Easterly Government Properties Reports Second Quarter 2024 Results
Easterly Government Properties (NYSE: DEA) reported its Q2 2024 results:
Key highlights include:
- Net income of $4.9 million ($0.04 per share)
- Core FFO of $31.4 million ($0.29 per share)
- An $8.4 million mortgage note extinguishment
- A new $400 million senior unsecured revolving credit facility with a total capacity up to $700 million
- Acquisition of properties leased to U.S. government agencies, including a Federal courthouse in Flagstaff, AZ, and facilities in Dallas and Orlando
For the first six months of 2024:
- Net income of $9.7 million ($0.09 per share)
- Core FFO of $62.1 million ($0.58 per share)
- Debt of approximately $1.4 billion with a weighted average interest rate of 4.4%
The company increased its full-year 2024 Core FFO guidance to $1.15 - $1.17 per share. A cash dividend of $0.265 per share will be paid on August 13, 2024.
Easterly Government Properties (NYSE: DEA) ha riportato i risultati del secondo trimestre del 2024:
Le principali evidenze includono:
- Utile netto di 4,9 milioni di dollari (0,04 dollari per azione)
- Core FFO di 31,4 milioni di dollari (0,29 dollari per azione)
- Un'estinzione di nota ipotecaria di 8,4 milioni di dollari
- Una nuova linea di credito revolving senior non garantita di 400 milioni di dollari con una capacità totale fino a 700 milioni di dollari
- Acquisizione di immobili affittati a agenzie governative degli Stati Uniti, incluso un tribunale federale a Flagstaff, AZ, e strutture a Dallas e Orlando
Per i primi sei mesi del 2024:
- Utile netto di 9,7 milioni di dollari (0,09 dollari per azione)
- Core FFO di 62,1 milioni di dollari (0,58 dollari per azione)
- Debito di circa 1,4 miliardi di dollari con un tasso d'interesse medio ponderato del 4,4%
L'azienda ha aumentato la sua guida sul Core FFO per l'intero anno 2024 a 1,15 - 1,17 dollari per azione. Un dividendo in contante di 0,265 dollari per azione sarà pagato il 13 agosto 2024.
Easterly Government Properties (NYSE: DEA) informó sobre los resultados del segundo trimestre de 2024:
Los aspectos más destacados incluyen:
- Ingreso neto de 4,9 millones de dólares (0,04 dólares por acción)
- Core FFO de 31,4 millones de dólares (0,29 dólares por acción)
- Una extinción de nota hipotecaria de 8,4 millones de dólares
- Una nueva línea de crédito revolving senior no garantizada de 400 millones de dólares con una capacidad total de hasta 700 millones de dólares
- Adquisición de propiedades arrendadas a agencias gubernamentales de EE. UU., incluyendo un tribunal federal en Flagstaff, AZ, y instalaciones en Dallas y Orlando
Para los primeros seis meses de 2024:
- Ingreso neto de 9,7 millones de dólares (0,09 dólares por acción)
- Core FFO de 62,1 millones de dólares (0,58 dólares por acción)
- Deuda de aproximadamente 1,4 mil millones de dólares con una tasa de interés promedio ponderada del 4,4%
La compañía aumentó su guía de Core FFO para todo el año 2024 a 1,15 - 1,17 dólares por acción. Se pagará un dividendo en efectivo de 0,265 dólares por acción el 13 de agosto de 2024.
Easterly Government Properties (NYSE: DEA)는 2024년 2분기 실적을 보고했습니다:
주요 내용은 다음과 같습니다:
- 순이익 490만 달러 (주당 0.04 달러)
- Core FFO 3140만 달러 (주당 0.29 달러)
- 840만 달러의 모기지 노트 소멸
- 최대 7억 달러까지의 총 용량을 가진 4억 달러의 새로운 고위험 무담보 회전 신용 시설
- 연방 법원 및 댈러스와 올랜도의 시설을 포함하여 미국 정부 기관에 임대된 부동산 인수
2024년 첫 6개월 동안:
- 순이익 970만 달러 (주당 0.09 달러)
- Core FFO 6210만 달러 (주당 0.58 달러)
- 약 14억 달러의 부채와 4.4%의 가중 평균 이자율
회사는 2024년 전체 연도 Core FFO 전망을 1.15 - 1.17 달러로 상향 조정했습니다. 2024년 8월 13일에 주당 0.265 달러의 현금 배당금이 지급될 예정입니다.
