0000950170-22-020827 | 10-Q | XBRL Viewer | Easterly Government Properties INC

As of September 30,

Joint Venture

Ownership Interest

MedBase Venture

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2022	Oct. 25, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	DEA
Entity Registrant Name	EASTERLY GOVERNMENT PROPERTIES, INC.
Entity Central Index Key	0001622194
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-36834
Entity Tax Identification Number	47-2047728
Entity Address, Address Line One	2001 K Street NW
Entity Address, Address Line Two	Suite 775 North
Entity Address, City or Town	D.C.
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	20006
City Area Code	202
Local Phone Number	595-9500
Entity Common Stock, Shares Outstanding		90,814,021
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	MD
Document Quarterly Report	true
Document Transition Report	false

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets
Real estate properties, net	$ 2,463,961	$ 2,399,188
Cash and cash equivalents	11,032	11,132
Restricted cash	10,462	9,011
Tenant accounts receivable	60,250	58,733
Investment in unconsolidated real estate venture	199,338	131,840
Intangible assets, net	178,327	186,307
Interest rate swaps	4,515
Prepaid expenses and other assets	33,765	29,901
Total assets	2,961,650	2,826,112
Liabilities
Revolving credit facility	177,750	14,500
Term loan facilities, net	248,879	248,579
Notes payable, net	695,935	695,589
Mortgage notes payable, net	247,969	252,421
Intangible liabilities, net	19,139	19,718
Deferred revenue	85,510	87,134
Interest rate swaps		5,700
Accounts payable, accrued expenses and other liabilities	67,673	60,890
Total liabilities	1,542,855	1,384,531
Equity
Common stock, par value $0.01, 200,000,000 shares authorized, [90,816,622] and 90,147,868 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	908	901
Additional paid-in capital	1,622,628	1,604,712
Retained earnings	77,203	62,023
Cumulative dividends	(451,917)	(379,895)
Accumulated other comprehensive income (loss)	3,987	(5,072)
Total stockholders’ equity	1,252,809	1,282,669
Non-controlling interest in Operating Partnership	165,986	158,912
Total equity	1,418,795	1,441,581
Total liabilities and equity	$ 2,961,650	$ 2,826,112

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement Of Financial Position [Abstract]
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares issued	90,814,021	90,147,868
Common Stock, shares outstanding	90,814,021	90,147,868

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues
Rental income	$ 72,643	$ 67,439	$ 214,238	$ 197,713
Asset management income	377		942
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
Dividends declared per common share	$ 0.265	$ 0.265	$ 0.795	$ 0.785
Tenant Reimbursements [Member]
Revenues
Total revenues	$ 1,616	$ 1,527	$ 3,676	$ 3,746
Other Income [Member]
Revenues
Total revenues	$ 405	$ 642	$ 1,244	$ 1,764

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 749	$ 9,042	$ 17,142	$ 26,176
Other comprehensive income:
Unrealized gain on interest rate swaps, net	1,806	1,180	10,216	4,275
Other comprehensive income	1,806	1,180	10,216	4,275
Comprehensive income	2,555	10,222	27,358	30,451
Non-controlling interest in Operating Partnership	(107)	(1,065)	(1,962)	(3,007)
Other comprehensive income attributable to non-controlling interest	(212)	(167)	(1,157)	(450)
Comprehensive income attributable to Easterly Government Properties, Inc.	$ 2,236	$ 8,990	$ 24,239	$ 26,994

- Definition

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

+ References + Details

- Definition

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

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+ Details

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net income	$ 17,142	$ 26,176
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	73,552	67,615
Straight line rent	559	(4,317)
Income from unconsolidated real estate venture	(2,286)
Amortization of above- / below-market leases	(2,373)	(3,569)
Amortization of unearned revenue	(4,313)	(4,217)
Amortization of loan premium / discount	(844)	(57)
Amortization of deferred financing costs	1,538	1,164
Amortization of lease inducements	640	647
Gain on the sale of operating property		(1,307)
Impairment loss	5,540
Distributions from investment in unconsolidated real estate venture	5,432
Non-cash compensation	4,891	3,700
Other		69
Net change in:
Tenant accounts receivable	544	(3,217)
Prepaid expenses and other assets	(2,598)	(4,890)
Deferred revenue associated with operating leases	2,689	761
Principal payments on operating lease obligations	(314)	(256)
Accounts payable, accrued expenses and other liabilities	3,984	16,157
Net cash provided by operating activities	103,783	94,459
Cash flows from investing activities
Real estate acquisitions and deposits	(93,737)	(115,440)
Additions to operating properties	(16,128)	(14,070)
Additions to development properties	(8,804)	(5,278)
Proceeds from sale of operating property, net		7,336
Distributions from investment in unconsolidated real estate venture	609
Investment in unconsolidated real estate venture	(71,253)
Net cash used in investing activities	(189,313)	(127,452)
Cash flows from financing activities
Payment of deferred financing costs		(3,575)
Issuance of common shares	9,504	90,914
Credit facility draws	200,750	159,500
Credit facility repayments	(37,500)	(126,250)
Repayments of mortgage notes payable	(3,942)	(2,948)
Dividends and distributions paid	(81,795)	(74,106)
Payment of offering costs	(136)	(1,463)
Net cash provided by financing activities	86,881	42,072
Net increase in Cash and cash equivalents and Restricted cash	1,351	9,079
Cash and cash equivalents and Restricted cash, beginning of period	20,143	14,669
Cash and cash equivalents and Restricted cash, end of period	21,494	23,748
Supplemental disclosure of cash flow information is as follows (amounts in thousands):
Cash paid for interest, net of capitalized interest	25,805	27,395
Supplemental disclosure of non-cash information
Offering costs accrued, not paid		16
Deferred asset acquisition costs accrued, not paid		144
Contingent consideration accrued, not received	125
Contingent consideration accrued, not paid		336
Unrealized gain on interest rate swaps, net	10,216	4,275
Properties acquired for Common Units	17,361	20,790
Recognition of operating lease right-of-use assets	101
Recognition of liabilities related to operating lease right-of-use assets	101
Exchange of Common Units for Shares of Common Stock
Non-controlling interest in Operating Partnership	(2,911)	(4,261)
Common stock	2	3
Additional paid-in capital	2,909	4,258
Operating Properties [Member]
Supplemental disclosure of non-cash information
Additions to properties accrued, not paid	2,731	1,029
Development Properties [Member]
Supplemental disclosure of non-cash information
Additions to properties accrued, not paid	$ 2,550	$ 1,022

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Organization and Basis of Presentation

1. Organization and Basis of Presentation

The information contained in the following notes to the consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2021, and related notes thereto, included in the Annual Report on Form 10-K of Easterly Government Properties, Inc. (the “Company”) for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2022.

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

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

We focus on acquiring, developing and managing U.S. Government leased properties that are essential to supporting the mission of the tenant agency and strive to be a partner of choice for the U.S. Government, working closely with the tenant agency to meet its needs and objectives. As of September 30, 2022, we wholly owned 88 operating properties and seven operating properties through an unconsolidated joint venture (the “JV”) 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 was entirely leased to a private tenant. As of September 30, 2022, our operating properties were 99% leased. For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned one property under development that we expect will encompass approximately 0.2 million leased square feet upon completion.

The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of the Operating Partnership. We owned approximately 88.3% of the aggregate limited partnership interests in the Operating Partnership (“common units”) at September 30, 2022. We believe that we have operated and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015.

Principles of Consolidation

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

Basis of Presentation

The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to state fairly the consolidated financial position of the Company at September 30, 2022 and December 31, 2021, the consolidated results of operations for the three and nine months ended September 30, 2022 and 2021, and the consolidated cash flows for the nine months ended September 30, 2022 and 2021. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the balance sheet, and the

reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, including the impact of extraordinary events such as the novel coronavirus (COVID-19) pandemic, the results of which form the basis for making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

The significant accounting policies used in the preparation of the Company’s condensed consolidated financial statements are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Reclassifications

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

Real Estate and Intangibles

9 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Real Estate and Intangibles

3. Real Estate and Intangibles

Acquisitions

During the nine months ended September 30, 2022, we acquired three operating properties in asset acquisitions, FBI – Tampa, NARA – Broomfield and JUD – Council Bluffs, for an aggregate purchase price of $108.1 million. We allocated the aggregate purchase price of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands):


	Total
Real estate
Land	$	9,795
Building		83,403
Acquired tenant improvements		5,386
Total real estate		98,584
Intangible assets
In-place leases		7,927
Acquired leasing commissions		4,453
Total intangible assets		12,380
Intangible liabilities
Below-market leases		(2,858	)
Total intangible liabilities		(2,858	)
Purchase price	$	108,106

The intangible assets and liabilities of operating properties acquired during the nine months ended September 30, 2022 have a weighted average amortization period of 15.5 years as of September 30, 2022. During the nine months ended September 30, 2022, we included $3.0 million of revenues and $1.0 million of net income in our Consolidated Statements of Operations related to the operating properties acquired.

During the nine months ended September 30, 2022, we incurred $0.9 million of acquisition-related expenses mainly consisting of internal costs associated with property acquisitions and future acquisitions.

Consolidated Real Estate and Intangibles

Real estate and intangibles consisted of the following as of September 30, 2022 (amounts in thousands):


	Total
Real estate properties, net
Land	$	231,599
Building and improvements		2,426,241
Acquired tenant improvements		95,403
Construction in progress		39,338
Accumulated depreciation		(328,620	)
Total Real estate properties, net		2,463,961
Intangible assets, net
In-place leases		293,642
Acquired leasing commissions		75,964
Above market leases		17,541
Payment in lieu of taxes		6,394
Accumulated amortization		(215,214	)
Total Intangible assets, net		178,327
Intangible liabilities, net
Below market leases		(76,745	)
Accumulated amortization		57,606
Total Intangible liabilities, net		(19,139	)

During the quarter ended September 30, 2022, the Company recognized an impairment loss totaling approximately $5.5 million for its ICE – Otay property in order to reduce its carrying value to its estimated fair value, which declined due to changes in expected cash flows related to the existing tenant's lease expiration in 2022. ICE – Otay is a 47,919 rentable square foot office building located in San Diego, California. See Note 7 for additional information.

