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What changed in Easterly Government Properties, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Easterly Government Properties, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+272 added−244 removedSource: 10-K (2026-02-23) vs 10-K (2025-02-25)

Top changes in Easterly Government Properties, Inc.'s 2025 10-K

272 paragraphs added · 244 removed · 213 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeAll shares were issued in settlement of previously entered into forward sale transactions in connection with the ATM Programs. As of December 31, 2024, there were no unsettled shares outstanding under our ATM Programs, and we had the capacity to issue an additional $315.4 million under such programs.
Biggest changeAs of December 31, 2025, there were no unsettled shares outstanding under our ATM Program, and we had the capacity to issue an additional $236.2 million under such program. As of December 31, 2025, we had total indebtedness of approximately $1.7 billion, including borrowings of approximately $199.1 million outstanding under our $400.0 million senior unsecured revolving credit facility.
Government, and our differentiated capabilities enable us to continue to compete effectively for U.S. Government development opportunities. 4 • Value-Enhancing Asset Management . Our management team focuses on the efficient management of our properties and on improvements to our properties that enhance their value for a tenant agency and improve the likelihood of lease renewal.
Government, and our differentiated capabilities enable us to continue to compete effectively for U.S. Government development opportunities. • Value-Enhancing Asset Management . Our management team focuses on the efficient management of our properties and on improvements to our properties that enhance their value for a tenant agency and improve the likelihood of lease 4 renewal.
To access these filings, go to the “Financials” portion of our “Investor Relations” page on our website, and then click on “SEC Filings.” In addition, these reports and the other documents we file with the SEC are available at a website maintained by the SEC at http://www.sec.gov .
To access these filings, go to the “Financials” portion of our “Investor Relations” page on our website, and then click on “SEC Filings.” In addition, these reports and the other documents we file with the SEC are available at a website maintained by the SEC at http://www.sec.gov . 8
We are an internally managed real estate investment trust, or REIT, focused primarily on the acquisition, development and management of Class A commercial properties that are leased to U.S. Government agencies that serve essential functions. We generate over 90% of our revenue by leasing our properties to such agencies either directly or through the U.S. General Services Administration (“GSA”).
We are an internally managed real estate investment trust, or REIT, focused primarily on the acquisition, development and management of Class A commercial properties that are leased to U.S. Government agencies that serve essential functions. We generate approximately 90% of our revenue by leasing our properties to such agencies either directly or through the U.S. General Services Administration (“GSA”).
All of our leases with other federal agencies were executed under delegation from the GSA, and therefore the Federal Buildings Fund stands behind these leases as a guarantor, even though the rent is paid from appropriated funds by the agencies who executed the lease contracts. Furthermore, the U.S. Government has never experienced a financial default to date.
Our leases with other federal agencies were executed under delegation from the GSA, and therefore the Federal Buildings Fund stands behind these leases as a guarantor, even though the rent is paid from appropriated funds by the agencies who executed the lease contracts. Furthermore, the U.S. Government has never experienced a financial default to date.
We work in close partnership with the U.S. Government tenant agencies to manage the construction of specialized, agency-specific design enhancements. These highly tailored build-outs substantially increase the likelihood of the tenant agency’s renewal and also typically generate a construction management fee paid by the tenant agency to us in the amount of approximately 10% of the actual cost of construction.
We work in close partnership with the U.S. Government tenant agencies to manage the construction of specialized, agency-specific design enhancements. These highly tailored build-outs substantially increase the likelihood of the tenant agency’s renewal and also typically generate a construction management fee paid by the tenant agency to us in the amount of approximately 12% of the actual cost of construction.
Government, state, local and private-leased properties, of which 1.2 million square feet was acquired through the JV and approximately 1.4 million aggregate square feet was internally developed. We believe that our management expertise provides us with a significant advantage over our competitors when pursuing acquisition opportunities and engaging U.S.
Government, state, local and private-leased properties, of which 1.2 million square feet was acquired through the JV and approximately 1.6 million aggregate square feet was internally developed. We believe that our management expertise provides us with a significant advantage over our competitors when pursuing acquisition opportunities and engaging U.S.
Government-leased property that meets our investment criteria as well as information about the building’s ownership. This proprietary database incorporates recent updates to the GSA inventory and the portfolio of VA leased assets across the United States. We believe that our longstanding industry relationships, coupled with our proprietary database, improve our ability to source and execute attractive acquisition opportunities.
Government-leased property that meets our investment criteria as well as information about the building’s ownership. This proprietary database incorporates recent updates to the GSA inventory and VA leased assets across the United States. We believe that our longstanding industry relationships, coupled with our proprietary database, improve our ability to source and execute attractive acquisition opportunities.
For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned two properties under development that we expect will encompass approximately 0.2 million leased square feet upon completion.
For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned three properties under development that we expect will encompass approximately 0.2 million leased square feet upon completion.
We offer a comprehensive benefits program as well as a 401(k) with a matching employer contribution, flexible spending accounts, remote work policies, income protection through our sick pay, salary continuation and long term disability policies, paid vacation, paid maternity, paternity and adoption leave and holiday and personal days to balance work and personal life.
We offer a comprehensive benefits program as well as a 401(k) with a matching employer contribution, flexible spending accounts, remote work policies, income protection through our sick pay, salary continuation and disability policies, paid vacation, paid maternity, paternity and adoption leave and holiday and personal days to balance work and personal life.
Our senior management team has a proven track record of sourcing, acquiring, developing and managing properties leased to government agencies. For example, our senior management team has collectively been responsible for the acquisition of an aggregate of approximately 10.0 million square feet of U.S.
Our senior management team has a proven track record of sourcing, acquiring, developing and managing properties leased to government agencies. For example, our senior management team has collectively been responsible for the acquisition of an aggregate of approximately 10.6 million square feet of U.S.
Additionally, over 45% of our assets have achieved at least one sustainability related certification such as ENERGY STAR, LEED, or Green Globes. Corporate Responsibility We are committed to volunteerism and philanthropy and strive to positively impact the communities in which we work and live.
Over 35% of our assets have achieved at least one sustainability related certification such as ENERGY STAR, LEED, or Green Globes. Corporate Responsibility We are committed to volunteerism and philanthropy and strive to positively impact the communities in which we work and live.
Our team seeks to leverage these relationships to access a wide variety of sourcing opportunities, frequently resulting in the acquisition of properties that were not broadly marketed. In addition, we maintain a proprietary database that tracks buildings encompassing approximately 96.7 million rentable square feet and includes substantially every major U.S.
Our team seeks to leverage these relationships to access a wide variety of sourcing opportunities, frequently resulting in the acquisition of properties that were not broadly marketed. In addition, we maintain a proprietary database that tracks buildings encompassing approximately 91.1 million rentable square feet and includes substantially every major U.S.
Government requirements and the needs of tenant agencies. Since 1994, members of our senior management team have developed an average of approximately 46,000 square feet per year of U.S. Government-leased build-to-suit properties. We believe that our thorough understanding of the U.S. Government’s procurement processes and standards, our longstanding relationships with the GSA and other agencies of the U.S.
Government requirements and the needs of tenant agencies. Since 1994, members of our senior management team have developed an average of approximately 49,700 square feet per year of U.S. Government-leased build-to-suit properties. We believe that our thorough understanding of the U.S. Government’s procurement processes and standards, our longstanding relationships with the GSA and other agencies of the U.S.
Government tenant agencies, four operating properties leased to tenant agencies of a U.S. state or local government and three operating properties that were entirely leased to private tenants. As of December 31, 2024, our operating properties were 97% leased.
Government tenant agencies, six operating properties leased to tenant agencies of a U.S. state or local government and four operating properties that were entirely leased to private tenants. As of December 31, 2025, our operating properties were 97% leased.
Government, working closely with the tenant agency to meet its needs and objectives. We may also consider other potential opportunities to add properties to our portfolio, including acquiring properties leased to state and local governments with strong creditworthiness and other opportunities that directly or indirectly support the mission of select government agencies.