Easterly Government Properties (NYSE: DEA) a publié ses résultats du deuxième trimestre 2024 :
Les points clés incluent :
- Revenu net de 4,9 millions de dollars (0,04 dollar par action)
- Core FFO de 31,4 millions de dollars (0,29 dollar par action)
- Une annulation de note hypothécaire de 8,4 millions de dollars
- Une nouvelle facilité de crédit revolving senior non sécurisée de 400 millions de dollars avec une capacité totale pouvant atteindre 700 millions de dollars
- Acquisition de propriétés louées à des agences gouvernementales américaines, y compris un tribunal fédéral à Flagstaff, AZ, et des installations à Dallas et Orlando
Pour les six premiers mois de 2024 :
- Revenu net de 9,7 millions de dollars (0,09 dollar par action)
- Core FFO de 62,1 millions de dollars (0,58 dollar par action)
- Dette d'environ 1,4 milliard de dollars avec un taux d'intérêt moyen pondéré de 4,4%
La société a relevé ses prévisions de Core FFO pour l'ensemble de l'année 2024 à 1,15 - 1,17 dollars par action. Un dividende en espèces de 0,265 dollars par action sera versé le 13 août 2024.
Easterly Government Properties (NYSE: DEA) hat die Ergebnisse des zweiten Quartals 2024 veröffentlicht:
Wichtige Highlights umfassen:
- Nettogewinn von 4,9 Millionen Dollar (0,04 Dollar pro Aktie)
- Core FFO von 31,4 Millionen Dollar (0,29 Dollar pro Aktie)
- Eine 8,4 Millionen Dollar Hypothekenschuldentilgung
- Eine neue 400 Millionen Dollar Senior-Unsecured Revolving-Kreditlinie mit einer Gesamtkapazität von bis zu 700 Millionen Dollar
- Erwerb von Immobilien, die an US-Regierungsbehörden vermietet sind, einschließlich eines Bundesgerichts in Flagstaff, AZ, sowie Einrichtungen in Dallas und Orlando
Für die ersten sechs Monate des Jahres 2024:
- Nettogewinn von 9,7 Millionen Dollar (0,09 Dollar pro Aktie)
- Core FFO von 62,1 Millionen Dollar (0,58 Dollar pro Aktie)
- Verschuldung von etwa 1,4 Milliarden Dollar mit einem gewichteten Durchschnittszinssatz von 4,4%
Das Unternehmen hat seine Prognose für den Core FFO für das gesamte Jahr 2024 auf 1,15 - 1,17 Dollar pro Aktie angehoben. Eine Bardividende von 0,265 Dollar pro Aktie wird am 13. August 2024 ausgezahlt.
- Net income of $4.9 million for Q2 2024
- Core FFO of $31.4 million for Q2 2024
- Acquisition of properties with long-term government leases
- New $400 million senior unsecured revolving credit facility
- Full-year 2024 Core FFO guidance increased to $1.15 - $1.17 per share
- Company's outstanding debt of approximately $1.4 billion
- Net Debt to total enterprise value ratio of 50.9%
- Adjusted Net Debt to annualized quarterly pro forma EBITDA ratio of 6.9x
Insights
Easterly Government Properties' Q2 2024 results demonstrate a stable financial performance with some notable improvements. The company reported
The company's strategic moves are particularly noteworthy:
- Execution of a new
$400 million revolving credit facility with an accordion feature potentially increasing it to$700 million - Issuance of
$200 million in senior unsecured notes at6.56% interest rate - Acquisition of multiple properties, expanding their portfolio of government-leased assets
These actions strengthen Easterly's financial position and set the stage for future growth. The increased guidance for full-year 2024 Core FFO to
However, investors should note the increase in total indebtedness to
Overall, Easterly's focus on government-leased properties provides a stable income stream, which is particularly valuable in uncertain economic times. The long weighted average remaining lease term of 10.1 years further underpins this stability.
