10-Q 1 dea-10q_20220331.htm 10-Q dea-10q_20220331.htm
false 2022 Q1 0001622194 --12-31 DC http://fasb.org/us-gaap/2021-01-31#PrepaidExpenseAndOtherAssets http://fasb.org/us-gaap/2021-01-31#AccountsPayableAndOtherAccruedLiabilities 2025-07 0.0262 0.0391 L + 150bps 0.0500 0.0441 0.0446 0.0421 0.0359 0.0340 0.0368 http://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Member http://fasb.org/us-gaap/2021-01-31#AccountingStandardsUpdate201613Member 0001622194 2022-01-01 2022-03-31 xbrli:shares 0001622194 2022-04-27 iso4217:USD 0001622194 2022-03-31 0001622194 2021-12-31 iso4217:USD xbrli:shares 0001622194 2021-01-01 2021-03-31 0001622194 dea:TenantReimbursementsMember 2022-01-01 2022-03-31 0001622194 dea:TenantReimbursementsMember 2021-01-01 2021-03-31 0001622194 us-gaap:RealEstateOtherMember 2022-01-01 2022-03-31 0001622194 us-gaap:RealEstateOtherMember 2021-01-01 2021-03-31 0001622194 2020-12-31 0001622194 2021-03-31 0001622194 dea:OperatingPropertiesMember 2022-01-01 2022-03-31 0001622194 dea:OperatingPropertiesMember 2021-01-01 2021-03-31 0001622194 dea:DevelopmentPropertiesMember 2022-01-01 2022-03-31 0001622194 dea:DevelopmentPropertiesMember 2021-01-01 2021-03-31 0001622194 dea:LongTermIncentivePlanMember 2022-01-01 2022-03-31 dea:Property 0001622194 dea:WhollyOwnedOperatingPropertiesMember 2022-03-31 0001622194 us-gaap:CorporateJointVentureMember 2022-03-31 xbrli:pure 0001622194 dea:WhollyOwnedOperatingPropertiesMember 2022-01-01 2022-03-31 0001622194 dea:WhollyOwnedOperatingPropertiesMember us-gaap:GovernmentMember 2022-03-31 utr:sqft 0001622194 dea:WhollyOwnedOperatingPropertiesMember dea:PrivateTenantsMember 2022-03-31 0001622194 dea:WhollyOwnedPropertiesUnderDevelopmentMember 2022-03-31 0001622194 dea:OperatingPartnershipMember 2022-01-01 2022-03-31 0001622194 us-gaap:LeasesAcquiredInPlaceMember 2022-03-31 0001622194 dea:AcquiredLeasingCommissionsMember 2022-03-31 0001622194 us-gaap:AboveMarketLeasesMember 2022-03-31 0001622194 dea:PaymentInLieuOfTaxesMember 2022-03-31 0001622194 dea:OperatingPropertiesAcquiredMember 2022-03-31 0001622194 dea:OperatingPropertiesAcquiredMember 2022-01-01 2022-03-31 0001622194 dea:MedBaseVentureMember dea:JVPartnerMember 2022-03-31 0001622194 dea:JVPartnerMember 2021-10-13 0001622194 dea:JVPartnerMember 2022-01-01 2022-03-31 0001622194 us-gaap:SeriesAPreferredStockMember dea:JVPartnerMember 2022-01-20 0001622194 us-gaap:SeriesAPreferredStockMember dea:JVPartnerMember 2022-01-20 2022-01-20 0001622194 dea:JVPartnerMember 2022-03-31 0001622194 us-gaap:RevolvingCreditFacilityMember 2022-03-31 0001622194 dea:TwoThousandSixteenTermLoanFacilityMember 2022-03-31 0001622194 dea:TwoThousandEighteenTermLoanFacilityMember 2022-03-31 0001622194 dea:TermLoanFacilityMember 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesASeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesBSeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesCSeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesASeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesBSeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesCSeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 dea:TwoThousandTwentyOneSeriesASeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 dea:TwoThousandTwentyOneSeriesBSeniorNotesMember dea:SeniorUnsecuredNotesPayableMember 2022-03-31 0001622194 us-gaap:NotesPayableOtherPayablesMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:DEAPleasantonMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:VAGoldenMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:MEPCOMJacksonvilleMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:USFSIIAlbuquerqueMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:ICECharlestonMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:VALomaLindaMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:CBPSavannahMember 2022-03-31 0001622194 us-gaap:MortgagesMember dea:USCISKansasCityMember 2022-03-31 0001622194 us-gaap:MortgagesMember 2022-03-31 0001622194 us-gaap:RevolvingCreditFacilityMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:DEAPleasantonMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesASeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesBSeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesCSeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesASeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesBSeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesCSeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandTwentyOneSeriesASeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandTwentyOneSeriesBSeniorNotesMember 2022-03-31 0001622194 dea:TwoThousandSixteenTermLoanFacilityMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandEighteenTermLoanFacilityMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesASeniorNotesMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesBSeniorNotesMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandSeventeenSeriesCSeniorNotesMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesASeniorNotesMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesBSeniorNotesMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandNineteenSeriesCSeniorNotesMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandTwentyOneSeriesASeniorNotesMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandTwentyOneSeriesBSeniorNotesMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:VAGoldenMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:MEPCOMJacksonvilleMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:USFSIIAlbuquerqueMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:ICECharlestonMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:VALomaLindaMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:CBPSavannahMember 