Easterly Government Properties Acquires 94,378 SF National Weather Service Regional Headquarters in Kansas City, MO

Rhea-AI Summary

Easterly Government Properties (NYSE: DEA) has acquired a 94,378 square foot facility in Kansas City, Missouri, leased to the National Weather Service. The facility, built in 1998 and renovated in 2020, is fully leased to the General Services Administration under a 15-year lease with renewal options extending to December 2038. This property serves as the Central Region Headquarters for the NWS and includes specialized features like a radar tower and advanced weather forecasting technology.

Positive

• Acquisition of a strategically important facility leased to a critical U.S. Government agency.
• 15-year lease with an option for a five-year renewal, ensuring long-term cash flow.
• Property houses advanced technology for weather forecasting, enhancing operational capabilities.

Negative

• None.

Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, announced today that it has acquired a 94,378 leased square foot National Weather Service (NWS) facility in Kansas City, Missouri (“NWS - Kansas City”).

NWS - Kansas City, a build-to-suit facility, was originally constructed in 1998 then substantially renovated in 2020 and is 100% leased to the General Services Administration (GSA) on behalf of the NWS pursuant to a 15-year firm term lease with a five-year fixed rate renewal option, which, if exercised, does not expire until December 2038.

NWS - Kansas City serves as the Central Region Headquarters for the NWS, one of six regional offices strategically located throughout the country. From this facility, NWS manages all operational and scientific meteorological, hydrological, and oceanographic programs for the region including observing networks, weather services, forecasting, and climatology and hydrology. This facility also helps to monitor these services and adjust resources to provide the most effective weather and warning services possible. NWS - Kansas City also houses the Aviation Weather Center, one of nine centers within the National Centers for Environmental Prediction of the NWS.

“Easterly is pleased to welcome its newest U.S. Government tenant agency to the Company’s growing portfolio,” said William C. Trimble, III, Easterly’s Chief Executive Officer. “There are few agencies that citizens depend on more than the National Weather Service. It is a mission critical agency within the Department of Commerce, and this highly specialized build-to-suit facility serves the everyday needs of both residents and businesses across sixteen states.”

With an enduring mission, NWS - Kansas City includes highly specialized features such as a radar tower, a secure satellite field and a full building generator. The facility houses some of the most advanced technology in weather forecasting and advanced computer equipment, including Doppler radar and the Automated Surface Observation System.

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 24, 2021. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210524005071/en/

FAQ

What is the significance of the acquisition of the NWS facility by DEA?

The acquisition strengthens DEA's portfolio with a critical facility leased to the National Weather Service, ensuring reliable cash flow through a long-term lease.

What are the lease terms for the Kansas City facility acquired by DEA?

The facility is leased under a 15-year firm term lease with a five-year renewal option, expiring in December 2038 if renewed.

How does the NWS facility support the National Weather Service's operations?

The facility serves as the Central Region Headquarters, managing meteorological and oceanographic programs, and houses advanced weather technology.

What is the expected impact of the Kansas City acquisition on DEA's business?

The acquisition is expected to contribute to DEA's long-term growth and stability by enhancing its portfolio with a mission-critical government asset.