Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DEA | |
Entity Registrant Name | EASTERLY GOVERNMENT PROPERTIES, INC. | |
Entity Central Index Key | 0001622194 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-36834 | |
Entity Tax Identification Number | 47-2047728 | |
Entity Address, Address Line One | 2001 K Street NW | |
Entity Address, Address Line Two | Suite 775 North | |
Entity Address, City or Town | D.C. | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 20006 | |
City Area Code | 202 | |
Local Phone Number | 595-9500 | |
Entity Common Stock, Shares Outstanding | 90,814,021 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Real estate properties, net | $ 2,463,961 | $ 2,399,188 |
Cash and cash equivalents | 11,032 | 11,132 |
Restricted cash | 10,462 | 9,011 |
Tenant accounts receivable | 60,250 | 58,733 |
Investment in unconsolidated real estate venture | 199,338 | 131,840 |
Intangible assets, net | 178,327 | 186,307 |
Interest rate swaps | 4,515 | |
Prepaid expenses and other assets | 33,765 | 29,901 |
Total assets | 2,961,650 | 2,826,112 |
Liabilities | ||
Revolving credit facility | 177,750 | 14,500 |
Term loan facilities, net | 248,879 | 248,579 |
Notes payable, net | 695,935 | 695,589 |
Mortgage notes payable, net | 247,969 | 252,421 |
Intangible liabilities, net | 19,139 | 19,718 |
Deferred revenue | 85,510 | 87,134 |
Interest rate swaps | 5,700 | |
Accounts payable, accrued expenses and other liabilities | 67,673 | 60,890 |
Total liabilities | 1,542,855 | 1,384,531 |
Equity | ||
Common stock, par value $0.01, 200,000,000 shares authorized, [90,816,622] and 90,147,868 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 908 | 901 |
Additional paid-in capital | 1,622,628 | 1,604,712 |
Retained earnings | 77,203 | 62,023 |
Cumulative dividends | (451,917) | (379,895) |
Accumulated other comprehensive income (loss) | 3,987 | (5,072) |
Total stockholders’ equity | 1,252,809 | 1,282,669 |
Non-controlling interest in Operating Partnership | 165,986 | 158,912 |
Total equity | 1,418,795 | 1,441,581 |
Total liabilities and equity | $ 2,961,650 | $ 2,826,112 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 90,814,021 | 90,147,868 |
Common Stock, shares outstanding | 90,814,021 | 90,147,868 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Rental income | $ 72,643 | $ 67,439 | $ 214,238 | $ 197,713 |
Asset management income | 377 | 942 | ||
Total revenues | 75,041 | 69,608 | 220,100 | 203,223 |
Expenses | ||||
Property operating | 17,802 | 15,188 | 48,811 | 41,578 |
Real estate taxes | 8,177 | 7,626 | 23,854 | 22,465 |
Depreciation and amortization | 25,050 | 22,765 | 73,552 | 67,615 |
Acquisition costs | 275 | 518 | 939 | 1,488 |
Corporate general and administrative | 5,870 | 5,893 | 17,819 | 17,469 |
Total expenses | 57,174 | 51,990 | 164,975 | 150,615 |
Other income (expense) | ||||
Income from unconsolidated real estate venture | 830 | 2,286 | ||
Interest expense, net | (12,408) | (9,353) | (34,729) | (27,739) |
Gain on the sale of operating property | 777 | 1,307 | ||
Impairment loss | (5,540) | (5,540) | ||
Net income | 749 | 9,042 | 17,142 | 26,176 |
Non-controlling interest in Operating Partnership | (107) | (1,065) | (1,962) | (3,007) |
Net income available to Easterly Government Properties, Inc. | $ 642 | $ 7,977 | $ 15,180 | $ 23,169 |
Net income available to Easterly Government Properties, Inc. per share: | ||||
Basic | $ 0.01 | $ 0.09 | $ 0.16 | $ 0.27 |
Diluted | $ 0.01 | $ 0.09 | $ 0.16 | $ 0.27 |
Weighted-average common shares outstanding | ||||
Basic | 90,772,706 | 83,961,693 | 90,560,471 | 83,306,654 |
Diluted | 91,119,372 | 84,472,257 | 90,886,108 | 83,774,752 |
Dividends declared per common share | $ 0.265 | $ 0.265 | $ 0.795 | $ 0.785 |
Tenant Reimbursements [Member] | ||||
Revenues | ||||
Total revenues | $ 1,616 | $ 1,527 | $ 3,676 | $ 3,746 |
Other Income [Member] | ||||
Revenues | ||||
Total revenues | $ 405 | $ 642 | $ 1,244 | $ 1,764 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 749 | $ 9,042 | $ 17,142 | $ 26,176 |
Other comprehensive income: | ||||
Unrealized gain on interest rate swaps, net | 1,806 | 1,180 | 10,216 | 4,275 |
Other comprehensive income | 1,806 | 1,180 | 10,216 | 4,275 |
Comprehensive income | 2,555 | 10,222 | 27,358 | 30,451 |
Non-controlling interest in Operating Partnership | (107) | (1,065) | (1,962) | (3,007) |
Other comprehensive income attributable to non-controlling interest | (212) | (167) | (1,157) | (450) |
Comprehensive income attributable to Easterly Government Properties, Inc. | $ 2,236 | $ 8,990 | $ 24,239 | $ 26,994 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 17,142 | $ 26,176 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 73,552 | 67,615 |
Straight line rent | 559 | (4,317) |
Income from unconsolidated real estate venture | (2,286) | |
Amortization of above- / below-market leases | (2,373) | (3,569) |
Amortization of unearned revenue | (4,313) | (4,217) |
Amortization of loan premium / discount | (844) | (57) |
Amortization of deferred financing costs | 1,538 | 1,164 |
Amortization of lease inducements | 640 | 647 |
Gain on the sale of operating property | (1,307) | |
Impairment loss | 5,540 | |
Distributions from investment in unconsolidated real estate venture | 5,432 | |
Non-cash compensation | 4,891 | 3,700 |
Other | 69 | |
Net change in: | ||
Tenant accounts receivable | 544 | (3,217) |
Prepaid expenses and other assets | (2,598) | (4,890) |
Deferred revenue associated with operating leases | 2,689 | 761 |
Principal payments on operating lease obligations | (314) | (256) |
Accounts payable, accrued expenses and other liabilities | 3,984 | 16,157 |
Net cash provided by operating activities | 103,783 | 94,459 |
Cash flows from investing activities | ||
Real estate acquisitions and deposits | (93,737) | (115,440) |
Additions to operating properties | (16,128) | (14,070) |
Additions to development properties | (8,804) | (5,278) |
Proceeds from sale of operating property, net | 7,336 | |
Distributions from investment in unconsolidated real estate venture | 609 | |
Investment in unconsolidated real estate venture | (71,253) | |
Net cash used in investing activities | (189,313) | (127,452) |
Cash flows from financing activities | ||
Payment of deferred financing costs | (3,575) | |
Issuance of common shares | 9,504 | 90,914 |
Credit facility draws | 200,750 | 159,500 |
Credit facility repayments | (37,500) | (126,250) |
Repayments of mortgage notes payable | (3,942) | (2,948) |
Dividends and distributions paid | (81,795) | (74,106) |
Payment of offering costs | (136) | (1,463) |
Net cash provided by financing activities | 86,881 | 42,072 |
Net increase in Cash and cash equivalents and Restricted cash | 1,351 | 9,079 |
Cash and cash equivalents and Restricted cash, beginning of period | 20,143 | 14,669 |
Cash and cash equivalents and Restricted cash, end of period | 21,494 | 23,748 |
Supplemental disclosure of cash flow information is as follows (amounts in thousands): | ||
Cash paid for interest, net of capitalized interest | 25,805 | 27,395 |
Supplemental disclosure of non-cash information | ||
Offering costs accrued, not paid | 16 | |
Deferred asset acquisition costs accrued, not paid | 144 | |
Contingent consideration accrued, not received | 125 | |
Contingent consideration accrued, not paid | 336 | |
Unrealized gain on interest rate swaps, net | 10,216 | 4,275 |
Properties acquired for Common Units | 17,361 | 20,790 |
Recognition of operating lease right-of-use assets | 101 | |
Recognition of liabilities related to operating lease right-of-use assets | 101 | |
Exchange of Common Units for Shares of Common Stock | ||
Non-controlling interest in Operating Partnership | (2,911) | (4,261) |
Common stock | 2 | 3 |
Additional paid-in capital | 2,909 | 4,258 |
Operating Properties [Member] | ||
Supplemental disclosure of non-cash information | ||
Additions to properties accrued, not paid | 2,731 | 1,029 |
Development Properties [Member] | ||
Supplemental disclosure of non-cash information | ||
Additions to properties accrued, not paid | $ 2,550 | $ 1,022 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation The information contained in the following notes to the consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2021, and related notes thereto, included in the Annual Report on Form 10-K of Easterly Government Properties, Inc. (the “Company”) for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2022. The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2015. The operations of the Company are carried on primarily through Easterly Government Properties LP (the “Operating Partnership”) and the wholly owned subsidiaries of the Operating Partnership. As used herein, the “Company,” “we,” “us,” or “our” refer to Easterly Government Properties, Inc. and its consolidated subsidiaries and partnerships, including the Operating Partnership, except where context otherwise requires. We are an internally managed REIT, focused primarily on the acquisition, development, and management of Class A commercial properties that are leased to U.S. Government agencies that serve essential functions. We generate substantially all of our revenue by leasing our properties to such agencies, either directly or through the U.S. General Services Administration (“GSA”). Our objective is to generate attractive risk-adjusted returns for our stockholders over the long-term through dividends and capital appreciation. We focus on acquiring, developing and managing U.S. Government leased properties that are essential to supporting the mission of the tenant agency and strive to be a partner of choice for the U.S. Government, working closely with the tenant agency to meet its needs and objectives. As of September 30, 2022, we wholly owned 88 operating properties and seven operating properties through an unconsolidated joint venture (the “JV”) in the United States, encompassing approximately 9.1 million leased square feet, including 94 operating properties that were leased primarily to U.S. Government tenant agencies and one operating property that was entirely leased to a private tenant. As of September 30, 2022, our operating properties were 99 % leased. For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned one property under development that we expect will encompass approximately 0.2 million leased square feet upon completion. The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of the Operating Partnership. We owned approximately 88.3 % of the aggregate limited partnership interests in the Operating Partnership (“common units”) at September 30, 2022. We believe that we have operated and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015. Principles of Consolidation The accompanying consolidated financial statements are presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company, Easterly Government Properties TRS, LLC, Easterly Government Services, LLC, the Operating Partnership and its other subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to state fairly the consolidated financial position of the Company at September 30, 2022 and December 31, 2021, the consolidated results of operations for the three and nine months ended September 30, 2022 and 2021, and the consolidated cash flows for the nine months ended September 30, 2022 and 2021. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, including the impact of extraordinary events such as the novel coronavirus (COVID-19) pandemic, the results of which form the basis for making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The significant accounting policies used in the preparation of the Company’s condensed consolidated financial statements are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
Real Estate and Intangibles
Real Estate and Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate and Intangibles | 3. Real Estate and Intangibles Acquisitions During the nine months ended September 30, 2022 , we acquired three operating properties in asset acquisitions, FBI – Tampa, NARA – Broomfield and JUD – Council Bluffs, for an aggregate purchase price of $ 108.1 million. We allocated the aggregate purchase price of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands): Total Real estate Land $ 9,795 Building 83,403 Acquired tenant improvements 5,386 Total real estate 98,584 Intangible assets In-place leases 7,927 Acquired leasing commissions 4,453 Total intangible assets 12,380 Intangible liabilities Below-market leases ( 2,858 ) Total intangible liabilities ( 2,858 ) Purchase price $ 108,106 The intangible assets and liabilities of operating properties acquired during the nine months ended September 30, 2022 have a weighted average amortization period of 15.5 years as of September 30, 2022. During the nine months ended September 30, 2022 , we included $ 3.0 million of revenues and $ 1.0 million of net income in our Consolidated Statements of Operations related to the operating properties acquired. During the nine months ended September 30, 2022, we incurred $ 0.9 million of acquisition-related expenses mainly consisting of internal costs associated with property acquisitions and future acquisitions. Consolidated Real Estate and Intangibles Real estate and intangibles consisted of the following as of September 30, 2022 (amounts in thousands): Total Real estate properties, net Land $ 231,599 Building and improvements 2,426,241 Acquired tenant improvements 95,403 Construction in progress 39,338 Accumulated depreciation ( 328,620 ) Total Real estate properties, net 2,463,961 Intangible assets, net In-place leases 293,642 Acquired leasing commissions 75,964 Above market leases 17,541 Payment in lieu of taxes 6,394 Accumulated amortization ( 215,214 ) Total Intangible assets, net 178,327 Intangible liabilities, net Below market leases ( 76,745 ) Accumulated amortization 57,606 Total Intangible liabilities, net ( 19,139 ) During the quarter ended September 30, 2022, the Company recognized an impairment loss totaling approximately $ 5.5 million for its ICE – Otay property in order to reduce its carrying value to its estimated fair value, which declined due to changes in expected cash flows related to the existing tenant's lease expiration in 2022. ICE – Otay is a 47,919 rentable square foot office building located in San Diego, California. See Note 7 for additional information. No operating properties were disposed of during the nine months ended September 30, 2022. The following table summarizes the scheduled amortization of the Company’s acquired above- and below-market lease intangibles for each of the five succeeding years as of September 30, 2022 (amounts in thousands): Acquired Above-Market Lease Intangibles Acquired Below-Market Lease Intangibles 2022 $ 349 $ ( 1,117 ) 2023 1,390 ( 4,307 ) 2024 1,341 ( 3,160 ) 2025 1,286 ( 2,454 ) 2026 1,217 ( 2,216 ) Above-market lease amortization reduces Rental income on our Consolidated Statements of Operations and below-market lease amortization increases Rental income on our Consolidated Statements of Operations. |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Venture | 9 Months Ended |
Sep. 30, 2022 | |
Unconsolidated Real Estate Venture [Abstract] | |
