Exhibit 99.2
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Disclaimers | 
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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; the risk of 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, 2019, to be filed with the Securities and Exchange Commission, or the SEC, on or about February 25, 2020 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 year ended December 31, 2019 that will be released on Form 10-K to be filed on or about February 25, 2020.
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Supplemental Definitions |
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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 net 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.
Cash fixed charge coverage ratio is calculated as EBITDA divided by the sum of principal amortization and interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.
Cash interest coverage ratio is calculated as EBITDA divided by interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.
EBITDA is calculated as the sum of net income (loss) before interest expense, 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, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. 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.
Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. 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, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), non-cash interest expense, non-cash compensation and other non-cash items. By excluding these income and expense items from FFO, as Adjusted, the Company believes it provides useful information as these items have no cash impact. In addition, by excluding acquisition
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Supplemental Definitions |
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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. Certain prior year amounts have been updated to conform to the current year FFO, as Adjusted definition.
Net Operating Income (NOI) and Cash NOI. NOI is calculated as net income plus depreciation and amortization, acquisition costs, corporate general and administrative costs, interest expense and gains or losses from sales of property. Cash NOI excludes from NOI straight-line rent, amortization of above-/below-market leases, and amortization of deferred revenue (which results from landlord assets funded by tenants). NOI and Cash NOI presented by the Company may not be comparable to NOI and Cash NOI reported by other REITs that define NOI and Cash NOI differently. The Company believes that NOI and Cash NOI provide investors with useful measures of the operating performance of our properties. NOI and Cash 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. Certain prior year amounts have been updated to conform to the current year Cash NOI definition.
Net Debt and Adjusted Net Debt. Net Debt represents consolidated debt (reported in accordance with GAAP) adjusted to exclude unamortized premiums and discounts and deferred financing fees, less cash and cash equivalents. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) the lesser of i) anticipated lump-sum reimbursement amounts and ii) the cost to date for each project under construction and 2) 40% times the amount by which the cost to date exceeds anticipated lump-sum reimbursement amounts for each project under construction. These adjustments are made to 1) remove the estimated portion of each project under construction that has been financed with debt which may be repaid with anticipated cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction, in excess of anticipated lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 20 for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
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Table of Contents |
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Corporate Information and Analyst Coverage |
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Corporate Information |
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Corporate Headquarters | Stock Exchange Listing | Information Requests | Investor Relations |
2101 L Street NW | New York Stock Exchange | Please contact ir@easterlyreit.com | Lindsay Winterhalter, |
Suite 650 | | or 202-596-3947 to request an | VP, Investor Relations |
Washington, DC 20037 | Ticker | Investor Relations package | & Operations |
202-595-9500 | DEA | | |
Executive Team | | Board of Directors | |
William Trimble III, CEO | Darrell Crate, Chairman | William Binnie, Lead Independent Director | Michael Ibe |
Michael Ibe, Vice-Chairman and EVP | Meghan Baivier, CFO & COO | Darrell Crate | Tara Innes |
Alison Bernard, CAO | Ronald Kendall, EVP | Cynthia Fisher | James Mead |
Andrew Pulliam, EVP | | Emil Henry Jr. | William Trimble III |
Equity Research Coverage | | |
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Citigroup | Raymond James & Associates | RBC Capital Markets |
Michael Bilerman / Emmanuel Korchman | Bill Crow / Paul Puryear | Michael Carroll |
212-816-1383 / 212-816-1382 | 727-567-2594 / 727-567-2253 | 440-715-2649 |
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Jefferies | SunTrust Robinson Humphrey | Compass Point Research & Trading, LLC |
Jonathan Petersen | Michael R. Lewis | Merrill Ross |
212-284-1705 | 212-319-5659 | 202-534-1392 |
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 (In thousands, except share and per share amounts) |
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Price of Common Shares | | Three months ended December 31, 2019 | | | Earnings | | | Three months ended December 31, 2019 | | | Three months ended December 31, 2018 | |
High closing price during period | | $ | 23.73 | | | Net income available to Easterly Government Properties, Inc. | | $ | 1,432 | | | $ | 590 | |
Low closing price during period | | $ | 21.25 | | | Net income available to Easterly Government Properties, Inc. | | | | | | | | |
End of period closing price | | $ | 23.73 | | | per share: | | | | | | | | | |
| | | | | | Basic | | | $ | 0.02 | | | $ | 0.01 | |
Outstanding Classes of Stock and | | | | | | Diluted | | | $ | 0.02 | | | $ | 0.01 | |
Partnership Units - Fully Diluted Basis | | At December 31, 2019 | | | | | | | | | | | | |
Common shares | | | 74,740,095 | | | Net income | | | $ | 1,611 | | | $ | 643 | |
Unvested restricted shares | | | 92,197 | | | Net income, per share - fully diluted basis | | | $ | 0.02 | | | $ | 0.01 | |
Common partnership and vested LTIP units | | | 9,663,372 | | | | | | | | | | | | |
Total - fully diluted basis | | | 84,495,664 | | | Funds From Operations (FFO) | | | $ | 25,333 | | | $ | 21,715 | |
| | | | | | FFO, per share - fully diluted basis | | | $ | 0.30 | | | $ | 0.31 | |
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Market Capitalization | | At December 31, 2019 | | | FFO, as Adjusted | | | $ | 25,896 | | | $ | 20,017 | |
Total equity market capitalization - fully diluted basis | | $ | 2,005,082 | | | FFO, as Adjusted, per share - fully diluted basis | | | $ | 0.31 | | | $ | 0.29 | |
Net Debt | | | 895,743 | | | | | | | | | | | | |
Total enterprise value | | $ | 2,900,825 | | | Cash Available for Distribution (CAD) | | | $ | 22,406 | | | $ | 17,236 | |
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Ratios | | At December 31, 2019 | | | Liquidity | | | | | | | At December 31, 2019 | |
Net debt to total enterprise value | | | 30.9 | % | | Cash and cash equivalents | | | | | | | $ | 12,012 | |
Net debt to annualized quarterly EBITDA | | | 6.5 | x | | | | | | | | | | | |
Adjusted Net Debt to annualized quarterly pro | | | | | Available under $450 million unsecured revolving credit facility(1) | | | $ | 450,000 | |
forma EBITDA | | | 6.1 | x | | | | | | | | | | | |
Cash interest coverage ratio | | | 4.1 | x | | | | | | | |
Cash fixed charge coverage ratio | | | 3.7 | x | | | | | | | | | | | |
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(1)Revolving 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 revolving credit facility size of not more than $700 million.
