WASHINGTON--(BUSINESS WIRE)--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 and full year ended December 31, 2023. Highlights for the Quarter Ended December 31, 2023: Net income of $4.8 million, or $0.04 per share on a fully dilut ...

Financial Performance - Total revenues for the twelve months ended December 31, 2023, were $287.227 million, a decrease from $293.606 million in the same period in 2022[2] - Net income available to Easterly Government Properties, Inc. for the twelve months ended December 31, 2023, was $18.804 million, down from $31.474 million in 2022[2] - Core FFO for the twelve months ended December 31, 2023, was $120.139 million, compared to $130.885 million in 2022[4] - Cash Available for Distribution (CAD) for the twelve months ended December 31, 2023, was $94.835 million, a decrease from $108.527 million in 2022[4] - Net income for Q4 2023 was $4.787 million, compared to $18.420 million in Q4 2022[26] - Funds From Operations (FFO) for Q4 2023 were $29.883 million, down from $30.868 million in Q4 2022[26] - Core FFO for Q4 2023 was $30.134 million, compared to $31.241 million in Q4 2022[26] - Cash Available for Distribution (CAD) for Q4 2023 was $21.862 million, slightly up from $21.687 million in Q4 2022[26] - EBITDA for Q4 2023 was $43.953 million, compared to $44.468 million in Q4 2022[33] - Pro forma EBITDA, assuming a full quarter of operations from properties acquired in Q4 2023, was $44.032 million[33] - Rental income for the three months ended December 31, 2023, was $10.652 million, with Easterly's share at $5.646 million[35] - Total revenues for the twelve months ended December 31, 2023, were $40.693 million, with Easterly's share at $21.567 million[35] - EBITDA for the twelve months ended December 31, 2023, was $25.362 million, with Easterly's share at $13.427 million[35] - Core FFO for the twelve months ended December 31, 2023, was $24.940 million, with Easterly's share at $13.203 million[35] Lease and Tenant Information - The U.S. Government accounted for 97.3% of the total annualized lease income as of December 31, 2023[5] - Weighted average remaining lease term for all tenants as of December 31, 2023, was 10.5 years[5] - Total leased square feet as of December 31, 2023, was 8,805,050, with the U.S. Government occupying 96.0% of the leased space[5] - The U.S. Department of Veteran Affairs ("VA") accounts for 23.3% of leased square feet, generating $88,091,238 in annualized lease income, which is 27.7% of total lease income[7] - The Federal Bureau of Investigation ("FBI") leases 1,501,720 square feet, contributing $52,774,609 in annualized lease income, representing 16.7% of total lease income[7] - The Drug Enforcement Administration ("DEA") occupies 607,064 square feet, with annualized lease income of $27,846,156, making up 8.8% of total lease income[7] - The Judiciary of the U.S. ("JUD") leases 401,610 square feet, generating $16,839,813 in annualized lease income, which is 5.3% of total lease income[7] - U.S. Citizenship and Immigration Services ("USCIS") accounts for 5.9% of leased square feet, contributing $14,955,067 in annualized lease income, representing 4.7% of total lease income[7] - The Environmental Protection Agency ("EPA") leases 225,418 square feet, with annualized lease income of $9,230,618, making up 2.9% of total lease income[7] - The Food and Drug Administration ("FDA") occupies 129,314 square feet, generating $9,152,747 in annualized lease income, which is 2.9% of total lease income[7] - The U.S. Joint Staff Command ("JSC") leases 403,737 square feet, contributing $8,427,298 in annualized lease income, representing 2.7% of total lease income[7] - The Internal Revenue Service ("IRS") accounts for 2.7% of leased square feet, with annualized lease income of $7,998,696, making up 2.5% of total lease income[7] - Immigration and Customs Enforcement ("ICE") leases 183,894 square feet, generating $7,871,695 in annualized lease income, which is 2.5% of total lease income[7] - Total annualized lease income for wholly owned U.S. government leased properties is $310,282,360, with VA - Loma Linda contributing the highest at $10,282,360 (5.2% of total)[43] - USCIS - Kansas City has the largest leased square footage at 416,399 sq ft, generating $8,000,000 in annualized lease income (3.2% of total)[43] - FDA - Lenexa laboratory achieves the highest annualized lease income per square foot at $71.28, contributing $4,254,683 (1.3% of total)[43] - DEA - Pleasanton laboratory has the highest lease income per square foot among DEA properties at $65.11, generating $2,765,720 (0.9% of total)[44] - VA - San Jose outpatient clinic shows strong performance with $64.06 lease income per square foot, contributing $5,770,504 (1.8% of total)[43] - FBI - Tampa office has the longest lease term extending to 2040, generating $5,313,544 annually (1.7% of total)[43] - DEA - Dallas Lab maintains a high lease income per square foot at $55.78, contributing $2,773,342 (0.9% of total)[44] - JUD - El Centro courthouse/office achieves $64.62 lease income per square foot, generating $2,800,983 (0.9% of total)[44] - CBP - Savannah laboratory shows strong performance with $64.80 lease income per square foot, contributing $2,267,962 (0.7% of total)[44] - NARA - Broomfield office/warehouse has the lowest lease income per square foot at $14.68, generating $2,373,591 (0.7% of total)[44] - Total leased square footage as of December 31, 2023, is 8,805,050 square feet, with an annualized lease income of $316,793,566[46] - Wholly owned U.S. government leased properties account for 85.5% of total annualized lease income, totaling $270,421,014[45] - The VA - Phoenix property contributes 3.4% of total annualized lease income with $10,678,873 in revenue[46] - Lease expirations in 2024 account for 1.8% of total leased square footage, with $5,504,512 in annualized lease income[52] - The VA - San Antonio property generates $9,185,752 in annualized lease income, representing 2.9% of total income[46] - The weighted average annualized lease income per leased square foot across all properties is $35.98[46] - Lease expirations in 2033 account for 5.9% of total leased square footage, with $20,815,244 in annualized lease income[52] - The VA - Marietta property has the highest annualized lease income per square foot at $51.45[46] - Lease expirations beyond 2033 account for 51.7% of total leased square footage, with $178,692,286 in annualized lease income[52] Debt and Liquidity - Net Debt stood at $1.289 billion as of December 31, 2023, with a Net Debt to Total Enterprise Value ratio of 47.1%[26] - Total enterprise value was $2.736 billion as of December 31, 2023[26] - Liquidity as of December 31, 2023 included $10.250 million in cash and $370.875 million available under a $450 million senior unsecured revolving credit facility[26] - Total unsecured debt as of December 31, 2023, was $1.079 billion, representing 82.9% of total indebtedness[36] - Secured mortgage debt as of December 31, 2023, was $220.597 million, representing 17.1% of total indebtedness[36] - Weighted average maturity of total debt as of December 31, 2023, was 4.6 years, with a weighted average interest rate of 4.2%[40] - Net debt as of December 31, 2023, was $1.289 billion, adjusted net debt was $1.235 billion[40] - Scheduled maturities for 2024 include $100.000 million of unsecured debt and $59.895 million of secured debt[42] - Total debt maturing in 2027 includes $95.000 million of unsecured debt and $134.640 million of secured debt[42] Property and Development - The FDA - Atlanta project, a laboratory under construction, has an anticipated total cost of $229.053 million and is expected to be completed in Q4 2025[6] - The company owns 53.0% of properties through an unconsolidated joint venture[34] - The company owns 53.0% of the properties through an unconsolidated joint venture[51] Expenses - Depreciation and amortization expenses for the twelve months ended December 31, 2023, were $91.292 million, down from $98.254 million in 2022[2] - Interest expense, net for the twelve months ended December 31, 2023, was $49.169 million, compared to $47.378 million in 2022[2]

