SEC Filing | Easterly Government Properties

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8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

August 8, 2023

Easterly Government Properties, Inc.

(Exact name of Registrant as Specified in Its Charter)


Maryland	001-36834	47-2047728
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2001 K Street NW, Suite 775 North, Washington, D.C.		20006
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (202) 595-9500

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	DEA	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 8, 2023, we issued a press release announcing our results of operations for the second quarter ended June 30, 2023. A copy of this press release as well as a copy of our supplemental information package are available on our website and are attached hereto as Exhibits 99.1 and 99.2 and incorporated herein by reference. The information in this Item 2.02 as well as the attached Exhibits 99.1 and 99.2 are being furnished and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

We will host a webcast and conference call at 11:00a.m. Eastern Time August 8, 2023, to review our second quarter 2023 performance, discuss recent events and conduct a question-and-answer session. A live webcast will be available in the Investor Relations section of our website. Please note that the full text of the press release and supplemental information package are available through our website at ir.easterlyreit.com. The information contained on our website is not incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:


Exhibit Number	Description
99.1	Press Release dated August 8, 2023.
99.2	Easterly Government Properties, Inc. Supplemental Information Package for the quarter ended June 30, 2023.
104	Cover Page Interactive Data File (embedded within the inline XBRL document.)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


EASTERLY GOVERNMENT PROPERTIES, INC.

By:		/s/ William C. Trimble, III
Name:		William C. Trimble, III
Title:		Chief Executive Officer and President

Date: August 8, 2023

EX-99.1

Exhibit 99.1

EASTERLY GOVERNMENT PROPERTIES

REPORTS SECOND QUARTER 2023 RESULTS

WASHINGTON, D.C. – August 8, 2023 – Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust (“REIT”) focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, today announced its results of operations for the quarter ended June 30, 2023.

Highlights for the Quarter Ended June 30, 2023:

•

Net income of $5.8 million, or $0.05 per share on a fully diluted basis

•

Core FFO of $30.3 million, or $0.29 per share on a fully diluted basis

•

Recognized as a 2022 Premier Member by the U.S. Environmental Protection Agency’s ENERGY STAR Certification Nation

•

Named one of the 2023 Best Places to Work in the Greater Washington region by the Washington Business Journal

•

Expects to receive, as of the date of this release, aggregate net proceeds of approximately $36.7 million from the sale of 1,700,000 shares of the Company’s common stock that have not yet been settled under the Company's $300.0 million ATM Program launched in December 2019 (the “December 2019 ATM Program”), assuming these forward sales transactions are physically settled in full using a net weighted average combined initial forward sales price of $21.61 per share

“We are seeing signs of a thawing acquisition market, and we believe there will be opportunities to transact in the second half of 2023,” said William C. Trimble, III, Easterly's Chief Executive Officer. “We intend to resume our external growth strategy and expand the portfolio through the addition of creditworthy government leases with long durations.”

Financial Results for the Six Months Ended June 30, 2023:

Net income of $10.2 million, or $0.10 per share on a fully diluted basis

Core FFO of $59.8 million, or $0.57 per share on a fully diluted basis

Portfolio Operations

As of June 30, 2023, the Company or its joint venture (the “JV”) owned 86 operating properties in the United States encompassing approximately 8.6 million leased square feet, including 85 operating properties that were leased primarily to U.S. Government tenant agencies and one operating property that is entirely leased to a private tenant. In addition, the Company wholly owned one property under re-development that the Company expects will encompass approximately 0.2 million rentable square feet upon completion. The re-development project, located in Atlanta, Georgia, is currently in design and, once complete, a 20-year lease with the U.S. General Services Administration (GSA) is expected to commence for the beneficial use of the U.S. Food and Drug Administration (FDA). As of June 30, 2023, the portfolio had a weighted average age of 14.4 years, based upon the date properties were built or renovated-to-suit, and had a weighted average remaining lease term of 10.3 years.

Balance Sheet and Capital Markets Activity

As of June 30, 2023, the Company had total indebtedness of approximately $1.2 billion comprised of $53.0 million outstanding on its revolving credit facility, $100.0 million outstanding on its 2016 term loan facility, $150.0 million outstanding on its 2018 term loan facility, $700.0 million of senior unsecured notes, and $222.8 million of mortgage debt (excluding unamortized premiums and discounts and deferred financing fees). At June 30, 2023, Easterly’s outstanding debt had a weighted average maturity of 5.2 years and a weighted average interest rate of 3.8%. As of June 30, 2023, Easterly’s Net Debt to total enterprise value was 44.2% and its Adjusted Net Debt to annualized quarterly EBITDA ratio was 7.1x.

As of the date of this release, the Company expects to receive aggregate net proceeds of approximately $36.7 million from the sale of 1,700,000 shares of the Company’s common stock that have not yet been settled under the December 2019 ATM Program, assuming these forward sales transactions are physically settled in full using a net weighted average combined initial forward sales price of $21.61 per share.

Dividend

On August 2, 2023, the Board of Directors of Easterly approved a cash dividend for the second quarter of 2023 in the amount of $0.265 per common share. The dividend will be payable August 29, 2023 to shareholders of record on August 17, 2023.

Subsequent Events

On July 20, 2023, Easterly exercised the $50.0 million delayed draw option on the Company's 2018 term loan facility, increasing the Company's term loan commitments from $250.0 million to $300.0 million. Easterly used these funds, in addition to cash on hand, to repay the outstanding amounts under its revolving credit facility, extinguishing the remainder of the Company's current floating rate indebtedness.

Guidance

This guidance is forward-looking and reflects management’s view of current and future market conditions. The Company’s actual results may differ materially from this guidance.

Outlook for the 12 Months Ending December 31, 2023

The Company is raising the low end of its full-year 2023 Core FFO guidance per share on a fully diluted basis guidance to a range of $1.13 - $1.15.


	Low		High
Net income (loss) per share – fully diluted basis	$	0.20		0.22
Plus: Company’s share of real estate depreciation and amortization	$	0.92		0.92
FFO per share – fully diluted basis	$	1.12		1.14
Plus: Company’s share of depreciation of non-real estate assets	$	0.01		0.01
Core FFO per share – fully diluted basis	$	1.13		1.15

This guidance assumes (i) the closing of VA - Corpus Christi through the JV at the Company’s pro rata share of approximately $21 million, (ii) approximately $50 million of wholly owned acquisitions, and (ii) up to $15 million of gross development-related investment during 2023.

Non-GAAP Supplemental Financial Measures

This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this press release and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. A reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release following the consolidated financial statements. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the Securities and Exchange Commission from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.

Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current Nareit definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items, nonrecurring expenditures and the unconsolidated real estate venture’s allocated share of these adjustments. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.

Core Funds from Operations (Core FFO) adjusts FFO to present an alternative measure of the Company's operating performance, which, when applicable, excludes items which it believes are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), catastrophic event charges, depreciation of non-real estate assets, and the unconsolidated real estate venture's allocated share of these adjustments. In future periods, the Company may also exclude other items from Core FFO that it believes may help investors compare its results. The Company believes Core FFO more accurately reflects the ongoing operational and financial performance of the Company's core business.

EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.

Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO includes the Company’s share of FFO generated by unconsolidated affiliates. FFO is a widely recognized measure of REIT

performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.

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

Net Debt and Adjusted Net Debt. Net Debt represents the Company's consolidated debt and its share of unconsolidated debt adjusted to exclude its share of unamortized premiums and discounts and deferred financing fees, less its share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 25 of the Company’s Q2 2023 Supplemental Information Package for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs.

Other Definitions

Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP.

Conference Call Information

The Company will host a webcast and conference call at 11:00 am Eastern time on August 8, 2023 to review the second quarter 2023 performance, discuss recent events and conduct a question-and-answer session. A live webcast will be available in the Investor Relations section of the Company’s website. Shortly after the webcast, a replay of the webcast will be available on the Investor Relations section of the Company's website for up to twelve months. Please note that the full text of the press release and supplemental information package are also available through the Company’s website at ir.easterlyreit.com.

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

Contact:

Easterly Government Properties, Inc.

Lindsay S. Winterhalter

Supervisory Vice President, Investor Relations & Operations

202-596-3947

ir@easterlyreit.com

Forward Looking Statements

We make statements in this press release that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions and include our guidance with respect to Net income (loss) and Core FFO per share on a fully diluted basis. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this press release for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues, including credit risk and risk that the U.S. Government reduces its spending on real estate or that it changes its preference away from leased properties; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; the loss of key personnel; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness; risks associated with derivatives or hedging activity; risks associated with mortgage debt or unsecured financing or the unavailability thereof, which could make it difficult to finance or refinance properties

and could subject us to foreclosure; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and our financial condition and results of operations; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (SEC) on February 28, 2023, and under the heading “Risk Factors” in our other public filings. In addition, our anticipated qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise.

Balance Sheet

(Unaudited, in thousands, except share amounts)


	June 30, 2023			December 31, 2022
Assets
Real estate properties, net	$	2,270,435		$	2,285,308
Cash and cash equivalents		9,816			7,578
Restricted cash		11,970			9,696
Tenant accounts receivable		60,862			58,835
Investment in unconsolidated real estate venture		268,594			271,644
Intangible assets, net		145,837			157,282
Interest rate swaps		5,114			4,020
Prepaid expenses and other assets		35,335			35,022
Total assets	$	2,807,963		$	2,829,385

Liabilities
Revolving credit facility		53,000			65,500
Term loan facilities, net		249,179			248,972
Notes payable, net		696,290			696,052
Mortgage notes payable, net		222,711			240,847
Intangible liabilities, net		14,421			16,387
Deferred revenue		85,932			83,309
Accounts payable, accrued expenses and other liabilities		64,363			67,336
Total liabilities		1,385,896			1,418,403

Equity
Common stock, par value $0.01, 200,000,000 shares authorized, 93,415,706 and 90,814,021 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		934			908
Additional paid-in capital		1,673,399			1,622,913
Retained earnings		102,491			93,497
Cumulative dividends		(524,806	)		(475,983	)
Accumulated other comprehensive income (loss)		4,518			3,546
Total stockholders' equity		1,256,536			1,244,881
Non-controlling interest in Operating Partnership		165,531			166,101
Total equity		1,422,067			1,410,982
Total liabilities and equity	$	2,807,963		$	2,829,385

Income Statement

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


	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Revenues
Rental income	$	67,758		$	71,156		$	135,906		$	141,595
Tenant reimbursements		2,500			916			4,575			2,060
Asset management income		517			317			1,034			565
Other income		598			368			1,078			839
Total revenues		71,373			72,757			142,593			145,059

Expenses
Property operating		17,629			15,551			35,517			31,009
Real estate taxes		7,619			7,851			15,087			15,677
Depreciation and amortization		22,619			24,343			45,700			48,502
Acquisition costs		444			302			905			664
Corporate general and administrative		7,024			5,966			14,319			11,949
Total expenses		55,335			54,013			111,528			107,801

Other income (expense)
Income from unconsolidated real estate venture		1,418			825			2,820			1,456
Interest expense, net		(11,678	)		(11,439	)		(23,693	)		(22,321	)
Net income		5,778			8,130			10,192			16,393

Non-controlling interest in Operating Partnership		(675	)		(933	)		(1,198	)		(1,855	)
Net income available to Easterly Government
Properties, Inc.	$	5,103		$	7,197		$	8,994		$	14,538

Net income available to Easterly Government
Properties, Inc. per share:
Basic	$	0.05		$	0.08		$	0.09		$	0.16
Diluted	$	0.05		$	0.08		$	0.09		$	0.16

Weighted-average common shares outstanding:
Basic		93,358,851			90,751,351			92,235,346			90,452,594
Diluted		93,641,382			91,083,980			92,508,651			90,799,647

Net income, per share - fully diluted basis	$	0.05		$	0.08		$	0.10		$	0.16

Weighted average common shares outstanding -
fully diluted basis		105,707,282			102,545,589			104,569,748			102,044,603

EBITDA

(Unaudited, in thousands)


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income	$	5,778	$	8,130	$	10,192	$	16,393
Depreciation and amortization		22,619		24,343		45,700		48,502
Interest expense		11,678		11,439		23,693		22,321
Tax expense		352		174		520		225
Unconsolidated real estate venture allocated share of above adjustments		1,942		1,181		3,882		2,109
EBITDA	$	42,369	$	45,267	$	83,987	$	89,550

FFO and CAD

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


	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022

Net income	$	5,778		$	8,130		$	10,192		$	16,393
Depreciation of real estate assets		22,368			24,096			45,199			48,008
Unconsolidated real estate venture allocated share of above adjustments		1,875			1,127			3,750			2,005
FFO	$	30,021		$	33,353		$	59,141		$	66,406
Adjustments to FFO:
Loss on extinguishment of debt	$	-		$	-		$	14		$	-
Natural disaster event expense, net of recovery		(22	)		4			78			9
Depreciation of non-real estate assets		251			247			501			494
Unconsolidated real estate venture allocated share of above adjustments		17			16			33			32
Core FFO	$	30,267		$	33,620		$	59,767		$	66,941
Adjustments to Core FFO:
Acquisition costs		444			302			905			664
Straight-line rent and other non-cash adjustments		(902	)		451			(1,365	)		(531	)
Amortization of above-/below-market leases		(676	)		(743	)		(1,376	)		(1,604	)
Amortization of deferred revenue		(1,622	)		(1,443	)		(3,106	)		(2,841	)
Non-cash interest expense		244			235			488			460
Non-cash compensation		1,299			1,637			2,967			3,266
Natural disaster event expense, net of recovery		22			(4	)		(78	)		(9	)
Unconsolidated real estate venture allocated share of above adjustments		43			(394	)		(70	)		(709	)
FFO, as Adjusted	$	29,119		$	33,661		$	58,132		$	65,637

FFO, per share - fully diluted basis	$	0.28		$	0.33		$	0.57		$	0.65
Core FFO, per share - fully diluted basis	$	0.29		$	0.33		$	0.57		$	0.66
FFO, as Adjusted, per share - fully diluted basis	$	0.28		$	0.33		$	0.56		$	0.64

