Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
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 | 93,389,906 | |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Real estate properties, net | $ 2,277,307 | $ 2,285,308 |
Cash and cash equivalents | 8,852 | 7,578 |
Restricted cash | 11,621 | 9,696 |
Tenant accounts receivable | 58,334 | 58,835 |
Investment in unconsolidated real estate venture | 270,889 | 271,644 |
Intangible assets, net | 151,335 | 157,282 |
Interest rate swaps | 2,460 | 4,020 |
Prepaid expenses and other assets | 38,488 | 35,022 |
Total assets | 2,819,286 | 2,829,385 |
Liabilities | ||
Revolving credit facility | 49,500 | 65,500 |
Term loan facilities, net | 249,079 | 248,972 |
Notes payable, net | 696,171 | 696,052 |
Mortgage notes payable, net | 223,942 | 240,847 |
Intangible liabilities, net | 15,392 | 16,387 |
Deferred revenue | 81,881 | 83,309 |
Interest rate swaps | 454 | |
Accounts payable, accrued expenses and other liabilities | 62,828 | 67,336 |
Total liabilities | 1,379,247 | 1,418,403 |
Equity | ||
Common stock, par value $0.01, 200,000,000 shares authorized, 93,389,906 and 90,814,021 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 934 | 908 |
Additional paid-in capital | 1,672,467 | 1,622,913 |
Retained earnings | 97,388 | 93,497 |
Cumulative dividends | (500,051) | (475,983) |
Accumulated other comprehensive income (loss) | 1,773 | 3,546 |
Total stockholders’ equity | 1,272,511 | 1,244,881 |
Non-controlling interest in Operating Partnership | 167,528 | 166,101 |
Total equity | 1,440,039 | 1,410,982 |
Total liabilities and equity | $ 2,819,286 | $ 2,829,385 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 93,389,906 | 90,814,021 |
Common Stock, shares outstanding | 93,389,906 | 90,814,021 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues | ||
Rental income | $ 68,148 | $ 70,439 |
Asset management income | 517 | 248 |
Total revenues | 71,220 | 72,302 |
Expenses | ||
Property operating | 17,888 | 15,458 |
Real estate taxes | 7,468 | 7,826 |
Depreciation and amortization | 23,081 | 24,159 |
Acquisition costs | 461 | 362 |
Corporate general and administrative | 7,295 | 5,983 |
Total expenses | 56,193 | 53,788 |
Other income (expense) | ||
Income from unconsolidated real estate venture | 1,402 | 631 |
Interest expense, net | (12,015) | (10,882) |
Net income | 4,414 | 8,263 |
Non-controlling interest in Operating Partnership | (523) | (922) |
Net income available to Easterly Government Properties, Inc. | $ 3,891 | $ 7,341 |
Net income available to Easterly Government Properties, Inc. per share: | ||
Basic | $ 0.04 | $ 0.08 |
Diluted | $ 0.04 | $ 0.08 |
Weighted-average common shares outstanding | ||
Basic | 91,099,357 | 90,150,518 |
Diluted | 91,329,140 | 90,571,571 |
Dividends declared per common share | $ 0.265 | $ 0.265 |
Tenant Reimbursements [Member] | ||
Revenues | ||
Total revenues | $ 2,075 | $ 1,144 |
Other Income [Member] | ||
Revenues | ||
Total revenues | $ 480 | $ 471 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 4,414 | $ 8,263 |
Other comprehensive income: | ||
Unrealized gain (loss) on interest rate swaps, net | (2,013) | 5,507 |
Other comprehensive income (loss) | (2,013) | 5,507 |
Comprehensive income | 2,401 | 13,770 |
Non-controlling interest in Operating Partnership | (523) | (922) |
Other comprehensive (income) loss attributable to non-controlling interest | 240 | (607) |
Comprehensive income attributable to Easterly Government Properties, Inc. | $ 2,118 | $ 12,241 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 4,414 | $ 8,263 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 23,081 | 24,159 |
Straight line rent | (463) | (982) |
Income from unconsolidated real estate venture | (1,402) | (631) |
Amortization of above- / below-market leases | (700) | (860) |
Amortization of unearned revenue | (1,484) | (1,398) |
Amortization of loan premium / discount | (270) | (285) |
Amortization of deferred financing costs | 514 | 509 |
Amortization of lease inducements | 216 | 212 |
Distributions from investment in unconsolidated real estate venture | 2,158 | 1,819 |
Non-cash compensation | 1,668 | 1,629 |
Net change in: | ||
Tenant accounts receivable | 734 | 1,235 |
Prepaid expenses and other assets | (4,313) | (4,728) |
Deferred revenue associated with operating leases | 55 | 175 |
Principal payments on operating lease obligations | (127) | (95) |
Accounts payable, accrued expenses and other liabilities | (2,456) | (4,910) |
Net cash provided by operating activities | 21,625 | 24,112 |
Cash flows from investing activities | ||
Real estate acquisitions and deposits | 124 | (498) |
Additions to operating properties | (7,756) | (5,275) |
Additions to development properties | (2,944) | (965) |
Investment in unconsolidated real estate venture | (21,723) | |
Net cash used in investing activities | (10,576) | (28,461) |
Cash flows from financing activities | ||
Issuance of common shares | 52,414 | 9,504 |
Credit facility draws | 20,750 | 32,000 |
Credit facility repayments | (36,750) | (11,500) |
Repayments of mortgage notes payable | (16,744) | (1,300) |
Dividends and distributions paid | (27,464) | (27,035) |
Payment of offering costs | (56) | (125) |
Net cash provided by (used in) financing activities | (7,850) | 1,544 |
Net increase (decrease) in Cash and cash equivalents and Restricted cash | 3,199 | (2,805) |
Cash and cash equivalents and Restricted cash, beginning of period | 17,274 | 20,143 |
Cash and cash equivalents and Restricted cash, end of period | 20,473 | 17,338 |
Supplemental disclosure of cash flow information is as follows (amounts in thousands): | ||
Cash paid for interest (net of capitalized interest of $339 and $257 in 2023 and 2022) | 11,080 | 9,705 |
Supplemental disclosure of non-cash information | ||
Offering costs accrued, not paid | 10 | 10 |
Deferred asset acquisition costs accrued, not paid | 1 | 2 |
Unrealized gain (loss) on interest rate swaps, net | (2,013) | 5,507 |
Properties acquired for Common Units | 219 | |
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 | (140) | (2,700) |
Common stock | 2 | |
Additional paid-in capital | 140 | 2,698 |
Operating Properties [Member] | ||
Supplemental disclosure of non-cash information | ||
Additions to properties accrued, not paid | 2,255 | 2,360 |
Development Properties [Member] | ||
Supplemental disclosure of non-cash information | ||
Additions to properties accrued, not paid | $ 5,380 | $ 3,299 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement Of Cash Flows [Abstract] | ||
Capitalized interest | $ 339 | $ 257 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022, 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, 2022 filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2023. 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 March 31, 2023, we wholly owned 78 operating properties and eight operating properties through an unconsolidated joint venture (the “JV”) in the United States, encompassing approximately 8.6 million leased square feet, including 85 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 March 31, 2023, our operating properties were 98 % 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 88.4 % of the aggregate limited partnership interests in the Operating Partnership (“common units”) at March 31, 2023. 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 March 31, 2023 and December 31, 2022, the consolidated results of operations for the three months ended March 31, 2023 and 2022, and the consolidated cash flows for the three months ended March 31, 2023 and 2022. 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, the results of which form the basis for making judgments 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 | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The significant accounting policies used in the preparation of our condensed consolidated financial statements are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 . |
Real Estate and Intangibles
Real Estate and Intangibles | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Real Estate and Intangibles | 3. Real Estate and Intangibles Consolidated Real Estate and Intangibles Real estate and intangibles consisted of the following as of March 31, 2023 (amounts in thousands): Total Real estate properties, net Land $ 213,592 Building and improvements 2,285,139 Acquired tenant improvements 81,666 Construction in progress 35,211 Accumulated depreciation ( 338,301 ) Total Real estate properties, net 2,277,307 Intangible assets, net In-place leases 271,066 Acquired leasing commissions 68,642 Above market leases 14,620 Payment in lieu of taxes 6,394 Accumulated amortization ( 209,387 ) Total Intangible assets, net 151,335 Intangible liabilities, net Below market leases ( 72,037 ) Accumulated amortization 56,645 Total Intangible liabilities, net ( 15,392 ) No operating properties were acquired or disposed of during the three months ended March 31, 2023. During the three months ended March 31, 2023, we incurred $ 0.5 million of acquisition-related expenses mainly consisting of internal costs associated with future property acquisitions. The following table summarizes the scheduled amortization of our acquired above- and below-market lease intangibles for each of the five succeeding years as of March 31, 2023 (amounts in thousands): Acquired Above-Market Lease Intangibles Acquired Below-Market Lease Intangibles 2023 (1) $ 882 $ ( 2,912 ) 2024 1,129 ( 2,938 ) 2025 1,097 ( 2,246 ) 2026 1,096 ( 2,008 ) 2027 1,096 ( 1,783 ) (1) Represents the nine months ended December 31, 2023. 