dea-ex992

We make statements in this Supplemental Information Package that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement in this Supplemental Information Package for purposes of complying with those safe harbor provisions. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation: risks associated with our dependence on the U.S. Government and its agencies for substantially all of our revenues; 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 to 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; and other risks and uncertainties detailed in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2018, to be filed with the Securities and Exchange Commission on or about February 28, 2019 and the factors included under the heading “Risk Factors” in our other public filings. In addition, our qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. We assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Ratings are not recommendations to buy, sell or hold the Company’s securities.

The following discussion related to the consolidated financial statements of the Company should be read in conjunction with the financial statements for the year ended December 31, 2018 that will be released on Form 10-K to be filed on or about February 28, 2019.

This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this Supplemental Information Package and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. Additional detail can be found in the Company’s most recent quarterly report on Form 10-Q and the Company’s most recent annual report on Form 10-K, as well as other documents filed with or furnished to the SEC from time to time.

Annualized lease income is defined as the 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 net expense reimbursements earned by us for the last month in such period.

Cash Available for Distribution (CAD) is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is calculated in accordance with the current NAREIT definition as FFO minus normalized recurring real estate-related expenditures and other non-cash items and nonrecurring expenditures. CAD is presented solely as a supplemental disclosure because the Company believes it provides useful information regarding the Company’s ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.

Cash fixed charge coverage ratio is calculated as EBITDA divided by the sum of principal amortization and interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.

Cash interest coverage ratio is calculated as EBITDA divided by interest expense, excluding amortization of premiums / discounts and deferred financing fees, for the most recent quarter.

EBITDA is calculated as the sum of net income (loss) before interest expense, income taxes, depreciation and amortization. EBITDA is not intended to represent cash flow for the period, is not presented as an alternative to operating income as an indicator of operating performance, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not indicative of operating income or cash provided by operating activities as determined under GAAP. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.

Fully diluted basis assumes the exchange of all outstanding common units representing limited partnership interests in the Company’s operating partnership, or common units, the full vesting of all shares of restricted stock, and the exchange of all earned and vested LTIP units in the Company’s operating partnership for shares of common stock on a one-for-one basis, which is not the same as the meaning of “fully diluted” under GAAP.

Funds From Operations (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. FFO is a widely recognized measure of REIT performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors.

Funds From Operations, as Adjusted (FFO, as Adjusted) adjusts FFO to present 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. By excluding these income and expense items from FFO, as Adjusted, the Company believes it provides useful information as these items have no cash impact. In addition, by excluding acquisition related costs the Company believes FFO, as Adjusted provides useful information that is comparable across periods and more accurately reflects the operating performance of the Company’s properties.

Net Operating Income (NOI) is calculated as net income plus depreciation and amortization, acquisition costs, corporate general and administrative costs, interest expense and gains or losses from sales of property. Cash NOI excludes from NOI straight-line rent and amortization of above-/below market leases. NOI and Cash NOI presented by the Company may not be comparable to NOI and Cash NOI reported by other REITs that define NOI and Cash NOI differently. The Company believes that NOI and Cash NOI provide investors with useful measures of the operating performance of our properties. NOI and Cash NOI should not be considered an alternative to net income as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions.

Any opinions, estimates, forecasts or predictions regarding Easterly Government Properties, Inc.’s performance made by these analysts are theirs alone and do not represent opinions, estimates, forecasts or predictions of Easterly Government Properties, Inc. or its management. Easterly Government Properties, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such opinions, estimates, forecasts or predictions.


