EX-99.2 3 dea-ex992_7.htm EX-99.2 dea-ex992_7.htm

 Exhibit 99.2

 


Disclaimers

 

 

 

Forward-looking Statement

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; the continuing adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies and the financial condition and results of operations of the Company; 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, 2020, filed with the Securities and Exchange Commission, or the SEC, on February 24, 2021 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

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 quarter ended March 31, 2021 that will be released in our Form 10-Q to be filed with the SEC on or about May 4, 2021.

 

2


Supplemental Definitions

 

 

 

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, 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, is not indicative of operating income or cash provided by operating activities as determined under GAAP and may be presented on a pro forma basis. EBITDA is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to service or incur debt. Because all companies do not calculate EBITDA the same way, the presentation of EBITDA may not be comparable to similarly titled measures of other companies.

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, in accordance with the Nareit FFO White Paper - 2018 Restatement, as net income (loss), calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO 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, amortization of above-/below-market leases, amortization of deferred revenue (which results from landlord assets funded by tenants), non-cash interest expense, non-cash compensation, depreciation of non-real estate assets 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

3


Supplemental Definitions

 

 

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. Certain prior year amounts have been updated to conform to the current year FFO, as Adjusted definition.

Net Operating Income (NOI) and Cash NOI. NOI is calculated as net income adjusted to exclude 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, amortization of above-/below-market leases, and amortization of deferred revenue (which results from landlord assets funded by tenants). 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. Certain prior year amounts have been updated to conform to the current year Cash NOI definition.

Net Debt and Adjusted Net Debt. Net Debt represents consolidated debt (reported in accordance with GAAP) adjusted to exclude unamortized premiums and discounts and deferred financing fees, less cash and cash equivalents. By excluding these items, the result provides an estimate of the contractual amount of borrowed capital to be repaid, net of cash available to repay it. The Company believes this calculation constitutes a beneficial supplemental non-GAAP financial disclosure to investors in understanding its financial condition. Adjusted Net Debt is Net Debt reduced by 1) for each project under construction or in design, the lesser of i) outstanding lump-sum reimbursement amounts and ii) the cost to date, 2) 40% times the amount by which the cost to date exceeds total lump-sum reimbursement amounts for each project under construction or in design and 3) outstanding lump-sum reimbursement amounts for projects previously completed. These adjustments are made to 1) remove the estimated portion of each project under construction, in design or previously completed that has been financed with debt which may be repaid with outstanding cost reimbursement payments from the US Government and 2) remove the estimated portion of each project under construction or in design, in excess of total lump-sum reimbursements, that has been financed with debt but has not yet produced earnings. See page 20 for further information. The Company’s method of calculating Net Debt and Adjusted Net Debt may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

 

 

 

 

 

 

 

 

 

 

 

4


Table of Contents

 

 

 

 

 

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

 

 

 

 

 

Leased Operating Property Overview

 

14

 

 

 

Tenants

 

17

 

 

 

Lease Expirations

 

19

 

 

 

Summary of Re/Development Projects

 

20

 

 

 

 

 

5


Corporate Information and Analyst Coverage

 

 

 

 

Corporate Information

 

 

 

 

Corporate Headquarters

Stock Exchange Listing

Information Requests

Investor Relations

2001 K Street NW

New York Stock Exchange

Please contact ir@easterlyreit.com

Lindsay Winterhalter,

Suite 775 North

 

or 202-596-3947 to request an

VP, Investor Relations

Washington, DC 20006

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

Emil Henry Jr.

Michael Ibe, Vice-Chairman and EVP

Meghan Baivier, CFO & COO

Darrell Crate

Michael Ibe

Alison Bernard, CAO

Ronald Kendall, EVP

Cynthia Fisher

Tara Innes

Andrew Pulliam, EVP

 

Scott Freeman

William Trimble III

 

 

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

Truist Securities

Compass Point Research & Trading, LLC

Jonathan Petersen / Peter Abramowitz

Michael R. Lewis

Merrill Ross

212-284-1705 / 212-336-7241

212-319-5659

202-534-1392

 

 

 

BMO Capital Markets

 

 

John P. Kim

 

 

212-885-4115

 

 

 

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.