No operating properties were disposed of during the nine months ended September 30, 2022.

The following table summarizes the scheduled amortization of the Company’s acquired above- and below-market lease intangibles for each of the five succeeding years as of September 30, 2022 (amounts in thousands):


	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2022	$	349	$	(1,117	)
2023		1,390		(4,307	)
2024		1,341		(3,160	)
2025		1,286		(2,454	)
2026		1,217		(2,216	)

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

Investments in Unconsolidated Real Estate Venture

9 Months Ended

Sep. 30, 2022

Unconsolidated Real Estate Venture [Abstract]

Investments in Unconsolidated Real Estate Venture

4. Investment in Unconsolidated Real Estate Venture

The following is a summary of our investment in the JV (dollars in thousands):

On October 13, 2021, we formed an unconsolidated real estate venture, which we refer to as the JV, with a global investor to fund the acquisition of a portfolio of ten properties anticipated to encompass 1,214,165 leased square feet ("the "VA Portfolio"). We own a 53.0% interest in the JV, subject to preferred allocations as provided in the JV agreement.

During the nine months ended September 30, 2022 , the JV acquired three properties VA – Birmingham, VA – Marietta and VA – Columbus, for an aggregate purchase price of $135.3 million. As of September 30, 2022 seven of the ten properties in the VA Portfolio had been acquired by the JV.

We provide asset management services to the JV. We recognized asset management service revenue of $0.4 million and $0.9 million for the three and nine months ended September 30, 2022, respectively.

On January 20, 2022, the JV issued 125 Series A Preferred Units (“preferred units”) which resulted in net proceeds of $0.1 million. Holders of the preferred units are entitled to receive, when declared, cumulative preferential cash distributions.

The following is a summary of financial information for the JV (amounts in thousands):


	As of September 30,
Balance sheet information:	2022
Real estate, net (1)	$	313,768
Other assets, net		71,116
Total assets	$	384,884

Total liabilities (2)	$	9,407
Total equity		375,477
Total liabilities and equity	$	384,884

Company’s share of equity	$	198,963
Basis differential (3)		375
Carrying value of the Company’s investment in the unconsolidated venture	$	199,338

(1)

At September 30, 2022, this amount included right-of-use assets - finance leases totaling approximately $4.9 million representing a ground lease at VA – Lubbock.

(2)

At September 30, 2022, this amount included lease liabilities - finance leases totaling approximately $5.0 million representing a ground lease at VA – Lubbock.

(3)

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


	For the three months ended September 30,				For the nine months ended September 30,
Income statement information:	2022		2021		2022		2021
Total revenue	$	7,136	$	—	$	17,799	$	—
Operating income		1,608		—		4,436		—
Net income		1,567		—		4,313		—

Company’s share of net income	$	830	$	—	$	2,286	$	—

Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt

5. Debt

At September 30, 2022, our consolidated borrowings consisted of the following (amounts in thousands):


	Principal Outstanding			Interest	Current
Loan	September 30, 2022			Rate (1)	Maturity
Revolving credit facility:
Revolving credit facility (2)	$	177,750		L + 135 bps	July 2025 (3)
Total revolving credit facility		177,750

Term loan facilities:
2016 term loan facility		100,000		2.77% (5)	March 2024
2018 term loan facility (4)		150,000		4.01% (6)	July 2026
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,121	)
Total term loan facilities, net		248,879

Notes payable:
2017 series A senior notes		95,000		4.05%	May 2027
2017 series B senior notes		50,000		4.15%	May 2029
2017 series C senior notes		30,000		4.30%	May 2032
2019 series A senior notes		85,000		3.73%	September 2029
2019 series B senior notes		100,000		3.83%	September 2031
2019 series C senior notes		90,000		3.98%	September 2034
2021 series A senior notes		50,000		2.62%	October 2028
2021 series B senior notes		200,000		2.89%	October 2030
Total notes payable		700,000
Less: Total unamortized deferred financing fees		(4,065	)
Total notes payable, net		695,935

Mortgage notes payable:
DEA – Pleasanton		15,700		L + 150bps (7)	October 2023
VA – Golden		8,692		5.00% (7)	April 2024
MEPCOM – Jacksonville (8)		5,858		4.41% (7)	October 2025
USFS II – Albuquerque		13,879		4.46% (7)	July 2026
ICE – Charleston		13,792		4.21% (7)	January 2027
VA – Loma Linda		127,500		3.59% (7)	July 2027
CBP – Savannah		10,595		3.40% (7)	July 2033
USCIS – Kansas City		51,500		3.68% (7)	August 2024
Total mortgage notes payable		247,516
Less: Total unamortized deferred financing fees		(1,519	)
Less: Total unamortized premium/discount		1,972
Total mortgage notes payable, net		247,969

Total debt	$	1,370,533

(1)

At September 30, 2022, the one-month LIBOR (“L”) was 3.14%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for each of our $450.0 million senior unsecured revolving credit facility (our “revolving credit facility”), our $200.0 million senior unsecured term loan facility (as amended, our “2018 term loan facility”) and our $100.0 million senior unsecured term loan facility (our “2016 term loan facility”) is based on the Company’s consolidated leverage ratio, as set forth in the respective loan agreements.

(2)

Our revolving credit facility had available capacity of $272.1 million at September 30, 2022 with an accordion feature that permits us to request additional lender commitments for up to $250.0 million of additional capacity, subject to the satisfaction of customary terms and conditions.

(3)

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

(4)

Our 2018 term loan facility has undrawn capacity up to $50.0 million of which is available during a delayed draw period.

(5)

Entered into two interest rate swaps with an effective date of March 29, 2017 with an aggregate notional value of $100.0 million to effectively fix the interest rate at 2.77% annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement.

(6)

Entered into four interest rate swaps with an effective date of December 13, 2018 with an aggregate notional value of $150.0 million to effectively fix the interest rate at 4.01% annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement.

(7)

Effective interest rates are as follows: DEA – Pleasanton 1.80%, VA – Golden 5.03%, MEPCOM – Jacksonville 3.89%, USFS II Albuquerque 3.92%, ICE – Charleston 3.93%, VA – Loma Linda 3.78%, CBP – Savannah 4.12%, USCIS – Kansas City 2.05%.

(8)

On October 27, 2022, the Company extinguished the mortgage note obligation on MEPCOM - Jacksonville in conjunction with the sale of the property. See Note 15 for additional information.

As of September 30, 2022, the net carrying value of real estate collateralizing our mortgages payable totaled $373.6 million. See Note 7 for the fair value of our debt instruments.

On July 22, 2022, we entered into the first amendment to our second amended and restated senior credit agreement (the “first amendment”). The first amendment extended the deadline for the $50.0 million delayed draw portion of the 2018 term loan to July 24, 2023 (from July 22, 2022).

Financial Covenant Considerations

As of September 30, 2022, we were in compliance with all financial and other covenants related to our debt.

- Definition

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

+ References

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-Name Accounting Standards Codification
-Topic 470
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+ Details

Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

6. Derivatives and Hedging Activities

The following table sets forth the key terms and fair values of our interest rate swap derivatives, each of which was designated as a cash flow hedge as of September 30, 2022 (amounts in thousands):


Notional Amount		Fixed Rate			Floating Rate Index	Effective Date	Expiration Date	Fair Value
$	100,000		1.41	%	One-Month LIBOR	March 29, 2017	September 29, 2023	$	2,881
$	150,000		2.71	%	One-Month LIBOR	December 13, 2018	June 19, 2023	$	1,634

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


Balance Sheet Line Item	As of September 30, 2022
Interest rate swaps - Asset	$	4,515
Interest rate swaps - Liability	$	—

Cash Flow Hedges of Interest Rate Risk

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

The Company estimates that $4.5 million will be reclassified from AOCI as a decrease to interest expense over the next 12 months.

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


	For the three months ended September 30,						For the nine months ended September 30,
	2022			2021			2022			2021
Unrealized gain (loss) recognized in AOCI	$	1,801		$	(160	)	$	8,046		$	324
Loss reclassified from AOCI into interest expense		(5	)		(1,340	)		(2,170	)		(3,951	)

Credit-Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on such indebtedness. As of September 30, 2022, the Company did not have any derivates in a net liability position. As of September 30, 2022, the Company was in compliance with these agreements and had not posted any collateral related to these agreements.

Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

7. Fair Value Measurements

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

Recurring fair value measurements

The fair values of our interest rate swaps are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities in such interest rates. While the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of September 30, 2022 were classified as Level 2 of the fair value hierarchy.

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, other assets and accounts payable and accrued expenses are reasonable estimates of fair values because of the short maturities of these instruments. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall (amounts in thousands):


	As of September 30, 2022
Balance Sheet Line Item	Level 1		Level 2		Level 3
Interest rate swaps - Asset	$	—	$	4,515	$	—
Interest rate swaps - Liability	$	—	$	—	$	—

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

Nonrecurring fair value measurements

We assessed the recoverability of the carrying amount of our real estate and related intangibles as of September 30, 2022. The assessment resulted in the remeasurement of ICE – Otay, which was written down to its estimated fair value and was classified as Level 3 in the fair value hierarchy. Our estimate of the fair value was based on a combination of a pending offer from a third party to acquire the property and a discounted cash flow analysis. The Company used two significant unobservable inputs in the various scenarios, which were the cash flow discount rate (ranging from 6.25%-9.00%) and average price per square foot of comparable sales in the market ($109.08-$185.90). There is no assurance that the Company will sell ICE – Otay on the terms proposed or at all. The remeasurement resulted in an impairment loss of $5.5 million, which is included in "Impairment loss" in our Consolidated Statements of Operations.