Easterly's Q2 2024 results highlight its strong position in the niche market of government-leased properties. The company's portfolio now encompasses 93 operating properties with approximately 9.1 million leased square feet, primarily leased to U.S. Government agencies. This focus provides a unique value proposition in the REIT sector.
Key developments include:
- Acquisition of ICE - Dallas, a 135,200 sq ft facility with a 13.3-year weighted average remaining lease term
- Acquisition of HSI - Orlando, a 27,840 sq ft facility with a 15-year lease
- Acquisition of ICE - Orlando, a 49,420 sq ft facility with a 20-year lease
- Land acquisition for JUD - Flagstaff, a future 50,777 sq ft Federal courthouse with a 20-year lease
These acquisitions demonstrate Easterly's commitment to expanding its portfolio with long-term, government-leased properties. The weighted average remaining lease term of 10.1 years for the entire portfolio provides excellent visibility into future cash flows.
The company's ESG initiatives, including a
However, the weighted average age of the portfolio at 14.8 years suggests potential for increased maintenance costs in the future. Investors should monitor capital expenditure trends in coming quarters.
Overall, Easterly's strategic focus and recent acquisitions position it well in the government-leased property market, offering stability and growth potential in an uncertain economic environment.
Highlights for the Quarter Ended June 30, 2024:
-
Net income of
$4.9 million $0.04 -
Core FFO of
$31.4 million $0.29 -
Used
$8.4 million -
Executed a new
$400.0 million $300.0 million $700.0 million -
Entered into a master note purchase agreement to issue an aggregate
$200.0 million 6.56% (ICUR9 + 210 basis point spread) 9-year fixed rate, senior unsecured notes in two tranches and issued$150.0 million -
Acquired the land for the future development of a 50,777 rentable square foot Federal courthouse in
Flagstaff, Arizona (“JUD - Flagstaff”) with a 20-year non-cancelable lease that will commence once the development is complete -
Acquired a 135,200 square foot facility primarily leased to the Office of the Chief Information Officer (OCIO) and Office of Human Capital of the
U.S. Immigration and Customs Enforcement (ICE), located nearDallas, Texas (“ICE - Dallas”) with a weighted average remaining lease term of 13.3 years at the time of acquisition -
Acquired a 27,840 square foot facility
100% leased to Homeland Security Investigations (HSI), the principal investigation arm within the Department of Homeland Security (DHS), with a 15-year lease that does not expire until March 2036 (“HSI - Orlando”) -
Acquired a 49,420 square foot facility in
Orlando, Florida that is100% leased to ICE with a 20-year lease that does not expire until August 2040 (“ICE - Orlando”) - Released the Company's 2023 Environmental, Social, and Governance report (the “ESG Report”), showcasing the Company’s progress in achieving its environmental and social-focused goals committed to in 2021
-
Issued an aggregate of 589,647 shares of the Company's common stock in settlement of previously entered into forward sales transactions through the Company's
$300.0 million $13.40 $7.9 million -
Increased the Company's guidance for full-year 2024 Core FFO per share on a fully diluted basis to a range of
$1.15 $1.17
“We occupy a unique place in the REIT industry,” said Darrell Crate, CEO of Easterly Government Properties. “The real estate we provide is essential to the
Financial Results for the Six Months Ended June 30, 2024:
Net income of
Core FFO of
Portfolio Operations
As of June 30, 2024, the Company or its joint venture (the “JV”) owned 93 operating properties in
On April 22, 2024, the Company announced the release of its 2023 ESG Report, showcasing the Company’s progress in achieving its environmental and social-focused goals committed to in 2021. Easterly oversaw a
Balance Sheet and Capital Markets Activity
As of June 30, 2024, the Company had total indebtedness of approximately
On April 1, 2024, the Company used
On May 30, 2024, the Company announced it had entered into a master note purchase agreement to issue an aggregate
On June 3, 2024, the Company executed a new
Acquisitions
On April 4, 2024, the Company acquired the land to develop JUD -
On April 16, 2024, the Company announced the acquisition of ICE -
On May 8, 2024, the Company announced the acquisition of HSI -
On May 15, 2024, the Company announced the acquisition of ICE -
Dividend
On July 17, 2024, the Board of Directors of Easterly approved a cash dividend for the second quarter of 2024 in the amount of
Subsequent Events
Subsequent to the quarter ending June 30, 2024, the Company entered into forward sales transactions through the December 2019 ATM Program for the sale of 400,000 shares of the Company's common stock at a net weighted average initial forward sales price of
As of the date of this release, the Company expects to receive aggregate net proceeds of approximately
Guidance
This guidance is forward-looking and reflects management’s view of current and future market conditions. The Company’s actual results may differ materially from this guidance.