Price of Common Shares	Three months ended December 31, 2018			Earnings	Three months ended December 31, 2018			Three months ended December 31, 2017
High closing price during period	$	19.17		Net income available to Easterly Government Properties, Inc.	$	590			$	1,287
Low closing price during period	$	15.29		Net income available to Easterly Government Properties, Inc.
End of period closing price	$	15.68		per share:
				Basic	$	0.01			$	0.03
Outstanding Classes of Stock and				Diluted	$	0.01			$	0.03
Partnership Units - Fully Diluted Basis	At December 31, 2018
Common shares		60,825,186		Net income	$	643			$	1,528
Unvested restricted shares		24,020		Net income, per share - fully diluted basis	$	0.01			$	0.03
Common partnership and vested LTIP units		8,920,847
Total - fully diluted basis		69,770,053		Funds From Operations ("FFO")	$	21,715			$	16,620
				FFO, per share - fully diluted basis	$	0.31			$	0.32
Market Capitalization	At December 31, 2018
Total equity market capitalization - fully diluted basis	$	1,093,994		Funds From Operations, as Adjusted	$	20,084			$	14,343
Consolidated debt⁽¹⁾		770,895		FFO, as Adjusted, per share - fully diluted basis	$	0.29			$	0.27
Cash and cash equivalents		(6,854	)
Total enterprise value	$	1,858,035		Cash Available for Distribution	$	17,303			$	12,160

Ratios	At December 31, 2018			Liquidity			At December 31, 2018
Net debt to total enterprise value⁽²⁾		41.1	%	Cash and cash equivalents					$	6,854
Net debt to annualized quarterly EBITDA⁽²⁾		6.7	x
Pro forma net debt to annualized quarterly EBITDA⁽³⁾		6.6	x	Available under $450 million unsecured revolving credit facility⁽⁴⁾					$	315,250
Cash interest coverage ratio		4.3	x
Cash fixed charge coverage ratio		3.9	x

⁽³⁾Pro-forma assuming a full quarter of operations from the five properties acquired in the fourth quarter of 2018.

⁽⁴⁾Revolving credit facility has an accordion feature that provides additional capacity, subject to the satisfaction of customary terms and conditions, of up to $250 million, for a total revolving credit facility size of not more than $700 million.

	December 31, 2018			December 31, 2017
Assets
Real estate properties, net	$	1,626,617		$	1,230,162
Cash and cash equivalents		6,854			12,682
Restricted cash		4,251			3,519
Deposits on acquisitions		7,070			750
Rents receivable		21,140			12,751
Accounts receivable		11,690			9,347
Deferred financing, net		2,459			945
Intangible assets, net		165,668			143,063
Interest rate swaps		4,563			4,031
Prepaid expenses and other assets		11,238			8,088
Total assets	$	1,861,550		$	1,425,338

Liabilities
Revolving credit facility		134,750			99,750
Term loan facilities, net		248,238			99,202
Notes payable, net		173,778			173,692
Mortgage notes payable, net		209,589			203,250
Intangible liabilities, net		30,835			38,569
Interest rate swaps		1,797			-
Accounts payable and accrued liabilities		37,310			19,786
Total liabilities		836,297			634,249

Equity
Common stock, par value $0.01, 200,000,000 shares authorized,
60,849,206 and 44,787,040 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively.		608			448
Additional paid-in capital		1,017,415			740,546
Retained earnings		12,831			7,127
Cumulative dividends		(139,103	)		(83,718	)
Accumulated other comprehensive income		2,412			3,403
Total stockholders' equity		894,163			667,806
Non-controlling interest in Operating Partnership		131,090			123,283
Total equity		1,025,253			791,089
Total liabilities and equity	$	1,861,550		$	1,425,338

	Three Months Ended						Year Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Revenues
Rental income	$	42,414		$	32,402		$	142,381		$	116,002
Tenant reimbursements		5,320			3,773			16,978			13,929
Other income		474			150			1,232			742
Total revenues		48,208			36,325			160,591			130,673

Expenses
Property operating		9,349			6,003			30,912			24,907
Real estate taxes		5,538			4,564			17,311			13,730
Depreciation and amortization		21,072			14,782			66,403			54,873
Acquisition costs		556			299			1,579			1,493
Corporate general and administrative		4,128			3,394			14,824			12,900
Total expenses		40,643			29,042			131,029			107,903

Other expenses
Interest expense, net		(6,922	)		(5,445	)		(22,903	)		(17,071	)
Loss on the sale of operating property		-			(310	)		-			(310	)
Net income		643			1,528			6,659			5,389

Non-controlling interest in Operating Partnership		(53	)		(241	)		(955	)		(941	)
Net income available to Easterly Government
Properties, Inc.	$	590		$	1,287		$	5,704		$	4,448