Government, working closely with the tenant agency to meet its needs and objectives. We continue to pursue opportunities to add properties to our portfolio, including acquiring properties leased to state and local governments with strong creditworthiness and other opportunities that directly or indirectly support the mission of select government agencies.
Our senior management team has developed projects comprising approximately 4.6 million square feet, including 40 build-to-suit projects for the U.S. Government as well as other corporate tenants. In the aggregate, our senior management team has developed 23 projects for the GSA and U.S. Government agencies. Development of government projects, particularly build-to-suit projects, requires expertise in GSA and other U.S.
Our senior management team has developed projects comprising approximately 4.8 million square feet, including 41 build-to-suit projects for the U.S. Government as well as other corporate tenants. In the aggregate, our senior management team has developed 24 projects for the GSA and U.S. Government agencies. Development of government projects, particularly build-to-suit projects, requires expertise in GSA and other U.S.
In 2024, we published our third annual Environmental, Social, and Governance (“ESG”) report which included information on our progress towards meeting our previously announced environmental and social goals as well as an update to our alignment with five United Nations Sustainable Development Goals. These goals aim to help reduce our greenhouse gas emissions and address climate change performance. The U.S.
In 2025, we published our fourth annual Corporate Sustainability Report which included information on our progress towards meeting our previously announced environmental and social goals as well as an update to our alignment with five United Nations Sustainable Development Goals. These goals aim to help reduce our greenhouse gas emissions and address climate change performance. The U.S.
When we acquire a property, we review all property-level operating expenditures to determine whether and how the property can be managed more efficiently. 5 Employees and Human Capital As of December 31, 2024, we had 50 employees, including 34 employees based in our corporate headquarters in Washington, D.C. and 16 employees based in other locations throughout the United States.
When we acquire a property, we review all property-level operating expenditures to determine whether and how the property can be managed more efficiently. 5 Employees and Human Capital As of December 31, 2025, we had 55 employees, including 35 employees based in our corporate headquarters in Washington, D.C. and 20 employees based in other locations throughout the United States.
Our operating partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of our operating partnership and owned approximately 95.2% of the aggregate limited partnership interests in our operating partnership, which we refer to herein as common units, as of December 31, 2024.
Our operating partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of our operating partnership and owned approximately 96.6% of the aggregate limited partnership interests in our operating partnership, which we refer to herein as common units, as of December 31, 2025.
We pursue the following strategies to achieve these goals: • Pursue Attractive Acquisition Opportunities. We seek to pursue strategic and disciplined acquisitions of properties that we believe are directly and indirectly essential to the mission of select government agencies and that, in many cases, contain agency-specific design enhancements that allow each tenant agency to better satisfy its mission.
We seek to pursue strategic and disciplined acquisitions of properties that we believe are directly and indirectly essential to the mission of select government agencies and that, in many cases, contain agency-specific design enhancements that allow each tenant agency to better satisfy its mission.
As of December 31, 2024, the weighted average age of our wholly owned and unconsolidated operating properties was approximately 15.7 years based on the date the property was built or renovated-to-suit, where applicable, and the weighted average remaining lease term was approximately 10.0 years. • Primarily U.S. Government Tenant Base with Strong History of Renewal . Our leases with U.S.
As of December 31, 2025, the weighted average age of our wholly owned and unconsolidated operating properties was approximately 16.4 years based on the date the property was built or renovated-to-suit, where applicable, and the weighted average remaining lease term was approximately 9.5 years. • Primarily U.S. Government Tenant Base with Strong History of Renewal . Our leases with U.S.
As of December 31, 2024, we wholly owned 90 operating properties and ten operating properties through an unconsolidated joint venture (the “JV”) in the United States encompassing approximately 9.7 million leased square feet (9.2 million pro rata), including 92 operating properties that were leased primarily to U.S.
As of December 31, 2025, we wholly owned 93 operating properties and ten operating properties through an unconsolidated joint venture (the “JV”) in the United States encompassing approximately 10.4 million leased square feet (9.8 million pro rata), including 93 operating properties that were leased primarily to U.S.
Significant Tenants As of December 31, 2024, our U.S. Government tenant agencies accounted for 93.3% of our annualized lease income.
Significant Tenants As of December 31, 2025, our U.S. Government tenant agencies accounted for 88.1% of our annualized lease income.
We expect to bid for those property development opportunities published by the GSA or the relevant U.S. Government agency, as well as seeking other potential development opportunities that suit our investment criteria. • Renew Existing Leases at Positive Spreads . We seek to renew leases at our U.S. Government-leased properties at positive spreads upon expiration. Upon lease renewal, U.S.
Government agency, as well as seeking other potential development opportunities that suit our investment criteria. • Renew Existing Leases at Positive Spreads . We seek to renew leases at our U.S. Government-leased properties at positive spreads upon expiration. Upon lease renewal, U.S.
Government agency, are in excess of 40,000 rentable square feet with expansion potential, and are in strategic locations to facilitate the tenant agency’s mission and include build-to-suit features. • Develop Build-to-Suit U.S. Government Properties. We target attractive opportunities to develop build-to-suit properties for the benefit of certain U.S. Government agencies. As U.S.
Government agency, are in excess of 40,000 rentable square feet with expansion potential, and are in strategic locations to facilitate the tenant agency's mission and include build-to-suit features. We may also target for acquisition, properties with similar characteristics that are leased to private tenants and support the mission of select Government agencies. • Develop Build-to-Suit U.S. Government Properties.
Government agencies expand, they often require additional space tailored specifically to their needs, which may not be available in the agency’s target market and therefore require new construction. The U.S. Government has historically solicited proposals to develop and lease such properties to the agency, rather than developing and owning the property itself.
We target attractive opportunities to develop build-to-suit properties for the benefit of certain U.S. Government agencies. As U.S. Government agencies expand, they often require additional space tailored specifically to their needs, which may not be available in the agency’s target market and therefore require new construction. The U.S.
Our capital structure provides us with the resources, financial flexibility and the capacity to support the future growth of our business. Since our initial public offering, we have raised capital through four underwritten public offerings of our common stock and sales of our common stock under our at-the-market equity offering programs (“ATM Programs”).
Since our initial public offering, we have raised capital through four underwritten public offerings of our common stock and sales of our common stock under our at-the-market equity offering programs, including our current at-the-market equity offering program entered into in June 2021 (the “ATM Program”).
In order to comply with REIT requirements, we may need to forego otherwise attractive opportunities and limit our expansion opportunities and the manner in which we conduct our operations. See Item 1A. “Risk Factors.” Corporate Headquarters Our principal executive offices are located at 2001 K Street NW, Suite 775 North, Washington, DC 20006, and our telephone number is 202-595-9500.
In order to comply with REIT requirements, we may need to forego otherwise attractive opportunities and limit our expansion opportunities and the manner in which we conduct our operations. See Item 1A. “Risk Factors.” Supplemental U.S.
In 2023, we were recognized as a Premier Member of the EPA’s ENERGY STAR Certification Nation as well as a Silver Level Green Lease Leader by the Department of Energy’s Better Building Alliance. For the 2024 certification year, we had 19 ENERGY STAR certified buildings.
Government maintains “green lease” policies as one of the many factors it considers when leasing property and we continue to partner with the GSA to promote sustainability. In 2023, we were recognized as a Premier Member of the EPA’s ENERGY STAR Certification Nation as well as a Silver Level Green Lease Leader by the Department of Energy’s Better Building Alliance.
Additionally, during 2021, we formed the JV with a leading global investor to acquire a portfolio of properties, in which we own a 53% interest. During the year ended December 31, 2024, we received net proceeds of $71.1 million through the issuance of 5,491,217 shares of our common stock under our ATM Programs.
Additionally, during 2021, we formed the JV with a leading global investor to acquire a portfolio of properties, in which we own a 53% interest.