Investments in Unconsolidated Real Estate Venture | 4. Investment in Unconsolidated Real Estate Venture The following is a summary of our investment in the JV (dollars in thousands): As of September 30, Joint Venture Ownership Interest 2022 MedBase Venture 53.0 % $ 199,338 On October 13, 2021, we formed an unconsolidated real estate venture, which we refer to as the JV, with a global investor to fund the acquisition of a portfolio of ten properties anticipated to encompass 1,214,165 leased square feet ("the "VA Portfolio"). We own a 53.0 % interest in the JV, subject to preferred allocations as provided in the JV agreement. During the nine months ended September 30, 2022 , the JV acquired three properties VA – Birmingham, VA – Marietta and VA – Columbus, for an aggregate purchase price of $ 135.3 million. As of September 30, 2022 seven of the ten properties in the VA Portfolio had been acquired by the JV. We provide asset management services to the JV. We recognized asset management service revenue of $ 0.4 million and $ 0.9 million for the three and nine months ended September 30, 2022, respectively. On January 20, 2022, the JV issued 125 Series A Preferred Units (“preferred units”) which resulted in net proceeds of $ 0.1 million. Holders of the preferred units are entitled to receive, when declared, cumulative preferential cash distributions. The following is a summary of financial information for the JV (amounts in thousands): As of September 30, Balance sheet information: 2022 Real estate, net (1) $ 313,768 Other assets, net 71,116 Total assets $ 384,884 Total liabilities (2) $ 9,407 Total equity 375,477 Total liabilities and equity $ 384,884 Company’s share of equity $ 198,963 Basis differential (3) 375 Carrying value of the Company’s investment in the unconsolidated venture $ 199,338 (1) At September 30, 2022 , this amount included right-of-use assets - finance leases totaling approximately $ 4.9 million representing a ground lease at VA – Lubbock. (2) At September 30, 2022 , this amount included lease liabilities - finance leases totaling approximately $ 5.0 million representing a ground lease at VA – Lubbock. (3) This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level. For the three months ended September 30, For the nine months ended September 30, Income statement information: 2022 2021 2022 2021 Total revenue $ 7,136 $ — $ 17,799 $ — Operating income 1,608 — 4,436 — Net income 1,567 — 4,313 — Company’s share of net income $ 830 $ — $ 2,286 $ — |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt At September 30, 2022, our consolidated borrowings consisted of the following (amounts in thousands): Principal Outstanding Interest Current Loan September 30, 2022 Rate (1) Maturity Revolving credit facility: Revolving credit facility (2) $ 177,750 L + 135 bps July 2025 (3) Total revolving credit facility 177,750 Term loan facilities: 2016 term loan facility 100,000 2.77 % (5) March 2024 2018 term loan facility (4) 150,000 4.01 % (6) July 2026 Total term loan facilities 250,000 Less: Total unamortized deferred financing fees ( 1,121 ) Total term loan facilities, net 248,879 Notes payable: 2017 series A senior notes 95,000 4.05 % May 2027 2017 series B senior notes 50,000 4.15 % May 2029 2017 series C senior notes 30,000 4.30 % May 2032 2019 series A senior notes 85,000 3.73 % September 2029 2019 series B senior notes 100,000 3.83 % September 2031 2019 series C senior notes 90,000 3.98 % September 2034 2021 series A senior notes 50,000 2.62 % October 2028 2021 series B senior notes 200,000 2.89 % October 2030 Total notes payable 700,000 Less: Total unamortized deferred financing fees ( 4,065 ) Total notes payable, net 695,935 Mortgage notes payable: DEA – Pleasanton 15,700 L + 150bps (7) October 2023 VA – Golden 8,692 5.00 % (7) April 2024 MEPCOM – Jacksonville (8) 5,858 4.41 % (7) October 2025 USFS II – Albuquerque 13,879 4.46 % (7) July 2026 ICE – Charleston 13,792 4.21 % (7) January 2027 VA – Loma Linda 127,500 3.59 % (7) July 2027 CBP – Savannah 10,595 3.40 % (7) July 2033 USCIS – Kansas City 51,500 3.68 % (7) August 2024 Total mortgage notes payable 247,516 Less: Total unamortized deferred financing fees ( 1,519 ) Less: Total unamortized premium/discount 1,972 Total mortgage notes payable, net 247,969 Total debt $ 1,370,533 (1) At September 30, 2022, the one-month LIBOR (“L”) was 3.14 %. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for each of our $ 450.0 million senior unsecured revolving credit facility (our “revolving credit facility”), our $ 200.0 million senior unsecured term loan facility (as amended, our “2018 term loan facility”) and our $ 100.0 million senior unsecured term loan facility (our “2016 term loan facility”) is based on the Company’s consolidated leverage ratio, as set forth in the respective loan agreements. (2) Our revolving credit facility had available capacity of $ 272.1 million at September 30, 2022 with an accordion feature that permits us to request additional lender commitments for up to $ 250.0 million of additional capacity, subject to the satisfaction of customary terms and conditions. (3) Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee . (4) Our 2018 term loan facility has undrawn capacity up to $ 50.0 million of which is available during a delayed draw period. (5) Entered into two interest rate swaps with an effective date of March 29, 2017 with an aggregate notional value of $ 100.0 million to effectively fix the interest rate at 2.77 % annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement. (6) Entered into four interest rate swaps with an effective date of December 13, 2018 with an aggregate notional value of $ 150.0 million to effectively fix the interest rate at 4.01 % annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. (7) Effective interest rates are as follows: DEA – Pleasanton 1.80 %, VA – Golden 5.03 %, MEPCOM – Jacksonville 3.89 %, USFS II Albuquerque 3.92 %, ICE – Charleston 3.93 %, VA – Loma Linda 3.78 %, CBP – Savannah 4.12 %, USCIS – Kansas City 2.05 %. (8) On October 27, 2022, the Company extinguished the mortgage note obligation on MEPCOM - Jacksonville in conjunction with the sale of the property. See Note 15 for additional information. As of September 30, 2022 , the net carrying value of real estate collateralizing our mortgages payable totaled $ 373.6 million. See Note 7 for the fair value of our debt instruments. On July 22, 2022, we entered into the first amendment to our second amended and restated senior credit agreement (the “first amendment”). The first amendment extended the deadline for the $ 50.0 million delayed draw portion of the 2018 term loan to July 24, 2023 (from July 22, 2022 ). Financial Covenant Considerations As of September 30, 2022, we were in compliance with all financial and other covenants related to our debt. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 6. Derivatives and Hedging Activities The following table sets forth the key terms and fair values of our interest rate swap derivatives, each of which was designated as a cash flow hedge as of September 30, 2022 (amounts in thousands): Notional Amount Fixed Rate Floating Rate Index Effective Date Expiration Date Fair Value $ 100,000 1.41 % One-Month LIBOR March 29, 2017 September 29, 2023 $ 2,881 $ 150,000 2.71 % One-Month LIBOR December 13, 2018 June 19, 2023 $ 1,634 The table below sets forth the fair value of our interest rate derivatives as well as their classification on our Consolidated Balance Sheet (amounts in thousands): Balance Sheet Line Item As of September 30, 2022 Interest rate swaps - Asset $ 4,515 Interest rate swaps - Liability $ — Cash Flow Hedges of Interest Rate Risk The gains or losses on derivatives designated and that qualify as cash flow hedges is recorded in Accumulated other comprehensive income (loss) (“AOCI”) and will be reclassified to interest expense in the period that the hedged forecasted transactions affect earnings on the Company’s variable rate debt. The Company estimates that $ 4.5 million will be reclassified from AOCI as a decrease to interest expense over the next 12 months. The table below presents the effects of our interest rate derivatives on our Consolidated Statements of Operations and Comprehensive Income (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Unrealized gain (loss) recognized in AOCI $ 1,801 $ ( 160 ) $ 8,046 $ 324 Loss reclassified from AOCI into interest expense ( 5 ) ( 1,340 ) ( 2,170 ) ( 3,951 ) Credit-Risk-Related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on such indebtedness. As of September 30, 2022 , the Company did no t have any derivates in a net liability position. As of September 30, 2022 , the Company was in compliance with these agreements and had not posted any collateral related to these agreements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements Accounting standards define fair value as the exit price, or the amount that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standards also establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The hierarchy of these inputs is broken down into three levels: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Categorization within the valuation hierarchy is based upon the lowest level of input that is most significant to the fair value measurement. Recurring fair value measurements The fair values of our interest rate swaps are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities in such interest rates. While the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of September 30, 2022 were classified as Level 2 of the fair value hierarchy. The carrying values of cash and cash equivalents, restricted cash, accounts receivable, other assets and accounts payable and accrued expenses are reasonable estimates of fair values because of the short maturities of these instruments. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall (amounts in thousands): As of September 30, 2022 Balance Sheet Line Item Level 1 Level 2 Level 3 Interest rate swaps - Asset $ — $ 4,515 $ — Interest rate swaps - Liability $ — $ — $ — For our disclosure of debt fair values, we estimated the fair value of our 2016 term loan facility and our 2018 term loan facility based on the variable interest rate and credit spreads (categorized within Level 3 of the fair value hierarchy) and estimated the fair value of our other debt based on the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximate current market rates for loans, or groups of loans, with similar maturities and credit quality, and the estimated future payments included scheduled principal and interest payments. Fair value estimates are made as of a specific point in time, are subjective in nature and involve uncertainties and matters of significant judgment. Settlement at such fair value amounts may not be possible and may not be a prudent management decision. Nonrecurring fair value measurements We assessed the recoverability of the carrying amount of our real estate and related intangibles as of September 30, 2022. The assessment resulted in the remeasurement of ICE – Otay, which was written down to its estimated fair value and was classified as Level 3 in the fair value hierarchy. Our estimate of the fair value was based on a combination of a pending offer from a third party to acquire the property and a discounted cash flow analysis. The Company used two significant unobservable inputs in the various scenarios, which were the cash flow discount rate (ranging from 6.25 %- 9.00 %) and average price per square foot of comparable sales in the market ($ 109.08 -$ 185.90 ). There is no assurance that the Company will sell ICE – Otay on the terms proposed or at all. The remeasurement resulted in an impairment loss of $ 5.5 million, which is included in "Impairment loss" in our Consolidated Statements of Operations. Financial assets and liabilities not measured at fair value As of September 30, 2022, all financial instruments and liabilities were reflected in our balance sheets at amounts which, in our estimation, reasonably approximated their fair values, except for the following: As of September 30, 2022 Financial liabilities Carrying Amount (1) Fair Value (2) Revolving credit facility $ 177,750 $ 177,750 2016 term loan facility $ 100,000 $ 100,000 2018 term loan facility $ 150,000 $ 150,000 Notes payable $ 700,000 $ 591,295 Mortgages payable $ 247,516 $ 232,858 (1) The carrying amount consists of principal only. (2) We deem the fair value measurement of the financial liability instrument a Level 3 measurement. |
Equity Incentive Pan
Equity Incentive Pan | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity Incentive Plan | 8. Equity Incentive Plan Restricted Shares The Company awards restricted stock to certain members of management and non‑employee directors. Management awards generally vest over a range of two to four years. Non‑employee director shares vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting, as long as the grantee remains a director or employee on such date. Restricted stock awards issued under the 2015 Equity Incentive Plan, as amended (the “2015 Equity Incentive Plan”), may not be sold or otherwise transferred until restrictions have lapsed, as established by the compensation committee. We value our non-vested restricted share awards at the grant date fair value, which was the market price of our common stock as of the applicable grant date. Compensation expense related to restricted common stock awards was $ 0.1 million and $ 0.2 million for each of the three months ended September 30, 2022 and 2021 , respectively, and $ 0.5 million and $ 0.6 million for each of the nine months ended September 30, 2022 and 2021, respectively. The fair value of restricted stock that vested was $ 1.5 million and $ 0.9 million during the nine months ended September 30, 2022 and 2021, respectively, based on the market price at the vesting date. The balance of unamortized restricted stock expense as of September 30, 2022 was $ 0.5 million, which is expected to be recognized over a weighted‑average period of 1.1 years. A summary of the status of our restricted shares as of September 30, 2022 and changes during the nine months ended September 30, 2022 is presented below: Restricted Shares Restricted Shares Weighted Average Grant Date Fair Outstanding, December 31, 2021 86,006 $ 19.16 Vested ( 71,168 ) 18.49 Granted 29,078 18.81 Forfeited ( 2,601 ) 21.16 Outstanding, September 30, 2022 41,315 $ 19.94 LTIP Units The Company grants LTIP units to certain members of management and non‑employee directors. Management awards generally vest immediately or over a range of two to four years. Non‑employee director shares vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting, as long as the grantee remains a director or employee on such date. Performance-based LTIP units are earned subject to the Company achieving certain thresholds, including absolute total shareholder returns, relative total shareholder returns, or operational hurdles through the performance period. Service-based LTIP units vest over time, subject to continued employment and other terms of the awards. The following is a summary of our granted LTIP unit awards during the nine months ended September 30, 2022: Award Grant Performance Period Vest Date Units Granted Service January 3, 2022 — December 31, 2024 110,906 Operational January 3, 2022 December 31, 2024 1 80,160 Performance January 3, 2022 December 31, 2024 1 158,535 Service May 11, 2022 — 2 11,238 2022 LTIP Grant 360,839 (1) Earned units will vest on date of compensation committee determination of performance. (2) Units will vest on the earlier of the anniversary of the grant date or the 2023 annual stockholder meeting. We value our operational LTIP unit awards that are subject to the Company achieving certain performance conditions at the grant date fair value, which is the market price of our common stock as of the applicable grant date. We value our service-based LTIP unit awards at the grant date fair value, which is the market price of our common stock as of the applicable grant date, discounted by the risk related to the timing of book-up events. For the performance LTIP unit awards granted that are subject to the Company achieving certain total shareholder return thresholds, we used a Monte Carlo Simulation (risk-neutral approach) to determine the grant date fair value. The following is a summary of the significant assumptions used to value the total shareholder return for performance-based LTIP units during the nine months ended September 30, 2022: Expected volatility 27.0 % Dividend yield 4.8 % Risk-free interest rate 1.0 % Expected life 3 years The fair value of LTIP units that vested were $ 5.5 million and $ 4.5 million during the nine months ended September 30, 2022 and 2021 , respectively, based on the market price at the vesting date. Compensation expense related to LTIP unit awards was $ 1.5 million and $ 1.1 million for the three months ended September 30, 2022 and 2021 , respectively, and $ 4.4 million and $ 3.1 million for the nine months ended September 30, 2022 and 2021, respectively. The balance of unamortized LTIP expense as of September 30, 2022 was $ 7.9 million, which is expected to be recognized over a weighted‑average period of 1.8 years. As of September 30, 2022, management considers it probable that the operational performance conditions on our unvested grants will be achieved. A summary of the status of our LTIP units as of September 30, 2022 and changes during the nine months ended September 30, 2022 are presented below: LTIP Units (1) LTIP Units Weighted Average Grant Date Fair Outstanding, December 31, 2021 651,238 $ 21.02 Vested ( 115,412 ) 18.66 Granted 360,839 17.48 Forfeited — — Outstanding, September 30, 2022 896,665 $ 19.90 (1) Reflects the number of LTIP units issued to the grantee on the date which may be different from the number of LTIP units actually earned in the case of performance-based LTIP units. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | 9. Equity The following table summarizes the changes in the Company’s stockholders’ equity for the three months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts): Shares Common Additional Retained Cumulative Accumulated Non- Total Three months ended September 30, 2022 Balance at June 30, 2022 90,816,622 $ 908 $ 1,621,288 $ 76,561 $ ( 427,851 ) $ 2,393 $ 168,696 $ 1,441,995 Stock based compensation — — 126 — — — 1,499 1,625 Dividends and distributions paid 0.265 per share) — — — — ( 24,066 ) — ( 3,314 ) ( 27,380 ) Forfeiture of unvested restricted stock ( 2,601 ) — — — — — — — Redemption of common units for — — — — — — — — Contribution of property for — — — — — — — — Unrealized gain on interest rate swaps, — — — — — 1,594 212 1,806 Net income — — — 642 — — 107 749 Allocation of non-controlling interest — — 1,214 — — — ( 1,214 ) — Balance at September 30, 2022 90,814,021 $ 908 $ 1,622,628 $ 77,203 $ ( 451,917 ) $ 3,987 $ 165,986 $ 1,418,795 Three months ended September 30, 2021 Balance at June 30, 2021 83,931,290 $ 839 $ 1,471,928 $ 47,157 $ ( 334,815 ) $ ( 8,539 ) $ 157,967 $ 1,334,537 Stock based compensation — — 216 — — — 1,117 1,333 Dividends and distributions paid 0.265 per share) — — — — ( 22,254 ) — ( 3,075 ) ( 25,329 ) Grant of unvested restricted stock 11,066 — — — — — — — Redemption of common units for 59,774 1 836 — — — ( 837 ) — Issuance of common stock, net 2,114,408 21 49,926 — — — — 49,947 Unrealized gain on interest rate — — — — — 1,013 167 1,180 Net income — — — 7,977 — — 1,065 9,042 Allocation of non-controlling interest — — ( 1,460 ) — — — 1,460 — Balance at September 30, 2021 86,116,538 $ 861 $ 1,521,446 $ 55,134 $ ( 357,069 ) $ ( 7,526 ) $ 157,864 $ 1,370,710 The following table summarizes the changes in the Company’s stockholders’ equity for the nine months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts): Shares Common Additional Retained Cumulative Accumulated Non- Total Nine months ended September 30, 2022 Balance at December 31, 2021 90,147,868 $ 901 $ 1,604,712 $ 62,023 $ ( 379,895 ) $ ( 5,072 ) $ 158,912 $ 1,441,581 Stock based compensation — — 478 — — — 4,413 4,891 Dividends and distributions paid 0.795 per share) — — — — ( 72,022 ) — ( 9,773 ) ( 81,795 ) Grant of unvested restricted stock, net 26,477 — — — — — — — Redemption of common units for 204,751 2 2,909 — — — ( 2,911 ) — Issuance of common stock, net 434,925 5 9,394 — — — — 9,399 Contribution of property for — — — — — — 17,361 17,361 Unrealized gain on interest rate swaps, — — — — — 9,059 1,157 10,216 Net income — — — 15,180 — — 1,962 17,142 Allocation of non-controlling interest — — 5,135 — — — ( 5,135 ) — Balance at September 30, 2022 90,814,021 $ 908 $ 1,622,628 $ 77,203 $ ( 451,917 ) $ 3,987 $ 165,986 $ 1,418,795 Nine months ended September 30, 2021 Balance at December 31, 2020 82,106,256 $ 821 $ 1,424,787 $ 31,965 $ ( 291,652 ) $ ( 11,351 ) $ 145,400 $ 1,299,970 Stock based compensation — — 600 — — — 3,100 3,700 Dividends and distributions paid 0.785 per share) — — — — ( 65,417 ) — ( 8,689 ) ( 74,106 ) Grant of unvested restricted stock, net 35,865 — — — — — — — Redemption of common units for 303,185 3 4,258 — — — ( 4,261 ) — Issuance of common stock, net 3,671,232 37 89,868 — — — — 89,905 Contribution of property for — — — — — — 20,790 20,790 Unrealized loss on interest rate — — — — — 3,825 450 4,275 Net income — — — 23,169 — — 3,007 26,176 Allocation of non-controlling interest — — 1,933 — — — ( 1,933 ) — Balance at September 30, 2021 86,116,538 $ 861 $ 1,521,446 $ 55,134 $ ( 357,069 ) $ ( 7,526 ) $ 157,864 $ 1,370,710 A summary of dividends declared by the Company’s board of directors per share of common stock and per common unit at the date of record is as follows: Quarter Declaration Date Record Date Payment Date Dividend (1) Q1 2022 April 27, 2022 May 13, 2022 May 25, 2022 $ 0.265 Q2 2022 July 27, 2022 August 11, 2022 August 23, 2022 $ 0.265 Q3 2022 October 26, 2022 November 11, 2022 November 23, 2022 $ 0.265 (1) Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of performance-based LTIP units are entitled to receive dividends per LTIP unit equal to 10 % of the dividend paid per common unit. After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit. Holders of LTIP units that are not subject to the attainment of performance goals are entitled to receive dividends per LTIP unit equal to 100 % of the dividend paid per common unit beginning on the grant date. Offering of Common Stock on a Forward Basis On August 11, 2021, the Company and the Operating Partnership completed an underwritten public offering of 6,300,000 shares of common stock offered on a forward basis. In connection with the offering, the Company also entered into separate forward sale agreements with each of the forward purchasers (the “Forward Sales Agreements”), pursuant to which the forward purchasers borrowed and sold to the underwriters an aggregate of 6,300,000 shares of the Company’s common stock. On December 28, 2021, the Company issued 3,991,000 shares of its common stock for net proceeds of $ 85.0 million, which shares were issued in partial settlement of the Forward Sales Agreements entered into in connection with the underwritten public offering. No shares were issued during the nine months ended September 30, 2022 . The Company expects to physically settle the remaining Forward Sales Agreements and receive proceeds, subject to certain adjustments, from the sale of those shares of common stock upon one or more such physical settlements. During the nine months ended September 30, 2022, the Company extended the date by which settlement of the Forward Sales Agreements will occur to August 14, 2023. Although the Company expects to settle the Forward Sales Agreements entirely by the physical delivery of shares of its common stock for cash proceeds, the Company may also elect to cash or net-share settle all or a portion of its obligations under the Forward Sales Agreements, in which case, the Company may receive, or may owe, cash or shares of its common stock from or to the forward purchasers. The Forward Sales Agreements provide for an initial forward price of $ 21.64 per share, subject to certain adjustments pursuant to the terms of each of the Forward Sales Agreements. The Forward Sales Agreements are subject to early termination or settlement under certain circumstances. ATM Programs The Company entered into separate equity distribution agreements on each of December 20, 2019 (the “2019 ATM Program”) and June 22, 2021 (the “2021 ATM Program” and, together with the 2019 ATM Program, the “ATM Programs”) with various financial institutions pursuant to which it may issue and sell shares of its common stock having an aggregate offering price of up to $ 300.0 million under each ATM Program from time to time in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”). Under each of the ATM Programs, the Company may enter into one or more forward transactions (each, a “forward sale transaction”) under separate master forward sale confirmations and related supplemental confirmations with each of the various financial institutions party to the respective ATM Program for the sale of shares of its common stock on a forward basis. The following table sets forth certain information with respect to issuances under the 2019 ATM Program during the nine months ended September 30, 2022 (amounts in thousands except share amounts): 2019 ATM Program For the three months ended Number of Shares Issued (1) Net Proceeds (1) March 31, 2022 434,925 $ 9,409 June 30, 2022 — — September 30, 2022 — — Total 434,925 $ 9,409 (1) Shares issued by the Company, which were all issued in settlement of forward sales transactions. Additionally, as of September 30, 2022 , the Company had entered into forward sales transactions under the 2019 ATM Program for the sale of an additional 1,950,000 shares of its common stock that have not yet been settled. Subject to its right to elect net share settlement, the Company expects to physically settle the forward sales transactions by the maturity dates set forth in each applicable forward sale transaction placement notice, which dates range from December 2022 to August 2023. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $ 21.82 per share, the Company expects to receive net proceeds of approximately $ 42.6 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. The Company accounted for the forward sale transactions as equity. No sales of shares of the Company’s common stock were made under the 2021 ATM Program during the nine months ended September 30, 2022. The Company used the net proceeds received from such sales for general corporate purposes. As of September 30, 2022, the Company had approximately $ 300.0 million of gross sales of its common stock available under the 2021 ATM Program and $ 87.4 million of gross sales of its common stock available under the 2019 ATM Program. Share Repurchase Program On April 28, 2022, the Company’s Board of Directors authorized a share repurchase program whereby the Company may repurchase up to 4,538,994 shares of its common stock, or approximately 5 % of its outstanding shares as of the authorization date. The Company is not required to purchase shares under the share repurchase program, but may choose to do so in the open market or through privately negotiated transactions at times and amounts based on its evaluation of market conditions and other factors. No repurchases of shares of the Company’s common stock were made under the share repurchase program during the nine months ended September 30, 2022. Contribution of Property for Common Units On May 10, 2022, the Company acquired NARA – Broomfield for which it issued, as partial consideration, 827,791 common units. The issuance of common units was effected in reliance upon an exemption from registration provided by Section 4(a)(2) under the Securities Act. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share Basic earnings or loss per share of common stock (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares of common stock outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented. Unvested restricted shares of common stock and unvested LTIP units are considered participating securities, which require the use of the two-class method for the computation of basic and diluted earnings per share. The following table sets forth the computation of the Company’s basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands, except per share amounts): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Numerator Net income $ 749 $ 9,042 $ 17,142 $ 26,176 Less: Non-controlling interest in Operating Partnership ( 107 ) ( 1,065 ) ( 1,962 ) ( 3,007 ) Net income available to Easterly Government Properties, Inc. 642 7,977 15,180 23,169 Less: Dividends on participating securities ( 137 ) ( 120 ) ( 410 ) ( 350 ) Net income available to common stockholders $ 505 $ 7,857 $ 14,770 $ 22,819 Denominator for basic EPS 90,772,706 83,961,693 90,560,471 83,306,654 Dilutive effect of share-based compensation awards 11,455 49,200 20,646 50,299 Dilutive effect of LTIP units (1) 335,211 425,317 304,991 384,694 Dilutive effect of shares issuable under forward sale agreements (2) — 36,047 — 33,105 Denominator for diluted EPS 91,119,372 84,472,257 90,886,108 83,774,752 Basic EPS $ 0.01 $ 0.09 $ 0.16 $ 0.27 Diluted EPS $ 0.01 $ 0.09 $ 0.16 $ 0.27 (1) During both the three and nine months ended September 30, 2022 , there were 314,529 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During both the three and nine months ended September 30, 2021 , there were 195,096 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. (2) During both the three and nine months ended September 30, 2022 , there were 4,259,000 shares underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During the three and nine months ended September 30, 2021 , there were 435,289 and 6,735,289 shares, respectively, underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 11. Leases Lessor The Company leases commercial space to the U.S. Government through the GSA or other federal agencies or nongovernmental tenants. These leases may contain extension options that are predominately at the sole discretion of the tenant. Certain of our leases contain a “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. While certain of our leases are contractually subject to early termination, we do not believe that our tenant agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the weighted average age of these properties based on the date the property was built or renovated-to-suit, where applicable (approximately 18.0 years as of September 30, 2022), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties. Certain lease agreements include variable lease payments that, in the future, will vary based on changes in inflationary measures, real estate tax rates, usage, or share of expenditures of the leased premises. The following table summarizes the maturity of fixed lease payments under the Company’s leases as of September 30, 2022 (amounts in thousands): Payments due by period Total 2022 (1) 2023 2024 2025 2026 Thereafter Fixed lease payments $ 2,368,977 62,886 243,536 223,796 212,728 203,743 1,422,288 (1) Represents the three months ending December 31, 2022. The table below sets forth our composition of lease revenue recognized between fixed and variable components (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Fixed $ 68,033 $ 62,359 $ 199,411 $ 183,529 Variable 4,610 5,080 14,827 14,184 Rental income 72,643 67,439 214,238 197,713 Lessee The Company leases corporate office space under operating lease arrangements in Washington, D.C. and San Diego, CA. The San Diego, CA operating lease terminated on October 31, 2022. In April 2022, the Company entered into a lease agreement for new office space in San Diego, CA. This lease has a seven year term and a commencement date of October 26, 2022 . The leases include variable lease payments that, in the future, will vary based on changes in real estate tax rates, usage, or share of expenditures of the leased premises. The Company has elected not to separate lease and non-lease components for its corporate office leases. As of September 30, 2022 , the unamortized balances associated with the Company’s right-of-use operating lease asset and operating lease liability were $ 1.3 million and $ 1.4 million, respectively. The Company used its incremental borrowing rate, which was arrived at utilizing prevailing market rates and the spread on its revolving credit facility, in order to determine the net present value of the minimum lease payments. The following table provides quantitative information for the Company’s commenced operating leases for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Cash flows from operating lease costs $ 121 $ 119 $ 324 $ 387 In addition, the maturity of fixed lease payments under the Company’s commenced corporate office leases as of September 30, 2022 is summarized in the table below (amounts in thousands): Corporate office leases Payments due by period 2022 (1) 54 2023 277 2024 446 2025 456 2026 309 Thereafter — Total future minimum lease payments $ 1,542 Imputed interest ( 124 ) Total $ 1,418 (1) Represents the three months ended December 31, 2022. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 12. Revenue The table below sets forth revenue from tenant construction projects and the associated project management income disaggregated by tenant agency for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, Tenant 2022 2021 2022 2021 Department of Veteran Affairs (“VA”) $ 1,271 $ 352 $ 1,573 $ 1,460 Federal Bureau of Investigation (“FBI”) 212 1,141 1,057 1,791 U.S. Joint Staff Command (“JSC”) 69 34 525 60 Food and Drug Administration (“FDA”) 27 58 231 82 U.S. Citizenship and Immigration Services (“USCIS”) 87 — 197 108 Customs and Border Protection (“CBP”) — — 155 — National Park Services (“NPS”) — 7 100 7 Federal Emergency Management Agency (“FEMA”) 96 — 96 15 Occupational Safety and Health Administration (“OSHA”) 4 — 72 — Drug Enforcement Agency (“DEA”) — — 40 — Internal Revenue Service (“IRS”) — — 33 127 U.S. Coast Guard (“USCG”) — 7 33 7 Patent and Trademark Office (“PTO”) — — 14 — The Judiciary of the U.S. Government (“JUD”) 10 7 14 11 Federal Aviation Administration (“FAA”) 14 — 14 — General Services Administration - Other — — 6 25 Health Resources and Services Administration (“HRSA”) — — 4 3 National Weather Service (“NWS”) 2 — 2 — Immigration and Customs Enforcement (“ICE”) — 17 — 17 Department of Energy (“DOE”) — — — 95 Environmental Protection Agency (“EPA”) — — — 204 Department of Transportation (“DOT”) — 9 — 49 Military Entrance Processing Command (“MEPCOM”) — — — 18 Bureau of the Fiscal Service (“BFS”) — 7 — 11 $ 1,792 $ 1,639 $ 4,166 $ 4,090 The balance in Accounts receivable related to tenant construction projects and the associated project management income was $ 5.3 million as of September 30, 2022 and $ 5.0 million as of December 31, 2021. The duration of the majority of tenant construction project reimbursement arrangements are less than a year and payment is typically due once a project is complete and work has been accepted by the tenant. There were no projects on-going as of September 30, 2022 with a duration of greater than one year. During the three and nine months ended September 30, 2022 , the Company recognized $ 0.1 million and $ 0.2 million, respectively, in parking garage income generated from the operations of parking garages situated on the Various GSA – Buffalo property and on the Various GSA – Portland property. During the three and nine months ended September 30, 2021 , the Company recognized $ 0.1 million and $ 0.2 million, respectively, in parking garage income generated from the operations of parking garages situated on the Various GSA – Buffalo property and on the Various GSA – Portland property. The monthly and transient daily parking revenue falls within the scope of Revenue from Contracts with Customers (“ASC 606”) and is accounted for at the point in time when control of the goods or services transfers to the customer and the Company’s performance obligation is satisfied. The balance in Accounts receivable related to parking garage income was less than $ 0.1 million as of each of September 30, 2022 and December 31, 2021. During the three and nine months ended September 30, 2022 , the Company recognized less than $ 0.1 million and $ 0.1 million, respectively, in income for providing COVID-19 related cleaning services to certain tenants. During the three and nine months ended September 30, 2021 , the Company recognized $ 0.3 million and $ 1.0 million, respectively, in income for providing COVID-19 related cleaning services to certain tenants. The income falls within the scope of ASC 606 and is recognized over time as the performance obligation is satisfied. The balance in Accounts receivable related to these services was less than $ 0.1 million as of September 30, 2022 , and $ 0.1 million as of December 31, 2021. There were no contract assets or liabilities as of September 30, 2022 or December 31, 2021 . |
Concentrations Risk
Concentrations Risk | 9 Months Ended |
Sep. 30, 2022 | |
Risks And Uncertainties [Abstract] | |
Concentrations Risk | 13. Concentrations Risk Concentrations of credit risk arise for the Company when multiple tenants of the Company are engaged in similar business activities, are located in the same geographic region or have similar economic features that impact in a similar manner their ability to meet contractual obligations, including those to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. As stated in Note 1 above, the Company leases commercial space to the U.S. Government or non-governmental tenants. At September 30, 2022 , the U.S. Government accounted for approximately 97.9 % of our total annualized lease income and non-governmental tenants accounted for the remaining approximately 2.1 %. Seventeen of our 95 wholly-owned and unconsolidated operating properties are located in California, accounting for approximately 14.7 % of our total leased square feet and approximately 19.7 % of our total annualized lease income as of September 30, 2022 . To the extent that weak economic or real estate conditions or natural disasters affect California more severely than other areas of the country, our business, financial condition and results of operations could be significantly impacted. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | 14. Related Parties The Company provides asset management services to properties owned by the JV. For the three and nine months ended September 30, 2022, we recognized Asset management income of $ 0.4 million and $ 0.9 million, respectively. We did no t recognize Asset management income for the nine months ended September 30, 2021. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events For its consolidated financial statements as of September 30, 2022, the Company evaluated subsequent events and noted the following significant events. On October 12, 2022, the Company entered into a second amended purchase and sale agreement with a third party to dispose of a portfolio of ten properties totaling approximately 668,000 leased square feet (the “Disposition Portfolio Properties”) for an aggregate purchase price of approximately $ 205.3 million. Concurrently on October 12, 2022, the Company received a $ 3.5 million non-refundable deposit from the third party buyer. As of September 30, 2022, the carrying value of the Disposition Portfolio Properties was $ 187.1 million and did not meet the criteria for held-for-sale classification. The Company completed the sale of nine of the Disposition Portfolio Properties on October 27, 2022, including: DHA – Aurora, HRSA – Baton Rouge, VA – Baton Rouge, FDA – College Park, MEPCOM – Jacksonville, DOE – Lakewood, ICE – Pittsburgh, OSHA – Sandy, and CBP – Sunburst. The Company expects to close on the remaining property, DOI – Billings, prior to December 31, 2022, subject to the satisfaction of customary closing conditions. On October 27, 2022, the Company used $ 5.8 million of proceeds from the sale of the Disposition Portfolio Properties to extinguish the $ 5.8 million mortgage note obligation on MEPCOM - Jacksonville. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
Real Estate and Intangibles (Ta
Real Estate and Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Fair Values of Assets Acquired and Liabilities Assumed | We allocated the aggregate purchase price of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands): Total Real estate Land $ 9,795 Building 83,403 Acquired tenant improvements 5,386 Total real estate 98,584 Intangible assets In-place leases 7,927 Acquired leasing commissions 4,453 Total intangible assets 12,380 Intangible liabilities Below-market leases ( 2,858 ) Total intangible liabilities ( 2,858 ) Purchase price $ 108,106 |
Schedule of Real Estate and Intangibles | Real estate and intangibles consisted of the following as of September 30, 2022 (amounts in thousands): Total Real estate properties, net Land $ 231,599 Building and improvements 2,426,241 Acquired tenant improvements 95,403 Construction in progress 39,338 Accumulated depreciation ( 328,620 ) Total Real estate properties, net 2,463,961 Intangible assets, net In-place leases 293,642 Acquired leasing commissions 75,964 Above market leases 17,541 Payment in lieu of taxes 6,394 Accumulated amortization ( 215,214 ) Total Intangible assets, net 178,327 Intangible liabilities, net Below market leases ( 76,745 ) Accumulated amortization 57,606 Total Intangible liabilities, net ( 19,139 ) |
Summary of Scheduled Amortization Market Lease Intangibles | The following table summarizes the scheduled amortization of the Company’s acquired above- and below-market lease intangibles for each of the five succeeding years as of September 30, 2022 (amounts in thousands): Acquired Above-Market Lease Intangibles Acquired Below-Market Lease Intangibles 2022 $ 349 $ ( 1,117 ) 2023 1,390 ( 4,307 ) 2024 1,341 ( 3,160 ) 2025 1,286 ( 2,454 ) 2026 1,217 ( 2,216 ) |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate Venture (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Unconsolidated Real Estate Venture [Abstract] | |
Summary of Investments in JV | The following is a summary of our investment in the JV (dollars in thousands): As of September 30, Joint Venture Ownership Interest 2022 MedBase Venture 53.0 % $ 199,338 |
Summary of Financial Information for JV | The following is a summary of financial information for the JV (amounts in thousands): As of September 30, Balance sheet information: 2022 Real estate, net (1) $ 313,768 Other assets, net 71,116 Total assets $ 384,884 Total liabilities (2) $ 9,407 Total equity 375,477 Total liabilities and equity $ 384,884 Company’s share of equity $ 198,963 Basis differential (3) 375 Carrying value of the Company’s investment in the unconsolidated venture $ 199,338 (1) At September 30, 2022 , this amount included right-of-use assets - finance leases totaling approximately $ 4.9 million representing a ground lease at VA – Lubbock. (2) At September 30, 2022 , this amount included lease liabilities - finance leases totaling approximately $ 5.0 million representing a ground lease at VA – Lubbock. (3) This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level. For the three months ended September 30, For the nine months ended September 30, Income statement information: 2022 2021 2022 2021 Total revenue $ 7,136 $ — $ 17,799 $ — Operating income 1,608 — 4,436 — Net income 1,567 — 4,313 — Company’s share of net income $ 830 $ — $ 2,286 $ — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings | At September 30, 2022, our consolidated borrowings consisted of the following (amounts in thousands): Principal Outstanding Interest Current Loan September 30, 2022 Rate (1) Maturity Revolving credit facility: Revolving credit facility (2) $ 177,750 L + 135 bps July 2025 (3) Total revolving credit facility 177,750 Term loan facilities: 2016 term loan facility 100,000 2.77 % (5) March 2024 2018 term loan facility (4) 150,000 4.01 % (6) July 2026 Total term loan facilities 250,000 Less: Total unamortized deferred financing fees ( 1,121 ) Total term loan facilities, net 248,879 Notes payable: 2017 series A senior notes 95,000 4.05 % May 2027 2017 series B senior notes 50,000 4.15 % May 2029 2017 series C senior notes 30,000 4.30 % May 2032 2019 series A senior notes 85,000 3.73 % September 2029 2019 series B senior notes 100,000 3.83 % September 2031 2019 series C senior notes 90,000 3.98 % September 2034 2021 series A senior notes 50,000 2.62 % October 2028 2021 series B senior notes 200,000 2.89 % October 2030 Total notes payable 700,000 Less: Total unamortized deferred financing fees ( 4,065 ) Total notes payable, net 695,935 Mortgage notes payable: DEA – Pleasanton 15,700 L + 150bps (7) October 2023 VA – Golden 8,692 5.00 % (7) April 2024 MEPCOM – Jacksonville (8) 5,858 4.41 % (7) October 2025 USFS II – Albuquerque 13,879 4.46 % (7) July 2026 ICE – Charleston 13,792 4.21 % (7) January 2027 VA – Loma Linda 127,500 3.59 % (7) July 2027 CBP – Savannah 10,595 3.40 % (7) July 2033 USCIS – Kansas City 51,500 3.68 % (7) August 2024 Total mortgage notes payable 247,516 Less: Total unamortized deferred financing fees ( 1,519 ) Less: Total unamortized premium/discount 1,972 Total mortgage notes payable, net 247,969 Total debt $ 1,370,533 (1) At September 30, 2022, the one-month LIBOR (“L”) was 3.14 %. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for each of our $ 450.0 million senior unsecured revolving credit facility (our “revolving credit facility”), our $ 200.0 million senior unsecured term loan facility (as amended, our “2018 term loan facility”) and our $ 100.0 million senior unsecured term loan facility (our “2016 term loan facility”) is based on the Company’s consolidated leverage ratio, as set forth in the respective loan agreements. (2) Our revolving credit facility had available capacity of $ 272.1 million at September 30, 2022 with an accordion feature that permits us to request additional lender commitments for up to $ 250.0 million of additional capacity, subject to the satisfaction of customary terms and conditions. (3) Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee . (4) Our 2018 term loan facility has undrawn capacity up to $ 50.0 million of which is available during a delayed draw period. (5) Entered into two interest rate swaps with an effective date of March 29, 2017 with an aggregate notional value of $ 100.0 million to effectively fix the interest rate at 2.77 % annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement. (6) Entered into four interest rate swaps with an effective date of December 13, 2018 with an aggregate notional value of $ 150.0 million to effectively fix the interest rate at 4.01 % annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. (7) Effective interest rates are as follows: DEA – Pleasanton 1.80 %, VA – Golden 5.03 %, MEPCOM – Jacksonville 3.89 %, USFS II Albuquerque 3.92 %, ICE – Charleston 3.93 %, VA – Loma Linda 3.78 %, CBP – Savannah 4.12 %, USCIS – Kansas City 2.05 %. (8) On October 27, 2022, the Company extinguished the mortgage note obligation on MEPCOM - Jacksonville in conjunction with the sale of the property. See Note 15 for additional information. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Key Terms and Fair Values of Our Interest Rate Swap Derivatives | The following table sets forth the key terms and fair values of our interest rate swap derivatives, each of which was designated as a cash flow hedge as of September 30, 2022 (amounts in thousands): Notional Amount Fixed Rate Floating Rate Index Effective Date Expiration Date Fair Value $ 100,000 1.41 % One-Month LIBOR March 29, 2017 September 29, 2023 $ 2,881 $ 150,000 2.71 % One-Month LIBOR December 13, 2018 June 19, 2023 $ 1,634 |