Financial assets and liabilities not measured at fair value

As of September 30, 2022, all financial instruments and liabilities were reflected in our balance sheets at amounts which, in our estimation, reasonably approximated their fair values, except for the following:


	As of September 30, 2022
Financial liabilities	Carrying Amount (1)		Fair Value (2)

Revolving credit facility	$	177,750	$	177,750
2016 term loan facility	$	100,000	$	100,000
2018 term loan facility	$	150,000	$	150,000
Notes payable	$	700,000	$	591,295
Mortgages payable	$	247,516	$	232,858

(1)

The carrying amount consists of principal only.

(2)

We deem the fair value measurement of the financial liability instrument a Level 3 measurement.

- Definition

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

+ References + Details

Equity Incentive Pan

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Equity Incentive Plan

8. Equity Incentive Plan

Restricted Shares

The Company awards restricted stock to certain members of management and non‑employee directors. Management awards generally vest over a range of two to four years. Non‑employee director shares vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting, as long as the grantee remains a director or employee on such date. Restricted stock awards issued under the 2015 Equity Incentive Plan, as amended (the “2015 Equity Incentive Plan”), may not be sold or otherwise transferred until restrictions have lapsed, as established by the compensation committee.

We value our non-vested restricted share awards at the grant date fair value, which was the market price of our common stock as of the applicable grant date. Compensation expense related to restricted common stock awards was $0.1 million and $0.2 million for each of the three months ended September 30, 2022 and 2021, respectively, and $0.5 million and $0.6 million for each of the nine months ended September 30, 2022 and 2021, respectively.

The fair value of restricted stock that vested was $1.5 million and $0.9 million during the nine months ended September 30, 2022 and 2021, respectively, based on the market price at the vesting date. The balance of unamortized restricted stock expense as of September 30, 2022 was $0.5 million, which is expected to be recognized over a weighted‑average period of 1.1 years.

A summary of the status of our restricted shares as of September 30, 2022 and changes during the nine months ended September 30, 2022 is presented below:


	Restricted Shares			Restricted Shares Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2021		86,006		$	19.16
Vested		(71,168	)		18.49
Granted		29,078			18.81
Forfeited		(2,601	)		21.16
Outstanding, September 30, 2022		41,315		$	19.94

LTIP Units

The Company grants LTIP units to certain members of management and non‑employee directors. Management awards generally vest immediately or over a range of two to four years. Non‑employee director shares vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting, as long as the grantee remains a director or employee on such date. Performance-based LTIP units are earned subject to the Company achieving certain thresholds, including absolute total shareholder returns, relative total shareholder returns, or operational hurdles through the performance period. Service-based LTIP units vest over time, subject to continued employment and other terms of the awards.

The following is a summary of our granted LTIP unit awards during the nine months ended September 30, 2022:

Award
 Type

Grant
 Date

Performance Period
End Date

Vest Date

Units Granted

Service

January 3, 2022

—

December 31, 2024

110,906

Operational

January 3, 2022

December 31, 2024

1

80,160

Performance

January 3, 2022

December 31, 2024

1

158,535

Service

May 11, 2022

—

2

11,238

2022 LTIP Grant

360,839

(1)

Earned units will vest on date of compensation committee determination of performance.

(2)

Units will vest on the earlier of the anniversary of the grant date or the 2023 annual stockholder meeting.

We value our operational LTIP unit awards that are subject to the Company achieving certain performance conditions at the grant date fair value, which is the market price of our common stock as of the applicable grant date. We value our service-based LTIP unit awards at the grant date fair value, which is the market price of our common stock as of the applicable grant date, discounted by the risk related to the timing of book-up events. For the performance LTIP unit awards granted that are subject to the Company achieving certain total shareholder return thresholds, we used a Monte Carlo Simulation (risk-neutral approach) to determine the grant date fair value.

The following is a summary of the significant assumptions used to value the total shareholder return for performance-based LTIP units during the nine months ended September 30, 2022:


Expected volatility		27.0	%
Dividend yield		4.8	%
Risk-free interest rate		1.0	%
Expected life	3 years

The fair value of LTIP units that vested were $5.5 million and $4.5 million during the nine months ended September 30, 2022 and 2021, respectively, based on the market price at the vesting date. Compensation expense related to LTIP unit awards was $1.5 million and $1.1 million for the three months ended September 30, 2022 and 2021, respectively, and $4.4 million and $3.1 million for the nine months ended September 30, 2022 and 2021, respectively. The balance of unamortized LTIP expense as of September 30, 2022 was $7.9 million, which is expected to be recognized over a weighted‑average period of 1.8 years. As of September 30, 2022, management considers it probable that the operational performance conditions on our unvested grants will be achieved.

A summary of the status of our LTIP units as of September 30, 2022 and changes during the nine months ended September 30, 2022 are presented below:


	LTIP Units (1)			LTIP Units Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2021		651,238		$	21.02
Vested		(115,412	)		18.66
Granted		360,839			17.48
Forfeited		—			—
Outstanding, September 30, 2022		896,665		$	19.90

(1)

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

Equity

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Equity

9. Equity

The following table summarizes the changes in the Company’s stockholders’ equity for the three months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts):


	Shares			Common Stock Par Value		Additional Paid-in Capital			Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Three months ended September 30, 2022
Balance at June 30, 2022		90,816,622		$	908	$	1,621,288		$	76,561	$	(427,851	)	$	2,393		$	168,696		$	1,441,995
Stock based compensation		—			—		126			—		—			—			1,499			1,625
Dividends and distributions paid ($0.265 per share)		—			—		—			—		(24,066	)		—			(3,314	)		(27,380	)
Forfeiture of unvested restricted stock		(2,601	)		—		—			—		—			—			—			—
Redemption of common units for shares of common stock		—			—		—			—		—			—			—			—
Contribution of property for common units		—			—		—			—		—			—			—			—
Unrealized gain on interest rate swaps, net		—			—		—			—		—			1,594			212			1,806
Net income		—			—		—			642		—			—			107			749
Allocation of non-controlling interest in Operating Partnership		—			—		1,214			—		—			—			(1,214	)		—
Balance at September 30, 2022		90,814,021		$	908	$	1,622,628		$	77,203	$	(451,917	)	$	3,987		$	165,986		$	1,418,795
Three months ended September 30, 2021
Balance at June 30, 2021		83,931,290		$	839	$	1,471,928		$	47,157	$	(334,815	)	$	(8,539	)	$	157,967		$	1,334,537
Stock based compensation		—			—		216			—		—			—			1,117			1,333
Dividends and distributions paid ($0.265 per share)		—			—		—			—		(22,254	)		—			(3,075	)		(25,329	)
Grant of unvested restricted stock		11,066			—		—			—		—			—			—			—
Redemption of common units for shares of common stock		59,774			1		836			—		—			—			(837	)		—
Issuance of common stock, net		2,114,408			21		49,926			—		—			—			—			49,947
Unrealized gain on interest rate swaps, net		—			—		—			—		—			1,013			167			1,180
Net income		—			—		—			7,977		—			—			1,065			9,042
Allocation of non-controlling interest in Operating Partnership		—			—		(1,460	)		—		—			—			1,460			—
Balance at September 30, 2021		86,116,538		$	861	$	1,521,446		$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710

The following table summarizes the changes in the Company’s stockholders’ equity for the nine months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts):


	Shares		Common Stock Par Value		Additional Paid-in Capital		Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Nine months ended September 30, 2022
Balance at December 31, 2021		90,147,868	$	901	$	1,604,712	$	62,023	$	(379,895	)	$	(5,072	)	$	158,912		$	1,441,581
Stock based compensation		—		—		478		—		—			—			4,413			4,891
Dividends and distributions paid ($0.795 per share)		—		—		—		—		(72,022	)		—			(9,773	)		(81,795	)
Grant of unvested restricted stock, net		26,477		—		—		—		—			—			—			—
Redemption of common units for shares of common stock		204,751		2		2,909		—		—			—			(2,911	)		—
Issuance of common stock, net		434,925		5		9,394		—		—			—			—			9,399
Contribution of property for common units		—		—		—		—		—			—			17,361			17,361
Unrealized gain on interest rate swaps, net		—		—		—		—		—			9,059			1,157			10,216
Net income		—		—		—		15,180		—			—			1,962			17,142
Allocation of non-controlling interest in Operating Partnership		—		—		5,135		—		—			—			(5,135	)		—
Balance at September 30, 2022		90,814,021	$	908	$	1,622,628	$	77,203	$	(451,917	)	$	3,987		$	165,986		$	1,418,795
Nine months ended September 30, 2021
Balance at December 31, 2020		82,106,256	$	821	$	1,424,787	$	31,965	$	(291,652	)	$	(11,351	)	$	145,400		$	1,299,970
Stock based compensation		—		—		600		—		—			—			3,100			3,700
Dividends and distributions paid ($0.785 per share)		—		—		—		—		(65,417	)		—			(8,689	)		(74,106	)
Grant of unvested restricted stock, net		35,865		—		—		—		—			—			—			—
Redemption of common units for shares of common stock		303,185		3		4,258		—		—			—			(4,261	)		—
Issuance of common stock, net		3,671,232		37		89,868		—		—			—			—			89,905
Contribution of property for common units		—		—		—		—		—			—			20,790			20,790
Unrealized loss on interest rate swaps, net		—		—		—		—		—			3,825			450			4,275
Net income		—		—		—		23,169		—			—			3,007			26,176
Allocation of non-controlling interest in Operating Partnership		—		—		1,933		—		—			—			(1,933	)		—
Balance at September 30, 2021		86,116,538	$	861	$	1,521,446	$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710

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


Quarter	Declaration Date	Record Date	Payment Date	Dividend (1)
Q1 2022	April 27, 2022	May 13, 2022	May 25, 2022	$	0.265
Q2 2022	July 27, 2022	August 11, 2022	August 23, 2022	$	0.265
Q3 2022	October 26, 2022	November 11, 2022	November 23, 2022	$	0.265