As of December 31, 2024, we had total indebtedness of approximately $1.6 billion, including borrowings of approximately $274.6 million outstanding under our $400.0 million senior unsecured revolving credit facility. Business & Growth Strategies Our objective is to generate attractive risk-adjusted returns for our stockholders over the long term through dividends and capital appreciation.
Business & Growth Strategies Our objective is to generate attractive risk-adjusted returns for our stockholders over the long term through dividends and capital appreciation. We pursue the following strategies to achieve these goals: • Pursue Attractive Acquisition Opportunities.
Removed
Government maintains “green lease” policies that include the “Promotion of Energy Efficiency and Use of Renewable Energy” as one of the many factors it considers when leasing property and we continue to partner with the GSA to promote sustainability.
Added
Our capital structure provides us with the resources, financial flexibility and the capacity to support the future growth of our business.
Added
During the year ended December 31, 2025, we received net proceeds of $63.0 million through the issuance of 2,466,987 shares (adjusted for impact of reverse stock split, as applicable) of our common stock under our ATM Program. All shares were issued in settlement of previously entered into forward sale transactions in connection with the ATM Program.
Added
Government has historically solicited proposals to develop and lease such properties to the agency, rather than developing and owning the property itself. We expect to bid for those property development opportunities published by the GSA or the relevant U.S.
Added
Federal Income Tax Considerations The following discussion supplements and updates the disclosures under the heading “Certain United States Federal Income Tax Considerations” in the prospectus dated February 28, 2024, contained in our Registration Statement on Form S-3 (File No. 333-277434) filed with the SEC on February 28, 2024 (the “Existing Tax Disclosure”).
Added
Capitalized terms herein that are not otherwise defined shall have the same meaning as when used in the Existing Tax Disclosure. On July 4, 2025, H.R. 1, informally known as the One Big Beautiful Bill Act (the “OBBB”), was enacted.
Added
The OBBB makes major changes to the Code, including some provisions of the Code that affect the taxation of REITs and their investors.
Added
In particular, • For taxable years beginning on or after January 1, 2026, the OBBB relaxed the REIT asset test requirement with respect to taxable REIT subsidiaries, providing that not more than 25% (relaxed from 20%) of the gross value of a REIT's assets may be represented by securities of one or more taxable REIT subsidiaries. • The OBBB permanently extended the pass-through qualified business income deduction, generally allowing individuals to deduct 20% of the aggregate amount of ordinary REIT dividends distributed by a REIT.
Added
This deduction was due to expire for tax years beginning after December 31, 2025. • While itemized deductions for individuals for state and local income, property and sales taxes remain subject to limitations on deductibility, the OBBB temporarily increased the limitation on such deductions for taxable years beginning prior to 2030, subject to certain phase outs.
Added
To the extent the information set forth in the Existing Tax Disclosure is inconsistent with this supplemental information, this supplemental information supersedes the information in the Existing Tax Disclosure.
Added
This supplemental information is provided on the same basis and subject to the same qualifications as are set forth in the first five paragraphs of the Existing Tax Disclosure as if those paragraphs were set forth in this Annual Report on Form 10-K. The OBBB contains complex revisions to the U.S. federal income tax laws.
Added
Holders of our Common Stock are urged to consult with their tax advisors with respect to the OBBB and its potential effect on the acquisition, ownership and disposition of our Common Stock. Corporate Headquarters Our principal executive offices are located at 2001 K Street NW, Suite 775 North, Washington, DC 20006, and our telephone number is 202-595-9500.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

79 edited+18 added−5 removed290 unchanged
Biggest changeMoreover, our charter provides that, without the affirmative vote of a majority of the votes cast on the matter by our stockholders entitled to vote generally in the election of directors, we may not elect to be subject to any of these additional provisions of Subtitle 8. 17 Such takeover defenses may have the effect of inhibiting a third party from making an acquisition proposal for us or of delaying, deferring or preventing a change in control of us under the circumstances that otherwise could provide our common stockholders with the opportunity to realize a premium over the then current market price.
Biggest changeSuch takeover defenses may have the effect of inhibiting a third party from making an acquisition proposal for us or of delaying, deferring or preventing a change in control of us under the circumstances that otherwise could provide our common stockholders with the opportunity to realize a premium over the then current market price.
Our development activities may be subject to risks relating to various local, state and federal statutes, ordinances, rules and regulations concerning zoning, building design, construction and similar matters, including local regulations that impose restrictive zoning requirements.
Our development activities may be subject to risks relating to various local, state and federal statutes, ordinances, rules and regulations concerning zoning, building design, construction and similar matters, including local regulations that impose restrictive zoning requirements.
In addition, as a REIT, we will be subject to U.S. federal income tax to the extent that we distribute less than 100% of our taxable income (including capital gains) and will be subject to a 4% nondeductible excise tax on the amount by which our distributions in any calendar year are less than a minimum amount specified by the Code.
In addition, as a REIT, we will be subject to U.S. federal income tax to the extent that we distribute less than 100% of our taxable income (including capital gains) and will be subject to a 4% nondeductible excise tax on the amount by which our distributions in any calendar year are less than a minimum amount specified by the Code.
Further, even though debt instruments issued by a publicly traded REIT that are not secured by a mortgage on real property are qualifying assets for purposes of the 75% asset test, no more than 25% of the value of our total assets can be represented by such unsecured debt instruments.
Further, even though debt instruments issued by a publicly traded REIT that are not secured by a mortgage on real property are qualifying assets for purposes of the 75% asset test, no more than 25% of the value of our total assets 25 can be represented by such unsecured debt instruments.
Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following: • require us to dedicate a substantial portion of cash flow from operations to the payment of principal and interest on indebtedness, thereby reducing the funds available for other purposes; • make it more difficult for us to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our ability to meet operational needs; • force us to dispose of one or more of our properties, possibly on unfavorable terms (including the possible application of the 100% tax on income from “prohibited transactions”), or in violation of certain covenants to which we may be subject; • subject us to increased sensitivity to interest rate increases; • make us more vulnerable to economic downturns, adverse industry conditions or catastrophic external events; • limit our ability to withstand competitive pressures; 19 • limit our ability to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness; • reduce our flexibility in planning for or responding to changing business, industry and economic conditions; or • place us at a competitive disadvantage to competitors that have relatively less debt than we have.
Our level of debt and the limitations imposed on us by our debt agreements could have significant adverse consequences, including the following: • require us to dedicate a substantial portion of cash flow from operations to the payment of principal and interest on indebtedness, thereby reducing the funds available for other purposes; • make it more difficult for us to borrow additional funds as needed or on favorable terms, which could, among other things, adversely affect our ability to meet operational needs; • force us to dispose of one or more of our properties, possibly on unfavorable terms (including the possible application of the 100% tax on income from “prohibited transactions”), or in violation of certain covenants to which we may be subject; • subject us to increased sensitivity to interest rate increases; • make us more vulnerable to economic downturns, adverse industry conditions or catastrophic external events; • limit our ability to withstand competitive pressures; • limit our ability to refinance our indebtedness at maturity or the refinancing terms may be less favorable than the terms of our original indebtedness; • reduce our flexibility in planning for or responding to changing business, industry and economic conditions; or • place us at a competitive disadvantage to competitors that have relatively less debt than we have.
Some of the factors that could negatively affect our share price or result in fluctuations in the price or trading volume of our common stock include: • actual or anticipated variations in our quarterly operating results or dividends; • changes in guidance related to financial performance; • publication of research reports about us or the real estate industry; • increases in market interest rates that lead purchasers of our shares to demand a higher yield; • changes in market valuations of similar companies; • adverse market reaction to any additional debt we incur in the future; • additions or departures of key management personnel; • actions by institutional stockholders; • speculation in the press or investment community; • the realization of any of the other risk factors presented in this report; • the extent of investor interest in our securities; • the general reputation of REITs and the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate-based companies; • our underlying asset value; • investor confidence in the stock and bond markets, generally; • changes in tax laws; • future equity issuances; • failure to meet guidance related to financial performance; • failure to meet and maintain REIT qualifications; and • general market and economic conditions.