Net income available to Easterly Government
Properties, Inc. per share:
Basic	$	0.01		$	0.03		$	0.09		$	0.11
Diluted	$	0.01		$	0.03		$	0.08		$	0.10

Weighted-average common shares outstanding:
Basic		60,810,173			44,085,339			53,511,137			39,607,740
Diluted		61,846,131			46,089,594			54,931,380			41,563,540

Net income, per share - fully diluted basis	$	0.01		$	0.03		$	0.11		$	0.11

Weighted average common shares outstanding -
fully diluted basis		69,654,783			52,362,459			62,499,743			48,009,544


	Three Months Ended						Year Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017

Net income	$	643		$	1,528		$	6,659		$	5,389
Depreciation and amortization		21,072			14,782			66,403			54,873
Acquisition costs		556			299			1,579			1,493
Corporate general and administrative		4,128			3,394			14,824			12,900
Interest expense		6,922			5,445			22,903			17,071
Loss on the sale of operating property		-			310			-			310
Net Operating Income		33,321			25,758			112,368			92,036
Adjustments to Net Operating Income:
Straight-line rent		(1,378	)		(1,403	)		(5,616	)		(2,779	)
Above-/below-market leases		(1,856	)		(2,234	)		(8,593	)		(8,517	)
Cash Net Operating Income	$	30,087		$	22,121		$	98,159		$	80,740

	Three Months Ended						Year Ended
	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Net income	$	643		$	1,528		$	6,659		$	5,389
Depreciation and amortization		21,072			14,782			66,403			54,873
Interest expense		6,922			5,445			22,903			17,071
EBITDA	$	28,637		$	21,755		$	95,965		$	77,333

Pro forma adjustments⁽¹⁾		368
Pro forma EBITDA	$	29,005

Net income	$	643		$	1,528		$	6,659		$	5,389
Depreciation and amortization		21,072			14,782			66,403			54,873
Loss on the sale of operating property		-			310			-			310
Funds From Operations (FFO)	$	21,715		$	16,620		$	73,062		$	60,572
Adjustments to FFO:
Acquisition costs		556			299			1,579			1,493
Straight-line rent and other non-cash adjustments		(1,384	)		(1,402	)		(5,640	)		(2,778	)
Above-/below-market leases		(1,856	)		(2,234	)		(8,593	)		(8,517	)
Non-cash interest expense		321			312			1,197			1,096
Non-cash compensation		732			748			3,039			2,963
Funds From Operations, as Adjusted	$	20,084		$	14,343		$	64,644		$	54,829


FFO, per share - fully diluted basis	$	0.31		$	0.32		$	1.17		$	1.26
FFO, as Adjusted, per share - fully diluted basis	$	0.29		$	0.27		$	1.03		$	1.14

Funds From Operations, as Adjusted	$	20,084		$	14,343		$	64,644		$	54,829
Acquisition costs		(556	)		(299	)		(1,579	)		(1,493	)
Principal amortization		(826	)		(756	)		(3,189	)		(2,977	)
Maintenance capital expenditures		(952	)		(773	)		(3,304	)		(3,450	)
Contractual tenant improvements		(447	)		(355	)		(1,678	)		(690	)
Cash Available for Distribution (CAD)	$	17,303		$	12,160		$	54,894		$	46,219

Weighted average common shares outstanding -
fully diluted basis		69,654,783			52,362,459			62,499,743			48,009,544

⁽¹⁾Pro-forma assuming a full quarter of operations from the five properties acquired in the fourth quarter of 2018.