Schedule of Fair Value of Our Interest Rate Derivatives as Well as Their Classification on Our Consolidated Balance Sheets | The table below sets forth the fair value of our interest rate derivatives as well as their classification on our Consolidated Balance Sheet (amounts in thousands): Balance Sheet Line Item As of September 30, 2022 Interest rate swaps - Asset $ 4,515 Interest rate swaps - Liability $ — |
Schedule Of Effects of Our Interest Rate Derivatives on our Consolidated Statements of Operations and Comprehensive Income | The table below presents the effects of our interest rate derivatives on our Consolidated Statements of Operations and Comprehensive Income (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Unrealized gain (loss) recognized in AOCI $ 1,801 $ ( 160 ) $ 8,046 $ 324 Loss reclassified from AOCI into interest expense ( 5 ) ( 1,340 ) ( 2,170 ) ( 3,951 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The carrying values of cash and cash equivalents, restricted cash, accounts receivable, other assets and accounts payable and accrued expenses are reasonable estimates of fair values because of the short maturities of these instruments. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall (amounts in thousands): As of September 30, 2022 Balance Sheet Line Item Level 1 Level 2 Level 3 Interest rate swaps - Asset $ — $ 4,515 $ — Interest rate swaps - Liability $ — $ — $ — |
Schedule of Fair Value Financial Assets And Liabilities Not measured At Fair Value | As of September 30, 2022, all financial instruments and liabilities were reflected in our balance sheets at amounts which, in our estimation, reasonably approximated their fair values, except for the following: As of September 30, 2022 Financial liabilities Carrying Amount (1) Fair Value (2) Revolving credit facility $ 177,750 $ 177,750 2016 term loan facility $ 100,000 $ 100,000 2018 term loan facility $ 150,000 $ 150,000 Notes payable $ 700,000 $ 591,295 Mortgages payable $ 247,516 $ 232,858 (1) The carrying amount consists of principal only. (2) We deem the fair value measurement of the financial liability instrument a Level 3 measurement. |
Equity Incentive Pan (Tables)
Equity Incentive Pan (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Restricted Shares | A summary of the status of our restricted shares as of September 30, 2022 and changes during the nine months ended September 30, 2022 is presented below: Restricted Shares Restricted Shares Weighted Average Grant Date Fair Outstanding, December 31, 2021 86,006 $ 19.16 Vested ( 71,168 ) 18.49 Granted 29,078 18.81 Forfeited ( 2,601 ) 21.16 Outstanding, September 30, 2022 41,315 $ 19.94 |
Long Term Incentive Plan | |
Summary of Restricted Shares | A summary of the status of our LTIP units as of September 30, 2022 and changes during the nine months ended September 30, 2022 are presented below: LTIP Units (1) LTIP Units Weighted Average Grant Date Fair Outstanding, December 31, 2021 651,238 $ 21.02 Vested ( 115,412 ) 18.66 Granted 360,839 17.48 Forfeited — — Outstanding, September 30, 2022 896,665 $ 19.90 (1) Reflects the number of LTIP units issued to the grantee on the date which may be different from the number of LTIP units actually earned in the case of performance-based LTIP units. |
Summary of Grants | The following is a summary of our granted LTIP unit awards during the nine months ended September 30, 2022: Award Grant Performance Period Vest Date Units Granted Service January 3, 2022 — December 31, 2024 110,906 Operational January 3, 2022 December 31, 2024 1 80,160 Performance January 3, 2022 December 31, 2024 1 158,535 Service May 11, 2022 — 2 11,238 2022 LTIP Grant 360,839 (1) Earned units will vest on date of compensation committee determination of performance. (2) Units will vest on the earlier of the anniversary of the grant date or the 2023 annual stockholder meeting. |
Summary of Significant Assumptions Used to Value the Total Shareholder | The following is a summary of the significant assumptions used to value the total shareholder return for performance-based LTIP units during the nine months ended September 30, 2022: Expected volatility 27.0 % Dividend yield 4.8 % Risk-free interest rate 1.0 % Expected life 3 years |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of Changes In Stockholders' Equity | The following table summarizes the changes in the Company’s stockholders’ equity for the three months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts): Shares Common Additional Retained Cumulative Accumulated Non- Total Three months ended September 30, 2022 Balance at June 30, 2022 90,816,622 $ 908 $ 1,621,288 $ 76,561 $ ( 427,851 ) $ 2,393 $ 168,696 $ 1,441,995 Stock based compensation — — 126 — — — 1,499 1,625 Dividends and distributions paid 0.265 per share) — — — — ( 24,066 ) — ( 3,314 ) ( 27,380 ) Forfeiture of unvested restricted stock ( 2,601 ) — — — — — — — Redemption of common units for — — — — — — — — Contribution of property for — — — — — — — — Unrealized gain on interest rate swaps, — — — — — 1,594 212 1,806 Net income — — — 642 — — 107 749 Allocation of non-controlling interest — — 1,214 — — — ( 1,214 ) — Balance at September 30, 2022 90,814,021 $ 908 $ 1,622,628 $ 77,203 $ ( 451,917 ) $ 3,987 $ 165,986 $ 1,418,795 Three months ended September 30, 2021 Balance at June 30, 2021 83,931,290 $ 839 $ 1,471,928 $ 47,157 $ ( 334,815 ) $ ( 8,539 ) $ 157,967 $ 1,334,537 Stock based compensation — — 216 — — — 1,117 1,333 Dividends and distributions paid 0.265 per share) — — — — ( 22,254 ) — ( 3,075 ) ( 25,329 ) Grant of unvested restricted stock 11,066 — — — — — — — Redemption of common units for 59,774 1 836 — — — ( 837 ) — Issuance of common stock, net 2,114,408 21 49,926 — — — — 49,947 Unrealized gain on interest rate — — — — — 1,013 167 1,180 Net income — — — 7,977 — — 1,065 9,042 Allocation of non-controlling interest — — ( 1,460 ) — — — 1,460 — Balance at September 30, 2021 86,116,538 $ 861 $ 1,521,446 $ 55,134 $ ( 357,069 ) $ ( 7,526 ) $ 157,864 $ 1,370,710 The following table summarizes the changes in the Company’s stockholders’ equity for the nine months ended September 30, 2022 and 2021 (amounts in thousands, except share amounts): Shares Common Additional Retained Cumulative Accumulated Non- Total Nine months ended September 30, 2022 Balance at December 31, 2021 90,147,868 $ 901 $ 1,604,712 $ 62,023 $ ( 379,895 ) $ ( 5,072 ) $ 158,912 $ 1,441,581 Stock based compensation — — 478 — — — 4,413 4,891 Dividends and distributions paid 0.795 per share) — — — — ( 72,022 ) — ( 9,773 ) ( 81,795 ) Grant of unvested restricted stock, net 26,477 — — — — — — — Redemption of common units for 204,751 2 2,909 — — — ( 2,911 ) — Issuance of common stock, net 434,925 5 9,394 — — — — 9,399 Contribution of property for — — — — — — 17,361 17,361 Unrealized gain on interest rate swaps, — — — — — 9,059 1,157 10,216 Net income — — — 15,180 — — 1,962 17,142 Allocation of non-controlling interest — — 5,135 — — — ( 5,135 ) — Balance at September 30, 2022 90,814,021 $ 908 $ 1,622,628 $ 77,203 $ ( 451,917 ) $ 3,987 $ 165,986 $ 1,418,795 Nine months ended September 30, 2021 Balance at December 31, 2020 82,106,256 $ 821 $ 1,424,787 $ 31,965 $ ( 291,652 ) $ ( 11,351 ) $ 145,400 $ 1,299,970 Stock based compensation — — 600 — — — 3,100 3,700 Dividends and distributions paid 0.785 per share) — — — — ( 65,417 ) — ( 8,689 ) ( 74,106 ) Grant of unvested restricted stock, net 35,865 — — — — — — — Redemption of common units for 303,185 3 4,258 — — — ( 4,261 ) — Issuance of common stock, net 3,671,232 37 89,868 — — — — 89,905 Contribution of property for — — — — — — 20,790 20,790 Unrealized loss on interest rate — — — — — 3,825 450 4,275 Net income — — — 23,169 — — 3,007 26,176 Allocation of non-controlling interest — — 1,933 — — — ( 1,933 ) — Balance at September 30, 2021 86,116,538 $ 861 $ 1,521,446 $ 55,134 $ ( 357,069 ) $ ( 7,526 ) $ 157,864 $ 1,370,710 |
Summary of Dividends Declared | A summary of dividends declared by the Company’s board of directors per share of common stock and per common unit at the date of record is as follows: Quarter Declaration Date Record Date Payment Date Dividend (1) Q1 2022 April 27, 2022 May 13, 2022 May 25, 2022 $ 0.265 Q2 2022 July 27, 2022 August 11, 2022 August 23, 2022 $ 0.265 Q3 2022 October 26, 2022 November 11, 2022 November 23, 2022 $ 0.265 (1) Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of performance-based LTIP units are entitled to receive dividends per LTIP unit equal to 10 % of the dividend paid per common unit. After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit. Holders of LTIP units that are not subject to the attainment of performance goals are entitled to receive dividends per LTIP unit equal to 100 % of the dividend paid per common unit beginning on the grant date. |
Schedule of Information with Respect to ATM Program | The following table sets forth certain information with respect to issuances under the 2019 ATM Program during the nine months ended September 30, 2022 (amounts in thousands except share amounts): 2019 ATM Program For the three months ended Number of Shares Issued (1) Net Proceeds (1) March 31, 2022 434,925 $ 9,409 June 30, 2022 — — September 30, 2022 — — Total 434,925 $ 9,409 (1) Shares issued by the Company, which were all issued in settlement of forward sales transactions. Additionally, as of September 30, 2022 , the Company had entered into forward sales transactions under the 2019 ATM Program for the sale of an additional 1,950,000 shares of its common stock that have not yet been settled. Subject to its right to elect net share settlement, the Company expects to physically settle the forward sales transactions by the maturity dates set forth in each applicable forward sale transaction placement notice, which dates range from December 2022 to August 2023. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $ 21.82 per share, the Company expects to receive net proceeds of approximately $ 42.6 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. The Company accounted for the forward sale transactions as equity. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of the Company’s basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands, except per share amounts): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Numerator Net income $ 749 $ 9,042 $ 17,142 $ 26,176 Less: Non-controlling interest in Operating Partnership ( 107 ) ( 1,065 ) ( 1,962 ) ( 3,007 ) Net income available to Easterly Government Properties, Inc. 642 7,977 15,180 23,169 Less: Dividends on participating securities ( 137 ) ( 120 ) ( 410 ) ( 350 ) Net income available to common stockholders $ 505 $ 7,857 $ 14,770 $ 22,819 Denominator for basic EPS 90,772,706 83,961,693 90,560,471 83,306,654 Dilutive effect of share-based compensation awards 11,455 49,200 20,646 50,299 Dilutive effect of LTIP units (1) 335,211 425,317 304,991 384,694 Dilutive effect of shares issuable under forward sale agreements (2) — 36,047 — 33,105 Denominator for diluted EPS 91,119,372 84,472,257 90,886,108 83,774,752 Basic EPS $ 0.01 $ 0.09 $ 0.16 $ 0.27 Diluted EPS $ 0.01 $ 0.09 $ 0.16 $ 0.27 (1) During both the three and nine months ended September 30, 2022 , there were 314,529 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During both the three and nine months ended September 30, 2021 , there were 195,096 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. (2) During both the three and nine months ended September 30, 2022 , there were 4,259,000 shares underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During the three and nine months ended September 30, 2021 , there were 435,289 and 6,735,289 shares, respectively, underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Summary of Maturity of Fixed Lease Payments Under Company's Leases | The following table summarizes the maturity of fixed lease payments under the Company’s leases as of September 30, 2022 (amounts in thousands): Payments due by period Total 2022 (1) 2023 2024 2025 2026 Thereafter Fixed lease payments $ 2,368,977 62,886 243,536 223,796 212,728 203,743 1,422,288 (1) Represents the three months ending December 31, 2022. |
Summary of Composition of Lease Revenue Recognized Between Fixed and Variable Components | The table below sets forth our composition of lease revenue recognized between fixed and variable components (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Fixed $ 68,033 $ 62,359 $ 199,411 $ 183,529 Variable 4,610 5,080 14,827 14,184 Rental income 72,643 67,439 214,238 197,713 |
Schedule of Quantitative Information for Company's Operating Leases | The following table provides quantitative information for the Company’s commenced operating leases for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, 2022 2021 2022 2021 Cash flows from operating lease costs $ 121 $ 119 $ 324 $ 387 |
Schedule of Maturity of Fixed Lease Payments Under Company's Corporate Office Leases | In addition, the maturity of fixed lease payments under the Company’s commenced corporate office leases as of September 30, 2022 is summarized in the table below (amounts in thousands): Corporate office leases Payments due by period 2022 (1) 54 2023 277 2024 446 2025 456 2026 309 Thereafter — Total future minimum lease payments $ 1,542 Imputed interest ( 124 ) Total $ 1,418 (1) Represents the three months ended December 31, 2022. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue from Tenant Construction Projects Disaggregated by Tenant Agency | The table below sets forth revenue from tenant construction projects and the associated project management income disaggregated by tenant agency for the three and nine months ended September 30, 2022 and 2021 (amounts in thousands): For the three months ended September 30, For the nine months ended September 30, Tenant 2022 2021 2022 2021 Department of Veteran Affairs (“VA”) $ 1,271 $ 352 $ 1,573 $ 1,460 Federal Bureau of Investigation (“FBI”) 212 1,141 1,057 1,791 U.S. Joint Staff Command (“JSC”) 69 34 525 60 Food and Drug Administration (“FDA”) 27 58 231 82 U.S. Citizenship and Immigration Services (“USCIS”) 87 — 197 108 Customs and Border Protection (“CBP”) — — 155 — National Park Services (“NPS”) — 7 100 7 Federal Emergency Management Agency (“FEMA”) 96 — 96 15 Occupational Safety and Health Administration (“OSHA”) 4 — 72 — Drug Enforcement Agency (“DEA”) — — 40 — Internal Revenue Service (“IRS”) — — 33 127 U.S. Coast Guard (“USCG”) — 7 33 7 Patent and Trademark Office (“PTO”) — — 14 — The Judiciary of the U.S. Government (“JUD”) 10 7 14 11 Federal Aviation Administration (“FAA”) 14 — 14 — General Services Administration - Other — — 6 25 Health Resources and Services Administration (“HRSA”) — — 4 3 National Weather Service (“NWS”) 2 — 2 — Immigration and Customs Enforcement (“ICE”) — 17 — 17 Department of Energy (“DOE”) — — — 95 Environmental Protection Agency (“EPA”) — — — 204 Department of Transportation (“DOT”) — 9 — 49 Military Entrance Processing Command (“MEPCOM”) — — — 18 Bureau of the Fiscal Service (“BFS”) — 7 — 11 $ 1,792 $ 1,639 $ 4,166 $ 4,090 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Detail) ft² in Millions | 9 Months Ended |