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, 2023 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) (State or other jurisdiction of incorporatio ...

WASHINGTON--(BUSINESS WIRE)--Easterly Government Properties, Inc. (NYSE: DEA), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to U.S. Government agencies, announced today that its Board of Directors has approved a quarterly cash dividend of $0.265 per common share. The dividend will be payable on March 18, 2024 to shareholders of record on March 6, 2024. *Anticipated annual dividend yield on investment ...

The S&P 500 has never been higher, but some stocks still look extremely cheap. In this video, Fool.com contributors Matt Frankel and Tyler Crowe discuss two that they still think are bargains.*Stock prices used were the afternoon prices of Jan. 25, 2024. The video was published on Jan. 26, 2024. ...

Easterly Government Properties, Inc. (NYSE:DEA) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET Company Participants Lindsay Winterhalter - Head, IR Darrell Crate - Chairman William Trimble - President and CEO Meghan Baivier - EVP, CFO, and COO Conference Call Participants Michael Griffin - Citi John Kim - BMO Capital Markets Bill Crow - Raymond James Aditi Balachandran - RBC Capital Markets Peter Abramowitz - Jefferies Operator Greetings. Welcome to the Easterly Government Properties' Third Q ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the quarterly period ended September 30, 2023 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) (State of Incorporation) (IRS Employer Identification No.) 2001 K Street NW, Suite 775 North, Washington, D.C. 20006 (Address of Principal Executive Offices) ( ...

Easterly Government Properties, Inc. (NYSE:DEA) Q2 2023 Earnings Conference Call August 8, 2023 11:00 AM ET Company Participants Lindsay Winterhalter - Head of Investor Relations Darrell Crate - Chairman William Trimble - President and Chief Executive Officer Meghan Baivier - Executive Vice President, Chief Financial and Chief Operating Officer Conference Call Participants Michael Griffin - Citigroup Inc. Peter Abramowitz - Jefferies LLC Operator Greetings. Welcome to the Easterly Government Properties Seco ...

Financial Performance - Total revenues for Q2 2023 were $71,373,000, a decrease of 1.9% compared to $72,757,000 in Q2 2022[8] - Net income for Q2 2023 was $5,778,000, down 29.5% from $8,130,000 in Q2 2022[10] - Comprehensive income for Q2 2023 was $8,885,000, down from $11,033,000 in Q2 2022[10] - Net income for the six months ended June 30, 2023, was $10,192,000, a decrease of 37.5% compared to $16,393,000 in 2022[12] - Basic and diluted earnings per share (EPS) for Q2 2023 were both $0.05, compared to $0.08 in Q2 2022, reflecting a 37.5% decrease[74] - The company's share of net income for the six months ended June 30, 2023, was $2,820,000, compared to $1,456,000 for the same period in 2022, indicating a significant growth[34] Revenue Sources - Rental income decreased to $67,758,000 in Q2 2023 from $71,156,000 in Q2 2022, reflecting a decline of 4.5%[8] - Revenue from tenant construction projects for Q2 2023 was $2.765 million, significantly up from $1.102 million in Q2 2022, marking a 150.5% increase[82] - Asset management income for Q2 2023 was $0.5 million, an increase from $0.3 million in Q2 2022, representing a 66.7% growth[90] - The company recognized $0.1 million in parking garage income for both Q2 2023 and Q2 2022, indicating stable revenue from this source[84] Assets and Liabilities - Total assets as of June 30, 2023, were $2,807,963,000, a slight decrease from $2,829,385,000 as of December 31, 2022[6] - Total liabilities decreased to $1,385,896,000 as of June 30, 2023, from $1,418,403,000 at the end of 2022[6] - The total debt as of June 30, 2023, was $1,221,180,000, with a revolving credit facility of $53,000,000 and various term loan facilities totaling $250,000,000[35] - The balance in accounts receivable related to tenant construction projects was $8.2 million as of June 30, 2023, up from $6.8 million at the end of 2022[82] Cash Flow and Investments - The company reported a net cash provided by operating activities of $59,052,000 for the six months ended June 30, 2023[12] - Net cash used in investing activities was $20,967,000, significantly lower than $147,028,000 in the prior year[12] - Cash paid for interest increased to $23,555,000 in 2023 from $21,766,000 in 2022, reflecting a rise of 8.2%[14] Shareholder Equity and Dividends - Stockholders' equity as of June 30, 2023, was $1,422,067, reflecting a net income of $5,778 for the three months ended June 30, 2023[63] - The company declared dividends of $0.265 per common share for both Q2 2023 and Q2 2022[8] - The balance of common stock increased to 93,415,706 shares by June 30, 2023, up from 90,814,021 shares at the end of 2022[65] Real Estate and Occupancy - As of June 30, 2023, the company wholly owned 78 operating properties and had an occupancy rate of 98% across approximately 8.6 million leased square feet[19] - The total real estate properties, net, amounted to $2,270,435,000, with land valued at $213,592,000 and buildings and improvements at $2,292,532,000[26] - The U.S. Government accounted for approximately 98.5% of total annualized lease income as of June 30, 2023[88] Financial Instruments and Risk Management - The company entered into three SOFR-based interest rate swaps with a total notional value of $300.0 million, designated as cash flow hedges of interest rate risk[39] - The fair value of interest rate swaps as of June 30, 2023, was recorded as an asset of $5,114,000[45] - The company estimates that $4.3 million will be reclassified from Accumulated Other Comprehensive Income (AOCI) as a decrease to interest expense over the next 12 months[47] Compensation and Equity Awards - The total compensation expense related to restricted common stock awards was $0.3 million for the six months ended June 30, 2023[54] - The fair value of LTIP units that vested was $4.0 million during the six months ended June 30, 2023[61] - The company granted 515,465 LTIP units during the six months ended June 30, 2023[58]