Some of the factors that could negatively affect our share price or result in fluctuations in the price or trading volume of our common stock include: • actual or anticipated variations in our quarterly operating results or dividends; • changes in guidance related to financial performance; • publication of research reports about us or the real estate industry; • increases in market interest rates that lead purchasers of our shares to demand a higher yield; • changes in market valuations of similar companies; • adverse market reaction to any additional debt we incur in the future; • additions or departures of key management personnel; • actions by institutional stockholders; • speculation in the press or investment community; • the realization of any of the other risk factors presented in this report; • the extent of investor interest in our securities; • the general reputation of REITs and the attractiveness of our equity securities in comparison to other equity securities, including securities issued by other real estate-based companies; • our underlying asset value; 22 • investor confidence in the stock and bond markets, generally; • changes in tax laws; • future equity issuances; • failure to meet guidance related to financial performance; • failure to meet and maintain REIT qualifications; and • general market and economic conditions.
If sufficient sources of external financing are not available to us on cost effective terms, we could be forced to limit our acquisition, development and renovation activities or take other actions to fund our business activities and repayment of debt, such as selling assets, reducing our cash dividend or paying out a smaller percentage of our taxable income (subject to the annual distribution requirements applicable to REITs under the Internal Revenue Code of 1986, as amended (the “Code”)).
If sufficient sources of external financing are not 12 available to us on cost effective terms, we could be forced to limit our acquisition, development and renovation activities or take other actions to fund our business activities and repayment of debt, such as selling assets, reducing our cash dividend or paying out a smaller percentage of our taxable income (subject to the annual distribution requirements applicable to REITs under the Internal Revenue Code of 1986, as amended (the “Code”)).
Our cash flow from operations may be insufficient to fund required distributions, for example, as a result of differences in timing between our cash flow, the receipt of income for GAAP purposes and the recognition of income for U.S. federal 25 income tax purposes, the effect of non-deductible capital expenditures, the effect of limitations on interest and net operating loss deductibility, the creation of reserves, payment of required debt service or amortization payments, or the need to make additional investments in qualifying real estate assets.
Our cash flow from operations may be insufficient to fund required distributions, for example, as a result of differences in timing between our cash flow, the receipt of income for GAAP purposes and the recognition of income for U.S. federal income tax purposes, the effect of non-deductible capital expenditures, the effect of limitations on interest and net operating loss deductibility, the creation of reserves, payment of required debt service or amortization payments, or the need to make additional investments in qualifying real estate assets.
Because these properties have been designed or physically modified to meet the needs of a particular tenant agency, if the current lease is terminated or not renewed, we 8 may be required to renovate the property at substantial costs, decrease the rent we intend to charge or provide other concessions in order to lease the property to another tenant, which could adversely affect our business, financial condition and results of operations.
Because these properties have been designed or physically modified to meet the needs of a particular tenant agency, if the current lease is terminated or not renewed, we may be required to renovate the property at substantial costs, decrease the rent we intend to charge or provide other concessions in order to lease the property to another tenant, which could adversely affect our business, financial condition and results of operations.
The risk of a security breach, incident, compromise or disruption, particularly through cyber-attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased, which, in turn, may lead to increased costs to protect our network, data and systems.
The risk of a security breach, incident, compromise or disruption, particularly through cyber-attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of 28 attempted attacks and intrusions from around the world have increased, which, in turn, may lead to increased costs to protect our network, data and systems.
Our charter also prohibits the owners of 50% or more of any historic REIT affiliated with Easterly Partners, LLC and its consolidated subsidiaries (each, an “Easterly Fund REIT”), from which our operating partnership acquired 15 properties in connection with our initial public offering in 2015, from owning 50% or more of us, applying certain attribution of ownership rules.
Our charter also prohibits the owners of 50% or more of any historic REIT affiliated with Easterly Partners, LLC and its consolidated subsidiaries (each, an “Easterly Fund REIT”), from which our operating partnership acquired 15 properties in connection with our initial public offering in 2015, from owning 50% or more of us, applying 17 certain attribution of ownership rules.
Instead, its partners, including us, generally are required to pay tax on their respective allocable share of our operating partnership’s income. No assurance can be provided, however, that the IRS will not challenge our operating partnership’s status as a partnership for U.S. federal income tax purposes, or that a court would not sustain such a challenge.
Instead, its partners, including us, generally are required to pay tax on their respective allocable share of our operating partnership’s income. No assurance can be provided, however, that the IRS will not 24 challenge our operating partnership’s status as a partnership for U.S. federal income tax purposes, or that a court would not sustain such a challenge.
Factors that may affect our occupancy levels, our rental revenues, our net operating income, our Funds From Operations (“FFO”) or the value of our properties include the following, among others: • downturns in global, national, regional and local economic conditions, including as a result of elevated inflation and interest rates; • possible reduction of the U.S.
Factors that may affect our occupancy levels, our rental revenues, our net operating income, our Funds From Operations (“FFO”) or the value of our properties include the following, among others: • downturns in global, national, regional and local economic conditions, including as a result of elevated inflation and interest rates; • possible reduction or relocation of the U.S.
Because of their strong credit profile, U.S. Government tenants are viewed as desirable tenants by other landlords and properties leased to U.S. Government tenant agencies often attract many potential buyers. This competition could increase prices for properties of the type we may pursue and adversely affect our profitability and impede our growth.
Because of their strong credit profile, U.S. Government tenants are viewed as desirable 13 tenants by other landlords and properties leased to U.S. Government tenant agencies often attract many potential buyers. This competition could increase prices for properties of the type we may pursue and adversely affect our profitability and impede our growth.
Should the impact of climate change be material in nature, our business, financial condition or results of operations would be adversely affected. 10 In addition, changes in federal and state legislation and regulation on climate change could result in increased capital expenditures to improve the energy efficiency of our existing properties in order to comply with such regulations.
Should the impact of climate change be material in nature, our business, financial condition or results of operations would be adversely affected. In addition, changes in federal and state legislation and regulation on climate change could result in increased capital expenditures to improve the energy efficiency of our existing properties in order to comply with such regulations.
Furthermore, in the event the license agreement is terminated, we will be required to change our name and cease using the Easterly name. Any of these events could disrupt our recognition in the marketplace, damage any goodwill we may have generated and have a material adverse effect on our business, financial condition and results of operations.
Furthermore, in the event the license 19 agreement is terminated, we will be required to change our name and cease using the Easterly name. Any of these events could disrupt our recognition in the marketplace, damage any goodwill we may have generated and have a material adverse effect on our business, financial condition and results of operations.
The presence of contamination or the failure to remediate contamination on our properties may adversely affect our ability to attract or retain tenants and our ability to develop or sell or borrow against those 13 properties. In addition to potential liability for cleanup costs, private plaintiffs may bring claims for personal injury, property damage or for similar reasons.
The presence of contamination or the failure to remediate contamination on our properties may adversely affect our ability to attract or retain tenants and our ability to develop or sell or borrow against those properties. In addition to potential liability for cleanup costs, private plaintiffs may bring claims for personal injury, property damage or for similar reasons.
Government tenant agencies, we retain certain obligations with respect to the property, including, among other things, the responsibility for maintenance and repair of the property, the provision of adequate parking, maintenance of common areas, responsibility for capital improvements such as roof replacement and major structural 11 improvements and compliance with other affirmative covenants in the lease.
Government tenant agencies, we retain certain obligations with respect to the property, including, among other things, the responsibility for maintenance and repair of the property, the provision of adequate parking, maintenance of common areas, responsibility for capital improvements such as roof replacement and major structural improvements and compliance with other affirmative covenants in the lease.
In this regard, we note that in order for us to continue to qualify as a REIT, we are required to make annual distributions generally equal to at least 90% of our taxable income, computed without regard to the dividends paid deduction and excluding net capital gain.
