Latest news with #DarrellCrate
Yahoo
14-05-2025
- Business
- Yahoo
Easterly Asset Management Launches Two New Municipal Bond Offerings
Short Term and National Municipal Bond strategies to be offered as separately managed accounts (SMAs) to unlock tax-efficient, yield-focused investment for investors BEVERLY, Mass., May 14, 2025--(BUSINESS WIRE)--Easterly Asset Management ("Easterly"), home to investment teams providing investors with a portfolio of solutions across alternatives, active equity, and active fixed income, today announced the launch of two municipal bond products, offered as separately managed accounts, Easterly ROCMuni Short Term Municipal Bond Strategy and the new Easterly ROCMuni National Municipal Bond Strategy. The offerings further expand Easterly's curated investment solutions toward private wealth and institutional investors. "Launching these SMAs reinforces our commitment to deliver value for Easterly clients with solutions that make their portfolios better," said Darrell Crate, Founder and Managing Principal of Easterly Asset Management. "With these new municipal bond offerings, Easterly aims to meet the growing demand for SMAs and help yield-focused investors achieve their income and risk-management goals in today's complex environment." The Easterly ROCMuni Short Term Municipal Bond Strategy seeks to outperform traditional short-duration investments, such as money market funds and U.S. Treasuries, on an after-tax basis while maintaining a defensive posture. With a #1 ranking in its peer group since inception1, the strategy offers compelling value for investors looking to take advantage of market inefficiencies by investing in overlooked premium coupon callable bonds, helping to diversify reinvestment risk and offer federally tax-exempt income. The newly launched Easterly ROCMuni National Municipal Bond Strategy is structured for balanced, yield-seeking investors. It offers investors exposure to stable, federally tax-exempt income across various sectors and regions, benefiting from Easterly ROC Municipals' robust credit analysis and deeply experienced investment team, which co-managed a similar strategy during their time with the municipal bond team at OppenheimerFunds Rochester. "We're excited to leverage our experience and bring these products to market as a natural extension of Easterly's municipal bond investment offering," said Troy Willis, JD, CFA, Co-Head Municipals and Senior Portfolio Manager at Easterly ROC Municipals. "Combined, these strategies cater to a range of investor needs and risk tolerances, whether it's managing volatility and credit risk while delivering tax-exempt income or gaining exposure to a yield-driven total return approach in the long municipal sector." The strategies are structured to meet the evolving needs of yield-focused investors seeking stability, income, and after-tax performance in today's uncertain economic landscape. Both strategies will be actively managed by the Easterly ROC Municipals team, led by experienced municipal bond experts Troy Willis, JD, CFA, and Charlie Pulire, CFA, and reflect the same credit discipline and market expertise that has underpinned their success honed over nearly two decades of working together. For more information, please visit 1Inception 4/27/22Source: eVestment as of 3/31/2025. Percentile Ranking Universe: eVestment US Municipal Fixed Income – Short Duration consisting of 54 constituents. ABOUT EASTERLY Easterly Asset Management and its Strategic Partners provide private wealth and institutional investors with a portfolio of solutions across alternatives, active equity and active fixed income. Founded in 2019, Easterly's goal is to bring curated solutions to clients that make their portfolios better by partnering with trusted investment teams who have an established track record of delivering value to investors. Easterly enables high-performing managers to operate at scale by delivering best-in-class resources, risk management, operational support, infrastructure, and an institutional and wealth distribution team. As of December 31, 2024, Easterly and its Strategic Partners manage $60B of client assets. For more information, visit View source version on Contacts Media: Jen Zeilmanjzeilman@ Or Nneka Etonirueasterly@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
14-05-2025
- Business
- Business Wire
Easterly Asset Management Launches Two New Municipal Bond Offerings