2022-01-01 2022-03-31 0001622194 us-gaap:MortgagesMember dea:USCISKansasCityMember 2022-01-01 2022-03-31 0001622194 us-gaap:LondonInterbankOfferedRateLIBORMember 2022-01-01 2022-03-31 0001622194 dea:SeniorUnsecuredNotesMember us-gaap:RevolvingCreditFacilityMember 2022-03-31 0001622194 dea:SeniorUnsecuredNotesMember dea:TwoThousandEighteenTermLoanFacilityMember 2022-03-31 0001622194 dea:SeniorUnsecuredCreditFacilityMember dea:TwoThousandSixteenTermLoanFacilityMember 2022-03-31 0001622194 us-gaap:RevolvingCreditFacilityMember dea:TwoThousandEighteenTermLoanFacilityMember 2022-03-31 dea:Swap 0001622194 dea:TwoThousandSixteenTermLoanFacilityMember us-gaap:InterestRateSwapMember 2022-03-31 0001622194 dea:TwoThousandSixteenTermLoanFacilityMember us-gaap:InterestRateSwapMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandEighteenTermLoanFacilityMember us-gaap:InterestRateSwapMember 2022-03-31 0001622194 dea:TwoThousandEighteenTermLoanFacilityMember us-gaap:InterestRateSwapMember 2022-01-01 2022-03-31 0001622194 dea:InterestSwapRateAtOnePointFourOnePercentageFixedRateMember 2022-03-31 0001622194 dea:InterestSwapRateAtTwoPointSevenOnePercentageFixedRateMember 2022-03-31 0001622194 dea:InterestSwapRateAtOnePointFourOnePercentageFixedRateMember 2022-01-01 2022-03-31 0001622194 dea:InterestSwapRateAtTwoPointSevenOnePercentageFixedRateMember 2022-01-01 2022-03-31 0001622194 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001622194 dea:TwoThousandSixteenTermLoanFacilityMember 2022-03-31 0001622194 dea:TwoThousandEighteenTermLoanFacilityMember 2022-03-31 0001622194 dea:NotesPayableMember 2022-03-31 0001622194 dea:MortgagesPayableMember 2022-03-31 0001622194 us-gaap:RestrictedStockMember 2022-01-01 2022-03-31 0001622194 us-gaap:RestrictedStockMember 2021-01-01 2021-03-31 0001622194 us-gaap:RestrictedStockMember 2022-03-31 0001622194 us-gaap:RestrictedStockMember 2021-12-31 0001622194 dea:ServicesMember dea:JanuaryThreeTwoThousandTwentyTwoMember 2022-01-01 2022-03-31 0001622194 dea:OperationalMember dea:JanuaryThreeTwoThousandTwentyTwoMember 2022-01-01 2022-03-31 0001622194 us-gaap:PerformanceSharesMember dea:JanuaryThreeTwoThousandTwentyTwoMember 2022-01-01 2022-03-31 0001622194 dea:LongTermIncentivePlanMember dea:JanuaryThreeTwoThousandTwentyTwoMember 2022-01-01 2022-03-31 0001622194 dea:LongTermIncentivePlanMember 2021-01-01 2021-03-31 0001622194 dea:LongTermIncentivePlanMember 2022-03-31 0001622194 dea:LongTermIncentivePlanMember 2021-12-31 0001622194 us-gaap:CommonStockMember 2021-12-31 0001622194 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001622194 us-gaap:RetainedEarningsMember 2021-12-31 0001622194 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2021-12-31 0001622194 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001622194 dea:NoncontrollingInterestInOperatingPartnershipMember 2021-12-31 0001622194 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001622194 dea:NoncontrollingInterestInOperatingPartnershipMember 2022-01-01 2022-03-31 0001622194 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2022-01-01 2022-03-31 0001622194 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001622194 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001622194 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001622194 us-gaap:CommonStockMember 2022-03-31 0001622194 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001622194 us-gaap:RetainedEarningsMember 2022-03-31 0001622194 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2022-03-31 0001622194 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001622194 dea:NoncontrollingInterestInOperatingPartnershipMember 2022-03-31 0001622194 us-gaap:CommonStockMember 2020-12-31 0001622194 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001622194 us-gaap:RetainedEarningsMember 2020-12-31 0001622194 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2020-12-31 0001622194 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001622194 dea:NoncontrollingInterestInOperatingPartnershipMember 2020-12-31 0001622194 us-gaap:RetainedEarningsMember srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2021-01-01 2021-03-31 0001622194 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2021-01-01 2021-03-31 0001622194 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001622194 dea:NoncontrollingInterestInOperatingPartnershipMember 2021-01-01 2021-03-31 0001622194 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2021-01-01 2021-03-31 0001622194 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001622194 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001622194 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001622194 us-gaap:CommonStockMember 2021-03-31 0001622194 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001622194 us-gaap:RetainedEarningsMember 2021-03-31 0001622194 us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember 2021-03-31 0001622194 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001622194 dea:NoncontrollingInterestInOperatingPartnershipMember 2021-03-31 0001622194 dea:InstalmentOneQuarterOneTwoThousandTwentyTwoMember 2022-01-01 2022-03-31 0001622194 dea:PerformanceBasedLTIPUnitsMember 2022-01-01 2022-03-31 0001622194 dea:ServiceBasedLTIPUnitsMember 2022-01-01 2022-03-31 0001622194 dea:ForwardSalesAgreementMember 2021-08-11 0001622194 2021-08-09 2021-08-11 0001622194 2021-08-11 0001622194 dea:ForwardSalesAgreementMember 2021-12-28 0001622194 dea:ForwardSalesAgreementMember 2022-03-31 