10-Q

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 September 30, 2018

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.)
2101 L Street NW, Suite 650, Washington, D.C.	20037
(Address of Principal Executive Offices)	(Zip Code)

(202) 595-9500

(Registrant’s telephone number, including area code)

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 October 31, 2018, the registrant had 60,818,841 shares of common stock, par value $0.01 per share, outstanding.

INDEX TO FINANCIAL STATEMENTS

	Page
Part I: Financial Information
Item 1: Financial Statements:
Consolidated Financial Statements
Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 (unaudited)	1
Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2018 and 2017 (unaudited)	2
Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2018 and 2017 (unaudited)	3
Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 (unaudited)	4
Notes to the Consolidated Financial Statements	6
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3: Quantitative and Qualitative Disclosures About Market Risk	31
Item 4: Controls and Procedures	31
Part II: Other Information
Item 1: Legal Proceedings	32
Item 1A: Risk Factors	32
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3: Defaults Upon Senior Securities	32
Item 4: Mine Safety Disclosures	32
Item 5: Other Information	32
Item 6: Exhibits	33
Signatures

Easterly Government Properties, Inc.

Consolidated Balance Sheets (unaudited)

(Amounts in thousands, except share amounts)

	September 30, 2018			December 31, 2017
Assets
Real estate properties, net	$	1,546,600		$	1,230,162
Cash and cash equivalents		6,922			12,682
Restricted cash		4,388			3,519
Deposits on acquisitions		7,225			750
Rents receivable		17,394			12,751
Accounts receivable		9,186			9,347
Deferred financing, net		2,636			945
Intangible assets, net		167,044			143,063
Interest rate swaps		6,958			4,031
Prepaid expenses and other assets		10,158			8,088
Total assets	$	1,778,511		$	1,425,338
Liabilities
Revolving credit facility		33,000			99,750
Term loan facilities, net		248,413			99,202
Notes payable, net		173,752			173,692
Mortgage notes payable, net		210,388			203,250
Intangible liabilities, net		33,038			38,569
Accounts payable and accrued liabilities		38,618			19,786
Total liabilities		737,209			634,249
Equity
Common stock, par value $0.01, 200,000,000 shares authorized,    60,818,841 and 44,787,040 shares issued and outstanding at September 30, 2018    and December 31, 2017, respectively		608			448
Additional paid-in capital		1,015,603			740,546
Retained earnings		12,241			7,127
Cumulative dividends		(123,282	)		(83,718	)
Accumulated other comprehensive income		6,089			3,403
Total stockholders’ equity		911,259			667,806
Non-controlling interest in Operating Partnership		130,043			123,283
Total equity		1,041,302			791,089
Total liabilities and equity	$	1,778,511		$	1,425,338

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 September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
Revenues
Rental income	$	35,219		$	30,079		$	99,967		$	83,600
Tenant reimbursements		4,086			3,554			11,658			10,156
Other income		132			225			758			592
Total revenues		39,437			33,858			112,383			94,348
Operating expenses
Property operating		7,780			6,718			21,563			18,904
Real estate taxes		4,228			3,452			11,773			9,166
Depreciation and amortization		16,109			13,950			45,331			40,091
Acquisition costs		300			206			1,023			1,194
Corporate general and administrative		3,614			2,920			10,696			9,506
Total expenses		32,031			27,246			90,386			78,861
Operating income		7,406			6,612			21,997			15,487
Other expenses
Interest expense, net		(4,924	)		(5,495	)		(15,981	)		(11,626	)
Net income		2,482			1,117			6,016			3,861
Non-controlling interest in Operating Partnership		(327	)		(175	)		(902	)		(700	)
Net income available to Easterly Government    Properties, Inc.	$	2,155		$	942		$	5,114		$	3,161
Net income available to Easterly Government    Properties, Inc. per share:
Basic	$	0.03		$	0.02		$	0.08		$	0.08
Diluted	$	0.03		$	0.02		$	0.08		$	0.08
Weighted-average common shares outstanding
Basic		60,446,199			39,962,471			51,051,388			38,098,805
Diluted		61,978,998			41,903,977			52,600,858			40,012,282
Dividends declared per common share	$	0.26		$	0.25		$	0.78		$	0.74

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 September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
Net income	$	2,482		$	1,117		$	6,016		$	3,861
Other comprehensive income:
Unrealized gain (loss) on interest rate swaps,    net		406			(111	)		2,927			(697	)
Other comprehensive income (loss)		406			(111	)		2,927			(697	)
Comprehensive income		2,888			1,006			8,943			3,164
Non-controlling interest in Operating    Partnership		(327	)		(175	)		(902	)		(700	)
Other comprehensive income attributable to    non-controlling interest		(9	)		77			(241	)		286
Comprehensive income attributable to Easterly    Government Properties, Inc.	$	2,552		$	908		$	7,800		$	2,750

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 nine months ended September 30,
	2018			2017
Cash flows from operating activities
Net income	$	6,016		$	3,861
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		45,331			40,091
Straight line rent		(4,253	)		(1,376	)
Amortization of above- / below-market leases		(6,737	)		(6,283	)
Amortization of unearned revenue		(127	)		(82	)
Amortization of loan premium / discount		(62	)		(64	)
Amortization of deferred financing costs		938			848
Non-cash compensation		2,307			2,215
Net change in:
Rents receivable		(404	)		265
Accounts receivable		161			(1,709	)
Prepaid expenses and other assets		(1,890	)		(1,632	)
Accounts payable and accrued liabilities		7,815			6,690
Net cash provided by operating activities		49,095			42,824
Cash flows from investing activities
Real estate acquisitions and deposits		(327,653	)		(342,566	)
Additions to operating properties		(4,064	)		(2,221	)
Additions to development properties		(38,891	)		(5,560	)
Net cash used in investing activities		(370,608	)		(350,347	)
Cash flows from financing activities
Payment of deferred financing costs		(3,208	)		(3,398	)
Issuance of common shares		297,805			107,190
Credit facility draws		57,500			108,000
Credit facility repayments		(124,250	)		(260,917	)
Term loan draws		150,000			100,000
Issuance of notes payable		—			175,000
Issuance of mortgage notes payable		—			127,500
Repayments of mortgage notes payable		(2,363	)		(2,221	)
Dividends and distributions paid		(47,541	)		(35,483	)
Payment of offering costs		(11,321	)		(4,222	)
Net cash provided by financing activities		316,622			311,449
Net increase in Cash and cash equivalents and Restricted cash		(4,891	)		3,926
Cash and cash equivalents and Restricted cash, beginning of period		16,201			6,491
Cash and cash equivalents and Restricted cash, end of period	$	11,310		$	10,417

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 nine months ended September 30,
	2018			2017
Cash paid for interest, net of capitalized interest	$	13,017		$	8,236
Supplemental disclosure of non-cash information
Additions to operating properties accrued, not paid	$	584		$	819
Additions to development properties accrued, not paid		14,061			719
Financing costs accrued, not paid		1			—
Offering costs accrued, not paid		8			27
Deferred asset acquisition costs accrued, not paid		86			—
Unrealized gain (loss) on interest rate swaps, net		2,927			(697	)
Debt assumed on acquisition of operating property		9,414			—
Exchange of Common Units for Shares of Common Stock
Non-controlling interest in Operating Partnership	$	(9,846	)	$	(20,401	)
Common stock		6			14
Additional paid-in capital		9,840			20,387
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, 2017, 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, 2017 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 1, 2018.

The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code, 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.

As of September 30, 2018, we wholly owned 56 operating properties in the United States, including 54 operating properties that were leased primarily to U.S. Government tenant agencies and two operating properties that were entirely leased to private tenants, encompassing approximately 4.8 million square feet in the aggregate. In addition, we wholly owned three properties under development that we expect will encompass approximately 0.3 million square feet upon completion. 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 with the tenant agency to meet its needs and objectives.

The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. The Company is the sole general partner of the Operating Partnership. The Company owned approximately 87.5% of the aggregate limited partnership interests in the Operating Partnership (“common units”) at September 30, 2018. 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 September 30, 2018, and the consolidated results of operations for the three and nine months ended September 30, 2018 and 2017 and the consolidated cash flows for the nine months ended September 30, 2018 and 2017. Certain prior year amounts have been reclassified to conform to the current year presentation. 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 and 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. Actual results could differ from those estimates.

6

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, 2017.

Revision of Previously Reported Consolidated Financial Statements

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2017, the Company identified an error in the estimated useful life utilized to amortize certain assets associated with three properties contributed at the time of the Company’s initial public offering in the first quarter of 2015. As a result of the error, Depreciation and amortization expense had been overstated and thereby Real estate properties, net, Intangible assets, net and Equity were understated. The Company concluded that the amounts are not material to any of its previously issued consolidated financial statements. However, to maintain proper comparability between our financial statements we have elected to revise prior periods. Accordingly, the Company revised these balances in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The effects of this revision to the consolidated financial statements are as follows (in thousands, except for per share data).

Effect of Revision For the Three Months Ended September 30, 2017	As Previously Reported		Adjustment			As Revised
Total revenues	$	33,858	$	—		$	33,858
Depreciation and amortization		14,141		(191	)		13,950
Total expenses		27,437		(191	)		27,246
Net income		926		191			1,117
Net income available to Easterly Government Properties, Inc.		782		160			942
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		0.02		—			0.02
Comprehensive income		815		191			1,006

Effect of Revision For the Nine Months Ended September 30, 2017	As Previously Reported		Adjustment			As Revised
Depreciation and amortization	$	40,663	$	(572	)	$	40,091
Total expenses		79,433		(572	)		78,861
Net income		3,289		572			3,861
Net income available to Easterly Government Properties, Inc.		2,693		468			3,161
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		0.07		0.01			0.08
Comprehensive income		2,592		572			3,164

Recently Adopted Accounting Pronouncements

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Please refer to Note 10 for more information pertaining to our adoption of this guidance.

On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230), which provides classification guidance for certain cash receipts and cash payments including payment of debt extinguishment costs, settlement of zero-coupon debt instruments, insurance claim payments and distributions from equity method investees. The Company adopted this ASU using the retrospective method and the implementation of this update did not have a material impact on our consolidated financial statements.

On January 1, 2018, the Company adopted and retrospectively applied ASU No. 2016-18, Statement of Cash Flows (Topic 230), which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company now reconciles both cash and cash equivalents and restricted cash in the accompanying Statements of Cash Flows for all periods, whereas under the prior guidance the Company explained the changes during the period for cash and cash equivalents only.

On January 1, 2018, the Company adopted ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term “in-substance nonfinancial asset.”  This ASU also adds guidance for partial sales of nonfinancial assets.  The Company adopted this ASU using the modified retrospective method and the implementation of this update did not have a material impact on our consolidated financial statements.

7

On January 1, 2018, the Company adopted ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting, which provides updated guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting under the topic.  The Company adopted this ASU using the prospective method to an award modified on or after the adoption date, however, the implementation of this update did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02, Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for in the same manner as operating leases today. As of September 30, 2018, the Company had a sublease for office space in Washington, DC expiring in June 2021 and a lease for office space in San Diego, CA expiring in April 2022.  The remaining contractual payments under the Company’s lease and sublease for office space aggregate $1.5 million.

The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases.  In connection with the new revenue guidance, we believe that the new revenue standard may apply to executory costs and other components of revenue deemed to be non-lease components, even when the revenue for such activities is not separately stipulated in the lease. In that case, we would need to separate the lease components of revenue due under leases from the non-lease components. Under the new guidance, we would continue to recognize the lease components of lease revenue on a straight-line basis over our respective lease terms as we do under prior guidance. However, we would recognize the non-lease components under the new revenue guidance as the related services are delivered. As a result, while the total revenue recognized over time would not differ under the new guidance, the recognition pattern could be different. The Company is currently in the process of evaluating the significance of the difference in the recognition pattern that would result from this change.

In July 2018, the FASB issued ASU 2018-11, Targeted Improvements to Topic 842 Leases. The improvements in ASU 2018-11 provide for (a) an optional new transition method for adoption that results in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and (b) a practical expedient for lessors, under certain circumstances, to combine the lease and non-lease components of revenues for presentation purposes.

Additionally, ASU 2016-02 will require that lessees and lessors capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease.  Under ASU 2016-02, allocated payroll costs and other costs that are incurred regardless of whether the lease is obtained will no longer be capitalized as initial direct costs and instead will be expensed as incurred.

In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which clarifies, corrects, or consolidates authoritative guidance issued in ASU 2016-02 and is effective upon adoption of ASU 2016-02.

ASU No. 2016-02 is effective for reporting periods beginning January 1, 2019, with modified retrospective application for each reporting period presented at the time of adoption or utilizing the optional transition method under ASU 2018-11. Early adoption is also permitted for this guidance. The Company is in the process of evaluating the impact of this new guidance.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of either adopting the new standard early using a modified retrospective transition method in any interim period after issuance of the update, or alternatively adopting the new standard for fiscal years beginning after December 15, 2018. This adoption method may require the Company to recognize the cumulative effect of initially applying the ASU as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the update. While the Company continues to assess all potential impacts of the standard, we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

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3. Real Estate and Intangibles

During the nine months ended September 30, 2018, we acquired ten operating properties in asset acquisitions, consisting of VA – Golden, VA – San Jose, and the First Closing Properties (as defined below) for an aggregate purchase price of $321.0 million. We allocated the aggregate purchase price based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands):

	Total
Real estate
Land	$	18,835
Building		261,883
Acquired tenant improvements		7,798
Total real estate		288,516
Intangible assets
In-place leases		38,263
Acquired leasing commissions		4,198
Above-market leases		1,307
Total intangible assets		43,768
Intangible liabilities
Below-market leases		(1,827	)
Total intangible liabilities		(1,827	)
Purchase price		330,457
Less: Mortgage note assumed		(9,414	)
Net assets acquired	$	321,043

The intangible assets and liabilities of operating properties acquired during the nine months ended September 30, 2018 has a weighted average amortization period of 6.39 years as of September 30, 2018. During the nine months ended September 30, 2018, we included $3.0 million of revenues and $0.5 million of net income in our consolidated statement of operations related to VA – Golden,VA – San Jose, and the First Closing Properties (as defined below).

On June 15, 2018, we entered into a purchase and sale agreement to acquire a 1,479,762-square foot portfolio of 14 properties (the “Portfolio Properties”) for an aggregate purchase price of approximately $430.0 million.   On September 13, 2018, we closed on the acquisition of eight of the Portfolio Properties (the “First Closing”).  The eight properties acquired in the First Closing, consisting of an aggregate of 1,024,036 square feet, include the following (listed by primary tenant agency, if applicable, and location): Various GSA – Buffalo, NY, Various GSA – Chicago, IL, TREAS – Parkersburg, WV, SSA – Charleston, WV, FBI – Pittsburgh, PA, GSA – Clarksburg, WV, ICE – Pittsburgh, PA and SSA – Dallas, TX (collectively, the “First Closing Properties”).  Please refer to Note 12 for information regarding the six remaining Portfolio Properties.

During the nine months ended September 30, 2018, we incurred $1.0 million of acquisition-related expenses including $0.8 million of internal costs associated with property acquisitions.

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Consolidated Real Estate and Intangibles

Real estate and intangibles consisted of the following as of September 30, 2018 (amounts in thousands):

	Total
Real estate properties, net
Land	$	152,999
Building		1,364,862
Acquired tenant improvements		55,301
Construction in progress		67,950
Accumulated depreciation		(94,512	)
Total Real estate properties, net		1,546,600
Intangible assets, net
In-place leases		198,383
Acquired leasing commissions		42,664
Above market leases		10,762
Accumulated amortization		(84,765	)
Total Intangible assets, net		167,044
Intangible liabilities, net
Below market leases		(64,682	)
Accumulated amortization		31,644
Total Intangible liabilities, net	$	(33,038	)

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 September 30, 2018 (amounts in thousands):

	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2018	$	342	$	2,213
2019		1,318		7,379
2020		1,081		6,550
2021		683		4,589
2022		618		2,982

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.

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4. Debt

At September 30, 2018, our consolidated borrowings consisted of the following (amounts in thousands):

	Principal Outstanding			Interest	Current
Loan	September 30, 2018			Rate (1)	Maturity
Revolving credit facility:
Revolving credit facility (2)	$	33,000		L + 125bps	June 2022 (3)
Total revolving credit facility		33,000
Term loan facilities:
2016 term loan facility		100,000		3.12% (4)	September 2023
2018 term loan facility		150,000		L + 120bps	June 2023
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,587	)
Total term loan facilities, net		248,413
Notes payable:
Senior unsecured notes payable, series A		95,000		4.05%	May 2027
Senior unsecured notes payable, series B		50,000		4.15%	May 2029
Senior unsecured notes payable, series C		30,000		4.30%	May 2032
Total notes payable		175,000
Less: Total unamortized deferred financing fees		(1,248	)
Total notes payable, net		173,752
Mortgage notes payable:
CBP - Savannah		13,676		3.40% (5)	July 2033
ICE - Charleston		18,934		4.21% (5)	January 2027
MEPCOM - Jacksonville		10,121		4.41% (5)	October 2025
USFS II - Albuquerque		16,660		4.46% (5)	July 2026
DEA - Pleasanton		15,700		L + 150bps (5)	October 2023
VA - Loma Linda		127,500		3.59% (5)	July 2027
VA - Golden		9,380		5.00% (5)	April 2024
Total mortgage notes payable		211,971
Less: Total unamortized deferred financing fees		(1,882	)
Less: Total unamortized premium/discount		299
Total mortgage notes payable, net		210,388
Total debt	$	665,553

(1) At September 30, 2018, the one-month LIBOR (“L”) was 2.26%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our revolving credit facility and term loan facilities is based on the Company’s consolidated leverage ratio, as defined in the respective loan agreements.

(2) Available capacity of $417.0 million at September 30, 2018 with an accordion feature that provides additional capacity of up to $250.0 million, subject to the satisfaction of customary terms and conditions.

(3) Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

(4) The interest rate is calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 3.12% annually, based on the Company’s consolidated leverage ratio, as defined in the 2016 term loan facility agreement.

(5) Effective interest rates are as follows: CBP – Savannah 4.12%, ICE – Charleston 3.93%, MEPCOM – Jacksonville 3.89%, USFS II – Albuquerque 3.92%, DEA – Pleasanton 1.8%, VA – Loma Linda 3.78%, VA – Golden 5.03%.

On June 18, 2018, we entered into an amended and restated senior unsecured credit facility (our “amended senior unsecured credit facility”).  Our amended senior unsecured credit facility increased the total borrowing capacity of our existing senior unsecured credit facility by $200.0 million for a total credit facility size of $600.0 million, consisting of two components: (i) a $450.0 million senior unsecured revolving credit facility (the “revolving credit facility”), and (ii) a $150.0 million senior unsecured term loan facility (the “2018 term loan facility”). The revolving credit facility also includes an accordion feature that will provide us with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250.0 million.

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The Operating Partnership is the borrower, and we and certain of our subsidiaries that directly own certain of our properties are guarantors under our amended senior unsecured credit facility. The revolving credit facility matures in four years and the 2018 term loan facilitymatures in five years.  In addition, the revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

Our amended senior unsecured credit facility bears interest, at our option, either at:

•a Eurodollar rate equal to a periodic fixed rate equal to LIBOR plus, a margin ranging from 1.25% to 1.80% for advances under the revolving credit facility and a margin ranging from 1.20% to 1.75% for advances under the 2018 term loan facility; or

•a fluctuating rate equal to the sum of (a) the highest of (x) Citibank, N.A.’s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month Eurodollar rate plus 1.00% plus (b) a margin ranging from 0.25% to 0.80% for advances under the revolving credit facility and a margin ranging from 0.20% to 0.75% for advances under the 2018 term loan facility, in each case with a margin based on our leverage ratio.

The 2018 term loan facility had a 364-day delayed draw period and is prepayable without penalty for the entire term of the loan. On September 10, 2018, we fully drew $150.0 million on our 2018 term loan facility.

In addition, on June 18, 2018, we entered into a second amendment to our existing $100.0 million senior unsecured term loan facility (the “2016 term loan facility”).  The second amendment amends certain covenants and other provisions in the 2016 term loan facility to conform to changes made to such covenants and other provisions in our amended senior unsecured credit facility.

Financial Covenant Considerations

The Company was in compliance with all financial and other covenants as of September 30, 2018 related to its revolving credit facility, 2016 term loan facility, 2018 term loan facility, notes payable and mortgage notes payable.

Fair Value of Debt

As of September 30, 2018, the carrying value of our revolving credit facility approximated fair value. In determining the fair value we considered the short term maturity, variable interest rate and credit spreads. We deem the fair value of our credit facility as a Level 3 measurement.

As of September 30, 2018, the carrying value of our 2016 term loan facility approximated fair value. In determining the fair value we considered the variable interest rate and credit spreads. We deem the fair value of our 2016 term loan facility as a Level 3 measurement.

As of September 30, 2018, the carrying value of our 2018 term loan facility approximated fair value. In determining the fair value we considered the variable interest rate and credit spreads. We deem the fair value of our 2018 term loan facility as a Level 3 measurement.

At September 30, 2018, the fair value of our notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our notes payable instruments as a Level 3 measurement. At September 30, 2018, the fair value of our notes payable was $168.9 million.

At September 30, 2018, the fair value of our mortgage notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our mortgage notes payable as a Level 3 measurement. At September 30, 2018, the fair value of our mortgage notes payable was $202.8 million. 

5. Derivatives and Hedging Activities

As of September 30, 2018, the Company had two outstanding interest rate swaps with an aggregate notional value of $100.0 million that were designated as cash flow hedges. The swaps had an effective date of March 29, 2017 and extend until the maturity of our 2016 term loan facility on September 29, 2023. The swaps effectively fix the interest rate under our 2016 term loan facility at 3.12% annually based on the Company’s current consolidated leverage ratio and a variable interest rate of one-month LIBOR.