BEVERLY, Mass.--(BUSINESS WIRE)-- Easterly Asset Management ('Easterly'), home to investment teams providing investors with a portfolio of solutions across alternatives, active equity, and active fixed income, today announced the launch of two municipal bond products, offered as separately managed accounts, Easterly ROCMuni Short Term Municipal Bond Strategy and the new Easterly ROCMuni National Municipal Bond Strategy. The offerings further expand Easterly's curated investment solutions toward private wealth and institutional investors. 'Launching these SMAs reinforces our commitment to deliver value for Easterly clients with solutions that make their portfolios better," said Darrell Crate, Founder and Managing Principal of Easterly Asset Management. 'With these new municipal bond offerings, Easterly aims to meet the growing demand for SMAs and help yield-focused investors achieve their income and risk-management goals in today's complex environment.' The Easterly ROCMuni Short Term Municipal Bond Strategy seeks to outperform traditional short-duration investments, such as money market funds and U.S. Treasuries, on an after-tax basis while maintaining a defensive posture. With a #1 ranking in its peer group since inception 1, the strategy offers compelling value for investors looking to take advantage of market inefficiencies by investing in overlooked premium coupon callable bonds, helping to diversify reinvestment risk and offer federally tax-exempt income. The newly launched Easterly ROCMuni National Municipal Bond Strategy is structured for balanced, yield-seeking investors. It offers investors exposure to stable, federally tax-exempt income across various sectors and regions, benefiting from Easterly ROC Municipals' robust credit analysis and deeply experienced investment team, which co-managed a similar strategy during their time with the municipal bond team at OppenheimerFunds Rochester. 'We're excited to leverage our experience and bring these products to market as a natural extension of Easterly's municipal bond investment offering,' said Troy Willis, JD, CFA, Co-Head Municipals and Senior Portfolio Manager at Easterly ROC Municipals. 'Combined, these strategies cater to a range of investor needs and risk tolerances, whether it's managing volatility and credit risk while delivering tax-exempt income or gaining exposure to a yield-driven total return approach in the long municipal sector." The strategies are structured to meet the evolving needs of yield-focused investors seeking stability, income, and after-tax performance in today's uncertain economic landscape. Both strategies will be actively managed by the Easterly ROC Municipals team, led by experienced municipal bond experts Troy Willis, JD, CFA, and Charlie Pulire, CFA, and reflect the same credit discipline and market expertise that has underpinned their success honed over nearly two decades of working together. For more information, please visit 1 Inception 4/27/22 Source: eVestment as of 3/31/2025. Percentile Ranking Universe: eVestment US Municipal Fixed Income – Short Duration consisting of 54 constituents. ABOUT EASTERLY Easterly Asset Management and its Strategic Partners provide private wealth and institutional investors with a portfolio of solutions across alternatives, active equity and active fixed income. Founded in 2019, Easterly's goal is to bring curated solutions to clients that make their portfolios better by partnering with trusted investment teams who have an established track record of delivering value to investors. Easterly enables high-performing managers to operate at scale by delivering best-in-class resources, risk management, operational support, infrastructure, and an institutional and wealth distribution team. As of December 31, 2024, Easterly and its Strategic Partners manage $60B of client assets. For more information, visit
Yahoo
07-05-2025
- Business
- Yahoo
Easterly Government Properties, Inc. (DEA): A Bull Case Theory
We came across a bullish thesis on Easterly Government Properties, Inc. (DEA) on Substack by Value Science. In this article, we will summarize the bulls' thesis on DEA. Easterly Government Properties, Inc. (DEA)'s share was trading at $20.2 as of April 29th. DEA's trailing and forward P/E were 44.49 and 32.05 respectively according to Yahoo Finance. A real estate mogul in a business suit, discussing the long-term growth of a REIT. Easterly Government Properties (DEA) is a real estate investment trust (REIT) that primarily leases properties to critical arms of the U.S. federal government, with 93% of lease income backed by the full faith and credit of the U.S. Treasury. The firm recently began to diversify modestly into state and local governments and select private sector tenants, but remains fundamentally anchored in recession-proof, long-term federal leases averaging 8.6 years. Despite this stability, DEA trades at a deeply discounted 6.7x P/FFO and is down 45% from its 52-week high, largely due to fears surrounding the federal government's effort—led by the Department of Government Efficiency (DOGE)—to cut waste through lease terminations. However, these fears appear overstated. DEA has experienced minimal direct impact, with just one small property known to be affected and none formally terminated due to DOGE's actions. CoStar data further supports this, showing only 13 of 800 terminated leases across all REITs, likely placing Easterly's exposure among the lowest. DOGE's terminations only apply after the firm lease term ends, meaning Easterly's weighted average firm term remains intact. Additionally, DOGE's