(1)

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

Offering of Common Stock on a Forward Basis

On August 11, 2021, the Company and the Operating Partnership completed an underwritten public offering of 6,300,000 shares of common stock offered on a forward basis. In connection with the offering, the Company also entered into separate forward sale agreements with each of the forward purchasers (the “Forward Sales Agreements”), pursuant to which the forward purchasers borrowed and sold to the underwriters an aggregate of 6,300,000 shares of the Company’s common stock. On December 28, 2021, the Company issued 3,991,000 shares of its common stock for net proceeds of $85.0 million, which shares were issued in partial settlement of the Forward Sales Agreements entered into in connection with the underwritten public offering. No shares were issued during the nine months ended September 30, 2022. The Company expects to physically settle the remaining Forward Sales Agreements and receive proceeds, subject to certain adjustments, from the sale of those shares of common stock upon one or more such physical settlements. During the nine months ended September 30, 2022, the Company extended the date by which settlement of the Forward Sales Agreements will occur to August 14, 2023. Although the Company expects to settle the Forward Sales Agreements

entirely by the physical delivery of shares of its common stock for cash proceeds, the Company may also elect to cash or net-share settle all or a portion of its obligations under the Forward Sales Agreements, in which case, the Company may receive, or may owe, cash or shares of its common stock from or to the forward purchasers. The Forward Sales Agreements provide for an initial forward price of $21.64 per share, subject to certain adjustments pursuant to the terms of each of the Forward Sales Agreements. The Forward Sales Agreements are subject to early termination or settlement under certain circumstances.

ATM Programs

The Company entered into separate equity distribution agreements on each of December 20, 2019 (the “2019 ATM Program”) and June 22, 2021 (the “2021 ATM Program” and, together with the 2019 ATM Program, the “ATM Programs”) with various financial institutions pursuant to which it may issue and sell shares of its common stock having an aggregate offering price of up to $300.0 million under each ATM Program from time to time in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Under each of the ATM Programs, the Company may enter into one or more forward transactions (each, a “forward sale transaction”) under separate master forward sale confirmations and related supplemental confirmations with each of the various financial institutions party to the respective ATM Program for the sale of shares of its common stock on a forward basis.

The following table sets forth certain information with respect to issuances under the 2019 ATM Program during the nine months ended September 30, 2022 (amounts in thousands except share amounts):


	2019 ATM Program
For the three months ended	Number of Shares Issued(1)		Net Proceeds(1)
March 31, 2022		434,925	$	9,409
June 30, 2022		—		—
September 30, 2022		—		—
Total		434,925	$	9,409

(1)

Shares issued by the Company, which were all issued in settlement of forward sales transactions. Additionally, as of September 30, 2022, the Company had entered into forward sales transactions under the 2019 ATM Program for the sale of an additional 1,950,000 shares of its common stock that have not yet been settled. Subject to its right to elect net share settlement, the Company expects to physically settle the forward sales transactions by the maturity dates set forth in each applicable forward sale transaction placement notice, which dates range from December 2022 to August 2023. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $21.82 per share, the Company expects to receive net proceeds of approximately $42.6 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. The Company accounted for the forward sale transactions as equity.

No sales of shares of the Company’s common stock were made under the 2021 ATM Program during the nine months ended September 30, 2022.

The Company used the net proceeds received from such sales for general corporate purposes. As of September 30, 2022, the Company had approximately $300.0 million of gross sales of its common stock available under the 2021 ATM Program and $87.4 million of gross sales of its common stock available under the 2019 ATM Program.

Share Repurchase Program

On April 28, 2022, the Company’s Board of Directors authorized a share repurchase program whereby the Company may repurchase up to 4,538,994 shares of its common stock, or approximately 5% of its outstanding shares as of the authorization date. The Company is not required to purchase shares under the share repurchase program, but may choose to do so in the open market or through privately negotiated transactions at times and amounts based on its evaluation of market conditions and other factors.

No repurchases of shares of the Company’s common stock were made under the share repurchase program during the nine months ended September 30, 2022.

Contribution of Property for Common Units

On May 10, 2022, the Company acquired NARA – Broomfield for which it issued, as partial consideration, 827,791 common units. The issuance of common units was effected in reliance upon an exemption from registration provided by Section 4(a)(2) under the Securities Act.

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section 50
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Earnings Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

10. Earnings Per Share

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

The following table sets forth the computation of the Company’s basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands, except per share amounts):


	For the three months ended September 30,						For the nine months ended September 30,
	2022			2021			2022			2021
Numerator
Net income	$	749		$	9,042		$	17,142		$	26,176
Less: 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
Less: Dividends on participating securities		(137	)		(120	)		(410	)		(350	)
Net income available to common stockholders	$	505		$	7,857		$	14,770		$	22,819
Denominator for basic EPS		90,772,706			83,961,693			90,560,471			83,306,654
Dilutive effect of share-based compensation awards		11,455			49,200			20,646			50,299
Dilutive effect of LTIP units (1)		335,211			425,317			304,991			384,694
Dilutive effect of shares issuable under forward sale agreements (2)		—			36,047			—			33,105
Denominator for diluted EPS		91,119,372			84,472,257			90,886,108			83,774,752
Basic EPS	$	0.01		$	0.09		$	0.16		$	0.27
Diluted EPS	$	0.01		$	0.09		$	0.16		$	0.27

(1)

During both the three and nine months ended September 30, 2022, there were 314,529 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During both the three and nine months ended September 30, 2021, there were 195,096 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period.

(2)

During both the three and nine months ended September 30, 2022, there were 4,259,000 shares underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During the three and nine months ended September 30, 2021, there were 435,289 and 6,735,289 shares, respectively, underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period.

Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

11. Leases

Lessor

The Company leases commercial space to the U.S. Government through the GSA or other federal agencies or nongovernmental tenants. These leases may contain extension options that are predominately at the sole discretion of the tenant. Certain of our leases contain a “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. While certain of our leases are contractually subject to early termination, we do not believe that our tenant agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the weighted average age of these properties based on the date the property was built or renovated-to-suit, where applicable (approximately 18.0 years as of September 30, 2022), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties. Certain lease agreements include variable lease payments that, in the future, will vary based on changes in inflationary measures, real estate tax rates, usage, or share of expenditures of the leased premises.

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of September 30, 2022 (amounts in thousands):


	Payments due by period
	Total		2022 (1)		2023		2024		2025		2026		Thereafter
Fixed lease payments	$	2,368,977		62,886		243,536		223,796		212,728		203,743		1,422,288

(1)

Represents the three months ending December 31, 2022.

The table below sets forth our composition of lease revenue recognized between fixed and variable components (amounts in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
Fixed	$	68,033	$	62,359	$	199,411	$	183,529
Variable		4,610		5,080		14,827		14,184
Rental income		72,643		67,439		214,238		197,713

Lessee

The Company leases corporate office space under operating lease arrangements in Washington, D.C. and San Diego, CA. The San Diego, CA operating lease terminated on October 31, 2022. In April 2022, the Company entered into a lease agreement for new office space in San Diego, CA. This lease has a seven year term and a commencement date of October 26, 2022.

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

As of September 30, 2022, the unamortized balances associated with the Company’s right-of-use operating lease asset and operating lease liability were $1.3 million and $1.4 million, respectively. The Company used its incremental borrowing rate, which was arrived at utilizing prevailing market rates and the spread on its revolving credit facility, in order to determine the net present value of the minimum lease payments.

The following table provides quantitative information for the Company’s commenced operating leases for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
Cash flows from operating lease costs	$	121	$	119	$	324	$	387

In addition, the maturity of fixed lease payments under the Company’s commenced corporate office leases as of September 30, 2022 is summarized in the table below (amounts in thousands):


Corporate office leases	Payments due by period
2022 (1)		54
2023		277
2024		446
2025		456
2026		309
Thereafter		—
Total future minimum lease payments	$	1,542
Imputed interest		(124	)
Total	$	1,418

(1)

Represents the three months ended December 31, 2022.

Revenue

9 Months Ended

Sep. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue

12. Revenue

The table below sets forth revenue from tenant construction projects and the associated project management income disaggregated by tenant agency for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
Tenant	2022		2021		2022		2021

Department of Veteran Affairs (“VA”)	$	1,271	$	352	$	1,573	$	1,460
Federal Bureau of Investigation (“FBI”)		212		1,141		1,057		1,791
U.S. Joint Staff Command (“JSC”)		69		34		525		60
Food and Drug Administration (“FDA”)		27		58		231		82
U.S. Citizenship and Immigration Services (“USCIS”)		87		—		197		108
Customs and Border Protection (“CBP”)		—		—		155		—
National Park Services (“NPS”)		—		7		100		7
Federal Emergency Management Agency (“FEMA”)		96		—		96		15
Occupational Safety and Health Administration (“OSHA”)		4		—		72		—
Drug Enforcement Agency (“DEA”)		—		—		40		—
Internal Revenue Service (“IRS”)		—		—		33		127
U.S. Coast Guard (“USCG”)		—		7		33		7
Patent and Trademark Office (“PTO”)		—		—		14		—
The Judiciary of the U.S. Government (“JUD”)		10		7		14		11
Federal Aviation Administration (“FAA”)		14		—		14		—
General Services Administration - Other		—		—		6		25
Health Resources and Services Administration (“HRSA”)		—		—		4		3
National Weather Service (“NWS”)		2		—		2		—
Immigration and Customs Enforcement (“ICE”)		—		17		—		17
Department of Energy (“DOE”)		—		—		—		95
Environmental Protection Agency (“EPA”)		—		—		—		204
Department of Transportation (“DOT”)		—		9		—		49
Military Entrance Processing Command (“MEPCOM”)		—		—		—		18
Bureau of the Fiscal Service (“BFS”)		—		7		—		11
	$	1,792	$	1,639	$	4,166	$	4,090

The balance in Accounts receivable related to tenant construction projects and the associated project management income was $5.3 million as of September 30, 2022 and $5.0 million as of December 31, 2021.