In this regard, we note that in order for us to continue to qualify as a REIT, we are required to make 20 annual distributions generally equal to at least 90% of our taxable income, computed without regard to the dividends paid deduction and excluding net capital gain.
In addition, payments of principal and interest made to service our debts may leave us with insufficient cash to make distributions necessary to meet the distribution requirements imposed on REITs under the Code. 21 Risks Related to Our Common Stock The market price and trading volume of our common stock may be volatile.
In addition, payments of principal and interest made to service our debts may leave us with insufficient cash to make distributions necessary to meet the distribution requirements imposed on REITs under the Code. Risks Related to Our Common Stock The market price and trading volume of our common stock may be volatile.
As a result, we depend on distributions and other payments from our operating partnership and our other subsidiaries in order to satisfy our financial obligations and make payments to our investors. The ability of our subsidiaries to make such distributions and other payments depends on their earnings and cash flow and may be subject to statutory or contractual limitations.
As a result, we depend on distributions and other payments from our operating 16 partnership and our other subsidiaries in order to satisfy our financial obligations and make payments to our investors. The ability of our subsidiaries to make such distributions and other payments depends on their earnings and cash flow and may be subject to statutory or contractual limitations.
However, we can provide such non-customary services to tenants or share in the revenue from such services if we do so through a TRS, though income earned through the TRS will be subject to corporate income taxes. We earn fees from certain tenant improvement services and other non-customary services provided to our tenants.
However, we can provide such non-customary services to 26 tenants or share in the revenue from such services if we do so through a TRS, though income earned through the TRS will be subject to corporate income taxes. We earn fees from certain tenant improvement services and other non-customary services provided to our tenants.
These investments may also have the potential risk of impasses on decisions such as a sale, because neither we, nor the partner, would have full control over the joint venture. In addition, we may in certain circumstances 16 be liable for the actions of our partners.
These investments may also have the potential risk of impasses on decisions such as a sale, because neither we, nor the partner, would have full control over the joint venture. In addition, we may in certain circumstances be liable for the actions of our partners.
The procedures for settling a dispute with a U.S. Government tenant or seeking to evict a U.S. Government tenant in default may be costly, time consuming and may divert the attention of management from the operations of our business as the process requires first appealing to a U.S.
The procedures for settling a dispute with a U.S. Government tenant 11 or seeking to evict a U.S. Government tenant in default may be costly, time consuming and may divert the attention of management from the operations of our business as the process requires first appealing to a U.S.
Accordingly, in the event that actions taken in good faith by any of our directors or officers impede the performance of our company, your ability to recover damages from such director or officer will be limited with respect to 18 directors and may be limited with respect to officers.
Accordingly, in the event that actions taken in good faith by any of our directors or officers impede the performance of our company, your ability to recover damages from such director or officer will be limited with respect to directors and may be limited with respect to officers.
In addition, 22 repurchases of our common stock pursuant to our share repurchase program could affect our stock price and increase its volatility. The existence of our share repurchase program could cause our stock price to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our stock.
In addition, repurchases of our common stock pursuant to our share repurchase program could affect our stock price and increase its volatility. The existence of our share repurchase program could cause our stock price to be higher than it would be in the absence of such a program and could potentially reduce the market liquidity for our stock.
Declines in the value of the underlying properties may prevent us from realizing an amount equal to our investment upon foreclosure or other remedies even if we make substantial improvements or repairs to maximize such properties' investment potential.
Declines in the value of the underlying properties may prevent us from realizing an amount equal to our 15 investment upon foreclosure or other remedies even if we make substantial improvements or repairs to maximize such properties' investment potential.
Government agency to occupy all or a portion of the leased property. The recent change in the Administration of the U.S. Government may also add uncertainty to future plans for the structure, mission, or leasing requirements of any one of our U.S. Government tenant agencies.
Government agency to occupy all or a portion of the leased property. A change in the Administration of the U.S. Government may also add uncertainty to future plans for the structure, mission, or leasing requirements of any one of our U.S. Government tenant agencies.
Real estate investments are relatively illiquid, which may tend to limit our ability to react promptly to changes in economic or other market conditions. Our ability to dispose of assets in the future will depend on prevailing economic and market conditions.
Real estate investments are relatively illiquid and may limit our flexibility. Real estate investments are relatively illiquid, which may tend to limit our ability to react promptly to changes in economic or other market conditions. Our ability to dispose of assets in the future will depend on prevailing economic and market conditions.
In 15 addition, the total amount of costs and expenses that we may incur with respect to liabilities associated with acquired properties and entities may exceed our expectations, which may adversely affect our business, financial condition and results of operations.
In addition, the total amount of costs and expenses that we may incur with respect to liabilities associated with acquired properties and entities may exceed our expectations, which may adversely affect our business, financial condition and results of operations.
Government to perform its obligations under its leases or a failure to renew its leases upon expiration, including as part of ongoing cost-cutting initiatives undertaken by the new Administration, could cause interruptions in the receipt of lease revenue or result in vacancies, or both, which would reduce our revenue until the affected properties are leased, and could decrease the ultimate value of the affected property upon sale and have a material adverse effect on our business, financial condition and results of operations.
Government to perform its obligations under its leases or a failure to renew its leases upon expiration, including as part of ongoing cost-cutting initiatives undertaken by the Administration, could cause interruptions in the receipt of lease revenue or result in 10 vacancies, or both, which would reduce our revenue until the affected properties are leased, and could decrease the ultimate value of the affected property upon sale and have a material adverse effect on our business, financial condition and results of operations.
Changes to tax laws (which changes may have retroactive application) could adversely affect our stockholders or us. In recent years, many such changes have been made and changes are likely to continue to occur in the future.
Changes to tax laws (which changes may have retroactive 27 application) could adversely affect our stockholders or us. In recent years, many such changes have been made and changes are likely to continue to occur in the future.
As a result, the 23 amount available for distribution to holders of our common stock would be reduced for the year or years involved, and we would no longer be required to make distributions to our stockholders.
As a result, the amount available for distribution to holders of our common stock would be reduced for the year or years involved, and we would no longer be required to make distributions to our stockholders.
Under current law, Section 1031 exchanges only apply to real property and do not apply to any 26 related personal property transferred with the real property.
Under current law, Section 1031 exchanges only apply to real property and do not apply to any related personal property transferred with the real property.
This section contains forward looking statements. You should refer to the explanation of the qualifications and limitations on forward-looking statements beginning on page 1. Risks Related to our Business and Operations We depend on the U.S. Government and its agencies for over 90% of our revenues and any failure by the U.S.
This section contains forward looking statements. You should refer to the explanation of the qualifications and limitations on forward-looking statements beginning on page 1. Risks Related to our Business and Operations We depend on the U.S. Government and its agencies for approximately 90% of our revenues and any failure by the U.S.
Although we will monitor the aggregate value of the securities of such TRSs and intend to conduct our affairs so that such securities will represent less than 20% of the value of our total assets, there can be no assurance that we will be able to comply with the TRS limitation in all market conditions.
Although we will monitor the aggregate value of the securities of such TRSs and intend to conduct our affairs so that such securities will represent less than 25% of the value of our total assets, there can be no assurance that we will be able to comply with the TRS limitation in all market conditions.
We are exposed to risks associated with property development and redevelopment, including new developments for anticipated tenant agencies and build-to-suit renovations for existing tenant agencies. As of December 31, 2024, we had two properties under development. We intend to continue to engage in development and redevelopment activities with respect to our properties, including build-to-suit renovations for existing U.S.
We are exposed to risks associated with property development and redevelopment, including new developments for anticipated tenant agencies and build-to-suit renovations for existing tenant agencies. As of December 31, 2025, we had three properties under development. We intend to continue to engage in development and redevelopment activities with respect to our properties, including build-to-suit renovations for existing U.S.
Tenants occupying approximately 5.8% of our leased square feet and contributing approximately 5.2% of our annualized lease income (in each case, as of December 31, 2024) currently have exercisable rights to terminate their leases before the stated soft-term of their lease expires. For fiscal policy reasons, security concerns or other reasons, some or all of our U.S.