FFO, as Adjusted	$	29,119		$	33,661		$	58,132		$	65,637
Acquisition costs		(444	)		(302	)		(905	)		(664	)
Principal amortization		(1,068	)		(1,328	)		(2,126	)		(2,628	)
Maintenance capital expenditures		(2,329	)		(1,972	)		(5,069	)		(2,906	)
Contractual tenant improvements		(712	)		(511	)		(1,013	)		(1,128	)
Unconsolidated real estate venture allocated share of above adjustments		(4	)		-			(4	)		-
Cash Available for Distribution (CAD)	$	24,562		$	29,548		$	49,015		$	58,311

Weighted average common shares outstanding - fully diluted basis		105,707,282			102,545,589			104,569,748			102,044,603

Net Debt and Adjusted Net Debt

(Unaudited, in thousands)


	June 30, 2023
Total Debt(1)	$	1,225,786
Less: Cash and cash equivalents		(10,702	)
Net Debt	$	1,215,084
Less: Adjustment for development projects(2)		(15,990	)
Adjusted Net Debt	$	1,199,094

1 Excludes unamortized premiums / discounts and deferred financing fees.

2 See definition of Adjusted Net Debt on Page 4.

EX-99.2

Exhibit 99.2


Disclaimers

Forward-looking Statement

We make statements in this Supplemental Information Package that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this Supplemental Information Package for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues, including credit risk and risk that the U.S. Government reduces its spending on real estate or that it changes its preference away from leased properties; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; the loss of key personnel; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness; risks associated with derivatives or hedging activity; risks associated with mortgage debt or unsecured financing or the unavailability thereof, which could make it difficult to finance or refinance properties and could subject us to foreclosure; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and the financial condition and results of operations of the Company; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission, or the SEC, on February 28, 2023 and included under the heading “Risk Factors” in our other public filings. In addition, our qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Ratings

Ratings are not recommendations to buy, sell or hold the Company’s securities.

The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarter ended June 30, 2023 that will be released in our Form 10-Q to be filed with the SEC on or about August 8, 2023.


Supplemental Definitions

This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this Supplemental Information Package and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. Additional detail can be found in the Company’s most recent quarterly report on Form 10-Q and the Company’s most recent annual report on Form 10-K, as well as other documents filed with or furnished to the SEC from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” “our pro rata share” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.

Annualized lease income is defined as the annualized contractual base rent for the last month in a specified period, plus the annualized straight-line rent adjustments for the last month in such period and the annualized net expense reimbursements earned by us for the last month in such period.

Cash fixed charge coverage ratio is calculated as EBITDA divided by the sum of principal amortization and interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.

Cash interest coverage ratio is calculated as EBITDA divided by interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.


Supplemental Definitions

Net Operating Income (NOI) and Cash NOI. NOI is calculated as net income adjusted to exclude depreciation and amortization, acquisition costs, corporate general and administrative costs, interest expense, gains or losses from sales of property, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. Cash NOI excludes from NOI straight-line rent, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), and the unconsolidated real estate venture’s allocated share of these adjustments. NOI and Cash NOI presented by the Company may not be comparable to NOI and Cash NOI reported by other REITs that define NOI and Cash NOI differently. The Company believes that NOI and Cash NOI provide investors with useful measures of the operating performance of its properties. NOI and Cash NOI should not be considered an alternative to net income as an indication of the Company's performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions.

Net Debt and Adjusted Net Debt. Net Debt represents the Company's consolidated debt and its share of unconsolidated debt adjusted to exclude its share of unamortized premiums and discounts and deferred financing fees, less its share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 25 for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs.


Table of Contents


Overview

Corporate Information and Analyst Coverage		6

Executive Summary		7

Corporate Financials

Balance Sheets		8

Income Statements		9

Net Operating Income		10

EBITDA		11

FFO and CAD		12

Unconsolidated Real Estate Venture		13

Debt

Debt Schedules		15

Debt Maturities		17

Properties

Leased Operating Property Overview		18

Tenants		22

Lease Expirations		24

Summary of Re/Development Projects		25


Corporate Information and Analyst Coverage


Corporate Information

Corporate Headquarters	Stock Exchange Listing	Information Requests	Investor Relations
2001 K Street NW	New York Stock Exchange	Please contact ir@easterlyreit.com	Lindsay Winterhalter,
Suite 775 North		or 202-596-3947 to request an	Supervisory VP,
Washington, DC 20006	Ticker	Investor Relations package	Investor Relations
202-595-9500	DEA		& Operations


Executive Team		Board of Directors
William Trimble III, CEO	Darrell Crate, Chairman	William Binnie, Lead Independent Director	Emil Henry Jr.
Michael Ibe, Vice-Chairman and EVP	Meghan Baivier, CFO & COO	Darrell Crate	Michael Ibe
Allison Marino, CAO	Mark Bauer, EVP	Cynthia Fisher	Tara Innes
Stuart Burns, EVP	Franklin Logan, GC	Scott Freeman	William Trimble III
Andrew Pulliam, EVP


Equity Research Coverage

Citigroup	Raymond James & Associates	RBC Capital Markets
Michael A. Griffin	Bill Crow	Michael Carroll
212-816-5871	727-567-2594	440-715-2649

Jefferies	Truist Securities	Compass Point Research & Trading, LLC
Jonathan Petersen	Michael R. Lewis	Merrill Ross
212-284-1705	212-319-5659	202-534-1392

BMO Capital Markets
John P. Kim
212-885-4115

Any opinions, estimates, forecasts or predictions regarding Easterly Government Properties, Inc.’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Easterly Government Properties, Inc. or its management. Easterly Government Properties, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.

Executive Summary
(In thousands, except share and per share amounts)


Outstanding Classes of Stock and Partnership Units - Fully Diluted Basis	At June 30, 2023			Earnings	Three months ended June 30, 2023		Three months ended June 30, 2022
Common shares		93,366,252		Net income available to Easterly Government Properties, Inc.	$	5,103	$	7,197
Unvested restricted shares		49,454		Net income available to Easterly Government Properties, Inc.
Common partnership and vested LTIP units		12,306,178		per share:
Total - fully diluted basis		105,721,884		Basic	$	0.05	$	0.08
				Diluted	$	0.05	$	0.08

Market Capitalization	At June 30, 2023			Net income	$	5,778	$	8,130
Price of Common Shares	$	14.50		Net income, per share - fully diluted basis	$	0.05	$	0.08
Total equity market capitalization - fully diluted basis	$	1,532,967		Funds From Operations (FFO)	$	30,021	$	33,353
Net Debt		1,215,084		FFO, per share - fully diluted basis	$	0.28	$	0.33
Total enterprise value	$	2,748,051
				Core FFO	$	30,267	$	33,620
				Core FFO, per share - fully diluted basis	$	0.29	$	0.33
Ratios	At June 30, 2023
Net debt to total enterprise value		44.2	%	FFO, as Adjusted	$	29,119	$	33,661
Net debt to annualized quarterly EBITDA		7.2	x	FFO, as Adjusted, per share - fully diluted basis	$	0.28	$	0.33
Adjusted Net Debt to annualized quarterly EBITDA		7.1	x
Cash interest coverage ratio		3.7	x	Cash Available for Distribution (CAD)	$	24,562	$	29,548
Cash fixed charge coverage ratio		3.4	x
				Liquidity	At June 30, 2023
				Cash and cash equivalents			$	10,702
				Available under $450 million senior unsecured revolving credit facility(1)			$	396,875

(1) Revolving credit facility has an accordion feature that provides additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250 million, for a total revolving credit facility size of not more than $700 million.