Outlook for the 12 Months Ending December 31, 2024
The Company is maintaining its guidance for full-year 2024 Core FFO per share on a fully diluted basis at a range of
|
|
Low |
|
High |
||||
Net income (loss) per share – fully diluted basis |
|
$ |
0.22 |
|
|
0.24 |
||
Plus: Company’s share of real estate depreciation and amortization |
|
$ |
0.92 |
|
|
|
0.92 |
|
FFO per share – fully diluted basis |
|
$ |
1.14 |
|
|
|
1.16 |
|
Plus: Company’s share of depreciation of non-real estate assets |
|
$ |
0.01 |
|
|
|
0.01 |
|
Core FFO per share – fully diluted basis |
|
$ |
1.15 |
|
|
|
1.17 |
|
This guidance assumes (i) the closing of VA -
Non-GAAP Supplemental Financial Measures
This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this press release 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. A reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in this press release following the consolidated financial statements. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the Securities and Exchange Commission from time to time. We present certain financial information and metrics “at Easterly’s Share,” which is calculated on an entity-by-entity basis. “At Easterly’s Share” information, which we also refer to as being “at share,” “pro rata,” or “our share” is not, and is not intended to be, a presentation in accordance with GAAP.
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, nonrecurring expenditures and the unconsolidated real estate venture’s allocated share of these adjustments. 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.
Core Funds from Operations (Core FFO) adjusts FFO to present an alternative measure of the Company's operating performance, which, when applicable, excludes items which it believes are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), catastrophic event charges, depreciation of non-real estate assets, provision for credit losses, and the unconsolidated real estate venture's allocated share of these adjustments. In future periods, the Company may also exclude other items from Core FFO that it believes may help investors compare its results. The Company believes Core FFO more accurately reflects the ongoing operational and financial performance of the Company's core business.
EBITDA is calculated as the sum of net income (loss) before interest expense, taxes, depreciation and amortization, (gain) loss on the sale of operating properties, impairment loss, and the unconsolidated real estate venture’s allocated share of these adjustments. 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.
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 includes the Company’s share of FFO generated by unconsolidated affiliates. 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.
Net Debt and Adjusted Net Debt. Net Debt represents the Company's consolidated debt and its share of unconsolidated debt adjusted to exclude its share of unamortized premiums and discounts and deferred financing fees, less its share of cash and cash equivalents and property acquisition closing escrow, net of deposit. 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)
Other Definitions
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.