Tenants occupying approximately 3.8% of our leased square feet and contributing approximately 3.9% of our annualized lease income (in each case, as of December 31, 2025) currently have exercisable rights to terminate their leases before the stated soft-term of their lease expires. For fiscal policy reasons, security concerns or other reasons, some or all of our U.S.
Government and its agencies to perform their obligations under their leases or renew their leases upon expiration could have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2024, our U.S. Government tenant agencies accounted for 93.3% of our annualized lease income. We expect that leases to agencies of the U.S.
Government and its agencies to perform their obligations under their leases or renew their leases upon expiration could have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2025, our U.S. Government tenant agencies accounted for 88.1% of our annualized lease income. We expect that leases to agencies of the U.S.
Certain mortgages on our properties contain customary negative covenants that, among other things, limit our ability, without the prior consent of the lender, to further mortgage the property and to reduce or change insurance coverage. As of December 31, 2024, we had $156.3 million of combined United States property mortgages and other secured debt.
Certain mortgages on our properties contain customary negative covenants that, among other things, limit our ability, without the prior consent of the lender, to further mortgage the property and to reduce or change insurance coverage. As of December 31, 2025, we had $151.7 million of combined United States property mortgages and other secured debt.
As of December 31, 2024, we had $249.1 million of outstanding consolidated debt that, pursuant to the documentation governing such debt, bears interest at variable rates, and we expect that we may also borrow additional money at variable interest rates 20 in the future.
As of December 31, 2025, we had $199.1 million of outstanding consolidated debt that, pursuant to the documentation governing such debt, bears interest at variable rates, and we expect that we may also borrow additional money at variable interest rates in the future.
If we were to fail to meet these obligations, then the applicable tenant could abate rent or terminate the applicable lease, which may result in a loss of capital invested and reduce our anticipated profits which, in turn, could have a material adverse effect on our business, financial condition and results of operations.
If we were to fail to meet our capital expenditure obligation for any reason, then the applicable tenant could abate rent or terminate the applicable lease, which may result in a loss of capital invested and reduce our anticipated profits which, in turn, could have a material adverse effect on our business, financial condition and results of operations.
Accordingly, our stockholders are not entitled to approve changes in our policies. Our rights and the rights of our stockholders to take action against our directors and officers are limited, which could limit your recourse in the event of actions that you do not believe are in your best interests.
Our rights and the rights of our stockholders to take action against our directors and officers are limited, which could limit your recourse in the event of actions that you do not believe are in your best interests.
Similarly, it may become more difficult for us to renew our leases with U.S. Government tenant agencies when they expire or to locate additional properties that are leased to U.S. Government tenant agencies in order to grow our business. Therefore, an increase in the amount of U.S.
Government-owned real estate at the expiration of their respective leases. Similarly, it may become more difficult for us to renew our leases with U.S. Government tenant agencies when they expire or to locate additional properties that are leased to U.S. Government tenant agencies in order to grow our business. Therefore, an increase in the amount of U.S.
As of December 31, 2024, we had total indebtedness of approximately $1.6 billion, including approximately $274.6 million outstanding under our $400.0 million senior unsecured revolving credit facility, which we refer to as our 2024 revolving credit facility, $174.5 million outstanding under our $200.0 million senior unsecured term loan facility, which we refer to as our 2018 term loan facility, $100.0 million outstanding under our $100.0 million senior unsecured term loan facility, which we refer to as our 2016 term loan facility, $175.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2017 senior unsecured notes, $275.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2019 senior unsecured notes, $250.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2021 senior unsecured notes and $200.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2024 senior unsecured notes.
As of December 31, 2025, we had total indebtedness of approximately $1.7 billion, including approximately $199.1 million outstanding under our $400.0 million senior unsecured revolving credit facility, which we refer to as our 2024 revolving credit facility, $200.0 million outstanding under our $200.0 million senior unsecured term loan facility, which we refer to as our 2018 term loan facility, $100.0 million outstanding under our $100.0 million senior unsecured term loan facility, which we refer to as our 2016 term loan facility, $175.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2017 senior unsecured notes, $275.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2019 senior unsecured notes, $250.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2021 senior unsecured notes, $200.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2024 senior unsecured notes and $125.0 million of outstanding fixed rate, senior unsecured notes, which we refer to as our 2025 senior unsecured notes.
Government workforce; and • economic conditions that could cause an increase in our operating expenses, such as inflation, increases in property taxes (particularly as a result of increased local, state and national government budget deficits and debt and potentially reduced federal aid to state and local governments), utilities, insurance, compensation of on-site associates and routine maintenance. 9 Our properties are leased to a limited number of U.S.
Government workforce and government shutdowns; and • economic conditions that could cause an increase in our operating expenses, such as inflation, increases in property taxes (particularly as a result of increased local, state and national government budget deficits and debt and potentially reduced federal aid to state and local governments), utilities, insurance, compensation of on-site associates and routine maintenance.
In addition, risks beyond our control, such as weather, labor conditions, material shortages caused by supply chain disruptions, or inflationary price increases for materials, could lead to cost overruns and untimely completion of projects. On February 1, 2025, President Donald J.
In addition, risks beyond our control, such as weather, labor conditions, material shortages caused by supply chain disruptions, or inflationary price increases for materials, could lead to cost overruns and untimely completion of projects.
As of December 31, 2024, we had total indebtedness of approximately $1.6 billion including approximately $274.6 million outstanding under our revolving credit facility, $274.5 million outstanding in the aggregate under our 2018 term loan facility and our 2016 term loan facility and $900.0 million in the aggregate under our 2017 senior unsecured notes, 2019 senior unsecured notes, 2021 senior unsecured notes and 2024 senior unsecured notes.
As of December 31, 2025, we had total indebtedness of approximately $1.7 billion including approximately $199.1 million outstanding under our revolving credit facility, $300.0 million outstanding in the aggregate under our 2018 term loan facility and our 2016 term loan facility and $1.0 billion in the aggregate under our 2017 senior unsecured notes, 2019 senior unsecured notes, 2021 senior unsecured notes, 2024 senior unsecured notes and 2025 senior unsecured notes.
As of December 31, 2024, we had five interest rate swaps in place with an aggregate notional value of $300.0 million to mitigate our exposure to fluctuations in short term interest rates and fix the interest rate on our 2016 term loan facility, 2018 term loan facility and a portion of our revolving credit facility.
As of December 31, 2025, we had six interest rate swaps in place with an aggregate notional value of $300.0 million to mitigate our exposure to fluctuations in short term interest rates and fix the interest rate on our 2016 term loan facility and 2018 term loan facility.
Government tenant agencies, and a change to any of these agencies’ missions could have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2024, three of our U.S.
Our properties are leased to a limited number of U.S. Government tenant agencies, and a change to any of these agencies’ missions could have a material adverse effect on our business, financial condition and results of operations. As of December 31, 2025, three of our U.S.
Government tenant agencies, the Department of Veteran Affairs (“VA”), Federal Bureau of Investigation (“FBI”), and Drug Enforcement Administration (“DEA”), accounted for an aggregate of approximately 44.9% of our total leased square feet and an aggregate of approximately 51.4% of our total annualized lease income. Each U.S.
Government tenant agencies, the Department of Veteran Affairs (“VA”), Federal Bureau of Investigation (“FBI”), and Drug Enforcement Administration (“DEA”), accounted for an aggregate of approximately 42.0% of our total leased square feet and an aggregate of approximately 47.3% of our total annualized lease income. Each U.S.
Dividends payable by REITs, however, are generally not eligible for the reduced rates and therefore are taxable as ordinary income when paid to such stockholders. However, current law provides a deduction of 20% of a non-corporate taxpayer’s ordinary REIT dividends with such deduction scheduled to expire for taxable years beginning after December 31, 2025.