mission may actually favor DEA over time. Easterly's portfolio already avoids wasteful properties and aligns with the administration's priorities—both in purpose and leadership. CEO Darrell Crate, a Republican aligned with the current administration's approach, emphasizes that Easterly develops cost-efficient properties that the government would struggle to build for less than triple the cost. Trump-era policies ending remote work and decentralizing federal offices from D.C. support Easterly's suburban and regional footprint, where only 7% of lease income is in the capital region. These structural tailwinds suggest that DEA is positioned to benefit, not suffer, from the evolving government footprint. The stock plunged further after a dividend cut on April 9, 2025—not due to DOGE—but because share issuance at depressed prices became an unsustainable funding source. With the dividend reset, Easterly can now fund operations more responsibly. Despite the overhang of rising interest rates—DEA's net debt is $1.6B with a 4.6% average rate—the worst-case interest cost increase would only reduce FFO to $2.44 per share, still implying 50% upside from current prices if assigned a conservative 12x P/FFO multiple. Analyst NAV estimates suggest an even higher fair value of $35. At ~$20/share, DEA offers a well-covered 9% dividend and uniquely counter-cyclical qualities, making it one of the few equities that could benefit from a recession or declining rates. The main remaining risk is dilution, but management has signaled it will only issue equity when accretive. With investment-grade debt, defensive cash flows, and structural tailwinds, DEA presents a compelling opportunity amid misplaced market fears.
Yahoo
01-05-2025
- Business
- Yahoo
Why Easterly Government Properties Stock Is Down Today
Easterly's results met expectations, but investors were more focused on other corporate actions taken in recent weeks. The company has the potential to be a winner from the effort to streamline government, but investors would be wise to be cautious right now. Government real estate owner Easterly Government Properties (NYSE: DEA) reported quarterly results that were roughly in line with expectations, but investors are still more focused on disappointing news the company released earlier in the month. Shares of Easterly traded down 3% as of 2 p.m. ET on Tuesday. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » As its name implies, Easterly is a real estate investment trust (REIT) that is focused on government properties. The company has been in the spotlight of late due to the efforts of the Department of Government Efficiency (DOGE) to cut federal spending, including real estate. Earlier this month, the REIT said it was reducing its quarterly dividend by 32% and implementing a 1-for-2.5 reverse stock split. CEO Darrell Crate said the move would align the company's dividend payout ratio with industry peers, but some investors had been attracted to Easterly thanks to its relatively high dividend yield. Shares lost 15% of their value on the announcement. On Tuesday, the company reported first-quarter funds from operations (FFO) of $0.73 per share on revenue of $78.7 million. The FFO number, which is a REIT equivalent for earnings, matched expectations, while revenue missed by $1.3 million. Easterly is in the investor penalty box following the early April announcement, but the latest results at least provide for some hope that the company remains on track. Crate continues to believe it can be a net beneficiary from DOGE, saying, "We have observed the U.S. government to be more receptive to cost saving efforts than in the past" and said Washington could be interested in partnering with private real estate owners instead of relying on government-owned buildings. The potential is there, but after a tumultuous April, Easterly has become a "show me" stock. Investors without a significant appetite for risk might want to limit this one to the watch list for now. Before you buy stock in Easterly Government Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Easterly Government Properties wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,818!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $666,416!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Lou Whiteman has positions in Easterly Government Properties. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy. Why Easterly Government Properties Stock Is Down Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Easterly Government Properties Reports First Quarter 2025 Results