Cash Flow Hedges of Interest Rate Risk

As of September 30, 2018 our swaps were classified as an asset on our consolidated balance sheet at $7.0 million. The effective portion of changes in the fair value of derivatives designated and qualified as cash flow hedges is recorded in accumulated other

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comprehensive income and will be reclassified to interest expense in the period that the hedged forecasted transactions affect earnings on the Company’s consolidated variable rate debt.  The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings into interest expense.  For thethree and nine months ended September 30, 2018the amount of unrealized gains recognized in accumulated other comprehensive income on interest rate swaps was $0.6 million and $3.3 million,respectively.For thethree and nine months ended September 30, 2018 the amount of gain reclassified from accumulated other comprehensive income into interest expense was $0.2 million and $0.3million, respectively. Additionally, during the three and nine months ended September 30, 2018, the Company did not record any hedge ineffectiveness. For the three and nine months ended September 30, 2017 the amount of unrealized loss recognized in accumulated other comprehensive income on interest rate swaps was $0.2 million and $0.8 million, respectively. For the three and nine months ended September 30, 2017 the amount of loss reclassified from accumulated other comprehensive income into interest expense was $0.1 million and $0.2 million, respectively. Additionally, during the three and nine months ended September 30, 2017, the Company did not record any hedge ineffectiveness.

The Company estimates that $1.2 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next 12 months.

Credit-Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on such indebtedness.  As of September 30, 2018, the Company did not have any derivatives in a net liability position.

6. Fair Value Measurements

Accounting standards define fair value as the exit price, or the amount that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The standards also establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.  Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances.  The hierarchy of these inputs is broken down into three levels: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Categorization within the valuation hierarchy is based upon the lowest level of input that is most significant to the fair value measurement.

Recurring fair value measurements

The fair values of our interest rate swaps are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities in such interest rates.   While the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties.  The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of September 30, 2018 were classified as Level 2 of the fair value hierarchy.  

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, other assets and accounts payable and accrued expenses are reasonable estimates of fair values because of the short maturities of these instruments. For our disclosure of debt fair values in Note 4, we estimated the fair value of our 2016 and 2018 term loan facility based on the variable interest rate and credit spreads (categorized within Level 3 of the fair value hierarchy) and estimated the fair value of our other debt based on the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximate current market rates for loans, or groups of loans, with similar maturities and credit quality, and the estimated future payments included scheduled principal and interest payments.  Fair value estimates are made as of a specific point in time, are subjective in nature and involve uncertainties and matters of significant judgment.  Settlement at such fair value amounts may not be possible and may not be a prudent management decision.

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The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of  September 30, 2018
Balance Sheet Line Item	Level 1		Level 2		Level 3
Interest rate swaps - Asset	$	—	$	6,958	$	—

7. Equity

The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2018 and 2017 (amounts in thousands, except share amounts):

	Shares		Common Stock Par Value		Additional Paid-in Capital			Retained Earnings (Deficit)		Cumulative Dividends			Accumulated Other Comprehensive Income			Non- controlling Interest in Operating Partnership			Total Equity
Nine months ended September 30, 2018
Balance at December 31, 2017		44,787,040	$	448	$	740,546		$	7,127	$	(83,718	)	$	3,403		$	123,283		$	791,089
Stock based compensation				—		294			—		—			—			2,013			2,307
Dividends and distributions paid				—		—			—		(39,564	)		—			(7,977	)		(47,541	)
Grant of unvested restricted stock		21,328		—		—			—		—			—			—			—
Redemption of common units for    shares of common stock		628,436		6		9,840			—		—			—			(9,846	)		—
Issuance of common stock		15,382,037		154		286,350			—		—			—			—			286,504
Unrealized gain on interest rate swaps,    net				—		—			—		—			2,686			241			2,927
Net income				—		—			5,114								902			6,016
Allocation of non-controlling interest    in Operating Partnership				—		(21,427	)		—		—			—			21,427			—
Balance at September 30, 2018		60,818,841	$	608	$	1,015,603		$	12,241	$	(123,282	)	$	6,089		$	130,043		$	1,041,302
Nine months ended September 30, 2017
Balance at December 31, 2016		36,874,810	$	369	$	597,164		$	2,679	$	(42,794	)	$	3,038		$	137,844		$	698,300
Stock based compensation				—		240			—		—			—			1,975			2,215
Dividends and distributions paid				—		—			—		(29,401	)		—			(6,082	)		(35,483	)
Grant of unvested restricted stock		17,912		—		—			—		—			—			—			—
Redemption of common units for    shares of common stock		1,361,594		14		20,387			—		—			—			(20,401	)		—
Issuance of common stock		5,619,480		56		102,885			—		—			—			—			102,941
Unrealized loss on interest rate swaps,    net				—		—			—		—			(411	)		(286	)		(697	)
Net income				—		—			3,161		—			—			700			3,861
Allocation of non-controlling interest    in Operating Partnership				—		(1,516	)		—		—			—			1,516			—
Balance at September 30, 2017		43,873,796	$	439	$	719,160		$	5,840	$	(72,195	)	$	2,627		$	115,266		$	771,137

The Company granted 891,000 long term incentive plan units in the Operating Partnership (“LTIP units”) on May 6, 2015 and 40,000 LTIP units on February 26, 2016 to members of management as long-term incentive compensation under the 2015 Equity Incentive Plan, as amended (the “2015 Equity Incentive Plan”) subject to the Company achieving certain absolute and relative total shareholder returns through the performance period, which ended on December 31, 2017.  Based on the Company’s absolute and relative total shareholder return performance through the end of the performance period, the compensation committee of the Company’s board of directors determined that an aggregate of 2,079,297 LTIP units were earned. Under the terms of the awards, earned awards vested 50% on February 15, 2018 with the remaining 50% vesting on February 6, 2019, subject to the grantee’s continued employment.

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On January 4, 2018, the Company granted an aggregate of 173,381 performance-based LTIP units to members of management under the 2015 Equity Incentive Plan, subject to the Company achieving certain absolute and relative total shareholder returns through the performance period.  The awards consist of three separate tranches of 32,448 LTIP units, 55,463 LTIP units and 85,470 LTIP units with performance periods ending on December 31, 2018, December 31, 2019 and December 31, 2020, respectively. The performance criteria for each tranche is based 75% on the Company’s absolute total shareholder return performance and 25% on the Company’s relative total shareholder return performance during the relevant performance period, with 50% of the LTIP Units vesting when earned following the end of the applicable performance period and 50% of the earned award subject to an additional one year of vesting.

On April 3, 2018, the Company issued an aggregate of 2,236 shares of restricted common stock to certain employees pursuant to our 2015 Equity Incentive Plan. The restricted common stock grants will vest upon the second anniversary of the grant date so long as the grantee remains an employee of the Company on such date.

In connection with our 2018 annual meeting of stockholders, we issued an aggregate of 19,092 shares of restricted common stock to our non-employee directors pursuant to our 2015 Equity Incentive Plan. The restricted common stock grants will vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting.

In connection with the liquidation of certain private investment funds that contributed assets in our initial public offering, we issued 628,436 shares of our common stock between January 1, 2018 and September 30, 2018 upon redemption of 628,436 common units in accordance with the terms of the partnership agreement of the Operating Partnership.

A summary of our shares of restricted common stock and LTIP unit awards at September 30, 2018 is as follows:

	Restricted Shares			Restricted Shares Weighted Average Grant Date Fair Value Per Share		LTIP Units			LTIP Units Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2017		17,912		$	19.72		926,000		$	8.91
Granted		21,328			20.87		173,381			18.31
Vested		(15,220	)		19.71		(463,000	)		8.91
Forfeited		—			—		—			—
Outstanding, September 30, 2018		24,020		$	20.74		636,381		$	11.47

We recognized $2.3 million in compensation expense related to our shares of restricted common stock and the LTIP unit awards for the nine months ended September 30, 2018.  As of September 30, 2018, unrecognized compensation expense for both sets of awards was $2.9 million, which will be amortized over the vesting period.

A summary of dividends declared by the board of directors per share of common stock and per common unit at the date of record is as follows:

Quarter	Declaration Date	Record Date	Pay Date	Dividend (1)
Q1 2018	May 3, 2018	June 11, 2018	June 28, 2018	$	0.26
Q2 2018	August 1, 2018	September 13, 2018	September 27, 2018	$	0.26
Q3 2018	October 29, 2018	December 13, 2018	December 27, 2018	$	0.26

(1) Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of LTIP units are entitled to receive dividends per LTIP unit equal to 10% of the dividend paid per common unit.  After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit.

On March 3, 2017, we entered into separate equity distribution agreements with each of Citigroup Global Markets Inc., BTIG, LLC, Jefferies LLC, Raymond James & Associates, Inc., RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. (collectively, the “managers”), pursuant to which we may issue and sell the shares of our common stock having an aggregate offering price of up to $100.0 million from time to time through the managers, acting as sales agents and/or principals (the “ATM program”). The sales of shares of our common stock under the equity distribution agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended.

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The following table sets forth certain information with respect to the ATM program as ofSeptember 30, 2018:

	Number of Shares Sold		Net Proceeds
For the year ended December 31, 2017		1,569,514	$	33,263
For the three months ended March 31, 2018		671,666		13,532
For the three months ended June 30, 2018		1,010,371		20,208
For the three months ended September 30, 2018		—		—
Total		3,251,551	$	67,003

We have used the proceeds from such sales for general corporate purposes. As of September 30, 2018, we had approximately $32.3 million of gross sales of our common stock available under the ATM program.

On June 21, 2018, we completed an underwritten public offering of an aggregate of 20,700,000 shares of our common stock, consisting of (i) 13,700,000 shares sold by us to the underwriters (including 2,700,000 shares pursuant to the underwriters’ exercise of their option to purchase additional shares) and (ii) 7,000,000 shares offered and sold on a forward basis in connection with forward sales agreements entered into with certain financial institutions, acting as forward purchasers.  We received approximately $252.9 million in net proceeds from the sale of shares offered by us in the offering, after deducting underwriting discounts and commissions and our offering expenses. Subject to the Company’s right to elect cash or net share settlement, we expect to physically settle the forward sales agreements no later than December 21, 2018. Assuming the forward sales agreements are physically settled in full, we expect to receive an additional $129.3 million of net proceeds, after deducting underwriting discounts, commissions and estimated offering expenses.

8. Earnings Per Share

Basic earnings or loss per share of common stock (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares of common stock outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented. Unvested restricted shares and unvested LTIP units are considered participating securities, which require the use of the two-class method for the computation of basic and diluted earnings per share.

The following table sets forth the computation of the Company’s basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2018 and 2017 (amounts in thousands, except per share amounts):

	For the three months ended September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
Numerator
Net income	$	2,482		$	1,117		$	6,016		$	3,861
Less: Non-controlling interest in Operating    Partnership		(327	)		(175	)		(902	)		(700	)
Net income available to Easterly Government    Properties, Inc.		2,155			942			5,114			3,161
Less: Dividends on participating securities		(281	)		(28	)		(842	)		(81	)
Net income available to common stockholders	$	1,874		$	914		$	4,272		$	3,080
Denominator for basic EPS		60,446,199			39,962,471			51,051,388			38,098,805
Dilutive effect of share-based compensation awards		6,204			4,673			8,867			9,193
Dilutive effect of LTIP units (1)		1,012,448			1,936,833			1,172,676			1,904,284
Dilutive effect of shares issuable under forward    sales agreements		514,147			—			367,927			—
Denominator for diluted EPS		61,978,998			41,903,977			52,600,858			40,012,282
Basic EPS	$	0.03		$	0.02		$	0.08		$	0.08
Diluted EPS	$	0.03		$	0.02		$	0.08		$	0.08

(1) During the three and nine months ended September 30, 2018, there were approximately 173,381 unvested performance-based LTIP units that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

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9. Operating Leases

Our rental properties are subject to generally non-cancelable operating leases generating future minimum contractual rent payments due from tenants. As of September 30, 2018, future non-cancelable minimum contractual rent payments are as follows (amounts in thousands):

	Payments due by period
	Total		2018		2019		2020		2021		2022		Thereafter
Operating Leases
Minimum lease payments	$	1,075,191		33,971		137,136		126,906		102,989		87,492		586,697

The Company’s consolidated operating properties were 100% occupied by 37 tenants at September 30, 2018.  

For the nine months ended September 30, 2018 we recognized $88.9 million in rental income attributable to base rent, $6.7 million in rental income attributable to the amortization of our above- and below-market leases and a straight-line adjustment of $4.2 million.  

10. Revenue

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method and applied it to all contracts that were not completed as of January 1, 2018. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and replaced the existing revenue recognition guidance.  

The adoption of Topic 606 did not have an impact on the Company’s historical financial statements as the revenue that falls under the scope of this guidance is limited to tenant construction projects and the associated management fee, the recognition of which did not change from how the Company has historically accounted for these projects upon adoption of the new guidance.  Tenant construction project reimbursements consist primarily of subcontracted costs that are reimbursed to the Company by the tenant.  

Historically, the Company has accounted for tenant construction project reimbursement arrangements using the percentage of completion method and will continue to recognize revenue from tenant construction projects using the percentage of completion method when the revenue and costs for such projects can be estimated with reasonable accuracy; when these criteria do not apply to a project, the Company recognizes revenue from that project using the completed contract method. Under the percentage of completion method, the Company recognizes a percentage of the total revenue on a project based on the cost of services provided on the project as of a point in time relative to the total costs on the project.  The duration of the majority of tenant construction project reimbursement arrangements are less than a year and payment is typically due once a project is complete and work has been accepted by the tenant.  For those projects ongoing as of September 30, 2018 and with a duration of greater than one year, the aggregate amount of transaction price allocated to remaining performance obligations at the end of the reporting period was $0.1 million, which will be recognized as revenue prior to the end of 2018 using the percentage of completion method as discussed above.

The table below sets forth revenue from tenant construction projects disaggregated by tenant agency for the three and nine months ended September 30, 2018 (in thousands).

	For the three months ended September 30,		For the nine months ended September 30,
Tenant	2018		2018
Administrative Office of the U.S. Courts (“AOC”)	$	26	$	138
Drug Enforcement Administration (“DEA”)		17		203
Federal Bureau of Investigation (“FBI”)		204		329
Immigration and Customs Enforcement (“ICE”)		—		9
National Park Service (“NPS”)		—		31
Social Security Administration (“SSA”)		17		31
U.S. Coast Guard (“USCG”)		—		6
U.S. Citizenship and Immigration Services (“USCIS”)		—		39
U.S. Forest Service (“USFS”)		342		432
Department of Veteran Affairs (“VA”)		572		2,605
	$	1,178	$	3,823

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The balance in Accounts receivable related to tenant construction projects was $2.0 million as of September 30, 2018and $3.0 million as of December 31, 2017.There werenocontract assets or liabilities as of September 30, 2018.

11. Concentrations Risk

Concentrations of credit risk arise for the Company when multiple tenants of the Company are engaged in similar business activities, are located in the same geographic region or have similar economic features that impact in a similar manner their ability to meet contractual obligations, including those to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk.

As stated in Note 1 above, the Company leases commercial space to the U.S. Government or nongovernmental tenants. At September 30, 2018, the U.S Government accounted for approximately 98.7% of rental income and non-governmental tenants accounted for the remaining approximately 1.3%.

Fifteen of our 56 operating properties are located in California, accounting for approximately 21.5% of our total rentable square feet and approximately 29.7% of our total annualized lease income as of September 30, 2018. In addition, we owned two properties under development located in California. To the extent that weak economic or real estate conditions or natural disasters affect California more severely than other areas of the country, our business, financial condition and results of operations could be significantly impacted.

12. Subsequent Events

For its consolidated financial statements as of September 30, 2018, the Company evaluated subsequent events and noted the following significant events:

On October 1, 2018, the FEMA – Tracy development project was substantially completed and a 20-year non-cancelable lease commenced with the GSA for the beneficial use of the Federal Emergency Management Agency (“FEMA”).

On October 3, 2018, we entered into a third letter amendment (the “Third Amendment”) to the 2016 term loan facility.  The Third Amendment reduced the interest rate margin applicable to borrowings under the 2016 term loan facility and extended the maturity date by six months to March 29, 2024.

On October 16, 2018, we completed the acquisition of three of the 14 Portfolio Properties (the “Second Closing”).  The three properties acquired in the Second Closing consist of an aggregate of 100,300 square feet and include the following (listed by primary tenant agency and location): AOC – Charleston, SC, VA – Baton Rouge, LA and DEA – Bakersfield, CA.  As a result of the First Closing and the Second Closing, we have completed the acquisition of 11 of the 14 Portfolio Properties.  We expect to close on the remaining three Portfolio Properties prior to December 31, 2018, subject to the satisfaction of customary closing conditions.  

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

Forward-Looking Statements

This Quarterly Report on Form 10-Q 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”, “project”, “result”, “should”, “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:

• the factors included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the factors included under the heading “Risk Factors” in the Company’s other public filings;

• 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;

• 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 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; and

• 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.

For a further discussion of these and other factors, see the section entitled “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017.

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Overview

References to “we,” “our,” “us” and “the 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 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, or GSA. Our objective is to generate attractive risk-adjusted returns for our stockholders over the long term through dividends and capital appreciation.

As of September 30, 2018, we wholly owned 56 operating properties in the United States, including 54 operating properties that were leased primarily to U.S. Government tenant agencies and two operating properties that were entirely leased to private tenants, encompassing approximately 4.8 million square feet in the aggregate. In addition, we wholly owned three properties under development that we expect to encompass approximately 0.3 million square feet upon completion. 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 with the tenant agency to meet its needs and objectives.

Our operating partnership holds substantially all of our assets and conducts substantially all of our business. As of September 30, 2018, we owned approximately 87.5% of the aggregate limited partnership interests in our operating partnership, or common units. We have elected to be taxed as a REIT and operate in a manner that we believe allows us to continue to qualify as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2015.

Recent Acquisitions

On May 24, 2018, we acquired a 56,753 square foot Department of Veteran Affairs (VA) facility in Golden, CO. The building was originally constructed in 1996 and fully renovated in 2011 to meet the specific design needs of the VA. The facility is leased to the VA for an initial 15-year lease term, which expires in September 2026.

On July 11, 2018, we acquired a 90,085 square foot VA facility in San Jose, CA. The building was constructed in 2018 and is 100% leased to the VA for an initial, non-cancelable lease term of 20 years through February 2038.

On June 15, 2018, we entered into a purchase and sale agreement to acquire a 1,479,762-square foot portfolio of 14 properties, which we refer to as the portfolio acquisition properties, for an aggregate purchase price of approximately $430.0 million. On September 13, 2018, we closed on the acquisition of eight of the 14 portfolio acquisition properties, consisting of an aggregate of 1,024,036 square feet and including the following (listed by primary tenant agency, if applicable, and location): Various GSA – Buffalo, NY, Various GSA – Chicago, IL, TREAS – Parkersburg, WV, SSA – Charleston, WV, FBI – Pittsburgh, PA, GSA – Clarksburg, WV, ICE – Pittsburgh, PA and SSA – Dallas, TX.  On October 16, 2018, we completed the acquisition of three of the remaining six portfolio acquisition properties, consisting of an aggregate of 100,300 square feet and including the following (listed by primary tenant agency and location): AOC – Charleston, SC, VA – Baton Rouge, LA and DEA – Bakersfield, CA.  We expect to close on the remaining three portfolio acquisition properties prior to December 31, 2018, subject to the satisfaction of customary closing conditions.

Operating Properties

As of September 30, 2018, our 56 operating properties were 100% leased with a weighted average annualized lease income per leased square foot of $34.75 and a weighted average age of approximately 15.8 years. We calculate annualized lease income as annualized contractual base rent for the last month in a specified period, plus the annualized straight-line rent adjustments for the last month in such period and the annualized expense reimbursements earned by us for the last month in such period.

