DEA - Earnings call transcript Q2 2022 | Easterly Government Properties, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to Easterly Government Properties Second Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Lindsay Winterhalter, Vice President of Investor Relations. Thank you.

You may begin.

Lindsay Winterhalter

morning. Good

which begins, on use made The this safe call forward-looking include call be statement by complying forward-looking on XXXX company note facts may company historical the conference of and statements the intends please these making the covered the considered provisions. of the statements this and Before are not forward-looking. safe forward-looking of provisions for are harbor Reform call. statements contained Litigation in those Act the to for with purpose statements the by harbor Private Securities is Statements

including, otherwise. of whether result to publicly the condition its obligation factors with in Although the its in adverse uncertainties intentions, the global adverse suggested and filed risks forward-looking on and be and for XXXX, the any beyond company assumes update or those year and report by its financial or the described filings quarter no filed impact of variety attained a future in the be the Form to on which XX, on the expectations X, U.S. assurance annual will ended forward-looking its it Furthermore, June SEC intentions, or prospects statements control. was of XXXX, forward-looking XXXX, the limitation, in the expectations, COVID-XX ended with impact The regional potential by no the February be XX, and and are and Factors reasonable, Form events information, strategies results XXXX, XX, related that a XX-K statements of SEC from will quarterly company company. strategies materially on are XA, on results the new XX-Q believes as for achieved. other affected may that Risk without differ those statements can or of operation those and report in plans, August of risks and as to actual SEC these December company's reflected Item give on economies plans, that contained

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

call a company's of You Crate, reconciliation now information can non-GAAP release Chairman and Properties. the the like Relations find Darrell earnings of GAAP measures comparable website the tabular numbers I financial ir.easterlyreit.com. current package to to these at would Investor conference of to over on company's the Easterly supplemental Government page separate the most in turn

Darrell Crate

Good morning, Bill everyone, also and and joining We thank and in Meghan addition the to I'm company's by us Easterly quarter another strong Properties. Government quarter had for company's at second Today, call. Trimble, COO. CEO; Lindsay, you Baivier, the for the CFO conference joined

We our Like we assets continue seeing and discovery price the add entering for are of high-quality we to to a others, a mission-critical grow diversify market. period are assets. our in seems It portfolio. shift

projects and on we rates on market decline. have approach themselves market, may projects long effect marginal find continue there as We business, that are the dynamic are our in in We're optimistic medium the bid seeing will with and term. expectation completion. the They particularly to overextended have that that this developers exit buyers cap the space about our believe would these

missions. strategy believe ability have to serve assets assets on of Further, We months. positive gain a that investors. dynamics We delivers XX on our the we to over our effect during uncertainty, will concentrate results predictable these expect mission-critical both of times bullseye enduring next

up. near, critical work from home is that a will the executed and The functions we if action. offices gun-toters relevant called will to be be our times, home, from be assets and can't challenging serve agencies response During valuable. These crime recession more business can't become

occupants will their be effectively. facilities serving Our

While the sheet investors with also well is a side confidence. provides debt. liability Meghan trimming structure our curated, great of balance our job our out asset has done

rollovers do limited inflation next hear the have the we of effects assets. of years. about We several questions value our in on Additionally, the

The that As the safety positioned is results. investors. many our the further into to goal business Meghan the I'll of strategy is investors look our to have that, know, and costs. We're tenants our has operating backed intent call with provisions that to positive With you portfolio. government. forward, some return execute give and protect in related an we'll the as inflation continue renewal Inflation value deliver we the Bill of to of quarter that company to activity. from the full also deliver turn risk-adjusted is credit that over improves pleased United by insights effects leases facing stability to the how to will our attractive second States with the shareholders our accelerating our creation to you represent describe

Bill Trimble

Darrell, the Easterly sixth acquisitions portfolio. our announced Georgia. to to the quarter, and Starting assets fifth the brand-new to in continued facility seventh XX previously brand-new expect facilities portfolio Alabama Columbus, planned VA we facility VA through portfolio Thank located joining portfolio and for JV part we the are of of remainder the subsequent the VA on pleased our $XXX during approximately second deliver in earnings a add as with were morning. to of joint They and VA Thanks, quarter our end, you Currently, close XXXX. this Columbus, for located million to the call. the And and throughout building Marietta, quarter Georgia. good in us acquired Birmingham, second venture

