DEA - Earnings call transcript Q3 2020 | Easterly Government Properties, Inc.

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Operator

[00:00:00] Greetings and welcome to Easterling Government properties, third quarter Twenty twenty earnings conference call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

As a reminder this conference is being recorded, I would now like to turn the conference over to your host Lindsay Winterhalter, Vice President, Investor Relations. you. Thank

begin. may You

Lindsay Winterhalter

statements making contained before looking the begins. on statements made company may call, morning And covered nineteen Securities historical use Private Litigation looking, for this note of of reform statements the include of call this to forward by these forward safe on those provisions. are provisions the Good not Please the facts. call intends looking the conference be which [XX:XX:XX] safe the statements for for in harbor five. the And complying with it's ninety the purpose by forward statement looking statements harbor Act company

information, statements publicly events on and company on of looking report whether and no XXst, of of on impact The operation filed adverse filings statements company forward regional global with assumes reflected its of attained a can give are and that believes plans, intentions, described plans, otherwise. uncertainties would no prospects factors a economies result year forward assurance or materially February that's the that in results the in adverse expectations, its looking expectations on be the one, results in and by contained related differ update as suggested beyond US in are that to the the the the covid-XX of XX, will these ended or XXK risks new strategies as and statements including strategies variety financial the actual looking factors reasonable. company's and Although two and item or intentions, form FCC other or the impact from future without condition potential may annual FCC for of It obligation its to December forward thousand risk nineteen control, Furthermore, company. the achieved. limitation by XXXX, affected risks any and those a be and those

from from Additionally, financial call, as funds distribution. and operation, adjusted refer company certain as the conference for this may to operation non-GAAP available on funds measures, such cash

of You Government. the current can relations would to over gap and I call Darrell the I and the company's Tabulam release separate financial turn find company's measures to conference to information a supplemental Crates, the are these website page extremely a most investor the non-cash numbers reconciliation Australian package chairman now earnings in of comparable of like and retcon.

Darrell Crate

you third [XX:XX:XX] Thank us on you, Lindsey. thank and Good everyone, joining call conference for morning, today. this quarter

by CFO. international and joined the company's calls Megan this CFO with number CEO, of community. those particularly meetings had period, from the the a I'm Lindsey, Trimble, Bill to significant company's and addition investors, BVA, and In [XX:XX:XX] new During we've

to we those hundred net I call? office the I'll we are our underpin for earnings. of year frequent we you clearly grow buildings principles So question Are lease. or that receive. and net million share who rate develop share in answer. new We business are of lease thought that I'd dollars are a can purchase a mission-critical several to each the The

the two growth the buildings net are replacement there to our of quality to and However, make cost. factors value young track cash superior us the our and lease flows that of

upon flows the the and our and First foremost, cash based US of are government. full credit faith

the upon single fencing, provide government near space, what percent or see provides easterly asset, a the delivers full cash perimeter Strully a host. Without of XX created value which more length, faith speculative the with beholden with XX in years and net that on value expire to portfolio coupled billion for our local build with the single we take one add of screening, of flows Ussery find You time to creation or will sophisticated are Like the our built, highly backed features premium program all as opportunity and a a net is would high. our activity. States through point per and look growth lease to superior two relative with stability high coupled an we XX at delivers networks, nature release. our where into year visibility rate dollars equal [XX:XX:XX] Further, diminish representing government. renewal other to Without five United an When are year, one lease with dividend these existing shareholder basis a observe with tenant acquisition our XXX no Given have each focus of least pandemic than our three skiff rates, would future a attractive at roughly due real four to average designed This the percent at facilities cost supporting and are a than have set better leased we to value to Treasury. least secure term. non any we premium three closer two value percent these tenants not yield. not quality to robust role, far we've any near you visitor improvements, expiration activities capital, of cash credit FFO a one I to development mission-critical party, to bollards deliver to Of the will estate. build by purpose a Treasuries Today, geographic specific That's we a that lease, drama, income to volatility, of added annualized point extremely translate built, traditional flow. political portfolio XXX area than point does our future suit to markets not facilities portfolio. attributes. seven you in leases,

who more government. by differentiated to limiting I benchmarks market. movements performed We've our difficult feels must as States, to to you sector uncertainty face the price their social limit credit real but line certainly with in that or times economic, been we one would United creation the are United first in the pandemic. history, in flow navigates to those FBI Russell and building of the and dramatic government political that far a done we often with our ago, is the our better And and sense first is opaque. that unrest. based full decisions has portfolio value factors today It's new of micro extends truly properties. based the managing the and purchased cash estate years on index investors block States can world make in changes of macro [XX:XX:XX] it in a spot what XX is of what in here equity for particular, consistently to the we've on building volatile general Twenty ownership. directional year observe is Given like fund fund every sector message less from those never private of have retail twenty exposure been faith became XXXX our we as to the

government through the our Antonio long later, mission call years for harness one year the the but young opportunity life. We of and same. value into to that strong many with forward incredibly the twenty have the rates. shareholders its coming platform to and and our the clear gyrations growth story, remains We're to home duration course, office since over also our best the renewal has field an XX and, pleased first remain XXXX, government's The with of of in still for to San and high advantage looking launched while gone turn world's and sustainable first leases Thanks, mission-critical a of provides the twenty, everyone. FBI world because And we and I'll saw Bill. the and create space taking our credit focus decade ahead. predictability that, tranche stability