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Information about our operating properties as of September 30, 2018 is set forth in the table below:

Property Name	Location	Property Type (1)	Tenant Lease Expiration Year (2)			Rentable Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot
U.S Government Leased
VA - Loma Linda	Loma Linda, CA	OC		2036			327,614	$	16,053,017		9.6	%	$	49.00
Various GSA - Buffalo (3)	Buffalo, NY	O	2018 - 2025		(4)		267,766		8,461,644		5.0	%		31.60
IRS - Fresno	Fresno, CA	O		2033			180,481		7,499,545		4.4	%		41.55
FBI - Salt Lake	Salt Lake City, UT	O		2032			169,542		6,803,228		4.1	%		40.13
PTO - Arlington	Arlington, VA	O	2019 / 2020		(5)		189,871		6,617,464		4.0	%		34.85
Various GSA - Chicago (6)	Des Plaines, IL	O	2020 / 2022		(7)		232,759		6,395,004		3.8	%		28.52
VA - San Jose	San Jose, CA	OC		2038			90,085		5,781,091		3.5	%		64.17
FBI - San Antonio	San Antonio, TX	O		2021			148,584		5,129,841		3.1	%		34.52
TREAS - Parkersburg	Parkersburg, WV	O		2021			182,500		4,619,514		2.8	%		25.31
FBI - Omaha	Omaha, NE	O		2024			112,196		4,449,165		2.7	%		39.66
EPA - Kansas City	Kansas City, KS	L		2023			71,979		4,183,838		2.5	%		58.13
VA - South Bend	Mishakawa, IN	OC		2032			86,363		3,985,309		2.4	%		46.15
ICE - Charleston (8)	North Charleston, SC	O	2021 / 2027		(9)		86,733		3,788,417		2.3	%		43.68
DOT - Lakewood	Lakewood, CO	O		2024			122,225		3,408,756		2.0	%		27.89
FBI - Pittsburgh	Pittsburgh, PA	O		2027			100,054		3,386,688		2.0	%		33.85
USCIS - Lincoln	Lincoln, NE	O		2020			137,671		3,310,841		2.0	%		24.05
FBI - Birmingham	Birmingham, AL	O		2020			96,278		3,148,764		1.9	%		32.70
AOC - El Centro (10)	El Centro, CA	C/O		2019			46,813		3,097,404		1.9	%		66.17
OSHA - Sandy	Sandy, UT	L		2024	(11)		75,000		2,982,868		1.8	%		39.77
USFS II - Albuquerque	Albuquerque, NM	O	2026		(12)		98,720		2,870,004		1.7	%		29.07
ICE - Albuquerque	Albuquerque, NM	O		2027			71,100		2,804,426		1.7	%		39.44
DEA - Pleasanton	Pleasanton, CA	L		2035			42,480		2,785,682		1.7	%		65.58
DEA - Vista	Vista, CA	L		2020			54,119		2,777,302		1.7	%		51.32
USFS I - Albuquerque	Albuquerque, NM	O	2021		(12)		92,455		2,749,070		1.6	%		29.73
FBI - Richmond	Richmond, VA	O		2021			96,607		2,740,032		1.6	%		28.36
AOC - Del Rio (10)	Del Rio, TX	C/O		2024			89,880		2,695,482		1.6	%		29.99
DEA - Dallas Lab	Dallas, TX	L	2021				49,723		2,424,579		1.4	%		48.76
SSA - Charleston	Charleston, WV	O		2019	(13)		110,000		2,273,040		1.4	%		20.66
FBI - Little Rock	Little Rock, AR	O		2021			101,977		2,206,381		1.3	%		21.64
MEPCOM - Jacksonville	Jacksonville, FL	O		2025			30,000		2,183,945		1.3	%		72.80
CBP - Savannah	Savannah, GA	L		2033			35,000		2,137,168		1.3	%		61.06
FBI - Albany	Albany, NY	O		2019			98,184		2,092,524		1.3	%		21.31
DEA - Santa Ana	Santa Ana, CA	O		2024			39,905		2,090,935		1.2	%		52.40
CBP - Chula Vista	Chula Vista, CA	O		2028			59,322		2,080,111		1.2	%		35.06
DOE - Lakewood	Lakewood, CO	O		2029			115,650		2,068,524		1.2	%		17.89
NPS - Omaha	Omaha, NE	O		2024			62,772		1,772,276		1.1	%		28.23
DEA - Dallas	Dallas, TX	O		2021			71,827		1,769,575		1.1	%		24.64
ICE - Otay	San Diego, CA	O	2022 / 2026		(14)		52,881		1,746,593		1.0	%		35.32
VA - Golden	Golden, CO	O/W		2026			56,753		1,686,982		1.0	%		29.72
CBP - Sunburst	Sunburst, MT	O		2028			33,000		1,597,758		1.0	%		48.42
USCG - Martinsburg	Martinsburg, WV	O		2027			59,547		1,585,903		0.9	%		26.63
DEA - Otay (15)	San Diego, CA	O		2018			32,560		1,492,827		0.9	%		45.85
AOC - Aberdeen (10)	Aberdeen, MS	C/O		2025			46,979		1,465,665		0.9	%		31.20
DEA - Birmingham(16)	Birmingham, AL	O		2020			35,616		1,460,619		0.9	%		41.01
DEA - North Highlands	Sacramento, CA	O		2033			37,975		1,435,217		0.9	%		37.79
GSA - Clarksburg (17)	Clarksburg, WV	O		2024	(12)		63,750		1,381,968		0.8	%		21.68
DEA - Albany	Albany, NY	O		2025			31,976		1,349,054		0.8	%		42.19
DEA - Riverside	Riverside, CA	O		2032			34,354		1,246,594		0.7	%		36.29
SSA - Dallas	Dallas, TX	O		2020			27,200		1,087,236		0.6	%		39.97
ICE - Pittsburgh (18)	Pittsburgh, PA	O	2022 / 2023		(19)		33,425		839,772		0.5	%		33.26
AOC - South Bend (10)	South Bend, IN	C/O		2027			30,119		820,347		0.5	%		27.24
DEA - San Diego	San Diego, CA	W		2032			16,100		556,358		0.3	%		34.56
SSA - Mission Viejo	Mission Viejo, CA	O		2020			11,590		529,616		0.3	%		45.70
SSA - San Diego	San Diego, CA	O		2032			10,856		327,423		0.2	%		32.55
Subtotal							4,658,916	$	166,233,386		99.4	%	$	35.84

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Property Name	Location	Property Type (1)	Tenant Lease Expiration Year (2)			Rentable Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot
Privately Leased
5998 Osceola Court -    United Technologies	Midland, GA	W/M		2023	(20)		105,641		544,330		0.3	%		5.15
501 East Hunter Street -    Lummus Corporation	Lubbock, TX	W/D		2028	(11)		70,078		520,918		0.3	%		7.43
Subtotal							175,719	$	1,065,248		0.6	%	$	6.06
Total / Weighted Average							4,834,635	$	167,298,634		100.0	%	$	34.75

(1) OC=Outpatient Clinic; O=Office; C=Courthouse; L=Laboratory; W=Warehouse; D=Distribution; M=Manufacturing.

(2) The year of lease expiration does not include renewal options. All leases with renewal options are noted in the following footnotes to this table.

(3) Private tenants occupy 15,374 rentable square feet.

(4) 93,130 rentable square feet leased to the VA will expire on January 13, 2021, 61,334 rentable square feet leased to the IRS will expire on December 12, 2020, 36,640 rentable square feet leased to the National Labor Relations Board (NLRB) will expire on September 19, 2025, 32,000 rentable square feet leased to the Small Business Administration (SBA) will expire on December 14, 2021 and 44,662 rentable square feet leased to various other tenants and will expire between 2018-2021.

(5) 168,468 rentable square feet leased to the PTO will expire on March 31, 2019, and 21,403 rentable square feet leased to the PTO will expire on January 7, 2020.

(6) Private tenants occupy 2,987 rentable square feet.

(7) 209,970 rentable square feel leased to the Federal Aviation Administration (FAA) will expire on October 20, 2020 and 14,223 rentable square feet leased to various other tenants will expire between 2020-2022.

(8) We Are Sharing Hope SC (formerly known as LifePoint, Inc.) occupies 21,609 rentable square feet.

(9) 21,609 rentable square feet leased to We Are Sharing Hope SC will expire on September 30, 2021, and 54,872 rentable square feet leased to ICE, 9,198 rentable square feet leased to DEA, and 1,054 rentable square feet leased to U.S. Marshals Service will expire on January 31, 2027.

(10) A portion of this property is occupied by the U.S. Marshals Service to provide security and otherwise support the mission of the Administrative Office of the Courts. Because of the interrelated nature of the U.S. Marshals Service and the Administrative Office of the Courts, we have not separately addressed occupancy by the U.S. Marshals Service.

(11) Lease contains two five-year renewal options.

(12) Lease contains one five-year renewal option.

(13) Lease contains two five-year renewal options or one ten-year renewal option.

(14) 40,485 rentable square feet leased to ICE will expire on November 27, 2022, 7,434 rentable square feet leased to the DOT will expire on June 4, 2022 and 1,538 rentable square feet leased to the USDA will expire on January 1, 2026.

(15) ICE occupies 5,813 rentable square feet.

(16) The ATF occupies 8,680 rentable square feet.

(17) SSA occupies 42,017 rentable square feet and the remaining 21,733 rentable square feet are leased to various other government tenants.

(18) A private tenant occupies 3,854 rentable square feet.

(19) 21,391 rentable square feet leased to ICE will expire on February 28, 2022 and contains one three-year renewal option. 3,854 rentable square feet leased to a private tenant will expire June 3, 2023.

(20) Lease contains three five-year renewal options.

Certain of our leases are currently in the “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. We believe that, from the U.S. Government’s perspective, leases with such provisions are helpful for budgetary purposes. While some of our leases are contractually subject to early termination, we do not believe that our tenant agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the average age of these properties (approximately 16.7 years as of September 30, 2018), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties.

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The following table sets forth a schedule of lease expirations for leases in place as of September 30, 2018.

Year of Lease Expiration (1)	Number of Leases Expiring		Square Footage Expiring		Percentage of Portfolio Square Footage Expiring			Annualized Lease Income Expiring		Percentage of Total Annualized Lease Income Expiring			Annualized Lease Income per Leased Square Foot Expiring
2018		3		49,795		1.0	%		2,236,707		1.3	%		44.92
2019		5		435,518		9.0	%		13,598,057		8.1	%		31.22
2020		14		668,669		13.9	%		21,397,897		12.8	%		32.00
2021		11		904,686		18.8	%		26,736,336		16.0	%		29.55
2022		4		71,145		1.5	%		2,415,086		1.4	%		33.95
2023		3		181,474		3.8	%		4,851,324		2.9	%		26.73
2024		13		565,728		11.8	%		18,781,450		11.2	%		33.20
2025		4		145,595		3.0	%		6,009,832		3.6	%		41.28
2026		3		157,011		3.3	%		4,611,985		2.8	%		29.37
2027		7		325,944		6.8	%		11,782,017		7.0	%		36.15
Thereafter		5		1,308,103		27.1	%		54,877,943		32.9	%		41.95
Total / Weighted Average		72		4,813,668		100.0	%	$	167,298,634		100.0	%	$	34.75

(1) The year of lease expirations is pursuant to current contract terms. Some tenants have the right to vacate their space during a specified period, or “soft term,” before the stated terms of their leases expire. As of September 30, 2018, six tenants occupying approximately 6.3% of our rentable square feet and contributing approximately 4.5% of our annualized lease income have exercisable rights to terminate their leases before the stated term of their lease expires.

Results of Operations

Comparison of Results of Operations for the three months ended September 30, 2018 and 2017

The financial information presented below summarizes the results of operations of the Company for the three months ended September 30, 2018 and 2017 (amounts in thousands).

	For the three months ended September 30,
	2018			2017			Change
Revenues
Rental income	$	35,219		$	30,079		$	5,140
Tenant reimbursements		4,086			3,554			532
Other income		132			225			(93	)
Total revenues		39,437			33,858			5,579
Operating Expenses
Property operating		7,780			6,718			1,062
Real estate taxes		4,228			3,452			776
Depreciation and amortization		16,109			13,950			2,159
Acquisition costs		300			206			94
Corporate general and administrative		3,614			2,920			694
Total expenses		32,031			27,246			4,785
Operating income		7,406			6,612			794
Other expenses
Interest expense		(4,924	)		(5,495	)		571
Net income	$	2,482		$	1,117		$	1,365

Revenues

Total revenue consists primarily of rental income from our properties, tenant reimbursements for real estate taxes and certain other expenses, and project management income.

Total revenue increased by $5.6 million to $39.4 million for the three months ended September 30, 2018 compared to $33.9 million for the three months ended September 30, 2017. The increase is primarily attributable to an additional $5.4 million of revenue from the eleven operating properties acquired since September 30, 2017 as well as a full period of operations from one operating property acquired during the three months ended September 30, 2017 offset by one property disposed of since September 30, 2017.

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Operating Expenses

Total expenses increased by $4.8 million to $32.0 million for the three months ended September 30, 2018 compared to $27.2 million for the three months ended September 30, 2017. The increase is primarily attributable to $4.0 million in property operating expenses, real estate taxes, and depreciation and amortization associated with the eleven operating properties acquired since September 30, 2017 as well as a full period of operations from one operating property acquired during the three months ended September 30, 2017, offset by one property disposed of since September 30, 2017. Additionally, corporate and general administrative costs increased by $0.7 million primarily due to an increase in employee costs.

Interest Expense

Interest expense decreased by $0.6 million to $4.9 million for the three months ended September 30, 2018 compared to $5.5 million for the three months ended September 30, 2017. The decrease is primarily due to a $0.9 million decrease attributable to an increase in capitalized interest associated with properties under development and a decrease in interest on our $450.0 million senior unsecured revolving credit facility, which we refer to as the revolving credit facility, due to a decrease in weighted average borrowings from $63.1 million during the three months ended September 30, 2017 to $4.7 million for the three months ended September 30, 2018. The decrease in interest was partially offset by a $0.3 million increase attributable to interest incurred on our $150.0 million senior unsecured term loan facility, which we refer to as the 2018 term loan facility, which was fully drawn on September 10, 2018.

Comparison of Results of Operations for the nine months ended September 30, 2018 and 2017

The financial information presented below summarizes the results of operations of the Company for the nine months ended September 30, 2018 and 2017 (amounts in thousands).

	For the nine months ended September 30,
	2018			2017			Change
Revenues
Rental income	$	99,967		$	83,600		$	16,367
Tenant reimbursements		11,658			10,156			1,502
Other income		758			592			166
Total revenues		112,383			94,348			18,035
Operating Expenses
Property operating		21,563			18,904			2,659
Real estate taxes		11,773			9,166			2,607
Depreciation and amortization		45,331			40,091			5,240
Acquisition costs		1,023			1,194			(171	)
Corporate general and administrative		10,696			9,506			1,190
Total expenses		90,386			78,861			11,525
Operating income		21,997			15,487			6,510
Other (expenses) / income
Interest expense		(15,981	)		(11,626	)		(4,355	)
Net income (loss)	$	6,016		$	3,861		$	2,155

Revenues

Total revenue consists primarily of rental income from our properties, tenant reimbursements for real estate taxes and certain other expenses, and project management income.

Total revenue increased by $18.0 million to $112.4 million for the nine months ended September 30, 2018 compared to $94.3 million for the nine months ended September 30, 2017. The increase is primarily attributable to an additional $17.1 million of revenue from the eleven operating properties acquired since September 30, 2017 as well as a full period of operations from the three operating properties acquired during the nine months ended September 30, 2017, offset by one property disposed of since September 30, 2017.

Operating Expenses

Total expenses increased by $11.5 million to $90.4 million for the nine months ended September 30, 2018 compared to $78.9 million for the nine months ended September 30, 2017. The increase is primarily attributable to $11.2 million in property operating expenses, real estate taxes, and depreciation and amortization associated with the eleven operating properties acquired since September 30, 2017 as well as a full period of operations from the three operating properties acquired during the nine months ended

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September 30, 2017,offset by one property disposed of since September 30, 2017and by a $1.3 million decrease in depreciation related to the timing of intangible asset amortization. Additionally, corporate and general administrative costs increased by $1.2 million primarily due to an increase in employee costs.

Interest Expense

Interest expense increased $4.4 million to $16.0 million for the nine months ended September 30, 2018 compared to $11.6 million for the nine months ended September 30, 2017. The increase is primarily due to a $6.3 million increase associated with interest on the senior unsecured notes and mortgage loan secured by VA – Loma Linda, both of which were entered into during the nine months ended September 30, 2017, and interest on our $100.0 million senior unsecured term loan facility, which we refer to as the 2016 term loan facility and the 2018 term loan facility, which were amended and entered into, respectively, during the nine months ended September 30, 2018.  This increase in interest was partially offset by a $2.0 million decrease in interest due to an increase in capitalized interest associated with properties under development and a decrease in interest on the revolving credit facility due to a decrease in the weighted average borrowings from $154.2 million during the nine months ended September 30, 2017 to $67.9 million for the nine months ended September 30, 2018.

Liquidity and Capital Resources

We anticipate that our cash flows from the sources listed below will provide adequate capital for the next 12 months for all anticipated uses, including all scheduled principal and interest payments on our outstanding indebtedness, current and anticipated tenant improvements, stockholder distributions to maintain our qualification as a REIT and other capital obligations associated with conducting our business. At September 30, 2018, we had $6.9 million available in cash and cash equivalents and there was $417.0 million available under our revolving credit facility (as defined below).

Our primary expected sources of capital are as follows:

• cash and cash equivalents;

• operating cash flow;

• available borrowings under our revolving credit facility;

• secured loans collateralized by individual properties;

• issuance of long-term debt;

• issuance of equity, including under our ATM program (as described below); and

• asset sales.

Our short-term liquidity requirements consist primarily of funds to pay for the following:

• development and redevelopment activities, including major redevelopment, renovation or expansion programs at individual properties;

• property acquisitions under contract;

• tenant improvements allowances and leasing costs;

• recurring maintenance capital expenditures;

• debt repayment requirements;

• corporate and administrative costs;

• interest swap payments; and

• distribution payments.

Our long-term liquidity needs, in addition to recurring short-term liquidity needs as discussed above, consist primarily of funds necessary to pay for acquisitions, non-recurring capital expenditures, and scheduled debt maturities. Although we may be able to anticipate and plan for certain of our liquidity needs, unexpected increases in uses of cash that are beyond our control and which affect our financial condition and results of operations may arise, or our sources of liquidity may be fewer than, and the funds available from such sources may be less than, anticipated or required. As of the date of this filing, there were no known commitments or events that would have a material impact on our liquidity.

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Equity

Shelf Registration Statement on Form S-3

On March 16, 2018, we filed an automatic universal shelf registration statement on Form S-3 with the Securities and Exchange Commission, or SEC, which was deemed automatically effective and which provides for the registration of unspecified amounts of securities. However, there can be no assurance that we will be able to complete any such offerings of securities in the future.

Underwritten Public Offering of Common Stock

On June 21, 2018, we completed an underwritten public offering of an aggregate of 20,700,000 shares of our common stock, consisting of (i) 13,700,000 shares sold by us to the underwriters (including 2,700,000 shares pursuant to the underwriters’ exercise of their option to purchase additional shares) and (ii) 7,000,000 shares offered and sold on a forward basis in connection with forward sales agreements entered into with certain financial institutions, acting as forward purchasers.  We received approximately $252.9 million in net proceeds from the sale of shares offered by us in the offering, after deducting underwriting discounts and commissions and our offering expenses. Subject to the Company’s right to elect cash or net share settlement, we expect to physically settle the forward sales agreements no later than December 21, 2018. Assuming the forward sales agreements are physically settled in full, we expect to receive an additional $129.3 million of net proceeds, after deducting underwriting discounts, commissions and estimated offering expenses.

ATM Program

On March 3, 2017, we entered into equity distribution agreements with each of Citigroup Global Markets Inc., BTIG, LLC, Jefferies LLC, Raymond James & Associates, Inc., RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc., whom we refer to collectively as the managers, pursuant to which we may issue and sell the shares of our common stock having an aggregate offering price of up to $100.0 million from time to time through the managers, acting as sales agents and/or principals, which we refer to as our ATM program. The sales of shares of our common stock under the equity distribution agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act.

The following table sets forth certain information with respect to our ATM program as of September 30, 2018 (amounts in thousands, except share amounts):

	Number of Shares Sold		Net Proceeds
For the year ended December 31, 2017		1,569,514	$	33,263
For the three months ended March 31, 2018		671,666		13,532
For the three months ended June 30, 2018		1,010,371		20,208
For the three months ended September 30, 2018		—		—
Total		3,251,551	$	67,003

We have used the proceeds from such sales for general corporate purposes. As of September 30, 2018, we had approximately $32.3 million of gross sales of our common stock available under our ATM program.

Debt

Amended and Restated Credit Facility

On June 18, 2018, we entered into an amended and restated senior unsecured credit facility, which we refer to as our amended senior unsecured credit facility.  Our amended senior unsecured credit facility increased the total borrowing capacity of our existing senior unsecured credit facility by $200.0 million for a total credit facility size of $600.0 million, consisting of two components: (i) the $450.0 million revolving credit facility, and (ii) the $150.0 million 2018 term loan facility, which we refer to as the 2018 term loan facility. The revolving credit facility also includes an accordion feature that will provide us with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250.0 million.

Our operating partnership is the borrower, and we and certain of our subsidiaries that directly own certain of our properties are guarantors under our amended senior unsecured credit facility. The revolving credit facility matures in four years and the 2018 term loan facility matures in five years.  In addition, the revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

26

Our amended senior unsecured credit facility bears interest, at our option, either at:

• a Eurodollar rate equal to a periodic fixed rate equal to LIBOR plus, a margin ranging from 1.25% to 1.80% for advances under the revolving credit facility and a margin ranging from 1.20% to 1.75% for advances under the 2018 term loan facility; or

• a fluctuating rate equal to the sum of (a) the highest of (x) Citibank, N.A.’s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month Eurodollar rate plus 1.00% plus (b) a margin ranging from 0.25% to 0.80% for advances under the revolving credit facility and a margin ranging from 0.20% to 0.75% for advances under the 2018 term loan facility, in each case with a margin based on our leverage ratio.

The 2018 term loan facility had a 364-day delayed draw period and is prepayable without penalty for the entire term of the loan.As of September 30, 2018, we fully drew $150.0 million on our 2018 term loan facility.

Amendments to Term Loan Facility

On June 18, 2018, we entered into a second amendment to the 2016 term loan facility.  The second amendment amends certain covenants and other provisions in the 2016 term loan facility to conform to changes made to such covenants and other provisions in our amended senior unsecured credit facility.

On October 3, 2018, we entered into a third letter amendment to the 2016 term loan facility.  The third letter amendment reduces the interest rate margin applicable to borrowings under the 2016 term loan facility and extends the maturity date by six months to March 29, 2024.

27

Indebtedness Outstanding

The following table sets forth certain information with respect to our outstanding indebtedness as of September 30, 2018 (amounts in thousands):

	Principal Outstanding			Interest	Current
Loan	September 30, 2018			Rate (1)	Maturity
Revolving credit facility:
Revolving credit facility (2)	$	33,000		L + 125bps	June 2022 (3)
Total revolving credit facility		33,000
Term loan facilities:
2016 term loan facility		100,000		3.12% (4)	September 2023
2018 term loan facility		150,000		L + 120bps	June 2023
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,587	)
Total term loan facilities, net		248,413
Notes payable:
Senior unsecured notes payable, series A		95,000		4.05%	May 2027
Senior unsecured notes payable, series B		50,000		4.15%	May 2029
Senior unsecured notes payable, series C		30,000		4.30%	May 2032
Total notes payable		175,000
Less: Total unamortized deferred financing fees		(1,248	)
Total notes payable, net		173,752
Mortgage notes payable:
CBP - Savannah		13,676		3.40% (5)	July 2033
ICE - Charleston		18,934		4.21% (5)	January 2027
MEPCOM - Jacksonville		10,121		4.41% (5)	October 2025
USFS II - Albuquerque		16,660		4.46% (5)	July 2026
DEA - Pleasanton		15,700		L + 150bps (5)	October 2023
VA - Loma Linda		127,500		3.59% (5)	July 2027
VA - Golden		9,380		5.00% (5)	April 2024
Total mortgage notes payable		211,971
Less: Total unamortized deferred financing fees		(1,882	)
Less: Total unamortized premium/discount		299
Total mortgage notes payable, net		210,388
Total debt	$	665,553

(1) At September 30, 2018, the one-month LIBOR (“L”) was 2.26%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for the revolving credit facility and the term loan facilities is based on the Company’s consolidated leverage ratio, as defined in the respective loan agreements.

(2) Available capacity of $417.0 million at September 30, 2018 with an accordion feature that provides additional capacity of up to $250.0 million, subject to the satisfaction of customary terms and conditions.

(3) Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

(4) The interest rate is calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 3.12% annually, based on the Company’s consolidated leverage ratio, as defined in the 2016 term loan facility agreement.