X to second acquisitions Easterly during addition VA wholly the In the quarter. owned had properties,

holds May and the and National is strategically behalf until expire warehouse the NARA, XX-year Broomfield Archives of NARA XXXX. which does documents, a specifically the was pursuant was agencies temporary by ensure federal set Broomfield, constructed XXXX X and build-to-suit of Colorado. XX environmental certain country NARA National to on of a to created Archives first records the leased throughout course facility that maintain permanent Administration located Services humidity. for and needs providing X for points Broomfield the Warehouse of exact The across Record in is and these both facilities optimal constructed Administration of to controls states, the General temperature lease, XXX% not preservation to the in in is important

of the of funded building an an units of acquisitions Aside attributes, $XX important from accretive partnership upgraded the part at demonstrating once its price structure. operating our per of is noting strength acquisition that worth it also this issuance again through approximately team unit,

lease fencing, number setbacks, or security offices to, magnetometers the was located thesis the asset office features this true now A this Remaining not owns acquisition, under wholly to of Tampa, perimeter FBI space. does of X/X expire in with Our defined protection, an enhanced important field security a this but November trophy is access, Tampa vehicle second original an the our just barriers, owned XX throughout acquisition Easterly country. Florida. criteria until XXXX, owning located of not quarter including, limited field Class of FBI XXX,XXX facilities, controlled that blast in-place square investment by in XX mission-critical foot and SCIF With FBI

acquisition rates the up now the of monitor seeing as bottom as the backing we from shifted. pipeline cap cost to capital continue we market's We believe are has

drives discussed best NAV-enhancing market. on GSA as only equity understands interest space. landlord and in quarter, value protects as We nature and heightened portfolio introduces cost unique have opportunities us within of the Easterly operating active in structure that induced focused believe from potential a and will CAD-accretive this We continue of the transactions leak inflation XXXX. increases gotten niche half our And see more the the private last the to remain

updates. Turning leasing to

that This duration the XX-year our flows Our second in Kentucky and XXXX. field include Little a EPA for office enhance of first half in cash portfolio's coupled City management term. the executions are NAV. successful remaining we Easterly Louisville, the facility in FBI government-backed both asset the quarter, located in assets laboratory lengthen Dallas continues exercises first portfolio. and the Rock X secure strong for The quarter team Kansas the to Birmingham from with new In bullseye of renewed noncancelable FBI renewals the the considering re-leasing renewal, DEA the we XXXX which and represents lease in of ICE the renewals

of are and end, leases underway, quarters. we future on in updates negotiations well As both providing look quarter forward to

most continue first expect The execute of of and laboratory acquiring the of now to the XXXX. near in second FDA half final delivered the to the important team design closing, had should In half continue into lead this leased in the a strong the our is will be on strategy the trajectory which drawings, government. we XXXX. year quarter of restart federal assets the a its disciplined Easterly to second of estimate facility will stages Finally, term. in to We

to We that to markets will quarterly capital GSA look discuss you tenant and underlying attractive results work nonspeculative to Meghan this and thank the the over with time morning, development that, execution. for renewals the on and I With opportunities can returns. turn I'll your call agencies financial and provide upcoming

Meghan Baivier

Thank It the results we to and share market environment. we how pleased another and everyone. you, our are quarter was Bill. company's in view Good positioning morning, strong current the Easterly, for

the totaling X As either in venture X.X lease facilities, comprising additional X weighted approximately age average our to at remains remaining also wholly XX.X we with feet, long-term properties operating us our weighted lengthy properties, allowed newer the million XX, average or of square project through term young feet. of have renewals June square XXX,XXX owned owned of of years. design, a Through XX existing at approximately joint acquisition portfolio Successful lease years. sustain development

build-to-suit remaining to owning maintaining allows and long believe strategy distinctive As cash flow acquisition age support this company's with term provides balance us a project and our with manage relatively average development our of visibility and enduring accretive turn is which young us in strategy sheet, portfolio a lease previously reflective the mentioned, pipeline. We future new of weighted prudently missions. assets