The duration of the majority of tenant construction project reimbursement arrangements are less than a year and payment is typically due once a project is complete and work has been accepted by the tenant. There were no projects on-going as of September 30, 2022 with a duration of greater than one year.

During the three and nine months ended September 30, 2022, the Company recognized $0.1 million and $0.2 million, respectively, in parking garage income generated from the operations of parking garages situated on the Various GSA – Buffalo property and on the Various GSA – Portland property. During the three and nine months ended September 30, 2021, the Company recognized $0.1 million and $0.2 million, respectively, in parking garage income generated from the operations of parking garages situated on the Various GSA – Buffalo property and on the Various GSA – Portland property. The monthly and transient daily parking revenue falls within the scope of Revenue from Contracts with Customers (“ASC 606”) and is accounted for at the point in time when control of the goods or services transfers to the customer and the Company’s performance obligation is satisfied. The balance in Accounts receivable related to parking garage income was less than $0.1 million as of each of September 30, 2022 and December 31, 2021.

During the three and nine months ended September 30, 2022, the Company recognized less than $0.1 million and $0.1 million, respectively, in income for providing COVID-19 related cleaning services to certain tenants. During the three and nine months ended September 30, 2021, the Company recognized $0.3 million and $1.0 million, respectively, in income for providing COVID-19 related cleaning services to certain tenants. The income falls within the scope of ASC 606 and is recognized over time as the performance obligation is satisfied. The balance in Accounts receivable related to these services was less than $0.1 million as of September 30, 2022, and $0.1 million as of December 31, 2021.

There were no contract assets or liabilities as of September 30, 2022 or December 31, 2021.

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (e)
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-Publisher FASB
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-Topic 606
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-Section 50
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-Subparagraph (a)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Concentrations Risk

9 Months Ended

Sep. 30, 2022

Risks And Uncertainties [Abstract]

Concentrations Risk

13. Concentrations Risk

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

As stated in Note 1 above, the Company leases commercial space to the U.S. Government or non-governmental tenants. At September 30, 2022, the U.S. Government accounted for approximately 97.9% of our total annualized lease income and non-governmental tenants accounted for the remaining approximately 2.1%.

Seventeen of our 95 wholly-owned and unconsolidated operating properties are located in California, accounting for approximately 14.7% of our total leased square feet and approximately 19.7% of our total annualized lease income as of September 30, 2022. To the extent that weak economic or real estate conditions or natural disasters affect California more severely than other areas of the country, our business, financial condition and results of operations could be significantly impacted.

Related Parties

9 Months Ended

Sep. 30, 2022

Related Parties

14. Related Parties

The Company provides asset management services to properties owned by the JV. For the three and nine months ended September 30, 2022, we recognized Asset management income of $0.4 million and $0.9 million, respectively. We did not recognize Asset management income for the nine months ended September 30, 2021.

Subsequent Events

9 Months Ended

Sep. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent Events

For its consolidated financial statements as of September 30, 2022, the Company evaluated subsequent events and noted the following significant events.

On October 12, 2022, the Company entered into a second amended purchase and sale agreement with a third party to dispose of a portfolio of ten properties totaling approximately 668,000 leased square feet (the “Disposition Portfolio Properties”) for an aggregate purchase price of approximately $205.3 million. Concurrently on October 12, 2022, the Company received a $3.5 million non-refundable deposit from the third party buyer. As of September 30, 2022, the carrying value of the Disposition Portfolio Properties was $187.1 million and did not meet the criteria for held-for-sale classification. The Company completed the sale of nine of the Disposition Portfolio Properties on October 27, 2022, including: DHA – Aurora, HRSA – Baton Rouge, VA – Baton Rouge, FDA – College Park, MEPCOM – Jacksonville, DOE – Lakewood, ICE – Pittsburgh, OSHA – Sandy, and CBP – Sunburst. The Company expects to close on the remaining property, DOI – Billings, prior to December 31, 2022, subject to the satisfaction of customary closing conditions.

On October 27, 2022, the Company used $5.8 million of proceeds from the sale of the Disposition Portfolio Properties to extinguish the $5.8 million mortgage note obligation on MEPCOM - Jacksonville.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Reclassifications

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

Real Estate and Intangibles (Tables)

9 Months Ended

Sep. 30, 2022

Real Estate [Abstract]

Fair Values of Assets Acquired and Liabilities Assumed

We allocated the aggregate purchase price of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands):


	Total
Real estate
Land	$	9,795
Building		83,403
Acquired tenant improvements		5,386
Total real estate		98,584
Intangible assets
In-place leases		7,927
Acquired leasing commissions		4,453
Total intangible assets		12,380
Intangible liabilities
Below-market leases		(2,858	)
Total intangible liabilities		(2,858	)
Purchase price	$	108,106

Schedule of Real Estate and Intangibles

Real estate and intangibles consisted of the following as of September 30, 2022 (amounts in thousands):


	Total
Real estate properties, net
Land	$	231,599
Building and improvements		2,426,241
Acquired tenant improvements		95,403
Construction in progress		39,338
Accumulated depreciation		(328,620	)
Total Real estate properties, net		2,463,961
Intangible assets, net
In-place leases		293,642
Acquired leasing commissions		75,964
Above market leases		17,541
Payment in lieu of taxes		6,394
Accumulated amortization		(215,214	)
Total Intangible assets, net		178,327
Intangible liabilities, net
Below market leases		(76,745	)
Accumulated amortization		57,606
Total Intangible liabilities, net		(19,139	)

Summary of Scheduled Amortization Market Lease Intangibles


	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2022	$	349	$	(1,117	)
2023		1,390		(4,307	)
2024		1,341		(3,160	)
2025		1,286		(2,454	)
2026		1,217		(2,216	)

Investments in Unconsolidated Real Estate Venture (Tables)

9 Months Ended

Sep. 30, 2022

Unconsolidated Real Estate Venture [Abstract]

Summary of Investments in JV

The following is a summary of our investment in the JV (dollars in thousands):

Summary of Financial Information for JV

The following is a summary of financial information for the JV (amounts in thousands):


	As of September 30,
Balance sheet information:	2022
Real estate, net (1)	$	313,768
Other assets, net		71,116
Total assets	$	384,884

Total liabilities (2)	$	9,407
Total equity		375,477
Total liabilities and equity	$	384,884

Company’s share of equity	$	198,963
Basis differential (3)		375
Carrying value of the Company’s investment in the unconsolidated venture	$	199,338

(1)

At September 30, 2022, this amount included right-of-use assets - finance leases totaling approximately $4.9 million representing a ground lease at VA – Lubbock.

(2)

At September 30, 2022, this amount included lease liabilities - finance leases totaling approximately $5.0 million representing a ground lease at VA – Lubbock.

(3)

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


	For the three months ended September 30,				For the nine months ended September 30,
Income statement information:	2022		2021		2022		2021
Total revenue	$	7,136	$	—	$	17,799	$	—
Operating income		1,608		—		4,436		—
Net income		1,567		—		4,313		—

Company’s share of net income	$	830	$	—	$	2,286	$	—

Debt (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Summary of Borrowings

At September 30, 2022, our consolidated borrowings consisted of the following (amounts in thousands):


	Principal Outstanding			Interest	Current
Loan	September 30, 2022			Rate (1)	Maturity
Revolving credit facility:
Revolving credit facility (2)	$	177,750		L + 135 bps	July 2025 (3)
Total revolving credit facility		177,750

Term loan facilities:
2016 term loan facility		100,000		2.77% (5)	March 2024
2018 term loan facility (4)		150,000		4.01% (6)	July 2026
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,121	)
Total term loan facilities, net		248,879

Notes payable:
2017 series A senior notes		95,000		4.05%	May 2027
2017 series B senior notes		50,000		4.15%	May 2029
2017 series C senior notes		30,000		4.30%	May 2032
2019 series A senior notes		85,000		3.73%	September 2029
2019 series B senior notes		100,000		3.83%	September 2031
2019 series C senior notes		90,000		3.98%	September 2034
2021 series A senior notes		50,000		2.62%	October 2028
2021 series B senior notes		200,000		2.89%	October 2030
Total notes payable		700,000
Less: Total unamortized deferred financing fees		(4,065	)
Total notes payable, net		695,935

Mortgage notes payable:
DEA – Pleasanton		15,700		L + 150bps (7)	October 2023
VA – Golden		8,692		5.00% (7)	April 2024
MEPCOM – Jacksonville (8)		5,858		4.41% (7)	October 2025
USFS II – Albuquerque		13,879		4.46% (7)	July 2026
ICE – Charleston		13,792		4.21% (7)	January 2027
VA – Loma Linda		127,500		3.59% (7)	July 2027
CBP – Savannah		10,595		3.40% (7)	July 2033
USCIS – Kansas City		51,500		3.68% (7)	August 2024
Total mortgage notes payable		247,516
Less: Total unamortized deferred financing fees		(1,519	)
Less: Total unamortized premium/discount		1,972
Total mortgage notes payable, net		247,969

Total debt	$	1,370,533

(1)

(2)

(3)

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

(4)

Our 2018 term loan facility has undrawn capacity up to $50.0 million of which is available during a delayed draw period.

(5)

(6)

(7)

(8)

On October 27, 2022, the Company extinguished the mortgage note obligation on MEPCOM - Jacksonville in conjunction with the sale of the property. See Note 15 for additional information.

Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

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

The following table sets forth the key terms and fair values of our interest rate swap derivatives, each of which was designated as a cash flow hedge as of September 30, 2022 (amounts in thousands):


Notional Amount		Fixed Rate			Floating Rate Index	Effective Date	Expiration Date	Fair Value
$	100,000		1.41	%	One-Month LIBOR	March 29, 2017	September 29, 2023	$	2,881
$	150,000		2.71	%	One-Month LIBOR	December 13, 2018	June 19, 2023	$	1,634

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

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


Balance Sheet Line Item	As of September 30, 2022
Interest rate swaps - Asset	$	4,515
Interest rate swaps - Liability	$	—

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

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


	For the three months ended September 30,						For the nine months ended September 30,
	2022			2021			2022			2021
Unrealized gain (loss) recognized in AOCI	$	1,801		$	(160	)	$	8,046		$	324
Loss reclassified from AOCI into interest expense		(5	)		(1,340	)		(2,170	)		(3,951	)

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
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+ Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

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


	As of September 30, 2022
Balance Sheet Line Item	Level 1		Level 2		Level 3
Interest rate swaps - Asset	$	—	$	4,515	$	—
Interest rate swaps - Liability	$	—	$	—	$	—

Schedule of Fair Value Financial Assets And Liabilities Not measured At Fair Value


	As of September 30, 2022
Financial liabilities	Carrying Amount (1)		Fair Value (2)

Revolving credit facility	$	177,750	$	177,750
2016 term loan facility	$	100,000	$	100,000
2018 term loan facility	$	150,000	$	150,000
Notes payable	$	700,000	$	591,295
Mortgages payable	$	247,516	$	232,858

(1)

The carrying amount consists of principal only.

(2)

We deem the fair value measurement of the financial liability instrument a Level 3 measurement.

Equity Incentive Pan (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Restricted Shares

A summary of the status of our restricted shares as of September 30, 2022 and changes during the nine months ended September 30, 2022 is presented below:


	Restricted Shares			Restricted Shares Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2021		86,006		$	19.16
Vested		(71,168	)		18.49
Granted		29,078			18.81
Forfeited		(2,601	)		21.16
Outstanding, September 30, 2022		41,315		$	19.94

Long Term Incentive Plan

Summary of Restricted Shares

A summary of the status of our LTIP units as of September 30, 2022 and changes during the nine months ended September 30, 2022 are presented below:


	LTIP Units (1)			LTIP Units Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2021		651,238		$	21.02
Vested		(115,412	)		18.66
Granted		360,839			17.48
Forfeited		—			—
Outstanding, September 30, 2022		896,665		$	19.90

(1)

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

Summary of Grants

The following is a summary of our granted LTIP unit awards during the nine months ended September 30, 2022:

Award
 Type

Grant
 Date

Performance Period
End Date

Vest Date

Units Granted

Service

January 3, 2022

—

December 31, 2024

110,906

Operational

January 3, 2022

December 31, 2024

1

80,160

Performance

January 3, 2022

December 31, 2024

1

158,535

Service

May 11, 2022

—

2

11,238

2022 LTIP Grant

360,839

(1)

Earned units will vest on date of compensation committee determination of performance.

(2)

Units will vest on the earlier of the anniversary of the grant date or the 2023 annual stockholder meeting.

Summary of Significant Assumptions Used to Value the Total Shareholder

The following is a summary of the significant assumptions used to value the total shareholder return for performance-based LTIP units during the nine months ended September 30, 2022:


Expected volatility		27.0	%
Dividend yield		4.8	%
Risk-free interest rate		1.0	%
Expected life	3 years

Equity (Tables)

9 Months Ended

Sep. 30, 2022

Equity [Abstract]

Summary of Changes In Stockholders' Equity

The following table summarizes the changes in the Company’s stockholders’ equity for the three months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts):


	Shares			Common Stock Par Value		Additional Paid-in Capital			Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Three months ended September 30, 2022
Balance at June 30, 2022		90,816,622		$	908	$	1,621,288		$	76,561	$	(427,851	)	$	2,393		$	168,696		$	1,441,995
Stock based compensation		—			—		126			—		—			—			1,499			1,625
Dividends and distributions paid ($0.265 per share)		—			—		—			—		(24,066	)		—			(3,314	)		(27,380	)
Forfeiture of unvested restricted stock		(2,601	)		—		—			—		—			—			—			—
Redemption of common units for shares of common stock		—			—		—			—		—			—			—			—
Contribution of property for common units		—			—		—			—		—			—			—			—
Unrealized gain on interest rate swaps, net		—			—		—			—		—			1,594			212			1,806
Net income		—			—		—			642		—			—			107			749
Allocation of non-controlling interest in Operating Partnership		—			—		1,214			—		—			—			(1,214	)		—
Balance at September 30, 2022		90,814,021		$	908	$	1,622,628		$	77,203	$	(451,917	)	$	3,987		$	165,986		$	1,418,795
Three months ended September 30, 2021
Balance at June 30, 2021		83,931,290		$	839	$	1,471,928		$	47,157	$	(334,815	)	$	(8,539	)	$	157,967		$	1,334,537
Stock based compensation		—			—		216			—		—			—			1,117			1,333
Dividends and distributions paid ($0.265 per share)		—			—		—			—		(22,254	)		—			(3,075	)		(25,329	)
Grant of unvested restricted stock		11,066			—		—			—		—			—			—			—
Redemption of common units for shares of common stock		59,774			1		836			—		—			—			(837	)		—
Issuance of common stock, net		2,114,408			21		49,926			—		—			—			—			49,947
Unrealized gain on interest rate swaps, net		—			—		—			—		—			1,013			167			1,180
Net income		—			—		—			7,977		—			—			1,065			9,042
Allocation of non-controlling interest in Operating Partnership		—			—		(1,460	)		—		—			—			1,460			—
Balance at September 30, 2021		86,116,538		$	861	$	1,521,446		$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710

The following table summarizes the changes in the Company’s stockholders’ equity for the nine months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts):


	Shares		Common Stock Par Value		Additional Paid-in Capital		Retained Earnings		Cumulative Dividends			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest in Operating Partnership			Total Equity
Nine months ended September 30, 2022
Balance at December 31, 2021		90,147,868	$	901	$	1,604,712	$	62,023	$	(379,895	)	$	(5,072	)	$	158,912		$	1,441,581
Stock based compensation		—		—		478		—		—			—			4,413			4,891
Dividends and distributions paid ($0.795 per share)		—		—		—		—		(72,022	)		—			(9,773	)		(81,795	)
Grant of unvested restricted stock, net		26,477		—		—		—		—			—			—			—
Redemption of common units for shares of common stock		204,751		2		2,909		—		—			—			(2,911	)		—
Issuance of common stock, net		434,925		5		9,394		—		—			—			—			9,399
Contribution of property for common units		—		—		—		—		—			—			17,361			17,361
Unrealized gain on interest rate swaps, net		—		—		—		—		—			9,059			1,157			10,216
Net income		—		—		—		15,180		—			—			1,962			17,142
Allocation of non-controlling interest in Operating Partnership		—		—		5,135		—		—			—			(5,135	)		—
Balance at September 30, 2022		90,814,021	$	908	$	1,622,628	$	77,203	$	(451,917	)	$	3,987		$	165,986		$	1,418,795
Nine months ended September 30, 2021
Balance at December 31, 2020		82,106,256	$	821	$	1,424,787	$	31,965	$	(291,652	)	$	(11,351	)	$	145,400		$	1,299,970
Stock based compensation		—		—		600		—		—			—			3,100			3,700
Dividends and distributions paid ($0.785 per share)		—		—		—		—		(65,417	)		—			(8,689	)		(74,106	)
Grant of unvested restricted stock, net		35,865		—		—		—		—			—			—			—
Redemption of common units for shares of common stock		303,185		3		4,258		—		—			—			(4,261	)		—
Issuance of common stock, net		3,671,232		37		89,868		—		—			—			—			89,905
Contribution of property for common units		—		—		—		—		—			—			20,790			20,790
Unrealized loss on interest rate swaps, net		—		—		—		—		—			3,825			450			4,275
Net income		—		—		—		23,169		—			—			3,007			26,176
Allocation of non-controlling interest in Operating Partnership		—		—		1,933		—		—			—			(1,933	)		—
Balance at September 30, 2021		86,116,538	$	861	$	1,521,446	$	55,134	$	(357,069	)	$	(7,526	)	$	157,864		$	1,370,710

Summary of Dividends Declared

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


Quarter	Declaration Date	Record Date	Payment Date	Dividend (1)
Q1 2022	April 27, 2022	May 13, 2022	May 25, 2022	$	0.265
Q2 2022	July 27, 2022	August 11, 2022	August 23, 2022	$	0.265
Q3 2022	October 26, 2022	November 11, 2022	November 23, 2022	$	0.265

(1)

Schedule of Information with Respect to ATM Program

The following table sets forth certain information with respect to issuances under the 2019 ATM Program during the nine months ended September 30, 2022 (amounts in thousands except share amounts):


	2019 ATM Program
For the three months ended	Number of Shares Issued(1)		Net Proceeds(1)
March 31, 2022		434,925	$	9,409
June 30, 2022		—		—
September 30, 2022		—		—
Total		434,925	$	9,409

(1)

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Summary of Basic and Diluted Earnings Per Common Share


	For the three months ended September 30,						For the nine months ended September 30,
	2022			2021			2022			2021
Numerator
Net income	$	749		$	9,042		$	17,142		$	26,176
Less: 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
Less: Dividends on participating securities		(137	)		(120	)		(410	)		(350	)
Net income available to common stockholders	$	505		$	7,857		$	14,770		$	22,819
Denominator for basic EPS		90,772,706			83,961,693			90,560,471			83,306,654
Dilutive effect of share-based compensation awards		11,455			49,200			20,646			50,299
Dilutive effect of LTIP units (1)		335,211			425,317			304,991			384,694
Dilutive effect of shares issuable under forward sale agreements (2)		—			36,047			—			33,105
Denominator for diluted EPS		91,119,372			84,472,257			90,886,108			83,774,752
Basic EPS	$	0.01		$	0.09		$	0.16		$	0.27
Diluted EPS	$	0.01		$	0.09		$	0.16		$	0.27

(1)

(2)

Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

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

The following table summarizes the maturity of fixed lease payments under the Company’s leases as of September 30, 2022 (amounts in thousands):


	Payments due by period
	Total		2022 (1)		2023		2024		2025		2026		Thereafter
Fixed lease payments	$	2,368,977		62,886		243,536		223,796		212,728		203,743		1,422,288

(1)

Represents the three months ending December 31, 2022.

