Solaris Oilfield Infrastructure, Inc. (SOI) Q3 2022 Earnings Conference Call November 1, 2022 11:00 AM ET Company Participants Lindsay Winterhalter - VP, IR Darrell Crate - Executive Chairman Bill Trimble - President, CEO and Director Meghan Baivier - EVP, CFO and COO Conference Call Participants Michael Griffin - Citi John Kim - BMO Capital Markets Michael Carroll - RBC Capital Markets Michael Lewis - Truist Operator Greetings and welcome to Easterly Government Properties' Third Quarter 2022 Earnings Confe ...

Part I: Financial Information [Financial Statements](index=3&type=section&id=Item%201%3A%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the period ended September 30, 2022, including Balance Sheets, Statements of Operations, Cash Flows, and detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The balance sheets show total assets increased to **$2.96 billion** and total liabilities rose to **$1.54 billion** by September 30, 2022, driven by property and credit facility changes Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$2,961,650** | **$2,826,112** | | Real estate properties, net | $2,463,961 | $2,399,188 | | Investment in unconsolidated real estate venture | $199,338 | $131,840 | | **Total Liabilities** | **$1,542,855** | **$1,384,531** | | Revolving credit facility | $177,750 | $14,500 | | Notes payable, net | $695,935 | $695,589 | | **Total Equity** | **$1,418,795** | **$1,441,581** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues increased to **$220.1 million**, but net income decreased to **$17.1 million** due to an impairment loss and higher interest expenses, impacting diluted EPS Statement of Operations Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | **Total Revenues** | **$220,100** | **$203,223** | | Rental income | $214,238 | $197,713 | | **Total Expenses** | **$164,975** | **$150,615** | | Depreciation and amortization | $73,552 | $67,615 | | Impairment loss | $5,540 | $0 | | **Net Income** | **$17,142** | **$26,176** | | Net income available to Easterly | $15,180 | $23,169 | | **Diluted EPS** | **$0.16** | **$0.27** | | Dividends declared per common share | $0.795 | $0.785 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$103.8 million**, while investing activities used **$189.3 million**, and financing activities provided **$86.9 million** Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $103,783 | $94,459 | | Net cash used in investing activities | ($189,313) | ($127,452) | | Net cash provided by financing activities | $86,881 | $42,072 | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, **$108.1 million** in property acquisitions, a **$5.5 million** impairment loss, joint venture formation, and a subsequent **$205.3 million** property portfolio sale - The company is an internally managed REIT focused on acquiring, developing, and managing Class A commercial properties leased to U.S. Government agencies[22](index=22&type=chunk) - During the first nine months of 2022, the company acquired three operating properties for an aggregate purchase price of **$108.1 million**[31](index=31&type=chunk) - A **$5.5 million** impairment loss was recognized for the ICE – Otay property due to changes in expected cash flows related to a 2022 lease expiration[33](index=33&type=chunk) - Subsequent to the quarter's end, on October 12, 2022, the company agreed to sell a portfolio of ten properties for approximately **$205.3 million** The sale of nine of these properties was completed on October 27, 2022[103](index=103&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, including revenue growth from acquisitions, net income decline due to impairment and interest costs, liquidity, capital resources, and non-GAAP FFO reconciliation - As of September 30, 2022, the company wholly owned **88 operating properties** and seven through a joint venture, totaling **9.1 million leased square feet**, with a **99% lease rate**[110](index=110&type=chunk) - Subsequent to the quarter, the company completed the sale of nine properties from a ten-property disposition portfolio for an aggregate price of approximately **$205.3 million**[115](index=115&type=chunk)[116](index=116&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Total revenues increased by **$16.9 million** to **$220.1 million**, while net income decreased by **$9.0 million** to **$17.1 million** due to higher expenses and an impairment loss Comparison of Operations for the Nine Months Ended September 30 (in thousands) | Item | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$220,100** | **$203,223** | **$16,877** | | Rental income | $214,238 | $197,713 | $16,525 | | **Total