Turning share income to was $X.XX, and $X.XX. was our second on share All as quarter per share fully FFO a basis, net per was diluted $X.XX. adjusted FFO per results.

million. for $XX.X was Our distribution cash available

and company to available At quarter end, the of $XXX future million balance on acquisitions total approximately line had indebtedness with expenses. development-related Turning billion, approximately the credit of $X.X for our sheet.

a ratio of average second at debt with pro XXXX. sheet a touch XX, outstanding view net value years, how and of focus navigate EBITDA With total was we as of would I positioning I our balance net X annualized over company's rate environment. to adjusted positioning to enter the of X.Xx, debt as a our quarterly fixed leverage, XX% forma debt with to XX.X% debt Easterly's pleased weighted half enterprise our maturity and As June like we on all levels, attractive we am rising on was

dependable deliberate the time good up plan, believe quarter the capital is and our to is and us look a a real of sheet as finally, of and proceeds commitment leverage to balance As was Eddy X% completed. our we a shareholders. market. Easterly Darrell relationships always continue with And at practice, that REIT, of the mentioned We drives us. estate and Due approximately allocating Board this outstanding repurchase approximately decision portfolio and an and by to less is the the and company beyond, inaugural Steady to second we environment REITs. We as the our in upon lease remain nature other market We we flat, approved expiration in forward capital. real tools build-to-suit will ensure we Consistent half an that strategic in existing will level further for that assets, serves of a option GSA leases benefit are the way the leases and asset cost-effective actively stock equity Bill the most available distinguished another are the The and the private noted, greatest embedded unsettled protection, shareholders players shares. we the if banking inflationary GSA urban of been. for with its uncapped and strong view is as X by segment as was our to for of being the X.Xx, protecting Easterly the operating in our government, is of of navigate have leases recognized standard urban or a NOI consistent equity unsettled year to grows is right To relevant of intend when year our facility Easterly forward inform which how of positioned, the set inflationary sector agency. Bill allows shares watching in shell ended million an we is renewal in index June rent in for with the market CPI mentioned, deals underlying previously of the we constructing recycling unique as the cost value consistent company clear, with increasingly the value base believe desirable compared to while now There with strong to million of ago. is expense natural degradation Further, our The the generally than X.X% $XX.X quarter, believe XX, thus being armed for like repurchase we as nature a NOI X.X the plan our the tenant aligned company's XXXX, stock be environment. an evolves. against higher increases CPI, contain have

is our to in pro $XXX at of The I gross commitment year-over-year. and a the portfolio FFO to This its At million our will continue closing earnings company's Turning that, $XX the call company wholly for XXXX. fully rata predicated development-related during your record thank $X.XX. to share its share now of midpoint, totaling on million we track appreciate Easterner growth investment up you diluted the guidance. $X.XX partnership. FFO to basis your remains With million of turn range $XXX in thesis guidance back $XXX Doug. guidance upon properties steady VA owned and in million to maintaining a to per the approximately of our acquisitions, is to on

Operator

conducting question you. at Our be and question-and-answer first this session. line a [Operator gentlemen, the Thank we will of Michael time, from Instructions] with Ladies comes Citi. Griffin

Michael Griffin

try bit. talked you're bit of of where any that in you rates prepared trade of of term? little it them a expand seen on remarks Bill, Could expand bit? how your you a near maybe the sort you a Sort and seeing you kind seeing little where cap and of expect and assets in rates to maybe Darrell have cap quantifying you're and about kind sort

Bill Trimble

Well, I points basis think we've certainly XX movement. of see

transaction right sort Michael an it's FBI the year. think time. I are is earlier Things Baltimore fall see We the uncertain now. did of thing apart moving this

actual what should think figure trying get really to is when we a I and can I out So be. that, balance what out are do think, figure the we real pricing

a as of Darrell I think lot see mentioned, we there. opportunities out

doing settle make down, making is in bigger pool, work. is the the But And swimming things we've team want we be think range that think acquisitions there. until of Our of time. a I elephant probably their I long ask a in to not splashing all sure think bid seen out -- the lot a than very we I are

