Easterly Government Properties (DEA) 8-K Reports Second Quarter 2017 Results

Exhibit 99.2

Disclaimers

Forward-looking Statement

We make statements in this Supplemental Information Package that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this Supplemental Information Package for purposes of complying with those safe harbor provisions.  These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made.  Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues; risks associated with ownership and development of real estate; decreased rental rates or increased vacancy rates; loss of key personnel; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or to yield anticipated results; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on March 2, 2017 and the factors included under the heading “Risk Factors” in our other public filings.  In addition, our qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.  We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Ratings

Ratings are not recommendations to buy, sell or hold the Company’s securities.

The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the quarter ended June 30, 2017 that will be released on Form 10-Q to be filed on or about August 8, 2017.

2

Supplemental Definitions

This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this Supplemental Information Package and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. Additional detail can be found in the Company’s most recent quarterly report on Form 10-Q and the Company’s most recent annual report on Form 10-K, as well as other documents filed with or furnished to the SEC from time to time.

Annualized lease income is defined as the annualized contractual base rent for the last month in a specified period, plus the annualized straight-line rent adjustments for the last month in such period and the annualized expense reimbursements earned by us for the last month in such period.

Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current NAREIT definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items and nonrecurring expenditures. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.

EBITDA is calculated as the sum of net income (loss) before interest expense, income taxes, depreciation and amortization. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.

Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP. Fully diluted basis does not include outstanding LTIP units in the Company’s operating partnership that are subject to performance criteria that have not yet been met.

Funds From Operations (FFO) is defined by NAREIT as net income (loss), calculated in accordance with GAAP, excluding gains or losses from sales of property and impairment losses on depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.

Funds From Operations, as Adjusted (FFO, as Adjusted) adjusts FFO to present an alternative measure of our operating performance, which, when applicable, excludes the impact of acquisition costs, straight-line rent, above-/below-market leases, non-cash interest expense and non-cash compensation. By excluding income and expense items such as straight-line rent, above-/below-market leases, non-cash interest expense and non-cash compensation from FFO, as Adjusted, the Company believes it provides useful information as these items have no cash impact. In addition, by excluding acquisition related costs the Company believes FFO, as Adjusted provides useful information that is comparable across periods and more accurately reflects the operating performance of the Company’s properties.

3

Supplemental Definitions

Net Operating Income (NOI) is calculated as total property revenues (rental income, tenant reimbursements and other income) less property operating expenses and real estate taxes from the properties owned by the Company. Cash NOI excludes from NOI straight-line rent and amortization of above-/below market leases. NOI presented by the Company may not be comparable to NOI reported by other REITs that define NOI differently. The Company believes that NOI provides investors with a useful measure of the operating performance of our properties. NOI should not be considered an alternative to net income as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions.

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Table of Contents

Overview
Corporate Information and Analyst Coverage	6
Executive Summary	7
CorporateFinancials
Balance Sheets	8
Income Statements	9
Net Operating Income	10
EBITDA, FFO and CAD	11
Debt
Debt Schedules	12
Debt Maturities	13
Properties
Operating Property Overview	14
Tenants	16
Lease Expirations	17

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Corporate Information and Analyst Coverage

Corporate Information
Corporate Headquarters	Stock Exchange Listing	Information Requests	Investor Relations
2101 L Street NW	New York Stock Exchange	Please contact ir@easterlyreit.com	LindsayWinterhalter,
Suite 650		or 202-596-3947 to request an	VP, InvestorRelations
Washington, DC 20037	Ticker	Investor Relations package	&Operations
202-595-9500	DEA

ExecutiveTeam		BoardofDirectors
William TrimbleIII,CEO	DarrellCrate,Chairman	William Binnie	MichaelIbe
MichaelIbe,Vice-ChairmanandEVP	Meghan Baivier,CFO & COO	Darrell Crate	James Mead
AlisonBernard,CAO	RonaldKendall,EVP	CynthiaFisher	William TrimbleIII
		Emil Henry Jr.