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Balance Sheets (Unaudited, in thousands, except share amounts) |
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| | December 31, 2019 | | | December 31, 2018 | |
Assets | | | | | | | | |
Real estate properties, net | | $ | 1,988,726 | | | $ | 1,626,617 | |
Cash and cash equivalents | | | 12,012 | | | | 6,854 | |
Restricted cash | | | 3,537 | | | | 4,251 | |
Deposits on acquisitions | | | 1,800 | | | | 7,070 | |
Rents receivable | | | 27,788 | | | | 21,140 | |
Accounts receivable | | | 15,820 | | | | 11,690 | |
Deferred financing, net | | | 1,749 | | | | 2,459 | |
Intangible assets, net | | | 168,625 | | | | 165,668 | |
Interest rate swaps | | | 541 | | | | 4,563 | |
Prepaid expenses and other assets | | | 13,991 | | | | 11,238 | |
Total assets | | $ | 2,234,589 | | | $ | 1,861,550 | |
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Liabilities | | | | | | | | |
Revolving credit facility | | | - | | | | 134,750 | |
Term loan facilities, net | | | 248,602 | | | | 248,238 | |
Notes payable, net | | | 446,927 | | | | 173,778 | |
Mortgage notes payable, net | | | 206,312 | | | | 209,589 | |
Intangible liabilities, net | | | 24,578 | | | | 30,835 | |
Deferred revenue | | | 54,659 | | | | 3,066 | |
Interest rate swaps | | | 5,837 | | | | 1,797 | |
Accounts payable and accrued liabilities | | | 47,833 | | | | 34,244 | |
Total liabilities | | | 1,034,748 | | | | 836,297 | |
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Equity | | | | | | | | |
Common stock, par value $0.01, 200,000,000 shares authorized, | | | | | | | | |
74,832,292 and 60,849,206 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively. | | | 748 | | | | 608 | |
Additional paid-in capital | | | 1,257,319 | | | | 1,017,415 | |
Retained earnings | | | 20,004 | | | | 12,831 | |
Cumulative dividends | | | (210,760 | ) | | | (139,103 | ) |
Accumulated other comprehensive (loss) income | | | (4,690 | ) | | | 2,412 | |
Total stockholders' equity | | | 1,062,621 | | | | 894,163 | |
Non-controlling interest in Operating Partnership | | | 137,220 | | | | 131,090 | |
Total equity | | | 1,199,841 | | | | 1,025,253 | |
Total liabilities and equity | | $ | 2,234,589 | | | $ | 1,861,550 | |
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Income Statements (Unaudited, in thousands, except share and per share amounts) |
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| | Three Months Ended | | | Year Ended | |
| | December 31, 2019 | | | December 31, 2018 | | | December 31, 2019 | | | December 31, 2018 | |
Revenues | | | | | | | | | | | | | | | | |
Rental income | | $ | 56,161 | | | $ | 46,234 | | | $ | 208,544 | | | $ | 154,489 | |
Tenant reimbursements | | | 3,602 | | | | 1,500 | | | | 10,210 | | | | 4,870 | |
Other income | | | 1,014 | | | | 474 | | | | 2,968 | | | | 1,232 | |
Total revenues | | | 60,777 | | | | 48,208 | | | | 221,722 | | | | 160,591 | |
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Expenses | | | | | | | | | | | | | | | | |
Property operating | | | 13,974 | | | | 9,349 | | | | 48,279 | | | | 30,912 | |
Real estate taxes | | | 6,415 | | | | 5,538 | | | | 23,643 | | | | 17,311 | |
Depreciation and amortization | | | 23,722 | | | | 21,072 | | | | 92,439 | | | | 66,403 | |
Acquisition costs | | | 297 | | | | 556 | | | | 1,738 | | | | 1,579 | |
Corporate general and administrative | | | 5,902 | | | | 4,128 | | | | 20,184 | | | | 14,824 | |
Total expenses | | | 50,310 | | | | 40,643 | | | | 186,283 | | | | 131,029 | |
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Other income (expenses) | | | | | | | | | | | | | | | | |
Interest expense, net | | | (8,856 | ) | | | (6,922 | ) | | | (33,460 | ) | | | (22,903 | ) |
Gain on the sale of operating property | | | - | | | | - | | | | 6,245 | | | | - | |
Net income | | | 1,611 | | | | 643 | | | | 8,224 | | | | 6,659 | |
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Non-controlling interest in Operating Partnership | | | (179 | ) | | | (53 | ) | | | (1,017 | ) | | | (955 | ) |
Net income available to Easterly Government | | | | | | | | | | | | | | | | |
Properties, Inc. | | $ | 1,432 | | | $ | 590 | | | $ | 7,207 | | | $ | 5,704 | |
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Net income available to Easterly Government | | | | | | | | | | | | | | | | |
Properties, Inc. per share: | | | | | | | | | | | | | | | | |
Basic | | $ | 0.02 | | | $ | 0.01 | | | $ | 0.10 | | | $ | 0.09 | |
Diluted | | $ | 0.02 | | | $ | 0.01 | | | $ | 0.10 | | | $ | 0.08 | |
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Weighted-average common shares outstanding: | | | | | | | | | | | | | | | | |
Basic | | | 73,990,247 | | | | 60,810,173 | | | | 68,769,526 | | | | 53,511,137 | |
Diluted | | | 74,523,217 | | | | 61,846,131 | | | | 69,208,966 | | | | 54,931,380 | |
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Net income, per share - fully diluted basis | | $ | 0.02 | | | $ | 0.01 | | | $ | 0.10 | | | $ | 0.11 | |