Michael Griffin

peers, back and this in much might utilization. be that helpful. bring people that going government not office but may fits That's federal to feel starts. I office, And mentioned headlines I maybe traditional Great. the you in on the quick other you starting every around just see office know a it's you then question trying some maybe as to affecting the relative and

of quantify maybe that might the of kind be portfolio area. return that delayed office kind percentage of of can in So impacted curious, the you your to sort

Bill Trimble

Well, I news our think have great working already throughout the the been always pandemic. folks is

alluded have that will folks the really build-to-suit the the that us. have I whole of to, that necessitated buildings a there factor our FBI's are laboratories being very not facilities those So like usage say really about time. for XX% DEA heavy the Darrell

as portfolio, about XX% vanilla plain of you the As are know, overall and they missions of occupied our well. more are

huge backlog government do in which to been Biden great the of though a efficiency space, by last over and government compromised Union I office COVID job federal not address be in mentioned that the last heard is of think us. better does of the surprise probably home think may that President State the the years their of working there's I all winter that the you and from as a that a

impacted, the terms that XX-year in substantial those are not particularly more years. our have renewed in say we for just are majority vast been buildings So plain portfolio, several last we vanilla luckily

So happy are humming pandemic. to we they and we're have entire are as build-to-suit the now, those time where right be pretty all been throughout facilities along the

Operator

the question Michael Capital of from Our with Markets. next comes RBC line Carroll

Michael Carroll

rates up back for quarter to to going up Bill, DEA with the the of least it And your we in will about and are. comment guidance? in pick trying activity that your kind that the at XX still slow fair? you're hit fourth out investment figure are expect cap basis points that should right quarter. Is valuations third is to Mean

Bill Trimble

do Well, I couple see yet. a I see these aren't a to and time that weeks. don't if something I of things going think later. there, to that we sell there's a activity going know in be know month. we're mean than better something lot if see we I when don't see in is I now the don't sellers probably out now question -- to to a of it's realizing going

so rest be And CAD to of maintain in, in careful least going see really or that we the of and not before course. plenty going do positive And opportunities standpoint, to that going I anything can think isn't from neutral of market do we there, but some There to we're FFO certainty wholesale. assured need are you think to our we're out accretive. or that I sort very in are clarifying jump at

to more come. So

Michael Carroll

don't valuations know million that about the to to by risk mean something the put willing I $XXX out guess, guidance? if of into have settle to investment I then? is kind XXXX that? market there, you're that I Is I another Okay. think you

Bill Trimble

a comment and for of seeing so out go fact most our of steady as I following now the to except There's probably you going uncertain Well, we're right far think into I plenty what's standpoint. there, year, the at now opportunities that rate lot certain and that of I factors and you're the seeing. happen probably think the next we're from can't we're that what

Darrell Crate

is is is that's do this so Excel position, Darrell. who the dominant I'd spreadsheets. where mean, Yes, -- developers you occupy of a they this I mean these mean, us. position I sort have really I and add something all market have who favors folks

where in us above are folks so where interest the calls kind look an opportunity with And of offering more gets and at folks, beginning understand we've the to to people rates, a ultimately we've involved head, that had that as their needing water their -- projects. be to or can partnership And translates accretive be ways seen into very our shareholders. in help past, in

of none abate that's and going -- So soon. to

we week can't I But there or again, by you are activity So we're could happening to confident think really very the means that shareholders. -- think I they're are numbers, long few And and as as the are productive. predict see the some term so lumpy. conversations in said, change acquisitions, in these for said, that our in I about we're dynamics it medium month, what

Michael Carroll

you've specific sell? on already on are given to then the looking the the it And the capital back What half guess, what back transaction assuming could of And having and in type Bill properties? been are happen those now. market? assets Meghan that that I know I something to those year? discussions to, can that looking you're go you recycle valuations Great. implied Okay. I mentioned potentially of that both I'm