Dividends payable by REITs, however, are generally not eligible for the reduced rates and therefore are taxable as ordinary income when paid to such stockholders. However, current law provides a deduction of 20% of a non-corporate taxpayer’s ordinary REIT dividends.
The costs and loss of revenue associated with a failure to comply with U.S. Government contractor requirements could have a material adverse effect on our properties, business or financial condition.
Government and bar us from entering into future leases and other contracts with the U.S. Government. The costs and loss of revenue associated with a failure to comply with U.S. Government contractor requirements could have a material adverse effect on our properties, business or financial condition.
Debt investments could cause us to incur expenses, which could adversely affect our results of operations. We have made a construction loan to a third party developer to fund a property under development and may make similar loans in the future.
Debt and preferred equity investments could cause us to incur expenses, which could adversely affect our results of operations. We have made a construction loan to a third party developer to fund a property that was under development and may make mezzanine or similar loans in the future or obtain preferred equity interests in projects owned by third party sponsors.
Although the reduced U.S. federal income tax rate applicable to dividend income from regular corporate dividends does not adversely affect the taxation of REITs or dividends paid by REITs, the more favorable rates applicable to regular corporate dividends could cause investors who are individuals, trusts and estates or are otherwise sensitive to these lower rates to perceive investments in REITs to be relatively less attractive than investments in the stock of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our common stock. 24 A portion of our distributions may be treated as a return of capital for U.S. federal income tax purposes, which could reduce the basis of a stockholder’s investment in shares of our common stock and, if greater than such basis, may trigger taxable gain.
Although the reduced U.S. federal income tax rate applicable to dividend income from regular corporate dividends does not adversely affect the taxation of REITs or dividends paid by REITs, the more favorable rates applicable to regular corporate dividends could cause investors who are individuals, trusts and estates or are otherwise sensitive to these lower rates to perceive investments in REITs to be relatively less attractive than investments in the stock of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our common stock.
We currently have a concentration of properties located in California and are exposed to changes in market conditions and natural disasters in this state. Eighteen of our properties are located in California, accounting for approximately 14.2% of our total leased square feet and approximately 18.7% of our total annualized lease income as of December 31, 2024.
We currently have a concentration of properties located in California and are exposed to changes in market conditions and natural disasters in this state. Seventeen of our properties are located in California, accounting for approximately 13.3% of our total leased square feet and approximately 17.1% of our total annualized lease income as of December 31, 2025.
In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, or adversely impact our ability to attract officers and directors. 27 We rely on information technology (“IT”) in our operations and any material failure, inadequacy, interruption or security failure of that technology could harm our business.
In addition, certain litigation or the resolution of certain litigation may affect the availability or cost of some of our insurance coverage, which could adversely impact our results of operations and cash flow, expose us to increased risks that would be uninsured, or adversely impact our ability to attract officers and directors.
Any delay or failure on our part to identify, negotiate, finance and consummate such acquisitions in a timely manner and on favorable terms, or operate acquired properties to meet our financial expectations, could impede our growth and have an adverse effect on us, including our financial condition, results of operations, cash flow and the market value of our securities. 12 Certain of our properties are leased to private tenants and we may be unable to collect balances due from private tenants that file for bankruptcy protection.
Any delay or failure on our part to identify, negotiate, finance and consummate such acquisitions in a timely manner and on favorable terms, or operate acquired properties to meet our financial expectations, could impede our growth and have an adverse effect on us, including our financial condition, results of operations, cash flow and the market value of our securities.
Borrowers may contest our enforcement actions, including, foreclosure, assignment in lieu of foreclosure or other remedies. In addition, borrowers may seek bankruptcy protection against such enforcement and/or bring claims for lender liability in response to actions to enforce their obligations to us.
In addition, borrowers or sponsors may seek bankruptcy protection against such enforcement and/or bring claims for lender liability in response to actions to enforce their obligations to us.
If a private tenant or lease guarantor files for bankruptcy, we will become a creditor of such entity, but may not be able to collect all pre-bankruptcy amounts owed by that party.
Certain of our properties are leased to private tenants and we may be unable to collect balances due from private tenants that file for bankruptcy protection. If a private tenant or lease guarantor files for bankruptcy, we will become a creditor of such entity, but may not be able to collect all pre-bankruptcy amounts owed by that party.
In addition, the impact of a prolonged government shutdown on federal personnel resources could hinder our ability to renew expiring leases, initiate or complete tenant agency build-out and construction projects and otherwise interfere with our ongoing partnership with the U.S. Government, any of which could have a material adverse effect on our business, financial condition and results of operations.
In addition, the impact of a prolonged government shutdown on federal personnel resources could hinder our ability to renew expiring leases, initiate or complete tenant agency build-out and construction projects, obtain timely agency reviews, approvals or decisions and otherwise interfere with our ongoing partnership with the U.S.
No prediction can be made about the effect that future sales of our common stock will have on the market price of our shares of common stock. In addition, future sales by us of our common stock may be dilutive to existing stockholders.
No prediction can be made about the effect that future sales of our common stock will have on the market price of our shares of common stock.
Unfavorable market and economic conditions in the United States and globally could adversely affect occupancy levels, rental rates, rent collections, operating expenses and the overall market value of our assets and have a material adverse effect on our business, financial condition and results of operations.
These risks could result in substantial unanticipated delays or expenses and could prevent the initiation or the completion of development and renovation activities, any of which could have a material adverse effect on our business, financial condition and results of operations. 9 Unfavorable market and economic conditions in the United States and globally could adversely affect occupancy levels, rental rates, rent collections, operating expenses and the overall market value of our assets and have a material adverse effect on our business, financial condition and results of operations.
A corporation of which a TRS directly or indirectly owns more than 35% of the voting power or value of the stock will automatically be treated as a TRS. Overall, no more than 20% of the value of a REIT’s assets may consist of securities of one or more TRSs.
A corporation of which a TRS directly or indirectly owns more than 35% of the voting power or value of the stock will automatically be treated as a TRS.
As of December 31, 2024, leases representing approximately 15.4% of our total annualized lease income and approximately 15.8% of the square footage of the properties in our portfolio will expire by the end of 2027.
As of December 31, 2025, leases representing approximately 14.7% of our total annualized lease income and approximately 17.5% of the square footage of the properties in our portfolio will expire by the end of 2028.
Our board of directors may change our policies without stockholder approval. Our policies, including any policies with respect to investments, leverage, financing, growth, debt and capitalization, are determined by our board of directors or those committees or officers to whom our board of directors may delegate such authority.
Our policies, including any policies with respect to investments, leverage, financing, growth, debt and capitalization, are determined by our board of directors or those committees or officers to whom our board of directors may delegate such authority. Our board of directors also establishes the amount of any dividends or other distributions that we may pay to our stockholders.
Our board of directors also establishes the amount of any dividends or other distributions that we may pay to our stockholders. Our board of directors or the committees or officers to which such decisions are delegated have the ability to amend or revise these and our other policies at any time without stockholder vote.
Our board of directors or the committees or officers to which such decisions are delegated have the ability to amend or revise these and our other policies at any time without stockholder vote. Accordingly, our stockholders are not entitled to approve changes in our policies.
Any future pandemic, epidemic or outbreak of any highly infectious disease, including the emergence of additional COVID-19 variants, may cause significant disruptions to the U.S. and global economy and could contribute to significant volatility and negative pressure in financial markets.
Any future pandemic, epidemic or outbreak of any highly infectious disease could have an adverse effect on our business, financial condition, results of operations and cash flows. Any future pandemic, epidemic or outbreak of any highly infectious disease may cause significant disruptions to the U.S. and global economy and could contribute to significant volatility and negative pressure in financial markets.
In addition, securities (other than qualified real estate assets) issued by one or more of our TRSs cannot represent more than 20% of the value of our total assets at the close of any calendar quarter.
In addition, for taxable years beginning after December 31, 2025, securities (other than qualified real estate assets) issued by one or more of our TRSs cannot represent more than 25% of the value of our total assets at the close of any calendar quarter (relaxed from 20% for any calendar quarter in a taxable year starting before January 1, 2026).