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Weighted average common shares outstanding - | | | | | | | | | | | | | | | | |
fully diluted basis | | | 83,696,279 | | | | 69,654,783 | | | | 78,566,181 | | | | 62,499,743 | |
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Net Operating Income (Unaudited, in thousands) |
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| | | Three Months Ended | | | Year Ended | |
| | | December 31, 2019 | | | December 31, 2018 | | | December 31, 2019 | | | December 31, 2018 | |
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| Net income | | $ | 1,611 | | | $ | 643 | | | $ | 8,224 | | | $ | 6,659 | |
| Depreciation and amortization | | | 23,722 | | | | 21,072 | | | | 92,439 | | | | 66,403 | |
| Acquisition costs | | | 297 | | | | 556 | | | | 1,738 | | | | 1,579 | |
| Corporate general and administrative | | | 5,902 | | | | 4,128 | | | | 20,184 | | | | 14,824 | |
| Interest expense | | | 8,856 | | | | 6,922 | | | | 33,460 | | | | 22,903 | |
| Gain on the sale of operating property | | | - | | | | - | | | | (6,245 | ) | | | - | |
| Net Operating Income | | | 40,388 | | | | 33,321 | | | | 149,800 | | | | 112,368 | |
| Adjustments to Net Operating Income: | | | | | | | | | | | | | | | | |
| Straight-line rent | | | (590 | ) | | | (1,378 | ) | | | (2,239 | ) | | | (5,616 | ) |
| Amortization of above-/below-market leases | | | (1,559 | ) | | | (1,856 | ) | | | (6,320 | ) | | | (8,593 | ) |
| Amortization of deferred revenue | | | (697 | ) | | | (67 | ) | | | (1,007 | ) | | | (191 | ) |
| Cash Net Operating Income | | $ | 37,542 | | | $ | 30,020 | | | $ | 140,234 | | | $ | 97,968 | |
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EBITDA, FFO and CAD (Unaudited, in thousands, except share and per share amounts) |
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| | Three Months Ended | | | Year Ended | |
| | December 31, 2019 | | | December 31, 2018 | | | December 31, 2019 | | | December 31, 2018 | |
Net income | | $ | 1,611 | | | $ | 643 | | | $ | 8,224 | | | $ | 6,659 | |
Depreciation and amortization | | | 23,722 | | | | 21,072 | | | | 92,439 | | | | 66,403 | |
Interest expense | | | 8,856 | | | | 6,922 | | | | 33,460 | | | | 22,903 | |
Tax expense | | | 264 | | | | 103 | | | | 690 | | | | 368 | |
Gain on sale of operating property | | | - | | | | - | | | | (6,245 | ) | | | - | |
EBITDA | | $ | 34,453 | | | $ | 28,740 | | | $ | 128,568 | | | $ | 96,333 | |
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Pro forma adjustments(1) | | | 419 | | | | | | | | | | | | | |
Pro forma EBITDA | | $ | 34,872 | | | | | | | | | | | | | |
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Net income | | $ | 1,611 | | | $ | 643 | | | $ | 8,224 | | | $ | 6,659 | |
Depreciation and amortization | | | 23,722 | | | | 21,072 | | | | 92,439 | | | | 66,403 | |
Gain on the sale of operating property | | | - | | | | - | | | | (6,245 | ) | | | - | |
FFO | | $ | 25,333 | | | $ | 21,715 | | | $ | 94,418 | | | $ | 73,062 | |
Adjustments to FFO: | | | | | | | | | | | | | | | | |
Acquisition costs | | | 297 | | | | 556 | | | | 1,738 | | | | 1,579 | |
Straight-line rent and other non-cash adjustments | | | (600 | ) | | | (1,384 | ) | | | (2,276 | ) | | | (5,640 | ) |
Amortization of above-/below-market leases | | | (1,559 | ) | | | (1,856 | ) | | | (6,320 | ) | | | (8,593 | ) |
Amortization of deferred revenue | | | (697 | ) | | | (67 | ) | | | (1,007 | ) | | | (191 | ) |
Non-cash interest expense | | | 358 | | | | 321 | | | | 1,333 | | | | 1,197 | |
Non-cash compensation | | | 2,764 | | | | 732 | | | | 4,909 | | | | 3,039 | |
FFO, as Adjusted | | $ | 25,896 | | | $ | 20,017 | | | $ | 92,795 | | | $ | 64,453 | |
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FFO, per share - fully diluted basis | | $ | 0.30 | | | $ | 0.31 | | | $ | 1.20 | | | $ | 1.17 | |
FFO, as Adjusted, per share - fully diluted basis | | $ | 0.31 | | | $ | 0.29 | | | $ | 1.18 | | | $ | 1.03 | |
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FFO, as Adjusted | | $ | 25,896 | | | $ | 20,017 | | | $ | 92,795 | | | $ | 64,453 | |
Acquisition costs | | | (297 | ) | | | (556 | ) | | | (1,738 | ) | | | (1,579 | ) |
Principal amortization | | | (861 | ) | | | (826 | ) | | | (3,391 | ) | | | (3,189 | ) |
Maintenance capital expenditures | | | (1,367 | ) | | | (952 | ) | | | (4,421 | ) | | | (3,304 | ) |
Contractual tenant improvements | | | (965 | ) | | | (447 | ) | | | (1,906 | ) | | | (1,678 | ) |
Cash Available for Distribution (CAD) | | $ | 22,406 | | | $ | 17,236 | | | $ | 81,339 | | | $ | 54,703 | |
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Weighted average common shares outstanding - | | | | | | | | | | | | | | | | |
fully diluted basis | | | 83,696,279 | | | | 69,654,783 | | | | 78,566,181 | | | | 62,499,743 | |
(1)Pro forma assuming a full quarter of operations from the two properties acquired in the fourth quarter of 2019.