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, Joint Venture Ownership Interest 2023 MedBase Venture 53.0 % $ 270,889 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. No operating properties were acquired by the JV during the three months ended March 31, 2023. As of March 31, 2023 , eight 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 $ 0.5 million and $ 0.2 million for the three months ended March 31, 2023 and 2022, respectively. The following is a summary of financial information for the JV (amounts in thousands): As of March 31, Balance sheet information: 2023 Real estate, net $ 428,254 Other assets, net (1) 90,287 Total assets $ 518,541 Total liabilities (2) $ 8,069 Total equity 510,472 Total liabilities and equity $ 518,541 Company’s share of equity $ 270,514 Basis differential (3) 375 Carrying value of the Company’s investment in the unconsolidated venture $ 270,889 (1) At March 31, 2023 , this amount included right-of-use assets - finance leases totaling approximately $ 4.9 million representing a ground lease at VA – Lubbock. (2) At March 31, 2023 , 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 our historical cost basis and the basis reflected at the joint venture level. For the three months ended March 31, Income statement information: 2023 2022 Total revenue $ 9,780 $ 4,698 Operating income 2,687 1,231 Net income 2,646 1,190 Company’s share of net income $ 1,402 $ 631 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt At March 31, 2023, our consolidated borrowings consisted of the following (amounts in thousands): Principal Outstanding Interest Current Loan March 31, 2023 Rate (1) Maturity Revolving credit facility: Revolving credit facility (2) $ 49,500 S + 145 bps July 2025 (3) Total revolving credit facility 49,500 Term loan facilities: 2016 term loan facility 100,000 2.82 % (5) March 2024 2018 term loan facility (4) 150,000 3.98 % (6) July 2026 Total term loan facilities 250,000 Less: Total unamortized deferred financing fees ( 921 ) Total term loan facilities, net 249,079 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 ( 3,829 ) Total notes payable, net 696,171 Mortgage notes payable: VA – Golden 8,594 5.00 % (7) April 2024 USFS II – Albuquerque 12,992 4.46 % (7) July 2026 ICE – Charleston 13,086 4.21 % (7) January 2027 VA – Loma Linda 127,500 3.59 % (7) July 2027 CBP – Savannah 10,182 3.40 % (7) July 2033 USCIS – Kansas City 51,500 3.68 % (7) August 2024 Total mortgage notes payable 223,854 Less: Total unamortized deferred financing fees ( 1,282 ) Less: Total unamortized premium/discount 1,370 Total mortgage notes payable, net 223,942 Total debt $ 1,218,692 (1) At March 31, 2023, the one-month SOFR (“S”) was 4.80 %. 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 our consolidated leverage ratio, as set forth in the respective loan agreements. (2) Our revolving credit facility had available capacity of $ 400.4 million at March 31, 2023 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 2.82 % annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement. We transitioned the two interest rate swaps from LIBOR to SOFR effective November 29, 2022. (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 3.98 % annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. We transitioned the four interest rate swaps from LIBOR to SOFR effective December 23, 2022. (7) Effective interest rates are as follows: VA – Golden 5.03 %, USFS II – Albuquerque 3.92 %, ICE – Charleston 3.93 %, VA – Loma Linda 3.78 %, CBP – Savannah 4.12 %, USCIS – Kansas City 2.05 %. As of March 31, 2023, the net carrying value of real estate collateralizing our mortgages payable totaled $ 354.3 million. See Note 7 for the fair value of our debt instruments. On January 26, 2023, we used $ 15.7 million of available cash to extinguish the mortgage note obligation on DEA – Pleasanton. On February 3, 2023, we entered into three SOFR-based interest rate swaps each with a notional value of $100.0 million that were designated as cash flow hedges of interest rate risk. These interest rate swaps will become effective as our existing swaps mature in June and September 2023 and will mature in 2024 and 2025. Financial Covenant Considerations As of March 31, 2023, we were in compliance with all financial and other covenants related to our debt. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (amounts in thousands): Notional Amount Fixed Rate Floating Rate Index Effective Date Expiration Date Fair Value $ 100,000 1.37 % One-Month SOFR CME Term November 29, 2022 September 29, 2023 $ 1,712 $ 150,000 2.58 % One-Month SOFR CME Term December 23, 2022 June 19, 2023 $ 748 $ 100,000 4.01 % USD-SOFR with -5 Day Lookback June 23, 2023 March 23, 2025 $ ( 153 ) $ 100,000 3.70 % USD-SOFR with -5 Day Lookback September 29, 2023 June 29, 2025 $ ( 116 ) $ 100,000 4.18 % USD-SOFR with -5 Day Lookback June 23, 2023 December 23, 2024 $ ( 185 ) 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 March 31, 2023 Interest rate swaps - Asset $ 2,460 Interest rate swaps - Liability ( 454 ) 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 our variable rate debt. We estimate that $ 3.5 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 March 31, 2023 2022 Unrealized gain (loss) recognized in AOCI $ ( 506 ) $ 4,239 Gain (loss) reclassified from AOCI into interest expense 1,507 ( 1,268 ) Credit-Risk-Related Contingent Features We have agreements with each of our derivative counterparties that contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on such indebtedness. As of March 31, 2023, we were no t in a net liability position with any derivative counterparty. As of March 31, 2023, we were in compliance with these agreements and had not posted any collateral related to these agreements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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 we determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. We have determined that the significance of the impact of the credit valuation adjustments made to our 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 our derivatives held as of March 31, 2023 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 our assets and liabilities measured at fair value on a recurring basis as of March 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall (amounts in thousands): As of March 31, 2023 Balance Sheet Line Item Level 1 Level 2 Level 3 Interest rate swaps - Asset $ — $ 2,460 $ — Interest rate swaps - Liability $ — $ ( 454 ) $ — 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. Financial assets and liabilities not measured at fair value As of March 31, 2023, 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 March 31, 2023 Financial liabilities Carrying Amount (1) Fair Value (2) Revolving credit facility $ 49,500 $ 49,500 2016 term loan facility $ 100,000 $ 100,000 2018 term loan facility $ 150,000 $ 150,000 Notes payable $ 700,000 $ 598,124 Mortgages payable $ 223,854 $ 211,459 (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 | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity Incentive Plan | 8. Equity Incentive Plan Restricted Shares We award 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 the three months ended March 31, 2023 and 2022, respectively. The fair value of restricted stock that vested was less than $ 0.1 million and $ 1.1 million during the three months ended March 31, 2023 and 2022, respectively, based on the market price at the vesting date. The balance of unamortized restricted stock expense as of March 31, 2023 was $ 0.3 million, which is expected to be recognized over a weighted‑average period of 1.4 years. A summary of the status of our restricted shares as of March 31, 2023 and changes during the three months ended March 31, 2023 is presented below: Restricted Shares Restricted Shares Weighted Average Grant Date Outstanding, December 31, 2022 41,315 $ 19.94 Vested ( 2,622 ) 21.76 Granted 6,686 13.54 Forfeited — — Outstanding, March 31, 2023 45,379 $ 18.89 LTIP Units We grant 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 us 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 three months ended March 31, 2023: Award Grant Performance Period Vest Date Units Granted Service January 3, 2023 — December 31, 2025 219,859 Operational January 3, 2023 December 31, 2025 1 127,291 Performance January 3, 2023 December 31, 2025 1 148,633 Service March 2, 2023 — March 2, 2026 3,438 2023 LTIP Grant 499,221 (1) Earned units will vest on the date of compensation committee determination of performance. We value our operational LTIP unit awards that are subject to us 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 us 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 three months ended March 31, 2023: Expected volatility 29.0 % Dividend yield 5.6 % Risk-free interest rate 4.2 % Expected life 3 years The fair value of LTIP units that vested were $ 3.8 million and $ 5.3 million during the three months ended March 31, 2023 and 2022 , respectively, based on the market price at the vesting date. Compensation expense related to LTIP unit awards was $ 1.5 million and $ 1.4 million for the three months ended March 31, 2023 and 2022, respectively. The balance of unamortized LTIP expense as of March 31, 2023 was $ 10.8 million, which is