Easterly Government Properties Completes Acquisition of VA - Phoenix, the Eighth of 10 Properties in the VA Portfolio

Rhea-AI Summary

Easterly Government Properties, Inc. (NYSE: DEA) announced the acquisition of a 257,294 square foot outpatient facility in Phoenix, Arizona, leased to the Department of Veterans Affairs. This acquisition marks the completion of its largest asset in the previously announced VA Portfolio, fulfilling a $145 million pro rata joint venture acquisition target for 2022. To date, Easterly has acquired seven properties worth approximately $252.2 million, which includes $107.7 million in wholly owned and $144.5 million in joint venture acquisitions, contributing to a total of 87 properties spanning 8.9 million square feet.

Positive

• Completion of acquisition of VA - Phoenix, the largest asset in the VA Portfolio.
• Fulfillment of $145 million joint venture acquisition target for 2022.
• Successful acquisition of seven properties year-to-date for approximately $252.2 million.

Negative

• None.

WASHINGTON--(BUSINESS WIRE)-- Easterly Government Properties, Inc. (NYSE: DEA), 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, through its joint venture (“JV”), completed the acquisition of the previously announced 257,294 leased square foot outpatient facility leased to the Department of Veterans Affairs (VA) located in Phoenix, Arizona (“VA - Phoenix”). VA - Phoenix is the eighth property to be acquired in the previously announced portfolio of 10 properties 100% leased to the VA under predominately 20-year firm term leases (the “VA Portfolio”).

“Easterly, through its JV, has now completed the acquisition of the VA Portfolio’s largest asset, VA - Phoenix,” said William C. Trimble, III, Easterly’s Chief Executive Officer. “With this acquisition, Easterly has finalized its stated $145 million pro rata JV acquisition target for 2022, and we look forward to the future closings of the final two assets in the VA Portfolio.”

The VA Portfolio is comprised of the following 10 properties, arranged by anticipated lease commencement date:

Property Name			State			Leased SF			Leased			Lease Term (Yrs)			Status
VA - Chattanooga			TN			94,566			100%			15.0			Delivered (Nov. 2020) / Acquired (Nov. 2021)
VA - Lubbock			TX			120,916			100%			20.0			Delivered (Dec. 2020) / Acquired (Oct. 2021)
VA - Lenexa			KS			31,062			100%			20.0			Delivered (May 2021) / Acquired (Oct. 2021)
VA - San Antonio			TX			226,148			100%			20.0			Delivered (Aug. 2021) / Acquired (Dec. 2021)
VA - Birmingham			AL			77,128			100%			20.0			Delivered (Nov. 2021) / Acquired (Apr. 2022)
VA - Marietta			GA			76,882			100%			20.0			Delivered (Dec. 2021) / Acquired (May 2022)
VA - Columbus			GA			67,793			100%			20.0			Delivered (Jan. 2022) / Acquired (July 2022)
VA - Phoenix			AZ			257,294			100%			20.0			Delivered (Feb. 2022) / Acquired (Nov. 2022)
VA - Corpus Christi			TX			69,276			100%			20.0			Development / Future Acquisition
VA - Jacksonville			FL			193,100			100%			20.0			Development / Future Acquisition
Totals						1,214,165			100%			19.6(1)
(1) Weighted average by leased square foot.

Year to date, Easterly has acquired, either directly or through the JV, seven properties for an aggregate pro rata contractual purchase price of approximately $252.2 million, comprised of (i) $107.7 million of wholly owned acquisitions; and (ii) $144.5 million of pro rata acquisitions through the Company’s JV. As of the date of this release, Easterly owns, directly or through the JV, 87 properties totaling 8.9 million square feet.

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 to such agencies either directly or 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 28, 2022 and our Quarterly Report on Form 10-Q on November 1, 2022. 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/20221128005020/en/

Easterly Government Properties, Inc.

Lindsay S. Winterhalter

Supervisory Vice President, Investor Relations & Operations

202-596-3947

ir@easterlyreit.com

Source: Easterly Government Properties, Inc.

FAQ

What is the significance of the acquisition of VA - Phoenix by Easterly Government Properties?

The acquisition of VA - Phoenix is significant as it is the largest asset in Easterly's VA Portfolio, representing a strategic investment in properties leased to the Department of Veterans Affairs.

How much did Easterly Government Properties spend on acquisitions in 2022?

Easterly Government Properties has spent approximately $252.2 million on acquisitions in 2022.

What is the total leased area of the properties owned by Easterly Government Properties?

As of the latest announcement, Easterly owns 87 properties totaling 8.9 million square feet.

What are the future plans for Easterly Government Properties regarding the VA Portfolio?

Easterly plans to close on the final two assets in the VA Portfolio, further enhancing its investment in government-leased properties.