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Debt Schedules (Unaudited, in thousands) |
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Debt Instrument | Maturity Date | | | December 31, 2019 Interest Rate | | December 31, 2019 Balance(1) | | December 31, 2019 Percent of Total Indebtedness | |
Unsecured debt | | | | | | | | | | | | | |
Revolving Credit facility | 18-Jun-22(2) | | | LIBOR + 130bps | | $ | - | | 0.0% | |
2016 Term Loan facility | 29-Mar-24 | | | 2.67%(3) | | | 100,000 | | 11.0% | |
2018 Term Loan facility | 19-Jun-23 | | | 3.96%(4) | | | 150,000 | | 16.5% | |
2017 Series A Senior Notes | 25-May-27 | | | 4.05% | | | 95,000 | | 10.5% | |
2017 Series B Senior Notes | 25-May-29 | | | 4.15% | | | 50,000 | | 5.5% | |
2017 Series C Senior Notes | 25-May-32 | | | 4.30% | | | 30,000 | | 3.3% | |
2019 Series A Senior Notes | 12-Sep-29 | | | 3.73% | | | 85,000 | | 9.4% | |
2019 Series B Senior Notes | 12-Sep-31 | | | 3.83% | | | 100,000 | | 11.0% | |
2019 Series C Senior Notes | 12-Sep-34 | | | 3.98% | | | 90,000 | | 9.9% | |
Total unsecured debt | 8.3 years | | | 3.77% | | $ | 700,000 | | 77.1% | |
| (wtd-avg maturity) | | | (wtd-avg rate) | | | | | | | |
| | | | | | | | | | | | | |
Secured mortgage debt | | | | | | | | | | | | | |
DEA - Pleasanton | 18-Oct-23 | | | LIBOR + 150bps | | $ | 15,700 | | 1.7% | |
VA - Golden | 1-Apr-24 | | | 5.00% | | | 9,179 | | 1.0% | |
MEPCOM - Jacksonville | 14-Oct-25 | | | 4.41% | | | 8,946 | | 1.0% | |
USFS II - Albuquerque | 14-Jul-26 | | | 4.46% | | | 16,255 | | 1.8% | |
ICE - Charleston | 15-Jan-27 | | | 4.21% | | | 17,420 | | 2.0% | |
VA - Loma Linda | 6-Jul-27 | | | 3.59% | | | 127,500 | | 14.0% | |
CBP - Savannah | 10-Jul-33 | | | 3.40% | | | 12,755 | | 1.4% | |
Total secured mortgage debt | 7.3 years | | | 3.77% | | $ | 207,755 | | 22.9% | |
| (wtd-avg maturity) | | | (wtd-avg rate) | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Debt Statistics | December 31, 2019 | | | | | | | | | December 31, 2019 | |
Variable rate debt - unhedged | $ | 15,700 | | | % Variable rate debt - unhedged | | | 1.7 | % |
Fixed rate debt | | 892,055 | | | % Fixed rate debt | | | 98.3 | % |
Total Debt(1) | $ | 907,755 | | | | | | | | | | | |
Less: cash and cash equivalents | | (12,012 | ) | | Weighted average maturity | | 8.1 years | |
Net Debt | $ | 895,743 | | | Weighted average interest rate | | | 3.8 | % |
Less: adjustment for projects under construction(5) | | (41,271 | ) | | | | | | | | | | |
Adjusted Net Debt | $ | 854,472 | | | | | | | | | | | |
(1)Excludes unamortized premiums / discounts and deferred financing fees.
(2)Revolving credit facility has two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.
(3)Calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 2.67% annually based on the Company’s current leverage ratio.
(4)Calculated based on four interest rate swaps with an aggregate notional value of $150.0 million, which effectively fix the interest rate at 3.96% annually based on the Company’s current leverage ratio.
5)See definition of Adjusted Net Debt on Page 4.
12
| |
Debt Maturities (Unaudited, in thousands) |
|
|
| | Secured Debt | | | Unsecured Debt | | | | | | | | | | | | | |
Year | | Scheduled Amortization | | | Scheduled Maturities | | | Scheduled Maturities | | | Total | | | Percentage of Debt Maturing | | | Weighted Average Interest Rate of Scheduled Maturities | |
2020 | | $ | 3,565 | | | - | | | - | | | $ | 3,565 | | | | 0.4 | % | | - | |
2021 | | | 4,233 | | | - | | | - | | | | 4,233 | | | | 0.5 | % | | - | |
2022 | | | 5,297 | | | - | | | | - | | | | 5,297 | | | | 0.6 | % | | - | |
2023 | | | 5,585 | | | | 15,700 | | | | 150,000 | | | | 171,285 | | | | 18.9 | % | | | 3.89 | % |
2024 | | | 5,730 | | | | 8,395 | | | | 100,000 | | | | 114,125 | | | | 12.6 | % | | | 2.86 | % |
2025 | | | 5,633 | | | | 1,917 | | | - | | | | 7,550 | | | | 0.8 | % | | | 4.41 | % |
2026 | | | 3,686 | | | | 6,368 | | | - | | | | 10,054 | | | | 1.1 | % | | | 4.46 | % |
2027 | | | 1,093 | | | | 134,640 | | | | 95,000 | | | | 230,733 | | | | 25.4 | % | | | 3.82 | % |
2028 | | | 983 | | | - | | | - | | | | 983 | | | | 0.1 | % | | - | |
2029 | | | 1,016 | | | - | | | | 135,000 | | | | 136,016 | | | | 15.0 | % | | | 3.89 | % |
2030 | | | 1,049 | | | - | | | - | | | | 1,049 | | | | 0.1 | % | | - | |
2031 | | | 1,081 | | | - | | | | 100,000 | | | | 101,081 | | | | 11.1 | % | | | 3.83 | % |
2032 | | | 1,116 | | | - | | | | 30,000 | | | | 31,116 | | | | 3.4 | % | | | 4.30 | % |
2033 | | | 668 | | | - | | | - | | | | 668 | | | | 0.1 | % | | - | |
2034 | | | - | | | - | | | | 90,000 | | | | 90,000 | | | | 9.9 | % | | | 3.98 | % |