 

 

6


Executive Summary

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding Classes of Stock and Partnership Units - Fully Diluted Basis

 

At March 31, 2021

 

 

Earnings

 

 

Three months ended

March 31, 2021

 

 

Three months ended

March 31, 2020

 

Common shares

 

 

83,783,325

 

 

Net income available to Easterly Government Properties, Inc.

 

$

6,991

 

 

$

1,697

 

Unvested restricted shares

 

 

73,628

 

 

Net income available to Easterly Government Properties, Inc.

 

 

 

 

 

 

 

 

Common partnership and vested LTIP units

 

 

10,347,239

 

 

per share:

 

 

 

 

 

 

 

 

 

Total - fully diluted basis

 

 

94,204,192

 

 

Basic

 

 

$

0.08

 

 

$

0.02

 

 

 

 

 

 

 

Diluted

 

 

$

0.08

 

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market Capitalization

 

At March 31, 2021

 

 

Net income

 

 

$

7,880

 

 

$

1,918

 

Price of Common Shares

 

$

20.73

 

 

Net income, per share - fully diluted basis

 

 

$

0.09

 

 

$

0.02

 

Total equity market capitalization - fully diluted basis

 

$

1,952,853

 

 

Funds From Operations (FFO)

 

 

$

30,198

 

 

$

25,474

 

Net Debt

 

 

1,005,928

 

 

FFO, per share - fully diluted basis

 

 

$

0.33

 

 

$

0.30

 

Total enterprise value

 

$

2,958,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, as Adjusted

 

 

$

28,269

 

 

$

24,443

 

 

 

 

 

 

 

FFO, as Adjusted, per share - fully diluted basis

 

 

$

0.31

 

 

$

0.29

 

Ratios

 

At March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Net debt to total enterprise value

 

 

34.0

%

 

Cash Available for Distribution (CAD)

 

 

$

24,430

 

 

$

21,833

 

Net debt to annualized quarterly EBITDA

 

 

6.4

x

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Debt to annualized quarterly pro

 

 

 

 

 

Liquidity

 

 

 

 

 

 

At March 31, 2021

 

forma EBITDA

 

 

6.2

x

 

Cash and cash equivalents

 

 

 

 

 

 

$

6,323

 

Cash interest coverage ratio

 

 

4.5

x

 

 

 

 

 

 

 

 

 

 

 

Cash fixed charge coverage ratio

 

 

4.1

x

 

Available under $450 million unsecured revolving credit facility(1)

 

 

$

341,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)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.

 

7


Balance Sheets

(Unaudited, in thousands, except share amounts)

 

 

 

 

 

 

March 31, 2021

 

 

December 31, 2020

 

Assets

 

 

 

 

 

 

 

 

Real estate properties, net

 

$

2,255,241

 

 

$

2,208,661

 

Cash and cash equivalents

 

 

6,323

 

 

 

8,465

 

Restricted cash

 

 

6,816

 

 

 

6,204

 

Tenant accounts receivable

 

 

45,746

 

 

 

45,077

 

Intangible assets, net

 

 

162,351

 

 

 

163,387

 

Prepaid expenses and other assets

 

 

31,126

 

 

 

25,746

 

Total assets

 

$

2,507,603

 

 

$

2,457,540

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Revolving credit facility

 

 

109,000

 

 

 

79,250

 

Term loan facilities, net

 

 

249,057

 

 

 

248,966

 

Notes payable, net

 

 

447,234

 

 

 

447,171

 

Mortgage notes payable, net

 

 

201,963

 

 

 

202,871

 

Intangible liabilities, net

 

 

23,738

 

 

 

25,406

 

Deferred revenue

 

 

92,118

 

 

 

92,576

 

Interest rate swaps

 

 

10,943

 

 

 

12,781

 

Accounts payable, accrued expenses, and other liabilities

 

 

46,756

 

 

 

48,549

 

Total liabilities

 

 

1,180,809

 

 

 

1,157,570

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

83,856,953 and 82,106,256 shares issued and outstanding at

March 31, 2021 and December 31, 2020, respectively.

