Easterly Government Properties — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $5.7 million ($0.12 per share, fully diluted) for the quarter ended September 30, 2026, compared to $1.2 million ($0.03 per share) in the prior year period.
• Reported Core FFO of $38.0 million ($0.78 per share, fully diluted) for the quarter, up from $35.6 million ($0.76 per share) in the prior year period.
• For the nine months ended September 30, 2026, net income was $10.3 million ($0.21 per share), compared to $8.8 million ($0.19 per share) in the prior year period.
• Nine-month Core FFO totaled $112.5 million ($2.33 per share), compared to $103.3 million ($2.22 per share) in the prior year period.
• Total revenues for the quarter were $93.6 million, up from $86.2 million in the prior year period; nine-month revenues were $277.6 million, up from $249.1 million.
• Rental income for the quarter was $90.0 million, compared to $82.2 million in the prior year period.
• Total indebtedness was approximately $1.7 billion as of September 30, 2026, with a weighted average interest rate of 4.6% and weighted average maturity of 3.8 years.
• Net Debt to total enterprise value was 59.6%; Net Debt to annualized quarterly EBITDA was 7.1x; Adjusted Net Debt to annualized quarterly EBITDA was 6.8x.
• Cash Available for Distribution (CAD) for the quarter was $32.8 million, compared to $29.3 million in the prior year period.

Guidance and Future Outlook:

• Raised the lower end of full-year 2026 Core FFO per share guidance to a range of $3.08 – $3.13.
• Issued full-year 2027 Core FFO per share guidance of $3.09 – $3.17.
• 2026 guidance assumes approximately $50 million in wholly owned acquisitions and $50 – $100 million in gross development-related investment.
• 2027 guidance assumes approximately $50 million in wholly owned acquisitions and $25 – $50 million in gross development-related investment.

Business Segments and Product Lines:

• Portfolio consists of 106 operating properties (10.7 million leased square feet) as of September 30, 2026, with 98% occupancy.
• Portfolio breakdown includes 93 properties leased to U.S. Government agencies, 8 leased to state/local government agencies, and 5 leased to private tenants.
• Three properties are in development, expected to add 0.2 million leased square feet upon completion.
• Completed the FDLE laboratory facility in Fort Myers, Florida, leased to the Florida Department of Law Enforcement under a 25-year lease.
• Two additional development projects in Flagstaff, Arizona, and Medford, Oregon, are under construction with expected 20-year GSA leases for the U.S. Judiciary.
• Extended the lease at Various GSA - Chicago (FAA) through July 2027 (firm term through April 2027).
• Renewed USCIS - Lincoln on a new 15-year lease with 10 years of firm term.
• Received full repayment of the $35.6 million Bedford construction loan in September 2026, prior to the August 2027 maturity date.

Market and Competitive Landscape:

• Management noted that despite broader market volatility, the government-focused portfolio continues to provide stability and durability.
• The company focuses on Class A commercial properties leased to the U.S. Government and adjacent partners.

Risks and Challenges:

• Key risks include dependence on the U.S. Government for substantially all revenues, including credit risk and potential changes in government spending or leasing preferences.
• Risks include potential government shutdowns, loss of key personnel, intense competition in the real estate market, and risks associated with development projects.
• Financial risks include failure to refinance indebtedness on favorable terms, fluctuations in interest rates, and exposure to natural disasters or climate change.

Management Commentary and Tone:

• Darrell Crate, President & CEO, stated that third-quarter results reflect disciplined execution and the strength of the platform built.
• Management highlighted the stability and durability of the government-focused portfolio amidst market volatility.

Other Key Points:

• The Board of Directors approved a cash dividend of $0.45 per common share for the third quarter of 2026, payable November 20, 2026.
• Used $6.4 million of available cash to extinguish the mortgage note obligation on USFS II - Albuquerque.
• Amended the 2018 term loan facility and 2024 revolving credit facility to remove the credit spread adjustment applicable to SOFR-based borrowings.
• Entered into four interest rate swaps in October 2026 with an aggregate notional value of $200.0 million.
• Total assets were $3.37 billion as of September 30, 2026, compared to $3.38 billion as of December 31, 2025.
• Tenant accounts receivable increased to $72.1 million as of September 30, 2026, from $51.5 million at year-end 2025.
• Deferred revenue increased to $226.0 million as of September 30, 2026, from $219.2 million at year-end 2025.