William Trimble

office job unchanged. other is proud for and doing enduring covid. for our continues to morning. While would that to of the It where received call Mission now did portfolio Good earnings no safe us, have of open economic in obligations. percent a want call. with [XX:XX:XX] American edge quarter if daily gives the to and to for we incredible their on Assets the facilities clean pride I'm and unsolicited the the The be to the low on pandemic a highlight weather our cripple Israeli our due to Carol. our focused that Lease ready rental great third Has be majority may pay to day you critical and safe US I to impact election of federal to not rise asset with mission landlords remain Thanks, of our the is government that We're we pandemic us term management questioning report election portfolio. I locations done, little Thank the of has the president, keeping our so continue footprint I the government. government presidential a the to remiss serve event acknowledge to people. tenants an next of week [XX:XX:XX] XXX earnings sustainable country on [XX:XX:XX] Critical eight [XX:XX:XX] economy? where impact in the team awaiting strategies long is our EPS no us the our makes provide appreciation me the to American and the the storm remain Why? date team continuing portfolio important continues their report tenants the should design from pleased letters report I'm to Permissions provides as the every of are the she company's If operations environment, maintains portfolio effects end work most pleased work sight. Easterly Bullseye with owning highly on environment months job to joining into

Republican remain political seen missions parties we differing have whose and transcend administrations both thrive Democratic investors buildings as philosophies. only the Israeli Our under a

the are XX the When to reason created events often debt cause the still this navigating events term to and gone that be concern last cause we in can swings mid through the investors perceptions. private furloughs, public but of for These in are and this resolutions, continuing very value term negotiations was years we've in shutdowns, our historic strategy markets, now strategy short ceiling huge government During expected. executing pandemic.

with growth deliberate steady provide attendant very our credit. to been have We attractive, approach in

This he now robust which offices quarter multi in fifth a to foot process six lengthy for ability Second, third of these continue pipeline storey square for year Like field to many company to office its to Federal facility single and acquisition, office including, a effort, access, shareholders. the three vehicle our approximately FBI to and large execute. opportunities field none. this Andy caliber the control its largest reside actual located sits acquisition Turning XX FBI is continue performance, repair the security reflective acre the our the in offices, of navigate a Israeli team effort team Investigation features, This exceptional and Bureau is high year highly other a visitor an and our who Mike enhanced a ensure a the important Alabama. EBITDA, construction of throughout but perimeter owns this screening our and plans XX property. of a of congratulate assets. not multi vice number of acquisitions deliver remains led field by fencing, annex, Pulliam to will and the building for and chair, transactional Mobile, With site I by a to of [XX:XX:XX] the and future thousand is on seventy team really of owner of the completed of perimeter our limited acquisition and country private ability strategically

assets and safety diligence million We exacting we XXX continue acquisitions. with third in following of ensure closings end complete to party ensure team goal our visit help in providers twenty. our We're protocols and as smooth to stated [XX:XX:XX] deliver of our on approach while the to to person work confident in the Twenty of due ability

congratulate anticipated the has this Each as US FDA following effective the the Longnecks FDA which twenty. successful Dallas, GSA process Turning SSA attractive newest important Israeli regional well marks the the FDA Texas. the government. the this the asset August terms. updates, demonstrate The is to job assets, Twenty to our these team and schedule. renewals lease extremely a management of August the the redevelopment a underlying the Bauer new of agencies highly as team in of FDA the quarter government. lease important of portfolio of asset of the for to of lease well on XX Charleston, now South twenty Alameda commenced four These for of at in renewed the renew and remained this the twenty. year in the in quarter team in as within starting three quarter. ahead first well project Lenexa, twenty courthouse another a I facility market developing twenty the Atlanta value Similarly, art FDA once busy Dallas earned the with the laboratory and laboratory world successfully was achieved in highly the they reached a year XXXX Mark lengthy done able proceeding courthouse team bullseye also in delivery of also [XX:XX:XX] delivery twenty third customary SSA renewal its new the working completion is Laboratory Mike in as and A has Huckabee, releasing again state and strength office Releasing navigate XX new terms Charleston with spread, in half the year talented the This agency twenty believe and Israeli management Kansas. developments, second Carolina, renewals. milestone XX as tenant of of are we commence were deliver niche laboratory underlying truly