Financial Data and Key Metrics Changes - For Q1 2023, net income per share was $0.04, and core FFO per share was $0.29, with cash available for distribution at $24.5 million [19] - Total indebtedness was approximately $1.2 billion at a weighted average interest rate of 3.7%, with 96% of outstanding debt fixed [19] - The net debt to annualized quarterly EBITDA ratio stood at 7.2x, with over $400 million in capacity on the line of credit and an additional $50 million available under the 2018 term loan [19] Business Line Data and Key Metrics Changes - The company owned 86 operating properties comprising approximately 8.6 million lease square feet, with a weighted average age of 14.1 years and a weighted average remaining lease term of 10.4 years [33] - The average rent renewal spread from 2020 to present is expected to be 23% with an average term of over 18 years [14] Market Data and Key Metrics Changes - The office sector is facing challenges due to work-from-home trends, occupancy rates, local rental rates, and potential layoffs across various industries [13] - Only 51% of Easterly's annualized lease income comes from office assets, which is expected to decrease with the acquisition of additional VA properties [30] Company Strategy and Development Direction - The company is focused on acquiring mission-critical assets leased to the U.S. federal government, with plans to restart growth by acquiring such assets as inflation shows signs of cooling [27] - Easterly is maintaining an active presence in the acquisition market despite a decline in transaction volume, aiming for accretive acquisitions of bullseye properties [12] - The company is positioned to take advantage of potential distress in development projects over the next 18 months due to liquidity issues faced by over-leveraged developers [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the company will not face issues during potential government shutdowns, as they are funded through the end of the fiscal year [52] - The company believes it is well-positioned to capitalize on opportunities in the market, with a strong balance sheet compared to regional developers [27] - Management highlighted the importance of their unique portfolio focused on government infrastructure, differentiating them from typical office businesses [15][24] Other Important Information - The company has transitioned to a core FFO metric for 2023, which adjusts FFO to present a clearer picture of operating performance [34] - The full-year 2023 core FFO per share guidance is maintained in the range of $1.12 to $1.15, assuming the closing of specific properties and development-related investments [48] Q&A Session Summary Question: Are there any issues around OpEx or G&A to consider for forward earnings estimates? - Management indicated that they are running at a level just shy of the mid-point of guidance, with expectations for renewals and TI work to continue, offset by expiring interest rate swaps [38] Question: Do buildings shut down concurrently with government shutdowns? - Management confirmed that buildings do not shut down concurrently with government shutdowns [53] Question: What cap rates are needed for attractive bullseye properties? - Management stated that high-6s cap rates would be acceptable, and they are prepared to act on high-quality assets as they become available [54] Question: What types of investments are being targeted currently? - Management highlighted a healthy uptick in development opportunities and a narrowing in the acquisition market, indicating a readiness to pursue various types of deals [56][57] Question: How comfortable is the company with dividend coverage? - Management expressed confidence in the strength of underlying U.S. government-backed cash flows, maintaining a consistent dividend policy [70]