and Immigration Services ("USCIS") |
|
|
14.1 |
|
|
|
520,807 |
|
|
|
5.7 |
% |
|
|
14,744,671 |
|
|
|
4.7 |
% |
Judiciary of the U.S. ("JUD") |
|
|
6.7 |
|
|
|
364,959 |
|
|
|
4.0 |
% |
|
|
13,541,987 |
|
|
|
4.3 |
% |
Food and Drug Administration ("FDA") |
|
|
13.4 |
|
|
|
209,991 |
|
|
|
2.3 |
% |
|
|
11,932,929 |
|
|
|
3.8 |
% |
Immigration and Customs Enforcement ("ICE") |
|
|
5.5 |
|
|
|
245,894 |
|
|
|
2.7 |
% |
|
|
10,018,245 |
|
|
|
3.2 |
% |
Environmental Protection Agency ("EPA") |
|
|
9.5 |
|
|
|
241,564 |
|
|
|
2.7 |
% |
|
|
9,894,906 |
|
|
|
3.1 |
% |
U.S. Joint Staff Command ("JSC") |
|
|
5.7 |
|
|
|
403,737 |
|
|
|
4.4 |
% |
|
|
8,381,901 |
|
|
|
2.7 |
% |
Internal Revenue Service ("IRS") |
|
|
10.9 |
|
|
|
233,334 |
|
|
|
2.6 |
% |
|
|
8,053,414 |
|
|
|
2.6 |
% |
Bureau of the Fiscal Service ("BFS") |
|
|
14.9 |
|
|
|
266,176 |
|
|
|
2.9 |
% |
|
|
6,789,978 |
|
|
|
2.2 |
% |
Federal Aviation Administration ("FAA") |
|
|
1.1 |
|
|
|
194,540 |
|
|
|
2.1 |
% |
|
|
6,547,118 |
|
|
|
2.1 |
% |
U.S. Forest Service ("USFS") |
|
|
3.7 |
|
|
|
191,175 |
|
|
|
2.1 |
% |
|
|
6,350,032 |
|
|
|
2.0 |
% |
Patent and Trademark Office ("PTO") |
|
|
12.3 |
|
|
|
190,546 |
|
|
|
2.1 |
% |
|
|
5,154,770 |
|
|
|
1.6 |
% |
Social Security Administration ("SSA") |
|
|
4.0 |
|
|
|
189,276 |
|
|
|
2.1 |
% |
|
|
5,140,792 |
|
|
|
1.6 |
% |
Federal Emergency Management Agency ("FEMA") |
|
|
16.0 |
|
|
|
210,373 |
|
|
|
2.3 |
% |
|
|
4,646,467 |
|
|
|
1.5 |
% |
U.S. Attorney Office ("USAO") |
|
|
11.3 |
|
|
|
110,008 |
|
|
|
1.2 |
% |
|
|
4,029,614 |
|
|
|
1.3 |
% |
Department of Transportation ("DOT") |
|
|
1.9 |
|
|
|
129,659 |
|
|
|
1.4 |
% |
|
|
3,924,829 |
|
|
|
1.2 |
% |
Customs and Border Protection ("CBP") |
|
|
8.5 |
|
|
|
68,000 |
|
|
|
0.7 |
% |
|
|
3,881,249 |
|
|
|
1.2 |
% |
Occupational Safety and Health Administration ("OSHA") |
|
|
1.3 |
|
|
|
75,000 |
|
|
|
0.8 |
% |
|
|
3,077,661 |
|
|
|
1.0 |
% |
Defense Health Agency ("DHA") |
|
|
11.6 |
|
|
|
101,285 |
|
|
|
1.1 |
% |
|
|
2,392,674 |
|
|
|
0.8 |
% |
National Archives and Records Administration ("NARA") |
|
|
9.6 |
|
|
|
161,730 |
|
|
|
1.8 |
% |
|
|
2,346,885 |
|
|
|
0.7 |
% |
Department of Energy ("DOE") |
|
|
6.8 |
|
|
|
120,496 |
|
|
|
1.3 |
% |
|
|
2,246,152 |
|
|
|
0.7 |
% |
Military Entrance Processing Command ("MEPCOM") |
|
|
3.0 |
|
|
|
30,000 |
|
|
|
0.3 |
% |
|
|
2,215,374 |
|
|
|
0.7 |
% |
U.S. Department of Agriculture ("USDA") |
|
|
4.9 |
|
|
|
67,902 |
|
|
|
0.7 |
% |
|
|
2,132,111 |
|
|
|
0.7 |
% |
National Weather Service ("NWS") |
|
|
11.2 |
|
|
|
94,378 |
|
|
|
1.0 |
% |
|
|
2,114,807 |
|
|
|
0.7 |
% |
Bureau of Indian Affairs ("BIA") |
|
|
9.8 |
|
|
|
78,184 |
|
|
|
0.9 |
% |
|
|
2,090,033 |
|
|
|
0.7 |
% |
National Park Service ("NPS") |
|
|
1.7 |
|
|
|
62,772 |
|
|
|
0.7 |
% |
|
|
1,829,413 |
|
|
|
0.6 |
% |
Bureau of Reclamation ("BOR") |
|
|
10.6 |
|
|
|
69,518 |
|
|
|
0.8 |
% |
|
|
1,805,041 |
|
|