Equity Research Coverage
Citigroup	RaymondJames& Associates	RBC CapitalMarkets
MichaelBilerman/EmmanuelKorchman	BillCrow /Paul Puryear	MichaelCarroll
212-816-1383/212-816-1382	727-567-2594/727-567-2253	440-715-2649
Jefferies	SunTrustRobinsonHumphrey
JonathanPetersen	MichaelR.Lewis
212-284-1705	212-319-5659

Any opinions, estimates, forecasts or predictions regarding Easterly Government Properties, Inc.’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Easterly Government Properties, Inc. or its management. Easterly Government Properties, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.

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Executive Summary (Unaudited, in thousands except share and per share amounts)

Price of Common Shares	Three months ended June 30, 2017			Earnings	Three months ended June 30, 2017		Three months ended June 30, 2016
High closing price during period	$	21.61		Net income available to Easterly Government Properties, Inc.	$	827	$	699
Low closing price during period	$	19.47		Net income available to Easterly Government Properties, Inc.
End of period closing price	$	20.95		per share:
				Basic	$	0.02	$	0.02
Outstanding Classes of Stock and				Diluted	$	0.02	$	0.02
Partnership Units - Fully Diluted Basis	At June 30, 2017
Common shares		38,287,189		Net income	$	1,013	$	1,037
Unvested restricted shares		17,912		Net income, per share - fully diluted basis	$	0.02	$	0.03
Common partnership units outstanding		7,746,850
Total - fully diluted basis		46,051,951		Funds From Operations ("FFO")	$	14,475	$	12,111
				FFO, per share - fully diluted basis	$	0.31	$	0.30
Market Capitalization	At June 30, 2017			Funds From Operations, as Adjusted	$	13,459	$	11,708
Total equity market capitalization - fully diluted basis	$	964,788		FFO, as Adjusted, per share - fully diluted basis	$	0.29	$	0.29
Consolidated debt(1)		549,409
Cash and cash equivalents		(6,105	)	Cash Available for Distribution	$	11,357	$	10,399
Total enterprise value	$	1,508,092
				Liquidity			At June 30, 2017
				Cash and cash equivalents			$	6,105
Ratios	At June 30, 2017
Net debt to total enterprise value		36.0	%	Unsecured revolving credit facility
Net debt to annualized quarterly EBITDA		7.5	x	Total current facility size (2)			$	400,000
Cash interest coverage ratio		5.2	x	Less: outstanding balance				(68,000	)
Cash fixed charge coverage ratio		4.3	x	Available under unsecured revolving credit facility			$	332,000
Pro forma net debt to total enterprise value(4)		30.2	%
Pro forma net debt to annualized quarterly EBITDA(3)		5.6	x	Pro forma proceeds from physical settlement of forward sales agreements(4)			$	87,711

⁽¹⁾Excludes unamortized premiums / discounts and deferred financing fees.

⁽²⁾Credit facility has an accordion feature that provides additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250 million, for a total facility size of not more than $650  million.

⁽³⁾Assumes full physical settlement, on June 30, 2017, of the forward sales agreements entered into on March 27, 2017 for 4.95 million shares at a net price of $17.74 and a full quarter of operations from VA - Loma Linda which we acquired on June 1, 2017.

⁽⁴⁾Assumes full physical settlement, on June 30, 2017 of the forward sales agreements entered into on March 27, 2017 for 4.95 million shares at a net price of $17.74.

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Balance Sheets (In thousands, except share amounts)