0001622194 dea:ForwardSalesAgreementMember 2021-12-28 2021-12-28 0001622194 dea:TwoThousandNineteenATMProgramMember 2019-12-18 2019-12-20 0001622194 dea:TwoThousandTwentyOneATMProgramMember 2021-06-21 2021-06-22 0001622194 dea:TwoThousandNineteenATMProgramMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandNineteenATMProgramMember dea:ForwardSalesAgreementMember 2022-01-01 2022-03-31 0001622194 dea:TwoThousandNineteenATMProgramMember dea:ForwardSalesAgreementMember 2022-03-31 0001622194 dea:TwoThousandTwentyOneATMProgramMember 2022-03-31 0001622194 dea:TwoThousandNineteenATMProgramMember 2022-03-31 0001622194 us-gaap:StockCompensationPlanMember 2022-01-01 2022-03-31 0001622194 us-gaap:StockCompensationPlanMember 2021-01-01 2021-03-31 0001622194 dea:ForwardSalesAgreementsMember 2022-01-01 2022-03-31 0001622194 dea:ForwardSalesAgreementsMember 2021-01-01 2021-03-31 0001622194 dea:UnvestedPerformanceBasedLongTermIncentivePlanMember 2022-01-01 2022-03-31 0001622194 dea:UnvestedPerformanceBasedLongTermIncentivePlanMember 2021-01-01 2021-03-31 0001622194 us-gaap:ForwardContractsMember 2022-01-01 2022-03-31 0001622194 us-gaap:ForwardContractsMember 2021-01-01 2021-03-31 0001622194 dea:FixedMember 2022-01-01 2022-03-31 0001622194 dea:FixedMember 2021-01-01 2021-03-31 0001622194 dea:VariableMember 2022-01-01 2022-03-31 0001622194 dea:VariableMember 2021-01-01 2021-03-31 0001622194 stpr:CA dea:SanDiegoMember dea:LeaseMember 2022-01-01 2022-03-31 0001622194 dea:CorporateOfficeLeasesMember 2022-03-31 0001622194 dea:USJointStaffCommandJSCMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:USJointStaffCommandJSCMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:FederalBureauOfInvestigationMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:FederalBureauOfInvestigationMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:FoodAndDrugAdministrationMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:FoodAndDrugAdministrationMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:CustomsAndBorderProtectionMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:UnitedStatesCitizenshipAndImmigrationServicesMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:UnitedStatesCitizenshipAndImmigrationServicesMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:DepartmentOfVeteranAffairsMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:DepartmentOfVeteranAffairsMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:NationalParkServiceMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:OccupationalSafetyAndHealthAdministrationMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:InternalRevenueServiceMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:InternalRevenueServiceMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:UnitedStatesCoastGuardMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:TheJudiciaryOfTheUnitedStatesGovernmentMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:HealthResourcesAndServicesAdministrationMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:HealthResourcesAndServicesAdministrationMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:PatentAndTrademarkOfficeMember us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 dea:EnvironmentalProtectionAgencyMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:DepartmentOfTransportationMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:GeneralServicesAdministrationMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:MilitaryEntranceProcessingCommandMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:FederalEmergencyManagementAgencyMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 dea:BureauOfFiscalServiceMember us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member 2022-01-01 2022-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member 2021-01-01 2021-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member 2022-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member 2021-12-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:GSABuffaloMember dea:ParkingGarageMember 2022-01-01 2022-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:GSABuffaloMember dea:ParkingGarageMember 2021-01-01 2021-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:GSABuffaloMember dea:ParkingGarageMember 2022-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:GSABuffaloMember dea:ParkingGarageMember 2021-12-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:COVID19PandemicMember 2022-01-01 2022-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:COVID19PandemicMember 2021-01-01 2021-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:COVID19PandemicMember srt:MaximumMember 2022-03-31 0001622194 us-gaap:AccountingStandardsUpdate201409Member dea:COVID19PandemicMember 2021-12-31 0001622194 dea:DomesticGovernmentMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-03-31 0001622194 dea:NonGovernmentalTenantsMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2022-01-01 2022-03-31 0001622194 stpr:CA 2022-03-31 0001622194 us-gaap:WhollyOwnedPropertiesMember 2022-03-31 0001622194 stpr:CA us-gaap:CustomerConcentrationRiskMember us-gaap:SalesRevenueNetMember 2022-01-01 2022-03-31 0001622194 stpr:CA us-gaap:CustomerConcentrationRiskMember dea:RentableSquareFeetMember 2022-01-01 2022-03-31 0001622194 us-gaap:SubsequentEventMember 2022-04-01 0001622194 us-gaap:SubsequentEventMember 2022-04-01 2022-04-01 0001622194 us-gaap:SubsequentEventMember srt:DirectorMember dea:ShareRepurchaseProgramMember srt:MaximumMember 2022-04-28 0001622194 us-gaap:SubsequentEventMember srt:DirectorMember dea:ShareRepurchaseProgramMember 2022-04-28