|
0.6 |
% |
22
Tenants (Cont.) (As of September 30, 2022, unaudited) |
|
|
|
Tenant |
|
Weighted |
|
|
Leased |
|
|
Percentage |
|
|
Annualized |
|
|
Percentage |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Government |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
General Services Administration - Other |
|
|
3.0 |
|
|
|
55,807 |
|
|
|
0.6 |
% |
|
|
1,741,825 |
|
|
|
0.6 |
% |
U.S. Coast Guard ("USCG") |
|
|
5.2 |
|
|
|
59,547 |
|
|
|
0.7 |
% |
|
|
1,651,037 |
|
|
|
0.5 |
% |
National Oceanic and Atmospheric Administration ("NOAA") |
|
|
5.3 |
|
|
|
33,403 |
|
|
|
0.4 |
% |
|
|
1,247,647 |
|
|
|
0.4 |
% |
U.S. Army Corps of Engineers ("ACOE") |
|
|
2.4 |
|
|
|
39,320 |
|
|
|
0.4 |
% |
|
|
1,120,690 |
|
|
|
0.4 |
% |
Small Business Administration ("SBA") |
|
|
15.1 |
|
|
|
44,753 |
|
|
|
0.5 |
% |
|
|
983,872 |
|
|
|
0.3 |
% |
Health Resources and Services Administration ("HRSA") |
|
|
17.8 |
|
|
|
27,569 |
|
|
|
0.3 |
% |
|
|
965,676 |
|
|
|
0.3 |
% |
Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") |
|
|
3.7 |
|
|
|
21,342 |
|
|
|
0.2 |
% |
|
|
765,851 |
|
|
|
0.2 |
% |
Federal Energy Regulatory Commission ("FERC") |
|
|
16.9 |
|
|
|
6,214 |
|
|
|
0.1 |
% |
|
|
245,540 |
|
|
|
0.1 |
% |
Office of the Field Solicitor ("OFC") |
|
|
10.6 |
|
|
|
4,526 |
|
|
|
0.0 |
% |
|
|
117,518 |
|
|
|
0.0 |
% |
Office of the Special Trustee for American Indians ("OST") |
|
|
10.6 |
|
|
|
3,359 |
|
|
|
0.0 |
% |
|
|
87,217 |
|
|
|
0.0 |
% |
U.S. Marshals Service ("USMS") |
|
|
4.3 |
|
|
|
1,054 |
|
|
|
0.0 |
% |
|
|
49,293 |
|
|
|
0.0 |
% |
Department of Labor ("DOL") |
|
|
1.3 |
|
|
|
1,004 |
|
|
|
0.0 |
% |
|
|
23,611 |
|
|
|
0.0 |
% |
U.S. Probation Office ("USPO") |
|
|
1.3 |
|
|
|
452 |
|
|
|
0.0 |
% |
|
|
10,638 |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Subtotal |
|
|
10.3 |
|
|
|
8,794,332 |
|
|
|
96.4 |
% |
|
$ |
308,011,323 |
|
|
|
97.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Private Tenants |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Private Tenants |
|
|
2.7 |
|
|
|
81,866 |
|
|
|
0.9 |
% |
|
$ |
2,107,358 |
|
|
|
0.7 |
% |
ExamOne |
|
|
1.0 |
|
|
|
52,015 |
|
|
|
0.6 |
% |
|
$ |
1,362,864 |
|
|
|
0.4 |
% |
CVS Health |
|
|
2.0 |
|
|
|
60,324 |
|
|
|
0.7 |
% |
|
$ |
1,323,937 |
|
|
|
0.4 |
% |
St. Luke's Health System |
|
|
4.3 |
|
|
|
32,043 |
|
|
|
0.4 |
% |
|
$ |
996,821 |
|
|
|
0.3 |
% |
Providence Health & Services |
|
|
2.9 |
|
|
|
21,643 |
|
|
|
0.2 |
% |
|
$ |
723,501 |
|
|
|
0.2 |
% |
Lummus Corporation |
|
|
5.8 |
|
|
|
70,078 |
|
|
|
0.8 |
% |
|
$ |
410,344 |
|
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Subtotal |
|
|
3.2 |
|
|
|
317,969 |
|
|
|
3.6 |
% |
|
$ |
6,924,825 |
|
|
|
2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total / Weighted Average |
|
|
10.1 |
|
|
|
9,112,301 |
|
|
|
100.0 |
% |
|
$ |
314,936,148 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Weighted based on leased square feet.