 

 

839

 

 

 

821

 

Additional paid-in capital

 

 

1,464,014

 

 

 

1,424,787

 

Retained earnings

 

 

38,956

 

 

 

31,965

 

Cumulative dividends

 

 

(313,007

)

 

 

(291,652

)

Accumulated other comprehensive loss

 

 

(9,741

)

 

 

(11,351

)

Total stockholders' equity

 

 

1,181,061

 

 

 

1,154,570

 

Non-controlling interest in Operating Partnership

 

 

145,733

 

 

 

145,400

 

Total equity

 

 

1,326,794

 

 

 

1,299,970

 

Total liabilities and equity

 

$

2,507,603

 

 

$

2,457,540

 

 

 

 

 

8


Income Statements

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

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

Revenues

 

 

 

 

 

 

 

 

 

Rental income

 

$

64,179

 

 

$

56,583

 

 

Tenant reimbursements

 

 

320

 

 

 

1,152

 

 

Other income

 

 

502

 

 

 

483

 

 

Total revenues

 

 

65,001

 

 

 

58,218

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Property operating

 

 

12,094

 

 

 

11,258

 

 

Real estate taxes

 

 

7,286

 

 

 

6,562

 

 

Depreciation and amortization

 

 

22,325

 

 

 

23,556

 

 

Acquisition costs

 

 

487

 

 

 

538

 

 

Corporate general and administrative

 

 

5,808

 

 

 

5,483

 

 

Total expenses

 

 

48,000

 

 

 

47,397

 

 

 

 

 

 

 

 

 

 

 

 

Other expense

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(9,121

)

 

 

(8,903

)

 

Net income

 

 

7,880

 

 

 

1,918

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlling interest in Operating Partnership

 

 

(889

)

 

 

(221

)

 

Net income available to Easterly Government

 

 

 

 

 

 

 

 

 

Properties, Inc.

 

$

6,991

 

 

$

1,697

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to Easterly Government

 

 

 

 

 

 

 

 

 

Properties, Inc. per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

 

$

0.02

 

 

Diluted

 

$

0.08

 

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

82,120,353

 

 

 

74,892,711

 

 

Diluted

 

 

82,596,597

 

 

 

75,616,233

 

 

 

 

 

 

 

 

 

 

 

 

Net income, per share - fully diluted basis

 

$

0.09

 

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding -

 

 

 

 

 

 

 

 

 

fully diluted basis

 

 

92,649,090

 

 

 

84,735,095

 

 

 

9


Net Operating Income

(Unaudited, in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

7,880

 

 

$

1,918

 

 

 

Depreciation and amortization

 

 

22,325

 

 

 

23,556

 

 

 

Acquisition costs

 

 

487

 

 

 

538

 

 

 

Corporate general and administrative

 

 

5,808

 

 

 

5,483

 

 

 

Interest expense

 

 

9,121

 

 

 

8,903

 

 

 

Net Operating Income

 

 

45,621

 

 

 

40,398

 

 

 

Adjustments to Net Operating Income:

 

 

 

 

 

 

 

 

 

 

Straight-line rent and other non-cash adjustments

 

 

(1,393

)

 

 

(698

)

 

 

Amortization of above-/below-market leases

 

 

(1,286

)

 

 

(1,521

)

 

 

Amortization of deferred revenue

 

 

(1,421

)

 

 

(697

)

 

 

Cash Net Operating Income

 

$

41,521

 

 

$

37,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10


EBITDA, FFO and CAD

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

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

Net income

 

$

7,880

 

 

$

1,918

 

 

Depreciation and amortization

 

 

22,325

 

 

 

23,556

 

 

Interest expense

 

 

9,121

 

 

 

8,903

 

 

Tax expense

 

 

134

 

 

 

89

 

 

EBITDA

 

$

39,460

 

 

$

34,466

 

 

 

 

 

 

 

 

 

 

 

 

Pro forma adjustments(1)

 

 

897

 

 

 

595

 

 

Pro forma EBITDA

 

$

40,357

 

 

$

35,061

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

7,880

 

 

$

1,918

 

 

Depreciation of real estate assets

 

 

22,318

 

 

 

23,556

 

 

FFO

 

$

30,198

 

 

$

25,474

 

 

Adjustments to FFO:

 

 

 

 

 

 

 

 

 

Acquisition costs

 

 

487

 

 

 

538

 

 

Straight-line rent and other non-cash adjustments

 

 

(1,413

)

 

 

(709

)

 