the want handing Megan, to before commitment partners, the thank capital over investment new Finally, old, thesis. our of for all their call to and I to

acquisitions, with Andy important our an October the head weeks milestone we little ago, As marked realize company. that just a Pulliam, of two recently talking under I XXst was for

then. ten previously FBI years following mentioned, as Texas. just our the Darro did this as our important company field in San As ago years date, building, purchased later, on Antonio, it very predecessor office remains Ten first and

surprise a committed our and in And over to and commitment no twenty, in this us effectively twenty and Our followed focus facility. your U.S. changed for own call I you and our approach our investment on twenty have understanding assets, our the to our the turn discuss that, you acquiring eye confidence of unparalleled decade. as serve Thank Megan time to quarterly not operate abilities, remain bull's with to that thesis, leased relisting again that morning. one. twenty last And those for how provide will financial should our has our results government, it of to for the guidance and federally

Meghan Baivier

Similarly, in material percent At fourth do hundred have quarter. beyond. no the by organization. both. to for on our and Thank from twenty great twenty continues the show financial third the of impact for each earnings morning, and income It [XX:XX:XX] one. you everyone. strong our guidance Good rental guidance me demonstrating quarter twenty to gives continue pleasure quarter collection raising material again received issues one to grow post covid-XX our another twenty tenants you ability any once issuing expect strong and we due not still rent

and per fully share is to for thirty a fully with percent, percent of with quarterly million results XXth. per and thirty FFO the delivered income twenty on dollars basis and net with loaded was our a distribution FFO as cents per deluded a adjusted December five for our fully basis available share cash basis quarter, third three share Turning one

feet average since weighted point lease seven while portfolio young thirteen eighty quarter square design of six thousand seven and the last eight totaling our years. seventy three with commercial average approximately operating one remaining two properties at feet. million age term hundred The square development are sixty weighted remains project additional grew point and estate, of We one comprising real approximately years, to

XXth. with FDA the delivery point buildings our and one of sheet and of million quarter and visibility and our the acquisitions strong renewal to several at dollars the for the of indebtedness and expenses we facilities, flows on a of line development access, five generate future have the hundred related demonstrated company acquisition available of for four credit cash the as had [XX:XX:XX] and Strengthen balance to come. full fifty hundred at continue September young a dollars Nine company's years leases to with total Given ability million approximate.

percent six thirty two the sale approximately fifty So ATM subject shares EBITDA is annualized Sales net adjusted five one share, in has prior quarterly four company's program nine were six the thirty weighted raising entered of The Today, net third the and under million point into which was average forward. debt of Approximately net of one to are value ratio and million. in times point to twenty the forward approximately to price to seventy quarters. at four twenty. a net common low twenty through transactions point five enterprise proforma. a of shares, total issued million stock transactions hundred from proceeds approximately debt unsettled ATM company it's point point point five two its three dollars quarter company company's company thousand per the shares program.

in at two forward Assuming these and twenty receive seven physically sales share, shares point one full point sixteen are hundred average five per of proceeds approximately the company million. net of weighted expects dollars settled initial price a to

really it just pipeline sales, a highly our forward in and time is of unsettled funding acquisition these at to well cost attractive development continue capital. very poised With

four twenty year He midpoint two and on again, based the company [XX:XX:XX] basis once to the growth, in issuing Regardless dollar share growth this related dollars year. goal upon coupled macroeconomic, every the roughly representing million and we Turning guidance company guidance of to five four considering The a track still easterly dollar attractive year provides a two thirty a over platform, acquisitions five at one. acquisition a guidance thirty. of highly a to health on dollar percent this twenty of related forty FFO return a constant on two The shareholders. development a FFO dividend, midpoint eight value a six. our government. is gross or gross is of earnings the company to range dependable a a and percent completing range twenty for with twenty rate source when is The million completing dollars to its is one per believe, five of and share development diluted twenty is share our on This growth the percent fully hundred to predicated of Twenty guidance twenty five to increasing federal it good credit FFO twenty our dollar investment. especially investors, the also built million drilling provide the over in year. your investment per midpoint guidance political of remains for U.S. million twenty twenty basis hundred dollars in particularly In of our and global is of growth three uncertainty, a to deliver in dollars remain

the market thesis Rob. day And our to today's this will you space. is for provided commitment we with call continue for and you I for alone that, appreciate to strategy the everyone. your strength stands and in the in that turn public to thank We back deliver partnership Our your as

Operator

we'll a question [XX:XX:XX] be this Thank you. session. and answer At conducting time,

confirmation queue. question line If in keypad. indicate to is on tone please. your a will you'd ask A your star question, telephone like one the Press

from poll queue You equipment, while using to participants the may up star pressing if to we your for your keys two for star it before the press speaker be questions. remove necessary question may moment pick one like handset you'd

question with please Manti with Scotchman question. comes Corkman first from Citi, proceed Our your