(5) Effective interest rates are as follows: CBP – Savannah 4.12%, ICE – Charleston 3.93%, MEPCOM – Jacksonville 3.89%, USFS II – Albuquerque 3.92%, DEA – Pleasanton 1.8%, VA – Loma Linda 3.78%, VA – Golden 5.03%.

Our revolving credit facility, term loan facilities, unsecured notes, and mortgage notes payable are subject to ongoing compliance with a number of financial and other covenants. As of September 30, 2018, we were in compliance with all applicable financial covenants.

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The chart below details our debt capital structure as of September 30, 2018(dollar amounts in thousands):

Debt Capital Structure	September 30, 2018
Total principal outstanding	$	669,971
Weighted average maturity	7 years
Weighted average interest rate		3.7	%
% Variable debt		29.7	%
% Fixed debt (1)		70.3	%
% Secured debt		31.6	%

(1) Our 2016 term loan facility is swapped to be fixed and as such is included as fixed rate debt in the table above.

Dividend Policy

In order to qualify as a REIT, we are required to distribute to our stockholders, on an annual basis, at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. We anticipate distributing all of our taxable income. We expect to make quarterly distributions to our stockholders in a manner intended to satisfy this requirement. Prior to making any distributions for U.S. federal tax purposes or otherwise, we must first satisfy our operating and debt service obligations. It is possible that it would be necessary to utilize cash reserves, liquidate assets at unfavorable prices or incur additional indebtedness in order to make required distributions. It is also possible that our board of directors could decide to make required distributions in part by using shares of our common stock.

A summary of dividends declared by the board of directors per share of common stock and per common unit of our operating partnership at the date of record is as follows:

Quarter	Declaration Date	Record Date	Pay Date	Dividend (1)
Q1 2018	May 3, 2018	June 11, 2018	June 28, 2018	$	0.26
Q2 2018	August 1, 2018	September 13, 2018	September 27, 2018	$	0.26
Q3 2018	October 29, 2018	December 13, 2018	December 27, 2018	$	0.26

(1) Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of LTIP units are entitled to receive dividends per LTIP unit equal to 10% of the dividend paid per common unit.  After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit.

Off-balance Sheet Arrangements

We had no material off-balance sheet arrangements as of September 30, 2018.

Inflation

Substantially all of our leases provide for operating expense escalations. We believe inflationary increases in expenses may be at least partially offset by the operating expenses that are passed through to our tenants and by contractual rent increases. We do not believe inflation has had a material impact on our historical financial position or results of operations.

Cash Flows

The following table sets forth a summary of cash flows for the nine months ended September 30, 2018 and 2017 (amounts in thousands):

	For the nine months ended September 30,
	2018			2017
Net cash (used in) provided by:
Operating activities	$	49,095		$	42,824
Investing activities		(370,608	)		(350,347	)
Financing activities		316,622			311,449

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Operating Activities

The Company generated $49.1 million and $42.8 million of cash from operating activities during the nine months ended September 30, 2018 and 2017, respectively. Net cash provided by operating activities for the nine months ended September 30, 2018 includes $43.4 million in net cash from rental activities net of expenses and $5.7 million related to the change in rents receivable, accounts receivable, prepaid and other assets, and accounts payable and accrued liabilities. Net cash provided by operating activities for the nine months ended September 30, 2017 includes a $39.2 million increase in net cash from rental activities net of expenses and $3.6 million related to the change in rents receivable, accounts receivable, prepaid and other assets, and accounts payable and accrued liabilities.

Investing Activities

The Company used $370.6 million and $350.3 million in cash for investing activities during the nine months ended September 30, 2018 and 2017, respectively. Net cash used in investing activities for the nine months ended September 30, 2018 includes $321.0 million in real estate acquisitions related to the purchase of VA – Golden, VA – San Jose and the closing of the first eight portfolio acquisition properties, $38.9 million in additions to development properties, $4.1 million in additions to operating properties and a $6.5 million increase in deposits on acquisitions. Net cash used in investing activities for the nine months ended September 30, 2017 includes $337.6 million in real estate acquisitions related to the purchase of OSHA – Sandy, VA – Loma Linda, FDA – Lenexa and FBI – Salt Lake, $5.6 million in additions to development properties, a $5.0 million note receivable and $2.2 million in additions to operating properties offset by a $0.7 million decrease in deposits on acquisitions.

Financing Activities

The Company generated $316.6 million and $311.4 million in cash from financing activities during the nine months ended September 30, 2018 and 2017, respectively. Net cash generated by financing activities for the nine months ended September 30, 2018 includes $297.8 million in gross proceeds from issuance of shares of our common stock, $150.0 million in draws under our 2018 term loan facility and $57.5 million in draws under our revolving credit facility, offset by $124.3 million in net pay downs under our revolving credit facility, $47.5 million in dividends, $11.3 million in payment of offering costs, $3.2 million in payment of deferred financing costs and $2.4 million in mortgage notes payable repayment. Net cash provided by financing activities for the nine months ended September 30, 2017 includes $100.0 million in draws under our 2016 term loan facility, $175.0 million in proceeds from the issuance of senior unsecured notes, $127.5 million in mortgage notes payable, $107.2 million in gross proceeds from issuance of shares of our common stock, offset by $152.9 million in net pay downs under our revolving credit facility, $35.5 million in dividends, $3.4 million in payment of deferred financing costs, $4.2 million in payment of deferred offering costs and $2.2 million in mortgage notes payable repayment.

Non-GAAP Financial Measures

We use and present funds from operations, or FFO, and FFO, as Adjusted as supplemental measures of our performance. The summary below describes our use of FFO and FFO, as Adjusted, provides information regarding why we believe these measures are meaningful supplemental measures of our performance and reconciles these measures from net income (loss), presented in accordance with GAAP.

Funds From Operations and Funds From Operations, as Adjusted

Funds From Operations, or FFO, is a supplemental measure of our performance. We present FFO calculated in accordance with the current National Association of Real Estate Investment Trusts, or NAREIT, definition. In addition, we present FFO, as Adjusted for certain other adjustments that we believe enhance the comparability of our FFO across periods and to the FFO reported by other publicly traded REITs. FFO is a supplemental performance measure that is commonly used in the real estate industry to assist investors and analysts in comparing results of REITs.

FFO is defined by NAREIT as net income (loss), calculated in accordance with GAAP, excluding gains or losses from sales of property and impairment losses on depreciable real estate, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We present FFO because we consider it an important supplemental measure of our operating performance, and we believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting results.

We adjust FFO to present FFO, as Adjusted as an alternative measure of our operating performance, which, when applicable, excludes the impact of acquisition costs, straight-line rent, above-/below-market leases, non-cash interest expense, non-cash compensation and other non-cash items including amortization of lease inducements. By excluding these income and expense items from FFO, as Adjusted, we believe we provide useful information as these items have no cash impact.  In addition, by excluding

30

acquisition related costs we believe FFO, as Adjusted provides useful information that is comparable across periods and more accurately reflects the operating performance of our properties.  

FFO and FFO, as Adjusted are presented as supplemental financial measures and do not fully represent our operating performance. Other REITs may use different methodologies for calculating FFO and FFO, as Adjusted or use other definitions of FFO and FFO, as Adjusted and, accordingly, our presentation of these measures may not be comparable to other REITs. Neither FFO nor FFO, as Adjusted is intended to be a measure of cash flow or liquidity. Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows.

The following table sets forth a reconciliation of our net income to FFO and FFO, as Adjusted for the three and nine months ended September 30, 2018 and 2017 (amounts in thousands):

	For the three months ended September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
Net income	$	2,482		$	1,117		$	6,016		$	3,861
Depreciation and amortization		16,109			13,950			45,331			40,091
Funds From Operations		18,591			15,067			51,347			43,952
Adjustments to FFO:
Acquisition costs		300			206			1,023			1,194
Straight-line rent and amortization of    lease inducements		(1,209	)		(883	)		(4,256	)		(1,376	)
Above-/below-market leases		(2,219	)		(2,065	)		(6,737	)		(6,283	)
Non-cash interest expense		313			310			876			784
Non-cash compensation		731			748			2,307			2,215
Funds from Operations, as Adjusted	$	16,507		$	13,383		$	44,560		$	40,486

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss from adverse changes in market prices and interest rates. Our future earnings, cash flows and fair values relevant to financial instruments are dependent upon prevailing market interest rates. Our primary market risk results from our indebtedness, which bears interest at both fixed and variable rates. We manage and may continue to manage our market risk on variable rate debt by entering into swap arrangements to, in effect, fix the rate on all or a portion of the debt for varying periods up to maturity. This in turn, reduces the risks of variability of cash flows created by variable rate debt and mitigates the risk of increases in interest rates. Our objective when undertaking such arrangements is to reduce our floating rate exposure and we do not intend to enter into hedging arrangements for speculative purposes.

As of September 30, 2018, $471.3 million, or 70.3% of our debt, excluding unamortized premiums and discounts, had fixed interest rates and $198.7 million, or 29.7% had variable interest rates. If market rates of interest on our variable rate debt fluctuate by 25 basis points, interest expense would increase or decrease, depending on rate movement, future earnings and cash flows, by $0.5 million annually.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation required by the Exchange Act, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a -15(e) and Rule 15d-15 of the Exchange Act, as of September 30, 2018. Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of September 30, 2018, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended September 30, 2018 that have materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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Part II

Item 1. Legal Proceedings

We are not currently involved in any material litigation nor, to our knowledge, is any material litigation currently threatened against us.

Item 1A. Risk Factors

There have been no material changes to the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2017.

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

None

Item 3. Defaults Upon Senior Securities

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

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Item 6. Exhibits

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q:

Exhibit	Exhibit Description
3.1	Amended and Restated Articles of Amendment and Restatement of Easterly Government Properties, Inc. (previously filed as Exhibit 3.1 to Amendment No. 2 to the Company’s Registration Statement on Form S-11 on January 30, 2015 and incorporated herein by reference)
3.2	Amended and Restated Bylaws of Easterly Government Properties, Inc. (previously filed as Exhibit 3.2 to Amendment No. 2 to the Company’s Registration Statement on Form S-11 on January 30, 2015 and incorporated herein by reference)
4.1	Specimen Certificate of Common Stock of Easterly Government Properties, Inc. (previously filed as Exhibit 4.1 to Amendment No. 2 to the Company’s Registration Statement on Form S-11 on January 30, 2015 and incorporated herein by reference)
10.1*	Third Letter Amendment to Term Loan Agreement, dated as of October 3, 2018, by and among Easterly Government Properties, Inc., as Parent Guarantor, Easterly Government Properties LP, as Borrower, the Subsidiary Guarantors named therein, PNC Bank, National Association, as Administrative Agent and U.S. Bank National Association and SunTrust Bank, as Lenders
31.1*	Certification of Chief Executive Officer Required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
31.2*	Certification of Chief Financial Officer Required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
32.1**	Certification of Chief Executive Officer and Chief Financial Officer Required by Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended
101*	The following materials from Easterly Government Properties, Inc.’s Quarterly Report on Form 10-Q for nine months ended September 30, 2018 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Equity, (iv) the Consolidated Statements of Cash Flows and (v) the related notes to these consolidated financial statements

* Filed herewith

** Furnished herewith

33

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Easterly Government Properties, Inc.
Date: November 5, 2018	/s/ William C. Trimble, III
	William C. Trimble, III
	Chief Executive Officer and President (Principal Executive Officer)
Date: November 5, 2018	/s/ Meghan G. Baivier
	Meghan G. Baivier
	Executive Vice President, Chief Financial Officer and Chief Operating Officer (Principal Financial Officer)

EX-10.1

Exhibit 10.1

THIRD LETTER AMENDMENT

Dated as of October 3, 2018

PNC Bank, National Association,
as Administrative Agent under the
Loan Agreement referred to below

800 17^th Street NW
Washington, DC 20006

Re: Easterly Government Properties LP $100,000,000 Term Loan Facility

Ladies and Gentlemen:

Reference is made to the Term Loan Agreement dated as of September 29, 2016, as amended by that certain First Letter Amendment dated as of October 28, 2016 and by that certain Second Amendment to Term Loan Agreement dated as of June 18, 2018 (as amended, the “Loan Agreement”) by and among Easterly Government Properties LP, as borrower (the “Borrower”), Easterly Government Properties, Inc., as parent guarantor (the “Parent Guarantor”), the subsidiary guarantors named therein (together with the Parent Guarantor, the “Guarantors”), PNC Bank, National Association, as administrative agent (the “Administrative Agent”), the financial institutions identified therein as lenders (the “Lenders”), U.S. Bank National Association and SunTrust Bank, as syndication agents, and PNC Capital Markets LLC, U.S. Bank National Association and SunTrust Robinson Humphrey, Inc., as joint lead arrangers and joint book runners, pursuant to which the Lenders have made available to the Borrower a $100,000,000 term loan facility (the “Facility”).  Capitalized terms not otherwise defined herein shall have their respective meanings set forth in the Loan Agreement.

It is hereby agreed by you and us as follows:

1.Amendments to Loan Agreement.    

(a)The definition of “Applicable Margin” in Section 1.01 of the Loan Agreement is hereby amended by replacing the leverage grid in clause (a) thereof with the following grid:

Pricing Level	Leverage Ratio	Applicable Margin for Eurodollar Rate Advances	Applicable Margin for Base Rate Advances
I	< 35%	1.20%	0.20%
II	≥ 35% but < 40%	1.25%	0.25%
III	≥ 40% but < 45%	1.35%	0.35%
IV	≥ 45% but < 50%	1.40%	0.40%
V	≥ 50% but < 55%	1.50%	0.50%
VI	≥ 55%	1.70%	0.70%

EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                                AMEND NO. 3

(b)The definition of “Applicable Margin” in Section 1.01 of the Loan Agreement is hereby further amended by replacing the ratings grid in clause (b) therein with the following grid:

Debt Rating of Borrower or Parent Guarantor	Applicable Margin for Eurodollar Rate Advances	Applicable Margin for Base Rate Advances
> A-/A3	0.85%	0.00%
BBB+/Baa1	0.90%	0.00%
BBB/Baa2	1.00%	0.00%
BBB-/Baa3	1.25%	0.25%
< BBB-/Baa3 (or unrated)	1.65%	0.65%

(c)The definition of “Maturity Date” in Section 1.01 of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

“Maturity Date” means the earliest to occur of (a) March 29, 2024, (b) the date of termination of all of the Commitments by the Borrower pursuant to Section 2.05 or (c) the date of termination of all of the Commitments pursuant to Section 6.01.

2.Effectiveness of Amendment.  

(a)This Third Letter Amendment (this “Amendment”) shall become effective as of the first date (the “Third Letter Amendment Effective Date”) on which, and only if, each of the following conditions precedent shall have been satisfied:

(i) The Administrative Agent shall have received counterparts of this Amendment executed by the Borrower, the Guarantors, the Administrative Agent and each Lender or, as to any Lender, advice satisfactory to the Administrative Agent that such Lender has executed this Amendment.

(ii) The Administrative Agent shall have received certified copies of the resolutions of the Board of Directors of the Parent Guarantor on its behalf and on behalf of each Loan Party for which it is the ultimate signatory approving the transactions contemplated by this Amendment, and of all documents evidencing other necessary corporate action and governmental and other third party approvals and consents, if any, with respect to the transactions under this Amendment.

(iii) The Administrative Agent shall have received a certificate of the Secretary or an Assistant Secretary of each Loan Party (or Responsible Officer of the general partner or managing member of any Loan Party) and of each general partner or managing member (if any) of each Loan Party, dated as of the date hereof, certifying the names and true signatures of the officers of such Loan Party, or of the general partner or managing member of such Loan Party, authorized to sign this Amendment.

(iv) All of the fees and expenses of the Administrative Agent (including the reasonable fees and expenses of counsel for the Administrative Agent) due and payable on the Third Letter Amendment Effective Date shall have been paid in full.

2EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                                AMEND NO. 3

(b)The effectiveness of this Amendment is further conditioned upon the accuracy of the factual matters described herein.  This Amendment is subject to the provisions of Section 9.01 of the Loan Agreement.

3.Consent.  By signing this Amendment, each Guarantor hereby consents to this Amendment and hereby confirms and agrees that notwithstanding the effectiveness of the Amendment, the Guaranty contained in the Loan Agreement is and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that, on and after the effectiveness of such Amendment, each reference in the Loan Documents to “Loan Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a reference to the Loan Agreement, as amended and modified by such Amendment.

4.Ratification.  The Loan Agreement, as amended hereby, the Notes and each of the other Loan Documents are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

5.Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Amendment by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment.

6.Costs and Expenses.  The Borrower agrees to pay on demand all costs and expenses of the Administrative Agent in connection with the preparation, execution, delivery and administration, modification and amendment of this Amendment and the other instruments and documents to be delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for the Administrative Agent) in accordance with the terms of Section 9.04 of the Loan Agreement.

7.Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

[Balance of page intentionally left blank.]

3EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                                AMEND NO. 3

This Amendment constitutes a Loan Document and shall be governed by, and construed in accordance with, the laws of the State of New York.

Very truly yours,

Borrower:

EASTERLY GOVERNMENT PROPERTIES LP,
a Delaware limited partnership

By:    EASTERLY GOVERNMENT PROPERTIES, INC., a Maryland corporation,

its sole General Partner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Executive Vice President, Chief Financial Officer and Chief Operating Officer

PARENT GUARANTOR:

EASTERLY GOVERNMENT PROPERTIES, INC., a Maryland corporation

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Executive Vice President, Chief Financial Officer and Chief Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

SUBSIDIARY GUARANTORS:

USGPALBANY DEA LLC, a Delaware limitedliability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGPDALLAS DEA LP,a Delaware limited partnership

By:   USGP Dallas1G.P., LLC, its general partner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGPDEL RIO CH LP, aDelaware limited partnership

By:USGP DelRio 1,GP,LLC,itsgeneralpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGP FRESNO IRS, LLC, a Delawarelimitedliability company

By:   USGP Fresno IRS Member LLC, its managing member

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

USGP SAN ANTONIO, L.P., a Delawarelimited partnership

By:USGP SanAntonioGP,LLC, its generalpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

37 NINE MILE ROAD, LLC, aDelaware limitedliability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGPALBUQUERQUE USFS I, LLC, aDelaware limitedliability company

By:  USGP Albuquerque USFS I Member LLC, its managing member

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGP II ARLINGTON PTO LP, a Delaware limited partnership

By:   USGP IIArlingtonPTO General Partner LLC,its generalpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

USGP II LAKEWOOD DOT LP, a Delaware limited partnership

By:   USGP LakewoodDOTGeneral Partner LLC,its generalpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGP II LITTLE ROCK FBI LP, a Delaware limited partnership

By:    USGP IILittle RockFBIGeneral Partner,its

          general partner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGP II MARTINSBURGUSCG LP, aDelaware limited partnership

By:   USGP IIMartinsburg USCG General Partner, its generalpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGP II OMAHA FBI LP,a Delawarelimitedpartnership

By:    USGP IIOmahaFBIGeneral Partner,its

          general partner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP CBP CHULA VISTA LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGPCHELCENTROLLC,aDelaware limitedliability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP DEA NORTH HIGHLANDS LLC, a Delaware limitedliability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGPDEAOTAYLLC,aDelawarelimitedliability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP DEA RIVERSIDE LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP DEA SANTA ANA LLC, a Delaware limitedliability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP DEA VISTA LLC, aDelawarelimited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP DEA WH SAN DIEGO LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP MIDLAND 1LLC,aDelaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP SSA MISSION VIEJO LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP SSA SAN DIEGO LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP HUNTERLUBBOCK LP, a Delaware limited partnership

By:EGPLubbockGP LLC,itsgeneralpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

USGP II LAKEWOOD WAPA LP, a Delaware limited partnership

By:USGP II Lakewood WAPA General Partner LLC,itsgeneralpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP CH ABERDEEN LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 2297 OTAY LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP USCIS LINCOLN LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP DEA LAB DALLAS LP, a Delaware limited partnership

By:EGPDEA Lab Dallas General Partner LLC,itsgeneralpartner

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 1970 RICHMOND LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 5441 ALBUQUERQUE LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 601 OMAHA LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP 920 BIRMINGHAM LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 300 KANSAS CITY LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 1000 BIRMINGHAM LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 200 ALBANY LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 401 SOUTH BEND LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP 8660 SANDY  LLC, a Delawarelimited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 5425 SALT LAKE LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 1540 SOUTH BEND LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 5855 SAN JOSE LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 10824 DALLAS LP, a Delaware limited partnership

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP 500 Charleston LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 3000 Pittsburgh LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 320 Clarksburg LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 130 Buffalo LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EGP 3311 Pittsburgh LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 2300 Des Plaines LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

EGP 320 Parkersburg LLC, a Delaware limited liability company

By:	/s/ Meghan Baivier
Name:	Meghan Baivier
Title:	Chief Financial and Operating Officer

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

Agreed as of the date first above written:

Administrative Agent AND lENDER:

PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent and as a Lender

By:	/s/ Katie Chowdhry
Name:	Katie Chowdhry
Title:	Vice President

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

LENDERS:

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By:	/s/ Timothy J. Tillman
Name:	Timothy J. Tillman
Title:	Senior Vice President

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

SUNTRUST BANK, as a Lender

By:	/s/ Nick Preston
Name:	Nick Preston
Title:	Director

Signature Page            EASTERLY GOVERNMENT PROPERTIES LP -
                                                                                                                                                                                                       AMEND NO. 3

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

I, William C. Trimble, III, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Easterly Government Properties, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2018

/s/ William C. Trimble, III

William C. Trimble, III

Chief Executive Officer and President

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Rule 13a-14(a) and Rule 15d-14(a)

I, Meghan G. Baivier, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Easterly Government Properties, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2018

/s/ Meghan G. Baivier

Meghan G. Baivier

Executive Vice President, Chief Financial Officer and Chief Operating Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification

Pursuant to 18 U.S.C. Section 1350

The undersigned officers, who are the Chief Executive Officer and Chief Financial Officer of Easterly Government Properties, Inc. (the “Company”), each hereby certifies to the best of his or her knowledge, that the Company’s Quarterly Report on Form 10-Q to which this certification is attached (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William C. Trimble, III	/s/ Meghan G. Baivier
William C. Trimble, III	Meghan G. Baivier
Chief Executive Officer and President	Executive Vice President, Chief Financial Officer and Chief Operating Officer
November 5, 2018	November 5, 2018