Balance Sheets
(Unaudited, in thousands, except share amounts)


	June 30, 2023			December 31, 2022
Assets
Real estate properties, net	$	2,270,435		$	2,285,308
Cash and cash equivalents		9,816			7,578
Restricted cash		11,970			9,696
Tenant accounts receivable		60,862			58,835
Investment in unconsolidated real estate venture		268,594			271,644
Intangible assets, net		145,837			157,282
Interest rate swaps		5,114			4,020
Prepaid expenses and other assets		35,335			35,022
Total assets	$	2,807,963		$	2,829,385

Liabilities
Revolving credit facility		53,000			65,500
Term loan facilities, net		249,179			248,972
Notes payable, net		696,290			696,052
Mortgage notes payable, net		222,711			240,847
Intangible liabilities, net		14,421			16,387
Deferred revenue		85,932			83,309
Accounts payable, accrued expenses and other liabilities		64,363			67,336
Total liabilities		1,385,896			1,418,403

Equity
Common stock, par value $0.01, 200,000,000 shares authorized, 93,415,706 and 90,814,021 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively		934			908
Additional paid-in capital		1,673,399			1,622,913
Retained earnings		102,491			93,497
Cumulative dividends		(524,806	)		(475,983	)
Accumulated other comprehensive income (loss)		4,518			3,546
Total stockholders' equity		1,256,536			1,244,881
Non-controlling interest in Operating Partnership		165,531			166,101
Total equity		1,422,067			1,410,982
Total liabilities and equity	$	2,807,963		$	2,829,385

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


	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Revenues
Rental income	$	67,758		$	71,156		$	135,906		$	141,595
Tenant reimbursements		2,500			916			4,575			2,060
Asset management income		517			317			1,034			565
Other income		598			368			1,078			839
Total revenues		71,373			72,757			142,593			145,059

Expenses
Property operating		17,629			15,551			35,517			31,009
Real estate taxes		7,619			7,851			15,087			15,677
Depreciation and amortization		22,619			24,343			45,700			48,502
Acquisition costs		444			302			905			664
Corporate general and administrative		7,024			5,966			14,319			11,949
Total expenses		55,335			54,013			111,528			107,801

Other income (expense)
Income from unconsolidated real estate venture		1,418			825			2,820			1,456
Interest expense, net		(11,678	)		(11,439	)		(23,693	)		(22,321	)
Net income		5,778			8,130			10,192			16,393

Non-controlling interest in Operating Partnership		(675	)		(933	)		(1,198	)		(1,855	)
Net income available to Easterly Government
Properties, Inc.	$	5,103		$	7,197		$	8,994		$	14,538

Net income available to Easterly Government
Properties, Inc. per share:
Basic	$	0.05		$	0.08		$	0.09		$	0.16
Diluted	$	0.05		$	0.08		$	0.09		$	0.16

Weighted-average common shares outstanding:
Basic		93,358,851			90,751,351			92,235,346			90,452,594
Diluted		93,641,382			91,083,980			92,508,651			90,799,647

Net income, per share - fully diluted basis	$	0.05		$	0.08		$	0.10		$	0.16

Weighted average common shares outstanding -
fully diluted basis		105,707,282			102,545,589			104,569,748			102,044,603

 Net Operating Income
 (Unaudited, in thousands)


	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022

Net income	$	5,778		$	8,130		$	10,192		$	16,393
Depreciation and amortization		22,619			24,343			45,700			48,502
Acquisition costs		444			302			905			664
Corporate general and administrative		7,024			5,966			14,319			11,949
Interest expense		11,678			11,439			23,693			22,321
Unconsolidated real estate venture allocated share of above adjustments		1,958			1,191			3,925			2,107
Net Operating Income		49,501			51,371			98,734			101,936
Adjustments to Net Operating Income:
Straight-line rent and other non-cash adjustments		(988	)		411			(1,482	)		(598	)
Amortization of above-/below-market leases		(676	)		(743	)		(1,376	)		(1,604	)
Amortization of deferred revenue		(1,622	)		(1,443	)		(3,106	)		(2,841	)
Unconsolidated real estate venture allocated share of above adjustments		23			(416	)		(112	)		(754	)
Cash Net Operating Income	$	46,238		$	49,180		$	92,658		$	96,139

 EBITDA
(Unaudited, in thousands)


	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Net income	$	5,778	$	8,130	$	10,192	$	16,393
Depreciation and amortization		22,619		24,343		45,700		48,502
Interest expense		11,678		11,439		23,693		22,321
Tax expense		352		174		520		225
Unconsolidated real estate venture allocated share of above adjustments		1,942		1,181		3,882		2,109
EBITDA	$	42,369	$	45,267	$	83,987	$	89,550

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


	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022

Net income	$	5,778		$	8,130		$	10,192		$	16,393
Depreciation of real estate assets		22,368			24,096			45,199			48,008
Unconsolidated real estate venture allocated share of above adjustments		1,875			1,127			3,750			2,005
FFO	$	30,021		$	33,353		$	59,141		$	66,406
Adjustments to FFO:
Loss on extinguishment of debt	$	-		$	-		$	14		$	-
Natural disaster event expense, net of recovery		(22	)		4			78			9
Depreciation of non-real estate assets		251			247			501			494
Unconsolidated real estate venture allocated share of above adjustments		17			16			33			32
Core FFO	$	30,267		$	33,620		$	59,767		$	66,941
Adjustments to Core FFO:
Acquisition costs		444			302			905			664
Straight-line rent and other non-cash adjustments		(902	)		451			(1,365	)		(531	)
Amortization of above-/below-market leases		(676	)		(743	)		(1,376	)		(1,604	)
Amortization of deferred revenue		(1,622	)		(1,443	)		(3,106	)		(2,841	)
Non-cash interest expense		244			235			488			460
Non-cash compensation		1,299			1,637			2,967			3,266
Natural disaster event expense, net of recovery		22			(4	)		(78	)		(9	)
Unconsolidated real estate venture allocated share of above adjustments		43			(394	)		(70	)		(709	)
FFO, as Adjusted	$	29,119		$	33,661		$	58,132		$	65,637

FFO, per share - fully diluted basis	$	0.28		$	0.33		$	0.57		$	0.65
Core FFO, per share - fully diluted basis	$	0.29		$	0.33		$	0.57		$	0.66
FFO, as Adjusted, per share - fully diluted basis	$	0.28		$	0.33		$	0.56		$	0.64