Sep. 30, 2022 ft² Property | |
Easterly Government Properties LP [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Outstanding common units of aggregate limited partnership interest owned percentage | 88.30% |
Joint Venture [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 7 |
Wholly Owned Operating Properties [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 88 |
Leased percentage of operating properties | 99% |
Aggregate area of land | ft² | 9.1 |
Wholly Owned Operating Properties [Member] | Government [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 94 |
Wholly Owned Operating Properties [Member] | Private Tenants [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 1 |
Wholly Owned Properties Under Development [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 1 |
Aggregate area of land | ft² | 0.2 |
Real Estate and Intangibles - A
Real Estate and Intangibles - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) ft² Property | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) ft² Property | Sep. 30, 2021 USD ($) | |
Real Estate Properties [Line Items] | ||||
Revenues | $ 75,041 | $ 69,608 | $ 220,100 | $ 203,223 |
Net income available to Easterly Government Properties, Inc. | 642 | 7,977 | 15,180 | 23,169 |
Acquisition-related expenses | 275 | $ 518 | 939 | $ 1,488 |
Impairment loss | 5,540 | 5,540 | ||
ICE - Otay [Member] | ||||
Real Estate Properties [Line Items] | ||||
Impairment loss | $ 5,500 | $ 5,500 | ||
CALIFORNIA | ||||
Real Estate Properties [Line Items] | ||||
Number of properties | Property | 17 | 17 | ||
CALIFORNIA | ICE - Otay [Member] | ||||
Real Estate Properties [Line Items] | ||||
Area acquired | ft² | 47,919 | 47,919 | ||
Operating Properties Acquired [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of properties | Property | 0 | 0 | ||
Weighted average amortization period | 15 years 6 months | |||
Revenues | $ 3,000 | |||
Net income available to Easterly Government Properties, Inc. | $ 1,000 | |||
Operating Properties Acquired [Member] | FBI Tampa, NARA and JUD [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of properties | Property | 3 | 3 | ||
Purchase price | $ 108,100 | $ 108,100 |
Real Estate and Intangibles - F
Real Estate and Intangibles - Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Operating Properties Acquired [Member] - FBI Tampa and NARA [Member] $ in Thousands | Sep. 30, 2022 USD ($) |
Business Acquisition [Line Items] | |
Total real estate | $ 98,584 |
Total intangible assets | 12,380 |
Total intangible liabilities | (2,858) |
Purchase price | 108,106 |
Real Estate Investment | |
Business Acquisition [Line Items] | |
Land | 9,795 |
Building | 83,403 |
Acquired tenant improvements | 5,386 |
Leases, Acquired-in-Place | |
Business Acquisition [Line Items] | |
Total intangible assets | 7,927 |
Acquired Leasing Commissions | |
Business Acquisition [Line Items] | |
Total intangible assets | 4,453 |
Below Market Leases Assumed | |
Business Acquisition [Line Items] | |
Total intangible liabilities | $ (2,858) |
Real Estate and Intangibles - S
Real Estate and Intangibles - Schedule of Real Estate and Intangibles (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real estate properties, net | ||
Land | $ 231,599 | |
Building and improvements | 2,426,241 | |
Acquired tenant improvements | 95,403 | |
Construction in progress | 39,338 | |
Accumulated depreciation | (328,620) | |
Total Real estate properties, net | 2,463,961 | $ 2,399,188 |
Intangible assets, net | ||
Accumulated amortization | (215,214) | |
Total Intangible assets, net | 178,327 | |
Intangible liabilities, net | ||
Intangible Liabilities, Below market leases | (76,745) | |
Intangible Liabilities, Accumulated amortization | 57,606 | |
Total Intangible liabilities, net | (19,139) | |
Leases, Acquired-in-Place | ||
Intangible assets, net | ||
Above market leases | 293,642 | |
Acquired Leasing Commissions | ||
Intangible assets, net | ||
Above market leases | 75,964 | |
Above Market Leases [Member] | ||
Intangible assets, net | ||
Above market leases | 17,541 | |
Payment in Lieu of Taxes [Member] | ||
Intangible assets, net | ||
Above market leases | $ 6,394 |
Real Estate and Intangibles -_2
Real Estate and Intangibles - Summary of Scheduled Amortization Market Lease Intangibles (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Acquired Above-Market Lease Intangibles | |
2022 | $ 349 |
2023 | 1,390 |
2024 | 1,341 |
2025 | 1,286 |
2026 | 1,217 |
Acquired Below-Market Lease Intangibles | |
2022 | (1,117) |
2023 | (4,307) |
2024 | (3,160) |
2025 | (2,454) |
2026 | $ (2,216) |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate Venture - Summary of Investments in JV (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Related Party Transaction [Line Items] | ||
Investment in unconsolidated real estate venture | $ 199,338 | $ 131,840 |
JV [Member] | ||
Related Party Transaction [Line Items] | ||
Investment in unconsolidated real estate venture | $ 198,963 | |
MedBase Venture [Member] | JV [Member] | ||
Related Party Transaction [Line Items] | ||
Effective Ownership Interest | 53% | |
Investment in unconsolidated real estate venture | $ 199,338 |
Investments in Unconsolidated_4
Investments in Unconsolidated Real Estate Venture - Additional Information (Details) - JV [Member] | 3 Months Ended | 9 Months Ended | ||
Jan. 20, 2022 USD ($) shares | Sep. 30, 2022 USD ($) Property | Sep. 30, 2022 USD ($) Property | Oct. 13, 2021 ft² Property | |
Unconsolidated Real Estate Venture [Line Items] | ||||
Asset management service revenue | $ 400,000 | $ 900,000 | ||
Series A Preferred Units [Member] | ||||
Unconsolidated Real Estate Venture [Line Items] | ||||
Number of preferred units issued | shares | 125 | |||
Net proceeds from issuance of preferred units | $ 100,000 | |||
VA Birmingham, VA Marietta and VA Columbus | ||||
Unconsolidated Real Estate Venture [Line Items] | ||||
Number of properties | Property | 3 | 3 | ||
Purchase price | $ 135.3 | $ 135.3 | ||
VA Portfolio [Member] | ||||
Unconsolidated Real Estate Venture [Line Items] | ||||
Number of properties | Property | 7 | 7 | 10 | |
Area of properties acquired | ft² | 1,214,165 | |||
Global Investor [Member] | ||||
Unconsolidated Real Estate Venture [Line Items] | ||||
Effective Ownership Interest | 53% |
Investments in Unconsolidated_5
Investments in Unconsolidated Real Estate Venture - Summary of Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Balance sheet information: | ||||||
Total assets | $ 2,961,650 | $ 2,961,650 | $ 2,826,112 | |||
Total liabilities (2) | 1,542,855 | 1,542,855 | 1,384,531 | |||
Total equity | 1,252,809 | 1,252,809 | 1,282,669 | |||
Total liabilities and equity | 2,961,650 | 2,961,650 | 2,826,112 | |||
Investment in unconsolidated real estate venture | 199,338 | 199,338 | $ 131,840 | |||
Income statement information: | ||||||
Revenues | 75,041 | $ 69,608 | 220,100 | $ 203,223 | ||
Net income available to Easterly Government Properties, Inc. | 642 | $ 7,977 | 15,180 | $ 23,169 | ||
JV [Member] | ||||||
Balance sheet information: | ||||||
Real estate, net (1) | [1] | 313,768 | 313,768 | |||
Other assets, net | 71,116 | 71,116 | ||||
Total assets | 384,884 | 384,884 | ||||
Total liabilities (2) | [2] | 9,407 | 9,407 | |||
Total equity | 375,477 | 375,477 | ||||
Total liabilities and equity | 384,884 | 384,884 | ||||
Investment in unconsolidated real estate venture | 198,963 | 198,963 | ||||
Basis differential (3) | [3] | 375 | 375 | |||
Carrying value of the Company’s investment in the unconsolidated venture | 199,338 | 199,338 | ||||
Income statement information: | ||||||
Revenues | 7,136 | 17,799 | ||||
Operating income | 1,608 | 4,436 | ||||
Net income available to Easterly Government Properties, Inc. | 1,567 | 4,313 | ||||
Company’s share of net income | $ 830 | $ 2,286 | ||||
[1] At September 30, 2022 , this amount included right-of-use assets - finance leases totaling approximately $ 4.9 million representing a ground lease at VA – Lubbock. At September 30, 2022 , this amount included lease liabilities - finance leases totaling approximately $ 5.0 million representing a ground lease at VA – Lubbock. This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level. |
Investments in Unconsolidated_6
Investments in Unconsolidated Real Estate Venture - Summary of Financial Information (Parenthetical) (Details) - JV [Member] $ in Millions | Sep. 30, 2022 USD ($) |
Related Party Transaction [Line Items] | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets |
Finance lease, right-of-use asset | $ 4.9 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued expenses and other liabilities |
Finance lease, liability | $ 5 |
Debt - Summary of Borrowings (D
Debt - Summary of Borrowings (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Total revolving credit facility, Principal Outstanding | $ 177,750,000 | $ 14,500,000 | |
Total term loan facilities, net, Principal Outstanding | 248,879,000 | 248,579,000 | |
Total notes payable, net, Principal Outstanding | 695,935,000 | 695,589,000 | |
Total mortgage notes payable, net, Principal Outstanding | 247,969,000 | $ 252,421,000 | |
Total debt, Principal Outstanding | 1,370,533,000 | ||
Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | 700,000,000 | ||
Less: Total unamortized deferred financing fees | (1,121,000) | ||
Mortgage Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | 247,516,000 | ||
Less: Total unamortized deferred financing fees | (1,519,000) | ||
Less: Total unamortized premium/discount | 1,972,000 | ||
Mortgage Notes Payable [Member] | CBP Savannah [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 10,595,000 | ||
Loan, Interest Rate | [1],[2] | 3.40% | |
Loan, Current Maturity | 2033-07 | ||
Mortgage Notes Payable [Member] | ICE Charleston [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 13,792,000 | ||
Loan, Interest Rate | [1],[2] | 4.21% | |
Loan, Current Maturity | 2027-01 | ||
Mortgage Notes Payable [Member] | MEPCOM Jacksonville [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | [3] | $ 5,858,000 | |
Loan, Interest Rate | [1],[2],[3] | 4.41% | |
Loan, Current Maturity | [3] | 2025-10 | |
Mortgage Notes Payable [Member] | USFS II Albuquerque [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 13,879,000 | ||
Loan, Interest Rate | [1],[2] | 4.46% | |
Loan, Current Maturity | 2026-07 | ||
Mortgage Notes Payable [Member] | DEA Pleasanton [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 15,700,000 | ||
Loan, Interest Rate | [1],[2] | L + 150bps | |
Loan, Current Maturity | 2023-10 | ||
Mortgage Notes Payable [Member] | VA Loma Linda [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 127,500 | ||
Loan, Interest Rate | [1],[2] | 3.59% | |
Loan, Current Maturity | 2027-07 | ||
Mortgage Notes Payable [Member] | VA Golden [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 8,692,000 | ||
Loan, Interest Rate | [1],[2] | 5% | |
Loan, Current Maturity | 2024-04 | ||
Mortgage Notes Payable [Member] | USCIS - Kansas City [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 51,500,000 | ||
Loan, Interest Rate | [1],[2] | 3.68% | |
Loan, Current Maturity | 2024-08 | ||
2016 Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 100,000,000 | ||
Loan, Interest Rate | [1],[4] | 2.77% | |
Loan, Current Maturity | 2024-03 | ||
2018 Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | [5] | $ 150,000,000 | |
Loan, Interest Rate | [1],[5],[6] | 4.01% | |
Loan, Current Maturity | [5] | 2026-07 | |
Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 250,000,000 | ||
Less: Total unamortized deferred financing fees | (4,065,000) | ||
Total term loan facilities, net, Principal Outstanding | $ 248,879,000 | ||
2017 series A senior notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 4.05% | |
Loan, Current Maturity | 2027-05 | ||
2017 series A senior notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 95,000,000 | ||
2017 series B senior notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 4.15% | |
Loan, Current Maturity | 2029-05 | ||
2017 series B senior notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 50,000,000 | ||
2017 series C senior notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 4.30% | |
Loan, Current Maturity | 2032-05 | ||
2017 series C senior notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 30,000,000 | ||
2019 series A senior notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 3.73% | |
Loan, Current Maturity | 2029-09 | ||
2019 series A senior notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 85,000,000 | ||
2019 series B senior notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 3.83% | |
Loan, Current Maturity | 2031-09 | ||
2019 series B senior notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 100,000,000 | ||
2019 series C senior notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 3.98% | |
Loan, Current Maturity | 2034-09 | ||
2019 series C senior notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 90,000,000 | ||
2021 Series A Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 2.62% | |
Loan, Current Maturity | 2028-10 | ||
2021 Series A Senior Notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 50,000,000 | ||
2021 Series B Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Interest Rate | [1] | 2.89% | |
Loan, Current Maturity | 2030-10 | ||
2021 Series B Senior Notes [Member] | Senior Unsecured Notes Payable | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 200,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total revolving credit facility, Principal Outstanding | [7] | $ 177,750,000 | |
Loan, Interest Rate | [1],[7] | L + 135 bps | |
Loan, Current Maturity | [7],[8] | 2025-07 | |
[1] At September 30, 2022, the one-month LIBOR (“L”) was 3.14 %. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for each of our $ 450.0 million senior unsecured revolving credit facility (our “revolving credit facility”), our $ 200.0 million senior unsecured term loan facility (as amended, our “2018 term loan facility”) and our $ 100.0 million senior unsecured term loan facility (our “2016 term loan facility”) is based on the Company’s consolidated leverage ratio, as set forth in the respective loan agreements. Effective interest rates are as follows: DEA – Pleasanton 1.80 %, VA – Golden 5.03 %, MEPCOM – Jacksonville 3.89 %, USFS II Albuquerque 3.92 %, ICE – Charleston 3.93 %, VA – Loma Linda 3.78 %, CBP – Savannah 4.12 %, USCIS – Kansas City 2.05 %. On October 27, 2022, the Company extinguished the mortgage note obligation on MEPCOM - Jacksonville in conjunction with the sale of the property. See Note 15 for additional information. Entered into two interest rate swaps with an effective date of March 29, 2017 with an aggregate notional value of $ 100.0 million to effectively fix the interest rate at 2.77 % annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement. Our 2018 term loan facility has undrawn capacity up to $ 50.0 million of which is available during a delayed draw period. Entered into four interest rate swaps with an effective date of December 13, 2018 with an aggregate notional value of $ 150.0 million to effectively fix the interest rate at 4.01 % annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. Our revolving credit facility had available capacity of $ 272.1 million at September 30, 2022 with an accordion feature that permits us to request additional lender commitments for up to $ 250.0 million of additional capacity, subject to the satisfaction of customary terms and conditions. Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee . |
Debt - Summary of Borrowings (P
Debt - Summary of Borrowings (Parenthetical) (Detail) | 9 Months Ended | |||
Oct. 27, 2022 USD ($) | Sep. 30, 2022 USD ($) Swap | Sep. 30, 2021 USD ($) | ||
Debt Instrument [Line Items] | ||||
Mortgage note obligation | $ 3,942,000 | $ 2,948,000 | ||
Subsequent Event [Member] | Second Amended Purchase and Sale Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from sale of disposition portfolio properties | $ 5,800,000 | |||
Subsequent Event [Member] | Second Amended Purchase and Sale Agreement [Member] | MEPCOM Jacksonville [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgage note obligation | $ 5,800,000 | |||
2018 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | [1] | $ 150,000,000 | ||
2018 Term Loan Facility [Member] | Interest Rate Swaps [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of forward interest rate swaps | Swap | 4 | |||
Forward swaps effective date | Dec. 13, 2018 | |||
Aggregate notional value of interest rate swaps | $ 150,000,000 | |||
Forward swaps interest rate | 4.01% | |||
2016 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 100,000,000 | |||
2016 Term Loan Facility [Member] | Interest Rate Swaps [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of forward interest rate swaps | Swap | 2 | |||
Forward swaps effective date | Mar. 29, 2017 | |||
Aggregate notional value of interest rate swaps | $ 100,000,000 | |||
Forward swaps interest rate | 2.77% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount available under revolving credit facility | $ 272,100,000 | |||
Credit facility additional maximum borrowing capacity | $ 250,000,000 | |||
Line of Credit Facility, Description | revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee | |||
Revolving Credit Facility [Member] | 2018 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount available under revolving credit facility | $ 50,000,000 | |||
Senior Unsecured Notes | 2018 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | 200,000,000 | |||
Senior Unsecured Notes | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | 450,000,000 | |||
Senior Unsecured Credit Facility | 2016 Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | 100,000,000 | |||
Mortgage Notes Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | 247,516,000 | |||
Mortgage Notes Payable [Member] | CBP Savannah [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 10,595,000 | |||
Effective interest rate | 4.12% | |||
Mortgage Notes Payable [Member] | ICE Charleston [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 13,792,000 | |||
Effective interest rate | 3.93% | |||
Mortgage Notes Payable [Member] | MEPCOM Jacksonville [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | [2] | $ 5,858,000 | ||
Effective interest rate | 3.89% | |||
Mortgage Notes Payable [Member] | USFS II Albuquerque [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 13,879,000 | |||
Effective interest rate | 3.92% | |||
Mortgage Notes Payable [Member] | DEA Pleasanton [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 15,700,000 | |||
Effective interest rate | 1.80% | |||
Mortgage Notes Payable [Member] | VA Loma Linda [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 127,500 | |||
Effective interest rate | 3.78% | |||
Mortgage Notes Payable [Member] | VA Golden [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 8,692,000 | |||
Effective interest rate | 5.03% | |||
Mortgage Notes Payable [Member] | USCIS - Kansas City [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, Principal Outstanding | $ 51,500,000 | |||
Effective interest rate | 2.05% | |||
LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan, interest rate | 3.14% | |||
[1] Our 2018 term loan facility has undrawn capacity up to $ 50.0 million of which is available during a delayed draw period. On October 27, 2022, the Company extinguished the mortgage note obligation on MEPCOM - Jacksonville in conjunction with the sale of the property. See Note 15 for additional information. |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Jul. 22, 2022 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||
Net carrying value of real estate collateralizing the mortgage | $ 373,600,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount available under revolving credit facility | 272,100,000 | |
Revolving Credit Facility [Member] | 2018 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount available under revolving credit facility | $ 50,000,000 | |
Initial maturity date | Jul. 22, 2022 | |
Revolving Credit Facility [Member] | 2018 Term Loan Facility [Member] | First Amendment [Member] | ||
Debt Instrument [Line Items] | ||
Extended maturity date | Jul. 24, 2023 |
Derivative and Hedging Activiti
Derivative and Hedging Activities - Schedule of Key Terms and Fair Values of Our Interest Rate Swap Derivatives (Detail) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Interest Swap Rate at 1.41 % Fixed Rate[Member] | |
Derivative [Line Items] | |
Aggregate notional value of interest rate swaps | $ 100,000,000 |
Forward swaps interest rate | 1.41% |
Floating Rate Index | One-Month LIBOR |
Forward swaps effective date | Mar. 29, 2017 |
Expiration Date | Sep. 29, 2023 |
Fair Value | $ 2,881,000 |
Interest Swap Rate at 2.71 % Fixed Rate[Member] | |
Derivative [Line Items] | |
Aggregate notional value of interest rate swaps | $ 150,000,000 |
Forward swaps interest rate | 2.71% |
Floating Rate Index | One-Month LIBOR |
Forward swaps effective date | Dec. 13, 2018 |
Expiration Date | Jun. 19, 2023 |
Fair Value | $ 1,634,000 |
Derivative and Hedging Activi_2
Derivative and Hedging Activities - Schedule of Fair Value of Our Interest Rate Derivatives as Well as Their Classification on Our Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Interest rate swaps - Asset | $ 4,515 | |
Interest rate swaps - Liability | $ (5,700) |
Derivative and Hedging Activi_3
Derivative and Hedging Activities - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Estimates reclassified from accumulated other comprehensive income (loss) decrease to interest expense over the next 12 months | $ (4,500,000) |
Credit risk related contingent features derivatives, net fair value of derivatives in liability position | $ 0 |
Derivative and Hedging Activi_4
Derivative and Hedging Activities - Schedule of Effects of Our Interest Rate Derivatives on Our Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||
Unrealized gain (loss) recognized in AOCI | $ 1,801 | $ (160) | $ 8,046 | $ 324 |
Loss reclassified from AOCI into interest expense | $ (5) | $ (1,340) | $ (2,170) | $ (3,951) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swaps - Asset | $ 4,515 | |
Interest rate swaps - Liability | $ (5,700) | |
Fair Value, Recurring | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swaps - Asset | $ 4,515 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment loss | $ 5,540 | $ 5,540 |
ICE - Otay [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment loss | $ 5,500 | $ 5,500 |
ICE - Otay [Member] | Cash Flow Discount Rate [Member] | Cash Flow [Member] | Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative Investment, Measurement Input | 0.0625 | 0.0625 |
ICE - Otay [Member] | Cash Flow Discount Rate [Member] | Cash Flow [Member] | Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative Investment, Measurement Input | 0.0900 | 0.0900 |
ICE - Otay [Member] | Measurement Input Average Price Per Square Foot of Comparable Sales [Member] | Market Approach [Member] | Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative Investment, Measurement Input | 1.0908 | 1.0908 |
ICE - Otay [Member] | Measurement Input Average Price Per Square Foot of Comparable Sales [Member] | Market Approach [Member] | Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Alternative Investment, Measurement Input | 1.8590 | 1.8590 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Financial Assets And Liabilities Not measured At Fair Value (Detail) $ in Thousands | Sep. 30, 2022 USD ($) | |
Revolving Credit Facility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial liabilities, Carrying amount | $ 177,750 | [1] |
Financial liabilities, Fair value | 177,750 | [2] |
2016 Term Loan Facility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial liabilities, Carrying amount | 100,000 | [1] |
Financial liabilities, Fair value | 100,000 | [2] |
2018 Term Loan Facility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial liabilities, Carrying amount | 150,000 | [1] |
Financial liabilities, Fair value | 150,000 | [2] |
Notes Payable [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial liabilities, Carrying amount | 700,000 | [1] |
Financial liabilities, Fair value | 591,295 | [2] |
Mortgages Payable [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial liabilities, Carrying amount | 247,516 | [1] |
Financial liabilities, Fair value | $ 232,858 | [2] |
[1] The carrying amount consists of principal only. We deem the fair value measurement of the financial liability instrument a Level 3 measurement. |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted Stock | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Compensation expense recognized | $ 0.1 | $ 0.2 | $ 0.5 | $ 0.6 |
Fair value of restricted stock,vested | 1.5 | 0.9 | ||
Unamortized restricted stock expense | 0.5 | $ 0.5 | ||
Weighted average period | 1 year 1 month 6 days | |||
Long Term Incentive Plan | ||||
Stockholders Equity Note Disclosure [Line Items] | ||||
Compensation expense recognized | 1.5 | $ 1.1 | $ 4.4 | 3.1 |
Fair value of restricted stock,vested | 5.5 | $ 4.5 | ||
Unamortized restricted stock expense | $ 7.9 | $ 7.9 | ||
Weighted average period | 1 year 9 months 18 days |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of Restricted Shares (Details) | 9 Months Ended | |
Sep. 30, 2022 $ / shares shares | ||
Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares/Units, Outstanding beginning balance | shares | 86,006 | |
Shares/Units, Vested | shares | (71,168) | |
Shares/Units, Granted | shares | 29,078 | |
Shares/Units, Forfeited | shares | (2,601) | |
Shares/Units, Outstanding ending balance | shares | 41,315 | |
Weighted average grant date fair value, Outstanding beginning balance | $ / shares | $ 19.16 | |
Weighted average grant date fair value, Vested | $ / shares | 18.49 | |
Weighted average grant date fair value, Granted | $ / shares | 18.81 | |
Weighted average grant date fair value, Forfeited | $ / shares | 21.16 | |
Weighted average grant date fair value, Outstanding ending balance | $ / shares | $ 19.94 | |
Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares/Units, Outstanding beginning balance | shares | 651,238 | [1] |
Shares/Units, Vested | shares | (115,412) | |
Shares/Units, Granted | shares | 360,839 | |
Shares/Units, Outstanding ending balance | shares | 896,665 | |
Weighted average grant date fair value, Outstanding beginning balance | $ / shares | $ 21.02 | |
Weighted average grant date fair value, Vested | $ / shares | 18.66 | |
Weighted average grant date fair value, Granted | $ / shares | 17.48 | |
Weighted average grant date fair value, Outstanding ending balance | $ / shares | $ 19.90 | |
[1] Reflects the number of LTIP units issued to the grantee on the date which may be different from the number of LTIP units actually earned in the case of performance-based LTIP units. |
Equity Incentive Plan - Summa_2
Equity Incentive Plan - Summary of Grants (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
Services | January 3, 2022 | |
Vest Date | Dec. 31, 2024 |
Units Granted | 110,906 |
Services | May 11, 2022 | |
Units Granted | 11,238 |
Operational | January 3, 2022 | |
Performance Period End Date | Dec. 31, 2024 |
Units Granted | 80,160 |
Performance Shares | January 3, 2022 | |
Performance Period End Date | Dec. 31, 2024 |
Units Granted | 158,535 |
Long Term Incentive Plan | |
Units Granted | 360,839 |
Equity Incentive Plan - Summa_3
Equity Incentive Plan - Summary of Significant Assumptions Used to Value the Total Shareholder (Details) - Long Term Incentive Plan | 9 Months Ended |
Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 27% |
Dividend yield | 4.80% |
Risk-free interest rate | 1% |
Expected life | 3 years |
Equity - Summary of Changes In
Equity - Summary of Changes In Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Shareholders Equity [Line Items] | ||||
Balance | $ 1,441,995 | $ 1,334,537 | $ 1,441,581 | $ 1,299,970 |
Stock based compensation | 1,625 | 1,333 | 4,891 | 3,700 |
Dividends and distributions paid | 27,380 | (25,329) | 81,795 | (74,106) |
Issuance of common stock, net | 49,947 | 9,399 | 89,905 | |
Contribution of property for common units | 17,361 | 20,790 | ||
Unrealized gain (loss) on interest rate swaps, net | 1,806 | 1,180 | 10,216 | 4,275 |
Net income | 749 | 9,042 | 17,142 | 26,176 |
Balance | $ 1,418,795 | 1,370,710 | $ 1,418,795 | 1,370,710 |
Balance (in shares) | 90,814,021 | 90,814,021 | ||
Common Stock Par Value [Member] | ||||
Shareholders Equity [Line Items] | ||||
Balance | $ 908 | $ 839 | $ 901 | $ 821 |
Balance (in shares) | 90,816,622 | 83,931,290 | 90,147,868 | 82,106,256 |
Forfeiture of unvested restricted stock, (in shares) | (2,601) | |||
Grant of unvested restricted stock, net (in shares) | 11,066 | 26,477 | 35,865 | |
Redemption of common units for shares of common stock | $ 1 | $ 2 | $ 3 | |
Redemption of common units for shares of common stock (in shares) | 59,774 | 204,751 | 303,185 | |
Issuance of common stock, net | $ 21 | $ 5 | $ 37 | |
Issuance of common stock (in share) | 2,114,408 | 434,925 | 3,671,232 | |
Balance | $ 908 | $ 861 | $ 908 | $ 861 |
Balance (in shares) | 90,814,021 | 86,116,538 | 90,814,021 | 86,116,538 |
Additional Paid-in Capital [Member] | ||||
Shareholders Equity [Line Items] | ||||
Balance | $ 1,621,288 | $ 1,471,928 | $ 1,604,712 | $ 1,424,787 |
Stock based compensation | 126 | 216 | 478 | 600 |
Redemption of common units for shares of common stock | 836 | 2,909 | 4,258 | |
Issuance of common stock, net | 49,926 | 9,394 | 89,868 | |
Allocation of non-controlling interest in Operating Partnership | 1,214 | (1,460) | 5,135 | 1,933 |
Balance | 1,622,628 | 1,521,446 | 1,622,628 | 1,521,446 |
Retained Earnings [Member] | ||||
Shareholders Equity [Line Items] | ||||
Balance | 76,561 | 47,157 | 62,023 | 31,965 |
Net income | 642 | 7,977 | 15,180 | 23,169 |
Balance | 77,203 | 55,134 | 77,203 | 55,134 |
Cumulative Dividends [Member] | ||||
Shareholders Equity [Line Items] | ||||
Balance | (427,851) | (334,815) | (379,895) | (291,652) |
Dividends and distributions paid | 24,066 | (22,254) | 72,022 | (65,417) |
Balance | (451,917) | (357,069) | (451,917) | (357,069) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Shareholders Equity [Line Items] | ||||
Balance | 2,393 | (8,539) | (5,072) | (11,351) |
Unrealized gain (loss) on interest rate swaps, net | 1,594 | 1,013 | 9,059 | 3,825 |
Balance | 3,987 | (7,526) | 3,987 | (7,526) |
Non-controlling Interest in Operating Partnership [Member] | ||||
Shareholders Equity [Line Items] | ||||
Balance | 168,696 | 157,967 | 158,912 | 145,400 |
Stock based compensation | 1,499 | 1,117 | 4,413 | 3,100 |
Dividends and distributions paid | 3,314 | (3,075) | 9,773 | (8,689) |
Redemption of common units for shares of common stock | (837) | (2,911) | (4,261) | |
Contribution of property for common units | 17,361 | 20,790 | ||
Unrealized gain (loss) on interest rate swaps, net | 212 | 167 | 1,157 | 450 |