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	DEA
Entity Registrant Name	Easterly Government Properties, Inc.
Entity Central Index Key	0001622194
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		60,818,841

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Real estate properties, net	$ 1,546,600	$ 1,230,162
Cash and cash equivalents	6,922	12,682
Restricted cash	4,388	3,519
Deposits on acquisitions	7,225	750
Rents receivable	17,394	12,751
Accounts receivable	9,186	9,347
Deferred financing, net	2,636	945
Intangible assets, net	167,044	143,063
Interest rate swaps	6,958	4,031
Prepaid expenses and other assets	10,158	8,088
Total assets	1,778,511	1,425,338
Liabilities
Revolving credit facility	33,000	99,750
Term loan facilities, net	248,413	99,202
Notes payable, net	173,752	173,692
Mortgage notes payable, net	210,388	203,250
Intangible liabilities, net	33,038	38,569
Accounts payable and accrued liabilities	38,618	19,786
Total liabilities	737,209	634,249
Equity
Common stock, par value $0.01, 200,000,000 shares authorized, 60,818,841 and 44,787,040 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	608	448
Additional paid-in capital	1,015,603	740,546
Retained earnings	12,241	7,127
Cumulative dividends	(123,282)	(83,718)
Accumulated other comprehensive income	6,089	3,403
Total stockholders’ equity	911,259	667,806
Non-controlling interest in Operating Partnership	130,043	123,283
Total equity	1,041,302	791,089
Total liabilities and equity	$ 1,778,511	$ 1,425,338

XML

Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares issued	60,818,841	44,787,040
Common Stock, shares outstanding	60,818,841	44,787,040

XML

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Rental income	$ 35,219	$ 30,079	$ 99,967	$ 83,600
Total revenues		33,858
Total revenues	39,437	33,858	112,383	94,348
Operating expenses
Property operating	7,780	6,718	21,563	18,904
Real estate taxes	4,228	3,452	11,773	9,166
Depreciation and amortization	16,109	13,950	45,331	40,091
Acquisition costs	300	206	1,023	1,194
Corporate general and administrative	3,614	2,920	10,696	9,506
Total expenses	32,031	27,246	90,386	78,861
Operating income	7,406	6,612	21,997	15,487
Other expenses
Interest expense, net	(4,924)	(5,495)	(15,981)	(11,626)
Net income	2,482	1,117	6,016	3,861
Non-controlling interest in Operating Partnership	(327)	(175)	(902)	(700)
Net income available to Easterly Government Properties, Inc.	$ 2,155	$ 942	$ 5,114	$ 3,161
Net income available to Easterly Government Properties, Inc. per share:
Basic	$ 0.03	$ 0.02	$ 0.08	$ 0.08
Diluted	$ 0.03	$ 0.02	$ 0.08	$ 0.08
Weighted-average common shares outstanding
Basic	60,446,199	39,962,471	51,051,388	38,098,805
Diluted	61,978,998	41,903,977	52,600,858	40,012,282
Dividends declared per common share	$ 0.26	$ 0.25	$ 0.78	$ 0.74
Tenant Reimbursements [Member]
Revenues
Total revenues	$ 4,086	$ 3,554	$ 11,658	$ 10,156
Other Income [Member]
Revenues
Total revenues	$ 132	$ 225	$ 758	$ 592

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 2,482	$ 1,117	$ 6,016	$ 3,861
Other comprehensive income:
Unrealized gain (loss) on interest rate swaps, net	406	(111)	2,927	(697)
Other comprehensive income (loss)	406	(111)	2,927	(697)
Comprehensive income	2,888	1,006	8,943	3,164
Non-controlling interest in Operating Partnership	(327)	(175)	(902)	(700)
Other comprehensive income attributable to non-controlling interest	(9)	77	(241)	286
Comprehensive income attributable to Easterly Government Properties, Inc.	$ 2,552	$ 908	$ 7,800	$ 2,750

XML

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended	21 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Sep. 30, 2018
Cash flows from operating activities
Net income	$ 2,482	$ 1,117	$ 6,016	$ 3,861
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	16,109	13,950	45,331	40,091
Straight line rent			(4,253)	(1,376)
Amortization of above- / below-market leases			(6,737)	(6,283)
Amortization of unearned revenue			(127)	(82)
Amortization of loan premium / discount			(62)	(64)
Amortization of deferred financing costs			938	848
Non-cash compensation			2,307	2,215
Net change in:
Rents receivable			(404)	265
Accounts receivable			161	(1,709)
Prepaid expenses and other assets			(1,890)	(1,632)
Accounts payable and accrued liabilities			7,815	6,690
Net cash provided by operating activities			49,095	42,824
Cash flows from investing activities
Real estate acquisitions and deposits			(327,653)	(342,566)
Additions to operating properties			(4,064)	(2,221)
Additions to development properties			(38,891)	(5,560)
Net cash used in investing activities			(370,608)	(350,347)
Cash flows from financing activities
Payment of deferred financing costs			(3,208)	(3,398)
Issuance of common shares			297,805	107,190
Credit facility draws			57,500	108,000
Credit facility repayments			(124,250)	(260,917)
Term loan draws			150,000	100,000
Issuance of notes payable				175,000
Issuance of mortgage notes payable				127,500
Repayments of mortgage notes payable			(2,363)	(2,221)
Dividends and distributions paid			(47,541)	(35,483)
Payment of offering costs			(11,321)	(4,222)
Net cash provided by financing activities			316,622	311,449
Net increase in Cash and cash equivalents and Restricted cash			(4,891)	3,926
Cash and cash equivalents and Restricted cash, beginning of period			16,201	6,491	$ 6,491	$ 6,491
Cash and cash equivalents and Restricted cash, end of period	11,310	10,417	11,310	10,417	$ 16,201	$ 11,310
Supplemental disclosure of cash flow information is as follows (amounts in thousands):
Cash paid for interest, net of capitalized interest			13,017	8,236
Financing costs accrued, not paid			1
Offering costs accrued, not paid			8	27
Deferred asset acquisition costs accrued, not paid			86
Unrealized gain (loss) on interest rate swaps, net	$ 406	$ (111)	2,927	(697)
Debt assumed on acquisition of operating property			9,414
Exchange of Common Units for Shares of Common Stock
Non-controlling interest in Operating Partnership			(9,846)	(20,401)
Common stock			6	14
Additional paid-in capital			9,840	20,387
Operating Properties [Member]
Supplemental disclosure of cash flow information is as follows (amounts in thousands):
Additions to properties accrued, not paid			584	819
Development Properties [Member]
Supplemental disclosure of cash flow information is as follows (amounts in thousands):
Additions to properties accrued, not paid			$ 14,061	$ 719

XML

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Organization and Basis of Presentation

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, 2017, 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, 2017 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 1, 2018.

The Company is a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code, 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.

As of September 30, 2018, we wholly owned 56 operating properties in the United States, including 54 operating properties that were leased primarily to U.S. Government tenant agencies and two operating properties that were entirely leased to private tenants, encompassing approximately 4.8 million square feet in the aggregate. In addition, we wholly owned three properties under development that we expect will encompass approximately 0.3 million square feet upon completion. 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 with the tenant agency to meet its needs and objectives.

The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. The Company is the sole general partner of the Operating Partnership. The Company owned approximately 87.5% of the aggregate limited partnership interests in the Operating Partnership (“common units”) at September 30, 2018. 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 September 30, 2018, and the consolidated results of operations for the three and nine months ended September 30, 2018 and 2017 and the consolidated cash flows for the nine months ended September 30, 2018 and 2017. Certain prior year amounts have been reclassified to conform to the current year presentation. 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 and 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. Actual results could differ from those estimates.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

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, 2017.

Revision of Previously Reported Consolidated Financial Statements

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2017, the Company identified an error in the estimated useful life utilized to amortize certain assets associated with three properties contributed at the time of the Company’s initial public offering in the first quarter of 2015. As a result of the error, Depreciation and amortization expense had been overstated and thereby Real estate properties, net, Intangible assets, net and Equity were understated. The Company concluded that the amounts are not material to any of its previously issued consolidated financial statements. However, to maintain proper comparability between our financial statements we have elected to revise prior periods. Accordingly, the Company revised these balances in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The effects of this revision to the consolidated financial statements are as follows (in thousands, except for per share data).

Effect of Revision For the Three Months Ended September 30, 2017	As Previously Reported		Adjustment			As Revised
Total revenues	$	33,858	$	—		$	33,858
Depreciation and amortization		14,141		(191	)		13,950
Total expenses		27,437		(191	)		27,246
Net income		926		191			1,117
Net income available to Easterly Government Properties, Inc.		782		160			942
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		0.02		—			0.02
Comprehensive income		815		191			1,006

Effect of Revision For the Nine Months Ended September 30, 2017	As Previously Reported		Adjustment			As Revised
Depreciation and amortization	$	40,663	$	(572	)	$	40,091
Total expenses		79,433		(572	)		78,861
Net income		3,289		572			3,861
Net income available to Easterly Government Properties, Inc.		2,693		468			3,161
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		0.07		0.01			0.08
Comprehensive income		2,592		572			3,164

Recently Adopted Accounting Pronouncements

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Please refer to Note 10 for more information pertaining to our adoption of this guidance.

On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230), which provides classification guidance for certain cash receipts and cash payments including payment of debt extinguishment costs, settlement of zero-coupon debt instruments, insurance claim payments and distributions from equity method investees. The Company adopted this ASU using the retrospective method and the implementation of this update did not have a material impact on our consolidated financial statements.

On January 1, 2018, the Company adopted and retrospectively applied ASU No. 2016-18, Statement of Cash Flows (Topic 230), which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company now reconciles both cash and cash equivalents and restricted cash in the accompanying Statements of Cash Flows for all periods, whereas under the prior guidance the Company explained the changes during the period for cash and cash equivalents only.

On January 1, 2018, the Company adopted ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term “in-substance nonfinancial asset.”  This ASU also adds guidance for partial sales of nonfinancial assets.  The Company adopted this ASU using the modified retrospective method and the implementation of this update did not have a material impact on our consolidated financial statements.

On January 1, 2018, the Company adopted ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting, which provides updated guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting under the topic.  The Company adopted this ASU using the prospective method to an award modified on or after the adoption date, however, the implementation of this update did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02, Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for in the same manner as operating leases today. As of September 30, 2018, the Company had a sublease for office space in Washington, DC expiring in June 2021 and a lease for office space in San Diego, CA expiring in April 2022.  The remaining contractual payments under the Company’s lease and sublease for office space aggregate $1.5 million.

The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases.  In connection with the new revenue guidance, we believe that the new revenue standard may apply to executory costs and other components of revenue deemed to be non-lease components, even when the revenue for such activities is not separately stipulated in the lease. In that case, we would need to separate the lease components of revenue due under leases from the non-lease components. Under the new guidance, we would continue to recognize the lease components of lease revenue on a straight-line basis over our respective lease terms as we do under prior guidance. However, we would recognize the non-lease components under the new revenue guidance as the related services are delivered. As a result, while the total revenue recognized over time would not differ under the new guidance, the recognition pattern could be different. The Company is currently in the process of evaluating the significance of the difference in the recognition pattern that would result from this change.

In July 2018, the FASB issued ASU 2018-11, Targeted Improvements to Topic 842 Leases. The improvements in ASU 2018-11 provide for (a) an optional new transition method for adoption that results in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and (b) a practical expedient for lessors, under certain circumstances, to combine the lease and non-lease components of revenues for presentation purposes.

Additionally, ASU 2016-02 will require that lessees and lessors capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease.  Under ASU 2016-02, allocated payroll costs and other costs that are incurred regardless of whether the lease is obtained will no longer be capitalized as initial direct costs and instead will be expensed as incurred.

In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which clarifies, corrects, or consolidates authoritative guidance issued in ASU 2016-02 and is effective upon adoption of ASU 2016-02.

ASU No. 2016-02 is effective for reporting periods beginning January 1, 2019, with modified retrospective application for each reporting period presented at the time of adoption or utilizing the optional transition method under ASU 2018-11. Early adoption is also permitted for this guidance. The Company is in the process of evaluating the impact of this new guidance.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of either adopting the new standard early using a modified retrospective transition method in any interim period after issuance of the update, or alternatively adopting the new standard for fiscal years beginning after December 15, 2018. This adoption method may require the Company to recognize the cumulative effect of initially applying the ASU as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the update. While the Company continues to assess all potential impacts of the standard, we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

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Real Estate and Intangibles

9 Months Ended

Sep. 30, 2018

Real Estate [Abstract]

Real Estate and Intangibles

3. Real Estate and Intangibles

During the nine months ended September 30, 2018, we acquired ten operating properties in asset acquisitions, consisting of VA – Golden, VA – San Jose, and the First Closing Properties (as defined below) for an aggregate purchase price of $321.0 million. We allocated the aggregate purchase price based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands):

	Total
Real estate
Land	$	18,835
Building		261,883
Acquired tenant improvements		7,798
Total real estate		288,516
Intangible assets
In-place leases		38,263
Acquired leasing commissions		4,198
Above-market leases		1,307
Total intangible assets		43,768
Intangible liabilities
Below-market leases		(1,827	)
Total intangible liabilities		(1,827	)
Purchase price		330,457
Less: Mortgage note assumed		(9,414	)
Net assets acquired	$	321,043

The intangible assets and liabilities of operating properties acquired during the nine months ended September 30, 2018 has a weighted average amortization period of 6.39 years as of September 30, 2018. During the nine months ended September 30, 2018, we included $3.0 million of revenues and $0.5 million of net income in our consolidated statement of operations related to VA – Golden,VA – San Jose, and the First Closing Properties (as defined below).

On June 15, 2018, we entered into a purchase and sale agreement to acquire a 1,479,762-square foot portfolio of 14 properties (the “Portfolio Properties”) for an aggregate purchase price of approximately $430.0 million.   On September 13, 2018, we closed on the acquisition of eight of the Portfolio Properties (the “First Closing”).  The eight properties acquired in the First Closing, consisting of an aggregate of 1,024,036 square feet, include the following (listed by primary tenant agency, if applicable, and location): Various GSA – Buffalo, NY, Various GSA – Chicago, IL, TREAS – Parkersburg, WV, SSA – Charleston, WV, FBI – Pittsburgh, PA, GSA – Clarksburg, WV, ICE – Pittsburgh, PA and SSA – Dallas, TX (collectively, the “First Closing Properties”).  Please refer to Note 12 for information regarding the six remaining Portfolio Properties.

During the nine months ended September 30, 2018, we incurred $1.0 million of acquisition-related expenses including $0.8 million of internal costs associated with property acquisitions.

Consolidated Real Estate and Intangibles

Real estate and intangibles consisted of the following as of September 30, 2018 (amounts in thousands):

	Total
Real estate properties, net
Land	$	152,999
Building		1,364,862
Acquired tenant improvements		55,301
Construction in progress		67,950
Accumulated depreciation		(94,512	)
Total Real estate properties, net		1,546,600
Intangible assets, net
In-place leases		198,383
Acquired leasing commissions		42,664
Above market leases		10,762
Accumulated amortization		(84,765	)
Total Intangible assets, net		167,044
Intangible liabilities, net
Below market leases		(64,682	)
Accumulated amortization		31,644
Total Intangible liabilities, net	$	(33,038	)

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 September 30, 2018 (amounts in thousands):

	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2018	$	342	$	2,213
2019		1,318		7,379
2020		1,081		6,550
2021		683		4,589
2022		618		2,982

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.

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Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt

4. Debt

At September 30, 2018, our consolidated borrowings consisted of the following (amounts in thousands):

	Principal Outstanding			Interest	Current
Loan	September 30, 2018			Rate (1)	Maturity
Revolving credit facility:
Revolving credit facility (2)	$	33,000		L + 125bps	June 2022 (3)
Total revolving credit facility		33,000
Term loan facilities:
2016 term loan facility		100,000		3.12% (4)	September 2023
2018 term loan facility		150,000		L + 120bps	June 2023
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,587	)
Total term loan facilities, net		248,413
Notes payable:
Senior unsecured notes payable, series A		95,000		4.05%	May 2027
Senior unsecured notes payable, series B		50,000		4.15%	May 2029
Senior unsecured notes payable, series C		30,000		4.30%	May 2032
Total notes payable		175,000
Less: Total unamortized deferred financing fees		(1,248	)
Total notes payable, net		173,752
Mortgage notes payable:
CBP - Savannah		13,676		3.40% (5)	July 2033
ICE - Charleston		18,934		4.21% (5)	January 2027
MEPCOM - Jacksonville		10,121		4.41% (5)	October 2025
USFS II - Albuquerque		16,660		4.46% (5)	July 2026
DEA - Pleasanton		15,700		L + 150bps (5)	October 2023
VA - Loma Linda		127,500		3.59% (5)	July 2027
VA - Golden		9,380		5.00% (5)	April 2024
Total mortgage notes payable		211,971
Less: Total unamortized deferred financing fees		(1,882	)
Less: Total unamortized premium/discount		299
Total mortgage notes payable, net		210,388
Total debt	$	665,553

(1) At September 30, 2018, the one-month LIBOR (“L”) was 2.26%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our revolving credit facility and term loan facilities is based on the Company’s consolidated leverage ratio, as defined in the respective loan agreements.

(2) Available capacity of $417.0 million at September 30, 2018 with an accordion feature that provides additional capacity of up to $250.0 million, subject to the satisfaction of customary terms and conditions.

(3) Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

(4) The interest rate is calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 3.12% annually, based on the Company’s consolidated leverage ratio, as defined in the 2016 term loan facility agreement.

(5) Effective interest rates are as follows: CBP – Savannah 4.12%, ICE – Charleston 3.93%, MEPCOM – Jacksonville 3.89%, USFS II – Albuquerque 3.92%, DEA – Pleasanton 1.8%, VA – Loma Linda 3.78%, VA – Golden 5.03%.

On June 18, 2018, we entered into an amended and restated senior unsecured credit facility (our “amended senior unsecured credit facility”).  Our amended senior unsecured credit facility increased the total borrowing capacity of our existing senior unsecured credit facility by $200.0 million for a total credit facility size of $600.0 million, consisting of two components: (i) a $450.0 million senior unsecured revolving credit facility (the “revolving credit facility”), and (ii) a $150.0 million senior unsecured term loan facility (the “2018 term loan facility”). The revolving credit facility also includes an accordion feature that will provide us with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250.0 million.

The Operating Partnership is the borrower, and we and certain of our subsidiaries that directly own certain of our properties are guarantors under our amended senior unsecured credit facility. The revolving credit facility matures in four years and the 2018 term loan facility matures in five years.  In addition, the revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

Our amended senior unsecured credit facility bears interest, at our option, either at:

• a Eurodollar rate equal to a periodic fixed rate equal to LIBOR plus, a margin ranging from 1.25% to 1.80% for advances under the revolving credit facility and a margin ranging from 1.20% to 1.75% for advances under the 2018 term loan facility; or

• a fluctuating rate equal to the sum of (a) the highest of (x) Citibank, N.A.’s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month Eurodollar rate plus 1.00% plus (b) a margin ranging from 0.25% to 0.80% for advances under the revolving credit facility and a margin ranging from 0.20% to 0.75% for advances under the 2018 term loan facility, in each case with a margin based on our leverage ratio.

The 2018 term loan facility had a 364-day delayed draw period and is prepayable without penalty for the entire term of the loan. On September 10, 2018, we fully drew $150.0 million on our 2018 term loan facility.

In addition, on June 18, 2018, we entered into a second amendment to our existing $100.0 million senior unsecured term loan facility (the “2016 term loan facility”).  The second amendment amends certain covenants and other provisions in the 2016 term loan facility to conform to changes made to such covenants and other provisions in our amended senior unsecured credit facility.

Financial Covenant Considerations

The Company was in compliance with all financial and other covenants as of September 30, 2018 related to its revolving credit facility, 2016 term loan facility, 2018 term loan facility, notes payable and mortgage notes payable.

Fair Value of Debt

As of September 30, 2018, the carrying value of our revolving credit facility approximated fair value. In determining the fair value we considered the short term maturity, variable interest rate and credit spreads. We deem the fair value of our credit facility as a Level 3 measurement.

As of September 30, 2018, the carrying value of our 2016 term loan facility approximated fair value. In determining the fair value we considered the variable interest rate and credit spreads. We deem the fair value of our 2016 term loan facility as a Level 3 measurement.

As of September 30, 2018, the carrying value of our 2018 term loan facility approximated fair value. In determining the fair value we considered the variable interest rate and credit spreads. We deem the fair value of our 2018 term loan facility as a Level 3 measurement.

At September 30, 2018, the fair value of our notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our notes payable instruments as a Level 3 measurement. At September 30, 2018, the fair value of our notes payable was $168.9 million.

At September 30, 2018, the fair value of our mortgage notes payable was determined by discounting future contractual principal and interest payments using prevailing market rates. We deem the fair value measurement of our mortgage notes payable as a Level 3 measurement. At September 30, 2018, the fair value of our mortgage notes payable was $202.8 million. 

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

5. Derivatives and Hedging Activities

As of September 30, 2018, the Company had two outstanding interest rate swaps with an aggregate notional value of $100.0 million that were designated as cash flow hedges. The swaps had an effective date of March 29, 2017 and extend until the maturity of our 2016 term loan facility on September 29, 2023. The swaps effectively fix the interest rate under our 2016 term loan facility at 3.12% annually based on the Company’s current consolidated leverage ratio and a variable interest rate of one-month LIBOR.

Cash Flow Hedges of Interest Rate Risk

As of September 30, 2018 our swaps were classified as an asset on our consolidated balance sheet at $7.0 million. The effective portion of changes in the fair value of derivatives designated and qualified as cash flow hedges is recorded in accumulated other comprehensive income and will be reclassified to interest expense in the period that the hedged forecasted transactions affect earnings on the Company’s consolidated variable rate debt.  The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings into interest expense.  For the three and nine months ended September 30, 2018 the amount of unrealized gains recognized in accumulated other comprehensive income on interest rate swaps was $0.6 million and $3.3 million, respectively. For the three and nine months ended September 30, 2018 the amount of gain reclassified from accumulated other comprehensive income into interest expense was $0.2 million and $0.3 million, respectively. Additionally, during the three and nine months ended September 30, 2018, the Company did not record any hedge ineffectiveness. For the three and nine months ended September 30, 2017 the amount of unrealized loss recognized in accumulated other comprehensive income on interest rate swaps was $0.2 million and $0.8 million, respectively. For the three and nine months ended September 30, 2017 the amount of loss reclassified from accumulated other comprehensive income into interest expense was $0.1 million and $0.2 million, respectively. Additionally, during the three and nine months ended September 30, 2017, the Company did not record any hedge ineffectiveness.