Conference Call Information
The Company will host a webcast and conference call at 11:00 am Eastern time on July 31, 2024 to review the second quarter 2024 performance, discuss recent events and conduct a question-and-answer session. A live webcast will be available in the Investor Relations section of the Company’s website. Shortly after the webcast, a replay of the webcast will be available on the Investor Relations section of the Company's website for up to twelve months. Please note that the full text of the press release and supplemental information package are also available through the Company’s website at ir.easterlyreit.com.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. (NYSE: DEA) is based in
Forward Looking Statements
We make statements in this press release 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 and include our guidance with respect to Net income (loss) and Core FFO per share on a fully diluted basis. 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 press release 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
Balance Sheet (Unaudited, in thousands, except share amounts)
|
||||||||
|
|
June 30, 2024 |
|
|
December 31, 2023 |
|
||
Assets |
|
|
|
|
|
|
||
Real estate properties, net |
|
$ |
2,417,749 |
|
|
$ |
2,319,143 |
|
Cash and cash equivalents |
|
|
14,814 |
|
|
|
9,381 |
|
Restricted cash |
|
|
12,425 |
|
|
|
12,558 |
|
Tenant accounts receivable |
|
|
71,273 |
|
|
|
66,274 |
|
Investment in unconsolidated real estate venture |
|
|
280,085 |
|
|
|
284,544 |
|
Intangible assets, net |
|
|
147,510 |
|
|
|
148,453 |
|
Interest rate swaps |
|
|
2,465 |
|
|
|
1,994 |
|
Prepaid expenses and other assets |
|
|
49,717 |
|
|
|
37,405 |
|
Total assets |
|
$ |
2,996,038 |
|
|
$ |
2,879,752 |
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
||
Revolving credit facility |
|
|
72,500 |
|
|
|
79,000 |
|
Term loan facilities, net |
|
|
274,181 |
|
|
|
299,108 |
|
Notes payable, net |
|
|
844,939 |
|
|
|
696,532 |
|
Mortgage notes payable, net |
|
|
209,283 |
|
|
|
220,195 |
|
Intangible liabilities, net |
|
|
10,826 |
|
|
|
12,480 |
|
Deferred revenue |
|
|
105,671 |
|
|
|
82,712 |
|
Accounts payable, accrued expenses and other liabilities |
|
|
106,164 |
|
|
|
80,209 |
|
Total liabilities |
|
|
1,623,564 |
|
|
|
1,470,236 |
|
|
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
Common stock, par value |
|
|
1,030 |
|
|
|
1,010 |
|
Additional paid-in capital |
|
|
1,810,678 |
|
|
|
1,783,338 |
|
Retained earnings |
|
|
121,538 |
|
|
|
112,301 |
|
Cumulative dividends |
|
|
(630,738 |
) |
|
|
(576,319 |
) |
Accumulated other comprehensive income |
|
|
2,344 |
|
|
|
1,871 |
|
Total stockholders' equity |
|
|
1,304,852 |
|
|
|
1,322,201 |
|
Non-controlling interest in Operating Partnership |
|
|
67,622 |
|
|
|
87,315 |
|
Total equity |
|
|
1,372,474 |
|
|
|
1,409,516 |
|
Total liabilities and equity |
|
$ |
2,996,038 |
|
|
$ |
2,879,752 |
|
|
|
|
|
|
|
|
||
Income Statement (Unaudited, in thousands, except share and per share amounts)
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income |
|
$ |
72,183 |
|
|
$ |
67,758 |
|
|
$ |
142,929 |
|
|
$ |
135,906 |
|
Tenant reimbursements |
|
|
2,814 |
|
|
|
2,500 |
|
|
|
3,831 |
|
|
|
4,575 |
|
Asset management income |
|
|
551 |
|
|
|
517 |
|
|
|
1,101 |
|
|
|
1,034 |
|
Other income |
|
|
673 |
|
|