expected to be recognized over a weighted‑average period of 2.1 years. As of March 31, 2023, 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 March 31, 2023 and changes during the three months ended March 31, 2023 are presented below: LTIP Units (1) LTIP Units Weighted Average Grant Date Fair Value Per Share Outstanding, December 31, 2022 896,665 $ 19.90 Vested ( 193,332 ) 21.82 Granted 499,221 12.23 Forfeited ( 85,352 ) 18.30 Outstanding, March 31, 2023 1,117,202 $ 16.26 (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 | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Equity | 9. Equity The following table summarizes the changes in our stockholders’ equity for the three months ended March 31, 2023 and 2022 (amounts in thousands, except share amounts): Shares Common Additional Retained Cumulative Accumulated Non- Total Three months ended March 31, 2023 Balance at December 31, 2022 90,814,021 $ 908 $ 1,622,913 $ 93,497 $ ( 475,983 ) $ 3,546 $ 166,101 $ 1,410,982 Stock based compensation — — 145 — — — 1,523 1,668 Dividends and distributions paid 0.265 per share) — — — — ( 24,068 ) — ( 3,395 ) ( 27,463 ) Grant of unvested restricted stock 6,686 — — — — — — — Redemption of common units for 10,199 — 140 — — — ( 140 ) — Issuance of common stock, net 2,559,000 26 52,206 — — — — 52,232 Contribution of property for — — — — — — 219 219 Unrealized loss on interest rate swaps, — — — — — ( 1,773 ) ( 240 ) ( 2,013 ) Net income — — — 3,891 — — 523 4,414 Allocation of non-controlling interest — — ( 2,937 ) — — — 2,937 — Balance at March 31, 2023 93,389,906 $ 934 $ 1,672,467 $ 97,388 $ ( 500,051 ) $ 1,773 $ 167,528 $ 1,440,039 Three months ended March 31, 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 — — 183 — — — 1,446 1,629 Dividends and distributions paid 0.265 per share) — — — — ( 23,893 ) — ( 3,141 ) ( 27,034 ) Grant of unvested restricted stock 7,353 — — — — — — — Redemption of common units for 189,751 2 2,698 — — — ( 2,700 ) — Issuance of common stock, net 434,925 5 9,394 — — — — 9,399 Unrealized gain on interest rate — — — — — 4,900 607 5,507 Net income — — — 7,341 — — 922 8,263 Allocation of non-controlling interest — — ( 2,189 ) — — — 2,189 — Balance at March 31, 2022 90,779,897 $ 908 $ 1,614,798 $ 69,364 $ ( 403,788 ) $ ( 172 ) $ 158,235 $ 1,439,345 A summary of dividends declared by our 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 2023 April 26, 2023 May 11, 2023 May 23, 2023 $ 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, we completed an underwritten public offering of 6,300,000 shares of common stock offered on a forward basis. In connection with the offering, we 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 our common stock. On December 28, 2021, we issued 3,991,000 shares of our 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. During the three months ended March 31, 2023, we issued 2,309,000 shares of common stock under the Forward Sale Agreements and received net cash proceeds of approximately $46.8 million. As of March 31, 2023, all shares of common stock under the Forward Sales Agreements had been issued and settled. ATM Programs We 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 we may issue and sell shares of our 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, we 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 our common stock on a forward basis. The following table sets forth certain information with respect to issuances under the 2019 ATM Program during the three months ended March 31, 2023 (amounts in thousands except share amounts): 2019 ATM Program For the three months ended Number of Shares Issued (1) Net Proceeds (1) March 31, 2023 250,000 $ 5,562 Total 250,000 $ 5,562 (1) Shares were all issued in settlement of forward sales transactions. Additionally, as of March 31, 2023 , we had entered into forward sales transactions under the 2019 ATM Program for the sale of an additional 1,700,000 shares of our common stock that have not yet been settled. Subject to our right to elect net share settlement, we expect 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 June 2023 to December 2023. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $ 21.61 per share, we expect to receive net proceeds of approximately $ 36.7 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. We accounted for the forward sale transactions as equity. No sales of shares of our common stock were made under the 2021 ATM Program during the three months ended March 31, 2023. We used the net proceeds received from such sales for general corporate purposes. As of March 31, 2023, we had approximately $ 300.0 million of gross sales of our common stock available under the 2021 ATM Program and $ 87.4 million of gross sales of common stock available under the 2019 ATM Program. Share Repurchase Program On April 28, 2022, our Board of Directors authorized a share repurchase program whereby we may repurchase up to 4,538,994 shares of our common stock, or approximately 5 % of our outstanding shares as of the authorization date. We are 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 our evaluation of market conditions and other factors. No repurchases of shares of our common stock were made under the share repurchase program during the three months ended March 31, 2023. Contribution of Property for Common Units On January 25, 2023, the Operating Partnership issued 12,391 common units and fully settled a contingent earn-out liability in connection with our acquisition of FBI / DEA - El Paso on May 26, 2020. The issuance of the 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 our basic and diluted earnings per share of common stock for the three months ended March 31, 2023 and 2022 (amounts in thousands, except per share amounts): For the three months ended March 31, 2023 2022 Numerator Net income $ 4,414 $ 8,263 Less: Non-controlling interest in Operating Partnership ( 523 ) ( 922 ) Net income available to Easterly Government Properties, Inc. 3,891 7,341 Less: Dividends on participating securities ( 148 ) ( 135 ) Net income available to common stockholders $ 3,743 $ 7,206 Denominator for basic EPS 91,099,357 90,150,518 Dilutive effect of share-based compensation awards 23,556 36,929 Dilutive effect of LTIP units (1) 206,227 304,861 Dilutive effect of shares issuable under forward sale agreements (2) — 79,263 Denominator for diluted EPS 91,329,140 90,571,571 Basic EPS $ 0.04 $ 0.08 Diluted EPS $ 0.04 $ 0.08 (1) During the three months ended March 31, 2023 and 2022 , there were 347,419 and 355,290 unvested performance-based LTIP units, respectively, that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. (2) During the three months ended March 31, 2023 and 2022 , there were 1,700,000 and 500,000 shares, respectively, of 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 | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 11. Leases Lessor We lease 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 18.9 years as of March 31, 2023), 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 our leases as of March 31, 2023 (amounts in thousands): Payments due by period Total 2023 (1) 2024 2025 2026 2027 Thereafter Fixed lease payments $ 1,965,728 159,517 200,215 189,222 182,419 170,914 1,063,441 (1) Represents the nine months ending December 31, 2023 . The table below sets forth our composition of lease revenue recognized between fixed and variable components (amounts in thousands): For the three months ended March 31, 2023 2022 Fixed $ 62,924 $ 65,447 Variable 5,224 4,992 Rental income 68,148 70,439 Lessee We lease corporate office space under operating lease arrangements in Washington, D.C. and San Diego, CA. 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. We have elected not to separate lease and non-lease components for our corporate office leases. As of March 31, 2023 , the unamortized balances associated with our right-of-use operating lease asset and operating lease liability were $ 3.4 million and $ 3.4 million, respectively. We used our incremental borrowing rate, which was arrived at utilizing prevailing market rates and the spread on our revolving credit facility, in order to determine the net present value of the minimum lease payments. The following table provides quantitative information for our commenced operating leases for the three months ended March 31, 2023 and 2022 (amounts in thousands): For the three months ended March 31, 2023 2022 Cash flows from operating lease costs $ 131 $ 101 In addition, the maturity of fixed lease payments under our commenced corporate office leases as of March 31, 2023 is summarized in the table below (amounts in thousands): Corporate office leases Payments due by period 2023 (1) 455 2024 768 2025 793 2026 661 2027 368 Thereafter 718 Total future minimum lease payments $ 3,763 Imputed interest ( 396 ) Total $ 3,367 (1) Represents the nine months ended December 31, 2023 . |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 (amounts in thousands): For the three months ended March 31, Tenant 2023 2022 Department of Veteran Affairs (“VA”) $ 933 $ 99 U.S. Joint Staff Command (“JSC”) 602 292 Federal Bureau of Investigation (“FBI”) 323 226 U.S. Coast Guard (“USCG”) 147 33 Department of Transportation (“DOT”) 120 — Customs and Border Protection (“CBP”) 79 120 Immigration and Customs Enforcement (“ICE”) 71 — Federal Emergency Management Agency (“FEMA”) 19 — Food and Drug Administration (“FDA”) 9 204 The Judiciary of the U.S. Government (“JUD”) 4 4 Internal Revenue Service (“IRS”) 3 33 U.S. Citizenship and Immigration Services (“USCIS”) — 110 National Park Services (“NPS”) — 99 Occupational Safety and Health Administration (“OSHA”) — 46 Patent and Trademark Office (“PTO”) — 2 Health Resources and Services Administration (“HRSA”) — 4 $ 2,310 $ 1,272 As of both March 31, 2023 and December 31, 2022 the balance in Accounts receivable related to tenant construction projects and the associated project management income was $ 6.8 million. The duration of the majority of tenant construction project reimbursement arrangements is 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 March 31, 2023 with a duration of greater than one year. During each of the three months ended March 31, 2023 and 2022 , we recognized $ 0.1 million 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 our performance obligation is satisfied. As of both March 31, 2023 and December 31, 2022 , the balance in Accounts receivable related to parking garage income was less than $ 0.1 million. During each of the three months ended March 31, 2023 and 2022, we recognized less than $ 0.1 million 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 both March 31, 2023 and December 31, 2022. There were no contract assets or liabilities as of March 31, 2023 or December 31, 2022 . |