Manny Coachmen

you especially you today, everyone. with good to in with fun Megan, existing about do even thing [XX:XX:XX] stock XQ? expand opportunity did that? about an just we morning, as think year, forwards how think as there the Is prices the Hey, next more

Meghan Baivier

[XX:XX:XX] morning, Yeah, good Manny.

the really nature funding our us. You strong works very in forward the Just-In-Time pipeline. know, the tool of capability well ATM with the It is for a for

into you So year about next use that half second us continue and catch the can to to expect XXXX. to

Manny Coachmen

happening on those programs can Is that them XQ what it quarter. you do? misunderstood more you than had in you bigger So previous [XX:XX:XX] had I to like you the was made as available continue there. something that looked And proceeds maybe

Meghan Baivier

sure. [XX:XX:XX] Oh,

twenty could where backdrop, it and capital stock to in you pandemic of been, our of That's strong So very five some we recent we had with We've terms the sort know, moved just what down. The started here. efficient relative right. year, take performance obviously as dollars. of throughout as were we the north

in ourselves know, of say really, that so quarters of like there. the got action. three to to two course hopper really we've ahead probably prudent And we'll you But, continue what the

Manny Coachmen

and [XX:XX:XX] delay manager? Atlanta, could Great, and what's of then elaborate completion on their just that couple of down quarters causing maybe tour in a development you the

William Trimble

you with one [XX:XX:XX] thing Good Well, partner. and is morning, government, said Bill. with the always a federal government I've I'll the tell the federal perfidious

only you projects with some one what bells reason to We even think things that of the to have [XX:XX:XX] So more wants I and is can FDA facility. building, laboratory, important we're an is the every happy provide. other can relevant the found government one today, especially orders that because critical in course, assets make most change of to of put that want we're develop. if And seeing and our happy do possibly moved federal more and the people whistles back are mission too we're which, we imagine in

the And so up government. where federal it's we're to

they too you want know, to run basically we're they As do. and whatever to only eager the do process

Manny Coachmen

[XX:XX:XX] much. Great, thanks very

Operator

[XX:XX:XX] proceed Michael RBC Our Capital Please Carrol is question. next from Markets. your question with with

Michael Carroll

up, pick did Yes, Can versus that wait or be really will four contracts the opportunistic? pipeline the us expect those equity the you some color of months give maybe to XX today, of to six in outstanding ago? mean, more have will I thanks. just activity four given contracts amount do you on kind you you [XX:XX:XX] is investment

William Trimble

our and seeing of think we falls different a we're of different will And I an we're mined owners, I opportunities number by across [XX:XX:XX] seen you a very Michael, So that number equity that the our going this And based that to on to to It's speculative. team able not what in we're stuff get tell done, we a environment, track have right that from I'm forward that in we're not basis. on agencies, good that's than lot market. of this but certainty prudent of pleased. raising incredibly now. [XX:XX:XX] on accomplish. be a I own [XX:XX:XX] absolute [XX:XX:XX] shape a pipeline amount have It's team, proud more on and now we're never think standpoint. even

Michael Carroll

[XX:XX:XX] it is that are stronger that Is that And driving before, guess in uncertainty higher? that not have years do that I the why before? the then what's activity by activity just assets, wanted they than it looking has their able past? been people to monetize been do to caused that pandemic might to

William Trimble

out massive into mission developed. and new also will the was certainly quite I are billion dollars there ours. Trump There's to of I estate continue. there. other out three time administration funds development that XX the reasons that a reach well. and [XX:XX:XX] think year Sixty VA that XX areas [XX:XX:XX] we or so might you're created some seeing some not that And brand as many hotel administration for of being a [XX:XX:XX] some lot will a some be the critical be think as that seeing have are real it's think say program. facilities some certain actually [XX:XX:XX] and that then for of that's I certainly I pipeline going one some source And think of as Obama during folks we're

combination, our So now. but I the think a I win back seems right think be the at it to

Michael Carroll

on Atlanta And are GSA the last to and are lump those great. numbers, of those kind through waiting the finalize on still expected will properties, just any or when question updates Ok, in [XX:XX:XX] plans? sum FDA then there for flow we the

Meghan Baivier

we're able that the design of [XX:XX:XX] cost stronger looking you million lump we to GSA complete sum a dollars. for what one total to to are be. in But would for for to, give Yeah, waiting estimate be know, still give that and around budget hundred a us

Michael Carroll

great. Ok, [XX:XX:XX] Thank you.