Summary of Composition of Lease Revenue Recognized Between Fixed and Variable Components

The table below sets forth our composition of lease revenue recognized between fixed and variable components (amounts in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
Fixed	$	68,033	$	62,359	$	199,411	$	183,529
Variable		4,610		5,080		14,827		14,184
Rental income		72,643		67,439		214,238		197,713

Schedule of Quantitative Information for Company's Operating Leases

The following table provides quantitative information for the Company’s commenced operating leases for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
	2022		2021		2022		2021
Cash flows from operating lease costs	$	121	$	119	$	324	$	387

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

In addition, the maturity of fixed lease payments under the Company’s commenced corporate office leases as of September 30, 2022 is summarized in the table below (amounts in thousands):


Corporate office leases	Payments due by period
2022 (1)		54
2023		277
2024		446
2025		456
2026		309
Thereafter		—
Total future minimum lease payments	$	1,542
Imputed interest		(124	)
Total	$	1,418

(1)

Represents the three months ended December 31, 2022.

Revenue (Tables)

9 Months Ended

Sep. 30, 2022

Revenue From Contract With Customer [Abstract]

Summary of Revenue from Tenant Construction Projects Disaggregated by Tenant Agency


	For the three months ended September 30,				For the nine months ended September 30,
Tenant	2022		2021		2022		2021

Department of Veteran Affairs (“VA”)	$	1,271	$	352	$	1,573	$	1,460
Federal Bureau of Investigation (“FBI”)		212		1,141		1,057		1,791
U.S. Joint Staff Command (“JSC”)		69		34		525		60
Food and Drug Administration (“FDA”)		27		58		231		82
U.S. Citizenship and Immigration Services (“USCIS”)		87		—		197		108
Customs and Border Protection (“CBP”)		—		—		155		—
National Park Services (“NPS”)		—		7		100		7
Federal Emergency Management Agency (“FEMA”)		96		—		96		15
Occupational Safety and Health Administration (“OSHA”)		4		—		72		—
Drug Enforcement Agency (“DEA”)		—		—		40		—
Internal Revenue Service (“IRS”)		—		—		33		127
U.S. Coast Guard (“USCG”)		—		7		33		7
Patent and Trademark Office (“PTO”)		—		—		14		—
The Judiciary of the U.S. Government (“JUD”)		10		7		14		11
Federal Aviation Administration (“FAA”)		14		—		14		—
General Services Administration - Other		—		—		6		25
Health Resources and Services Administration (“HRSA”)		—		—		4		3
National Weather Service (“NWS”)		2		—		2		—
Immigration and Customs Enforcement (“ICE”)		—		17		—		17
Department of Energy (“DOE”)		—		—		—		95
Environmental Protection Agency (“EPA”)		—		—		—		204
Department of Transportation (“DOT”)		—		9		—		49
Military Entrance Processing Command (“MEPCOM”)		—		—		—		18
Bureau of the Fiscal Service (“BFS”)		—		7		—		11
	$	1,792	$	1,639	$	4,166	$	4,090

Organization and Basis of Presentation - Additional Information (Detail) ft² in Millions	9 Months Ended
	Sep. 30, 2022 ft² Property
Easterly Government Properties LP [Member]
Organization And Significant Accounting Policies [Line Items]
Outstanding common units of aggregate limited partnership interest owned percentage	88.30%
Joint Venture [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	7
Wholly Owned Operating Properties [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	88
Leased percentage of operating properties	99.00%
Aggregate area of land \| ft²	9.1
Wholly Owned Operating Properties [Member] \| Government [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	94
Wholly Owned Operating Properties [Member] \| Private Tenants [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	1
Wholly Owned Properties Under Development [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	1
Aggregate area of land \| ft²	0.2

Real Estate and Intangibles - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) ft² Property	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) ft² Property	Sep. 30, 2021 USD ($)
Real Estate Properties [Line Items]
Revenues	$ 75,041	$ 69,608	$ 220,100	$ 203,223
Net income available to Easterly Government Properties, Inc.	642	7,977	15,180	23,169
Acquisition-related expenses	275	$ 518	939	$ 1,488
Impairment loss	5,540		5,540
ICE - Otay [Member]
Real Estate Properties [Line Items]
Impairment loss	$ 5,500		$ 5,500
CALIFORNIA
Real Estate Properties [Line Items]
Number of properties \| Property	17		17
CALIFORNIA \| ICE - Otay [Member]
Real Estate Properties [Line Items]
Area acquired \| ft²	47,919		47,919
Operating Properties Acquired [Member]
Real Estate Properties [Line Items]
Number of properties \| Property	0		0
Weighted average amortization period			15 years 6 months
Revenues			$ 3,000
Net income available to Easterly Government Properties, Inc.			$ 1,000
Operating Properties Acquired [Member] \| FBI Tampa, NARA and JUD [Member]
Real Estate Properties [Line Items]
Number of properties \| Property	3		3
Purchase price	$ 108,100		$ 108,100

Real Estate and Intangibles - Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Operating Properties Acquired [Member] - FBI Tampa and NARA [Member] $ in Thousands	Sep. 30, 2022 USD ($)
Business Acquisition [Line Items]
Total real estate	$ 98,584
Total intangible assets	12,380
Total intangible liabilities	(2,858)
Purchase price	108,106
Real Estate Investment
Business Acquisition [Line Items]
Land	9,795
Building	83,403
Acquired tenant improvements	5,386
Leases, Acquired-in-Place
Business Acquisition [Line Items]
Total intangible assets	7,927
Acquired Leasing Commissions
Business Acquisition [Line Items]
Total intangible assets	4,453
Below Market Leases Assumed
Business Acquisition [Line Items]
Total intangible liabilities	$ (2,858)

Real Estate and Intangibles - Schedule of Real Estate and Intangibles (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Real estate properties, net
Land	$ 231,599
Building and improvements	2,426,241
Acquired tenant improvements	95,403
Construction in progress	39,338
Accumulated depreciation	(328,620)
Total Real estate properties, net	2,463,961	$ 2,399,188
Intangible assets, net
Accumulated amortization	(215,214)
Total Intangible assets, net	178,327
Intangible liabilities, net
Intangible Liabilities, Below market leases	(76,745)
Intangible Liabilities, Accumulated amortization	57,606
Total Intangible liabilities, net	(19,139)
Leases, Acquired-in-Place
Intangible assets, net
Above market leases	293,642
Acquired Leasing Commissions
Intangible assets, net
Above market leases	75,964
Above Market Leases [Member]
Intangible assets, net
Above market leases	17,541
Payment in Lieu of Taxes [Member]
Intangible assets, net
Above market leases	$ 6,394

Real Estate and Intangibles - Summary of Scheduled Amortization Market Lease Intangibles (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Acquired Above-Market Lease Intangibles
2022	$ 349
2023	1,390
2024	1,341
2025	1,286
2026	1,217
Acquired Below-Market Lease Intangibles
2022	(1,117)
2023	(4,307)
2024	(3,160)
2025	(2,454)
2026	$ (2,216)

Investments in Unconsolidated Real Estate Venture - Summary of Investments in JV (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Investment in unconsolidated real estate venture	$ 199,338	$ 131,840
JV [Member]
Related Party Transaction [Line Items]
Investment in unconsolidated real estate venture	$ 198,963
MedBase Venture [Member] \| JV [Member]
Related Party Transaction [Line Items]
Effective Ownership Interest	53.00%
Investment in unconsolidated real estate venture	$ 199,338

Investments in Unconsolidated Real Estate Venture - Additional Information (Details) - JV [Member]		3 Months Ended	9 Months Ended
	Jan. 20, 2022 USD ($) shares	Sep. 30, 2022 USD ($) Property	Sep. 30, 2022 USD ($) Property	Oct. 13, 2021 ft² Property
Unconsolidated Real Estate Venture [Line Items]
Asset management service revenue		$ 400,000	$ 900,000
Series A Preferred Units [Member]
Unconsolidated Real Estate Venture [Line Items]
Number of preferred units issued \| shares	125
Net proceeds from issuance of preferred units	$ 100,000
VA Birmingham, VA Marietta and VA Columbus
Unconsolidated Real Estate Venture [Line Items]
Number of properties \| Property		3	3
Purchase price		$ 135.3	$ 135.3
VA Portfolio [Member]
Unconsolidated Real Estate Venture [Line Items]
Number of properties \| Property		7	7	10
Area of properties acquired \| ft²				1,214,165
Global Investor [Member]
Unconsolidated Real Estate Venture [Line Items]
Effective Ownership Interest				53.00%

Investments in Unconsolidated Real Estate Venture - Summary of Financial Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2022

Sep. 30, 2021

Sep. 30, 2022

Sep. 30, 2021

Dec. 31, 2021

Balance sheet information:

Total assets

$ 2,961,650

$ 2,826,112

Total liabilities (2)

1,542,855

1,384,531

Total equity

1,252,809

1,282,669

Total liabilities and equity

2,961,650

2,826,112

Investment in unconsolidated real estate venture

199,338

$ 131,840

Income statement information:

Revenues

75,041

$ 69,608

220,100

$ 203,223

Net income available to Easterly Government Properties, Inc.

642

$ 7,977

15,180

$ 23,169

JV [Member]

Balance sheet information:

Real estate, net (1)

^[1]

313,768

Other assets, net

71,116

Total assets

384,884

Total liabilities (2)

^[2]

9,407

Total equity

375,477

Total liabilities and equity

384,884

Investment in unconsolidated real estate venture

198,963

Basis differential (3)

^[3]

375

Carrying value of the Company’s investment in the unconsolidated venture

199,338

Income statement information:

Revenues

7,136

17,799

Operating income

1,608

4,436

Net income available to Easterly Government Properties, Inc.