Total | | $ | 40,735 | | | $ | 167,020 | | | $ | 700,000 | | | $ | 907,755 | | | | 100.0 | % | | | | |
13
| |
Operating Property Overview (As of December 31, 2019, 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 | | | $ | 16,277,403 | | | | 7.4 | % | | $ | 49.68 | |
Various GSA - Buffalo | | Buffalo, NY | | Office | | 2020 - 2025 | | 2004 | | | 267,766 | | | | 8,479,847 | | | | 3.9 | % | | | 31.67 | |
JSC - Suffolk | | Suffolk, VA | | Office | | 2028 | | 1993 / 2004 | | | 403,737 | | | | 8,106,829 | | | | 3.7 | % | | | 20.08 | |
Various GSA - Portland | | Portland, OR | | Office | | 2020 - 2025 | | 2002 | | | 223,261 | | | | 6,913,111 | | | | 3.2 | % | | | 31.28 | |
FBI - Salt Lake | | Salt Lake City, UT | | Office | | 2032 | | 2012 | | | 169,542 | | | | 6,816,845 | | | | 3.1 | % | | | 40.21 | |
IRS - Fresno | | Fresno, CA | | Office | | 2033 | | 2003 | | | 180,481 | | | | 6,606,378 | | | | 3.0 | % | | | 36.60 | |
PTO - Arlington | | Arlington, VA | | Office | | 2035 | | 2009 | | | 190,546 | | | | 6,528,701 | | | | 3.0 | % | | | 34.26 | |
Various GSA - Chicago | | Des Plaines, IL | | Office | | 2020 / 2022 | | 1971 / 1999 | | | 232,759 | | | | 6,457,951 | | | | 3.0 | % | | | 28.81 | |
VA - San Jose | | San Jose, CA | | Outpatient Clinic | | 2038 | | 2018 | | | 90,085 | | | | 5,819,082 | | | | 2.7 | % | | | 64.60 | |
EPA - Lenexa | | Lenexa, KS | | Office | | 2027 | | 2007 / 2012 | | | 169,585 | | | | 5,498,307 | | | | 2.5 | % | | | 32.42 | |
FBI - San Antonio | | San Antonio, TX | | Office | | 2021 | | 2007 | | | 148,584 | | | | 5,176,951 | | | | 2.4 | % | | | 34.84 | |
FEMA - Tracy | | Tracy, CA | | Warehouse | | 2038 | | 2018 | | | 210,373 | | | | 4,607,609 | | | | 2.1 | % | | | 21.90 | |
FBI - Omaha | | Omaha, NE | | Office | | 2024 | | 2009 | | | 112,196 | | | | 4,423,905 | | | | 2.0 | % | | | 39.43 | |
TREAS - Parkersburg | | Parkersburg, WV | | Office | | 2021 | | 2004 / 2006 | | | 182,500 | | | | 4,416,549 | | | | 2.0 | % | | | 24.20 | |
FDA - Alameda | | Alameda, CA | | Laboratory | | 2039 | | 2019 | | | 69,624 | | | | 4,286,185 | | | | 2.0 | % | | | 61.56 | |
EPA - Kansas City | | Kansas City, KS | | Laboratory | | 2023 | | 2003 | | | 71,979 | | | | 4,272,749 | | | | 2.0 | % | | | 59.36 | |
VA - South Bend | | Mishakawa, IN | | Outpatient Clinic | | 2032 | | 2017 | | | 86,363 | | | | 3,975,368 | | | | 1.8 | % | | | 46.03 | |
ICE - Charleston | | North Charleston, SC | | Office | | 2021 / 2027 | | 1994 / 2012 | | | 86,733 | | | | 3,811,077 | | | | 1.8 | % | | | 43.94 | |
FBI - Pittsburgh | | Pittsburgh, PA | | Office | | 2027 | | 2001 | | | 100,054 | | | | 3,618,787 | | | | 1.7 | % | | | 36.17 | |
FBI - New Orleans | | New Orleans, LA | | Office | | 2029 | | 1999 / 2006 | | | 137,679 | | | | 3,495,959 | | | | 1.6 | % | | | 25.39 | |
DOT - Lakewood | | Lakewood, CO | | Office | | 2024 | | 2004 | | | 122,225 | | | | 3,481,840 | | | | 1.6 | % | | | 28.49 | |
USCIS - Lincoln | | Lincoln, NE | | Office | | 2020 | | 2005 | | | 137,671 | | | | 3,313,509 | | | | 1.5 | % | | | 24.07 | |
FBI - Birmingham | | Birmingham, AL | | Office | | 2020 | | 2005 | | | 96,278 | | | | 3,200,326 | | | | 1.5 | % | | | 33.24 | |
USFS II - Albuquerque | | Albuquerque, NM | | Office | | 2026 | | 2011 | | | 98,720 | | | | 3,006,955 | | | | 1.4 | % | | | 30.46 | |
OSHA - Sandy | | Sandy, UT | | Laboratory | | 2024 | | 2003 | | | 75,000 | | | | 3,003,009 | | | | 1.4 | % | | | 40.04 | |
USCIS - Tustin | | Tustin, CA | | Office | | 2034 | | 1979 / 2019 | | | 66,818 | | | | 3,000,798 | | | | 1.4 | % | | | 44.91 | |
FDA - College Park | | College Park, MD | | Laboratory | | 2029 | | 2004 | | | 80,677 | | | | 2,987,051 | | | | 1.4 | % | | | 37.02 | |
USFS I - Albuquerque | | Albuquerque, NM | | Office | | 2021 | | 2006 | | | 92,455 | | | | 2,874,160 | | | | 1.3 | % | | | 31.09 | |
DEA - Vista | | Vista, CA | | Laboratory | | 2020 | | 2002 | | | 54,119 | | | | 2,811,893 | | | | 1.3 | % | | | 51.96 | |
SSA - Charleston | | Charleston, WV | | Office | | 2024 | | 1959 / 2000 | | | 110,000 | | | | 2,769,240 | | | | 1.3 | % | | | 25.17 | |
FBI - Richmond | | Richmond, VA | | Office | | 2041 | | 2001 | | | 96,607 | | | | 2,755,886 | | | | 1.3 | % | | | 28.53 | |
ICE - Albuquerque | | Albuquerque, NM | | Office | | 2027 | | 2011 | | | 71,100 | | | | 2,755,730 | | | | 1.3 | % | | | 38.76 | |
FBI - Albany | | Albany, NY | | Office | | 2021 | | 1998 | | | 98,184 | | | | 2,694,342 | | | | 1.2 | % | | | 27.44 | |
JUD - Del Rio | | Del Rio, TX | | Courthouse/Office | | 2024 | | 1992 / 2004 | | | 89,880 | | | | 2,687,974 | | | | 1.2 | % | | | 29.91 | |