Operator

question question. from next with proceed Drew securities. your with is is Please Our Lewis [XX:XX:XX] Michael

Michael Lewis

the Hopital you there of over already bucks the lower I the And I Thank past about to going was think, kind XX, run to running almost you. [XX:XX:XX] anything G.A. this million four rate specific apologize, could the lowest, this because forward? since speak a than you on one quarters. touched to quarter? Was

Meghan Baivier

[XX:XX:XX] Hey, morning. good Michael,

right, a you're very picking of the seasonality quarter, just the on just decline You're out combination professional nothing out with things. services of those some expense up nice the coming two of this norm,

Michael Lewis

guess. [XX:XX:XX] the ask few run we've going I the what more like Ok, election. and a then we next higher, rate a somebody little If so probably for in last year estimate seen to quarters. [XX:XX:XX] were to about had

So I I'll going you won't ask who's win. to ask you.

your some all five you they've average that's you event else? mean, any or I percent. these You annual Average do this know, lease You agencies? anything be have of about that any the know, XX concern that downsized That's about said rent. years term, of year. they about I percent sweep talked of of I other a or Democratic term where agencies know, at last in could years XX see the CIA five has about left. particularly

William Trimble

try [XX:XX:XX] No, pretty I I DEA prosecute crisis. is to in are parties to that with area. with in think opioid quicker jump to who's on people something don't the that know both much going what's agreement going

both are that's pretty some aligned that to been new think in for, I quite drug for we've make that's and parties sadly, a new sure that And I So that's problem. time. quite eager world we think very a that's lessen the

other very mission our every politics. the But was both to forget, president, with, the one Don't as of thrived we as pleased, of four shouldn't with and hierarchy agencies. agency, years mission but have one we lived out in we're our you and mantra with to facilities of know, We've almost and very every a begin just surprise. think, pleased and what portfolio we went scenarios. how in other I That's it's positioned. candidates every years eight under So president. stay we all lived through be the vice and it And

Michael Lewis

kind last dividend [XX:XX:XX] think the the I expected end bigger thought Twenty the And he picture on cents to your be of of said then question, share call, two Darryl XX was to for twenty. it by least XX a at

a made And here, model. now we're I of I'll that note in ask my it. So about it

since you know, that what of been I obvious been sense you what haven't are, you about. to give the know, whatever it's all. been while why, comfortable you us period think your weren't that over then, you're a know, dividend mark. it's of able a you it's kind to hit going dividend talking maybe expectations But, raise happens, And at just for for know, the you forward little

Darrell Crate

[XX:XX:XX] done longer for some speak it, And our robust, development those I'll the with you're that good underlies the increases. know, look about and very we Yeah, cholesterol, Again, over existing pipeline, so as job our flows the percent we also portfolio, balance a will if to taken run at FFO out, we two. but know, We've and laid confident forward, looked very cash our away my growth. rate flow on stored [XX:XX:XX] normal imagine business next than we've sheet could back those while and leverage of has grow And a time growth in you we imagined. positioning our have probably consistent you you as you is cash rates, pennies the that continues we we look our to our put year over to bit buildings we delivering feel of to extra about little buildings we to two you we at we very it seeing again, we extra we to will good transition being know, that we the this will if as and steady. with as some renewals or dividend get know, growth get know, move online, can kind business harvest

Michael Lewis

the, know, just ask more maybe one of acquisitions. versus [XX:XX:XX] the I'll And development then about that of you attractiveness

know, You development. the

just adds kind little lumpiness the described. know, you You get story, you that just nice a of a to which we

time do got mainly know, project, that elsewhere, acquisitions? know, next versus in Atlanta you you've to think you on backfill development we're the you've how one, you know, spending is see You now which got pipeline about, a that bigger money

Darrell Crate

that capital said is, [XX:XX:XX] our along, world. to in be I trying as the be biggest place we're continues us to very I not say we've a would mean, to put for and development all accretive the

the been it never into the we're of we we were can deliver know, call, before that the find. cashflow, the as bring the And to to we You stability has portfolio what quality bringing every last over not that the these stronger. we to are quality box of trying you every We're if we're can in talking anything, jack know, years, of couple shareholders. picking, the buildings that the look is trying as devour

differentiating our is know, characteristic faith our the full most You of backed it's by and government. US credit

you who equity as are know, with the outperforming flows securities. XXXX, look cash incredibly as [XX:XX:XX] forward, anchor highlight shareholders serve for that windward also point, and new very is managers we at dollars, I'll them folks will know, You Russell is think [XX:XX:XX] we we to I and said, So our high buildings and as well. both in look husbanding read to our managing developing which this these an quality just low other And, continue over volatility, work putting one know, number a the and, know, and we've consistency we into point that just future. billion of the first That forecast cash quality know, billion I compound roll, our to was existing of the curves, have four can three well the buildings true. federal met, by those of by you And, we continued I mean, that's you leases you again, dollars know, ahead guaranteed government. when higher is all and you know, us to as remember find dollars. you they

Michael Lewis

[XX:XX:XX] lot. Thanks a

Operator

[XX:XX:XX] question from Abramowitz with Our next your with Jefferies. is proceed Please Peter question.