	June 30, 2017
	(unaudited)			December 31, 2016
Assets
Real estate properties, net	$	1,117,039		$	901,066
Cash and cash equivalents		6,105			4,845
Restricted cash		3,559			1,646
Deposits on acquisitions		1,000			1,750
Rents receivable		8,284			8,544
Accounts receivable		6,746			5,823
Deferred financing, net		1,437			2,787
Intangible assets, net		127,127			113,795
Interest rate swap		3,199			3,785
Prepaid expenses and other assets		3,120			1,422
Total assets	$	1,277,616		$	1,045,463
Liabilities
Revolving credit facility		68,000			212,167
Term loan facility, net		99,132			-
Notes payable, net		173,646			-
Mortgage notes payable, net		204,782			80,806
Intangible liabilities, net		38,175			41,840
Accounts payable and accrued liabilities		14,473			13,784
Total liabilities		598,208			348,597
Equity
Common stock, par value $0.01, 200,000,000 shares authorized,
38,305,101 and 36,874,810 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively.		383			369
Additional paid-in capital		619,668			596,971
Retained (deficit)		3,632			1,721
Cumulative dividends		(61,226	)		(42,794	)
Accumulated other comprehensive income		2,661			3,038
Total stockholders' equity		565,118			559,305
Non-controlling interest in Operating Partnership		114,290			137,561
Totalequity		679,408			696,866
Total liabilities and equity	$	1,277,616		$	1,045,463

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Income Statements (Unaudited, in thousands, except share and per share amounts)

	Three Months Ended						Six Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Revenues
Rental income	$	27,501		$	22,291		$	53,521		$	44,027
Tenant reimbursements		2,974			2,476			6,602			4,631
Other income		128			154			367			234
Total revenues		30,603			24,921			60,490			48,892
Operating expenses
Property operating		5,837			5,085			12,186			9,418
Real estate taxes		2,979			2,332			5,714			4,700
Depreciation and amortization		13,462			11,074			26,522			21,937
Acquisition costs		456			346			988			679
Corporate general and administrative		3,142			3,052			6,586			6,088
Total expenses		25,876			21,889			51,996			42,822
Operating income		4,727			3,032			8,494			6,070
Other expenses
Interest expense, net		(3,714	)		(1,995	)		(6,131	)		(3,924	)
Net income		1,013			1,037			2,363			2,146
Non-controlling interest in Operating Partnership		(186	)		(338	)		(452	)		(772	)
Net income available to Easterly Government
Properties, Inc.	$	827		$	699		$	1,911		$	1,374
Net income available to Easterly Government
Properties, Inc. per share:
Basic	$	0.02		$	0.02		$	0.05		$	0.05
Diluted	$	0.02		$	0.02		$	0.05		$	0.05
Weighted-average common shares outstanding:
Basic		37,408,603			27,484,075			37,151,527			25,812,893
Diluted		39,845,314			29,267,258			39,534,993			27,538,423
Net income, per share - fully diluted basis	$	0.02		$	0.03		$	0.05		$	0.05
Weighted average common shares outstanding -
fully diluted basis		45,959,288			40,964,377			45,953,530			40,338,097

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Net Operating Income (Unaudited, in thousands)

	Three Months Ended						Six Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Revenue
Rental income	$	27,501		$	22,291		$	53,521		$	44,027
Tenant reimbursements		2,974			2,476			6,602			4,631
Other income		128			154			367			234
Total revenues		30,603			24,921			60,490			48,892
Operating Expenses
Property operating		5,837			5,085			12,186			9,418
Real estate taxes		2,979			2,332			5,714			4,700
Total expenses		8,816			7,417			17,900			14,118
Net Operating Income	$	21,787		$	17,504		$	42,590		$	34,774
Adjustments to Net Operating Income:
Straight-line rent		(355	)		(19	)		(495	)		(40	)
Above-/below-market leases		(2,106	)		(1,711	)		(4,218	)		(3,409	)
Cash Net Operating Income	$	19,326		$	15,774		$	37,877		$	31,325

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EBITDA, FFO and CAD (Unaudited, in thousands, except share and per share amounts)