Concentrations Risk
Concentrations Risk | 3 Months Ended |
Mar. 31, 2023 | |
Risks And Uncertainties [Abstract] | |
Concentrations Risk | 13. Concentrations Risk Concentrations of credit risk arise for us when multiple of our tenants 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 obligations owed to us. We regularly monitor our tenant base to assess potential concentrations of credit risk. As stated in Note 1 above, we lease commercial space to the U.S. Government or non-governmental tenants. At March 31, 2023 , the U.S. Government accounted for approximately 98.4 % of our total annualized lease income and non-governmental tenants accounted for the remaining approximately 1.6 %. Seventeen of our 86 wholly-owned and unconsolidated operating properties are located in California, accounting for approximately 14.9 % of our total leased square feet and approximately 19.9 % of our total annualized lease income as of March 31, 2023 . 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 | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 14. Related Parties We provide asset management services to properties owned by the JV. For the three months ended March 31, 2023 and 2022, we recognized Asset management income of $ 0.5 million and $ 0.2 million, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events For our consolidated financial statements as of March 31, 2023 , we evaluated subsequent events and noted no significant e |
Real Estate and Intangibles (Ta
Real Estate and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Real Estate and Intangibles | Real estate and intangibles consisted of the following as of March 31, 2023 (amounts in thousands): Total Real estate properties, net Land $ 213,592 Building and improvements 2,285,139 Acquired tenant improvements 81,666 Construction in progress 35,211 Accumulated depreciation ( 338,301 ) Total Real estate properties, net 2,277,307 Intangible assets, net In-place leases 271,066 Acquired leasing commissions 68,642 Above market leases 14,620 Payment in lieu of taxes 6,394 Accumulated amortization ( 209,387 ) Total Intangible assets, net 151,335 Intangible liabilities, net Below market leases ( 72,037 ) Accumulated amortization 56,645 Total Intangible liabilities, net ( 15,392 ) |
Summary of Scheduled Amortization Market Lease Intangibles | The following table summarizes the scheduled amortization of our acquired above- and below-market lease intangibles for each of the five succeeding years as of March 31, 2023 (amounts in thousands): Acquired Above-Market Lease Intangibles Acquired Below-Market Lease Intangibles 2023 (1) $ 882 $ ( 2,912 ) 2024 1,129 ( 2,938 ) 2025 1,097 ( 2,246 ) 2026 1,096 ( 2,008 ) 2027 1,096 ( 1,783 ) (1) Represents the nine months ended December 31, 2023. |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate Venture (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, Joint Venture Ownership Interest 2023 MedBase Venture 53.0 % $ 270,889 |
Summary of Financial Information for JV | The following is a summary of financial information for the JV (amounts in thousands): As of March 31, Balance sheet information: 2023 Real estate, net $ 428,254 Other assets, net (1) 90,287 Total assets $ 518,541 Total liabilities (2) $ 8,069 Total equity 510,472 Total liabilities and equity $ 518,541 Company’s share of equity $ 270,514 Basis differential (3) 375 Carrying value of the Company’s investment in the unconsolidated venture $ 270,889 (1) At March 31, 2023 , this amount included right-of-use assets - finance leases totaling approximately $ 4.9 million representing a ground lease at VA – Lubbock. (2) At March 31, 2023 , 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 our historical cost basis and the basis reflected at the joint venture level. For the three months ended March 31, Income statement information: 2023 2022 Total revenue $ 9,780 $ 4,698 Operating income 2,687 1,231 Net income 2,646 1,190 Company’s share of net income $ 1,402 $ 631 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Borrowings | At March 31, 2023, our consolidated borrowings consisted of the following (amounts in thousands): Principal Outstanding Interest Current Loan March 31, 2023 Rate (1) Maturity Revolving credit facility: Revolving credit facility (2) $ 49,500 S + 145 bps July 2025 (3) Total revolving credit facility 49,500 Term loan facilities: 2016 term loan facility 100,000 2.82 % (5) March 2024 2018 term loan facility (4) 150,000 3.98 % (6) July 2026 Total term loan facilities 250,000 Less: Total unamortized deferred financing fees ( 921 ) Total term loan facilities, net 249,079 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 ( 3,829 ) Total notes payable, net 696,171 Mortgage notes payable: VA – Golden 8,594 5.00 % (7) April 2024 USFS II – Albuquerque 12,992 4.46 % (7) July 2026 ICE – Charleston 13,086 4.21 % (7) January 2027 VA – Loma Linda 127,500 3.59 % (7) July 2027 CBP – Savannah 10,182 3.40 % (7) July 2033 USCIS – Kansas City 51,500 3.68 % (7) August 2024 Total mortgage notes payable 223,854 Less: Total unamortized deferred financing fees ( 1,282 ) Less: Total unamortized premium/discount 1,370 Total mortgage notes payable, net 223,942 Total debt $ 1,218,692 (1) At March 31, 2023, the one-month SOFR (“S”) was 4.80 %. 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 our consolidated leverage ratio, as set forth in the respective loan agreements. (2) Our revolving credit facility had available capacity of $ 400.4 million at March 31, 2023 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 2.82 % annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement. We transitioned the two interest rate swaps from LIBOR to SOFR effective November 29, 2022. (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 3.98 % annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. We transitioned the four interest rate swaps from LIBOR to SOFR effective December 23, 2022. (7) Effective interest rates are as follows: VA – Golden 5.03 %, USFS II – Albuquerque 3.92 %, ICE – Charleston 3.93 %, VA – Loma Linda 3.78 %, CBP – Savannah 4.12 %, USCIS – Kansas City 2.05 %. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 (amounts in thousands): Notional Amount Fixed Rate Floating Rate Index Effective Date Expiration Date Fair Value $ 100,000 1.37 % One-Month SOFR CME Term November 29, 2022 September 29, 2023 $ 1,712 $ 150,000 2.58 % One-Month SOFR CME Term December 23, 2022 June 19, 2023 $ 748 $ 100,000 4.01 % USD-SOFR with -5 Day Lookback June 23, 2023 March 23, 2025 $ ( 153 ) $ 100,000 3.70 % USD-SOFR with -5 Day Lookback September 29, 2023 June 29, 2025 $ ( 116 ) $ 100,000 4.18 % USD-SOFR with -5 Day Lookback June 23, 2023 December 23, 2024 $ ( 185 ) |
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 March 31, 2023 Interest rate swaps - Asset $ 2,460 Interest rate swaps - Liability ( 454 ) |
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 March 31, 2023 2022 Unrealized gain (loss) recognized in AOCI $ ( 506 ) $ 4,239 Gain (loss) reclassified from AOCI into interest expense 1,507 ( 1,268 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 our assets and liabilities measured at fair value on a recurring basis as of March 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall (amounts in thousands): As of March 31, 2023 Balance Sheet Line Item Level 1 Level 2 Level 3 Interest rate swaps - Asset $ — $ 2,460 $ — Interest rate swaps - Liability $ — $ ( 454 ) $ — |
Schedule of Fair Value Financial Assets And Liabilities Not measured At Fair Value | As of March 31, 2023, 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 March 31, 2023 Financial liabilities Carrying Amount (1) Fair Value (2) Revolving credit facility $ 49,500 $ 49,500 2016 term loan facility $ 100,000 $ 100,000 2018 term loan facility $ 150,000 $ 150,000 Notes payable $ 700,000 $ 598,124 Mortgages payable $ 223,854 $ 211,459 (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) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Restricted Shares | A summary of the status of our restricted shares as of March 31, 2023 and changes during the three months ended March 31, 2023 is presented below: Restricted Shares Restricted Shares Weighted Average Grant Date Outstanding, December 31, 2022 41,315 $ 19.94 Vested ( 2,622 ) 21.76 Granted 6,686 13.54 Forfeited — — Outstanding, March 31, 2023 45,379 $ 18.89 |