VA - Northeast | | Northeast | | Outpatient Clinic | | 2034 | | 2019 | | | 56,330 | | | | 2,683,810 | | | | 1.2 | % | | | 47.64 | |
DEA - Pleasanton | | Pleasanton, CA | | Laboratory | | 2035 | | 2015 | | | 42,480 | | | | 2,682,381 | | | | 1.2 | % | | | 63.14 | |
JUD - El Centro | | El Centro, CA | | Courthouse/Office | | 2034 | | 2004 | | | 43,345 | | | | 2,651,832 | | | | 1.2 | % | | | 61.18 | |
DEA - Sterling | | Sterling, VA | | Laboratory | | 2020 | | 2001 | | | 49,692 | | | | 2,464,387 | | | | 1.1 | % | | | 49.59 | |
14
| |
Operating Property Overview (Cont.) (As of December 31, 2019, 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.) | |
DEA - Dallas Lab | | Dallas, TX | | Laboratory | | 2021 | | 2001 | | | 49,723 | | | | 2,434,844 | | | | 1.1 | % | | | 48.97 | |
TREAS - Birmingham | | Birmingham, AL | | Office | | 2029 | | 2014 | | | 83,676 | | | | 2,429,274 | | | | 1.1 | % | | | 29.03 | |
DEA - Upper Marlboro | | Upper Marlboro, MD | | Laboratory | | 2022 | | 2002 | | | 50,978 | | | | 2,289,287 | | | | 1.1 | % | | | 44.91 | |
FBI - Little Rock | | Little Rock, AR | | Office | | 2021 | | 2001 | | | 101,977 | | | | 2,257,483 | | | | 1.0 | % | | | 22.14 | |
MEPCOM - Jacksonville | | Jacksonville, FL | | Office | | 2025 | | 2010 | | | 30,000 | | | | 2,204,619 | | | | 1.0 | % | | | 73.49 | |
CBP - Savannah | | Savannah, GA | | Laboratory | | 2033 | | 2013 | | | 35,000 | | | | 2,147,762 | | | | 1.0 | % | | | 61.36 | |
DOE - Lakewood | | Lakewood, CO | | Office | | 2029 | | 1999 | | | 115,650 | | | | 2,084,275 | | | | 1.0 | % | | | 18.02 | |
DEA - Santa Ana | | Santa Ana, CA | | Office | | 2024 | | 2004 | | | 39,905 | | | | 1,875,724 | | | | 0.9 | % | | | 47.00 | |
JUD - Charleston | | Charleston, SC | | Courthouse/Office | | 2019 | | 1999 | | | 50,888 | | | | 1,818,134 | | | | 0.8 | % | | | 35.73 | |
NPS - Omaha | | Omaha, NE | | Office | | 2024 | | 2004 | | | 62,772 | | | | 1,767,747 | | | | 0.8 | % | | | 28.16 | |
ICE - Otay | | San Diego, CA | | Office | | 2022 / 2026 | | 2001 | | | 52,881 | | | | 1,756,238 | | | | 0.8 | % | | | 35.51 | |
VA - Golden | | Golden, CO | | Office/Warehouse | | 2026 | | 1996 / 2011 | | | 56,753 | | | | 1,743,712 | | | | 0.8 | % | | | 30.72 | |
DEA - Dallas | | Dallas, TX | | Office | | 2021 | | 2001 | | | 71,827 | | | | 1,677,620 | | | | 0.8 | % | | | 23.36 | |
DEA - Otay | | San Diego, CA | | Office | | 2020 | | 1997 | | | 32,560 | | | | 1,630,371 | | | | 0.8 | % | | | 50.07 | |
CBP - Sunburst | | Sunburst, MT | | Office | | 2028 | | 2008 | | | 33,000 | | | | 1,611,348 | | | | 0.7 | % | | | 48.83 | |
USCG - Martinsburg | | Martinsburg, WV | | Office | | 2027 | | 2007 | | | 59,547 | | | | 1,599,477 | | | | 0.7 | % | | | 26.86 | |
DEA - Birmingham | | Birmingham, AL | | Office | | 2020 | | 2005 | | | 35,616 | | | | 1,531,347 | | | | 0.7 | % | | | 43.00 | |
JUD - Aberdeen | | Aberdeen, MS | | Courthouse/Office | | 2025 | | 2005 | | | 46,979 | | | | 1,485,961 | | | | 0.7 | % | | | 31.63 | |
DEA - North Highlands | | Sacramento, CA | | Office | | 2033 | | 2002 | | | 37,975 | | | | 1,443,109 | | | | 0.7 | % | | | 38.00 | |
GSA - Clarksburg | | Clarksburg, WV | | Office | | 2024 | | 1999 | | | 63,750 | | | | 1,432,449 | | | | 0.7 | % | | | 22.47 | |
DEA - Albany | | Albany, NY | | Office | | 2025 | | 2004 | | | 31,976 | | | | 1,350,108 | | | | 0.6 | % | | | 42.22 | |
DEA - Riverside | | Riverside, CA | | Office | | 2032 | | 1997 | | | 34,354 | | | | 1,242,519 | | | | 0.6 | % | | | 36.17 | |
SSA - Dallas | | Dallas, TX | | Office | | 2020 | | 2005 | | | 27,200 | | | | 1,074,520 | | | | 0.5 | % | | | 39.50 | |
VA - Baton Rouge | | Baton Rouge, LA | | Outpatient Clinic | | 2024 | | 2004 | | | 30,000 | | | | 796,498 | | | | 0.4 | % | | | 26.55 | |
ICE - Pittsburgh | | Pittsburgh, PA | | Office | | 2022 / 2023 | | 2004 | | | 33,425 | | | | 792,601 | | | | 0.4 | % | | | 31.40 | |
JUD - South Bend | | South Bend, IN | | Courthouse/Office | | 2027 | | 1996 / 2011 | | | 30,119 | | | | 767,370 | | | | 0.4 | % | | | 25.48 | |
DEA - San Diego | | San Diego, CA | | Warehouse | | 2032 | | 1999 | | | 16,100 | | | | 537,427 | | | | 0.2 | % | | | 33.38 | |
SSA - Mission Viejo | | Mission Viejo, CA | | Office | | 2020 | | 2005 | | | 11,590 | | | | 471,125 | | | | 0.2 | % | | | 40.65 | |
DEA - Bakersfield | | Bakersfield, CA | | Office | | 2021 | | 2000 | | | 9,800 | | | | 358,401 | | | | 0.2 | % | | | 36.57 | |
SSA - San Diego | | San Diego, CA | | Office | | 2032 | | 2003 | | | 10,856 | | | | 337,831 | | | | 0.2 | % | | | 33.58 | |
Subtotal | | | | | | | | | | | 6,289,919 | | | $ | 216,363,897 | | | | 99.6 | % | | $ | 34.53 | |
15
| |