Expenses** | **$164,975** | **$150,615** | **$14,360** | | Property operating | $48,811 | $41,578 | $7,233 | | Interest expense, net | ($34,729) | ($27,739) | ($6,990) | | Impairment loss | ($5,540) | $0 | ($5,540) | | **Net Income** | **$17,142** | **$26,176** | **($9,034)** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity via operating cash flow, a revolving credit facility with **$272.1 million** available, and **$1.37 billion** in total debt with a **5.6-year** weighted average maturity - Primary sources of capital include operating cash flow, the revolving credit facility, debt and equity issuances, and asset sales[169](index=169&type=chunk) Debt Capital Structure as of September 30, 2022 | Metric | Value | | :--- | :--- | | Total principal outstanding | $1,375.3 million | | Weighted average maturity | 5.6 years | | Weighted average interest rate | 3.7% | | % Fixed debt (incl. swaps) | 85.9% | | % Variable debt | 14.1% | - As of September 30, 2022, the company had unsettled forward sales transactions for **1,950,000 shares** under its 2019 ATM Program, with expected net proceeds of approximately **$42.6 million** upon physical settlement[176](index=176&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) The company reports FFO of **$98.8 million** and FFO, as Adjusted, of **$98.9 million** for the nine months ended September 30, 2022, reflecting growth from property acquisitions FFO and FFO, as Adjusted Reconciliation (in thousands) | Metric | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net income | $17,142 | $26,176 | | Depreciation of real estate assets | $72,810 | $67,561 | | Impairment loss | $5,540 | $0 | | **FFO** | **$98,844** | **$92,430** | | Adjustments (Acquisition costs, non-cash items, etc.) | $5,089 | ($5,754) | | **FFO, as Adjusted** | **$98,933** | **$86,676** | [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with **85.9%** of debt fixed, and it is managing the transition from LIBOR to SOFR for its credit facilities - As of September 30, 2022, **85.9%** of the company's **$1.2 billion** in debt had fixed interest rates, with the remaining **14.1%** (**$193.5 million**) at variable rates[217](index=217&type=chunk) - A hypothetical **25 basis point** fluctuation in market interest rates on variable-rate debt would change annual interest expense by approximately **$0.5 million**[217](index=217&type=chunk) - The company is preparing for the discontinuation of LIBOR after June 30, 2023, and its credit facilities include provisions for replacing LIBOR with an alternative rate like SOFR[219](index=219&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[221](index=221&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the third quarter of 2022[224](index=224&type=chunk) Part II: Other Information [Legal Proceedings](index=44&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is not currently involved in any material litigation and is unaware of any threatened material legal actions - As of the filing date, the company is not a party to any material legal proceedings[225](index=225&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to risk factors were noted, except for a new risk concerning the share repurchase program's potential impact on stock price and cash reserves - A new risk factor was added regarding the company's share repurchase program, stating that repurchases are not guaranteed and could affect stock price, liquidity, and cash reserves[227](index=227&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities in the quarter[228](index=228&type=chunk) [Exhibits](index=45&type=section&id=Item%206%3A%20Exhibits) This section lists exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents, credit agreements, and CEO/CFO certifications - Exhibits filed include the First Amendment to the Second Amended and Restated Credit Agreement, and certifications from the CEO and CFO as required by the Securities Exchange Act of 1934[232](index=232&type=chunk)

Easterly Government Properties Inc. (NYSE:DEA) Q2 2022 Earnings Conference Call August 2, 2022 11:00 AM ET Company Participants Lindsay Winterhalter - Vice President of Investor Relations Darrell Crate - Executive Chairman of the Board Bill Trimble - President, CEO and Director Meghan Baivier - Executive VP, CFO and COO Conference Call Participants Michael Griffin - Citi Michael Carroll - RBC Capital Markets John Kim - BMO Capital Markets Peter Abramowitz - Jefferies Michael Lewis - Truist Bill Crow - Raymo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36834 EASTERLY GOVERNMENT PROPERTIES, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-2047728 (State of Incorporati ...