	Three Months Ended						Six Months Ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Net income	$	1,013		$	1,037		$	2,363		$	2,146
Depreciation and amortization		13,462			11,074			26,522			21,937
Interest expense		3,714			1,995			6,131			3,924
EBITDA	$	18,189		$	14,106		$	35,016		$	28,007
Net income	$	1,013		$	1,037		$	2,363		$	2,146
Depreciation and amortization		13,462			11,074			26,522			21,937
Funds From Operations (FFO)	$	14,475		$	12,111		$	28,885		$	24,083
Adjustments to FFO:
Acquisition costs		456			346			988			679
Straight-line rent		(350	)		45			(493	)		33
Above-/below-market leases		(2,106	)		(1,711	)		(4,218	)		(3,409	)
Non-cash interest expense		244			194			474			389
Non-cash compensation		740			723			1,467			1,422
Funds From Operations, as Adjusted	$	13,459		$	11,708		$	27,103		$	23,197
FFO, per share - fully diluted basis	$	0.31		$	0.30		$	0.63		$	0.60
FFO, as Adjusted, per share -  fully diluted basis	$	0.29		$	0.29		$	0.59		$	0.58
Funds From Operations, as Adjusted	$	13,459		$	11,708		$	27,103		$	23,197
Acquisition costs		(456	)		(346	)		(988	)		(679	)
Principal amortization		(741	)		(711	)		(1,473	)		(1,414	)
Maintenance capital expenditures		(766	)		(252	)		(951	)		(318	)
Contractual tenant improvements		(139	)		-			(152	)		(9	)
Cash Available for Distribution (CAD)	$	11,357		$	10,399		$	23,539		$	20,777
Weighted average common shares outstanding -
fully diluted basis		45,959,288			40,964,377			45,953,530			40,338,097

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Debt Schedules (Unaudited, in thousands)

Debt Instrument	Maturity Date			Stated Rate(1)		June 30, 2017 Balance(2)		June 30, 2017 Percent of Total Indebtedness
Unsecured debt
Unsecured revolving credit facility(3)	11-Feb-19(4)			LIBOR + 140bps		$	68,000		12.4%
Unsecured term loan facility	29-Sep-23			3.12%(5)			100,000		18.1%
Notes payable - series A	25-May-27				4.05%		95,000		17.3%
Notes payable - series B	25-May-29				4.15%		50,000		9.1%
Notes payable - series C	25-May-32				4.30%		30,000		5.5%
	7.9 years				3.53%	$	343,000		62.4%
Total unsecured debt	(wtd-avg maturity)			(wtd-avg rate)
Secured mortgage debt
VA - Loma Linda	6-Jul-27				3.59%	$	127,500		23.2%
ICE - Charleston	15-Jan-27				4.21%		20,369		3.7%
USFS II - Albuquerque	14-Jul-26				4.46%		17,044		3.1%
DEA - Pleasanton	18-Oct-23			LIBOR + 150bps			15,700		2.9%
CBP - Savannah	10-Jul-33				3.40%		14,562		2.7%
MEPCOM - Jacksonville	14-Oct-25				4.41%		11,234		2.0%
	9.9 years				3.68%	$	206,409		37.6%
Total secured mortgage debt	(wtd-avg maturity)			(wtd-avg rate)
Debt Statistics	June 30, 2017
Variable rate debt - unhedged	$	83,700
Fixed rate debt		465,709
Total debt(2)	$	549,409
% Variable rate debt - unhedged		15.2	%
% Fixed rate debt		84.8	%
Weighted average maturity	8.7 years
Weighted average interest rate		3.6	%

⁽¹⁾Average stated rates represent the weighted average interest rate at June 30, 2017.

⁽²⁾Excludes unamortized premiums / discounts and deferred financing fees.

⁽³⁾Credit facility has available capacity of $332,000 as of June 30, 2017.

⁽⁴⁾Credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

⁽⁵⁾Entered into two interest rate swaps with an effective date of March 29, 2017 with an aggregate notional value of $100 million to effectively fix the interest rate at 3.12% annually based on the Company’s current leverage ratio.