Awarded New Federal Courthouse Development Project with 20-Year Non-Cancelable Lease Term Announces Accretive DC Government Acquisition with Nearly 12-year WALT Raises Lower End of 2025 Guidance WASHINGTON, April 29, 2025--(BUSINESS WIRE)--Easterly Government Properties, Inc. (NYSE: DEA) (the "Company" or "Easterly"), a fully integrated real estate investment trust ("REIT") focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government and its adjacent partners, today announced its results of operations for the quarter ended March 31, 2025. Highlights for the Quarter Ended March 31, 2025: Net income of $3.3 million, or $0.07 per share on a fully diluted basis Core FFO of $33.1 million, or $0.73 per share on a fully diluted basis Entered into a master note purchase agreement to issue an aggregate $125.0 million of senior unsecured notes in two tranches: (i) $25.0 million of 6.13% Series A Notes with a maturity date of March 20, 2030; and (ii) $100.0 million of 6.33% Series B Notes with a maturity date of March 20, 2032 Issued an aggregate of 1,514,266 shares of the Company's common stock in settlement of previously entered into forward sales transactions through the Company's $300.0 million ATM Program launched in June 2021 (the "2021 ATM Program"). These shares were then physically settled in the same quarter at a weighted average price per share of $27.40, raising net proceeds to the Company of approximately $40.9 million NOTE: Unless noted otherwise, all share and per share data have been adjusted for all periods presented to reflect a 1 for 2.5 reverse stock split effective April 28, 2025 (the "Reverse Stock Split"). "We took strong steps to position the Company for future growth opportunity during the quarter," said Darrell Crate, President & CEO of Easterly Government Properties. "With the DOGE initiative we have observed the U.S. Government to be more receptive to cost saving efforts than in the past. We believe this provides an opportunity for us to add more value as a public private partner as the U.S. Government has stated their intent for greater reliance on leased versus owned real estate." Portfolio Operations As of March 31, 2025, the Company or its JV owned 100 operating properties in the United States encompassing approximately 9.7 million leased square feet, including 92 operating properties that were leased primarily to U.S. Government tenant agencies, four operating properties leased primarily to tenant agencies of a U.S. state or local government and three operating properties that were entirely leased to private tenants. In addition, the Company wholly owned two properties in development that the Company expects will encompass approximately 0.2 million rentable square feet upon completion. The first re-development project, located in Atlanta, Georgia, is currently under construction and, once complete, a 20-year lease with the U.S. General Services Administration (GSA) is expected to commence for the beneficial use of the U.S. Food and Drug Administration (FDA). The second project, located in Flagstaff, Arizona, is currently under construction and, once complete, a 20-year lease with the GSA is expected to commence for the beneficial use of the United States Judiciary. As of March 31, 2025, the portfolio had a weighted average age of 15.9 years, based upon the date properties were built or renovated-to-suit, and had a weighted average remaining lease term of 9.8 years. On March 12, 2025, the Company was awarded a 20-year non-cancelable lease for a 40,035 square foot Federal District and Federal Magistrate Courthouse in Medford, Oregon ("JUD - Medford"). Closing of the acquisition of the underlying property to be redeveloped is subject to customary closing conditions. Balance Sheet and Capital Markets Activity As of March 31, 2025, the Company had total indebtedness of approximately $1.6 billion comprised of $155.1 million outstanding on its senior unsecured revolving credit facility, $100.0 million outstanding on its 2016 term loan facility (the "2016 Term Loan"), $174.5 million outstanding on its 2018 term loan facility, $1.0 billion of senior unsecured notes, and $155.2 million of mortgage debt (excluding unamortized premiums and discounts and deferred financing fees). The Company's outstanding debt had a weighted average maturity of 4.8 years and a weighted average interest rate of 4.6%. Further, the Company's Net Debt to total enterprise value was 56.2% and its Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio was 7.1x. On January 8, 2025, the Company amended the 2016 Term Loan. Easterly extended the maturity date of the 2016 Term Loan from January 30, 2025 to January 28, 2028. Further, the Company may exercise at its discretion two one-year extension options, subject to certain conditions, thus extending the maturity date as late as January 28, 2030. Easterly further secured increased borrowing capacity on the accordion feature from $150.0 million to $250.0 million. In connection with the 2016 Term Loan, the Company also entered into an interest rate swap to effectively fix SOFR at 3.8569% annually. By executing this swap, the Company provides greater certainty over its interest rate exposure. Borrowings under the 2016 Term Loan will continue to bear interest at a rate of SOFR, a credit spread adjustment of 0.10%, plus a spread of 1.20% to 1.70%, depending on the Company's leverage ratio. Given the Company's leverage ratio as of March 