Amortization of above-/below-market leases

 

 

(1,286

)

 

 

(1,521

)

 

Amortization of deferred revenue

 

 

(1,421

)

 

 

(697

)

 

Non-cash interest expense

 

 

363

 

 

 

358

 

 

Non-cash compensation

 

 

1,334

 

 

 

1,000

 

 

Depreciation of non-real estate assets

 

 

7

 

 

 

-

 

 

FFO, as Adjusted

 

$

28,269

 

 

$

24,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, per share - fully diluted basis

 

$

0.33

 

 

$

0.30

 

 

FFO, as Adjusted, per share - fully diluted basis

 

$

0.31

 

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

 

FFO, as Adjusted

 

$

28,269

 

 

$

24,443

 

 

Acquisition costs

 

 

(487

)

 

 

(538

)

 

Principal amortization

 

 

(940

)

 

 

(870

)

 

Maintenance capital expenditures

 

 

(1,250

)

 

 

(877

)

 

Contractual tenant improvements

 

 

(1,162

)

 

 

(325

)

 

Cash Available for Distribution (CAD)

 

$

24,430

 

 

$

21,833

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding -

 

 

 

 

 

 

 

 

 

fully diluted basis

 

 

92,649,090

 

 

 

84,735,095

 

 

 

(1)Pro forma assuming a full quarter of operations from the three properties acquired in the first quarter of 2021.

 

11


Debt Schedules

(Unaudited, in thousands)

 

 

 

 

Debt Instrument

Maturity Date

 

 

March 31, 2021

Interest Rate

 

March 31, 2021

Balance(1)

 

March 31, 2021

Percent of

Total Indebtedness

 

Unsecured debt

 

 

 

 

 

 

 

 

 

 

 

 

 

Revolving Credit facility

18-Jun-22(2)

 

 

LIBOR + 130bps

 

$

109,000

 

10.8%

 

2016 Term Loan facility

29-Mar-24

 

 

2.67%(3)

 

 

100,000

 

9.9%

 

2018 Term Loan facility

19-Jun-23

 

 

3.96%(4)

 

 

150,000

 

14.7%

 

2017 Series A Senior Notes

25-May-27

 

 

4.05%

 

 

95,000

 

9.4%

 

2017 Series B Senior Notes

25-May-29

 

 

4.15%

 

 

50,000

 

4.9%

 

2017 Series C Senior Notes

25-May-32

 

 

4.30%

 

 

30,000

 

2.9%

 

2019 Series A Senior Notes

12-Sep-29

 

 

3.73%

 

 

85,000

 

8.4%

 

2019 Series B Senior Notes

12-Sep-31

 

 

3.83%

 

 

100,000

 

9.9%

 

2019 Series C Senior Notes

12-Sep-34

 

 

3.98%

 

 

90,000

 

8.8%

 

Total unsecured debt

6.3 years

 

 

3.45%

 

$

809,000

 

79.7%

 

 

(wtd-avg maturity)

 

 

(wtd-avg rate)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secured mortgage debt

 

 

 

 

 

 

 

 

 

 

 

 

 

DEA - Pleasanton

18-Oct-23

 

 

LIBOR + 150bps

 

$

15,700

 

1.6%

 

VA - Golden

1-Apr-24

 

 

5.00%

 

 

8,965

 

0.9%

 

MEPCOM - Jacksonville

14-Oct-25

 

 

4.41%

 

 

7,640

 

0.8%

 

USFS II - Albuquerque

14-Jul-26

 

 

4.46%

 

 

15,826

 

1.6%

 

ICE - Charleston

15-Jan-27

 

 

4.21%

 

 

15,824

 

1.6%

 

VA - Loma Linda

6-Jul-27

 

 

3.59%

 

 

127,500

 

12.6%

 

CBP - Savannah

10-Jul-33

 

 

3.40%

 

 

11,796

 

1.2%

 

Total secured mortgage debt

6 years

 

 

3.64%

 

$

203,251

 

20.3%

 

 

(wtd-avg maturity)

 

 

(wtd-avg rate)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Statistics

March 31, 2021

 

 

 

 

 

 

 

 

March 31, 2021

 

Variable rate debt - unhedged

$

124,700

 

 

% Variable rate debt - unhedged

 

 