FFO, as Adjusted	$	29,119		$	33,661		$	58,132		$	65,637
Acquisition costs		(444	)		(302	)		(905	)		(664	)
Principal amortization		(1,068	)		(1,328	)		(2,126	)		(2,628	)
Maintenance capital expenditures		(2,329	)		(1,972	)		(5,069	)		(2,906	)
Contractual tenant improvements		(712	)		(511	)		(1,013	)		(1,128	)
Unconsolidated real estate venture allocated share of above adjustments		(4	)		-			(4	)		-
Cash Available for Distribution (CAD)	$	24,562		$	29,548		$	49,015		$	58,311

Weighted average common shares outstanding - fully diluted basis		105,707,282			102,545,589			104,569,748			102,044,603

 Unconsolidated Real Estate Venture
(Unaudited, in thousands)


Balance Sheet Information	Balance Sheet		Easterly's Share(2)
	June 30, 2023		June 30, 2023
Real estate properties - net	$	425,696	$	225,619
Total assets		516,430		273,708
Total liabilities		10,296		5,457
Total preferred stockholders' equity		61		32
Total common stockholders' equity		506,073		268,219
Basis difference(1)		-		375
Total equity	$	506,134	$	268,594

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

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

 Unconsolidated Real Estate Venture (Cont.)
(Unaudited, in thousands)


Income Statement Information	Three Months Ended			Easterly's Share(1)			Six Months Ended			Easterly's Share(1)
	June 30, 2023			June 30, 2023			June 30, 2023			June 30, 2023
Revenues
Rental income	$	10,033		$	5,317		$	19,772		$	10,479
Other income		43			22			84			44
Total Revenues		10,076			5,339			19,856			10,523
Operating expenses
Property operating		1,997			1,057			3,710			1,966
Real estate taxes		1,191			632			2,384			1,264
Depreciation and amortization		3,569			1,892			7,137			3,783
Acquisition costs		(3	)		(2	)		(3	)		(2	)
Asset management fees		517			274			1,034			548
Corporate general and administrative		89			47			191			101
Total expenses		7,360			3,900			14,453			7,660

Other expenses
Interest expense - net		(41	)		(21	)		(82	)		(43	)
Net income	$	2,675		$	1,418		$	5,321		$	2,820

Depreciation and amortization		3,569			1,892			7,137			3,783
Interest expense - net		41			21			82			43
Tax expense		55			29			105			56
EBITDA	$	6,340		$	3,360		$	12,645		$	6,702

Net income	$	2,675		$	1,418		$	5,321		$	2,820
Depreciation of real estate assets		3,538			1,875			7,075			3,750
FFO	$	6,213		$	3,293		$	12,396		$	6,570
Adjustments to FFO:
Depreciation of non-real estate assets		31			17			62			33
Core FFO	$	6,244		$	3,310		$	12,458		$	6,603
Adjustments to Core FFO:
Acquisition costs		(3	)		(2	)		(3	)		(2	)
Straight-line rent and other non-cash adjustments		44			23			(211	)		(112	)
Non-cash interest expense		41			22			82			44
FFO, as Adjusted	$	6,326		$	3,353		$	12,326		$	6,533
Acquisition costs		3			2			3			2
Maintenance capital expenditures		(12	)		(6	)		(30	)		(16	)
Contractual tenant improvements		-			-			18			10
Cash Available for Distribution (CAD)	$	6,317		$	3,349		$	12,317		$	6,529

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

Debt Schedules
(Unaudited, in thousands)


Debt Instrument	Maturity Date	June 30, 2023 Interest Rate	June 30, 2023 Balance(1)		June 30, 2023 Percent of Total Indebtedness
Unsecured debt
Revolving Credit facility	23-Jul-25(2)	SOFR + 135bps(3)		53,000	4.3%
2016 Term Loan facility	29-Mar-24	2.72%(4)		100,000	8.2%
2018 Term Loan facility	23-Jul-26	5.42%(5)		150,000	12.2%
2017 Series A Senior Notes	25-May-27	4.05%		95,000	7.8%
2017 Series B Senior Notes	25-May-29	4.15%		50,000	4.1%
2017 Series C Senior Notes	25-May-32	4.30%		30,000	2.4%
2019 Series A Senior Notes	12-Sep-29	3.73%		85,000	6.9%
2019 Series B Senior Notes	12-Sep-31	3.83%		100,000	8.2%
2019 Series C Senior Notes	12-Sep-34	3.98%		90,000	7.3%
2021 Series A Senior Notes	14-Oct-28	2.62%		50,000	4.1%
2021 Series B Senior Notes	14-Oct-30	2.89%		200,000	16.3%
Total unsecured debt	5.6 years	3.85%	$	1,003,000	81.8%
	(wtd-avg maturity)	(wtd-avg rate)

Secured mortgage debt
VA - Golden	1-Apr-24	5.00%		8,546	0.7%
USFS II - Albuquerque	14-Jul-26	4.46%		12,541	1.0%
ICE - Charleston	15-Jan-27	4.21%		12,727	1.0%
VA - Loma Linda	6-Jul-27	3.59%		127,500	10.4%
CBP - Savannah	10-Jul-33	3.40%		9,972	0.8%
USCIS - Kansas City	6-Aug-24	3.68%		51,500	4.3%
Total secured mortgage debt	3.4 years	3.74%	$	222,786	18.2%
	(wtd-avg maturity)	(wtd-avg rate)

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

(2) Revolving credit facility has two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.

(3) Also includes one interest rate swap with an aggregate notional value of $100.0 million, of which $50.0 million is associated with our revolving credit facility, which effectively fixes the interest rate at 5.36% annually based on the Company's current consolidated leverage ratio.

(4) Calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 2.72% annually based on the Company’s current consolidated leverage ratio. The two interest rate swaps mature on September 29, 2023, which is not coterminous with the maturity date of the 2016 term loan facility.

(5) Calculated based on two interest rate swaps with an aggregate notional value of $200.0 million, of which $150.0 million is associated with our 2018 term loan facility, which effectively fix the interest rate at 5.42% annually based on the Company’s current consolidated leverage ratio. The two interest rate swaps mature on December 23, 2024 and March 23, 2025, which is not coterminous with the maturity date of the 2018 term loan facility.

Debt Schedules (Cont.)
(Unaudited, in thousands)


Debt Statistics	June 30, 2023				June 30, 2023
Variable rate debt - unhedged	$	3,000		% Variable rate debt - unhedged		0.2	%
Fixed rate debt		1,222,786		% Fixed rate debt(3)		99.8	%
Total Debt(1)	$	1,225,786
Less: Cash and cash equivalents		(10,702	)	Weighted average maturity	5.2 years
Net Debt	$	1,215,084		Weighted average interest rate		3.8	%
Less: Adjustment for development(2)		(15,990	)
Adjusted Net Debt	$	1,199,094

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

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

(3) Includes the Company's 2016 and 2018 term loan facilities and $50.0 million associated with the revolving credit facility, which are effectively swapped to fixed interest rates. Note the associated swaps are not coterminous with maturity dates of the respective term loan facilities. See Page 15 for further detail.