Long Term Incentive Plan | |
Summary of Restricted Shares | A summary of the status of our LTIP units as of March 31, 2023 and changes during the three months ended March 31, 2023 are presented below: LTIP Units (1) LTIP Units Weighted Average Grant Date Fair Value Per Share Outstanding, December 31, 2022 896,665 $ 19.90 Vested ( 193,332 ) 21.82 Granted 499,221 12.23 Forfeited ( 85,352 ) 18.30 Outstanding, March 31, 2023 1,117,202 $ 16.26 (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 three months ended March 31, 2023: Award Grant Performance Period Vest Date Units Granted Service January 3, 2023 — December 31, 2025 219,859 Operational January 3, 2023 December 31, 2025 1 127,291 Performance January 3, 2023 December 31, 2025 1 148,633 Service March 2, 2023 — March 2, 2026 3,438 2023 LTIP Grant 499,221 (1) Earned units will vest on the date of compensation committee determination of performance. |
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 three months ended March 31, 2023: Expected volatility 29.0 % Dividend yield 5.6 % Risk-free interest rate 4.2 % Expected life 3 years |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Summary of Changes In Stockholders' Equity | The following table summarizes the changes in our stockholders’ equity for the three months ended March 31, 2023 and 2022 (amounts in thousands, except share amounts): Shares Common Additional Retained Cumulative Accumulated Non- Total Three months ended March 31, 2023 Balance at December 31, 2022 90,814,021 $ 908 $ 1,622,913 $ 93,497 $ ( 475,983 ) $ 3,546 $ 166,101 $ 1,410,982 Stock based compensation — — 145 — — — 1,523 1,668 Dividends and distributions paid 0.265 per share) — — — — ( 24,068 ) — ( 3,395 ) ( 27,463 ) Grant of unvested restricted stock 6,686 — — — — — — — Redemption of common units for 10,199 — 140 — — — ( 140 ) — Issuance of common stock, net 2,559,000 26 52,206 — — — — 52,232 Contribution of property for — — — — — — 219 219 Unrealized loss on interest rate swaps, — — — — — ( 1,773 ) ( 240 ) ( 2,013 ) Net income — — — 3,891 — — 523 4,414 Allocation of non-controlling interest — — ( 2,937 ) — — — 2,937 — Balance at March 31, 2023 93,389,906 $ 934 $ 1,672,467 $ 97,388 $ ( 500,051 ) $ 1,773 $ 167,528 $ 1,440,039 Three months ended March 31, 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 — — 183 — — — 1,446 1,629 Dividends and distributions paid 0.265 per share) — — — — ( 23,893 ) — ( 3,141 ) ( 27,034 ) Grant of unvested restricted stock 7,353 — — — — — — — Redemption of common units for 189,751 2 2,698 — — — ( 2,700 ) — Issuance of common stock, net 434,925 5 9,394 — — — — 9,399 Unrealized gain on interest rate — — — — — 4,900 607 5,507 Net income — — — 7,341 — — 922 8,263 Allocation of non-controlling interest — — ( 2,189 ) — — — 2,189 — Balance at March 31, 2022 90,779,897 $ 908 $ 1,614,798 $ 69,364 $ ( 403,788 ) $ ( 172 ) $ 158,235 $ 1,439,345 |
Summary of Dividends Declared | A summary of dividends declared by our 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 2023 April 26, 2023 May 11, 2023 May 23, 2023 $ 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 three months ended March 31, 2023 (amounts in thousands except share amounts): 2019 ATM Program For the three months ended Number of Shares Issued (1) Net Proceeds (1) March 31, 2023 250,000 $ 5,562 Total 250,000 $ 5,562 (1) Shares were all issued in settlement of forward sales transactions. Additionally, as of March 31, 2023 , we had entered into forward sales transactions under the 2019 ATM Program for the sale of an additional 1,700,000 shares of our common stock that have not yet been settled. Subject to our right to elect net share settlement, we expect 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 June 2023 to December 2023. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $ 21.61 per share, we expect to receive net proceeds of approximately $ 36.7 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. We 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 our basic and diluted earnings per share of common stock for the three months ended March 31, 2023 and 2022 (amounts in thousands, except per share amounts): For the three months ended March 31, 2023 2022 Numerator Net income $ 4,414 $ 8,263 Less: Non-controlling interest in Operating Partnership ( 523 ) ( 922 ) Net income available to Easterly Government Properties, Inc. 3,891 7,341 Less: Dividends on participating securities ( 148 ) ( 135 ) Net income available to common stockholders $ 3,743 $ 7,206 Denominator for basic EPS 91,099,357 90,150,518 Dilutive effect of share-based compensation awards 23,556 36,929 Dilutive effect of LTIP units (1) 206,227 304,861 Dilutive effect of shares issuable under forward sale agreements (2) — 79,263 Denominator for diluted EPS 91,329,140 90,571,571 Basic EPS $ 0.04 $ 0.08 Diluted EPS $ 0.04 $ 0.08 (1) During the three months ended March 31, 2023 and 2022 , there were 347,419 and 355,290 unvested performance-based LTIP units, respectively, that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. (2) During the three months ended March 31, 2023 and 2022 , there were 1,700,000 and 500,000 shares, respectively, of 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) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Summary of Maturity of Fixed Lease Payments Under Company's Leases | The following table summarizes the maturity of fixed lease payments under our leases as of March 31, 2023 (amounts in thousands): Payments due by period Total 2023 (1) 2024 2025 2026 2027 Thereafter Fixed lease payments $ 1,965,728 159,517 200,215 189,222 182,419 170,914 1,063,441 (1) Represents the nine months ending December 31, 2023 . |
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 March 31, 2023 2022 Fixed $ 62,924 $ 65,447 Variable 5,224 4,992 Rental income 68,148 70,439 |
Schedule of Quantitative Information for Company's Operating Leases | The following table provides quantitative information for our commenced operating leases for the three months ended March 31, 2023 and 2022 (amounts in thousands): For the three months ended March 31, 2023 2022 Cash flows from operating lease costs $ 131 $ 101 |
Schedule of Maturity of Fixed Lease Payments Under Company's Corporate Office Leases | In addition, the maturity of fixed lease payments under our commenced corporate office leases as of March 31, 2023 is summarized in the table below (amounts in thousands): Corporate office leases Payments due by period 2023 (1) 455 2024 768 2025 793 2026 661 2027 368 Thereafter 718 Total future minimum lease payments $ 3,763 Imputed interest ( 396 ) Total $ 3,367 (1) Represents the nine months ended December 31, 2023 . |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 (amounts in thousands): For the three months ended March 31, Tenant 2023 2022 Department of Veteran Affairs (“VA”) $ 933 $ 99 U.S. Joint Staff Command (“JSC”) 602 292 Federal Bureau of Investigation (“FBI”) 323 226 U.S. Coast Guard (“USCG”) 147 33 Department of Transportation (“DOT”) 120 — Customs and Border Protection (“CBP”) 79 120 Immigration and Customs Enforcement (“ICE”) 71 — Federal Emergency Management Agency (“FEMA”) 19 — Food and Drug Administration (“FDA”) 9 204 The Judiciary of the U.S. Government (“JUD”) 4 4 Internal Revenue Service (“IRS”) 3 33 U.S. Citizenship and Immigration Services (“USCIS”) — 110 National Park Services (“NPS”) — 99 Occupational Safety and Health Administration (“OSHA”) — 46 Patent and Trademark Office (“PTO”) — 2 Health Resources and Services Administration (“HRSA”) — 4 $ 2,310 $ 1,272 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Detail) ft² in Millions | 3 Months Ended |
Mar. 31, 2023 ft² Property | |
Easterly Government Properties LP [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Outstanding common units of aggregate limited partnership interest owned percentage | 88.40% |
Joint Venture [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 8 |
Wholly Owned Operating Properties [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 78 |
Leased percentage of operating properties | 98% |
Aggregate area of land | ft² | 8.6 |
Wholly Owned Operating Properties [Member] | Government [Member] | |
Organization And Significant Accounting Policies [Line Items] | |
Number of properties | 85 |
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 | |
Mar. 31, 2023 USD ($) Property | Mar. 31, 2022 USD ($) | |
Real Estate Properties [Line Items] | ||
Acquisition-related expenses | $ | $ 461 | $ 362 |
Operating Properties Acquired [Member] | ||
Real Estate Properties [Line Items] | ||
Number of properties | Property | 0 |
Real Estate and Intangibles - S
Real Estate and Intangibles - Schedule of Real Estate and Intangibles (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Real estate properties, net | ||
Land | $ 213,592 | |
Building and improvements | 2,285,139 | |
Acquired tenant improvements | 81,666 | |
Construction in progress | 35,211 | |
Accumulated depreciation | (338,301) | |
Total Real estate properties, net | 2,277,307 | $ 2,285,308 |
Intangible assets, net | ||
Accumulated amortization | (209,387) | |
Total Intangible assets, net | 151,335 | |
Intangible liabilities, net | ||