The Company estimates that $1.2 million will be reclassified from accumulated other comprehensive income as a decrease to interest expense over the next 12 months.

Credit-Risk-Related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on such indebtedness.  As of September 30, 2018, the Company did not have any derivatives in a net liability position.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

6. Fair Value Measurements

Accounting standards define fair value as the exit price, or the amount that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The standards also establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.  Observable inputs are inputs market participants would use in valuing the asset or liability developed based on market data obtained from sources independent of us.  Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances.  The hierarchy of these inputs is broken down into three levels: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Categorization within the valuation hierarchy is based upon the lowest level of input that is most significant to the fair value measurement.

Recurring fair value measurements

The fair values of our interest rate swaps are determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities in such interest rates.   While the Company determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties.  The Company has determined that the significance of the impact of the credit valuation adjustments made to its derivative contracts, which determination was based on the fair value of each individual contract, was not significant to the overall valuation. As a result, all of the Company’s derivatives held as of September 30, 2018 were classified as Level 2 of the fair value hierarchy.  

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, other assets and accounts payable and accrued expenses are reasonable estimates of fair values because of the short maturities of these instruments. For our disclosure of debt fair values in Note 4, we estimated the fair value of our 2016 and 2018 term loan facility based on the variable interest rate and credit spreads (categorized within Level 3 of the fair value hierarchy) and estimated the fair value of our other debt based on the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximate current market rates for loans, or groups of loans, with similar maturities and credit quality, and the estimated future payments included scheduled principal and interest payments.  Fair value estimates are made as of a specific point in time, are subjective in nature and involve uncertainties and matters of significant judgment.  Settlement at such fair value amounts may not be possible and may not be a prudent management decision.

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of  September 30, 2018
Balance Sheet Line Item	Level 1		Level 2		Level 3
Interest rate swaps - Asset	$	—	$	6,958	$	—

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Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Equity

7. Equity

The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2018 and 2017 (amounts in thousands, except share amounts):

	Shares		Common Stock Par Value		Additional Paid-in Capital			Retained Earnings (Deficit)		Cumulative Dividends			Accumulated Other Comprehensive Income			Non- controlling Interest in Operating Partnership			Total Equity
Nine months ended September 30, 2018
Balance at December 31, 2017		44,787,040	$	448	$	740,546		$	7,127	$	(83,718	)	$	3,403		$	123,283		$	791,089
Stock based compensation				—		294			—		—			—			2,013			2,307
Dividends and distributions paid				—		—			—		(39,564	)		—			(7,977	)		(47,541	)
Grant of unvested restricted stock		21,328		—		—			—		—			—			—			—
Redemption of common units for    shares of common stock		628,436		6		9,840			—		—			—			(9,846	)		—
Issuance of common stock		15,382,037		154		286,350			—		—			—			—			286,504
Unrealized gain on interest rate swaps,    net				—		—			—		—			2,686			241			2,927
Net income				—		—			5,114								902			6,016
Allocation of non-controlling interest    in Operating Partnership				—		(21,427	)		—		—			—			21,427			—
Balance at September 30, 2018		60,818,841	$	608	$	1,015,603		$	12,241	$	(123,282	)	$	6,089		$	130,043		$	1,041,302
Nine months ended September 30, 2017
Balance at December 31, 2016		36,874,810	$	369	$	597,164		$	2,679	$	(42,794	)	$	3,038		$	137,844		$	698,300
Stock based compensation				—		240			—		—			—			1,975			2,215
Dividends and distributions paid				—		—			—		(29,401	)		—			(6,082	)		(35,483	)
Grant of unvested restricted stock		17,912		—		—			—		—			—			—			—
Redemption of common units for    shares of common stock		1,361,594		14		20,387			—		—			—			(20,401	)		—
Issuance of common stock		5,619,480		56		102,885			—		—			—			—			102,941
Unrealized loss on interest rate swaps,    net				—		—			—		—			(411	)		(286	)		(697	)
Net income				—		—			3,161		—			—			700			3,861
Allocation of non-controlling interest    in Operating Partnership				—		(1,516	)		—		—			—			1,516			—
Balance at September 30, 2017		43,873,796	$	439	$	719,160		$	5,840	$	(72,195	)	$	2,627		$	115,266		$	771,137

The Company granted 891,000 long term incentive plan units in the Operating Partnership (“LTIP units”) on May 6, 2015 and 40,000 LTIP units on February 26, 2016 to members of management as long-term incentive compensation under the 2015 Equity Incentive Plan, as amended (the “2015 Equity Incentive Plan”) subject to the Company achieving certain absolute and relative total shareholder returns through the performance period, which ended on December 31, 2017.  Based on the Company’s absolute and relative total shareholder return performance through the end of the performance period, the compensation committee of the Company’s board of directors determined that an aggregate of 2,079,297 LTIP units were earned. Under the terms of the awards, earned awards vested 50% on February 15, 2018 with the remaining 50% vesting on February 6, 2019, subject to the grantee’s continued employment.

On January 4, 2018, the Company granted an aggregate of 173,381 performance-based LTIP units to members of management under the 2015 Equity Incentive Plan, subject to the Company achieving certain absolute and relative total shareholder returns through the performance period.  The awards consist of three separate tranches of 32,448 LTIP units, 55,463 LTIP units and 85,470 LTIP units with performance periods ending on December 31, 2018, December 31, 2019 and December 31, 2020, respectively. The performance criteria for each tranche is based 75% on the Company’s absolute total shareholder return performance and 25% on the Company’s relative total shareholder return performance during the relevant performance period, with 50% of the LTIP Units vesting when earned following the end of the applicable performance period and 50% of the earned award subject to an additional one year of vesting.

On April 3, 2018, the Company issued an aggregate of 2,236 shares of restricted common stock to certain employees pursuant to our 2015 Equity Incentive Plan. The restricted common stock grants will vest upon the second anniversary of the grant date so long as the grantee remains an employee of the Company on such date.

In connection with our 2018 annual meeting of stockholders, we issued an aggregate of 19,092 shares of restricted common stock to our non-employee directors pursuant to our 2015 Equity Incentive Plan. The restricted common stock grants will vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting.

In connection with the liquidation of certain private investment funds that contributed assets in our initial public offering, we issued 628,436 shares of our common stock between January 1, 2018 and September 30, 2018 upon redemption of 628,436 common units in accordance with the terms of the partnership agreement of the Operating Partnership.

A summary of our shares of restricted common stock and LTIP unit awards at September 30, 2018 is as follows:

	Restricted Shares			Restricted Shares Weighted Average Grant Date Fair Value Per Share		LTIP Units			LTIP Units Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2017		17,912		$	19.72		926,000		$	8.91
Granted		21,328			20.87		173,381			18.31
Vested		(15,220	)		19.71		(463,000	)		8.91
Forfeited		—			—		—			—
Outstanding, September 30, 2018		24,020		$	20.74		636,381		$	11.47

We recognized $2.3 million in compensation expense related to our shares of restricted common stock and the LTIP unit awards for the nine months ended September 30, 2018.  As of September 30, 2018, unrecognized compensation expense for both sets of awards was $2.9 million, which will be amortized over the vesting period.

A summary of dividends declared by the board of directors per share of common stock and per common unit at the date of record is as follows:

Quarter	Declaration Date	Record Date	Pay Date	Dividend (1)
Q1 2018	May 3, 2018	June 11, 2018	June 28, 2018	$	0.26
Q2 2018	August 1, 2018	September 13, 2018	September 27, 2018	$	0.26
Q3 2018	October 29, 2018	December 13, 2018	December 27, 2018	$	0.26

(1) Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of LTIP units are entitled to receive dividends per LTIP unit equal to 10% of the dividend paid per common unit.  After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit.

On March 3, 2017, we entered into separate equity distribution agreements with each of Citigroup Global Markets Inc., BTIG, LLC, Jefferies LLC, Raymond James & Associates, Inc., RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. (collectively, the “managers”), pursuant to which we may issue and sell the shares of our common stock having an aggregate offering price of up to $100.0 million from time to time through the managers, acting as sales agents and/or principals (the “ATM program”). The sales of shares of our common stock under the equity distribution agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended.

The following table sets forth certain information with respect to the ATM program as of September 30, 2018:

	Number of Shares Sold		Net Proceeds
For the year ended December 31, 2017		1,569,514	$	33,263
For the three months ended March 31, 2018		671,666		13,532
For the three months ended June 30, 2018		1,010,371		20,208
For the three months ended September 30, 2018		—		—
Total		3,251,551	$	67,003

We have used the proceeds from such sales for general corporate purposes. As of September 30, 2018, we had approximately $32.3 million of gross sales of our common stock available under the ATM program.

On June 21, 2018, we completed an underwritten public offering of an aggregate of 20,700,000 shares of our common stock, consisting of (i) 13,700,000 shares sold by us to the underwriters (including 2,700,000 shares pursuant to the underwriters’ exercise of their option to purchase additional shares) and (ii) 7,000,000 shares offered and sold on a forward basis in connection with forward sales agreements entered into with certain financial institutions, acting as forward purchasers.  We received approximately $252.9 million in net proceeds from the sale of shares offered by us in the offering, after deducting underwriting discounts and commissions and our offering expenses. Subject to the Company’s right to elect cash or net share settlement, we expect to physically settle the forward sales agreements no later than December 21, 2018. Assuming the forward sales agreements are physically settled in full, we expect to receive an additional $129.3 million of net proceeds, after deducting underwriting discounts, commissions and estimated offering expenses.

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Earnings Per Share

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share

8. Earnings Per Share

Basic earnings or loss per share of common stock (“EPS”) is calculated by dividing net income attributable to common stockholders by the weighted average shares of common stock outstanding for the periods presented. Diluted EPS is computed after adjusting the basic EPS computation for the effect of dilutive common equivalent shares outstanding during the periods presented. Unvested restricted shares and unvested LTIP units are considered participating securities, which require the use of the two-class method for the computation of basic and diluted earnings per share.

The following table sets forth the computation of the Company’s basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2018 and 2017 (amounts in thousands, except per share amounts):

	For the three months ended September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
Numerator
Net income	$	2,482		$	1,117		$	6,016		$	3,861
Less: Non-controlling interest in Operating    Partnership		(327	)		(175	)		(902	)		(700	)
Net income available to Easterly Government    Properties, Inc.		2,155			942			5,114			3,161
Less: Dividends on participating securities		(281	)		(28	)		(842	)		(81	)
Net income available to common stockholders	$	1,874		$	914		$	4,272		$	3,080
Denominator for basic EPS		60,446,199			39,962,471			51,051,388			38,098,805
Dilutive effect of share-based compensation awards		6,204			4,673			8,867			9,193
Dilutive effect of LTIP units (1)		1,012,448			1,936,833			1,172,676			1,904,284
Dilutive effect of shares issuable under forward    sales agreements		514,147			—			367,927			—
Denominator for diluted EPS		61,978,998			41,903,977			52,600,858			40,012,282
Basic EPS	$	0.03		$	0.02		$	0.08		$	0.08
Diluted EPS	$	0.03		$	0.02		$	0.08		$	0.08

(1) During the three and nine months ended September 30, 2018, there were approximately 173,381 unvested performance-based LTIP units that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

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Operating Leases

9 Months Ended

Sep. 30, 2018

Leases [Abstract]

Operating Leases

9. Operating Leases

Our rental properties are subject to generally non-cancelable operating leases generating future minimum contractual rent payments due from tenants. As of September 30, 2018, future non-cancelable minimum contractual rent payments are as follows (amounts in thousands):

	Payments due by period
	Total		2018		2019		2020		2021		2022		Thereafter
Operating Leases
Minimum lease payments	$	1,075,191		33,971		137,136		126,906		102,989		87,492		586,697

The Company’s consolidated operating properties were 100% occupied by 37 tenants at September 30, 2018.  

For the nine months ended September 30, 2018 we recognized $88.9 million in rental income attributable to base rent, $6.7 million in rental income attributable to the amortization of our above- and below-market leases and a straight-line adjustment of $4.2 million.  

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Revenue

9 Months Ended

Sep. 30, 2018

Revenue From Contract With Customer [Abstract]

Revenue

10. Revenue

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) using the modified retrospective method and applied it to all contracts that were not completed as of January 1, 2018. The new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and replaced the existing revenue recognition guidance.  

The adoption of Topic 606 did not have an impact on the Company’s historical financial statements as the revenue that falls under the scope of this guidance is limited to tenant construction projects and the associated management fee, the recognition of which did not change from how the Company has historically accounted for these projects upon adoption of the new guidance.  Tenant construction project reimbursements consist primarily of subcontracted costs that are reimbursed to the Company by the tenant.  

Historically, the Company has accounted for tenant construction project reimbursement arrangements using the percentage of completion method and will continue to recognize revenue from tenant construction projects using the percentage of completion method when the revenue and costs for such projects can be estimated with reasonable accuracy; when these criteria do not apply to a project, the Company recognizes revenue from that project using the completed contract method. Under the percentage of completion method, the Company recognizes a percentage of the total revenue on a project based on the cost of services provided on the project as of a point in time relative to the total costs on the project.  The duration of the majority of tenant construction project reimbursement arrangements are less than a year and payment is typically due once a project is complete and work has been accepted by the tenant.  For those projects ongoing as of September 30, 2018 and with a duration of greater than one year, the aggregate amount of transaction price allocated to remaining performance obligations at the end of the reporting period was $0.1 million, which will be recognized as revenue prior to the end of 2018 using the percentage of completion method as discussed above.

The table below sets forth revenue from tenant construction projects disaggregated by tenant agency for the three and nine months ended September 30, 2018 (in thousands).

	For the three months ended September 30,		For the nine months ended September 30,
Tenant	2018		2018
Administrative Office of the U.S. Courts (“AOC”)	$	26	$	138
Drug Enforcement Administration (“DEA”)		17		203
Federal Bureau of Investigation (“FBI”)		204		329
Immigration and Customs Enforcement (“ICE”)		—		9
National Park Service (“NPS”)		—		31
Social Security Administration (“SSA”)		17		31
U.S. Coast Guard (“USCG”)		—		6
U.S. Citizenship and Immigration Services (“USCIS”)		—		39
U.S. Forest Service (“USFS”)		342		432
Department of Veteran Affairs (“VA”)		572		2,605
	$	1,178	$	3,823

The balance in Accounts receivable related to tenant construction projects was $2.0 million as of September 30, 2018 and $3.0 million as of December 31, 2017. There were no contract assets or liabilities as of September 30, 2018.

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Concentrations Risk

9 Months Ended

Sep. 30, 2018

Risks And Uncertainties [Abstract]

Concentrations Risk

11. Concentrations Risk

Concentrations of credit risk arise for the Company when multiple tenants of the Company are engaged in similar business activities, are located in the same geographic region or have similar economic features that impact in a similar manner their ability to meet contractual obligations, including those to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk.

As stated in Note 1 above, the Company leases commercial space to the U.S. Government or nongovernmental tenants. At September 30, 2018, the U.S Government accounted for approximately 98.7% of rental income and non-governmental tenants accounted for the remaining approximately 1.3%.

Fifteen of our 56 operating properties are located in California, accounting for approximately 21.5% of our total rentable square feet and approximately 29.7% of our total annualized lease income as of September 30, 2018. In addition, we owned two properties under development located in California. To the extent that weak economic or real estate conditions or natural disasters affect California more severely than other areas of the country, our business, financial condition and results of operations could be significantly impacted.

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Subsequent Events

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

12. Subsequent Events

For its consolidated financial statements as of September 30, 2018, the Company evaluated subsequent events and noted the following significant events:

On October 1, 2018, the FEMA – Tracy development project was substantially completed and a 20-year non-cancelable lease commenced with the GSA for the beneficial use of the Federal Emergency Management Agency (“FEMA”).

On October 3, 2018, we entered into a third letter amendment (the “Third Amendment”) to the 2016 term loan facility.  The Third Amendment reduced the interest rate margin applicable to borrowings under the 2016 term loan facility and extended the maturity date by six months to March 29, 2024.

On October 16, 2018, we completed the acquisition of three of the 14 Portfolio Properties (the “Second Closing”).  The three properties acquired in the Second Closing consist of an aggregate of 100,300 square feet and include the following (listed by primary tenant agency and location): AOC – Charleston, SC, VA – Baton Rouge, LA and DEA – Bakersfield, CA.  As a result of the First Closing and the Second Closing, we have completed the acquisition of 11 of the 14 Portfolio Properties.  We expect to close on the remaining three Portfolio Properties prior to December 31, 2018, subject to the satisfaction of customary closing conditions.  

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Revision of Previously Reported Consolidated Financial Statements

<div> <p style="margin-top:18pt;margin-bottom:0pt;font-style:italic;font-family:Times New Roman;font-size:10pt;font-weight:normal;text-transform:none;font-variant: normal;text-indent:4.54%;">Revision of Previously Reported Consolidated Financial Statements</p> <p style="margin-top:6pt;margin-bottom:0pt;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;text-indent:4.54%;">In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2017, the Company identified an error in the estimated useful life utilized to amortize certain assets associated with three properties contributed at the time of the Company’s initial public offering in the first quarter of 2015. As a result of the error, Depreciation and amortization expense had been overstated and thereby Real estate properties, net, Intangible assets, net and Equity were understated. The Company concluded that the amounts are not material to any of its previously issued consolidated financial statements. However, to maintain proper comparability between our financial statements we have elected to revise prior periods. Accordingly, the Company revised these balances in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The effects of this revision to the consolidated financial statements are as follows (in thousands, except for per share data).</p> <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;"> <tr> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%; border-bottom:solid 0.75pt #000000;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Effect of Revision For the Three Months Ended September 30, 2017</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:solid 0.75pt transparent;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td colspan="2" valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As Previously Reported</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:solid 0.75pt transparent;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td colspan="2" valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.54%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Adjustment</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td colspan="2" valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.24%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As Revised</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%; border-top:solid 0.75pt #000000;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total revenues</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">33,858</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">—</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">33,858</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Depreciation and amortization</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">14,141</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(191</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">13,950</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total expenses</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">27,437</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(191</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">27,246</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net income</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">926</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">191</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,117</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net income available to Easterly Government Properties, Inc.</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">782</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">160</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">942</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net income available to Easterly Government Properties, Inc. per share (basic and diluted)</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.02</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">—</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.02</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Comprehensive income</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">815</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">191</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">1,006</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> </table></div> <p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p> <div> <table border="0" cellspacing="0" cellpadding="0" align="center" style="border-collapse:collapse; width:100%;"> <tr> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%; border-bottom:solid 0.75pt #000000;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Effect of Revision For the Nine Months Ended September 30, 2017</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:solid 0.75pt transparent;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td colspan="2" valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.94%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As Previously Reported</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%; border-bottom:solid 0.75pt transparent;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td colspan="2" valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.54%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">Adjustment</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1.48%;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td colspan="2" valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:8.24%; border-bottom:solid 0.75pt #000000;"> <p style="text-align:center;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;">As Revised</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;width:1%; border-bottom:solid 0.75pt transparent;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-size:8pt;font-family:Times New Roman;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%; border-top:solid 0.75pt #000000;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Depreciation and amortization</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">40,663</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(572</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">$</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%; border-top:solid 0.75pt #000000;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">40,091</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Total expenses</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">79,433</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">(572</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">)</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">78,861</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net income</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,289</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">572</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,861</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net income available to Easterly Government Properties, Inc.</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,693</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">468</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,161</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Net income available to Easterly Government Properties, Inc. per share (basic and diluted)</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.07</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.01</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">0.08</p></td> <td valign="bottom" bgcolor="#CFF0FC" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> <tr> <td valign="top" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:66.76%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Comprehensive income</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.94%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">2,592</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.54%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">572</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1.48%;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;font-weight:bold;color:#000000;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:7.24%;white-space:nowrap;"> <p style="text-align:right;margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">3,164</p></td> <td valign="bottom" bgcolor="#FFFFFF" style="padding-left:0pt;padding-Right:0.75pt;padding-Top:0.75pt;padding-Bottom:0pt;width:1%;white-space:nowrap;"> <p style="margin-bottom:0pt;margin-top:0pt;margin-left:0pt;;text-indent:0pt;;color:#000000;font-size:1pt;font-family:Times New Roman;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;"> </p></td> </tr> </table></div> <p style="margin-bottom:0pt;margin-top:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;"> </p></div>

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Please refer to Note 10 for more information pertaining to our adoption of this guidance.

On January 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230), which provides classification guidance for certain cash receipts and cash payments including payment of debt extinguishment costs, settlement of zero-coupon debt instruments, insurance claim payments and distributions from equity method investees. The Company adopted this ASU using the retrospective method and the implementation of this update did not have a material impact on our consolidated financial statements.

On January 1, 2018, the Company adopted and retrospectively applied ASU No. 2016-18, Statement of Cash Flows (Topic 230), which requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company now reconciles both cash and cash equivalents and restricted cash in the accompanying Statements of Cash Flows for all periods, whereas under the prior guidance the Company explained the changes during the period for cash and cash equivalents only.

On January 1, 2018, the Company adopted ASU No. 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. This ASU clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term “in-substance nonfinancial asset.”  This ASU also adds guidance for partial sales of nonfinancial assets.  The Company adopted this ASU using the modified retrospective method and the implementation of this update did not have a material impact on our consolidated financial statements.

On January 1, 2018, the Company adopted ASU 2017-09, Stock Compensation (Topic 718): Scope of Modification Accounting, which provides updated guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting under the topic.  The Company adopted this ASU using the prospective method to an award modified on or after the adoption date, however, the implementation of this update did not have a material impact on our consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02, Leases, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for in the same manner as operating leases today. As of September 30, 2018, the Company had a sublease for office space in Washington, DC expiring in June 2021 and a lease for office space in San Diego, CA expiring in April 2022.  The remaining contractual payments under the Company’s lease and sublease for office space aggregate $1.5 million.