Operating Property Overview (Cont.) (As of December 31, 2019, 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Privately Leased Properties | | | | | | | | | | | | | | | | | | | | | | | | |
5998 Osceola Court - United Technologies | | Midland, GA | | Warehouse/Manufacturing | | 2023 | | 2014 | | | 105,641 | | | | 543,046 | | | | 0.2 | % | | | 5.14 | |
501 East Hunter Street - Lummus Corporation | | Lubbock, TX | | Warehouse/Distribution | | 2028 | | 2013 | | | 70,078 | | | | 409,602 | | | | 0.2 | % | | | 5.84 | |
Subtotal | | | | | | | | | | | 175,719 | | | $ | 952,648 | | | | 0.4 | % | | $ | 5.42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total / Weighted Average | | | | | | | | | | | 6,465,638 | | | $ | 217,316,545 | | | | 100.0 | % | | $ | 33.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
16
| |
Tenants (As of December 31, 2019, unaudited) |
|
|
Tenant | | 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") | | | 6.9 | | | | 1,085,860 | | | | 16.8 | % | | $ | 35,114,008 | | | | 16.1 | % |
Department of Veteran Affairs ("VA") | | | 12.7 | | | | 752,328 | | | | 11.6 | % | | | 34,669,928 | | | | 16.0 | % |
Drug Enforcement Administration ("DEA") | | | 4.7 | | | | 557,313 | | | | 8.6 | % | | | 24,203,598 | | | | 11.1 | % |
Environmental Protection Agency ("EPA") | | | 6.5 | | | | 241,564 | | | | 3.7 | % | | | 9,771,056 | | | | 4.5 | % |
Judiciary of the U.S. ("JUD") | | | 5.7 | | | | 261,211 | | | | 4.1 | % | | | 9,411,271 | | | | 4.3 | % |
Internal Revenue Service ("IRS") | | | 10.6 | | | | 241,815 | | | | 3.8 | % | | | 8,604,032 | | | | 4.0 | % |
U.S. Joint Staff Command ("JSC") | | | 8.4 | | | | 403,737 | | | | 6.3 | % | | | 8,106,829 | | | | 3.7 | % |
Immigration and Customs Enforcement ("ICE") | | | 5.5 | | | | 193,661 | | | | 3.0 | % | | | 7,937,890 | | | | 3.7 | % |
Food and Drug Administration ("FDA") | | | 14.3 | | | | 150,301 | | | | 2.3 | % | | | 7,273,236 | | | | 3.3 | % |
Bureau of the Fiscal Service ("BFS") | | | 4.0 | | | | 266,176 | | | | 4.1 | % | | | 6,845,823 | | | | 3.2 | % |
Patent and Trademark Office ("PTO") | | | 15.0 | | | | 190,546 | | | | 3.0 | % | | | 6,528,701 | | | | 3.0 | % |
U.S. Citizenship and Immigration Services ("USCIS") | | | 5.2 | | | | 204,489 | | | | 3.2 | % | | | 6,314,307 | | | | 2.9 | % |
Federal Aviation Administration ("FAA") | | | 0.8 | | | | 209,970 | | | | 3.3 | % | | | 6,078,397 | | | | 2.8 | % |
U.S. Forest Service ("USFS") | | | 4.0 | | | | 191,175 | | | | 3.0 | % | | | 5,881,115 | | | | 2.7 | % |
Social Security Administration ("SSA") | | | 4.3 | | | | 200,866 | | | | 3.1 | % | | | 5,596,833 | | | | 2.6 | % |
Federal Emergency Management Agency ("FEMA") | | | 18.8 | | | | 210,373 | | | | 3.3 | % | | | 4,607,609 | | | | 2.1 | % |
Customs and Border Protection ("CBP") | | | 11.3 | | | | 68,000 | | | | 1.1 | % | | | 3,759,110 | | | | 1.7 | % |
Department of Transportation ("DOT") | | | 4.3 | | | | 129,659 | | | | 2.0 | % | | | 3,730,211 | | | | 1.7 | % |
Occupational Safety and Health Administration ("OSHA") | | | 4.1 | | | | 75,000 | | | | 1.2 | % | | | 3,003,009 | | | | 1.4 | % |
Department of Energy ("DOE") | | | 9.6 | | | | 120,496 | | | | 1.9 | % | | | 2,204,619 | | | | 1.0 | % |
Military Entrance Processing Command ("MEPCOM") | | | 5.7 | | | | 30,000 | | | | 0.5 | % | | | 2,204,095 | | | | 1.0 | % |
U.S. Department of Agriculture ("USDA") | | | 2.8 | | | | 73,031 | | | | 1.1 | % | | | 2,124,253 | | | | 1.0 | % |
National Park Service ("NPS") | | | 4.5 | | | | 62,772 | | | | 1.0 | % | | | 1,767,747 | | | | 0.8 | % |
U.S. Coast Guard ("USCG") | | | 8.0 | | | | 59,547 | | | | 0.9 | % | | | 1,599,477 | | | | 0.7 | % |
U.S. Army Corps of Engineers ("ACOE") | | | 5.1 | | | | 39,320 | | | | 0.6 | % | | | 1,486,181 | | | | 0.7 | % |
Small Business Administration ("SBA") | | | 2.3 | | | | 37,253 | | | | 0.6 | % | | | 1,155,029 | | | | 0.5 | % |
National Labor Relations Board ("NLRB") | | | 5.7 | | | | 36,640 | | | | 0.6 | % | | | 1,085,473 | | | | 0.5 | % |
National Oceanic and Atmospheric Administration ("NOAA") | | | 1.1 | | | | 25,612 | | | | 0.4 | % | | | 830,118 | | | | 0.4 | % |
Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) | | | 2.2 | | | | 21,342 | | | | 0.3 | % | | | 762,420 | | | | 0.4 | % |
17
| |
Tenants (Cont.) (As of December 31, 2019, unaudited) |
|
|
Tenant | | 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 (Cont.) | | | | | | | | | | | | | | | | | | | | |
General Services Administration - Other | | | 3.9 | | | | 17,235 | | | | 0.3 | % | | | 561,790 | | | | 0.3 | % |
Bureau of Indian Affairs ("BIA") | | | 3.6 | | | | 6,477 | | | | 0.1 | % | | | 217,628 | | | | 0.1 | % |
U.S. Attorney Office ("USAO") | | | 4.1 | | | | 6,408 | | | | 0.1 | % | | | 143,976 | | | | 0.1 | % |