Intangible Liabilities, Below market leases | (72,037) | |
Intangible Liabilities, Accumulated amortization | 56,645 | |
Total Intangible liabilities, net | (15,392) | |
Leases, Acquired-in-Place | ||
Intangible assets, net | ||
Above market leases | 271,066 | |
Acquired Leasing Commissions | ||
Intangible assets, net | ||
Above market leases | 68,642 | |
Above Market Leases [Member] | ||
Intangible assets, net | ||
Above market leases | 14,620 | |
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 | Mar. 31, 2023 USD ($) | |
Acquired Above-Market Lease Intangibles | ||
2023 | $ 882 | [1] |
2024 | 1,129 | |
2025 | 1,097 | |
2026 | 1,096 | |
2027 | 1,096 | |
Acquired Below-Market Lease Intangibles | ||
2023 | (2,912) | [1] |
2024 | (2,938) | |
2025 | (2,246) | |
2026 | (2,008) | |
2027 | $ (1,783) | |
[1] Represents the nine months ended December 31, 2023. |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate Venture - Summary of Investments in JV (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Investment in unconsolidated real estate venture | $ 270,889 | $ 271,644 |
JV [Member] | ||
Related Party Transaction [Line Items] | ||
Investment in unconsolidated real estate venture | $ 270,514 | |
MedBase Venture [Member] | JV [Member] | ||
Related Party Transaction [Line Items] | ||
Effective Ownership Interest | 53% | |
Investment in unconsolidated real estate venture | $ 270,889 |
Investments in Unconsolidated_4
Investments in Unconsolidated Real Estate Venture - Additional Information (Details) - JV [Member] $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) Property | Mar. 31, 2022 USD ($) | Oct. 13, 2021 ft² Property | |
Unconsolidated Real Estate Venture [Line Items] | |||
Number of properties | 0 | ||
Asset management service revenue | $ | $ 0.5 | $ 0.2 | |
VA Portfolio [Member] | |||
Unconsolidated Real Estate Venture [Line Items] | |||
Number of properties | 8 | 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 | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Balance sheet information: | ||||
Total assets | $ 2,819,286 | $ 2,829,385 | ||
Total liabilities (2) | 1,379,247 | 1,418,403 | ||
Total equity | 1,272,511 | 1,244,881 | ||
Total liabilities and equity | 2,819,286 | 2,829,385 | ||
Investment in unconsolidated real estate venture | 270,889 | $ 271,644 | ||
Income statement information: | ||||
Revenues | 71,220 | $ 72,302 | ||
Net income available to Easterly Government Properties, Inc. | 3,891 | 7,341 | ||
JV [Member] | ||||
Balance sheet information: | ||||
Real estate, net | 428,254 | |||
Other assets, net | [1] | 90,287 | ||
Total assets | 518,541 | |||
Total liabilities (2) | [2] | 8,069 | ||
Total equity | 510,472 | |||
Total liabilities and equity | 518,541 | |||
Investment in unconsolidated real estate venture | 270,514 | |||
Basis differential (3) | [3] | 375 | ||
Carrying value of the Company’s investment in the unconsolidated venture | 270,889 | |||
Income statement information: | ||||
Revenues | 9,780 | 4,698 | ||
Operating income | 2,687 | 1,231 | ||
Net income available to Easterly Government Properties, Inc. | 2,646 | 1,190 | ||
Company’s share of net income | $ 1,402 | $ 631 | ||
[1] At March 31, 2023 , this amount included right-of-use assets - finance leases totaling approximately $ 4.9 million representing a ground lease at VA – Lubbock. At March 31, 2023 , 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 our 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 | Mar. 31, 2023 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 ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||
Total revolving credit facility, Principal Outstanding | $ 49,500 | $ 65,500 | |
Total term loan facilities, net, Principal Outstanding | 249,079 | 248,972 | |
Total notes payable, net, Principal Outstanding | 696,171 | 696,052 | |
Total mortgage notes payable, net, Principal Outstanding | 223,942 | $ 240,847 | |
Total debt, Principal Outstanding | 1,218,692 | ||
Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | 700,000 | ||
Less: Total unamortized deferred financing fees | (921) | ||
Mortgage Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | 223,854 | ||
Less: Total unamortized deferred financing fees | (1,282) | ||
Less: Total unamortized premium/discount | 1,370 | ||
Mortgage Notes Payable [Member] | VA Golden [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 8,594 | ||
Loan, Interest Rate | [1],[2] | 5% | |
Loan, Current Maturity | 2024-04 | ||
Mortgage Notes Payable [Member] | USFS II Albuquerque [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 12,992 | ||
Loan, Interest Rate | [1],[2] | 4.46% | |
Loan, Current Maturity | 2026-07 | ||
Mortgage Notes Payable [Member] | ICE Charleston [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 13,086 | ||
Loan, Interest Rate | [1],[2] | 4.21% | |
Loan, Current Maturity | 2027-01 | ||
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] | CBP Savannah [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 10,182 | ||
Loan, Interest Rate | [1],[2] | 3.40% | |
Loan, Current Maturity | 2033-07 | ||
Mortgage Notes Payable [Member] | USCIS - Kansas City [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 51,500 | ||
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 | ||
Loan, Interest Rate | [1],[3] | 2.82% | |
Loan, Current Maturity | 2024-03 | ||
2018 Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | [4] | $ 150,000 | |
Loan, Interest Rate | [1],[4],[5] | 3.98% | |
Loan, Current Maturity | [4] | 2026-07 | |
Term Loan Facility [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 250,000 | ||
Less: Total unamortized deferred financing fees | (3,829) | ||
Total term loan facilities, net, Principal Outstanding | $ 249,079 | ||
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 | ||
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 | ||
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 | ||
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 | ||
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 | ||
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 | ||
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 | ||
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 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total revolving credit facility, Principal Outstanding | [6] | $ 49,500 | |
Loan, Interest Rate | [1],[6] | S + 145 bps | |
Loan, Current Maturity | [6],[7] | 2025-07 | |
[1] At March 31, 2023, the one-month SOFR (“S”) was 4.80 %. 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 our consolidated leverage ratio, as set forth in the respective loan agreements. Effective interest rates are as follows: VA – Golden 5.03 %, USFS II – Albuquerque 3.92 %, ICE – Charleston 3.93 %, VA – Loma Linda 3.78 %, CBP – Savannah 4.12 %, USCIS – Kansas City 2.05 %. 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 2.82 % annually, based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement. We transitioned the two interest rate swaps from LIBOR to SOFR effective November 29, 2022. 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 3.98 % annually, based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. We transitioned the four interest rate swaps from LIBOR to SOFR effective December 23, 2022. Our revolving credit facility had available capacity of $ 400.4 million at March 31, 2023 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) | 3 Months Ended | ||
Mar. 31, 2023 USD ($) Swap | Mar. 31, 2022 USD ($) | ||
Debt Instrument [Line Items] | |||
Mortgage note obligation | $ 16,744,000 | $ 1,300,000 | |
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 | 3.98% | ||
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 | 2.82% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Amount available under revolving credit facility | $ 400,400,000 | ||
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 | 223,854,000 | ||
Mortgage Notes Payable [Member] | CBP Savannah [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 10,182,000 | ||
Effective interest rate | 4.12% | ||
Mortgage Notes Payable [Member] | ICE Charleston [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 13,086,000 | ||
Effective interest rate | 3.93% | ||
Mortgage Notes Payable [Member] | USFS II Albuquerque [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 12,992,000 | ||
Effective interest rate | 3.92% | ||
Mortgage Notes Payable [Member] | VA Loma Linda [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 127,500,000 | ||
Effective interest rate | 3.78% | ||
Mortgage Notes Payable [Member] | VA Golden [Member] | |||
Debt Instrument [Line Items] | |||
Loan, Principal Outstanding | $ 8,594,000 | ||
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% | ||
SOFR [Member] | |||
Debt Instrument [Line Items] | |||
Loan, interest rate | 4.80% | ||
[1] Our 2018 term loan facility has undrawn capacity up to $ 50.0 million of which is available during a delayed draw period. |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Mar. 31, 2023 | Jan. 26, 2023 |
Debt Instrument [Line Items] | ||
Net carrying value of real estate collateralizing the mortgage | $ 354,300,000 | |
DEA Pleasanton [Member] | ||
Debt Instrument [Line Items] | ||
Cash | $ 15,700,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount available under revolving credit facility | 400,400,000 | |
Revolving Credit Facility [Member] | 2018 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount available under revolving credit facility | $ 50,000,000 |