Debt Instrument	Maturity Date			Stated Rate⁽¹⁾	December 31, 2018 Balance⁽²⁾		December 31, 2018 Percent of Total Indebtedness
Unsecured debt
Unsecured revolving credit facility⁽³⁾	18-Jun-22⁽⁴⁾			LIBOR + 125bps	$	134,750	17.5%
2018 Unsecured term loan facility	19-Jun-23			3.91%⁽⁵⁾		150,000	19.4%
2016 Unsecured term loan facility	29-Mar-24			2.62%⁽⁶⁾		100,000	13.0%
Notes payable - series A	25-May-27			4.05%		95,000	12.3%
Notes payable - series B	25-May-29			4.15%		50,000	6.5%
Notes payable - series C	25-May-32			4.30%		30,000	3.9%
	6.0 years			3.70%	$	559,750	72.6%
Total unsecured debt	(wtd-avg maturity)			(wtd-avg rate)

Secured mortgage debt
VA - Loma Linda	6-Jul-27			3.59%	$	127,500	16.5%
ICE - Charleston	15-Jan-27			4.21%		18,637	2.4%
USFS II - Albuquerque	14-Jul-26			4.46%		16,581	2.2%
DEA - Pleasanton	18-Oct-23			LIBOR + 150bps		15,700	2.0%
CBP - Savannah	10-Jul-33			3.40%		13,495	1.8%
MEPCOM - Jacksonville	14-Oct-25			4.41%		9,891	1.3%
VA - Golden	1-Apr-24			5.00%		9,341	1.2%
	8.3 years			3.82%	$	211,145	27.4%
Total secured mortgage debt	(wtd-avg maturity)			(wtd-avg rate)


Debt Statistics	December 31, 2018
Variable rate debt - unhedged	$	150,450
Fixed rate debt		620,445
Total debt⁽²⁾	$	770,895

% Variable rate debt - unhedged		19.5	%
% Fixed rate debt		80.5	%

Weighted average maturity	6.7 years
Weighted average interest rate		3.7	%

⁽¹⁾Average stated rates represent the weighted average interest rate at December 31, 2018.

⁽³⁾Revolving credit facility has available capacity of $315.3 million as of December 31, 2018.

⁽⁴⁾Revolving credit facility has two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.

⁽⁵⁾Entered into four interest rate swaps with an effective date of December 13, 2018 with an aggregate notional value of $150.0 million to effectively fix the interest rate at 3.91% annually, based on the Company’s current leverage ratio.

⁽⁶⁾The stated 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 2.62% annually based on the Company’s current leverage ratio.

		Secured Debt						Unsecured Debt
Year		Scheduled Amortization			Scheduled Maturities			Scheduled Maturities			Total		Percentage of Debt Maturing			Weighted Average Interest Rate of Scheduled Maturities
2019			3,391		-			-				3,391		0.4	%	-
2020			3,564		-			-				3,564		0.5	%	-
2021			4,233		-			-				4,233		0.5	%	-
2022			5,297		-				134,750			140,047		18.2	%		3.72	%
2023			5,585			15,700			150,000			171,285		22.4	%		3.91	%
2024			5,730			8,395			100,000			114,125		14.8	%		2.82	%
2025			5,633			1,917		-				7,550		1.0	%		4.41	%
2026			3,686			6,368		-				10,054		1.3	%		4.46	%
2027			1,093			134,640			95,000			230,733		29.9	%		3.82	%
2028			983		-			-				983		0.1	%	-
2029			1,016		-				50,000			51,016		6.6	%		4.15	%
2030			1,049		-			-				1,049		0.1	%	-
2031			1,081		-			-				1,081		0.1	%	-
2032			1,116		-				30,000			31,116		4.0	%		4.30	%
2033			668		-			-				668		0.1	%	-
Total	$		44,125	$		167,020	$		559,750	$		770,895		100.0	%

Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Rentable Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot

U.S. Government Leased Properties
VA - Loma Linda	Loma Linda, CA	Outpatient Clinic	2036	2016		327,614	$	16,111,542		9.0	%	$	49.18
Various GSA - Buffalo	Buffalo, NY	Office	2019 - 2025	2004		267,766		8,337,971		4.6	%		31.14
FBI - Salt Lake	Salt Lake City, UT	Office	2032	2012		169,542		6,826,753		3.8	%		40.27
IRS - Fresno	Fresno, CA	Office	2033	2003		180,481		6,584,862		3.7	%		36.49
PTO - Arlington	Arlington, VA	Office	2035	2009		190,546		6,581,621		3.7	%		34.54
Various GSA - Chicago	Des Plaines, IL	Office	2020 / 2022	1971 / 1999		232,759		6,415,833		3.6	%		28.62
VA - San Jose	San Jose, CA	Outpatient Clinic	2038	2018		90,085		5,791,008		3.2	%		64.28
FBI - San Antonio	San Antonio, TX	Office	2021	2007		148,584		5,159,464		2.9	%		34.72
FEMA - Tracy	Tracy, CA	Warehouse	2038	2018		210,373		4,639,964		2.6	%		22.06
FBI - Omaha	Omaha, NE	Office	2024	2009		112,196		4,493,821		2.5	%		40.05
TREAS - Parkersburg	Parkersburg, WV	Office	2021	2004 / 2006		182,500		4,421,565		2.5	%		24.23
EPA - Kansas City	Kansas City, KS	Laboratory	2023	2003		71,979		4,203,862		2.4	%		58.40
VA - South Bend	Mishakawa, IN	Outpatient Clinic	2032	2017		86,363		3,985,310		2.2	%		46.15
ICE - Charleston	North Charleston, SC	Office	2021 / 2027	1994 / 2012		86,733		3,795,904		2.1	%		43.77
DOT - Lakewood	Lakewood, CO	Office	2024	2004		122,225		3,490,218		2.0	%		28.56
FBI - Pittsburgh	Pittsburgh, PA	Office	2027	2001		100,054		3,386,694		1.9	%		33.85
USCIS - Lincoln	Lincoln, NE	Office	2020	2005		137,671		3,369,293		1.9	%		24.47
JUD - El Centro⁽¹⁾	El Centro, CA	Courthouse/Office	2019	2004		46,813		3,117,769		1.7	%		66.60
FBI - Birmingham	Birmingham, AL	Office	2020	2005		96,278		3,089,244		1.7	%		32.09
OSHA - Sandy	Sandy, UT	Laboratory	2024	2003		75,000		2,982,868		1.7	%		39.77
USFS II - Albuquerque	Albuquerque, NM	Office	2026	2011		98,720		2,939,052		1.6	%		29.77
USFS I - Albuquerque	Albuquerque, NM	Office	2021	2006		92,455		2,810,603		1.6	%		30.40
DEA - Vista	Vista, CA	Laboratory	2020	2002		54,119		2,798,970		1.6	%		51.72
DEA - Pleasanton	Pleasanton, CA	Laboratory	2035	2015		42,480		2,785,682		1.6	%		65.58
ICE - Albuquerque	Albuquerque, NM	Office	2027	2011		71,100		2,749,463		1.5	%		38.67
FBI - Richmond	Richmond, VA	Office	2021	2001		96,607		2,740,032		1.5	%		28.36
JUD - Del Rio⁽¹⁾	Del Rio, TX	Courthouse/Office	2024	1992 / 2004		89,880		2,682,606		1.5	%		29.85
DEA - Dallas Lab	Dallas, TX	Laboratory	2021	2001		49,723		2,424,579		1.4	%		48.76
TREAS - Birmingham	Birmingham, AL	Office	2029	2014		83,676		2,364,288		1.3	%		28.26
SSA - Charleston	Charleston, WV	Office	2019	1959 / 2000		110,000		2,302,315		1.3	%		20.93
DEA - Upper Marlboro	Upper Marlboro, MD	Laboratory	2022	2002		50,978		2,286,843		1.3	%		44.86
FBI - Little Rock	Little Rock, AR	Office	2021	2001		101,977		2,226,422		1.2	%		21.83
MEPCOM - Jacksonville	Jacksonville, FL	Office	2025	2010		30,000		2,189,792		1.2	%		72.99

Property Name	Location	Property Type	Tenant Lease Expiration Year	Year Built / Renovated	Rentable Square Feet		Annualized Lease Income		Percentage of Total Annualized Lease Income			Annualized Lease Income per Leased Square Foot