31, 2025, the 2016 Term Loan's spread to SOFR is set at 1.35%. On March 25, 2025, the Company announced it had entered into a master note purchase agreement to issue an aggregate $125.0 million of senior unsecured notes consisting of: $25.0 million of 6.13% Series A Notes with a maturity date of March 20, 2030; and $100.0 million of 6.33% Series B Notes with a maturity date of March 20, 2032. The Company, together with various subsidiaries of the Partnership, have guaranteed the Series A and B Senior Notes. In connection with issuing the Series B Notes, the Company also entered into treasury lock agreements. Dividend On April 9, 2025, the Board of Directors of Easterly approved a cash dividend for the first quarter of 2025 in the amount of $0.45 per common share. The dividend will be payable May 17, 2025 to shareholders of record on May 5, 2025. Subsequent Events On April 9, 2025, with the intent to right size the Company's payout ratio, the Company's Board of Directors approved a reduction of $0.085, or approximately 32.0% from the Company's prior quarter dividend of $0.265 per share (not adjusted for the Reverse Stock Split). The new quarterly dividend amount is now $0.18 per share (not adjusted for the Reverse Stock Split). On April 9, 2025, the Board of Directors also approved a 1-for-2.5 Reverse Stock Split of the Company's issued and outstanding shares of common stock, which was effective on April 28, 2025. The Reverse Stock Split, whereby every 2.5 issued and outstanding shares of common stock were exchanged for one share of common stock, reducing the number of shares outstanding from approximately 112.3 million to 44.9 million. The par value of the common stock remained unchanged at $0.01 per share. As a result of the Reverse Stock Split, the announced dividend of $0.18 per share was also adjusted to $0.45 per share ($1.80 per share per year). On April 3, 2025, the Company acquired a 289,873 square foot facility leased primarily to the District of Columbia Government with a lease through February 2038. On April 24, 2025, the Company settled 202,721 shares of the Company's common stock under our 2021 ATM Program and received $5.3 million of net proceeds. Guidance This guidance is forward-looking and reflects management's view of current and future market conditions. The Company's actual results may differ materially from this guidance. Outlook for the 12 Months Ending December 31, 2025 The Company is raising the lower end of its guidance for full-year 2025 Core FFO per share on a fully diluted basis at a range of $2.98 - $3.03. Low High Net income (loss) per share – fully diluted basis $ 0.48 0.53 Plus: Company's share of real estate depreciation and amortization $ 2.47 2.47 FFO per share – fully diluted basis $ 2.95 3.00 Plus: Company's share of depreciation of non-real estate assets $ 0.03 0.03 Core FFO per share – fully diluted basis $ 2.98 3.03 This guidance assumes approximately $140 million of wholly owned acquisitions and $25 - $75 million of gross development-related investment during 2025. Non-GAAP Supplemental Financial Measures This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this press release and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company's financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. A reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release following the consolidated financial statements. Additional detail can be found in the Company's most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the Securities and Exchange Commission from time to time. We present certain financial information and metrics "at Easterly's Share," which is calculated on an entity-by-entity basis. "At Easterly's Share" information, which we also refer to as being "at share," "pro rata," or "our share" is not, and is not intended to be, a presentation in accordance with GAAP. Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current Nareit definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items, nonrecurring expenditures and the unconsolidated real estate venture's allocated share of these adjustments. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company's ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies. Core Funds from Operations (Core FFO) adjusts FFO to present an alternative measure of the Company's operating performance, which, when applicable, excludes items which it believes are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), catastrophic event charges, depreciation of non-real estate assets, recovery of credit losses, and the unconsolidated real estate venture's allocated share of these adjustments. In future periods, the Company may also exclude other items from Core FFO that it believes may help investors compare its results. The Company believes Core FFO more accurately reflects the ongoing operational and financial performance of the Company's core business. EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture's allocated share of these adjustments. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies. Funds From Operations (FFO) is defined, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO includes the Company's share of FFO generated by unconsolidated affiliates. FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors. Net Debt and Adjusted Net Debt Net Debt represents the Company's consolidated debt and its share of unconsolidated debt adjusted to exclude its share of unamortized premiums and discounts and deferred financing fees, less its share of cash and cash equivalents and property acquisition closing escrow, net of deposit. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 25 of the Company's Q1 2025 Supplemental Information Package for further information. The Company's method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and may be presented on a pro forma basis. Accordingly, the Company's method may not be comparable to such other REITs. Other Definitions Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company's operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company's operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of "fully diluted" under GAAP. Conference Call Information The Company will host a webcast and conference call at 11:00 am Eastern time on April 29, 2025 to review the first quarter 2025 performance, discuss recent events and conduct a question-and-answer session. A live webcast will be available in the Investor Relations section of the Company's website. Shortly after the webcast, a replay of the webcast will be available on the Investor Relations section of the Company's website for up to twelve months. Please note that the full text of the press release and supplemental information package are also available through the Company's website at About Easterly Government Properties, Inc. Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly's experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit Forward Looking Statements We make statements in this press release that are considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "seeks," "should," "will," and variations of such words or similar expressions and include our guidance with respect to Net income (loss) and Core FFO per share on a fully diluted basis. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this press release for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues, including credit risk and risk that the U.S. Government reduces its spending on real estate or that it changes its preference away from leased properties; risks associated with ownership and development of real estate; the risk of decreased rental rates or increased vacancy rates; the loss of key personnel; general volatility of the capital and credit markets and the market price of our common stock; the risk we may lose one or more major tenants; difficulties in completing and successfully integrating acquisitions; failure of acquisitions or development projects to occur at anticipated levels or yield anticipated results; risks associated with our joint venture activities; risks associated with actual or threatened terrorist attacks; intense competition in the real estate market that may limit our ability to attract or retain tenants or re-lease space; insufficient amounts of insurance or exposure to events that are either uninsured or underinsured; uncertainties and risks related to adverse weather conditions, natural disasters and climate change; exposure to liability relating to environmental and health and safety matters; limited ability to dispose of assets because of the relative illiquidity of real estate investments and the nature of our assets; exposure to litigation or other claims; risks associated with breaches of our data security; risks associated with our indebtedness, including failure to refinance current or future indebtedness on favorable terms, or at all, failure to meet the restrictive covenants and requirements in our existing and new debt agreements, fluctuations in interest rates and increased costs to refinance or issue new debt; risks associated with derivatives or hedging activity; risks associated with mortgage debt or unsecured financing or the unavailability thereof, which could make it difficult to finance or refinance properties and could subject us to foreclosure; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and our financial condition and results of operations; and other risks and uncertainties detailed in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (SEC) on February 25, 2025, and under the heading "Risk Factors" in our other public filings. In addition, our anticipated qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward looking statements, whether as a result of new information, future events or otherwise. Balance Sheet (Unaudited, in thousands, except share amounts) March 31, 2025 December 31, 2024 Assets Real estate properties, net $ 2,573,509 $ 2,572,095 Cash and cash equivalents 8,459 19,353 Restricted cash 9,030 8,451 