Derivative and Hedging Activiti
Derivative and Hedging Activities - Schedule of Key Terms and Fair Values of Our Interest Rate Swap Derivatives (Detail) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Interest Swap Rate at 1.37% Fixed Rate [Member] | |
Derivative [Line Items] | |
Aggregate notional value of interest rate swaps | $ 100,000,000 |
Forward swaps interest rate | 1.37% |
Floating Rate Index | One-Month SOFR CME Term |
Forward swaps effective date | Nov. 29, 2022 |
Expiration Date | Sep. 29, 2023 |
Fair Value | $ 1,712,000 |
Interest Swap Rate at 2.58% Fixed Rate [Member] | |
Derivative [Line Items] | |
Aggregate notional value of interest rate swaps | $ 150,000,000 |
Forward swaps interest rate | 2.58% |
Floating Rate Index | One-Month SOFR CME Term |
Forward swaps effective date | Dec. 23, 2022 |
Expiration Date | Jun. 19, 2023 |
Fair Value | $ 748,000 |
Interest Swap Rate at 4.01% Fixed Rate [Member] | |
Derivative [Line Items] | |
Aggregate notional value of interest rate swaps | $ 100,000,000 |
Forward swaps interest rate | 4.01% |
Floating Rate Index | USD-SOFR with -5 Day Lookback |
Forward swaps effective date | Jun. 23, 2023 |
Expiration Date | Mar. 23, 2025 |
Fair Value | $ (153,000) |
Interest Swap Rate at 3.70% Fixed Rate [Member] | |
Derivative [Line Items] | |
Aggregate notional value of interest rate swaps | $ 100,000,000 |
Forward swaps interest rate | 3.70% |
Floating Rate Index | USD-SOFR with -5 Day Lookback |
Forward swaps effective date | Sep. 29, 2023 |
Expiration Date | Jun. 29, 2025 |
Fair Value | $ (116,000) |
Interest Swap Rate at 4.18% Fixed Rate [Member] | |
Derivative [Line Items] | |
Aggregate notional value of interest rate swaps | $ 100,000,000 |
Forward swaps interest rate | 4.18% |
Floating Rate Index | USD-SOFR with -5 Day Lookback |
Forward swaps effective date | Jun. 23, 2023 |
Expiration Date | Dec. 23, 2024 |
Fair Value | $ (185,000) |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Interest rate swaps - Asset | $ 2,460 | $ 4,020 |
Interest rate swaps - Liability | $ (454) |
Derivative and Hedging Activi_3
Derivative and Hedging Activities - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 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 | $ 3,500,000 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Unrealized gain (loss) recognized in AOCI | $ (506) | $ 4,239 |
Gain (loss) reclassified from AOCI into interest expense | $ 1,507 | $ (1,268) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swaps - Asset | $ 2,460 | $ 4,020 |
Interest rate swaps - Liability | (454) | |
Fair Value, Recurring | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate swaps - Asset | 2,460 | |
Interest rate swaps - Liability | $ (454) |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Financial Assets And Liabilities Not measured At Fair Value (Detail) $ in Thousands | Mar. 31, 2023 USD ($) | |
Revolving Credit Facility [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial liabilities, Carrying amount | $ 49,500 | [1] |
Financial liabilities, Fair value | 49,500 | [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 | 598,124 | [2] |
Mortgages Payable [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial liabilities, Carrying amount | 223,854 | [1] |
Financial liabilities, Fair value | $ 211,459 | [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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Compensation expense recognized | $ 0.1 | $ 0.2 |
Unamortized restricted stock expense | $ 0.3 | |
Weighted average period | 1 year 4 months 24 days | |
Restricted Stock | Maximum | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Fair value of restricted stock,vested | $ 0.1 | 1.1 |
Long Term Incentive Plan | ||
Stockholders Equity Note Disclosure [Line Items] | ||
Compensation expense recognized | 1.5 | 1.4 |
Fair value of restricted stock,vested | 3.8 | $ 5.3 |
Unamortized restricted stock expense | $ 10.8 | |
Weighted average period | 2 years 1 month 6 days |
Equity Incentive Plan - Summary
Equity Incentive Plan - Summary of Restricted Shares (Details) | 3 Months Ended | |
Mar. 31, 2023 $ / shares shares | ||
Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares/Units, Outstanding beginning balance | shares | 41,315 | |
Shares/Units, Vested | shares | (2,622) | |
Shares/Units, Granted | shares | 6,686 | |
Shares/Units, Outstanding ending balance | shares | 45,379 | |
Weighted average grant date fair value, Outstanding beginning balance | $ / shares | $ 19.94 | |
Weighted average grant date fair value, Vested | $ / shares | 21.76 | |
Weighted average grant date fair value, Granted | $ / shares | 13.54 | |
Weighted average grant date fair value, Outstanding ending balance | $ / shares | $ 18.89 | |
Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares/Units, Outstanding beginning balance | shares | 896,665 | [1] |
Shares/Units, Vested | shares | (193,332) | |
Shares/Units, Granted | shares | 499,221 | |
Shares/Units, Forfeited | shares | (85,352) | |
Shares/Units, Outstanding ending balance | shares | 1,117,202 | |
Weighted average grant date fair value, Outstanding beginning balance | $ / shares | $ 19.90 | |
Weighted average grant date fair value, Vested | $ / shares | 21.82 | |
Weighted average grant date fair value, Granted | $ / shares | 12.23 | |
Weighted average grant date fair value, Forfeited | $ / shares | 18.30 | |
Weighted average grant date fair value, Outstanding ending balance | $ / shares | $ 16.26 | |
[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) | 3 Months Ended |
Mar. 31, 2023 shares | |
Services | January 3, 2023 | |
Vest Date | Dec. 31, 2025 |
Units Granted | 219,859 |
Services | March 2, 2023 | |
Vest Date | Mar. 02, 2026 |
Units Granted | 3,438 |
Operational | January 3, 2023 | |
Performance Period End Date | Dec. 31, 2025 |
Units Granted | 127,291 |
Performance Shares | January 3, 2023 | |
Performance Period End Date | Dec. 31, 2025 |
Units Granted | 148,633 |
Long Term Incentive Plan | |
Units Granted | 499,221 |
Equity Incentive Plan - Summa_3
Equity Incentive Plan - Summary of Significant Assumptions Used to Value the Total Shareholder (Details) - Long Term Incentive Plan | 3 Months Ended |
Mar. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected volatility | 29% |
Dividend yield | 5.60% |
Risk-free interest rate | 4.20% |
Expected life | 3 years |
Equity - Summary of Changes In
Equity - Summary of Changes In Stockholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Shareholders Equity [Line Items] | ||
Balance | $ 1,410,982 | $ 1,441,581 |
Stock based compensation | 1,668 | 1,629 |
Dividends and distributions paid | (27,463) | (27,034) |
Issuance of common stock, net | 52,232 | 9,399 |
Contribution of property for common units | 219 | |
Unrealized gain (loss) on interest rate swaps, net | (2,013) | 5,507 |
Net income | 4,414 | 8,263 |
Balance | $ 1,440,039 | 1,439,345 |
Balance (in shares) | 93,389,906 | |
Common Stock Par Value [Member] | ||
Shareholders Equity [Line Items] | ||
Balance | $ 908 | $ 901 |
Balance (in shares) | 90,814,021 | 90,147,868 |
Grant of unvested restricted stock, net (in shares) | 6,686 | 7,353 |
Redemption of common units for shares of common stock | $ 2 | |
Redemption of common units for shares of common stock (in shares) | 10,199 | 189,751 |
Issuance of common stock, net | $ 26 | $ 5 |
Issuance of common stock (in share) | 2,559,000 | 434,925 |
Balance | $ 934 | $ 908 |
Balance (in shares) | 93,389,906 | 90,779,897 |
Additional Paid-in Capital [Member] | ||
Shareholders Equity [Line Items] | ||
Balance | $ 1,622,913 | $ 1,604,712 |
Stock based compensation | 145 | 183 |
Redemption of common units for shares of common stock | 140 | 2,698 |
Issuance of common stock, net | 52,206 | 9,394 |
Allocation of non-controlling interest in Operating Partnership | (2,937) | (2,189) |
Balance | 1,672,467 | 1,614,798 |
Retained Earnings [Member] | ||
Shareholders Equity [Line Items] | ||
Balance | 93,497 | 62,023 |
Net income | 3,891 | 7,341 |
Balance | 97,388 | 69,364 |
Cumulative Dividends [Member] | ||
Shareholders Equity [Line Items] | ||
Balance | (475,983) | (379,895) |
Dividends and distributions paid | (24,068) | (23,893) |
Balance | (500,051) | (403,788) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Shareholders Equity [Line Items] | ||
Balance | 3,546 | (5,072) |
Unrealized gain (loss) on interest rate swaps, net | (1,773) | 4,900 |
Balance | 1,773 | (172) |
Non-controlling Interest in Operating Partnership [Member] | ||
Shareholders Equity [Line Items] | ||
Balance | 166,101 | 158,912 |
Stock based compensation | 1,523 | 1,446 |
Dividends and distributions paid | (3,395) | (3,141) |
Redemption of common units for shares of common stock | (140) | (2,700) |
Contribution of property for common units | 219 | |
Unrealized gain (loss) on interest rate swaps, net | (240) | 607 |
Net income | 523 | 922 |
Allocation of non-controlling interest in Operating Partnership | 2,937 | 2,189 |
Balance | $ 167,528 | $ 158,235 |
Equity - Summary of Changes I_2
Equity - Summary of Changes In Stockholders' Equity (Parenthetical) (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity [Abstract] | ||
Dividends and distributions paid, per share | $ 0.265 | $ 0.265 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared (Detail) - $ / shares | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Dividends Payable [Line Items] | |||