|
598 |
|
|
|
1,160 |
|
|
|
1,078 |
|
Total revenues |
|
|
76,221 |
|
|
|
71,373 |
|
|
|
149,021 |
|
|
|
142,593 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Property operating |
|
|
18,118 |
|
|
|
17,629 |
|
|
|
34,710 |
|
|
|
35,517 |
|
Real estate taxes |
|
|
7,843 |
|
|
|
7,619 |
|
|
|
16,072 |
|
|
|
15,087 |
|
Depreciation and amortization |
|
|
24,086 |
|
|
|
22,619 |
|
|
|
47,886 |
|
|
|
45,700 |
|
Acquisition costs |
|
|
408 |
|
|
|
444 |
|
|
|
827 |
|
|
|
905 |
|
Corporate general and administrative |
|
|
7,128 |
|
|
|
7,024 |
|
|
|
13,583 |
|
|
|
14,319 |
|
Total expenses |
|
|
57,583 |
|
|
|
55,335 |
|
|
|
113,078 |
|
|
|
111,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income from unconsolidated real estate venture |
|
|
1,377 |
|
|
|
1,418 |
|
|
|
2,792 |
|
|
|
2,820 |
|
Interest expense, net |
|
|
(15,165 |
) |
|
|
(11,678 |
) |
|
|
(29,001 |
) |
|
|
(23,693 |
) |
Net income |
|
|
4,850 |
|
|
|
5,778 |
|
|
|
9,734 |
|
|
|
10,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlling interest in Operating Partnership |
|
|
(239 |
) |
|
|
(675 |
) |
|
|
(497 |
) |
|
|
(1,198 |
) |
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. |
|
$ |
4,611 |
|
|
$ |
5,103 |
|
|
$ |
9,237 |
|
|
$ |
8,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to Easterly Government |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Properties, Inc. per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
Diluted |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
102,913,974 |
|
|
|
93,358,851 |
|
|
|
102,453,558 |
|
|
|
92,235,346 |
|
Diluted |
|
|
103,200,622 |
|
|
|
93,641,382 |
|
|
|
102,729,699 |
|
|
|
92,508,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income, per share - fully diluted basis |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
0.09 |
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - |
|
|
|
|
|
|
|
|
|
|
|
|
||||
fully diluted basis |
|
|
108,280,113 |
|
|
|
105,707,282 |
|
|
|
107,998,356 |
|
|
|
104,569,748 |
|
EBITDA (Unaudited, in thousands)
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
||||
Net income |
|
$ |
4,850 |
|
|
$ |
5,778 |
|
|
$ |
9,734 |
|
|
$ |
10,192 |
|
Depreciation and amortization |
|
|
24,086 |
|
|
|
22,619 |
|
|
|
47,886 |
|
|
|
45,700 |
|
Interest expense |
|
|
15,165 |
|
|
|
11,678 |
|
|
|
29,001 |
|
|
|
23,693 |
|
Tax expense |
|
|
(293 |
) |
|
|
352 |
|
|
|
(27 |
) |
|
|
520 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
2,081 |
|
|
|
1,942 |
|
|
|
4,155 |
|
|
|
3,882 |
|
EBITDA |
|
$ |
45,889 |
|
|
$ |
42,369 |
|
|
$ |
90,749 |
|
|
$ |
83,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pro forma adjustments(1) |
|
|
284 |
|
|
|
|
|
|
|
|
|
|
|||
Pro forma EBITDA |
|
$ |
46,173 |
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Pro forma assuming a full quarter of operations from the three operating properties acquired in the second quarter of 2024. |
||||||||||||||||
FFO and CAD (Unaudited, in thousands, except share and per share amounts)
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
|
June 30, 2024 |
|
|
June 30, 2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
4,850 |
|
|
$ |
5,778 |
|
|
$ |
9,734 |
|
|
$ |
10,192 |
|
Depreciation of real estate assets |
|
|
23,834 |
|
|
|
22,368 |
|
|
|
47,383 |
|
|
|
45,199 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