U.S. Government Leased Properties (Cont.)
CBP - Savannah	Savannah, GA	Laboratory	2033	2013		35,000		2,137,168		1.2	%		61.06
FBI - Albany	Albany, NY	Office	2019	1998		98,184		2,101,795		1.2	%		21.41
DEA - Santa Ana	Santa Ana, CA	Office	2024	2004		39,905		2,090,935		1.2	%		52.40
CBP - Chula Vista	Chula Vista, CA	Office	2028	1998		59,322		2,086,349		1.2	%		35.17
DOE - Lakewood	Lakewood, CO	Office	2029	1999		115,650		2,064,224		1.2	%		17.85
JUD - Charleston⁽¹⁾	Charleston, SC	Courthouse/Office	2019	1999		50,888		1,810,980		1.0	%		35.59
NPS - Omaha	Omaha, NE	Office	2024	2004		62,772		1,763,027		1.0	%		28.09
ICE - Otay	San Diego, CA	Office	2022 / 2026	2001		52,881		1,746,592		1.0	%		35.32
VA - Golden	Golden, CO	Office/Warehouse	2026	1996 / 2011		56,753		1,731,738		1.0	%		30.51
DEA - Dallas	Dallas, TX	Office	2021	2001		71,827		1,693,601		0.9	%		23.58
CBP - Sunburst	Sunburst, MT	Office	2028	2008		33,000		1,597,097		0.9	%		48.40
USCG - Martinsburg	Martinsburg, WV	Office	2027	2007		59,547		1,590,325		0.9	%		26.71
DEA - Otay	San Diego, CA	Office	2019	1997		32,560		1,575,869		0.9	%		48.40
JUD - Aberdeen⁽¹⁾	Aberdeen, MS	Courthouse/Office	2025	2005		46,979		1,476,514		0.8	%		31.43
DEA - Birmingham	Birmingham, AL	Office	2020	2005		35,616		1,460,619		0.8	%		41.01
DEA - North Highlands	Sacramento, CA	Office	2033	2002		37,975		1,435,217		0.8	%		37.79
GSA - Clarksburg	Clarksburg, WV	Office	2024	1999		63,750		1,383,543		0.8	%		21.70
DEA - Albany	Albany, NY	Office	2025	2004		31,976		1,349,054		0.8	%		42.19
DEA - Riverside	Riverside, CA	Office	2032	1997		34,354		1,232,941		0.7	%		35.89
SSA - Dallas	Dallas, TX	Office	2020	2005		27,200		1,073,215		0.6	%		39.46
ICE - Pittsburgh	Pittsburgh, PA	Office	2022 / 2023	2004		33,425		790,210		0.4	%		31.30
VA - Baton Rouge	Baton Rouge, LA	Outpatient Clinic	2019	2004		30,000		772,128		0.4	%		25.74
JUD - South Bend⁽¹⁾	South Bend, IN	Courthouse/Office	2027	1996 / 2011		30,119		766,706		0.4	%		25.46
DEA - San Diego	San Diego, CA	Warehouse	2032	1999		16,100		557,113		0.3	%		34.60
SSA - Mission Viejo	Mission Viejo, CA	Office	2020	2005		11,590		532,074		0.3	%		45.91
DEA - Bakersfield	Bakersfield, CA	Office	2021	2000		9,800		355,728		0.2	%		36.30
SSA - San Diego	San Diego, CA	Office	2032	2003		10,856		334,810		0.2	%		33.28
Subtotal						5,095,306	$	177,595,785		99.4	%	$	35.00

Privately Leased Properties
5998 Osceola Court - United Technologies	Midland, GA	Warehouse/Manufacturing	2023	2014		105,641		545,602		0.3	%		5.16
501 East Hunter Street - Lummus Corporation	Lubbock, TX	Warehouse/Distribution	2028	2013		70,078		521,592		0.3	%		7.44
Subtotal						175,719	$	1,067,194		0.6	%	$	6.07

Total / Weighted Average						5,271,025	$	178,662,979		100.0	%	$	34.03

⁽¹⁾The Administrative Office of the U.S. Courts (“AOC”) is part of the Judiciary of the U.S. Government (“JUD”) and as such these properties have been renamed accordingly for purposes of our property naming convention.