Debt Maturities
(Unaudited, in thousands)


	Secured Debt				Unsecured Debt
Year	Scheduled Amortization		Scheduled Maturities		Scheduled Maturities		Total		Percentage of Debt Maturing			Weighted Average Interest Rate of Scheduled Maturities
2023		2,190		-		-		2,190		0.2	%		-
2024		4,403		59,895		100,000		164,298		13.4	%		3.15	%
2025		4,598		-		53,000		57,598		4.7	%		5.41	%
2026		3,686		6,368		150,000		160,054		13.1	%		5.35	%
2027		1,093		134,640		95,000		230,733		18.8	%		3.81	%
2028		983		-		50,000		50,983		4.2	%		2.62	%
2029		1,016		-		135,000		136,016		11.1	%		3.89	%
2030		1,049		-		200,000		201,049		16.4	%		2.89	%
2031		1,081		-		100,000		101,081		8.2	%		3.83	%
2032		1,116		-		30,000		31,116		2.5	%		4.30	%
2033		668		-		-		668		0.1	%		3.40	%
2034		-		-		90,000		90,000		7.3	%		3.98	%
Total	$	21,883	$	200,903	$	1,003,000	$	1,225,786		100.0	%

Leased Operating Property Overview
(As of June 30, 2023, unaudited)


Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Leased Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot

Wholly Owned U.S. Government Leased Properties
VA - Loma Linda	Loma Linda, CA	Outpatient Clinic	2036	2016		327,614	$	16,592,268		5.6	%	$	50.65
USCIS - Kansas City	Lee's Summit, MO	Office/Warehouse	2024 - 2042(1)	1969 / 1999		417,033		10,351,371		3.4	%		24.82
JSC - Suffolk	Suffolk, VA	Office	2028(2)	1993 / 2004		403,737		8,413,625		2.8	%		20.84
Various GSA - Portland	Portland, OR	Office	2023 - 2039(3)	2002		211,955		7,046,661		2.3	%		33.25
Various GSA - Chicago	Des Plaines, IL	Office	2023	1971 / 1999		202,185		6,971,858		2.3	%		34.48
FBI - Salt Lake	Salt Lake City, UT	Office	2032	2012		169,542		6,897,893		2.3	%		40.69
IRS - Fresno	Fresno, CA	Office	2033	2003		180,481		6,845,720		2.3	%		37.93
Various GSA - Buffalo	Buffalo, NY	Office	2025 - 2039	2004		273,678		6,732,092		2.2	%		24.60
VA - San Jose	San Jose, CA	Outpatient Clinic	2038	2018		90,085		5,765,363		1.9	%		64.00
EPA - Lenexa	Lenexa, KS	Office	2027(2)	2007 / 2012		169,585		5,684,120		1.9	%		33.52
PTO - Arlington	Arlington, VA	Office	2035	2009		190,546		5,339,380		1.8	%		28.02
FBI - San Antonio	San Antonio, TX	Office	2025	2007		148,584		5,232,467		1.7	%		35.22
FBI - Tampa	Tampa, FL	Office	2040	2005		138,000		5,177,074		1.7	%		37.52
FDA - Alameda	Alameda, CA	Laboratory	2039	2019		69,624		4,840,290		1.6	%		69.52
FBI / DEA - El Paso	El Paso, TX	Office/Warehouse	2028	1998 - 2005		203,683		4,647,160		1.5	%		22.82
FEMA - Tracy	Tracy, CA	Warehouse	2038	2018		210,373		4,646,120		1.5	%		22.09
FBI - Omaha	Omaha, NE	Office	2024	2009		112,196		4,451,732		1.5	%		39.68
TREAS - Parkersburg	Parkersburg, WV	Office	2041	2004 / 2006		182,500		4,340,447		1.4	%		23.78
DOT - Lakewood	Lakewood, CO	Office	2039	2004		122,225		4,141,796		1.4	%		33.89
VA - South Bend	Mishakawa, IN	Outpatient Clinic	2032	2017		86,363		4,136,462		1.4	%		47.90
FDA - Lenexa	Lenexa, KS	Laboratory	2040	2020		59,690		4,091,806		1.3	%		68.55
FBI - Pittsburgh	Pittsburgh, PA	Office	2027	2001		100,054		4,037,239		1.3	%		40.35
VA - Mobile	Mobile, AL	Outpatient Clinic	2033	2018		79,212		3,947,470		1.3	%		49.83
FBI - New Orleans	New Orleans, LA	Office	2029(4)	1999 / 2006		137,679		3,926,093		1.3	%		28.52
USCIS - Lincoln	Lincoln, NE	Office	2025	2005		137,671		3,901,870		1.3	%		28.34
FBI - Knoxville	Knoxville, TN	Office	2025	2010		99,130		3,577,235		1.2	%		36.09
FBI - Birmingham	Birmingham, AL	Office	2042	2005		96,278		3,535,446		1.2	%		36.72
EPA - Kansas City	Kansas City, KS	Laboratory	2043	2003		55,833		3,493,954		1.1	%		62.58
ICE - Charleston	North Charleston, SC	Office	2027	1994 / 2012		65,124		3,334,548		1.1	%		51.20
VA - Chico	Chico, CA	Outpatient Clinic	2034	2019		51,647		3,310,590		1.1	%		64.10
FBI - Richmond	Richmond, VA	Office	2041	2001		96,607		3,310,029		1.1	%		34.26
USFS II - Albuquerque	Albuquerque, NM	Office	2026(2)	2011		98,720		3,249,945		1.1	%		32.92
DEA - Sterling	Sterling, VA	Laboratory	2038	2001		57,692		3,209,041		1.1	%		55.62
FBI - Little Rock	Little Rock, AR	Office	2041	2001		102,377		3,189,062		1.0	%		31.15
USFS I - Albuquerque	Albuquerque, NM	Office	2026	2006		92,455		3,180,431		1.0	%		34.40
USCIS - Tustin	Tustin, CA	Office	2034	1979 / 2019		66,818		3,148,124		1.0	%		47.11
DEA - Vista	Vista, CA	Laboratory	2035	2002		52,293		3,110,917		1.0	%		59.49

Leased Operating Property Overview (Cont.)
(As of June 30, 2023, unaudited)


Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Leased Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot

Wholly Owned U.S. Government Leased Properties (Cont.)
VA - Orange	Orange, CT	Outpatient Clinic	2034	2019		56,330		2,968,191		1.0	%		52.69
VA - Indianapolis	Brownsburg, IN	Outpatient Clinic	2041	2021		80,000		2,954,619		1.0	%		36.93
JUD - Del Rio	Del Rio, TX	Courthouse/Office	2024	1992 / 2004		89,880		2,887,088		0.9	%		32.12
ICE - Albuquerque	Albuquerque, NM	Office	2027	2011		71,100		2,822,205		0.9	%		39.69
FBI - Mobile	Mobile, AL	Office	2029(2)	2001		76,112		2,797,577		0.9	%		36.76
DEA - Dallas Lab	Dallas, TX	Laboratory	2038	2001		49,723		2,774,089		0.9	%		55.79
JUD - El Centro	El Centro, CA	Courthouse/Office	2034	2004		43,345		2,765,592		0.9	%		63.80
DEA - Pleasanton	Pleasanton, CA	Laboratory	2035	2015		42,480		2,743,024		0.9	%		64.57
DEA - Upper Marlboro	Upper Marlboro, MD	Laboratory	2037	2002		50,978		2,723,146		0.9	%		53.42
SSA - Charleston	Charleston, WV	Office	2024(2)	1959 / 2000		110,000		2,692,983		0.9	%		24.48
FBI - Albany	Albany, NY	Office	2036	1998		69,476		2,680,474		0.9	%		38.58
USAO - Louisville	Louisville, KY	Office	2031	2011		60,000		2,538,338		0.8	%		42.31
TREAS - Birmingham	Birmingham, AL	Office	2029	2014		83,676		2,527,605		0.8	%		30.21
NARA - Broomfield	Broomfield, CO	Office/Warehouse	2032	2012		161,730		2,373,591		0.8	%		14.68
JUD - Charleston	Charleston, SC	Courthouse/Office	2040	1999		52,339		2,337,677		0.8	%		44.66
DEA - Dallas	Dallas, TX	Office	2041	2001		71,827		2,253,537		0.7	%		31.37
Various GSA - Cleveland	Brooklyn Heights, OH	Office	2028 - 2040(5)	1981 / 2021		61,384		2,250,294		0.7	%		36.66
CBP - Savannah	Savannah, GA	Laboratory	2033	2013		35,000		2,249,163		0.7	%		64.26
NWS - Kansas City	Kansas City, MO	Office	2033(2)	1998 / 2020		94,378		2,142,661		0.7	%		22.70
JUD - Jackson	Jackson, TN	Courthouse/Office	2043(2)	1998		73,397		2,065,187		0.7	%		28.14
DEA - Santa Ana	Santa Ana, CA	Office	2029	2004		39,905		1,996,277		0.7	%		50.03
DEA - North Highlands	Sacramento, CA	Office	2033	2002		37,975		1,913,404		0.6	%		50.39
NPS - Omaha	Omaha, NE	Office	2024	2004		62,772		1,836,520		0.6	%		29.26
VA - Golden	Golden, CO	Office/Warehouse	2026	1996 / 2011		56,753		1,722,618		0.6	%		30.35
USCG - Martinsburg	Martinsburg, WV	Office	2027	2007		59,547		1,583,893		0.5	%		26.60
JUD - Aberdeen	Aberdeen, MS	Courthouse/Office	2025	2005		46,979		1,572,610		0.5	%		33.47
GSA - Clarksburg	Clarksburg, WV	Office	2024(2)	1999		63,750		1,521,309		0.5	%		23.86
VA - Charleston	North Charleston, SC	Warehouse	2040	2020		97,718		1,472,208		0.5	%		15.07
DEA - Birmingham	Birmingham, AL	Office	2023	2005		35,616		1,442,564		0.5	%		40.50
DEA - Albany	Albany, NY	Office	2025	2004		31,976		1,398,185		0.5	%		43.73
USAO - Springfield	Springfield, IL	Office	2038	2002		43,600		1,381,505		0.5	%		31.69
DEA - Riverside	Riverside, CA	Office	2032	1997		34,354		1,305,270		0.4	%		37.99
JUD - Council Bluffs	Council Bluffs, IA	Courthouse/Office	2041(5)	2021		28,900		1,283,504		0.4	%		44.41
SSA - Dallas	Dallas, TX	Office	2035	2005		27,200		1,056,391		0.3	%		38.84
JUD - South Bend	South Bend, IN	Courthouse/Office	2027	1996 / 2011		30,119		790,363		0.3	%		26.24
ICE - Louisville	Louisville, KY	Office	2036	2011		17,420		655,365		0.2	%		37.62
DEA - San Diego	San Diego, CA	Warehouse	2032	1999		16,100		555,773		0.2	%		34.52

Leased Operating Property Overview (Cont.)
(As of June 30, 2023, unaudited)


Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Leased Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot

Wholly Owned U.S. Government Leased Properties (Cont.)
DEA - Bakersfield	Bakersfield, CA	Office	2038	2000		9,800		486,103		0.2	%		49.60
SSA - San Diego	San Diego, CA	Office	2032	2003		10,059		442,607		0.1	%		44.00
ICE - Otay	San Diego, CA	Office	2027	2001		7,434		258,761		0.1	%		34.81

Subtotal						7,550,401	$	264,029,970		87.0	%	$	34.97

Wholly Owned Privately Leased Property
501 East Hunter Street - Lummus Corporation	Lubbock, TX	Warehouse/Distribution	2028(5)	2013		70,078		411,124		0.1	%		5.87
Subtotal						70,078	$	411,124		0.1	%	$	5.87

Wholly Owned Properties Total / Weighted Average						7,620,479	$	264,441,094		87.1	%	$	34.70

Leased Operating Property Overview (Cont.)
(As of June 30, 2023, unaudited)


Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Leased Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot
U.S Government Leased to Unconsolidated Real Estate Venture
VA - Phoenix(6)	Phoenix, AZ	Outpatient Clinic	2042	2022		257,294		10,649,799		3.5	%		41.39
VA - San Antonio(6)	San Antonio, TX	Outpatient Clinic	2041	2021		226,148		9,212,310		3.0	%		40.74
VA - Chattanooga(6)	Chattanooga, TN	Outpatient Clinic	2035	2020		94,566		4,334,944		1.4	%		45.84
VA - Lubbock(6)(7)	Lubbock, TX	Outpatient Clinic	2040	2020		120,916		4,030,913		1.3	%		33.34
VA - Marietta(6)	Marietta, GA	Outpatient Clinic	2041	2021		76,882		3,895,813		1.3	%		50.67
VA - Birmingham(6)	Irondale, AL	Outpatient Clinic	2041	2021		77,128		3,154,679		1.0	%		40.90
VA - Columbus(6)	Columbus, GA	Outpatient Clinic	2042	2022		67,793		2,898,223		1.0	%		42.75
VA - Lenexa(6)	Lenexa, KS	Outpatient Clinic	2041	2021		31,062		1,309,621		0.4	%		42.16

Subtotal						951,789	$	39,486,302		12.9	%	$	41.49

Total / Weighted Average						8,572,268	$	303,927,396		100.0	%	$	35.45

Total / Weighted Average at Easterly's Share						8,124,926	$	285,368,833				$	35.12

(1) 316,318 square feet leased to U.S. Citizenship and Immigration Services ("USCIS") will expire on February 19, 2042 and contains two five-year renewal options. 88,672 square feet leased to four private tenants will expire between 2024-2028 and each contains renewal options.

(2) Lease contains one five-year renewal option.

(3) 37,811 square feet leased to the U.S. Army Corps of Engineers ("ACOE") will expire on February 19, 2025 and contains two five-year renewal options. 21,646 square feet leased to the Federal Bureau of Investigation ("FBI") will expire on December 31, 2024 and contains two five-year renewal options. 9,525 square feet leased to four private tenants will expire between 2025-2028 and each contains renewal options. 4,846 square feet leased to the Department of Energy ("DOE") will expire on April 14, 2033 and contains one ten-year renewal options.