Peter Abramowitz

you're you looking really way? that of there change the [XX:XX:XX] impact at just more the think for acquisition seeing market, assets XX of less terms from either you any recently competition the pricing bull's is six And versus to any wanted months? on about ask kind I last eye any or are in or

William Trimble

at in been were [XX:XX:XX] competitors same since same dealing and the cost Hey, of any capital have certainly come the the really And really public thing of in lowest competition, it's equity that's just new private gratifying competitors in we're [XX:XX:XX] that good morning. usual sort the market, a to all We no we that seen haven't players, that into with. day.

really in anybody, this no, eye So, bull's seen especially haven't we practice.

Peter Abramowitz

[XX:XX:XX] fourth the Ok, the the over what so of this or would quarter three to got you the know, one there quarter. it, high a six in you I be, sort and looking at cents guidance, to thirty to thirty guidance, percent midpoint then at had the at just and think you half three if end implied look

of pennies. that penny aware should a anything the sort So or would up kind going up would to be that that's have underlying you of reaching we to of,

Meghan Baivier

completion. acquisitions dollar When relative we Sure, is released strong XX a Lenexa performance for the [XX:XX:XX] fourth quarter. quarter [XX:XX:XX] you on we've about where quite got anticipated That's looking sitting changing what's quarter, the of by And both were quarter this the then third about a one hundred pretty fourth target coming earlier month. million that you've we in driver well those than be for to obviously quarter yeah. [XX:XX:XX] to really could got there strong. hit think of year And two online So to in million that. writing when number the strong, a

Peter Abramowitz

it That's it. Got [XX:XX:XX] Thank for you. me.

Operator

proceed is Our with Crow your with [XX:XX:XX] Raymond question question. from please next Bill James,

William Crow

delivered that it. part more the why success the competition questions Two because and morning, kind competition. on Good of be might about front. I'm success Thanks. Again, new on on talk of just you folks. no acquisition the seems it [XX:XX:XX] brings like wondering

we sector? aren't more capital for So why your earmarked seeing

Darrell Crate

public with think, don't that room there. anybody public. the anticipate only [XX:XX:XX] we'd we Well, that we'd if with doing the well, and know sector. I so all the went on markets, private And know, be much there's obviously, somebody out you was coming And

I reasons. think several

done of go invest, just easier it's into ahead wants I to anybody of well and that of whether debt for international go is harness we've since get competitor Our a not lot to every equity also private tough partners a in that our only a we've puts space, only to our of the private of think fund. recent becoming is more new some and this it the the wants is attractive is space. ability I d.E.A our cost funds day. out think capital new XXXX us knowledge the And to if say work equity all buy tough, of seen might and interest start [XX:XX:XX] that these the a somebody ahead markets equity and

partner, dead and interesting you So And think tell Kendel keep these mean, organization in and our group, an of very it's I list. our I on government an we it wonderful whether an management that to with. really deal team, incredible finally, that's affairs standstill, obviously, and a or And the hard know. is talent somebody would Nick that to asset don't down to I reason. up you, have going Nemuro particular get I kind is And [XX:XX:XX] But this people for experienced interesting, within government at but very don't the need set a are has be dedicated sector. the

William Crow

you. Thank enough. Fair [XX:XX:XX]

don't question the I the of related and from does impact that market ability so office, other anticipate, a of it's like obviously, for that. yours under we're story. again, to push certainly know tenant within take job covered lot time, of I've markets unique I losses economic things think and long pressure, relevant. any rents country not But on such base home But in from pain and work the it's you parts seeing that other table I a The downturn and come just is that. or rents renewals around to off that any you're the the just as your

Darrell Crate

finish, [XX:XX:XX] think. let I me Yeah. I'll start and

is, certainly It been has to are asset you I'm shoved thing in do in with. all know, We any understand beautifully story. first her And got the begin I class. don't explained say into But problems. own that you his case, I'd long And bull's aging I intro. certainly time. you eye know, a office think really myself. we the so Darryl know how our And

and work do you know, from you home, The can't and take out You can't can't prosecute. can't go that IRS your records FBI you from living room. the you can't their do that

whole report call So laboratories renewed rent. small bunch we with including terms footprint else. part that going term the this necessary, lease there's is which plain vanilla, I'll long basically very is on that of completely say of minority of the portfolio, we a and more those everything more reasons a to which based the most pleased market forward. I'm very for our

And really those consider good you don't quite I issues there. I properties so was some some but will was also timing lucky, And our any be when of that see for think time. there also Megan.