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 001-36834

 

EASTERLY GOVERNMENT PROPERTIES, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Maryland

 

47-2047728

(State of Incorporation)

 

(IRS Employer Identification No.)

 

 

 

2001 K Street NW, Suite 775 North, Washington, D.C.

 

20006

(Address of Principal Executive Offices)

 

(Zip Code)

(202) 595-9500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock

DEA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes      No  

As of April 27, 2022, the registrant had 90,779,897 shares of common stock, $0.01 par value per share, outstanding.

 

 

 

 


 

 

INDEX TO FINANCIAL STATEMENTS

 

 

Page

Part I: Financial Information

 

 

 

   Item 1: Financial Statements:

 

Consolidated Financial Statements

 

 

 

Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (unaudited)

1

 

 

Consolidated Statements of Operations for the Three Months Ended March 31, 2022 and 2021 (unaudited)

2

 

 

Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021 (unaudited)

3

 

 

Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (unaudited)

4

 

 

Notes to the Consolidated Financial Statements

6

 

 

   Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

 

 

   Item 3: Quantitative and Qualitative Disclosures About Market Risk

34

 

 

   Item 4: Controls and Procedures

34

 

 

Part II: Other Information

 

 

 

   Item 1: Legal Proceedings

36

 

 

   Item 1A: Risk Factors

36

 

 

   Item 2: Unregistered Sales of Equity Securities and Use of Proceeds

36

 

 

   Item 3: Defaults Upon Senior Securities

36

 

 

   Item 4: Mine Safety Disclosures

36

 

 

   Item 5: Other Information

36

 

 

   Item 6: Exhibits

37

 

 

Signatures

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Easterly Government Properties, Inc.

Consolidated Balance Sheets (unaudited)

(Amounts in thousands, except share amounts)

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Assets

 

 

 

 

 

 

 

 

Real estate properties, net

 

$

2,388,592

 

 

$

2,399,188

 

Cash and cash equivalents

 

 

7,793

 

 

 

11,132

 

Restricted cash

 

 

9,545

 

 

 

9,011

 

Tenant accounts receivable

 

 

58,643

 

 

 

58,733

 

Investment in unconsolidated real estate venture

 

 

152,374

 

 

 

131,840

 

Intangible assets, net

 

 

179,609

 

 

 

186,307

 

Interest rate swaps

 

 

1,136

 

 

 

 

Prepaid expenses and other assets

 

 

34,642

 

 

 

29,901

 

Total assets

 

$

2,832,334

 

 

$

2,826,112

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Revolving credit facility

 