2,006 |
|
|
|
1,875 |
|
|
|
4,008 |
|
|
|
3,750 |
|
FFO |
|
$ |
30,690 |
|
|
$ |
30,021 |
|
|
$ |
61,125 |
|
|
$ |
59,141 |
|
Adjustments to FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss on extinguishment of debt |
|
$ |
258 |
|
|
$ |
- |
|
|
$ |
258 |
|
|
$ |
14 |
|
Provision for credit losses |
|
|
218 |
|
|
|
- |
|
|
|
218 |
|
|
|
- |
|
Natural disaster event expense, net of recovery |
|
|
(61 |
) |
|
|
(22 |
) |
|
|
(8 |
) |
|
|
78 |
|
Depreciation of non-real estate assets |
|
|
252 |
|
|
|
251 |
|
|
|
503 |
|
|
|
501 |
|
Unconsolidated real estate venture allocated share of above adjustments |
|
|
16 |
|
|
|
17 |
|
|
|
33 |
|
|
|
33 |
|
Core FFO |
|
$ |
31,373 |
|
|
$ |
30,267 |
|
|
$ |
62,129 |
|
|
$ |
59,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
FFO, per share - fully diluted basis |
|
$ |
0.28 |
|
|
$ |
0.28 |
|
|
$ |
0.57 |
|
|
$ |
0.57 |
|
Core FFO, per share - fully diluted basis |
|
$ |
0.29 |
|
|
$ |
0.29 |
|
|
$ |
0.58 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Core FFO |
|
$ |
31,373 |
|
|
$ |
30,267 |
|
|
$ |
62,129 |
|
|
$ |
59,767 |
|
Straight-line rent and other non-cash adjustments |
|
|
(918 |
) |
|
|
(902 |
) |
|
|
(1,774 |
) |
|
|
(1,365 |
) |
Amortization of above-/below-market leases |
|
|
(480 |
) |
|
|
(676 |
) |
|
|
(1,074 |
) |
|
|
(1,376 |
) |
Amortization of deferred revenue |
|
|
(1,759 |
) |
|
|
(1,622 |
) |
|
|
(3,363 |
) |
|
|
(3,106 |
) |
Non-cash interest expense |
|
|
389 |
|
|
|
244 |
|
|
|
696 |
|
|
|
488 |
|
Non-cash compensation |
|
|
1,160 |
|
|
|
1,299 |
|
|
|
2,389 |
|
|
|
2,967 |
|
Natural Disaster event expense, net of recovery |
|
|
61 |
|
|
|
22 |
|
|
|
8 |
|
|
|
(78 |
) |
Principal amortization |
|
|
(1,078 |
) |
|
|
(1,068 |
) |
|
|
(2,195 |
) |
|
|
(2,126 |
) |
Maintenance capital expenditures |
|
|
(3,813 |
) |
|
|
(2,329 |
) |
|
|
(5,537 |
) |
|
|
(5,069 |
) |
Contractual tenant improvements |
|
|
(129 |
) |
|
|
(712 |
) |
|
|
(573 |
) |
|
|
(1,013 |
) |
Unconsolidated real estate venture allocated share of above adjustments |
|
|
- |
|
|
|
39 |
|
|
|
(15 |
) |
|
|
(74 |
) |
Cash Available for Distribution (CAD) |
|
$ |
24,806 |
|
|
$ |
24,562 |
|
|
$ |
50,691 |
|
|
$ |
49,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - fully diluted basis |
|
|
108,280,113 |
|
|
|
105,707,282 |
|
|
|
107,998,356 |
|
|
|
104,569,748 |
|
Net Debt and Adjusted Net Debt (Unaudited, in thousands)
|
|||
|
June 30, 2024 |
|
|
Total Debt(1) |
$ |
1,407,507 |
|
Less: Cash and cash equivalents |
|
(15,640 |
) |
Net Debt |
$ |
1,391,867 |
|
Less: Adjustment for development projects(2) |
|
(124,496 |
) |
Adjusted Net Debt |
$ |
1,267,371 |
|
|
|
|
|
1 Excludes unamortized premiums / discounts and deferred financing fees. |
|||
2 See definition of Adjusted Net Debt on Page 5. |
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731588079/en/
Easterly Government Properties, Inc.
Lindsay S. Winterhalter
Senior Vice President, Investor Relations & Operations
202-596-3947
ir@easterlyreit.com
Source: Easterly Government Properties, Inc.
FAQ
What were the net income and Core FFO for DEA in Q2 2024?
What is Easterly Government Properties' new revolving credit facility?
What are the key property acquisitions by DEA in Q2 2024?
What is the updated Core FFO guidance for DEA in 2024?
What is DEA's debt situation as of June 30, 2024?