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

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

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

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

Tenants
(As of June 30, 2023, unaudited)


Tenant	Weighted Average Remaining Lease Term(1)		Leased Square Feet		Percentage of Leased Square Feet			Annualized Lease Income		Percentage of Total Annualized Lease Income

U.S. Government
Department of Veteran Affairs ("VA")		15.1		1,988,755		23.1	%	$	84,979,923		28.0	%
Federal Bureau of Investigation ("FBI")		8.9		1,501,720		17.5	%		52,507,090		17.3	%
Drug Enforcement Administration ("DEA")		10.5		609,497		7.1	%		27,821,301		9.2	%
U.S. Citizenship and Immigration Services ("USCIS")		13.3		520,807		6.1	%		14,935,777		4.9	%
Judiciary of the U.S. ("JUD")		10.0		364,959		4.3	%		13,702,021		4.5	%
Environmental Protection Agency ("EPA")		8.2		225,418		2.6	%		9,178,074		3.0	%
Food and Drug Administration ("FDA")		16.7		129,314		1.5	%		8,932,096		2.9	%
U.S. Joint Staff Command ("JSC")		4.9		403,737		4.7	%		8,413,625		2.8	%
Internal Revenue Service ("IRS")		10.1		233,334		2.7	%		7,926,139		2.6	%
Immigration and Customs Enforcement ("ICE")		5.5		183,894		2.1	%		7,856,362		2.6	%
Bureau of the Fiscal Service ("BFS")		14.2		266,176		3.1	%		6,868,052		2.3	%
Federal Aviation Administration ("FAA")		0.3		194,540		2.3	%		6,701,596		2.2	%
U.S. Forest Service ("USFS")		2.9		191,175		2.2	%		6,430,376		2.1	%
Patent and Trademark Office ("PTO")		11.5		190,546		2.2	%		5,339,380		1.8	%
Social Security Administration ("SSA")		3.2		189,276		2.2	%		5,194,664		1.7	%
Federal Emergency Management Agency ("FEMA")		15.3		210,373		2.5	%		4,646,120		1.5	%
Department of Transportation ("DOT")		15.3		129,659		1.5	%		4,400,557		1.4	%
U.S. Attorney Office ("USAO")		10.5		110,008		1.3	%		4,072,750		1.3	%
National Archives and Records Administration ("NARA")		8.9		161,730		1.9	%		2,373,591		0.8	%
Customs and Border Protection ("CBP")		10.0		35,000		0.4	%		2,249,163		0.7	%
U.S. Department of Agriculture ("USDA")		4.1		67,902		0.8	%		2,171,584		0.7	%
National Weather Service ("NWS")		10.5		94,378		1.1	%		2,142,661		0.7	%
National Park Service ("NPS")		1.0		62,772		0.7	%		1,836,520		0.6	%
General Services Administration - Other		2.2		55,807		0.7	%		1,773,661		0.6	%
U.S. Coast Guard ("USCG")		4.5		59,547		0.7	%		1,583,893		0.5	%
National Oceanic and Atmospheric Administration ("NOAA")		5.1		33,403		0.4	%		1,404,335		0.5	%
U.S. Army Corps of Engineers ("ACOE")		1.6		39,320		0.5	%		1,142,303		0.4	%
Small Business Administration ("SBA")		14.3		44,753		0.5	%		985,673		0.3	%
Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF")		2.9		21,342		0.2	%		777,655		0.3	%

Tenants (Cont.)
(As of June 30, 2023, unaudited)


Tenant	Weighted Average Remaining Lease Term(1)		Leased Square Feet		Percentage of Leased Square Feet			Annualized Lease Income		Percentage of Total Annualized Lease Income

U.S. Government
Federal Energy Regulatory Commission ("FERC")		16.1		6,214		0.1	%		245,540		0.1	%
Bureau of Indian Affairs ("BIA")		0.1		6,477		0.1	%		228,756		0.1	%
Department of Energy ("DOE")		9.8		4,846		0.1	%		187,782		0.1	%
U.S. Marshals Service ("USMS")		3.6		1,054		0.0	%		49,953		0.0	%
Department of Labor ("DOL")		0.6		1,004		0.0	%		23,956		0.0	%
U.S. Probation Office ("USPO")		0.6		452		0.0	%		10,793		0.0	%

Subtotal		10.5		8,339,189		97.2	%	$	299,093,722		98.5	%

Private Tenants
Other Private Tenants		3.1		54,040		0.6	%	$	1,477,948		0.5	%
St. Luke's Health System		3.5		32,043		0.4	%	$	943,878		0.3	%
CVS Health		1.9		40,324		0.5	%	$	936,210		0.3	%
Providence Health & Services		2.2		21,643		0.3	%	$	728,673		0.2	%
Lummus Corporation		5.1		70,078		0.8	%	$	411,124		0.1	%
ExamOne		4.6		14,951		0.2	%	$	335,841		0.1	%

Subtotal		3.6		233,079		2.8	%	$	4,833,674		1.5	%

Total / Weighted Average		10.3		8,572,268		100.0	%	$	303,927,396		100.0	%

(1) Weighted based on leased square feet.

Lease Expirations
(As of June 30, 2023, unaudited)


Year of Lease Expiration	Number of Leases Expiring	Leased Square Footage Expiring		Percentage of Total Leased Square Footage Expiring			Annualized Lease Income Expiring		Percentage of Total Annualized Lease Income Expiring			Annualized Lease Income per Leased Square Foot Expiring
2023	6		268,201		3.1	%		9,618,413		3.2	%		35.86
2024	7		473,465		5.5	%		14,289,502		4.7	%		30.18
2025	15		631,326		7.4	%		20,631,405		6.8	%		32.68
2026	5		294,245		3.4	%		9,490,733		3.1	%		32.25
2027	9		506,510		5.9	%		18,639,271		6.1	%		36.80
2028	10		778,474		9.1	%		16,490,650		5.4	%		21.18
2029	4		337,372		3.9	%		11,247,552		3.7	%		33.34
2030	-		-		0.0	%		-		0.0	%		-
2031	2		100,502		1.2	%		4,068,460		1.3	%		40.48
2032	7		531,001		6.2	%		16,792,015		5.5	%		31.62
Thereafter	52		4,651,172		54.3	%		182,659,395		60.2	%		39.27
Total / Weighted Average	117		8,572,268		100.0	%	$	303,927,396		100.0	%	$	35.45

Summary of Re/Development Projects
(As of June 30, 2023, unaudited, in thousands, except square feet)


Projects Under Construction(1)
Property Name	Location		Property Type		Total Leased Square Feet		Lease Term		Anticipated Total Cost		Cost to Date		Total Lump-Sum Reimbursement		Anticipated Completion Date		Anticipated Lease Commencement
N/A		-		-		-		-	$	-	$	-	$	-		-		-



Projects in Design(2)
Property Name	Location		Property Type		Total Estimated Leased Square Feet		Lease Term		Cost to Date		Anticipated Completion Date		Anticipated Lease Commencement
FDA - Atlanta	Atlanta, GA		Laboratory			162,000	20-Year		$	39,975	4Q 2025		4Q 2025
Total						162,000			$	39,975



Projects Previously Completed with Outstanding Lump-Sum Reimbursements(3)
Property Name	Location		Property Type		Total Leased Square Feet		Lease Term		Outstanding Lump-Sum Reimbursement(3)		Completion Date		Lease Commencement
N/A		-		-		-		-	$	-		-		-

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

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

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