 

35,000

 

 

 

14,500

 

Term loan facilities, net

 

 

248,679

 

 

 

248,579

 

Notes payable, net

 

 

695,703

 

 

 

695,589

 

Mortgage notes payable, net

 

 

250,945

 

 

 

252,421

 

Intangible liabilities, net

 

 

18,491

 

 

 

19,718

 

Deferred revenue

 

 

85,910

 

 

 

87,134

 

Interest rate swaps

 

 

1,330

 

 

 

5,700

 

Accounts payable, accrued expenses and other liabilities

 

 

56,931

 

 

 

60,890

 

Total liabilities

 

 

1,392,989

 

 

 

1,384,531

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Common stock, par value $0.01, 200,000,000 shares authorized,

  90,779,897 and 90,147,868 shares issued and outstanding at

   March 31, 2022 and December 31, 2021, respectively

 

 

908

 

 

 

901

 

Additional paid-in capital

 

 

1,614,798

 

 

 

1,604,712

 

Retained earnings

 

 

69,364

 

 

 

62,023

 

Cumulative dividends

 

 

(403,788

)

 

 

(379,895

)

Accumulated other comprehensive loss

 

 

(172

)

 

 

(5,072

)

Total stockholders’ equity

 

 

1,281,110

 

 

 

1,282,669

 

Non-controlling interest in Operating Partnership

 

 

158,235

 

 

 

158,912

 

Total equity

 

 

1,439,345

 

 

 

1,441,581

 

Total liabilities and equity

 

$

2,832,334

 

 

$

2,826,112

 

 

The accompanying notes are an integral part of these consolidated financial statements.

1

 


 

Easterly Government Properties, Inc.

Consolidated Statements of Operations (unaudited)

(Amounts in thousands, except share and per share amounts)

 

 

 

For the three months ended March 31,

 

 

 

2022

 

 

2021

 

Revenues

 

 

 

 

 

 

 

 

Rental income

 

$

70,439

 

 

$

64,179

 

Tenant reimbursements

 

 

1,144

 

 

 

320

 

Asset management income

 

 

248

 

 

 

 

Other income

 

 

471

 

 

 

502

 

Total revenues

 

 

72,302

 

 

 

65,001

 

Expenses

 

 

 

 

 

 

 

 

Property operating

 

 

15,458

 

 

 

12,094

 

Real estate taxes

 

 

7,826

 

 

 

7,286

 

Depreciation and amortization

 

 

24,159

 

 

 

22,325

 

Acquisition costs

 

 

362

 

 

 

487

 

Corporate general and administrative

 

 

5,983

 

 

 

5,808

 

Total expenses

 

 

53,788

 

 

 

48,000

 

Other income (expense)

 

 

 

 

 

 

 

 

Income from unconsolidated real estate venture

 

 

631

 

 

 

 

Interest expense, net

 

 

(10,882

)

 

 

(9,121

)

Net income

 

 

8,263

 

 

 

7,880

 

Non-controlling interest in Operating Partnership

 

 

(922

)

 

 

(889

)

Net income available to Easterly Government

   Properties, Inc.

 

$

7,341

 

 

$

6,991

 

Net income available to Easterly Government

   Properties, Inc. per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

 

$

0.08

 

Diluted

 

$

0.08

 

 

$

0.08

 

Weighted-average common shares outstanding

 

 

 

 

 

 

 

 

Basic

 

 

90,150,518

 

 

 

82,120,353

 

Diluted

 

 

90,571,571

 

 

 

82,596,597

 

Dividends declared per common share

 

$

0.265

 

 

$

0.260

 

 

The accompanying notes are an integral part of these consolidated financial statements.

2

 


 

Easterly Government Properties, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

(Amounts in thousands)

 

 

 

For the three months ended March 31,

 

 

 

2022

 

 

2021

 

Net income

 

$

8,263

 

 

$

7,880

 

Other comprehensive income:

 

 

 

 

 

 

 

 

Unrealized gain on interest rate swaps, net

 

 

5,507

 

 

 

1,838

 

Other comprehensive income

 

 

5,507

 

 

 

1,838

 

Comprehensive income

 

 

13,770

 

 

 

9,718

 

Non-controlling interest in Operating Partnership

 

 

(922

)

 

 

(889

)

Other comprehensive income attributable to

   non-controlling interest

 

 

(607

)

 

 

(228

)

Comprehensive income attributable to

   Easterly Government Properties, Inc.

 

$

12,241

 

 

$

8,601

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3

 


 

 

Easterly Government Properties, Inc.

