Financial Data and Key Metrics Changes - For Q4 2022, net income per share was $0.18, FFO per share was $0.30, and FFO as adjusted per share was $0.29. For the full year 2022, net income per share was $0.35, FFO per share was $1.27, and FFO as adjusted per share was $1.26 [21][54] - Cash available for distribution was $21.7 million for Q4 2022 and $108.5 million for the year ended December 31, 2022 [21] Business Line Data and Key Metrics Changes - The company acquired seven properties in 2022, totaling over 800,000 square feet of government-leased space, focusing on newer buildings with strong cash flow visibility [14] - The company executed 13 renewals in 2022, achieving an average rent spread of 8% on the remaining 11 renewals, with an average total renewal term of 15 years [25] Market Data and Key Metrics Changes - The company noted a widening bid-ask spread in the market due to rising interest rates, affecting asset pricing [12] - The company has a total indebtedness of approximately $1.3 billion, with a net debt to annualized quarterly pro forma EBITDA ratio of 7.1 times [49] Company Strategy and Development Direction - The company is maintaining an active presence in the acquisition market but remains cautious due to rising capital costs, focusing only on accretive deals [15] - The company executed its first portfolio disposition, selling 10 buildings to enhance the quality and NAV of its remaining portfolio [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business despite short-term challenges from rising capital costs and a slow transaction market [20] - The company anticipates increased demand for its facilities as the population grows, benefiting occupancy needs over time [11] Other Important Information - The company has over $434 million in debt capacity and nearly $93 million in unsettled forward equity, providing ample opportunity for accretive deals [24] - The company is transitioning its guidance to a core FFO metric for 2023, with guidance for core FFO per share in the range of $1.12 to $1.15 [26][54] Q&A Session Questions and Answers Question: Can you provide color around operating expenses and interest expense for 2023? - Management indicated that inflationary expectations in commodities and labor costs are influencing the bridge to 2023 guidance [57] Question: Where would cap rates need to be for more accretive acquisitions? - Management noted that cap rates in the high-6s to low-7s range would be more favorable for acquisitions, but the market has not yet reached that point [60] Question: Have you closed on the Jacksonville property? - Management confirmed that the Jacksonville property has not yet closed and is assumed to be later on [70]

Property Ownership and Operations - As of December 31, 2022, the company wholly owned 78 operating properties and had a total of approximately 8.7 million leased square feet, with an occupancy rate of 99%[17] - The weighted average age of the company's properties was approximately 13.8 years, and the weighted average remaining lease term was about 10.3 years[19] - The company has developed approximately 4.6 million square feet of U.S. Government-leased properties, including 40 build-to-suit projects[19] - As of December 31, 2022, U.S. Government tenant agencies accounted for 97.1% of the company's annualized lease income[24] - The company has properties leased to various government agencies, ensuring a stable tenant base and reduced vacancy risk[157] - The total square footage of properties leased to government agencies is 7,639,583, which constitutes 87.2% of the total portfolio[158] - The company’s portfolio is primarily leased to U.S. Government agencies, ensuring a stable tenant base[165] - The company has a diverse portfolio with properties located in various states, including California, Texas, and Virginia, enhancing geographic risk mitigation[157] Financial Performance - Total revenues increased by $18.7 million to $293.6 million for the year ended December 31, 2022, compared to $274.9 million for the year ended December 31, 2021[197] - Rental income rose by $17.1 million, primarily due to revenues from three operating properties acquired since December 31, 2021, and favorable lease renewals[198] - The company recognized a gain on the sale of operating properties of $13.6 million for the year ended December 31, 2022, compared to a gain of $1.3 million for the year ended December 31, 2021[208] - Total expenses increased by $18.2 million to $222.1 million for the year ended December 31, 2022, compared to $203.8 million for the year ended December 31, 2021[201] - Interest expense, net increased by $8.7 million to $47.4 million for the year ended December 31, 2022, primarily due to issuances of $250.0 million of outstanding fixed-rate, senior unsecured notes in 2021[207] Debt and Financing - The company had total indebtedness of approximately $1.3 billion as of December 31, 2022, including $65.5 million outstanding under its revolving credit facility[20] - The company had $240.6 million of combined U.S. property mortgages and other secured debt as of December 31, 2022, which includes restrictive covenants that could limit operational flexibility[113] - The company had $81.2 million of outstanding consolidated debt bearing interest at variable rates, exposing it to interest rate risk that could increase expenses and affect cash flow[114] - The company had six interest rate swaps in place with an aggregate notional value of $250.0 million to mitigate exposure to interest rate fluctuations[116] - High mortgage rates or unavailability of mortgage debt may hinder the company's ability to finance or refinance properties, affecting cash distributions[120] Employee Relations and Corporate Governance - The company had 54 employees as of December 31, 2022, with a good relationship with its workforce[22] - The company maintains cash- and equity-based compensation programs to attract and retain employees, emphasizing diversity and inclusion[24] - The company has implemented a remote working policy to promote employee retention and flexibility[24] - The company has a gift-matching program to encourage employee volunteerism and philanthropy[31] - The board of directors has the authority to change policies without stockholder approval, including investment and dividend policies[103] Risks and Challenges - The company is exposed to risks from natural disasters, with properties in areas vulnerable to earthquakes, wildfires, and floods, which could significantly impact financial results[55] - Economic conditions, including job losses, inflation, and rising interest rates, may adversely affect occupancy levels, rental rates, and overall market value of assets[49] - The company may struggle to collect rents from private tenants who file for bankruptcy, affecting cash flow[70] - Properties leased to U.S. Government agencies are at higher risk of terrorist attacks and civil unrest, potentially damaging assets[72] - Competition for attractive investment opportunities may increase property prices, adversely affecting profitability[73] Compliance and Regulatory Matters - Compliance with governmental regulations impacts the company's capital expenditures, earnings, and competitive position[27] - The company is organized to qualify as a REIT for U.S. federal income tax purposes, which affects its operational strategies[33] - The company must distribute at least 90% of its taxable income to maintain REIT status, or face corporate tax rates on undistributed income[126] - Noncompliance with U.S. Government contractor requirements could result in fines and loss of revenue[81] - The company may face a 100% penalty tax on prohibited transactions, which could limit its operational flexibility[137] Sustainability and Environmental Initiatives - The company is committed to sustainability and has published its inaugural Environmental, Social, and Governance (ESG) report in 2022[29] - The company has 15 ENERGY STAR certified buildings and over 45% of its assets have achieved at least one sustainability-related certification[30] - The company may face increased capital expenditures to improve energy efficiency in response to climate change regulations, impacting financial condition[58] Market and Stock Performance - The market price and trading volume of the company's common stock may be volatile, influenced by various economic and operational factors[121] - Future issuances of common stock could adversely affect the market price per share, with substantial sales potentially leading to a decrease in stock value[125] - The company has a share repurchase program that may affect stock price volatility and liquidity, potentially diminishing cash reserves for future growth[124]

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) | --- | --- | --- | --- | |----------------- ...