Tenant	Weighted Average Remaining Lease Term⁽¹⁾		Leased Square Feet		Percentage of Leased Square Feet			Annualized Lease Income		Percentage of Total Annualized Lease Income

U.S. Government
Department of Veteran Affairs ("VA")		13.3		695,998		13.4	%	$	31,688,702		17.7	%
Federal Bureau of Investigation ("FBI")		5.3		926,535		17.7	%		30,091,792		16.8	%
Drug Enforcement Administration ("DEA")		6.1		507,621		9.8	%		21,942,481		12.3	%
The Judiciary of the U.S. ("JUD")		4.1		264,679		5.0	%		9,854,575		5.5	%
Internal Revenue Service ("IRS")		11.6		241,815		4.6	%		8,569,438		4.8	%
Immigration and Customs Enforcement ("ICE")		6.4		193,661		3.7	%		7,902,507		4.4	%
Bureau of the Fiscal Service ("BFS")		5.0		266,176		5.1	%		6,785,853		3.8	%
Patent and Trademark Office ("PTO")		16.0		190,546		3.6	%		6,581,621		3.7	%
Federal Aviation Administration ("FAA")		1.8		209,970		4.0	%		6,034,088		3.4	%
Customs and Border Protection ("CBP")		10.9		127,322		2.4	%		5,820,614		3.3	%
U.S. Forest Service ("USFS")		5.0		191,175		3.6	%		5,749,655		3.2	%
Social Security Administration ("SSA")		2.6		200,866		3.8	%		5,154,297		2.9	%
Federal Emergency Management Agency ("FEMA")		19.8		210,373		4.0	%		4,639,964		2.6	%
Environmental Protection Agency ("EPA")		4.2		71,979		1.4	%		4,203,862		2.4	%
Department of Transportation ("DOT")		5.3		129,659		2.5	%		3,737,685		2.1	%
U.S. Citizenship and Immigration Services ("USCIS")		1.7		137,671		2.6	%		3,369,293		1.9	%
Occupational Safety and Health Administration ("OSHA")		5.1		75,000		1.4	%		2,982,868		1.7	%
Military Entrance Processing Command ("MEPCOM")		6.7		30,000		0.6	%		2,189,792		1.2	%
Department of Energy ("DOE")		10.9		115,650		2.2	%		2,064,224		1.2	%
National Park Service ("NPS")		5.5		62,772		1.2	%		1,763,027		1.0	%
U.S. Coast Guard ("USCG")		9.0		59,547		1.1	%		1,590,325		0.9	%
Small Business Administration ("SBA")		3.3		37,253		0.7	%		1,143,245		0.6	%
National Labor Relations Board ("NLRB")		6.7		36,640		0.7	%		1,076,327		0.6	%
General Services Administration - Other		4.9		17,235		0.3	%		557,247		0.3	%
U.S. Department of Agriculture ("USDA")		2.4		12,774		0.2	%		390,254		0.2	%
Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”)		2.0		8,680		0.2	%		355,968		0.2	%
U.S. Attorney Office ("USAO")		5.1		6,408		0.1	%		139,061		0.1	%
U.S. Marshals Service ("USMS")		8.1		1,054		0.0	%		47,350		0.0	%
Department of Labor ("DOL")		5.1		1,004		0.0	%		21,786		0.0	%
U.S. Probation Office ("USPO")		5.1		452		0.0	%		9,816		0.0	%
Subtotal		7.7		5,030,515		95.9	%	$	176,457,717		98.8	%

Tenant	Weighted Average Remaining Lease Term⁽¹⁾		Leased Square Feet		Percentage of Leased Square Feet			Annualized Lease Income		Percentage of Total Annualized Lease Income


Private Tenants
We Are Sharing Hope SC		2.8		21,609		0.4	%	$	614,331		0.3	%
United Technologies (Pratt & Whitney)		5.0		105,641		2.0	%		545,602		0.3	%
Other Private Tenants		3.0		22,215		0.4	%		523,737		0.3	%
Lummus Corporation		9.6		70,078		1.3	%		521,592		0.3	%
Subtotal		6.0		219,543		4.1	%	$	2,205,262		1.2	%