Consolidated Statements of Cash Flows (unaudited)

(Amounts in thousands)

 

 

 

For the three months ended March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

8,263

 

 

$

7,880

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

24,159

 

 

 

22,325

 

Straight line rent

 

 

(982

)

 

 

(1,413

)

Income from unconsolidated real estate venture

 

 

(631

)

 

 

 

Amortization of above- / below-market leases

 

 

(860

)

 

 

(1,286

)

Amortization of unearned revenue

 

 

(1,398

)

 

 

(1,421

)

Amortization of loan premium / discount

 

 

(285

)

 

 

(19

)

Amortization of deferred financing costs

 

 

509

 

 

 

382

 

Amortization of lease inducements

 

 

212

 

 

 

214

 

Distributions from investment in unconsolidated real estate venture

 

 

1,819

 

 

 

 

Non-cash compensation

 

 

1,629

 

 

 

1,334

 

Other

 

 

 

 

 

10

 

Net change in:

 

 

 

 

 

 

 

 

Tenant accounts receivable

 

 

1,235

 

 

 

736

 

Prepaid expenses and other assets

 

 

(4,728

)

 

 

(6,931

)

Deferred revenue associated with operating leases

 

 

175

 

 

 

963

 

Principal payments on operating lease obligations

 

 

(95

)

 

 

(116

)

Accounts payable, accrued expenses and other liabilities

 

 

(4,910

)

 

 

3,354

 

Net cash provided by operating activities

 

 

24,112

 

 

 

26,012

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Real estate acquisitions and deposits

 

 

(498

)

 

 

(63,045

)

Additions to operating properties

 

 

(5,275

)

 

 

(5,628

)

Additions to development properties

 

 

(965

)

 

 

(3,423

)

Investment in unconsolidated real estate venture

 

 

(21,723

)

 

 

 

Net cash used in investing activities

 

 

(28,461

)

 

 

(72,096

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Issuance of common shares

 

 

9,504

 

 

 

40,403

 

Credit facility draws

 

 

32,000

 

 

 

80,000

 

Credit facility repayments

 

 

(11,500

)

 

 

(50,250

)

Repayments of mortgage notes payable

 

 

(1,300

)

 

 

(940

)

Dividends and distributions paid

 

 

(27,035

)

 

 

(24,186

)

Payment of offering costs

 

 

(125

)

 

 

(473

)

Net cash provided by financing activities

 

 

1,544

 

 

 

44,554

 

Net decrease in Cash and cash equivalents and Restricted cash

 

 

(2,805

)

 

 

(1,530

)

Cash and cash equivalents and Restricted cash, beginning of period

 

 

20,143

 

 

 

14,669

 

Cash and cash equivalents and Restricted cash, end of period

 

$

17,338

 

 

$

13,139

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

4

 


 

 

Easterly Government Properties, Inc.

Consolidated Statements of Cash Flows (unaudited)

(Amounts in thousands)

 

Supplemental disclosure of cash flow information is as follows:

 

 

 

For the three months ended March 31,

 

 

 

2022

 

 

2021

 

Cash paid for interest, net of capitalized interest

 

$

9,705

 

 

$

9,597

 

Supplemental disclosure of non-cash information

 

 

 

 

 

 

 

 

Additions to operating properties accrued, not paid

 

$

2,360

 

 

$

1,269

 

Additions to development properties accrued, not paid

 

 

3,299

 

 

 

1,654

 

Offering costs accrued, not paid

 

 

10

 

 

 

6

 

Deferred asset acquisition costs accrued, not paid

 

 

2

 

 

 

65

 

Contingent consideration accrued, not paid

 

 

 

 

 

336

 

Unrealized gain on interest rate swaps, net

 

 

5,507

 

 

 

1,838

 

Recognition of operating lease right-of-use assets

 

 

101

 

 

 

 

Recognition of liabilities related to operating lease right-of-use assets

 

 

101

 

 

 

 

Exchange of Common Units for Shares of Common Stock

 

 

 

 

 

 

 

 

Non-controlling interest in Operating Partnership

 

$

(2,700

)

 

$

(2,664

)

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

2,698

 

 

 

2,662

 

Total

 

$

 

 

$

 

 

The accompanying notes are an integral part of these consolidated financial statements.

5

 


 

Easterly Government Properties, Inc.

Notes to the Consolidated Financial Statements (unaudited)

1. Organization and Basis of Presentation

The information contained in the following notes to the consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2021, and related notes thereto, included in the Annual Report on Form 10-K of Easterly Government Properties, Inc. (the “Company”) for the year ended  December 31, 2021 filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 28, 2022.