Easterly Government Properties, Inc. (NYSE:DEA) Q1 2022 Earnings Conference Call May 3, 2022 11:00 AM ET Company Participants Lindsay Winterhalter - Supervisory VP, IR & Operations Darrell Crate - Executive Chairman William Trimble - President, CEO & Director Meghan Baivier - EVP, CFO & COO Conference Call Participants Michael Carroll - RBC Capital Markets Michael Griffin - Citigroup Inc. Operator Greetings. Welcome to Easterly Government Properties First Quarter 2022 Earnings Conference Call. [Operator Ins ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36834 EASTERLY GOVERNMENT PROPERTIES, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-2047728 (State of Incorporat ...

Easterly Government Property Inc. (NYSE:DEA) Q4 2021 Earnings Conference Call February 28, 2022 10:00 AM ET Company Participants Bill Trimble – Chief Executive Officer Meghan Baivier – Chief Financial Officer and Chief Operating Officer Lindsay Winterhalter – Vice President, Investor Relations Darrell Crate – Chairman Conference Call Participants John Kim – BMO Capital Markets Michael Carroll – RBC Capital Markets Emmanuel Korchman – Citi Operator Greetings, welcome to the Easterly Government Properties, Fo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended: December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR For the transition period from To Commission File Number: 001-36834 EASTERLY GOVERNMENT PROPERTIES, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | --- | |----------------- ...

Easterly Government Properties, Inc. (NYSE:DEA) Q3 2021 Results Conference Call November 2, 2021 11:00 AM ET Company Participants Lindsay Winterhalter - VP, IR Darrell Crate - Chairman Bill Trimble - CEO Meghan Baivier - CFO and COO Conference Call Participants Emmanuel Korchman - Citi Michael Carroll - RBC Capital Markets John Kim - BMO Capital Markets Merrill Ross - Compass Point Michael Carroll - RBC Capital Markets Operator Greetings. Welcome to the Easterly Government Properties Third Quarter 2021 Earn ...

Part I: Financial Information [Financial Statements](index=2&type=section&id=Item%201%3A%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three and nine months ended September 30, 2021, detailing the Balance Sheets, Statements of Operations, Comprehensive Income, and Cash Flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2021, total assets were $2.56 billion, an increase from $2.46 billion at year-end 2020, with total liabilities rising to $1.19 billion and total equity increasing to $1.37 billion Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$2,555,970** | **$2,457,540** | | Real estate properties, net | $2,287,208 | $2,208,661 | | Cash and cash equivalents | $16,068 | $8,465 | | **Total Liabilities** | **$1,185,260** | **$1,157,570** | | Revolving credit facility | $112,500 | $79,250 | | Notes payable, net | $447,215 | $447,171 | | **Total Equity** | **$1,370,710** | **$1,299,970** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the nine months ended September 30, 2021, total revenues increased 13.0% year-over-year to $203.2 million, with net income more than doubling to $26.2 million and diluted EPS reaching $0.27 Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $69,608 | $61,131 | $203,223 | $179,875 | | Total Expenses | $51,990 | $47,682 | $150,615 | $142,438 | | Net Income | $9,042 | $4,821 | $26,176 | $10,902 | | Diluted EPS | $0.09 | $0.05 | $0.27 | $0.12 | | Dividends Declared per Share | $0.265 | $0.260 | $0.785 | $0.780 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the nine months ended September 30, 2021, was $30.5 million, a substantial increase from $2.0 million in the prior year, driven by higher net income and positive changes in unrealized gains on interest rate swaps Comprehensive Income (in thousands) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net Income | $26,176 | $10,902 | | Unrealized gain (loss) on interest rate swaps, net | $4,275 | $(8,880) | | **Comprehensive Income** | **$30,451** | **$2,022** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2021, net cash from operating activities was $94.5 million, while net cash used in investing activities was $127.5 million, primarily for real estate acquisitions, and net cash provided by financing activities was $42.1 million Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $94,459 | $108,625 | | Net cash used in investing activities | $(127,452) | $(181,316) | | Net cash provided by financing activities | $42,072 | $71,016 | | **Net increase (decrease) in Cash** | **$9,079** | **$(1,675)** | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, real