The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases.  In connection with the new revenue guidance, we believe that the new revenue standard may apply to executory costs and other components of revenue deemed to be non-lease components, even when the revenue for such activities is not separately stipulated in the lease. In that case, we would need to separate the lease components of revenue due under leases from the non-lease components. Under the new guidance, we would continue to recognize the lease components of lease revenue on a straight-line basis over our respective lease terms as we do under prior guidance. However, we would recognize the non-lease components under the new revenue guidance as the related services are delivered. As a result, while the total revenue recognized over time would not differ under the new guidance, the recognition pattern could be different. The Company is currently in the process of evaluating the significance of the difference in the recognition pattern that would result from this change.

In July 2018, the FASB issued ASU 2018-11, Targeted Improvements to Topic 842 Leases. The improvements in ASU 2018-11 provide for (a) an optional new transition method for adoption that results in initial recognition of a cumulative effect adjustment to retained earnings in the year of adoption and (b) a practical expedient for lessors, under certain circumstances, to combine the lease and non-lease components of revenues for presentation purposes.

Additionally, ASU 2016-02 will require that lessees and lessors capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease.  Under ASU 2016-02, allocated payroll costs and other costs that are incurred regardless of whether the lease is obtained will no longer be capitalized as initial direct costs and instead will be expensed as incurred.

In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which clarifies, corrects, or consolidates authoritative guidance issued in ASU 2016-02 and is effective upon adoption of ASU 2016-02.

ASU No. 2016-02 is effective for reporting periods beginning January 1, 2019, with modified retrospective application for each reporting period presented at the time of adoption or utilizing the optional transition method under ASU 2018-11. Early adoption is also permitted for this guidance. The Company is in the process of evaluating the impact of this new guidance.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of either adopting the new standard early using a modified retrospective transition method in any interim period after issuance of the update, or alternatively adopting the new standard for fiscal years beginning after December 15, 2018. This adoption method may require the Company to recognize the cumulative effect of initially applying the ASU as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the update. While the Company continues to assess all potential impacts of the standard, we do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Summary of Effect of Revision to Consolidated Financial Statements

The effects of this revision to the consolidated financial statements are as follows (in thousands, except for per share data).

Effect of Revision For the Three Months Ended September 30, 2017	As Previously Reported		Adjustment			As Revised
Total revenues	$	33,858	$	—		$	33,858
Depreciation and amortization		14,141		(191	)		13,950
Total expenses		27,437		(191	)		27,246
Net income		926		191			1,117
Net income available to Easterly Government Properties, Inc.		782		160			942
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		0.02		—			0.02
Comprehensive income		815		191			1,006

Effect of Revision For the Nine Months Ended September 30, 2017	As Previously Reported		Adjustment			As Revised
Depreciation and amortization	$	40,663	$	(572	)	$	40,091
Total expenses		79,433		(572	)		78,861
Net income		3,289		572			3,861
Net income available to Easterly Government Properties, Inc.		2,693		468			3,161
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		0.07		0.01			0.08
Comprehensive income		2,592		572			3,164

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Real Estate and Intangibles (Tables)

9 Months Ended

Sep. 30, 2018

Real Estate [Abstract]

Fair Values of Assets Acquired and Liabilities Assumed

During the nine months ended September 30, 2018, we acquired ten operating properties in asset acquisitions, consisting of VA – Golden, VA – San Jose, and the First Closing Properties (as defined below) for an aggregate purchase price of $321.0 million. We allocated the aggregate purchase price based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands):

	Total
Real estate
Land	$	18,835
Building		261,883
Acquired tenant improvements		7,798
Total real estate		288,516
Intangible assets
In-place leases		38,263
Acquired leasing commissions		4,198
Above-market leases		1,307
Total intangible assets		43,768
Intangible liabilities
Below-market leases		(1,827	)
Total intangible liabilities		(1,827	)
Purchase price		330,457
Less: Mortgage note assumed		(9,414	)
Net assets acquired	$	321,043

Schedule of Real Estate and Intangibles

Real estate and intangibles consisted of the following as of September 30, 2018 (amounts in thousands):

	Total
Real estate properties, net
Land	$	152,999
Building		1,364,862
Acquired tenant improvements		55,301
Construction in progress		67,950
Accumulated depreciation		(94,512	)
Total Real estate properties, net		1,546,600
Intangible assets, net
In-place leases		198,383
Acquired leasing commissions		42,664
Above market leases		10,762
Accumulated amortization		(84,765	)
Total Intangible assets, net		167,044
Intangible liabilities, net
Below market leases		(64,682	)
Accumulated amortization		31,644
Total Intangible liabilities, net	$	(33,038	)

Summary of Scheduled Amortization Market Lease Intangibles

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 September 30, 2018 (amounts in thousands):

	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2018	$	342	$	2,213
2019		1,318		7,379
2020		1,081		6,550
2021		683		4,589
2022		618		2,982

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Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Summary of Borrowings

At September 30, 2018, our consolidated borrowings consisted of the following (amounts in thousands):

	Principal Outstanding			Interest	Current
Loan	September 30, 2018			Rate (1)	Maturity
Revolving credit facility:
Revolving credit facility (2)	$	33,000		L + 125bps	June 2022 (3)
Total revolving credit facility		33,000
Term loan facilities:
2016 term loan facility		100,000		3.12% (4)	September 2023
2018 term loan facility		150,000		L + 120bps	June 2023
Total term loan facilities		250,000
Less: Total unamortized deferred financing fees		(1,587	)
Total term loan facilities, net		248,413
Notes payable:
Senior unsecured notes payable, series A		95,000		4.05%	May 2027
Senior unsecured notes payable, series B		50,000		4.15%	May 2029
Senior unsecured notes payable, series C		30,000		4.30%	May 2032
Total notes payable		175,000
Less: Total unamortized deferred financing fees		(1,248	)
Total notes payable, net		173,752
Mortgage notes payable:
CBP - Savannah		13,676		3.40% (5)	July 2033
ICE - Charleston		18,934		4.21% (5)	January 2027
MEPCOM - Jacksonville		10,121		4.41% (5)	October 2025
USFS II - Albuquerque		16,660		4.46% (5)	July 2026
DEA - Pleasanton		15,700		L + 150bps (5)	October 2023
VA - Loma Linda		127,500		3.59% (5)	July 2027
VA - Golden		9,380		5.00% (5)	April 2024
Total mortgage notes payable		211,971
Less: Total unamortized deferred financing fees		(1,882	)
Less: Total unamortized premium/discount		299
Total mortgage notes payable, net		210,388
Total debt	$	665,553

(1) At September 30, 2018, the one-month LIBOR (“L”) was 2.26%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our revolving credit facility and term loan facilities is based on the Company’s consolidated leverage ratio, as defined in the respective loan agreements.

(2) Available capacity of $417.0 million at September 30, 2018 with an accordion feature that provides additional capacity of up to $250.0 million, subject to the satisfaction of customary terms and conditions.

(3) Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

(4) The interest rate is calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 3.12% annually, based on the Company’s consolidated leverage ratio, as defined in the 2016 term loan facility agreement.

(5) Effective interest rates are as follows: CBP – Savannah 4.12%, ICE – Charleston 3.93%, MEPCOM – Jacksonville 3.89%, USFS II – Albuquerque 3.92%, DEA – Pleasanton 1.8%, VA – Loma Linda 3.78%, VA – Golden 5.03%.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall.

	As of  September 30, 2018
Balance Sheet Line Item	Level 1		Level 2		Level 3
Interest rate swaps - Asset	$	—	$	6,958	$	—

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Equity (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Summary of Changes In Stockholders' Equity

The following table summarizes the changes in our stockholders’ equity for the nine months ended September 30, 2018 and 2017 (amounts in thousands, except share amounts):

	Shares		Common Stock Par Value		Additional Paid-in Capital			Retained Earnings (Deficit)		Cumulative Dividends			Accumulated Other Comprehensive Income			Non- controlling Interest in Operating Partnership			Total Equity
Nine months ended September 30, 2018
Balance at December 31, 2017		44,787,040	$	448	$	740,546		$	7,127	$	(83,718	)	$	3,403		$	123,283		$	791,089
Stock based compensation				—		294			—		—			—			2,013			2,307
Dividends and distributions paid				—		—			—		(39,564	)		—			(7,977	)		(47,541	)
Grant of unvested restricted stock		21,328		—		—			—		—			—			—			—
Redemption of common units for    shares of common stock		628,436		6		9,840			—		—			—			(9,846	)		—
Issuance of common stock		15,382,037		154		286,350			—		—			—			—			286,504
Unrealized gain on interest rate swaps,    net				—		—			—		—			2,686			241			2,927
Net income				—		—			5,114								902			6,016
Allocation of non-controlling interest    in Operating Partnership				—		(21,427	)		—		—			—			21,427			—
Balance at September 30, 2018		60,818,841	$	608	$	1,015,603		$	12,241	$	(123,282	)	$	6,089		$	130,043		$	1,041,302
Nine months ended September 30, 2017
Balance at December 31, 2016		36,874,810	$	369	$	597,164		$	2,679	$	(42,794	)	$	3,038		$	137,844		$	698,300
Stock based compensation				—		240			—		—			—			1,975			2,215
Dividends and distributions paid				—		—			—		(29,401	)		—			(6,082	)		(35,483	)
Grant of unvested restricted stock		17,912		—		—			—		—			—			—			—
Redemption of common units for    shares of common stock		1,361,594		14		20,387			—		—			—			(20,401	)		—
Issuance of common stock		5,619,480		56		102,885			—		—			—			—			102,941
Unrealized loss on interest rate swaps,    net				—		—			—		—			(411	)		(286	)		(697	)
Net income				—		—			3,161		—			—			700			3,861
Allocation of non-controlling interest    in Operating Partnership				—		(1,516	)		—		—			—			1,516			—
Balance at September 30, 2017		43,873,796	$	439	$	719,160		$	5,840	$	(72,195	)	$	2,627		$	115,266		$	771,137

Summary of Shares of Restricted Common Stock and Long-term Incentive Plan Units in Operating Partnership Awards

A summary of our shares of restricted common stock and LTIP unit awards at September 30, 2018 is as follows:

	Restricted Shares			Restricted Shares Weighted Average Grant Date Fair Value Per Share		LTIP Units			LTIP Units Weighted Average Grant Date Fair Value Per Share
Outstanding, December 31, 2017		17,912		$	19.72		926,000		$	8.91
Granted		21,328			20.87		173,381			18.31
Vested		(15,220	)		19.71		(463,000	)		8.91
Forfeited		—			—		—			—
Outstanding, September 30, 2018		24,020		$	20.74		636,381		$	11.47

Summary of Dividends Declared

A summary of dividends declared by the board of directors per share of common stock and per common unit at the date of record is as follows:

Quarter	Declaration Date	Record Date	Pay Date	Dividend (1)
Q1 2018	May 3, 2018	June 11, 2018	June 28, 2018	$	0.26
Q2 2018	August 1, 2018	September 13, 2018	September 27, 2018	$	0.26
Q3 2018	October 29, 2018	December 13, 2018	December 27, 2018	$	0.26

(1) Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of LTIP units are entitled to receive dividends per LTIP unit equal to 10% of the dividend paid per common unit.  After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit.

Schedule of Information with Respect to ATM Program

The following table sets forth certain information with respect to the ATM program as of September 30, 2018:

	Number of Shares Sold		Net Proceeds
For the year ended December 31, 2017		1,569,514	$	33,263
For the three months ended March 31, 2018		671,666		13,532
For the three months ended June 30, 2018		1,010,371		20,208
For the three months ended September 30, 2018		—		—
Total		3,251,551	$	67,003

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Summary of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of the Company’s basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2018 and 2017 (amounts in thousands, except per share amounts):

	For the three months ended September 30,						For the nine months ended September 30,
	2018			2017			2018			2017
Numerator
Net income	$	2,482		$	1,117		$	6,016		$	3,861
Less: Non-controlling interest in Operating    Partnership		(327	)		(175	)		(902	)		(700	)
Net income available to Easterly Government    Properties, Inc.		2,155			942			5,114			3,161
Less: Dividends on participating securities		(281	)		(28	)		(842	)		(81	)
Net income available to common stockholders	$	1,874		$	914		$	4,272		$	3,080
Denominator for basic EPS		60,446,199			39,962,471			51,051,388			38,098,805
Dilutive effect of share-based compensation awards		6,204			4,673			8,867			9,193
Dilutive effect of LTIP units (1)		1,012,448			1,936,833			1,172,676			1,904,284
Dilutive effect of shares issuable under forward    sales agreements		514,147			—			367,927			—
Denominator for diluted EPS		61,978,998			41,903,977			52,600,858			40,012,282
Basic EPS	$	0.03		$	0.02		$	0.08		$	0.08
Diluted EPS	$	0.03		$	0.02		$	0.08		$	0.08

(1) During the three and nine months ended September 30, 2018, there were approximately 173,381 unvested performance-based LTIP units that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

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Operating Leases (Tables)

9 Months Ended

Sep. 30, 2018

Leases [Abstract]

Summary of Future Non Cancellable Minimum Contractual Rent Payments

Our rental properties are subject to generally non-cancelable operating leases generating future minimum contractual rent payments due from tenants. As of September 30, 2018, future non-cancelable minimum contractual rent payments are as follows (amounts in thousands):

	Payments due by period
	Total		2018		2019		2020		2021		2022		Thereafter
Operating Leases
Minimum lease payments	$	1,075,191		33,971		137,136		126,906		102,989		87,492		586,697

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Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Revenue From Contract With Customer [Abstract]

Summary of Revenue from Tenant Construction Projects Disaggregated by Tenant Agency

The table below sets forth revenue from tenant construction projects disaggregated by tenant agency for the three and nine months ended September 30, 2018 (in thousands).

	For the three months ended September 30,		For the nine months ended September 30,
Tenant	2018		2018
Administrative Office of the U.S. Courts (“AOC”)	$	26	$	138
Drug Enforcement Administration (“DEA”)		17		203
Federal Bureau of Investigation (“FBI”)		204		329
Immigration and Customs Enforcement (“ICE”)		—		9
National Park Service (“NPS”)		—		31
Social Security Administration (“SSA”)		17		31
U.S. Coast Guard (“USCG”)		—		6
U.S. Citizenship and Immigration Services (“USCIS”)		—		39
U.S. Forest Service (“USFS”)		342		432
Department of Veteran Affairs (“VA”)		572		2,605
	$	1,178	$	3,823

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Organization and Basis of Presentation - Additional Information (Detail) ft² in Millions	9 Months Ended
	Sep. 30, 2018 ft² Property
Organization And Significant Accounting Policies [Line Items]
Outstanding common units of aggregate limited partnership interest owned percentage	87.50%
Wholly Owned Operating Properties [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	56
Aggregate area of land | ft²	4.8
Wholly Owned Operating Properties [Member] | Government [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	54
Wholly Owned Operating Properties [Member] | Private Tenants [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	2
Wholly Owned Properties Under Development [Member]
Organization And Significant Accounting Policies [Line Items]
Number of properties	3
Aggregate area of land | ft²	0.3

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Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($) Property	Mar. 31, 2015 Property
Accounting Policies [Line Items]
Remaining contractual payments under lease and sublease for office space | $	$ 1,075,191
Corporate Office Leases [Member]
Accounting Policies [Line Items]
Remaining contractual payments under lease and sublease for office space | $	$ 1,500
DISTRICT OF COLUMBIA | Sublease [Member]
Accounting Policies [Line Items]
Operating lease agreement expire date	Jun. 30, 2021
California [Member]
Accounting Policies [Line Items]
Number of properties | Property	15
California [Member] | San Diego [Member]
Accounting Policies [Line Items]
Operating lease agreement expire date	Apr. 30, 2022
Error in Estimated Useful Life Utilized to Amortize Properties [Member]
Accounting Policies [Line Items]
Number of properties | Property		3

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Summary of Significant Accounting Policies - Summary of Effect of Revision to Consolidated Financial Statements (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Total revenues		$ 33,858
Depreciation and amortization	$ 16,109	13,950	$ 45,331	$ 40,091
Total expenses	32,031	27,246	90,386	78,861
Net income	2,482	1,117	6,016	3,861
Net income available to Easterly Government Properties, Inc.	2,155	$ 942	5,114	$ 3,161
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		$ 0.02		$ 0.08
Comprehensive income	$ 2,888	$ 1,006	$ 8,943	$ 3,164
As Previously Reported [Member]
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Total revenues		33,858
Depreciation and amortization		14,141		40,663
Total expenses		27,437		79,433
Net income		926		3,289
Net income available to Easterly Government Properties, Inc.		$ 782		$ 2,693
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)		$ 0.02		$ 0.07
Comprehensive income		$ 815		$ 2,592
Adjustment [Member]
Error Corrections And Prior Period Adjustments Restatement [Line Items]
Depreciation and amortization		(191)		(572)
Total expenses		(191)		(572)
Net income		191		572
Net income available to Easterly Government Properties, Inc.		160		$ 468
Net income available to Easterly Government Properties, Inc. per share (basic and diluted)				$ 0.01
Comprehensive income		$ 191		$ 572

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Real Estate and Intangibles - Additional Information (Detail) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 15, 2018 USD ($) ft² Property	Sep. 30, 2018 USD ($) Property	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Property	Sep. 30, 2017 USD ($)	Sep. 13, 2018 ft² Property
Real Estate Properties [Line Items]
Revenues		$ 39,437	$ 33,858	$ 112,383	$ 94,348
Net income available to Easterly Government Properties, Inc.		2,155	942	5,114	3,161
Acquisition-related expenses		$ 300	$ 206	$ 1,023	$ 1,194
Portfolio Properties [Member] | Purchase and Sale Agreement [Member]
Real Estate Properties [Line Items]
Number of properties | Property	14
Area of properties acquired | ft²	1,479,762
Purchase price	$ 430,000
First Closing Properties [Member] | Purchase and Sale Agreement [Member]
Real Estate Properties [Line Items]
Number of properties | Property						8
Area of properties acquired | ft²						1,024,036
VA Golden, VA San Jose And First Closing Properties [Member] | Operating Properties Acquired [Member]
Real Estate Properties [Line Items]
Number of properties | Property		10		10
Purchase price		$ 321,043		$ 321,043
Weighted average amortization period				6 years 4 months 20 days
Revenues				$ 3,000
Net income available to Easterly Government Properties, Inc.				500
Acquisition-related expenses				1,000
Internal costs related to acquisitions				$ 800

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Real Estate and Intangibles - Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Operating Properties Acquired [Member] - VA Golden, VA San Jose And First Closing Properties [Member] $ in Thousands	Sep. 30, 2018 USD ($)
Business Acquisition [Line Items]
Total real estate	$ 288,516
Total intangible assets	43,768
Total intangible liabilities	(1,827)
Purchase price	330,457
Less: Mortgage note assumed	(9,414)
Net assets acquired	321,043
Real Estate Investment [Member]
Business Acquisition [Line Items]
Land	18,835
Building	261,883
Acquired tenant improvements	7,798
In-place leases [Member]
Business Acquisition [Line Items]
Total intangible assets	38,263
Acquired Leasing Commissions [Member]
Business Acquisition [Line Items]
Total intangible assets	4,198
Above Market Leases [Member]
Business Acquisition [Line Items]
Total intangible assets	1,307
Below Market Leases [Member]
Business Acquisition [Line Items]
Total intangible liabilities	$ (1,827)

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Real Estate and Intangibles - Schedule of Real Estate and Intangibles (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Real estate properties, net
Land	$ 152,999
Building	1,364,862
Acquired tenant improvements	55,301
Construction in progress	67,950
Accumulated depreciation	(94,512)
Total Real estate properties, net	1,546,600	$ 1,230,162
Intangible assets, net
Accumulated amortization	(84,765)
Total Intangible assets, net	167,044
Intangible liabilities, net
Intangible Liabilities, Below market leases	(64,682)
Intangible Liabilities, Accumulated amortization	31,644
Total Intangible liabilities, net	(33,038)
In-place leases [Member]
Intangible assets, net
Above market leases	198,383
Acquired Leasing Commissions [Member]
Intangible assets, net
Above market leases	42,664
Above Market Leases [Member]
Intangible assets, net
Above market leases	$ 10,762

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Real Estate and Intangibles - Summary of Scheduled Amortization Market Lease Intangibles (Detail) $ in Thousands	Sep. 30, 2018 USD ($)
Acquired Above-Market Lease Intangibles
2018	$ 342
2019	1,318
2020	1,081
2021	683
2022	618
Acquired Below-Market Lease Intangibles
2018	2,213
2019	7,379
2020	6,550
2021	4,589
2022	$ 2,982

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Debt - Summary of Borrowings (Detail) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2018	Jun. 18, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Revolving credit facility		$ 33,000		$ 99,750
Less: Total unamortized deferred financing fees		(2,636)		(945)
Total term loan facilities, net, Principal Outstanding		248,413		99,202
Total notes payable, net, Principal Outstanding		173,752		173,692
Total mortgage notes payable, net, Principal Outstanding		210,388		$ 203,250
Total debt, Principal Outstanding		665,553
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility	[1]	$ 33,000
Loan, Interest Rate	[1],[2]	L + 125bps
Loan, Current Maturity	[1],[3]	2022-06
2016 Term Loan Facility [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 100,000	$ 100,000
Loan, Interest Rate	[2],[4]	3.12%
Loan, Current Maturity		2023-09
Term Loan Facility [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 250,000
Less: Total unamortized deferred financing fees		(1,587)
Total term loan facilities, net, Principal Outstanding		248,413
2018 Term Loan Facility [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 150,000
Loan, Interest Rate	[2]	L + 120bps
Loan, Current Maturity		2023-06
Senior Unsecured Notes Payable [Member] | 4.05% Senior Notes, Series A, due May 25, 2027 [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 95,000
Loan, Interest Rate	[2]	4.05%
Loan, Current Maturity		2027-05
Senior Unsecured Notes Payable [Member] | 4.15% Senior Notes, Series B, due May 25, 2029 [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 50,000
Loan, Interest Rate	[2]	4.15%
Loan, Current Maturity		2029-05
Senior Unsecured Notes Payable [Member] | 4.30% Senior Notes, Series C, due May 25, 2032 [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 30,000
Loan, Interest Rate	[2]	4.30%
Loan, Current Maturity		2032-05
Notes Payable [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 175,000
Less: Total unamortized deferred financing fees		(1,248)
Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		211,971
Less: Total unamortized deferred financing fees		(1,882)
Less: Total unamortized premium/discount		299
Mortgage Notes Payable [Member] | CBP Savannah [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 13,676
Loan, Interest Rate	[2],[5]	3.40%
Loan, Current Maturity		2033-07
Mortgage Notes Payable [Member] | ICE Charleston [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 18,934
Loan, Interest Rate	[2],[5]	4.21%
Loan, Current Maturity		2027-01
Mortgage Notes Payable [Member] | MEPCOM Jacksonville [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 10,121
Loan, Interest Rate	[2],[5]	4.41%
Loan, Current Maturity		2025-10
Mortgage Notes Payable [Member] | USFS II Albuquerque [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 16,660
Loan, Interest Rate	[2],[5]	4.46%
Loan, Current Maturity		2026-07
Mortgage Notes Payable [Member] | DEA Pleasanton [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 15,700
Loan, Interest Rate	[2],[5]	L + 150bps
Loan, Current Maturity		2023-10
Mortgage Notes Payable [Member] | VA Loma Linda [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 127,500
Loan, Interest Rate	[2],[5]	3.59%
Loan, Current Maturity		2027-07
Mortgage Notes Payable [Member] | VA Golden [Member]
Debt Instrument [Line Items]
Loan, Principal Outstanding		$ 9,380
Loan, Interest Rate	[2],[5]	5.00%
Loan, Current Maturity		2024-04

[1] Available capacity of $417.0 million at September 30, 2018 with an accordion feature that provides additional capacity of up to $250.0 million, subject to the satisfaction of customary terms and conditions.