The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2015. The operations of the Company are carried on primarily through Easterly Government Properties LP (the “Operating Partnership”) and the wholly owned subsidiaries of the Operating Partnership. As used herein, the “Company,” “we,” “us,” or “our” refer to Easterly Government Properties, Inc. and its consolidated subsidiaries and partnerships, including the Operating Partnership, except where context otherwise requires.

We are an internally managed REIT, focused primarily on the acquisition, development, and management of Class A commercial properties that are leased to U.S. Government agencies that serve essential functions. We generate substantially all of our revenue by leasing our properties to such agencies, either directly or through the U.S. General Services Administration (“GSA”). Our objective is to generate attractive risk-adjusted returns for our stockholders over the long-term through dividends and capital appreciation.

We focus on acquiring, developing and managing U.S. Government leased properties that are essential to supporting the mission of the tenant agency and strive to be a partner of choice for the U.S. Government, working closely with the tenant agency to meet its needs and objectives. As of March 31, 2022, we wholly owned 85 operating properties and four operating properties through an unconsolidated joint venture (the “JV”) in the United States, encompassing approximately 8.6 million leased square feet, including 88 operating properties that were leased primarily to U.S. Government tenant agencies and one operating property that was entirely leased to a private tenant. As of March 31, 2022, our operating properties were 99% leased. For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned one property under development that we expect will encompass approximately 0.2 million leased square feet upon completion.

The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of the Operating Partnership. We owned approximately 89.0% of the aggregate limited partnership interests in the Operating Partnership (“common units”) at March 31, 2022. We believe that we have operated and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015.

Principles of Consolidation

The accompanying consolidated financial statements are presented on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company, Easterly Government Properties TRS, LLC, Easterly Government Services, LLC, the Operating Partnership and its other subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The condensed consolidated financial statements included herein are unaudited; however, they include all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to state fairly the consolidated financial position of the Company at March 31, 2022 and December 31, 2021, the consolidated results of operations for the three months ended March 31, 2022 and 2021, and the consolidated cash flows for the three months ended March 31, 2022 and 2021. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various

6

 


 

other assumptions that are believed to be reasonable under the circumstances, including the impact of extraordinary events such as the novel coronavirus (COVID-19) pandemic, the results of which form the basis for making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

 

2. Summary of Significant Accounting Policies

The significant accounting policies used in the preparation of the Company’s condensed consolidated financial statements are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

3. Real Estate and Intangibles 

Consolidated Real Estate and Intangibles

Real estate and intangibles consisted of the following as of March 31, 2022 (amounts in thousands):

 

 

Total

 

Real estate properties, net

 

 

 

 

Land

 

$

222,838

 

Building and improvements

 

 

2,338,284

 

Acquired tenant improvements

 

 

90,054

 

Construction in progress

 

 

32,257

 

Accumulated depreciation

 

 

(294,841

)

Total Real estate properties, net

 

 

2,388,592

 

Intangible assets, net

 

 

 

 

In-place leases

 

 

285,806

 

Acquired leasing commissions

 

 

71,537

 

Above market leases

 

 

17,541

 

Payment in lieu of taxes

 

 

6,394

 

Accumulated amortization

 

 

(201,669

)

Total Intangible assets, net

 

 

179,609

 

Intangible liabilities, net

 

 

 

 

Below market leases

 

 

(73,895

)

Accumulated amortization

 

 

55,404

 

Total Intangible liabilities, net

 

 

(18,491

)

 

No operating properties were acquired or disposed of during the three months ended March 31, 2022.

During the three months ended March 31, 2022, we incurred $0.4 million of acquisition-related expenses mainly consisting of internal costs associated with future property acquisitions.

The following table summarizes the scheduled amortization of the Company’s acquired above- and below-market lease intangibles for each of the five succeeding years as of March 31, 2022 (amounts in thousands):

 

 

Acquired Above-Market Lease Intangibles

 

 

Acquired Below-Market Lease Intangibles

 

2022

 

$

1,047

 

 

$

(3,140

)

2023

 

 

1,390

 

 

 

(4,024

)

2024

 

 

1,341

 

 

 

(2,877

)

2025

 

 

1,286

 

 

 

(2,170

)

2026

 

 

1,217

 

 

 

(1,932

)

Above-market lease amortization reduces Rental income on our Consolidated Statements of Operations and below-market lease amortization increases Rental income on our Consolidated Statements of Operations.

7

 


 

 

4. Investment in Unconsolidated Real Estate Venture

The following is a summary of our investment in the JV (dollars in thousands):

 

 

 

 

 

 

As of March 31,

 

Joint Venture

 

Ownership Interest

 

 

2022

 

MedBase Venture

 

53.0%

 

 

$

152,374

 

 

On October 13, 2021, we formed an unconsolidated real estate venture, which we refer to as the JV, with a global investor to fund the acquisition of a portfolio of ten properties anticipated to encompass 1,214,165 leased square feet. We own a 53.0% interest in the JV, subject to preferred allocations as provided in the JV agreement.