Dividend | $ 0.265 | $ 0.265 | |
Q1 2023 [Member] | |||
Dividends Payable [Line Items] | |||
Declaration Date | Apr. 26, 2023 | ||
Record Date | May 11, 2023 | ||
Payment Date | May 23, 2023 | ||
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) | 3 Months Ended |
Mar. 31, 2023 | |
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 ($) $ in Millions | Jan. 25, 2023 | Dec. 28, 2021 | Aug. 11, 2021 | Jun. 22, 2021 | Dec. 20, 2019 | Mar. 31, 2023 | Dec. 31, 2022 | Apr. 28, 2022 |
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Common Stock, shares issued | 93,389,906 | 90,814,021 | ||||||
Underwriters option to purchase additional shares | 6,300,000 | |||||||
Contribution of property for common units, shares issued | 12,391 | |||||||
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 | |||||||
Underwritten Public Offering [Member] | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Common Stock, shares issued | 3,991,000 | 6,300,000 | 2,309,000 | |||||
Cash | ||||||||
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Subsidiary Sale Of Stock [Line Items] | |||
Net Proceeds | $ 52,414 | $ 9,504 | |
2019 ATM Program [Member] | |||
Subsidiary Sale Of Stock [Line Items] | |||
Number of Shares Issued | [1] | 250,000 | |
Net Proceeds | [1] | $ 5,562 | |
[1] Shares were all issued in settlement of forward sales transactions. Additionally, as of March 31, 2023 , we had entered into forward sales transactions under the 2019 ATM Program for the sale of an additional 1,700,000 shares of our common stock that have not yet been settled. Subject to our right to elect net share settlement, we expect 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 June 2023 to December 2023. Assuming the forward sales transactions are physically settled in full utilizing a net weighted average initial forward sales price of $ 21.61 per share, we expect to receive net proceeds of approximately $ 36.7 million, after deducting offering costs, subject to adjustments in accordance with the applicable forward sale transaction. We accounted for the forward sale transactions as equity. |
Equity - Schedule of Informat_2
Equity - Schedule of Information with Respect to ATM Program (Parenthetical) (Detail) - Underwritten Public Offering [Member] - 2019 ATM Program [Member] | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Subsidiary Sale Of Stock [Line Items] | |
Number of unsettled common stock shares sold | shares | 1,700,000 |
Net proceeds from unsettled common stock shares sold | $ | $ 36,700 |
Weighted average price per share | $ / shares | $ 21.61 |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Earnings Per Share Basic And Diluted [Line Items] | |||
Net income | $ 4,414 | $ 8,263 | |
Less: Non-controlling interest in Operating Partnership | (523) | (922) | |
Net income available to Easterly Government Properties, Inc. | 3,891 | 7,341 | |
Less: Dividends on participating securities | (148) | (135) | |
Net income available to common stockholders | $ 3,743 | $ 7,206 | |
Denominator for basic EPS | 91,099,357 | 90,150,518 | |
Denominator for diluted EPS | 91,329,140 | 90,571,571 | |
Basic EPS | $ 0.04 | $ 0.08 | |
Diluted EPS | $ 0.04 | $ 0.08 | |
Stock Compensation Plan [Member] | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Dilutive effect | 23,556 | 36,929 | |
Long Term Incentive Plan | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Dilutive effect | [1] | 206,227 | 304,861 |
Forward Sale Agreements [Member] | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Dilutive effect | [2] | 79,263 | |
[1] During the three months ended March 31, 2023 and 2022 , there were 347,419 and 355,290 unvested performance-based LTIP units, respectively, that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period. During the three months ended March 31, 2023 and 2022 , there were 1,700,000 and 500,000 shares, respectively, of 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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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 | 347,419 | 355,290 |
Underlying Unsettled Forward Sales Transactions [Member] | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 1,700,000 | 500,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Lessee Lease Description [Line Items] | |
Average age of property | 18 years 10 months 24 days |
Right-of-use asset | $ 3.4 |
Operating lease liability | $ 3.4 |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Fixed Lease Payments Under Company's Leases (Detail) $ in Thousands | Mar. 31, 2023 USD ($) | |
Leases [Abstract] | ||
Fixed lease payments, Total | $ 1,965,728 | |
Fixed lease payments, 2023 | 159,517 | [1] |
Fixed lease payments, 2024 | 200,215 | |
Fixed lease payments, 2025 | 189,222 | |
Fixed lease payments, 2026 | 182,419 | |
Fixed lease payments, 2027 | 170,914 | |
Fixed lease payments, Thereafter | $ 1,063,441 | |
[1] Represents the nine months ending December 31, 2023 . |
Leases - Summary of Composition
Leases - Summary of Composition of Lease Revenue Recognized Between Fixed and Variable Components (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Leased Assets [Line Items] | ||
Rental income | $ 68,148 | $ 70,439 |
Fixed | ||
Operating Leased Assets [Line Items] | ||
Rental income | 62,924 | 65,447 |
Variable | ||
Operating Leased Assets [Line Items] | ||
Rental income | $ 5,224 | $ 4,992 |
Leases - Schedule of Quantitati
Leases - Schedule of Quantitative Information for Company's Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Cash flows from operating lease costs | $ 131 | $ 101 |
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 | Mar. 31, 2023 USD ($) | |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | ||
2023 | $ 455 | [1] |
2024 | 768 | |
2025 | 793 | |
2026 | 661 | |
2027 | 368 | |
Thereafter | 718 | |
Total future minimum lease payments | 3,763 | |
Imputed interest | (396) | |
Total | $ 3,367 | |
[1] Represents the nine months ended December 31, 2023 . |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | $ 2,310 | $ 1,272 |
Department of Veteran Affairs ("VA") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 933 | 99 |
U.S Joint Staff Command ("JSC") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 602 | 292 |
Federal Bureau of Investigation ("FBI") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 323 | 226 |
U.S. Coast Guard ("USCG") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 147 | 33 |
Department of Transportation ("DOT") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 120 | |
Customs and Border Protection ("CBP") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 79 | 120 |
Immigration and Customs Enforcement ("ICE") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 71 | |
Federal Emergency Management Agency ("FEMA") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 19 | |
Food And Drug Administration ("FDA") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 9 | 204 |
The Judiciary of the U.S. Government ("JUD") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 4 | 4 |
Internal Revenue Service ("IRS") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | $ 3 | 33 |
U.S. Citizenship and Immigration Services ("USCIS") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 110 | |
National Park Services ("NPS") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 99 | |
Occupational Safety and Health Administration ("OSHA") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 46 | |
Patent and Trademark Office ("PTO") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | 2 | |
Health Resources and Services Administration ("HRSA") [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Tenant Construction Project Income | $ 4 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | |||
Tenant accounts receivable | $ 58,334,000 | $ 58,835,000 | |
ASU 2014-09 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable related to tenant construction projects | 6,800,000 | 6,800,000 | |
Contract assets | 0 | 0 | |
Contract liabilities | 0 | 0 | |
ASU 2014-09 [Member] | COVID-19 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenues | 100,000 | $ 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] | |||
Total revenues | 100,000 | $ 100,000 | |
Tenant accounts receivable | $ 100,000 | $ 100,000 |
Concentrations Risk - Additiona
Concentrations Risk - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 Property | |
Wholly Owned Properties [Member] | |
Concentration Risk [Line Items] | |
Number of properties | 86 |
CALIFORNIA | |
Concentration Risk [Line Items] | |
Number of properties | 17 |
Lease Income [Member] | Credit Concentration Risk [Member] | CALIFORNIA | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 19.90% |
Rentable Square Feet [Member] | Credit Concentration Risk [Member] | CALIFORNIA | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 14.90% |
U.S. Government [Member] | Lease Income [Member] | Credit Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 98.40% |
Non Governmental Tenants [Member] | Lease Income [Member] | Credit Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Percentage of concentrations risk | 1.60% |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Asset management income | $ 517 | $ 248 |
JV [Member] | ||
Related Party Transaction [Line Items] | ||
Asset management income | $ 500 | $ 200 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Subsequent Event [Line Items] | ||
Mortgage note obligation | $ 16,744 | $ 1,300 |