Easterly Government Properties, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Easterly Government Properties, Inc. has filed its 2023 10-K annual report.</b>

AI Summary

Easterly Government Properties, Inc. (DEA) filed a Annual Report (10-K) with the SEC on February 27, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Company is Easterly Government Properties, Inc., SIC code 6798 (Real Estate Investment Trusts). Principal business address: 2001 K Street NW, Suite 775 North, Washington, DC 20006. Incorporated in Maryland (MD). Filing date: February 27, 2024.

Why It Matters

For investors and stakeholders tracking Easterly Government Properties, Inc., this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's financial health, strategic direction, and potential risks associated with its real estate investments, particularly those leased to government entities.

Risk Assessment

Risk Level: medium — Easterly Government Properties, Inc. shows moderate risk based on this filing. The company's business is heavily reliant on government tenants, which introduces concentration risk and potential vulnerability to government budget changes or policy shifts.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand the company's exposure to government tenant dependencies and its strategies for mitigating these risks.

Key Numbers

• 20231231 — Fiscal Year End (Conformed period of report)
• 20240227 — Filing Date (Filed as of date)
• 6798 — SIC Code (Standard Industrial Classification)
• 001-36834 — SEC File Number (SEC file number)

Key Players & Entities

• Easterly Government Properties, Inc. (company) — Filer name
• 2001 K Street NW, Suite 775 North, Washington, DC 20006 (company) — Business address
• MD (company) — State of incorporation
• 20231231 (dollar_amount) — Conformed period of report
• 20240227 (dollar_amount) — Filed as of date
• DEA (company) — Ticker symbol
• Health Resources and Services Administration (company) — Tenant example
• United States Citizenship and Immigration Services (company) — Tenant example

FAQ

Risk Factors

• Dependence on Government Tenants [high — financial]: The company's revenue is substantially derived from leases with U.S. federal government agencies, making it susceptible to government budget constraints and policy changes.
• Real Estate Market Fluctuations [medium — market]: The value and rental income of its properties are subject to the broader real estate market conditions, including interest rate changes and economic downturns.
• Property Management and Maintenance [medium — operational]: Effective management and maintenance of a portfolio of specialized government facilities are crucial for tenant satisfaction and operational efficiency.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-27: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $14.50 — lion based on the closing sale price of $14.50 as reported on the New York Stock Excha
• $39.3 million — r 31, 2023, we received net proceeds of $39.3 million through the issuance of 1,950,000 share
• $46.8 million — common stock under our ATM Programs and $46.8 million through the issuance of 2,309,000 share
• $6.8 million — aggregate net proceeds of approximately $6.8 million from the sale of an aggregate 500,000 s
• $13.52 — combined initial forward sales price of $13.52 per share. As of December 31, 2023, we
• $380.6 million — had the capacity to issue an additional $380.6 million under our ATM Programs. As of December
• $1.3 b — had total indebtedness of approximately $1.3 billion, including borrowings of approxim
• $79.0 million — , including borrowings of approximately $79.0 million outstanding under our $450.0 million se
• $450.0 million — ely $79.0 million outstanding under our $450.0 million senior unsecured revolving credit facil

Filing Documents

• dea-20231231.htm (10-K) — 5987KB
• dea-ex21_1.htm (EX-21.1) — 75KB
• dea-ex23_1.htm (EX-23.1) — 3KB
• dea-ex31_1.htm (EX-31.1) — 13KB
• dea-ex31_2.htm (EX-31.2) — 13KB
• dea-ex32_1.htm (EX-32.1) — 10KB
• dea-ex97_1.htm (EX-97.1) — 41KB
• img215508203_0.jpg (GRAPHIC) — 47KB
• 0000950170-24-021249.txt (&nbsp;) — 21754KB
• dea-20231231.xsd (EX-101.SCH) — 2443KB
• dea-20231231_htm.xml (XML) — 4571KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 29 Item 1C. Cybersecurity 29 Item 2.

Properties

Properties 30 Item 3.

Legal Proceedings

Legal Proceedings 37 Item 4. Mine Safety Disclosures 37 Part II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38 Item 6. Reserved 39 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 52 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 52 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 52 Item 9A.

Controls and Procedures

Controls and Procedures 52 Item 9B. Other Information 53 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 53 Part III. Item 10. Directors, Executive Officers and Corporate Governance 54 Item 11.

Executive Compensation

Executive Compensation 54 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 54 Item 13. Certain Relationships and Related Transactions, and Director Independence 54 Item 14. Principal Accountant Fees and Services 54 Part IV. Item 15. Exhibits and Financial Statement Schedules 55 Item 16. Form 10-K Summary 58 PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We caution investors that forward-looking statements are based on management's beliefs and on assumptions made by, and information currently available to, management. When used, the words "anticipate", "believe", "estimate", "expect", "intend", "may", "might", "plan", "potential", "project", "result", "seek", "should", "target", "will", and similar expressions which do not relate solely to historical matters are intended to identify forward-looking statements. These statements are subject to risks, uncertainties, and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. We expressly disclaim any responsibility to update our forward-looking statements, whether as a result of new information, future events, or otherwise. Accordingly, investors should use caution in relying on forward-looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends. Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following: 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 e

B usiness

Item 1. B usiness General References to "Easterly," "we," "our," "us" and "our company" refer to Easterly Government Properties, Inc., a Maryland corporation, together with our consolidated subsidiaries including Easterly Government Properties LP, a Delaware limited partnership, which we refer to herein as our operating partnership. We present certain financial information and metrics "at Easterly Share," which is calculated on an entity-by-entity basis. At Easterly Share information, which we also refer to as being "at share," "pro rata," "our pro rata share" or "our share" is not, and is not intended to be, a presentation in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We are an internally managed real estate investment trust, or 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 primarily 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. We may also consider other potential opportunities to add properties to our portfolio, including acquiring properties leased to state and local governments with strong creditworthiness and other opportunities that directly or indirectly support the mission of select government agencies. As of December 31, 2023, we wholly owned 81 operating properties and nine operating properties through an unconsolidated join

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View this 10-K filing on SEC EDGAR