 

We provide asset management services to the JV. We recognized asset management service revenue of $0.2 million for the three months ended March 31, 2022.

On January 20, 2022, the JV issued 125 Series A Preferred Units (“preferred units”) which resulted in net proceeds of $0.1 million. Holders of the preferred units are entitled to receive, when declared, cumulative preferential cash distributions.

 

The following is a summary of financial information for the JV (amounts in thousands):

 

 

 

As of  March 31,

 

Balance sheet information:

 

2022

 

Real estate, net (1)

 

$

199,815

 

Other assets, net

 

 

93,393

 

   Total assets

 

$

293,208

 

 

 

 

 

 

Total liabilities (2)

 

$

6,334

 

Total equity

 

 

286,874

 

   Total liabilities and equity

 

$

293,208

 

 

 

 

 

 

Company's share of equity

 

$

151,999

 

Basis differential (3)

 

 

375

 

Carrying value of the Company's investment in the unconsolidated venture

 

$

152,374

 

 

 

 

(1)

At March 31, 2022, this amount included right-of-use assets - finance leases totaling approximately $5.0 million representing a ground lease at VA – Lubbock.

 

(2)

At March 31, 2022, this amount included lease liabilities - finance leases totaling approximately $5.0 million representing a ground lease at VA – Lubbock.

 

(3)

This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level.

 

 

For the three months ended March 31,

 

Income statement information:

 

2022

 

 

2021

 

Total revenue

 

$

4,698

 

 

$

 

Operating income

 

 

1,231

 

 

 

 

Net income

 

 

1,190

 

 

 

 

 

 

 

 

 

 

 

 

 

Company's share of net income

 

$

631

 

 

$

 

 

 

8

 


 

 

5. Debt

At March 31, 2022, our consolidated borrowings consisted of the following (amounts in thousands):

 

 

Principal Outstanding

 

 

Interest

 

 

Current

 

Loan

 

March 31, 2022

 

 

Rate (1)

 

 

Maturity

 

Revolving credit facility:

 

 

 

 

 

 

 

 

 

 

 

Revolving credit facility (2)

 

$

35,000

 

 

L + 120 bps

 

 

July 2025 (3)

 

Total revolving credit facility

 

 

35,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term loan facilities:

 

 

 

 

 

 

 

 

 

 

 

2016 term loan facility

 

 

100,000

 

 

2.62% (5)

 

 

March 2024

 

2018 term loan facility (4)

 

 

150,000

 

 

3.91% (6)

 

 

July 2026

 

Total term loan facilities

 

 

250,000

 

 

 

 

 

 

 

 

Less: Total unamortized deferred financing fees

 

 

(1,321

)

 

 

 

 

 

 

 

Total term loan facilities, net

 

 

248,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable:

 

 

 

 

 

 

 

 

 

 

 

2017 series A senior notes

 

 

95,000

 

 

4.05%

 

 

May 2027

 

2017 series B senior notes

 

 

50,000

 

 

4.15%

 

 

May 2029

 

2017 series C senior notes

 

 

30,000

 

 

4.30%

 

 

May 2032

 

2019 series A senior notes

 

 

85,000

 

 

3.73%

 

 

September 2029

 

2019 series B senior notes

 

 

100,000

 

 

3.83%

 

 

September 2031

 

2019 series C senior notes

 

 

90,000

 

 

3.98%

 

 

September 2034

 

2021 series A senior notes

 

 

50,000

 

 

2.62%

 

 

October 2028

 

2021 series B senior notes

 

 

200,000

 

 

2.89%

 

 

October 2030

 

Total notes payable

 

 

700,000

 

 

 

 

 

 

 

 

Less: Total unamortized deferred financing fees

 

 

(4,297

)

 

 

 

 

 

 

 

Total notes payable, net

 

 

695,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage notes payable:

 

 

 

 

 

 

 

 

 

 

 

DEA – Pleasanton

 

 

15,700

 

 

L + 150bps (7)

 

 

October 2023

 

VA – Golden

 

 

8,784

 

 

5.00% (7)

 

 

April 2024

 

MEPCOM – Jacksonville

 

 

6,465

 

 

4.41% (7)

 

 

October 2025

 

USFS II – Albuquerque

 

 

14,723

 

 

4.46% (7)

 

 

July 2026

 

ICE – Charleston

 

 

14,484

 

 

4.21% (7)

 

 

January 2027

 

VA – Loma Linda

 

 

127,500

 

 

3.59% (7)