Tenant accounts receivable 70,531 71,172 Investment in unconsolidated real estate venture 314,546 316,521 Real estate loan receivable, net 43,760 34,081 Intangible assets, net 155,663 161,425 Interest rate swaps 145 717 Prepaid expenses and other assets 48,964 39,256 Total assets $ 3,224,607 $ 3,223,071 Liabilities Revolving credit facility 155,050 274,550 Term loan facilities, net 273,387 274,009 Notes payable, net 1,018,187 894,676 Mortgage notes payable, net 154,508 155,586 Intangible liabilities, net 14,093 14,885 Deferred revenue 118,340 120,977 Interest rate swaps 1,323 - Accounts payable, accrued expenses and other liabilities 91,161 101,271 Total liabilities 1,826,049 1,835,954 Equity Common stock, par value $0.01, 200,000,000 shares authorized, 44,702,490 and 43,188,224 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 447 432 Additional paid-in capital(1) 1,915,891 1,874,193 Retained earnings 134,981 131,854 Cumulative dividends (714,657 ) (686,044 ) Accumulated other comprehensive income (2,971 ) 683 Total stockholders' equity 1,333,691 1,321,118 Non-controlling interest in Operating Partnership 64,867 65,999 Total equity 1,398,558 1,387,117 Total liabilities and equity $ 3,224,607 $ 3,223,071 (1) As of December 31, 2024 and March 31, 2025, the Company reclassified $0.6 million from Common Stock to Additional Paid-in-Capital due to the reduction in shares outstanding in connection with the Reverse Stock Split effective April 28, 2025. Income Statement (Unaudited, in thousands, except share and per share amounts) Three Months Ended March 31, 2025 March 31, 2024 Revenues Rental income $ 75,546 $ 70,746 Tenant reimbursements 1,026 1,017 Asset management income 622 550 Other income 1,481 487 Total revenues 78,675 72,800 Expenses Property operating 17,799 16,592 Real estate taxes 7,957 8,229 Depreciation and amortization 26,797 23,800 Acquisition costs 307 419 Corporate general and administrative 6,215 6,455 Recovery of credit losses (238 ) - Total expenses 58,837 55,495 Other income (expense) Income from unconsolidated real estate venture 1,822 1,415 Interest expense, net (18,377 ) (13,836 ) Net income 3,283 4,884 Non-controlling interest in Operating Partnership (156 ) (258 ) Net income available to Easterly Government Properties, Inc. $ 3,127 $ 4,626 Net income available to Easterly Government Properties, Inc. per share: Basic $ 0.07 $ 0.11 Diluted $ 0.07 $ 0.11 Weighted-average common shares outstanding: Basic 43,224,145 40,797,257 Diluted 43,372,207 40,894,004 Net income, per share - fully diluted basis $ 0.07 $ 0.11 Weighted average common shares outstanding - fully diluted basis 45,420,667 43,086,640 EBITDA (Unaudited, in thousands) Three Months Ended March 31, 2025 March 31, 2024 Net income $ 3,283 $ 4,884 Depreciation and amortization 26,797 23,800 Interest expense 18,377 13,836 Tax expense 163 266 Unconsolidated real estate venture allocated share of above adjustments 2,341 2,074 EBITDA $ 50,961 $ 44,860 FFO and CAD (Unaudited, in thousands, except share and per share amounts) Three Months Ended March 31, 2025 March 31, 2024 Net income $ 3,283 $ 4,884 Depreciation of real estate assets 26,546 23,549 Unconsolidated real estate venture allocated share of above adjustments 2,279 2,002 FFO $ 32,108 $ 30,435 Adjustments to FFO: Loss on extinguishment of debt and modification costs $ 900 $ - Recovery of credit losses (238 ) - Natural disaster event expense, net of recovery 23 53 Depreciation of non-real estate assets 251 251 Unconsolidated real estate venture allocated share of above adjustments 17 17 Core FFO $ 33,061 $ 30,756 FFO, per share - fully diluted basis $ 0.71 $ 0.71 Core FFO, per share - fully diluted basis $ 0.73 $ 0.71 Core FFO $ 33,061 $ 30,756 Straight-line rent and other non-cash adjustments 251 (856 ) Amortization of above-/below-market leases (518 ) (594 ) Amortization of deferred revenue (1,762 ) (1,604 ) Non-cash interest expense 759 307 Non-cash compensation 1,421 1,229 Natural Disaster event expense, net of recovery (23 ) (53 ) Principal amortization (1,127 ) (1,117 ) Maintenance capital expenditures (285 ) (1,724 ) Contractual tenant improvements (612 ) (444 ) Unconsolidated real estate venture allocated share of above adjustments (20 ) (15 ) Cash Available for Distribution (CAD) $ 31,145 $ 25,885 Weighted average common shares outstanding - fully diluted basis 45,420,667 43,086,640 Net Debt and Adjusted Net Debt (Unaudited, in thousands) March 31, 2025 Total Debt(1) $ 1,609,722 Less: Cash and cash equivalents (9,689 ) Less: property acquisition closing escrow, net of deposit (7,200 ) Net Debt $ 1,592,833 Less: Adjustment for development projects(2) (138,909 ) Adjusted Net Debt $ 1,453,924 1 Excludes unamortized premiums / discounts and deferred financing fees. 2 See definition of Adjusted Net Debt on Page 4 of this release. View source version on Contacts Easterly Government Properties, S. WinterhalterSenior Vice President, Investor Relations & Operations202-596-3947ir@ Sign in to access your portfolio