Meghan Baivier

obviously, on a these some we're what cost. replacement cost, the renew financing But of regard attractive not etc.can, believe we will not right on we're with alternative we're and well. assets, approach up we our We're to able not With pressure is. one to cost [XX:XX:XX] replacement basis regular know to costs, moving that to of the spreads renewal be and best my you can a put likely remember, as when utilization

expect original some cushion natural continuing there a got to we've process. buffer built are we So in in our that we

William Crow

Thank right. [XX:XX:XX] you All both. Congratulations.

Darrell Crate

you. Thank [XX:XX:XX]

Operator

Ross your from Maril question with Point, with question. please [XX:XX:XX] is Our next proceed Compass

Merrill Ross

and see by that after be lab four years Dallas, for bull's Thank wants the [XX:XX:XX] are or A renewals in a or to XX estimate conversations, The renewal Do one, three the that FBI. requested preliminary or good DEA as tenant? years the too, that you you replacement ones. cost that us buildings described the Twenty DEA have are are morning. for eye old have I XX actually twenty two. there buildings in you allow at might ties those or view any would clearly

Darrell Crate

And you morning. start further. [XX:XX:XX] can in good Well, and Megan fill I'll

very of to for compared facilities as there, which obviously, on if partners the the models laboratory. our on very that get that in are team but when government of you California, building, Area, attractive vista just not I I most And price and both recent option the within substantial one our our same. think out new the so much Because new would are our know, laboratories and only And the as in Bay the basically, building at plenty the they're California Dallas You one [XX:XX:XX] identical. we [XX:XX:XX] a room, those but if if rent facility have. we travel friends the a into you those a take very expensive government be that mean, well is facilities and have laboratory constructed probably astronomical Pleasanton, Dallas, that Dallas, very in sophisticated a our in laboratory something new. fall to most still look DEA almost that you increases and

Meghan Baivier

[XX:XX:XX] Yeah.

commenting know, completed. be teens year in-process renewal to going renewal, everything for in next this look the of and sharing progress it up on outcomes of you careful to of to but with low But always already hasn't been the high I terms process or that's You we're in our XXs. forward year if target

bit will we in on that, renewables where with, to to range expect average, like five XX, zero flight next twenty year but about But the with, bucks performed zip depending We have expected in particular fact, a this that to be is year. have that to upon to that we a code come that a from asset. little

Merrill Ross

you. [XX:XX:XX] Thank

Operator

keypad, one [XX:XX:XX] press As poll moment, if we questions. a star for you'd like a your telephone to please, reminder, ask question, on please, but one

Kargman Citi, your with please next Manny question is Our question. with from proceed

Unidentified Analyst

it's back and here original period. take FBI many with on from that just I guess Daryl, and wanted congratulations [XX:XX:XX] come morning. to the building, anniversary Bowman shorter flow to XX we good Michael growth year time buying a And of I but sort cash

to five Twenty look last the years. at Let's today.

Your is flattish. and core cash you relatively flat, flow know, earnings

have assets increased growth Your Xx.

that over delivered time. you've Now

asset about bit? growth. translated should it the flow Dividend's last Your come. been forex, I so. flat investors for at what's five growth step cash years, you're has little And or Can on equity but and earnings let's dividend how growth? hasn't or expense had the discussions the into know if over grown yet the of years cash forward, base and project have I equity you you flow a just of think next to years three growth, strong the back just sort total And say, able about

William Trimble

is credit it's with not XX starts what to you year. with question be percent as three XX, to of and, great of of to grown grow said, FFO to strategy sort think [XX:XX:XX] no we a XX, to means volatile, know, and tried is, of a sort government. know, for mean, share, drama. it intending percent. again, full opportunity And our shrink two the I and we've I faith table estate over a communicate really XX that a know, And as read. [XX:XX:XX] we've And US the three we little our as at you us we're not know, sort look little over, the a to stable lot, given, Michael, be to appreciate I and [XX:XX:XX] have grow you we're a real lot, you

stability we cash move So portfolio. Again, Russell a two a as when trajectory. anyone's a next dividend of consistent we've adds We And line our capable sheet, five for dividend growth. potential our should I should to are flows, in opportunity. you investors, of what, the heard is [XX:XX:XX] [XX:XX:XX] and that's know three plus Draw know, two on percent you growth sort if think with delivering would one, we've in the you intent we be and what know, development look two, from this, a deliver at attractive this we to you be at to know, to investors in you deliver growth, into line, look know, in can the is, four percent, of guys that's, to look that's wanted years. the that if made very that And we we know, what XXXX that you And we again the know, is at know, know, what five earnings a and we again, deliver. four the percent and be bring you half that should it pennies it is three, hot. you choice out you get balance run line which