Bill Trimble

in, as be in that There environment could folks I we be to in not bullseye And -- owners, market buildings our are and tool and or all disciplined that mentioned before, properties but points government that to we portfolios that to buildings it as essential surprising that mission others. space, over would do, terrific the not the other we're the would the And have. we've acquire maybe not we years. for that are in adhering those think think toolbox. in that our portfolios that's something I another that's wonderful Well,

would I warrant market and that's And we of pricing a ourselves think avail so the correct natural if it. for opportunity conditions just it us, and

we'll we think probably there anything, saying on in be missions probably a something plain us when sell obviously, be you but without be any to to screen, be that. if know And geographically certainty -- so it well, those not REIT. our would are were that and that very zone, And as about sure talk I to properties radar would FBI the more and vanilla looking Michael, the for buildings us have are challenged something or that maybe would would

Michael Carroll

just then of a soon. Is just, last on there of for design kind little we Could I one been break now. Okay. an Great. in kind me. that Atlanta? phase for while the know Bill guess an ground update that's that, expectation can And get

Bill Trimble

the be Yes. on And the I wonderful this to get I development. answer call, as And do yes, and Meghan, I'll reminded, finally. folks start think, we is thing nonspeculative think should

of from off worked that's which and bit, for wasn't Ibe a government government. we team, and thanks general as -- important very this lot now their very getting think got COVID Mike anyone. things the track back Baivier, before particularly are important with our running third and people lot certainly I little mind in out. terrific basically hard and our now. to federal had have home, Mark on on This right on But So broke a and obviously sidetracked a just was working laboratory project The FDA of

be quarters building talking I site think in the people so laboratory about and the this renewal we'll future amazing on FDA. of And for

lot of it side certainly work, we're think but from a been the I better now It's issues, that been get they think finally realizes hasn't I going. yes, our there. government So the

near the I've said I'm the this confident. to first little future. while we're going that be said underway is this So a that will And in

Operator

line comes Capital with Markets. question Kim John from BMO next of Our the

John Kim

office wondering down it to purely discovery compared is your June the that mentioned Nareit, rate to assets, or typical come based in on tenures cap tied in June, funding the since time, I your costs? the You expansion more is was had if tenure And and than back tenures call price last basis XX appetite but points.

Meghan Baivier

it's a Obviously, to correlation is there Meghan. John, tenure. definitely

they little participants more X% about also X% of see we in today. how something the tying think the to private I a think financing terms in more of to their market range

So where it's settle well cap are as we rates here market looking rates base our in is in starting absolutely, normalize. everybody those spreads to as to to

Darrell Crate

basis not in as real the science. over we of to the classroom in if But tenure brand to think of cap time a we sort point point of the being can XX XX points that's and as movement time that rate. your XXX precise we've the a correlated I it's mean think and over and looked different. that rate you about move that's of things, X is the -- kind imagine. as again, regressions And But cap other in world correlation level basis

John Kim

Okay. increased inclined opportunities to instituted on you seeing foreshadowing, your that buy you're share And and price you for first less acquisition discovery program back given shares it. than the are repurchase when

Darrell Crate

answer is I mean no. the

environment we're our in to toolbox. potential as we a to our and we every at for to available we're move that that's going maximize return about talk have corporate the tool finance dispositions it's tool going And look think I shareholders. into,

John Kim

capital And is there to third-party venture? joint sell an just your sales? opportunity into these to purely assets to clarify are Or be going on recycling,

Meghan Baivier

always this venture of outside scope for looking that third-party me, be the deploy to potential -- to have Obviously, capital continue party as opportunities sales. a is Yes. joint well. very of a continue eager Currently, we'd considering and to who we're excuse do recycling. But capital relationship third this into partner space, we

John Kim

at any the that's As target your components this time? you sales did identified bullseye change, opportunity, this the reason for of and

Bill Trimble

No.