Debt Maturities (Unaudited, in thousands)

		Secured Debt						Unsecured Debt								Weighted Average
Year		Scheduled Amortization			Scheduled Maturities			Scheduled Maturities			Total		Percentage of Debt Maturing			Interest Rate of Scheduled Maturities
2017			1,503		-			-				1,503		0.3	%	-
2018			3,100		-			-				3,100		0.6	%	-
2019			3,229		-				68,000			71,229		13.0	%		2.61	%
2020			3,395		-			-				3,395		0.6	%	-
2021			4,054		-			-				4,054		0.7	%	-
2022			5,109		-			-				5,109		0.9	%	-
2023			5,388			15,700			100,000			121,088		22.0	%		3.04	%
2024			5,679		-			-				5,679		1.0	%	-
2025			5,633			1,917		-				7,550		1.4	%		4.41	%
2026			3,686			6,368		-				10,054		1.8	%		4.46	%
2027			1,093			134,640			95,000			230,733		42.0	%		3.82	%
2028			983		-			-				983		0.2	%	-
2029			1,016		-				50,000			51,016		9.3	%		4.15	%
2030			1,049		-			-				1,049		0.2	%	-
2031			1,083		-			-				1,083		0.2	%	-
2032			1,116		-				30,000			31,116		5.7	%		4.30	%
2033			668		-			-				668		0.1	%	-
Total	$		47,784	$		158,625	$		343,000	$		549,409		100.0	%

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Operating Property Overview (As of June 30, 2017, unaudited)

Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Rentable Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot
U.S.Government Leased Properties
VA - Loma Linda	Loma Linda, CA	Outpatient Clinic	2036	2016		327,614	$	16,039,323		13.3	%	$	48.96
IRS - Fresno	Fresno, CA	Office	2018	2003		180,481		7,486,857		6.2	%		41.48
PTO - Arlington	Arlington, VA	Office	2019 / 2020	2009		189,871		6,557,257		5.3	%		34.54
FBI - San Antonio	San Antonio, TX	Office	2021	2007		148,584		5,040,098		4.2	%		33.92
FBI - Omaha	Omaha, NE	Office	2024	2009		112,196		4,536,468		3.8	%		40.43
EPA - Kansas City	Kansas City, KS	Laboratory	2023	2003		71,979		3,852,671		3.2	%		53.52
ICE - Charleston	North Charleston, SC	Office	2021 / 2027	1994 / 2012		86,733		3,685,906		3.0	%		42.50
DOT - Lakewood	Lakewood, CO	Office	2024	2004		122,225		3,487,403		2.9	%		28.53
USCIS - Lincoln	Lincoln, NE	Office	2020	2005		137,671		3,256,811		2.7	%		23.66
AOC - El Centro	El Centro, CA	Courthouse/Office	2019	2004		46,813		3,041,909		2.5	%		64.98
FBI - Birmingham	Birmingham, AL	Office	2020	2005		96,278		3,022,473		2.5	%		31.39
OSHA - Sandy	Sandy, UT	Laboratory	2024	2003		75,000		2,988,675		2.5	%		39.85
USFS II - Albuquerque	Albuquerque, NM	Office	2026	2011		98,720		2,795,974		2.3	%		28.32
ICE - Albuquerque	Albuquerque, NM	Office	2027	2011		71,100		2,794,202		2.3	%		39.30
DEA - Vista	Vista, CA	Laboratory	2020	2002		54,119		2,761,077		2.3	%		51.02
DEA - Pleasanton	Pleasanton, CA	Laboratory	2035	2015		42,480		2,741,304		2.3	%		64.53
USFS I - Albuquerque	Albuquerque, NM	Office	2021	2006		92,455		2,727,586		2.3	%		29.50
FBI - Richmond	Richmond, VA	Office	2021	2001		96,607		2,722,195		2.3	%		28.18
AOC - Del Rio	Del Rio, TX	Courthouse/Office	2024	1992 / 2004		89,880		2,662,523		2.2	%		29.62
DEA - Dallas Lab	Dallas, TX	Laboratory	2021	2001		49,723		2,395,557		2.0	%		48.18
MEPCOM - Jacksonville	Jacksonville, FL	Office	2025	2010		30,000		2,179,704		1.8	%		72.66
FBI - Little Rock	Little Rock, AR	Office	2021	2001		101,977		2,145,210		1.8	%		21.04
CBP - Savannah	Savannah, GA	Laboratory	2033	2013		35,000		2,114,245		1.7	%		60.41
FBI - Albany	Albany, NY	Office	2018	1998		98,184		2,093,697		1.7	%		21.32
DEA - Santa Ana	Santa Ana, CA	Office	2024	2004		39,905		2,073,724		1.7	%		51.97
DOE - Lakewood	Lakewood, CO	Office	2029	1999		115,650		2,061,963		1.7	%		17.83
DEA - Dallas	Dallas, TX	Office	2021	2001		71,827		1,808,587		1.5	%		25.18
NPS - Omaha	Omaha, NE	Office	2024	2004		62,772		1,750,216		1.4	%		27.88
CBP - Chula Vista	Chula Vista, CA	Office	2018	1998		59,397		1,708,702		1.4	%		28.77
DEA - North Highlands	Sacramento, CA	Office	2017	2002		37,975		1,707,569		1.4	%		44.97