Net income | 107 | 1,065 | 1,962 | 3,007 |
Allocation of non-controlling interest in Operating Partnership | (1,214) | 1,460 | (5,135) | (1,933) |
Balance | $ 165,986 | $ 157,864 | $ 165,986 | $ 157,864 |
Equity - Summary of Changes I_2
Equity - Summary of Changes In Stockholders' Equity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||||
Dividends and distributions paid, per share | $ 0.265 | $ 0.265 | $ 0.795 | $ 0.785 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Dividends Payable [Line Items] | |||||
Dividend | $ 0.265 | $ 0.265 | $ 0.795 | $ 0.785 | |
Q1 2022 [Member] | |||||
Dividends Payable [Line Items] | |||||
Declaration Date | Apr. 27, 2022 | ||||
Record Date | May 13, 2022 | ||||
Payment Date | May 25, 2022 | ||||
Dividend | [1] | $ 0.265 | |||
Q2 2022 [Member] | |||||
Dividends Payable [Line Items] | |||||
Declaration Date | Jul. 27, 2022 | ||||
Record Date | Aug. 11, 2022 | ||||
Payment Date | Aug. 23, 2022 | ||||
Dividend | [1] | $ 0.265 | |||
Q3 2022 [Member] | |||||
Dividends Payable [Line Items] | |||||
Declaration Date | Oct. 26, 2022 | ||||
Record Date | Nov. 11, 2022 | ||||
Payment Date | Nov. 23, 2022 | ||||
Dividend | [1] | $ 0.265 | |||
[1] Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of performance-based LTIP units are entitled to receive dividends per LTIP unit equal to 10 % of the dividend paid per common unit. After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit. Holders of LTIP units that are not subject to the attainment of performance goals are entitled to receive dividends per LTIP unit equal to 100 % of the dividend paid per common unit beginning on the grant date. |
Equity - Summary of Dividends_2
Equity - Summary of Dividends Declared (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Performance Based LTIP Units[Member] | |
Dividends Payable [Line Items] | |
Operating partnership dividend rate percentage | 10% |
Service Based LTIP Units[Member] | |
Dividends Payable [Line Items] | |
Operating partnership dividend rate percentage | 100% |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 10, 2022 | Dec. 28, 2021 | Aug. 11, 2021 | Jun. 22, 2021 | Dec. 20, 2019 | Sep. 30, 2022 | Apr. 28, 2022 | Dec. 31, 2021 |
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Common Stock, shares issued | 90,814,021 | 90,147,868 | ||||||
Underwriters option to purchase additional shares | 6,300,000 | |||||||
Initial forward price | $ 21.64 | |||||||
Contribution of property for common units, partial consideration | 827,791 | |||||||
Board of Directors [Member] | Share Repurchase Program [Member] | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Repurchase of common stock,percentage | 5% | |||||||
Board of Directors [Member] | Share Repurchase Program [Member] | Maximum [Member] | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Repurchase of common stock,shares | 0 | 4,538,994 | ||||||
2019 ATM Program [Member] | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Aggregate offering price of shares of common stock that the Company may issue and sell | $ 300 | |||||||
Gross sale of common stock available for grant | $ 87.4 | |||||||
2021 ATM Programs [Member] | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Aggregate offering price of shares of common stock that the Company may issue and sell | $ 300 | |||||||
Number of Shares Sold | 0 | |||||||
Gross sale of common stock available for grant | $ 300 | |||||||
Forward Sales Agreement | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Common Stock, shares issued | 3,991,000 | 6,300,000 | 0 | |||||
Proceeds from issuance initial public offering | $ 85 |
Equity - Schedule of Informatio
Equity - Schedule of Information with Respect to ATM Program (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Subsidiary Sale Of Stock [Line Items] | ||||
Net Proceeds | $ 9,504 | $ 90,914 | ||
2019 ATM Program [Member] | ||||
Subsidiary Sale Of Stock [Line Items] | ||||
Number of Shares Issued | [1] | 434,925 | 434,925 | |
Net Proceeds | [1] | $ 9,409 | $ 9,409 | |
[1] Shares issued by the Company, which were all issued in settlement of forward sales transactions. Additionally, as of September 30, 2022 , the Company had entered into forward sales transactions under the 2019 ATM Program for the sale of an additional 1,950,000 shares of its common stock that have not yet been settled. Subject to its right to elect net share settlement, the Company expects to physically settle the forward sales transactions by the maturity dates set forth in each applicable forward sale transaction placement notice, which dates range from December 2022 to August 2023. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $ 21.82 per share, the Company expects to receive net proceeds of approximately $ 42.6 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. The Company accounted for the forward sale transactions as equity. |
Equity - Schedule of Informat_2
Equity - Schedule of Information with Respect to ATM Program (Parenthetical) (Detail) - Forward Sales Agreement - 2019 ATM Program [Member] $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Subsidiary Sale Of Stock [Line Items] | |
Number of unsettled common stock shares sold | shares | 1,950,000 |
Net proceeds from unsettled common stock shares sold | $ | $ 42.6 |
Weighted average price per share | $ / shares | $ 21.82 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Earnings Per Share Basic And Diluted [Line Items] | |||||
Net income | $ 749 | $ 9,042 | $ 17,142 | $ 26,176 | |
Less: Non-controlling interest in Operating Partnership | (107) | (1,065) | (1,962) | (3,007) | |
Net income available to Easterly Government Properties, Inc. | 642 | 7,977 | 15,180 | 23,169 | |
Less: Dividends on participating securities | 137 | (120) | 410 | (350) | |
Net income available to common stockholders | $ 505 | $ 7,857 | $ 14,770 | $ 22,819 | |
Denominator for basic EPS | 90,772,706 | 83,961,693 | 90,560,471 | 83,306,654 | |
Denominator for diluted EPS | 91,119,372 | 84,472,257 | 90,886,108 | 83,774,752 | |
Basic EPS | $ 0.01 | $ 0.09 | $ 0.16 | $ 0.27 | |
Diluted EPS | $ 0.01 | $ 0.09 | $ 0.16 | $ 0.27 | |
Stock Compensation Plan [Member] | |||||
Earnings Per Share Basic And Diluted [Line Items] | |||||
Dilutive effect | 11,455 | 49,200 | 20,646 | 50,299 | |
Long Term Incentive Plan | |||||
Earnings Per Share Basic And Diluted [Line Items] | |||||
Dilutive effect | [1] | 335,211 | 425,317 | 304,991 | 384,694 |
Forward Sale Agreements [Member] | |||||
Earnings Per Share Basic And Diluted [Line Items] | |||||
Dilutive effect | [2] | 36,047 | 33,105 | ||
[1] During both the three and nine months ended September 30, 2022 , there were 314,529 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During both the three and nine months ended September 30, 2021 , there were 195,096 unvested performance-based LTIP units that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During both the three and nine months ended September 30, 2022 , there were 4,259,000 shares underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During the three and nine months ended September 30, 2021 , there were 435,289 and 6,735,289 shares, respectively, underlying unsettled forward sales transactions that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unvested Performance-Based Long Term Incentive Plan [Member] | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 314,529 | 195,096 | 314,529 | 195,096 |
Underlying Unsettled Forward Sales Transactions [Member] | ||||
Earnings Per Share Basic And Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 4,259,000 | 435,289 | 4,259,000 | 435,289 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Lessee Lease Description [Line Items] | |
Average age of property | 18 years |
Right-of-use asset | $ 1.3 |
Operating lease liability | $ 1.4 |
CALIFORNIA | San Diego | Lease | |
Lessee Lease Description [Line Items] | |
Operating lease term of contract | 7 years |
Estimated lease commencement date | Oct. 26, 2022 |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Fixed Lease Payments Under Company's Leases (Detail) $ in Thousands | Sep. 30, 2022 USD ($) | |
Leases [Abstract] | ||
Fixed lease payments, Total | $ 2,368,977 | |
Fixed lease payments, 2022 | 62,886 | [1] |
Fixed lease payments, 2023 | 243,536 | |
Fixed lease payments, 2024 | 223,796 | |
Fixed lease payments, 2025 | 212,728 | |
Fixed lease payments, 2026 | 203,743 | |
Fixed lease payments, Thereafter | $ 1,422,288 | |
[1] Represents the three months ended December 31, 2022. |
Leases - Summary of Composition
Leases - Summary of Composition of Lease Revenue Recognized Between Fixed and Variable Components (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Leased Assets [Line Items] | ||||
Rental income | $ 72,643 | $ 67,439 | $ 214,238 | $ 197,713 |
Fixed | ||||
Operating Leased Assets [Line Items] | ||||
Rental income | 68,033 | 62,359 | 199,411 | 183,529 |
Variable | ||||
Operating Leased Assets [Line Items] | ||||
Rental income | $ 4,610 | $ 5,080 | $ 14,827 | $ 14,184 |
Leases - Schedule of Quantitati
Leases - Schedule of Quantitative Information for Company's Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Cash flows from operating lease costs | $ 121 | $ 119 | $ 324 | $ 387 |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Fixed Lease Payments Under Company's Corporate Office Leases (Detail) - Corporate Office Leases [Member] $ in Thousands | Sep. 30, 2022 USD ($) | |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | ||
2022 | $ 54 | [1] |
2023 | 277 | |
2024 | 446 | |
2025 | 456 | |
2026 | 309 | |
Total future minimum lease payments | 1,542 | |
Imputed interest | (124) | |
Total | $ 1,418 | |
[1] Represents the three months ended December 31, 2022. |
Revenue - Summary of Revenue fr
Revenue - Summary of Revenue from Tenant Construction Projects Disaggregated by Tenant Agency (Detail) - ASU 2014-09 [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | $ 1,639 | $ 4,090 | ||
Department of Veteran Affairs ("VA") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | $ 1,271 | 352 | $ 1,573 | 1,460 |
Federal Bureau of Investigation ("FBI") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 212 | 1,141 | 1,057 | 1,791 |
U.S Joint Staff Command ("JSC") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 69 | 34 | 525 | 60 |
Food And Drug Administration ("FDA") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 27 | 58 | 231 | 82 |
U.S. Citizenship and Immigration Services ("USCIS") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 87 | 197 | 108 | |
Customs and Border Protection ("CBP") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 155 | |||
National Park Services ("NPS") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 7 | 100 | 7 | |
Federal Emergency Management Agency ("FEMA") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 96 | 96 | 15 | |
Occupational Safety and Health Administration ("OSHA") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 4 | 72 | ||
Drug Enforcement Agency (“DEA”) [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 40 | |||
Internal Revenue Service ("IRS") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 33 | 127 | ||
U.S. Coast Guard ("USCG") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 7 | 33 | 7 | |
Patent and Trademark Office ("PTO") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 14 | |||
The Judiciary of the U.S. Government ("JUD") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 10 | 7 | 14 | 11 |
Federal Aviation Administration ("FAA") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 14 | 14 | ||
General Services Administration - Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 6 | 25 | ||
Health Resources and Services Administration ("HRSA") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 4 | 3 | ||
National Weather Service ("NWS") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 2 | 2 | ||
Immigration and Customs Enforcement ("ICE") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 17 | 17 | ||
Department of Energy (“DOE”) [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 95 | |||
Environmental Protection Agency ("EPA") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 204 | |||
Department of Transportation ("DOT") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 9 | 49 | ||
Military Entrance Processing Command ("MEPCOM") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | 18 | |||
Bureau of the Fiscal Service ("BFS") [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Tenant Construction Project Income | $ 1,792 | $ 7 | $ 4,166 | $ 11 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||||
Tenant accounts receivable | $ 60,250,000 | $ 60,250,000 | $ 58,733,000 | ||
ASU 2014-09 [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable related to tenant construction projects | 5,300,000 | 5,300,000 | 5,000,000 | ||
Contract assets | 0 | 0 | 0 | ||
Contract liabilities | 0 | 0 | 0 | ||
ASU 2014-09 [Member] | COVID-19 [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Income recognized | 100,000 | $ 300,000 | 100,000 | $ 1,000,000 | |
Tenant accounts receivable | 100,000 | ||||
ASU 2014-09 [Member] | COVID-19 [Member] | Maximum [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Tenant accounts receivable | 100,000 | 100,000 | |||
ASU 2014-09 [Member] | Various GSA - Buffalo Property [Member] | Parking Garage [Member] | |||||
Disaggregation Of Revenue [Line Items] | |||||
Income recognized | 100,000 | $ 100,000 | 200,000 | $ 200,000 | |
Tenant accounts receivable | $ 100,000 | $ 100,000 | $ 100,000 |
Concentrations Risk - Additiona
Concentrations Risk - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 Property | |
Wholly Owned Properties [Member] | |
Concentration Risk [Line Items] | |
Number of properties | 95 |
CALIFORNIA | |
Concentration Risk [Line Items] | |
Number of properties | 17 |
Lease Income [Member] | Customer Concentration Risk [Member] | CALIFORNIA | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 19.70% |
Rentable Square Feet [Member] | Customer Concentration Risk [Member] | CALIFORNIA | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 14.70% |
U.S. Government [Member] | Lease Income [Member] | Customer Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 97.90% |
Non Governmental Tenants [Member] | Lease Income [Member] | Customer Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 2.10% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |||
Asset management income | $ 377,000 | $ 942,000 | |
JV [Member] | |||
Related Party Transaction [Line Items] | |||
Asset management income | $ 400,000 | $ 900,000 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | 9 Months Ended | |||
Oct. 27, 2022 USD ($) Property | Oct. 12, 2022 USD ($) ft² Property | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Subsequent Event [Line Items] | ||||
Mortgage note obligation | $ 3,942,000 | $ 2,948,000 | ||
Second Amended Purchase and Sale Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Carrying value of disposition portfolio properties | $ 187,100,000 | |||
Subsequent Event [Member] | Second Amended Purchase and Sale Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Area acquired | ft² | 668,000 | |||
Number of properties | Property | 10 | |||
Purchase price | $ 205,300,000 | |||
Non-refundable deposit from third party | $ 3.5 | |||
Number of real estate properties sold | Property | 9 | |||
Proceeds from sale of disposition portfolio properties | $ 5,800,000 | |||
Subsequent Event [Member] | Second Amended Purchase and Sale Agreement [Member] | MEPCOM Jacksonville [Member] | ||||
Subsequent Event [Line Items] | ||||
Mortgage note obligation | $ 5,800,000 |