1,567

4,313

Company’s share of net income

$ 830

$ 2,286

[1]	At September 30, 2022, this amount included right-of-use assets - finance leases totaling approximately $4.9 million representing a ground lease at VA – Lubbock.
[2]	At September 30, 2022, this amount included lease liabilities - finance leases totaling approximately $5.0 million representing a ground lease at VA – Lubbock.
[3]	This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level.

Investments in Unconsolidated Real Estate Venture - Summary of Financial Information (Parenthetical) (Details) - JV [Member] $ in Millions	Sep. 30, 2022 USD ($)
Related Party Transaction [Line Items]
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid expenses and other assets
Finance lease, right-of-use asset	$ 4.9
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accounts payable, accrued expenses and other liabilities
Finance lease, liability	$ 5.0

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

9 Months Ended

Sep. 30, 2022

Dec. 31, 2021

Debt - Additional Information (Detail) - USD ($)		9 Months Ended
Debt - Additional Information (Detail) - USD ($)	Jul. 22, 2022	Sep. 30, 2022
Debt Instrument [Line Items]
Net carrying value of real estate collateralizing the mortgage		$ 373,600,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Amount available under revolving credit facility		272,100,000
Revolving Credit Facility [Member] \| 2018 Term Loan Facility [Member]
Debt Instrument [Line Items]
Amount available under revolving credit facility		$ 50,000,000.0
Initial maturity date		Jul. 22, 2022
Revolving Credit Facility [Member] \| 2018 Term Loan Facility [Member] \| First Amendment [Member]
Debt Instrument [Line Items]
Extended maturity date	Jul. 24, 2023

Derivative and Hedging Activities - Schedule of Key Terms and Fair Values of Our Interest Rate Swap Derivatives (Detail)	9 Months Ended
	Sep. 30, 2022 USD ($)
Interest Swap Rate at 1.41 % Fixed Rate[Member]
Derivative [Line Items]
Aggregate notional value of interest rate swaps	$ 100,000,000
Forward swaps interest rate	1.41%
Floating Rate Index	One-Month LIBOR
Forward swaps effective date	Mar. 29, 2017
Expiration Date	Sep. 29, 2023
Fair Value	$ 2,881,000
Interest Swap Rate at 2.71 % Fixed Rate[Member]
Derivative [Line Items]
Aggregate notional value of interest rate swaps	$ 150,000,000
Forward swaps interest rate	2.71%
Floating Rate Index	One-Month LIBOR
Forward swaps effective date	Dec. 13, 2018
Expiration Date	Jun. 19, 2023
Fair Value	$ 1,634,000

Derivative and Hedging Activities - Schedule of Fair Value of Our Interest Rate Derivatives as Well as Their Classification on Our Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Interest rate swaps - Asset	$ 4,515
Interest rate swaps - Liability		$ (5,700)

Derivative and Hedging Activities - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2022 USD ($)
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Estimates reclassified from accumulated other comprehensive income (loss) decrease to interest expense over the next 12 months	$ (4,500,000)
Credit risk related contingent features derivatives, net fair value of derivatives in liability position	$ 0

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swaps - Asset	$ 4,515
Interest rate swaps - Liability		$ (5,700)
Fair Value, Recurring \| Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swaps - Asset	$ 4,515

Equity Incentive Plan - Summary of Grants (Details)	9 Months Ended
Equity Incentive Plan - Summary of Grants (Details)	Sep. 30, 2022 shares
Services \| January 3, 2022
Vest Date	Dec. 31, 2024
Units Granted	110,906
Services \| May 11, 2022
Units Granted	11,238
Operational \| January 3, 2022
Performance Period End Date	Dec. 31, 2024
Units Granted	80,160
Performance Shares \| January 3, 2022
Performance Period End Date	Dec. 31, 2024
Units Granted	158,535
Long Term Incentive Plan
Units Granted	360,839

Equity Incentive Plan - Summary of Significant Assumptions Used to Value the Total Shareholder (Details) - Long Term Incentive Plan	9 Months Ended
	Sep. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility	27.00%
Dividend yield	4.80%
Risk-free interest rate	1.00%
Expected life	3 years

Equity - Summary of Dividends Declared (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2022
Performance Based LTIP Units[Member]
Dividends Payable [Line Items]
Operating partnership dividend rate percentage	10.00%
Service Based LTIP Units[Member]
Dividends Payable [Line Items]
Operating partnership dividend rate percentage	100.00%

Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	May 10, 2022	Dec. 28, 2021	Aug. 11, 2021	Jun. 22, 2021	Dec. 20, 2019	Sep. 30, 2022	Apr. 28, 2022	Dec. 31, 2021
Stockholders Equity Note Disclosure [Line Items]
Common Stock, shares issued						90,814,021		90,147,868
Underwriters option to purchase additional shares			6,300,000
Initial forward price			$ 21.64
Contribution of property for common units, partial consideration	827,791
Board of Directors [Member] \| Share Repurchase Program [Member]
Stockholders Equity Note Disclosure [Line Items]
Repurchase of common stock,percentage							5.00%
Board of Directors [Member] \| Share Repurchase Program [Member] \| Maximum [Member]
Stockholders Equity Note Disclosure [Line Items]
Repurchase of common stock,shares						0	4,538,994
2019 ATM Program [Member]
Stockholders Equity Note Disclosure [Line Items]
Aggregate offering price of shares of common stock that the Company may issue and sell					$ 300.0
Gross sale of common stock available for grant						$ 87.4
2021 ATM Programs [Member]
Stockholders Equity Note Disclosure [Line Items]
Aggregate offering price of shares of common stock that the Company may issue and sell				$ 300.0
Number of Shares Sold						0
Gross sale of common stock available for grant						$ 300.0
Forward Sales Agreement
Stockholders Equity Note Disclosure [Line Items]
Common Stock, shares issued		3,991,000	6,300,000			0
Proceeds from issuance initial public offering		$ 85.0

Equity - Schedule of Information with Respect to ATM Program (Parenthetical) (Detail) - Forward Sales Agreement - 2019 ATM Program [Member] $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Subsidiary Sale Of Stock [Line Items]
Number of unsettled common stock shares sold \| shares	1,950,000
Net proceeds from unsettled common stock shares sold \| $	$ 42.6
Weighted average price per share \| $ / shares	$ 21.82

Leases - Additional Information (Detail) $ in Millions	9 Months Ended
Leases - Additional Information (Detail) $ in Millions	Sep. 30, 2022 USD ($)
Lessee Lease Description [Line Items]
Average age of property	18 years
Right-of-use asset	$ 1.3
Operating lease liability	$ 1.4
CALIFORNIA \| San Diego \| Lease
Lessee Lease Description [Line Items]
Operating lease term of contract	7 years
Estimated lease commencement date	Oct. 26, 2022

Revenue - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
Revenue - Additional Information (Detail) - USD ($)	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Tenant accounts receivable	$ 60,250,000		$ 60,250,000		$ 58,733,000
ASU 2014-09 [Member]
Disaggregation Of Revenue [Line Items]
Accounts receivable related to tenant construction projects	5,300,000		5,300,000		5,000,000.0
Contract assets	0		0		0
Contract liabilities	0		0		0
ASU 2014-09 [Member] \| COVID-19 [Member]
Disaggregation Of Revenue [Line Items]
Income recognized	100,000	$ 300,000	100,000	$ 1,000,000.0
Tenant accounts receivable					100,000
ASU 2014-09 [Member] \| COVID-19 [Member] \| Maximum [Member]
Disaggregation Of Revenue [Line Items]
Tenant accounts receivable	100,000		100,000
ASU 2014-09 [Member] \| Various GSA - Buffalo Property [Member] \| Parking Garage [Member]
Disaggregation Of Revenue [Line Items]
Income recognized	100,000	$ 100,000	200,000	$ 200,000
Tenant accounts receivable	$ 100,000		$ 100,000		$ 100,000

Concentrations Risk - Additional Information (Detail)	9 Months Ended
Concentrations Risk - Additional Information (Detail)	Sep. 30, 2022 Property
Wholly Owned Properties [Member]
Concentration Risk [Line Items]
Number of properties	95
CALIFORNIA
Concentration Risk [Line Items]
Number of properties	17
Lease Income [Member] \| Customer Concentration Risk [Member] \| CALIFORNIA
Concentration Risk [Line Items]
Percentage of concentrations risk	19.70%
Rentable Square Feet [Member] \| Customer Concentration Risk [Member] \| CALIFORNIA
Concentration Risk [Line Items]
Percentage of concentrations risk	14.70%
U.S. Government [Member] \| Lease Income [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	97.90%
Non Governmental Tenants [Member] \| Lease Income [Member] \| Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	2.10%

Subsequent Events - Additional Information (Detail)			9 Months Ended
Subsequent Events - Additional Information (Detail)	Oct. 27, 2022 USD ($) Property	Oct. 12, 2022 USD ($) ft² Property	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Subsequent Event [Line Items]
Mortgage note obligation			$ 3,942,000	$ 2,948,000
Second Amended Purchase and Sale Agreement [Member]
Subsequent Event [Line Items]
Carrying value of disposition portfolio properties			$ 187,100,000
Subsequent Event [Member] \| Second Amended Purchase and Sale Agreement [Member]
Subsequent Event [Line Items]
Area acquired \| ft²		668,000
Number of properties \| Property		10
Purchase price		$ 205,300,000
Non-refundable deposit from third party		$ 3.5
Number of real estate properties sold \| Property	9
Proceeds from sale of disposition portfolio properties	$ 5,800,000
Subsequent Event [Member] \| Second Amended Purchase and Sale Agreement [Member] \| MEPCOM Jacksonville [Member]
Subsequent Event [Line Items]
Mortgage note obligation	$ 5,800,000