absolutely folks thing sort that of that are the a And I for think to and that's XX to, have to one that I couple are think the there simply knowledgeable, XX we're properties. say in that or buying this that XX financed cannot just XX the I these one is last and out this, players whole reiterate mentioned we for changes we to thing area. of market. There sparred environment saw heavily were would trying no months Darrell that adhere a new that last years get lot in of there with in competitive

our it from pleased bodes And think Darrell mentioned. I of for dropped out have standpoint terrific are a acquisitions of just we that the I fringes. on number a forward, so very And these think going opportunity, the as players

more for from for excited standpoint, prospects to to being than the we've much this able months. we're effectively our last able XX So pretty market been manage the about

Operator

Our of next Peter Abramowitz line the from Jefferies. question with comes

Peter Abramowitz

just of I are you within one observed portfolio in between are that ask, wanted that have one-off to not there single of if and at? markets, there the out that looking assets? is, considering even acquisition been you're deals you've difference And pricing any those kind kind

Bill Trimble

in think think that not number put obviously. right always do to difficult great I portfolios that said is we've some value that together larger but time Well, out This buildings portfolios are a more probably you're there. it's I lot the there of seeing a people now, of that occurring,

there's of portfolios for we're several a to there premium you acquisitions, think course, I premium But our noted. And we've enjoyed purchasing so that now. always, I think of is And them, a the as opportunity portfolio on sure. JV still

Peter Abramowitz

amount you as work And mentioned development leg it's I the earlier. FDA Atlanta, of fair know on with side, then a Okay. here

wondering if little Just we could detail a expect of the potentially set bit you year. kind what go into broader next opportunity the over more on could kind of

Bill Trimble

and -- let in think I step Meghan Well, I'll as well.

is is to this going a area. -- think a be really exciting really I

You've got of on. things going couple a

financing. troubles has government in this mentioned, Darrell are slow. developers the some regional been getting having smaller space As The of

indications done. seen imagine X, trying get X, to cannot whenever line if pricing X on what you going project initial next were in the figure loan, need what so out Atlanta, a And in or is to out it development small developer can be of new smaller for developers construction building they change. these a the And -- with that the you've

that the development think next I of only is pricing to they're want some quicker going projects these several so government in so not up. on move the understands is And that years. to Inflation friend, going and their

more including we're be that certainly certainly ourselves to successful of for going for going avail think room I the opportunities. know, there's to developers ourselves And that. we more

So the I the those and folks to good think, some just And like lot smaller going of I some opportunities. are acquisitions, in more spot like is players for think seasoned a us. larger, mentioned I well-capitalized these great this space of a be of developers, business selling this to larger to see within

We with will ring standing and past. we've a this out ready and be to done the in by life help

a on developer. team another was you recall, -- the from As development wonderful, opportunity took Tracy FEMA wonderful that our

from that I'm what standpoint, in next And might about several pretty see we so excited years. the

Operator

Our of next Lewis from Truist. with the comes line Michael question

Michael Lewis

expected of little CapEx growth the the happening growth to opposite down the like front a that might capital It lot year-over-year portfolio. the last on in strong. of quarters of looks on Your flow a flow going has about expenditures a Could on due basis. handful talk inflationary pressures I and been cash you quite just and an have growth? bit your cash what's is

Meghan Baivier

absolutely. Mike,

FFO of One, in terms coming obviously, couple over to conversion dynamic we've of a bit from million. adjusted FFO as the of last the half couple of the you're That's worked $X lifted and down So is quarters has last CAD about places. seeing the some tune in free to our over the first course a year. rent through burden of year, renewals the of

that of to a growth. continues of market we've conversion more the burn this creates Obviously, about years, as be also talked for but cash. to below amortization off and FFO the headwind -- above You to leases effect well

we that's think think about And about of arc contributing to $X medium-term another trying $X a over where always more to live that's a and look from so the that when foot. sort in per year-over-year X-month And year-to-date you CapEx really to $X.XX comparison. about perspective, million one

we occur of will to some renewals oftentimes to wait We obviously items. to for ensure fully speed up that maintenance are on capital our

that could ebb range. term, to still you that medium So flow, see going but longer to term, longer over and $X the per foot $X.XX to are