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Operating Property Overview (Cont.) (As of June 30, 2017, unaudited)

Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Rentable Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot
U.S.Government Leased Properties (Cont.)
ICE - Otay	San Diego, CA	Office	2022 / 2026	2001		52,881		1,700,148		1.4	%		34.38
CBP - Sunburst	Sunburst, MT	Office	2028	2008		33,000		1,588,434		1.3	%		48.13
USCG - Martinsburg	Martinsburg, WV	Office	2027	2007		59,547		1,574,367		1.3	%		26.44
AOC - Aberdeen	Aberdeen, MS	Courthouse/Office	2025	2005		46,979		1,459,277		1.2	%		31.06
DEA - Birmingham	Birmingham, AL	Office	2020	2005		35,616		1,392,369		1.2	%		39.09
DEA - Albany	Albany, NY	Office	2025	2004		31,976		1,339,760		1.1	%		41.90
DEA - Otay	San Diego, CA	Office	2017	1997		32,560		1,303,953		1.1	%		40.05
DEA - Riverside	Riverside, CA	Office	2017	1997		34,354		1,291,158		1.1	%		37.58
AOC - South Bend	South Bend, IN	Courthouse/Office	2027	1996 / 2011		30,119		820,226		0.7	%		27.23
SSA - Mission Viejo	Mission Viejo, CA	Office	2020	2005		11,590		535,274		0.4	%		46.18
DEA - San Diego	San Diego, CA	Warehouse	2032	1999		16,100		525,712		0.4	%		32.65
SSA - San Diego	San Diego, CA	Office	2032	2003		10,856		442,291		0.4	%		43.97
Subtotal						3,238,794	$	118,212,855		97.8	%	$	36.55
Privately Leased Properties
2650 SW 145th Avenue - Parbel of Florida	Miramar, FL	Warehouse/Distribution	2018	2007		81,721		1,668,372		1.4	%		20.42
5998 Osceola Court - United Technologies	Midland, GA	Warehouse/Manufacturing	2023	2014		105,641		538,932		0.4	%		5.10
501 East Hunter Street - Lummus Corporation	Lubbock, TX	Warehouse/Distribution	2028	2013		70,078		521,472		0.4	%		7.44
Subtotal						257,440	$	2,728,776		2.2	%	$	10.60
Total / Weighted Average						3,496,234	$	120,941,631		100.0	%	$	34.63

`15

Tenants (As of June 30, 2017, unaudited)