U.S. Marshals Service ("USMS") | | | 7.1 | | | | 1,054 | | | | 0.0 | % | | | 47,533 | | | | 0.0 | % |
Department of Labor ("DOL") | | | 4.1 | | | | 1,004 | | | | 0.0 | % | | | 22,556 | | | | 0.0 | % |
U.S. Probation Office ("USPO") | | | 4.1 | | | | 452 | | | | 0.0 | % | | | 10,163 | | | | 0.0 | % |
Subtotal | | | 7.7 | | | | 6,172,687 | | | | 95.9 | % | | $ | 213,660,021 | | | | 98.3 | % |
| | | | | | | | | | | | | | | | | | | | |
Private Tenants | | | | | | | | | | | | | | | | | | | | |
Other Private Tenants | | | 2.3 | | | | 50,794 | | | | 0.8 | % | | $ | 1,445,898 | | | | 0.7 | % |
Providence Health & Services | | | 0.7 | | | | 21,643 | | | | 0.3 | % | | | 639,775 | | | | 0.3 | % |
We Are Sharing Hope SC | | | 1.8 | | | | 21,609 | | | | 0.3 | % | | | 618,203 | | | | 0.3 | % |
United Technologies (Pratt & Whitney) | | | 4.0 | | | | 105,641 | | | | 1.6 | % | | | 543,046 | | | | 0.2 | % |
Lummus Corporation | | | 8.6 | | | | 70,078 | | | | 1.1 | % | | | 409,602 | | | | 0.2 | % |
Subtotal | | | 4.4 | | | | 269,765 | | | | 4.1 | % | | $ | 3,656,524 | | | | 1.7 | % |
| | | | | | | | | | | | | | | | | | | | |
Total / Weighted Average | | | 7.5 | | | | 6,442,452 | | | | 100.0 | % | | $ | 217,316,545 | | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | |
(1)Weighted based on leased square feet.
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Lease Expirations (As of December 31, 2019, unaudited) |
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|
Year of Lease Expiration | | Number of Leases Expiring | | | Square Footage Expiring | | | Percentage of Total Square Footage Expiring | | | Annualized Lease Income Expiring | | | Percentage of Total Annualized Lease Income Expiring | | | Annualized Lease Income per Leased Square Foot Expiring | |
2019 | | 1 | | | | 50,888 | | | | 0.8 | % | | $ | 1,818,134 | | | | 0.8 | % | | $ | 35.73 | |
2020 | | 18 | | | | 762,983 | | | | 11.8 | % | | | 25,972,761 | | | | 12.0 | % | | | 34.04 | |
2021 | | 14 | | | | 953,728 | | | | 14.8 | % | | | 28,144,498 | | | | 13.0 | % | | | 29.51 | |
2022 | | 7 | | | | 124,523 | | | | 1.9 | % | | | 4,765,548 | | | | 2.2 | % | | | 38.27 | |
2023 | | 10 | | | | 291,498 | | | | 4.5 | % | | | 8,194,610 | | | | 3.8 | % | | | 28.11 | |
2024 | | 10 | | | | 727,374 | | | | 11.3 | % | | | 22,841,955 | | | | 10.5 | % | | | 31.40 | |
2025 | | 7 | | | | 190,725 | | | | 3.0 | % | | | 7,813,918 | | | | 3.6 | % | | | 40.97 | |
2026 | | 3 | | | | 157,011 | | | | 2.4 | % | | | 4,807,312 | | | | 2.2 | % | | | 30.62 | |
2027 | | 6 | | | | 495,529 | | | | 7.7 | % | | | 17,432,545 | | | | 8.0 | % | | | 35.18 | |
2028 | | 3 | | | | 506,815 | | | | 7.9 | % | | | 10,127,779 | | | | 4.7 | % | | | 19.98 | |
2029 | | 4 | | | | 417,682 | | | | 6.5 | % | | | 10,996,559 | | | | 5.1 | % | | | 26.33 | |
Thereafter | | 18 | | | | 1,763,696 | | | | 27.4 | % | | | 74,400,926 | | | | 34.1 | % | | | 42.18 | |
Total / Weighted Average | | 101 | | | | 6,442,452 | | | | 100.0 | % | | $ | 217,316,545 | | | | 100.0 | % | | $ | 33.73 | |
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Summary of Re/Development Projects (As of December 31, 2019, unaudited, in thousands, except square feet) |
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Projects Under Construction(1) | |
Property Name | | Location | | Property Type | | Total Rentable Square Feet | | | Percentage Leased | | | Lease Term | | Anticipated Total Cost | | | Cost to Date | | | Anticipated Lump-Sum Reimbursement(2) | | | Anticipated Completion Date | | Anticipated Lease Commencement | |
FDA - Lenexa | | Lenexa, KS | | Laboratory | | | 59,690 | | | 100% | | | 20-Year | | $ | 67,283 | | | $ | 41,291 | | | $ | 41,257 | | | 4Q 2020 | | 4Q 2020 | |
Total | | | | | | | 59,690 | | | | | | | | | $ | 67,283 | | | $ | 41,291 | | | $ | 41,257 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Projects in Design(3) | | | | | | | | | | |
Property Name | | Location | | Property Type | | Total Estimated Rentable Square Feet | | | Percentage Leased | | | Lease Term | | Anticipated Completion Date | | | Anticipated Lease Commencement | | | | | | | | | | |
FDA - Atlanta | | Atlanta, GA | | Laboratory | | | 162,000 | | | 100% | | | 20-Year | | 4Q 2022 | | | 4Q 2022 | | | | | | | | | | |
Total | | | | | | | 162,000 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1)Includes properties under construction for which design is complete.
(2)Includes reimbursement of lump-sum tenant improvement costs and development fees.
(3)Includes projects in the design phase for which project scope is not fully determined.
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