23
Lease Expirations (As of September 30, 2022, unaudited) |
|
|
|
Year of Lease Expiration |
|
Number of |
|
Leased Square |
|
|
Percentage of |
|
|
Annualized |
|
|
Percentage of |
|
|
Annualized |
|
|||||
2022 |
|
2 |
|
|
41,683 |
|
|
|
0.5 |
% |
|
$ |
1,543,184 |
|
|
|
0.5 |
% |
|
$ |
37.02 |
|
2023 |
|
11 |
|
|
437,753 |
|
|
|
4.8 |
% |
|
|
13,523,681 |
|
|
|
4.3 |
% |
|
|
30.89 |
|
2024 |
|
11 |
|
|
740,595 |
|
|
|
8.1 |
% |
|
|
23,731,586 |
|
|
|
7.5 |
% |
|
|
32.04 |
|
2025 |
|
15 |
|
|
660,128 |
|
|
|
7.2 |
% |
|
|
22,652,412 |
|
|
|
7.2 |
% |
|
|
34.32 |
|
2026 |
|
5 |
|
|
294,245 |
|
|
|
3.2 |
% |
|
|
9,477,011 |
|
|
|
3.0 |
% |
|
|
32.21 |
|
2027 |
|
9 |
|
|
506,510 |
|
|
|
5.6 |
% |
|
|
18,494,025 |
|
|
|
5.9 |
% |
|
|
36.51 |
|
2028 |
|
11 |
|
|
805,055 |
|
|
|
8.8 |
% |
|
|
18,191,041 |
|
|
|
5.8 |
% |
|
|
22.60 |
|
2029 |
|
5 |
|
|
493,794 |
|
|
|
5.4 |
% |
|
|
14,206,922 |
|
|
|
4.5 |
% |
|
|
28.77 |
|
2030 |
|
0 |
|
|
- |
|
|
|
0.0 |
% |
|
|
- |
|
|
|
0.0 |
% |
|
|
- |
|
2031 |
|
2 |
|
|
100,502 |
|
|
|
1.1 |
% |
|
|
4,042,792 |
|
|
|
1.3 |
% |
|
|
40.23 |
|
Thereafter |
|
59 |
|
|
5,032,036 |
|
|
|
55.3 |
% |
|
|
189,073,494 |
|
|
|
60.0 |
% |
|
|
37.57 |
|
Total / Weighted Average |
|
130 |
|
|
9,112,301 |
|
|
|
100.0 |
% |
|
$ |
314,936,148 |
|
|
|
100.0 |
% |
|
$ |
34.56 |
|
24
Summary of Re/Development Projects (As of September 30, 2022, unaudited, in thousands, except square feet) |
|
|
|
Projects Under Construction(1) |
|
|||||||||||||||||||||||||||||||||||
Property Name |
|
Location |
|
|
Property Type |
|
|
Total Leased Square Feet |
|
|
Lease Term |
|
|
Anticipated Total Cost |
|
|
Cost to Date |
|
|
Total Lump-Sum Reimbursement |
|
|
Anticipated Completion Date |
|
|
Anticipated Lease Commencement |
|
|||||||||
N/A |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Projects in Design(2) |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Property Name |
|
Location |
|
|
Property Type |
|
|
Total Estimated Leased Square Feet |
|
|
Lease Term |
|
|
Cost to Date |
|
|
Anticipated Completion Date |
|
|
Anticipated Lease Commencement |
|
|
|
|
|
|
|
|||||||||
FDA - Atlanta |
|
Atlanta, GA |
|
|
Laboratory |
|
|
|
162,000 |
|
|
20-Year |
|
|
$ |
31,620 |
|
|
2Q 2025 |
|
|
2Q 2025 |
|
|
|
|
|
|
|
|||||||
Total |
|
|
|
|
|
|
|
|
162,000 |
|
|
|
|
|
$ |
31,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Projects Previously Completed with Outstanding Lump-Sum Reimbursements |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Property Name |
|
Location |
|
|
Property Type |
|
|
Total Leased Square Feet |
|
|
Lease Term |
|
|
Outstanding Lump-Sum Reimbursement(3) |
|
|
Completion Date |
|
|
Lease Commencement |
|
|
|
|
|
|
|
|||||||||
N/A |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
(1) Includes properties under construction for which design is complete.
(2) Includes projects in the design phase for which project scope is not fully determined.
(3) Includes reimbursement of lump-sum tenant improvement costs and development fees.
25