Tenant	Numberof Properties		Number of Leases		Weighted Average Remaining Lease Term(1)		Leased Square Feet		Percentage of Leased Square Feet			Annualized Lease Income		Percentage of Total Annualized Lease Income
U.S. Government
Federal Bureau of Investigation ("FBI")		6		6		3.9		653,826		18.7	%	$	19,560,141		16.2	%
Drug Enforcement Administration ("DEA")		11		11		5.4		432,142		12.4	%		18,768,638		15.5	%
Department of Veteran Affairs ("VA")		1		1		18.9		327,614		9.4	%		16,039,323		13.3	%
Administrative Office of the U.S. Courts ("AOC")		4		4		6.4		213,791		6.1	%		7,983,935		6.6	%
Immigration and Customs Enforcement ("ICE")		3		3		8.4		182,522		5.2	%		7,567,172		6.3	%
Internal Revenue Service ("IRS")		1		1		1.4		180,481		5.2	%		7,486,857		6.2	%
Patent and Trademark Office ("PTO")		1		2		1.8		189,871		5.4	%		6,557,257		5.4	%
U.S. Forest Service ("USFS")		2		2		6.6		191,175		5.5	%		5,523,560		4.6	%
Customs and Border Protection ("CBP")		3		3		7.7		127,397		3.6	%		5,411,381		4.5	%
Environmental Protection Agency ("EPA")		1		1		5.8		71,979		2.1	%		3,852,671		3.2	%
Department of Transportation ("DOT")		1		2		6.8		129,659		3.7	%		3,743,994		3.1	%
U.S. Citizenship and Immigration Services ("USCIS")		1		1		3.2		137,671		3.9	%		3,256,811		2.7	%
Occupational Safety and Health Administration ("OSHA")		1		1		6.6		75,000		2.1	%		2,988,675		2.5	%
Military Entrance Processing Command ("MEPCOM")		1		1		8.3		30,000		0.9	%		2,179,704		1.8	%
Department of Energy ("DOE")		1		1		12.4		115,650		3.3	%		2,061,963		1.7	%
National Park Service ("NPS")		1		1		7.0		62,772		1.9	%		1,750,216		1.4	%
U.S. Coast Guard ("USCG")		1		1		10.5		59,547		1.8	%		1,574,367		1.3	%
Social Security Administration ("SSA")		2		2		9.0		21,649		0.7	%		977,565		0.8	%
Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”)(2)		0		0		3.5		8,680		0.2	%		339,335		0.3	%
U.S. Department of Agriculture ("USDA")		0		1		8.5		1,538		0.0	%		53,085		0.0	%
Subtotal		42		45		6.9		3,212,964		92.1	%	$	117,676,650		97.4	%
Private Tenants
Parbel of Florida		1		1		0.7		81,721		2.3	%	$	1,668,372		1.4	%
United Technologies (Pratt & Whitney)		1		1		6.5		105,641		3.0	%		538,932		0.4	%
We Are Sharing Hope SC(3)		0		1		4.3		21,609		0.6	%		536,205		0.4	%
Lummus Corporation		1		1		11.1		70,078		2.0	%		521,472		0.4	%
Subtotal		3		4		5.8		279,049		7.9	%	$	3,264,981		2.6	%
Total / Weighted Average		45		49		6.8		3,492,013		100.0	%	$	120,941,631		100.0	%

⁽¹⁾Weighted based on leased square feet.

⁽²⁾ATF occupies the first floor of the DEA – Birmingham building in a joint lease with the DEA.

⁽³⁾LifePoint, Inc. changed its legal name to We Are Sharing Hope SC.

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Lease Expirations (As of June 30, 2017, unaudited)

Year of Lease Expiration	Number of Leases Expiring		Square Footage Expiring		Percentage of Total Square Footage Expiring			Annualized Lease Income Expiring		Percentage of TotalAnnualized Lease Income Expiring			Annualized Lease Income per Leased Square Foot Expiring
2017		3		104,889		3.0	%	$	4,302,680		3.6	%	$	41.02
2018		4		419,783		12.0	%		12,957,628		10.7	%		30.87
2019		2		215,281		6.1	%		8,828,567		7.3	%		41.01
2020		7		356,677		10.2	%		11,738,603		9.7	%		32.91
2021		7		582,782		16.7	%		17,375,438		14.4	%		29.81
2022		2		47,919		1.4	%		1,647,063		1.4	%		34.37
2023		2		177,620		5.1	%		4,391,603		3.6	%		24.72
2024		6		501,978		14.4	%		17,499,009		14.5	%		34.86
2025		3		108,955		3.1	%		4,978,741		4.1	%		45.70
2026		2		100,258		2.9	%		2,849,059		2.4	%		28.42
Thereafter		11		875,871		25.1	%		34,373,240		28.3	%		39.24
Total / Weighted Average		49		3,492,013		100.0	%	$	120,941,631		100.0	%	$	34.63

`17