estate acquisitions and dispositions, debt structure, equity transactions, and subsequent events - The company is a REIT focused on leasing Class A commercial properties to U.S. Government agencies, owning **83 operating properties** (**7.5M sq ft**) and one property under development as of Sep 30, 2021[23](index=23&type=chunk)[24](index=24&type=chunk) - During the first nine months of 2021, the company acquired **six operating properties** for an aggregate purchase price of **$134.0 million**[32](index=32&type=chunk) - The company sold **two properties**, SSA – Mission Viejo and United Technologies – Midland, for net proceeds of **$3.3 million** and **$4.0 million** respectively, recognizing a total gain of **$1.3 million**[35](index=35&type=chunk)[36](index=36&type=chunk) - Subsequent to the quarter-end, the company formed a joint venture to acquire a portfolio of **ten VA properties** for **$635.6 million** and also acquired **two other properties**[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results of operations, focusing on its U.S. Government-leased property portfolio, liquidity, and reconciliation of Net Income to non-GAAP FFO - The company's portfolio consists of **83 operating properties**, which are **99% leased**, with U.S. Government tenants accounting for **98.6%** of the company's annualized lease income[114](index=114&type=chunk)[121](index=121&type=chunk) Results of Operations (Nine Months Ended Sep 30) | Metric | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $203.2M | $179.9M | +$23.3M | | Total Expenses | $150.6M | $142.4M | +$8.2M | | Net Income | $26.2M | $10.9M | +$15.3M | FFO Reconciliation (Nine Months Ended Sep 30) | Metric (in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | FFO | $92,430 | $81,634 | | FFO, as Adjusted | $86,676 | $78,698 | - The company maintains liquidity through cash, operating cash flow, its revolving credit facility (**$337.5 million available** as of Sep 30, 2021), and equity/debt issuances[172](index=172&type=chunk)[173](index=173&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its variable-rate debt, with 87.4% of its debt fixed-rate as of September 30, 2021, and ongoing monitoring of the LIBOR to SOFR transition - As of Sep 30, 2021, **87.4%** of the company's debt was fixed-rate, with **$128.2 million** (**12.6%**) subject to variable rates[220](index=220&type=chunk) - A **25 basis point** fluctuation in market interest rates would change annual interest expense by **$0.3 million**[220](index=220&type=chunk) - The company is monitoring the planned phase-out of LIBOR after June 30, 2023, and its transition to alternative rates like SOFR[221](index=221&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of September 30, 2021[222](index=222&type=chunk) - No material changes were identified in the internal control over financial reporting during the third quarter of 2021[223](index=223&type=chunk) Part II: Other Information [Legal Proceedings](index=43&type=section&id=Item%201%3A%20Legal%20Proceedings) The company reports that it is not currently involved in any material litigation, nor is it aware of any threatened material litigation - The company is not currently involved in any material legal proceedings[225](index=225&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A%3A%20Risk%20Factors) The report states there are no material changes to the risk factors disclosed in the 2020 Annual Report on Form 10-K, except for an updated risk factor concerning joint ventures - A new risk factor was added regarding joint ventures, citing risks like partner financial distress, inconsistent goals, and potential impasses on key decisions[227](index=227&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[228](index=228&type=chunk) [Defaults Upon Senior Securities](index=43&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reports that this item is not applicable - Not applicable[229](index=229&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) The company reports that this item is not applicable - Not applicable[230](index=230&type=chunk) [Other Information](index=43&type=section&id=Item%205%3A%20Other%20Information) The company reported no other information for this item - None[231](index=231&type=chunk) [Exhibits](index=44&type=section&id=Item%206%3A%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amended credit agreements, a purchase and sale agreement, and officer certifications required by the SEC - Lists exhibits filed with the report, such as credit agreements, a major purchase agreement, and officer certifications[233](index=233&type=chunk)