Michael Lewis

Okay.

determine FFO cash to to Or flow you at could growth growth as as . expect So do tough we it is see? better far that this point? than be

Meghan Baivier

on portfolio. require buy I dynamic X burning that's expectation continuing above as capital. the Those younger which the next well When years. to of the of I that effect in to look less Yes, X assets for terms below out Yes. have maintenance over the off -- as an

Michael Lewis

Okay. work. expense Great. me, just last the then And on how for reimbursements clarification a

said, just the the over CPI heard for Meghan pace based CPI. with about that. they're the I to don't actual sure escalators you, what Maybe understand I to when wrong rent, think do expenses, are CPI not I'm or you has reimbursement expenses but misunderstood. applied I I expense what the something here. on get

Meghan Baivier

straight on appreciate rent the an No, let's I to Inherent record that. upon OpEx is the set our base. agreed question,

urban the so a with every And from $X annually first foot that call year starting a basis compounded accretes CPI. growth on year, base, let's it, a

is OpEx the the is end at of the increase made, space and So lease year, the that added index comparison to ensuing year. year-over-year the for

base accumulated not to So no, will I it's expenses. that but of base well current our in reimbursement that actually say are we to above expenses, tied and operating our actual matched terms operating actual

insulation do NOI we sort of degradation matched. virtue of that by well being So have nice from

Michael Lewis

Okay. I understand.

the don't taxes applied it's base guess possible utilities be the as property as much their they're CPI. It quote would here. I CPI that or So still to say

an protected your you're of overall so kind inflation And from point, standpoint? to

Meghan Baivier

to. Yes, It's expect that's it today index proven that to providing we protection and the has broad certainly a be CPI would right.

Operator

[Operator Crow comes Bill the of Raymond next James. Instructions] line from with question Our

Bill Crow

space, and for yields of marketplace you, to push the if for on it on doesn't price competitors just further rate sense in Question kind I'm the your maybe you up given even your for further? acquisitions based pulling back discovery, help back longer, on comments and wondering in dominance pull make

Bill Trimble

we definitely last group think be not the I going to group, the prices. expensive validate Bill, are that standing to Well,

have the So figure we can you on the and foot that the brake accelerator.

We rates are going keep not way the the the cap to as market marking increase. all

is the shoot the to we're by we be in agree absolutely that to ridiculous in So prices market. careful no very And there. reason going foot there ourselves playing

you see. dead you're the so turnaround lot So things recession quicker reasons heading we than to that can -- a move there's as time into as that a -- of even occurs, timing might the when on, the -- as opportunities be for whole

the we not and watching So used assured, game. are the the sidelines, correctly, term rest on not -- you we

places the right watching, sold. being eagerly -- see in are We not and we until but running

Bill Crow

Great. Can . has when forward you be completed? the me to remind equity sale

Meghan Baivier

end We to of the have quarter forward from settle our the months XX equity.

Bill Crow

But couple I'm financing the times the this of decades viable about And recycling Right. to Easterly. Great. capital comment or source hitting you are last just how then not whether And year on year in of of assets. is going where stocks equity a as a before helps really had instead markets. noncore identify it's amazing thought just like last this management down it curious

Bill Trimble

in boy, on or out of and XX, always during go now. lot there's really December but I wish what's we've our of opportunity time. we to and think and that and And that's noncore wonderful this of think what the coming these knowledge a you're things, don't thought balance think we're I new core I that particular something correct, on turndowns, all or we December it's we different business, all right through executed a thought figure it, periods, to maybe XX doing

Operator

in There hand back over further Darrell like questions the are queue. to for closing I'd Crate no call remarks. the to

Darrell Crate

appraised and joining and this Quarter everyone, your for as we appreciate keeping Easterly morning, Call, to time look Conference they XXXX the future you, forward Second thanks we you Properties occur. of developments Government Thank

Operator

teleconference. and Ladies conclude Thank this does gentlemen, for your today's you participation.

day. lines your time, and at have disconnect may wonderful You this a

Easterly Government Properties (DEA) 2 Aug 222022 Q2 Earnings call transcript