[2] At September 30, 2018, the one-month LIBOR (“L”) was 2.26%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our revolving credit facility and term loan facilities is based on the Company’s consolidated leverage ratio, as defined in the respective loan agreements.

[3] Our revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.

[4] The interest rate is calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 3.12% annually, based on the Company’s consolidated leverage ratio, as defined in the 2016 term loan facility agreement.

[5] Effective interest rates are as follows: CBP – Savannah 4.12%, ICE – Charleston 3.93%, MEPCOM – Jacksonville 3.89%, USFS II – Albuquerque 3.92%, DEA – Pleasanton 1.8%, VA – Loma Linda 3.78%, VA – Golden 5.03%.

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Debt - Summary of Borrowings (Parenthetical) (Detail)		9 Months Ended
	Sep. 30, 2018 USD ($) Swap	Sep. 30, 2018 USD ($) Swap	Jun. 18, 2018 USD ($)
CBP Savannah [Member] | Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	4.12%	4.12%
ICE Charleston [Member] | Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.93%	3.93%
MEPCOM Jacksonville [Member] | Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.89%	3.89%
USFS II Albuquerque [Member] | Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.92%	3.92%
DEA Pleasanton [Member] | Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	1.80%	1.80%
VA Loma Linda [Member] | Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	3.78%	3.78%
VA Golden [Member] | Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Effective interest rate	5.03%	5.03%
2016 Term Loan Facility [Member] | Interest Rate Swaps [Member]
Debt Instrument [Line Items]
Number of forward interest rate swaps | Swap	2	2
Aggregate notional value of interest rate swaps	$ 100,000,000	$ 100,000,000
Forward swaps interest rate	3.12%	3.12%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Amount available under revolving credit facility	$ 417,000,000	$ 417,000,000
Credit facility additional maximum borrowing capacity	$ 250,000,000	$ 250,000,000	$ 250,000,000
Line of Credit Facility, Description		Revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.
LIBOR [Member]
Debt Instrument [Line Items]
Loan, interest rate	2.26%

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Debt - Additional Information (Detail) - USD ($)					9 Months Ended
		Sep. 30, 2018	Sep. 10, 2018	Jun. 18, 2018	Sep. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity				$ 600,000,000
Credit facility increase in maximum borrowing capacity				$ 200,000,000
Debt instrument fully drew amount					$ 150,000,000	$ 100,000,000
Fair value of notes payable		$ 168,900,000			168,900,000
Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
Senior unsecured term loan facility		211,971,000			211,971,000
Fair value of debt		$ 202,800,000			$ 202,800,000
LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin		2.26%
Federal Funds Effective Rate [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				0.50%
Eurodollar [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				1.00%
2018 Term Loan Facility [Member]
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity				$ 150,000,000
Term loan facility maturity year				5 years
Debt instrument, variable rate description	[1]				L + 120bps
Debt instrument delayed draw period				364 days
Debt instrument fully drew amount			$ 150,000,000
Senior unsecured term loan facility		$ 150,000,000			$ 150,000,000
2018 Term Loan Facility [Member] | Minimum [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				1.20%
2018 Term Loan Facility [Member] | Minimum [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				0.20%
2018 Term Loan Facility [Member] | Maximum [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				1.75%
2018 Term Loan Facility [Member] | Maximum [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				0.75%
2016 Term Loan Facility [Member]
Debt Instrument [Line Items]
Senior unsecured term loan facility		100,000,000		$ 100,000,000	100,000,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity				450,000,000
Credit facility additional maximum borrowing capacity		$ 250,000,000		$ 250,000,000	$ 250,000,000
Revolving credit facility maturity year				4 years
Line of Credit Facility, Description					Revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee.
Debt instrument, variable rate description	[1],[2]				L + 125bps
Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				1.25%
Revolving Credit Facility [Member] | Minimum [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				0.25%
Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				1.80%
Revolving Credit Facility [Member] | Maximum [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate margin				0.80%
Revolving Credit Facility [Member] | Senior Unsecured Debt [Member]
Debt Instrument [Line Items]
Debt instrument, variable rate description					 a fluctuating rate equal to the sum of (a) the highest of (x) Citibank, N.A.’s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month Eurodollar rate plus 1.00% plus (b) a margin ranging from 0.25% to 0.80% for advances under the revolving credit facility and a margin ranging from 0.20% to 0.75% for advances under the 2018 term loan facility, in each case with a margin based on our leverage ratio.

[1] At September 30, 2018, the one-month LIBOR (“L”) was 2.26%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums. The spread over the applicable rate for our revolving credit facility and term loan facilities is based on the Company’s consolidated leverage ratio, as defined in the respective loan agreements.

[2] Available capacity of $417.0 million at September 30, 2018 with an accordion feature that provides additional capacity of up to $250.0 million, subject to the satisfaction of customary terms and conditions.

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Derivative and Hedging Activities - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2018 USD ($) Swap	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) Swap	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Derivative [Line Items]
Interest rate swaps	$ 6,958,000		$ 6,958,000		$ 4,031,000
Unrealized gain (loss) recognized in accumulated other comprehensive income on interest rate swaps	600,000	$ (200,000)	3,300,000	$ (800,000)
Gain (loss) reclassified from accumulated other comprehensive income into interest expense	200,000	(100,000)	300,000	(200,000)
Gain (loss) on interest rate cash flow hedge ineffectiveness	0	$ 0	0	$ 0
Estimates reclassified from accumulated other comprehensive income decrease to interest expense over the next 12 months			1,200,000
Credit risk related contingent features derivatives in a net liability position	$ 0		$ 0
Interest Rate Swaps [Member] | 2016 Term Loan Facility [Member]
Derivative [Line Items]
Number of forward interest rate swaps | Swap	2		2
Aggregate notional value of interest rate swaps	$ 100,000,000		$ 100,000,000
Forward swaps effective date			Mar. 29, 2017
Maturity of senior unsecured term loan facility			Sep. 29, 2023
Forward swaps interest rate	3.12%		3.12%
Interest rate swap description			The swaps effectively fix the interest rate under our 2016 term loan facility at 3.12% annually based on the Company’s current consolidated leverage ratio and a variable interest rate of one-month LIBOR.
Variable interest rate receive on interest rate swaps			one-month LIBOR

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Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swaps - Asset	$ 6,958	$ 4,031
Fair Value Measured on Recurring Basis [Member] | Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest rate swaps - Asset	$ 6,958

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Equity - Summary of Changes In Stockholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended	21 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Sep. 30, 2018
Shareholders Equity [Line Items]
Balance			$ 791,089	$ 698,300	$ 698,300	$ 698,300
Stock based compensation			2,307	2,215
Dividends and distributions paid			(47,541)	(35,483)
Issuance of common stock			286,504	102,941
Unrealized gain (loss) on interest rate swaps, net	$ 406	$ (111)	2,927	(697)
Net income	2,482	1,117	6,016	3,861
Balance	$ 1,041,302	771,137	$ 1,041,302	771,137	$ 791,089	$ 1,041,302
Balance (in shares)	60,818,841		60,818,841		44,787,040	60,818,841
Common Stock Par Value [Member]
Shareholders Equity [Line Items]
Balance			$ 448	$ 369	$ 369	$ 369
Balance (in shares)			44,787,040	36,874,810	36,874,810	36,874,810
Grant of unvested restricted stock (in shares)			21,328	17,912
Redemption of common units for shares of common stock			$ 6	$ 14
Redemption of common units for shares of common stock (in shares)			628,436	1,361,594
Issuance of common stock			$ 154	$ 56
Issuance of common stock (in share)			15,382,037	5,619,480
Balance	$ 608	$ 439	$ 608	$ 439	$ 448	$ 608
Balance (in shares)	60,818,841	43,873,796	60,818,841	43,873,796		60,818,841
Additional Paid-in Capital [Member]
Shareholders Equity [Line Items]
Balance			$ 740,546	$ 597,164	597,164	$ 597,164
Stock based compensation			294	240
Redemption of common units for shares of common stock			9,840	20,387
Issuance of common stock			286,350	102,885
Allocation of non-controlling interest in Operating Partnership			(21,427)	(1,516)
Balance	$ 1,015,603	$ 719,160	1,015,603	719,160	740,546	1,015,603
Retained Earnings (Deficit) [Member]
Shareholders Equity [Line Items]
Balance			7,127	2,679	2,679	2,679
Net income			5,114	3,161
Balance	12,241	5,840	12,241	5,840	7,127	12,241
Cumulative Dividends [Member]
Shareholders Equity [Line Items]
Balance			(83,718)	(42,794)	(42,794)	(42,794)
Dividends and distributions paid			(39,564)	(29,401)
Balance	(123,282)	(72,195)	(123,282)	(72,195)	(83,718)	(123,282)
Accumulated Other Comprehensive Income [Member]
Shareholders Equity [Line Items]
Balance			3,403	3,038	3,038	3,038
Unrealized gain (loss) on interest rate swaps, net			2,686	(411)
Balance	6,089	2,627	6,089	2,627	3,403	6,089
Non-controlling Interest in Operating Partnership [Member]
Shareholders Equity [Line Items]
Balance			123,283	137,844	137,844	137,844
Stock based compensation			2,013	1,975
Dividends and distributions paid			(7,977)	(6,082)
Redemption of common units for shares of common stock			(9,846)	(20,401)
Unrealized gain (loss) on interest rate swaps, net			241	(286)
Net income			902	700
Allocation of non-controlling interest in Operating Partnership			21,427	1,516
Balance	$ 130,043	$ 115,266	$ 130,043	$ 115,266	$ 123,283	$ 130,043

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Equity - Additional Information (Detail)							9 Months Ended	12 Months Ended
	Jun. 21, 2018 USD ($) shares	Apr. 03, 2018 shares	Jan. 04, 2018 Tranche shares	Mar. 03, 2017 USD ($)	Feb. 26, 2016 shares	May 06, 2015 shares	Sep. 30, 2018 USD ($) shares	Dec. 31, 2017 shares
Stockholders Equity Note Disclosure [Line Items]
Unrecognized compensation expense | $							$ 2,900,000
Aggregate offering price of shares of common stock that the Company may issue and sell | $				$ 100,000,000
Common Stock, shares issued							60,818,841	44,787,040
Initial Public Offering [Member]
Stockholders Equity Note Disclosure [Line Items]
Redemption of common units for shares of common stock (in shares)							628,436
Underwritten Public Offering [Member]
Stockholders Equity Note Disclosure [Line Items]
Common Stock, shares issued	20,700,000
Shares offered directly by the company	13,700,000
Underwriters option to purchase additional shares	2,700,000
Shares offered on forward basis	7,000,000
Gross proceeds from shares sold to underwriters | $	$ 252,900,000
Forward sales agreements settlement date							Dec. 21, 2018
Shares offered on forward basis, amount | $	$ 129,300,000
2015 Equity Incentive Plan [Member]
Stockholders Equity Note Disclosure [Line Items]
Compensation expense recognized | $							$ 2,300,000
2015 Equity Incentive Plan [Member] | Employee [Member]
Stockholders Equity Note Disclosure [Line Items]
Restricted common stock issued		2,236
Restricted common stock grants, vesting description							The restricted common stock grants will vest upon the second anniversary of the grant date so long as the grantee remains an employee of the Company on such date.
2015 Equity Incentive Plan [Member] | Non-employee Director [Member]
Stockholders Equity Note Disclosure [Line Items]
Restricted common stock issued							19,092
Restricted common stock grants, vesting description							The restricted common stock grants will vest upon the earlier of the anniversary of the date of the grant or the next annual stockholder meeting.
ATM Program
Stockholders Equity Note Disclosure [Line Items]
Gross sale of common stock available for grant | $							$ 32,300,000
Long Term Incentive Plan [Member]
Stockholders Equity Note Disclosure [Line Items]
LTIP units of limited partnership interest, granted							173,381
Aggregate LTIP units earned, during the period								2,079,297
Number of tranches | Tranche			3
Percentage of awards based on absolute shareholder return performance			75.00%
Percentage of awards based on relative shareholder return performance			25.00%
Percentage of awards vesting when earned following completion of applicable performance period			50.00%
Percentage of awards earned subject to additional year of vesting			50.00%
Additional vesting year of awards			1 year
Long Term Incentive Plan [Member] | 2015 Equity Incentive Plan [Member]
Stockholders Equity Note Disclosure [Line Items]
LTIP units of limited partnership interest, granted					40,000	891,000
Aggregate performance-based units granted			173,381
Tranche One [Member] | Long Term Incentive Plan [Member]
Stockholders Equity Note Disclosure [Line Items]
Percentage of shares vest under long term incentive plan								50.00%
Aggregate performance-based units granted			32,448
Tranche Two [Member] | Long Term Incentive Plan [Member]
Stockholders Equity Note Disclosure [Line Items]
Percentage of shares vest under long term incentive plan								50.00%
Aggregate performance-based units granted			55,463
Tranche Three [Member] | Long Term Incentive Plan [Member]
Stockholders Equity Note Disclosure [Line Items]
Aggregate performance-based units granted			85,470

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Equity - Summary of Shares of Restricted Common Stock and Long-term Incentive Plan Units in Operating Partnership Awards (Detail)	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Restricted Shares [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares/Units, Outstanding beginning balance | shares	17,912
Shares/Units, Granted | shares	21,328
Shares/Units, Vested | shares	(15,220)
Shares/Units, Outstanding ending balance | shares	24,020
Weighted Average Grant Date Fair Value Per Share, Outstanding beginning balance | $ / shares	$ 19.72
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares	20.87
Weighted Average Grant Date Fair Value Per Share, Vested | $ / shares	19.71
Weighted Average Grant Date Fair Value Per Share, Outstanding ending balance | $ / shares	$ 20.74
Long Term Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares/Units, Outstanding beginning balance | shares	926,000
Shares/Units, Granted | shares	173,381
Shares/Units, Vested | shares	(463,000)
Shares/Units, Outstanding ending balance | shares	636,381
Weighted Average Grant Date Fair Value Per Share, Outstanding beginning balance | $ / shares	$ 8.91
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares	18.31
Weighted Average Grant Date Fair Value Per Share, Vested | $ / shares	8.91
Weighted Average Grant Date Fair Value Per Share, Outstanding ending balance | $ / shares	$ 11.47

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Equity - Summary of Dividends Declared (Detail) - $ / shares		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Dividends Payable [Line Items]
Dividend		$ 0.26	$ 0.25	$ 0.78	$ 0.74
Q1 2018
Dividends Payable [Line Items]
Declaration Date				May 03, 2018
Record Date				Jun. 11, 2018
Pay Date				Jun. 28, 2018
Dividend	[1]			$ 0.26
Q2 2018
Dividends Payable [Line Items]
Declaration Date				Aug. 01, 2018
Record Date				Sep. 13, 2018
Pay Date				Sep. 27, 2018
Dividend	[1]			$ 0.26
Q3 2018
Dividends Payable [Line Items]
Declaration Date				Oct. 29, 2018
Record Date				Dec. 13, 2018
Pay Date				Dec. 27, 2018
Dividend	[1]			$ 0.26

[1] Prior to the end of the performance period as set forth in the applicable LTIP unit award, holders of LTIP units are entitled to receive dividends per LTIP unit equal to 10% of the dividend paid per common unit. After the end of the performance period, the number of LTIP units, both vested and unvested, that LTIP award recipients have earned, if any, are entitled to receive dividends in an amount per LTIP unit equal to dividends, both regular and special, payable per common unit.

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Equity - Summary of Dividends Declared (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Operating partnership dividend rate percentage	10.00%

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Equity - Schedule of Information with Respect to ATM Program (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended	21 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Sep. 30, 2018
Subsidiary Sale Of Stock [Line Items]
Net Proceeds			$ 297,805	$ 107,190
ATM Program
Subsidiary Sale Of Stock [Line Items]
Number of Shares Sold	1,010,371	671,666			1,569,514	3,251,551
Net Proceeds	$ 20,208	$ 13,532			$ 33,263	$ 67,003

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Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share Basic And Diluted [Line Items]
Net income		$ 2,482	$ 1,117	$ 6,016	$ 3,861
Less: Non-controlling interest in Operating Partnership		(327)	(175)	(902)	(700)
Net income available to Easterly Government Properties, Inc.		2,155	942	5,114	3,161
Less: Dividends on participating securities		(281)	(28)	(842)	(81)
Net income available to common stockholders		$ 1,874	$ 914	$ 4,272	$ 3,080
Denominator for basic EPS		60,446,199	39,962,471	51,051,388	38,098,805
Denominator for diluted EPS		61,978,998	41,903,977	52,600,858	40,012,282
Basic EPS		$ 0.03	$ 0.02	$ 0.08	$ 0.08
Diluted EPS		$ 0.03	$ 0.02	$ 0.08	$ 0.08
Stock Compensation Plan [Member]
Earnings Per Share Basic And Diluted [Line Items]
Dilutive effect		6,204	4,673	8,867	9,193
Long Term Incentive Plan [Member]
Earnings Per Share Basic And Diluted [Line Items]
Dilutive effect	[1]	1,012,448	1,936,833	1,172,676	1,904,284
Forward Sales Agreements [Member]
Earnings Per Share Basic And Diluted [Line Items]
Dilutive effect		514,147		367,927

[1] During the three and nine months ended September 30, 2018, there were approximately 173,381 unvested performance-based LTIP units that were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the period.

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Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Unvested Performance-Based Long Term Incentive Plan [Member]
Earnings Per Share Basic And Diluted [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	173,381	173,381

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Operating Leases - Summary of Future Non Cancellable Minimum Contractual Rent Payments (Detail) $ in Thousands	Sep. 30, 2018 USD ($)
Leases [Abstract]
Minimum lease payments, Total	$ 1,075,191
Minimum lease payments, 2018	33,971
Minimum lease payments, 2019	137,136
Minimum lease payments, 2020	126,906
Minimum lease payments, 2021	102,989
Minimum lease payments, 2022	87,492
Minimum lease payments, Thereafter	$ 586,697

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Operating Leases - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($) Tenants	Sep. 30, 2017 USD ($)
Leases [Abstract]
Number of consolidated operating properties	100.00%
Number of tenants | Tenants	37
Rental income attributable to base rent	$ 88,900
Amortization of above and below market leases	6,737	$ 6,283
Straight-line rent adjustments	$ 4,200

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Revenue - Additional Information (Detail) - ASU 2014-09 [Member] - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Aggregate amount of transaction price allocted to remaining performance obligations	$ 100,000
Accounts receivable related to tenant construction projects	2,000,000	$ 3,000,000
Contract assets	0
Contract liabilities	$ 0

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Revenue - Summary of Revenue from Tenant Construction Projects Disaggregated by Tenant Agency (Detail) - ASU 2014-09 [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income	$ 1,178	$ 3,823
Administrative Office of the U.S. Courts ("AOC") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income	26	138
Drug Enforcement Administration ("DEA") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income	17	203
Federal Bureau of Investigation ("FBI") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income	204	329
Immigration and Customs Enforcement ("ICE") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income		9
National Park Service ("NPS") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income		31
Social Security Administration ("SSA") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income	17	31
U.S. Coast Guard ("USCG") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income		6
U.S. Citizenship and Immigration Services ("USCIS") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income		39
U.S. Forest Service ("USFS") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income	342	432
Department of Veteran Affairs ("VA") [Member]
Disaggregation Of Revenue [Line Items]
Tenant Construction Project Income	$ 572	$ 2,605

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Concentrations Risk - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 Property
Wholly Owned Properties [Member]
Concentration Risk [Line Items]
Number of properties	56
California [Member]
Concentration Risk [Line Items]
Number of properties	15
California [Member] | Properties Under Development [Member]
Concentration Risk [Line Items]
Number of properties	2
Lease Income [Member] | Credit Concentration Risk [Member] | California [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	29.70%
Rentable Square Feet [Member] | Credit Concentration Risk [Member] | California [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	21.50%
U.S. Government [Member] | Lease Income [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	98.70%
Non Governmental Tenants [Member] | Lease Income [Member] | Credit Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	1.30%

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Subsequent Events - Additional Information (Detail) - Subsequent Event [Member]	Oct. 16, 2018 ft² Property	Oct. 03, 2018	Oct. 01, 2018
Subsequent Event [Line Items]
Lease term			20 years
Number of remaining portfolio properties	3
Portfolio Properties [Member]
Subsequent Event [Line Items]
Number of properties	14
First Closing and Second Closing [Member]
Subsequent Event [Line Items]
Number of properties	11
AOC Charleston, SC, VA Baton Rouge, LA and DEA Bakersfield, CA [Member] | Second Closing [Member]
Subsequent Event [Line Items]
Number of properties	3
Area of properties acquired | ft²	100,300
2016 Term Loan Facility [Member]
Subsequent Event [Line Items]
Debt instrument maturity date		Mar. 29, 2024