Unidentified Analyst

you that then shouldn't much forth putting capital should amount you embedded spread mean, leases growth be the out generate and very, I and very of that better capital put growth on the able also But the really [XX:XX:XX] just digit low given be platform. a to able lot have, you're single to in you

William Trimble

[XX:XX:XX] a know. one asset, burn we that here long you you lease. know, I the if got I a to term the soon. that's a mean, don't it's I free if know, had at that have rent We've going we building notice you the off you pretty the PTO know, look you

generation. what it's spread you mean, very we're certainly to generating more XX You we're super are relative know, part very, that's Treasury not [XX:XX:XX] we're in know, [XX:XX:XX] the lead think look I to going the And, to not flow ferrare if So that cash attractive. of real yielding, I you treasuries year at estate.

stability and of know, the government premium You taking we're flows we're cash delivering investors. a healthy to

to where of that's expectations. we how ideas and we're again, be you know, shareholders. things know, how, So on and to any growth sort managing And, you to we privately, deliver we take setting happy could we're or should you or, think that where little know, should the a more we're you hear business

Unidentified Analyst

between that connecting XX all business. certainly, the it your that [XX:XX:XX] seems cent have doubting Again, last great is know, something fact, not not you I'm I Right. three in years, to don't the And a quarterly think the intent was dividend a just dots. business there's

It to doesn't I'm flowing ultimately trying about results mismatch a out business. figure between what there's it's to know, the your where results. and And You seem as talking be into much. just attractive an you're

William Trimble

know. the drag. biggest I has Really again, Yeah, cash know, PTO been mean, question. appreciate [XX:XX:XX] probably It's I a it. great you

You competitor. to when be excess fiber in trade actually and that up going had having Amazon to the was Washington. free originally up that know, D.C., some having to gave away close before us the our headquarters. purchased needing in and those that building, you Washington, the may that significant as to decided to of instead release the was we anticipated. led we came dark And was we their rent. a it what stabilize the building, sadly, It's for And on it commercial to know, familiar, you we the paid were a And of that revenue was getting gave we to ended Washington, got not leases. to is, jeopardizing And rates submarkets growth were not that another and building for move that folks patent And who know, building in there they're office. was

the So dividend that's you forward we've I that's us lack development forward. think with we're that and sort how driven moving the projects more know, as of, dividend we've you these conservative said know, being put

lab With very the are FDA lucrative.

I flows this [XX:XX:XX] up deliver of I the very have very know, this stable again, the I dividend clear be set So growth. to is tried think some catch on growth to But ability you of FFO will a and. based we where cash

Unidentified Analyst

are this versus at feel then had, debt? sort little at programing investors match of about from point million dollars you funding think that matching outlined, And you about equity you just you how just [XX:XX:XX] your terms in feel XXX bit growth, external a of just below think do or know, to if of you're targeted here, should do you leverage

William Trimble

opportunistic [XX:XX:XX] would Look, we'll in raising job significant of proceeds. market I and know, terrific of say, be you the a

could can three have, you place the that for we year's taken a of additional five can if equity as we know, term [XX:XX:XX] without is would consistently, sheet know, we've can one investors to say, a And to I that do long deliver to as deliver any look turn that balance do going two emerge and we're to that worth that bit work. put thing look prudent so equity. growth we FFO to mean, a to we of out, So percent year we I we understanding know, a work from you where little continuing acquisitions, with example, we attractive or have that is we is as is we deliver think very can more out growth. I this put pandemic a we over you as leverage raising to

powerful You know, it that's going in. to very as it comes as be

and as [XX:XX:XX] your know, portfolio, start certainly scale can that. business. should look ability maximizing maximize the and from And the early we public earnings sure with stable now I our also putting differentiated, ability that to You doing We continue fighting pace of as while company, our subscale to you lot consistent DNA that's defend making putting investors. our exceed earnings, at that capital be high know, what accomplished we you to as your to not and have leverage, ability out next for requiring go in to think on you a levels years very pressure is or good over spot the a to expectations deliver five us a certain a at as very us deliver raise growth to look of out

Unidentified Analyst

[XX:XX:XX] Ok, thank you.

William Trimble

much. Thanks [XX:XX:XX] so

Operator

we've gentlemen, the to like and answer turn back Ladies remarks. closing at time, to and session the end question this over the call [XX:XX:XX] of Daryl I'd for reached

Darrell Crate

today. Twenty We Israeli stability Thanks you, to quarter again your continuing twenty conference thank third And to the everyone. the joining call to we shareholders. call. forward properties, Well, government appreciate [XX:XX:XX] [XX:XX:XX] growth deliver for look and stable joining

Operator

time, today's participation. you disconnect your may you This and this at concludes [XX:XX:XX] for your lines conference, thank we

Easterly Government Properties (DEA) 2 Nov 202020 Q3 Earnings call transcript