Total / Weighted Average		7.6		5,250,058		100.0	%	$	178,662,979		100.0	%

Year of Lease Expiration	Number of Leases Expiring	Square Footage Expiring		Percentage of Total Square Footage Expiring			Annualized Lease Income Expiring		Percentage of Total Annualized Lease Income Expiring			Annualized Lease Income per Leased Square Foot Expiring
2019	7		380,498		7.2	%	$	11,970,144		6.7	%	$	31.46
2020	12		647,266		12.3	%		20,744,621		11.6	%		32.05
2021	12		914,486		17.4	%		26,847,227		15.0	%		29.36
2022	5		122,123		2.3	%		4,693,835		2.6	%		38.44
2023	4		198,709		3.8	%		5,390,356		3.0	%		27.13
2024	7		565,728		10.8	%		18,887,018		10.6	%		33.39
2025	4		145,595		2.8	%		6,091,687		3.4	%		41.84
2026	3		157,011		3.0	%		4,725,789		2.6	%		30.10
2027	5		325,944		6.2	%		11,674,761		6.5	%		35.82
2028	3		162,400		3.1	%		4,205,038		2.4	%		25.89
Thereafter	15		1,630,298		31.1	%		63,432,503		35.6	%		38.91
Total / Weighted Average	77		5,250,058		100.0	%	$	178,662,979		100.0	%	$	34.03

Projects Under Construction⁽¹⁾

Property Name

Location

Property Type

Total Rentable Square Feet

Percentage Leased

Lease Term

Anticipated Total Cost

Cost to Date

Anticipated Lump-Sum Reimbursement⁽²⁾

Anticipated Completion Date

Anticipated Lease Commencement

FDA - Alameda

Alameda, CA

Laboratory

69,624

100%

20-Year

82,907

54,884

52,317

3Q 2019

Total

69,624

82,907

54,884

52,317

Projects in Design⁽³⁾

Property Name

Location

Property Type

Total Estimated Rentable Square Feet

Percentage Leased

Lease Term

Anticipated Completion Date

Anticipated Lease Commencement

FDA - Lenexa

Lenexa, KS

Laboratory

59,690

100%

20-Year

2Q 2020

Total

59,690

⁽²⁾Includes reimbursement of lump-sum tenant improvement costs and development fee.

⁽³⁾Includes properties in the design phase for which project scope is not fully determined.

Corporate Information

Corporate Headquarters	Stock Exchange Listing	Information Requests	Investor Relations
2101 L Street NW	New York Stock Exchange	Please contact ir@easterlyreit.com	Lindsay Winterhalter,
Suite 650		or 202-596-3947 to request an	VP, Investor Relations
Washington, DC 20037	Ticker	Investor Relations package	& Operations
202-595-9500	DEA

Executive Team		Board of Directors
William Trimble III, CEO	Darrell Crate, Chairman	William Binnie, Lead Independent Director	Michael Ibe
Michael Ibe, Vice-Chairman and EVP	Meghan Baivier, CFO & COO	Darrell Crate	James Mead
Alison Bernard, CAO	Ronald Kendall, EVP	Cynthia Fisher	William Trimble III
		Emil Henry Jr.

Equity Research Coverage

Citigroup	Raymond James & Associates	RBC Capital Markets
Michael Bilerman / Emmanuel Korchman	Bill Crow / Paul Puryear	Michael Carroll
212-816-1383 / 212-816-1382	727-567-2594 / 727-567-2253	440-715-2649

Jefferies	SunTrust Robinson Humphrey	Boenning & Scattergood
Jonathan Petersen	Michael R. Lewis	Merrill Ross
212-284-1705	212-319-5659	610-862-5328

Overview

Corporate Information and Analyst Coverage		6

Executive Summary		7

Corporate Financials

Balance Sheets		8

Income Statements		9

Net Operating Income		10

EBITDA, FFO and CAD		11

Debt

Debt Schedules		12

Debt Maturities		13

Properties

Operating Property Overview		14

Tenants		16

Lease Expirations		18

Summary of Re/Development Projects		19


Disclaimers


Supplemental Definitions


Supplemental Definitions


Table of Contents