12.3

%

Fixed rate debt

 

887,551

 

 

% Fixed rate debt

 

 

87.7

%

Total Debt(1)

$

1,012,251

 

 

 

 

 

 

 

 

 

 

 

Less: cash and cash equivalents

 

(6,323

)

 

Weighted average maturity

 

6.2 years

 

Net Debt

$

1,005,928

 

 

Weighted average interest rate

 

 

3.5

%

Less: adjustment for development projects(5)

 

(11,417

)

 

 

 

 

 

 

 

 

 

 

Adjusted Net Debt

$

994,511

 

 

 

 

 

 

 

 

 

 

 

 

(1)Excludes unamortized premiums / discounts and deferred financing fees.

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

(3)Calculated based on two interest rate swaps with an aggregate notional value of $100.0 million, which effectively fix the interest rate at 2.67% annually based on the Company’s current leverage ratio.

(4)Calculated based on four interest rate swaps with an aggregate notional value of $150.0 million, which effectively fix the interest rate at 3.96% annually based on the Company’s current leverage ratio.

(5)See definition of Adjusted Net Debt on Page 4.

12


Debt Maturities

(Unaudited, in thousands)

 

 

 

 

 

 

Secured Debt

 

 

Unsecured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

Year

 

Scheduled

Amortization

 

 

Scheduled

Maturities

 

 

Scheduled

Maturities

 

 

Total

 

 

Percentage of

Debt Maturing

 

 

Weighted Average

Interest Rate of

Scheduled Maturities

 

2021

 

 

3,292

 

 

 

-

 

 

 

-

 

 

 

3,292

 

 

 

0.3

%

 

-

 

2022

 

 

5,297

 

 

 

-

 

 

 

109,000

 

 

 

114,297

 

 

 

11.3

%

 

 

1.41

%

2023

 

 

5,586

 

 

 

15,700

 

 

 

150,000

 

 

 

171,286

 

 

 

16.9

%

 

 

3.74

%

2024

 

 

5,731

 

 

 

8,395

 

 

 

100,000

 

 

 

114,126

 

 

 

11.3

%

 

 

2.86

%

2025

 

 

5,633

 

 

 

1,917

 

 

 

-

 

 

 

7,550

 

 

 

0.7

%

 

 

4.41

%

2026

 

 

3,686

 

 

 

6,368

 

 

 

-

 

 

 

10,054

 

 

 

1.0

%

 

 

4.46

%

2027

 

 

1,093

 

 

 

134,640

 

 

 

95,000

 

 

 

230,733

 

 

 

22.8

%

 

 

3.81

%

2028

 

 

983

 

 

 

-

 

 

 

-

 

 

 

983

 

 

 

0.1

%

 

-

 

2029

 

 

1,016

 

 

 

-

 

 

 

135,000

 

 

 

136,016

 

 

 

13.4

%

 

 

3.89

%

2030

 

 

1,049

 

 

 

-

 

 

 

-

 

 

 

1,049

 

 

 

0.1

%

 

-

 

2031

 

 

1,081

 

 

 

-

 

 

 

100,000

 

 

 

101,081

 

 

 

10.0

%

 

 

3.83

%

2032

 

 

1,116

 

 

 

-

 

 

 

30,000

 

 

 

31,116

 

 

 

3.1

%

 

 

4.30

%

2033

 

 

668

 

 

 

-

 

 

 

-

 

 

 

668

 

 

 

0.1

%

 

-

 

2034

 

 

-

 

 

 

-

 

 

 

90,000

 

 

 

90,000

 

 

 

8.9

%

 

 

3.98

%

Total

 

$

36,231

 

 

$

167,020

 

 

$

809,000

 

 

$

1,012,251

 

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

13


Leased Operating Property Overview

(As of March 31, 2021, unaudited)

 

 

 

 

Property Name

 

Location

 

Property Type

 

Tenant

Lease

Expiration

Year

 

Year Built /

Renovated

 

Leased

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

 

 

$

16,388,079

 

 

 

6.4

%

 

$

50.02

 

Various GSA - Buffalo

 

Buffalo, NY

 

Office

 

2021 - 2025(1)

 

2004

 

 

266,668

 

 

 

8,544,043

 

 

 

3.3

%

 

 

32.04