Easterly Government Properties(US:DEA)2021-08-02 16:00Financial Performance - Total revenues for the three months ended June 30, 2021, were $68,614,000, an increase of 13.4% compared to $60,526,000 for the same period in 2020[11] - Net income for the six months ended June 30, 2021, was $17,134,000, compared to $6,081,000 for the same period in 2020, representing an increase of 181.5%[13] - Rental income for the three months ended June 30, 2021, was $66,095,000, up 11.4% from $59,550,000 in the same period of 2020[11] - Comprehensive income for the three months ended June 30, 2021, was $10,511,000, compared to $3,897,000 for the same period in 2020[13] - The company reported a net income of $9.3 million for the three months ended June 30, 2021, compared to $4.2 million for the same period in 2020, representing a 121.5% increase[11] - For the three months ended June 30, 2021, the company reported a net income of $9.254 million, compared to $4.163 million for the same period in 2020, representing a 122% increase[75] Assets and Liabilities - Total assets as of June 30, 2021, were $2,543,565,000, an increase from $2,457,540,000 as of December 31, 2020[9] - Total liabilities increased to $1,209,028,000 as of June 30, 2021, from $1,157,570,000 as of December 31, 2020[7] - Total real estate properties, net, amounted to $2,284,295,000 as of June 30, 2021[37] - Total debt amounted to $1,034,598,000 as of June 30, 2021, which includes $137,250,000 in revolving credit facilities and $250,000,000 in term loan facilities[40] Equity and Dividends - The company declared dividends of $0.26 per common share for both the three and six months ended June 30, 2021[11] - The total equity of the company was $1,334,537,000, an increase from $1,197,202,000 as of June 30, 2020[59] - The company paid dividends of $0.26 per share, totaling $21,808,000 for the three months ended June 30, 2021[59] - The balance of common stock increased to 83,931,290 shares as of June 30, 2021, from 75,077,197 shares as of March 31, 2020[59] Cash Flow - Net cash provided by operating activities was $56,717,000 for the six months ended June 30, 2021, down from $75,594,000 in the prior year, a decrease of 25%[17] - Net cash used in investing activities for the six months ended June 30, 2021, was $103,802,000, compared to $139,586,000 for the same period in 2020[17] - Net cash provided by financing activities for the six months ended June 30, 2021, was $47,094,000, compared to $61,860,000 for the same period in 2020[17] - Cash and cash equivalents at the end of the period on June 30, 2021, were $14,678,000, compared to $13,417,000 at the end of June 30, 2020[17] Property Acquisitions and Operations - The company acquired five operating properties for a total purchase price of $111.4 million during the six months ended June 30, 2021[32] - As of June 30, 2021, the company owned 83 operating properties, encompassing approximately 7.6 million leased square feet, with an occupancy rate of 99%[24] - The company recognized a gain on the sale of operating property of $530,000 for the six months ended June 30, 2021[11] - The company did not assume any debt upon the acquisition of properties, which generated $2.4 million in revenues and $0.5 million in net income for the six months ended June 30, 2021[33] Debt and Financing - The company plans to issue up to $250,000,000 in fixed rate, senior unsecured notes, with Series A Senior Notes at 2.62% due October 14, 2028, and Series B Senior Notes at 2.89% due October 14, 2030[43] - The fair value of the company's senior unsecured notes payable was $496,500,000 as of June 30, 2021[48] - The company has a total of $450,000,000 in notes payable, with various interest rates ranging from 3.73% to 4.30%[40] - The company increased its total borrowing capacity by $50 million, bringing the total credit facility size to $650 million, which includes a $450 million revolving credit facility and a $200 million term loan facility[96] Stock and Compensation - The company issued an aggregate of 1,556,824 shares of common stock, raising $39,958,000 in additional paid-in capital during the six months ended June 30, 2021[60] - The company recognized $2.4 million in compensation expense related to restricted common stock and LTIP unit awards for the six months ended June 30, 2021[65] - The company granted 164,178 performance-based LTIP units to management, with performance thresholds tied to total shareholder return and operational performance, vesting on December 31, 2023[60] - Stock-based compensation for the three months ended June 30, 2021, was recorded at $1,033,000[59] Market and Revenue Sources - The U.S. Government accounted for approximately 98.5% of total annualized lease income as of June 30, 2021[91] - Revenue from tenant construction projects for the three months ended June 30, 2021, was $2.094 million, compared to $496,000 for the same period in 2020, reflecting a significant increase[83] - The company recognized $0.3 million in income from COVID-19 related cleaning services during the three months ended June 30, 2021[88] Compliance and Risk Management - As of June 30, 2021, the company was in compliance with all financial and other covenants related to its debt facilities[44] - The company had not breached any provisions of its derivative agreements as of June 30, 2021[53] - The company estimates that $5,200,000 will be reclassified from AOCI as an increase to interest expense over the next 12 months[52]