An increase in the amount of U.S. Government-owned real estate may adversely affect us. If there is a large increase in the amount of U.S. Government-owned real estate, certain U.S. Government tenant agencies may relocate from our properties to U.S. Government-owned real estate at the expiration of their respective leases.
Government, any of which could have a material adverse effect on our business, financial condition and results of operations. An increase in the amount of U.S. Government-owned real estate may adversely affect us. If there is a large increase in the amount of U.S. Government-owned real estate, certain U.S. Government tenant agencies may relocate from our properties to U.S.
We may decide to change our investment strategy without stockholder approval and seek to acquire and develop properties that are not leased to U.S. Government agencies that serve essential functions. Any change to our investment strategy, including the making of investments outside our target market, could have a material adverse effect on our business, financial condition and results of operations.
Any change to our investment strategy, including the 18 making of investments outside our target market, could have a material adverse effect on our business, financial condition and results of operations. Our board of directors may change our policies without stockholder approval.
We believe our existing properties are in substantial compliance with the ADA and that we will not be required to make substantial capital 14 expenditures to address the requirements of the ADA.
We believe our existing properties are in substantial compliance with the ADA and that we will not be required to make substantial capital expenditures to address the requirements of the ADA. However, the obligation to make readily achievable accommodations is an ongoing one, and we will continue to assess our properties and to make alterations as appropriate in this respect.
To the extent that we enter into other types of hedging transactions, the income from those transactions is likely to be treated as non-qualifying income for purposes of both gross income tests. As a result of these rules, we may need to limit our use of otherwise advantageous hedging techniques or implement those hedges through a “Taxable REIT Subsidiary” (“TRS”).
To the extent that we enter into other types of hedging transactions, the income from those transactions is likely to be treated as non-qualifying income for purposes of both gross income tests.
A material failure to comply with these laws could subject us to fines, penalties and damages, cause us to be in default of our leases and other contracts with the U.S. Government and bar us from entering into future leases and other contracts with the U.S. Government.
These laws regulate how we conduct business and require us to administer various compliance programs and to impose compliance responsibilities on some of our contractors. A material failure to comply with these laws could subject us to fines, penalties and damages, cause us to be in default of our leases and other contracts with the U.S.
We may continue, in a manner consistent with our qualification as a REIT, to seek to manage our exposure to interest rate volatility by using interest rate hedging arrangements.
In addition, we entered into two $50.0 million treasury lock agreements to fix the Treasury rate of our 2025 series B senior notes. We may continue, in a manner consistent with our qualification as a REIT, to seek to manage our exposure to interest rate volatility by using interest rate hedging arrangements.
Risks Related to Our Status as a REIT Failure to qualify or to maintain our qualification as a REIT would have significant adverse consequences to the value of our common stock. We elected to be a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015.
We elected to be a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015.
The costs or liabilities incurred as a result of environmental issues may affect our ability to make distributions to our stockholders and could have a material adverse effect on our business, financial condition and results of operations. Failure to comply with U.S. Government contractor requirements could result in substantial costs and loss of substantial revenue.
In addition, the presence of significant mold or other airborne contaminants could expose us to liability from our tenants or others if property damage or personal injury occurs. 14 The costs or liabilities incurred as a result of environmental issues may affect our ability to make distributions to our stockholders and could have a material adverse effect on our business, financial condition and results of operations.
As a lessor of properties leased to the U.S. Government, we are subject to compliance with a wide variety of complex legal requirements applicable to U.S. Government contractors. These laws regulate how we conduct business and require us to administer various compliance programs and to impose compliance responsibilities on some of our contractors.
Failure to comply with U.S. Government contractor requirements could result in substantial costs and loss of substantial revenue. As a lessor of properties leased to the U.S. Government, we are subject to compliance with a wide variety of complex legal requirements applicable to U.S. Government contractors.
Some of these instruments may have some recourse to their borrower, while others may be limited to the collateral securing the loan. In the event of a default under these obligations, if applicable, we may elect to take possession of the collateral securing these interests.
Some of these instruments may have some recourse to their borrower or sponsor, while others may be limited to the collateral securing the loan or the right to remove the sponsor as manager of the venture in preferred equity investments.
Removed
These risks could result in substantial unanticipated delays or expenses and could prevent the initiation or the completion of development and renovation activities, any of which could have a material adverse effect on our business, financial condition and results of operations.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+0 added−0 removed11 unchanged
Biggest changeWe have implemented information security processes designed to identify, assess and manage risks from cybersecurity threats to our systems and data. 28 These processes are supported by a multidisciplinary team, including our legal department, management and third-party information security service providers, as described further below.
Biggest changeThese processes are supported by a multidisciplinary team, including our legal department, management and third-party information security service providers, as described further below.
We leverage internal and external resources to monitor and evaluate our threat environment, including the use of our third-party managed service provider, manual and automated tools, threat intelligence reporting and analysis services, security scans and testing and internal and external audits.
We leverage internal and external resources to monitor and 29 evaluate our threat environment, including the use of our third-party managed service provider, manual and automated tools, threat intelligence reporting and analysis services, security scans and testing and internal and external audits.
The contracted Chief Technology Officer has approximately 16 years of information technology experience, including nine years in the finance and real estate sectors, and our Head of Internal Audit, has approximately 31 years of audit experience, including 21 years in the real estate and financial services sectors.
The contracted Chief Technology Officer has approximately 17 years of information technology experience, including ten years in the finance and real estate sectors, and our Head of Internal Audit, has approximately 32 years of audit experience, including 22 years in the real estate and financial services sectors.
Item 1C. Cybersecurity Risk management and strategy We rely on IT networks and systems to process, transmit and store electronic information and to manage or support our business.
Item 1C. Cybersecurity Risk management and strategy We rely on IT networks and systems to process, transmit and store electronic information and to manage or support our business. We have implemented information security processes designed to identify, assess and manage risks from cybersecurity threats to our systems and data.

Item 2. Properties

Properties — owned and leased real estate

27 edited+2 added−0 removed3 unchanged
Biggest changeGovernment Leased Properties (Cont.) VA - Indianapolis Brownsburg, IN OC 2041 80,000 2,980,495 0.9 % 37.26 ICE - Albuquerque Albuquerque, NM SF 2027 71,100 2,841,105 0.8 % 39.96 JUD - El Centro El Centro, CA C 2034 43,345 2,814,240 0.8 % 64.93 SSA - Charleston Charleston, WV O 2029 110,000 $ 2,805,454 0.8 % $ 25.50 DEA - Dallas Lab Dallas, TX L 2038 49,723 2,798,999 0.8 % 56.29 DEA - Pleasanton Pleasanton, CA L 2035 42,480 2,779,748 0.8 % 65.44 DEA - Upper Marlboro Upper Marlboro, MD L 2037 50,978 2,761,612 0.8 % 54.17 NARA - Broomfield Broomfield, CO W 2032 161,730 2,690,321 0.8 % 16.63 TREAS - Birmingham Birmingham, AL O 2029 83,676 2,627,473 0.8 % 31.40 DHS - Atlanta (7) Atlanta, GA SF 2031 - 2038 91,185 2,579,815 0.7 % 28.29 USAO - Louisville Louisville, KY SF 2031 60,000 2,540,094 0.7 % 42.33 JUD - Charleston Charleston, SC C 2040 52,339 2,518,931 0.7 % 48.13 JUD - Jackson Jackson, TN C 2043 75,043 2,403,192 0.7 % 32.02 IRS - Ogden Ogden, UT W 2029 100,000 2,352,291 0.7 % 23.52 CBP - Savannah Savannah, GA L 2033 35,000 2,289,518 0.7 % 65.41 DEA - Dallas Dallas, TX SF 2041 71,827 2,272,075 0.7 % 31.63 Various GSA - Cleveland (8) Brooklyn Heights, OH O 2028 - 2040 61,384 2,245,513 0.6 % 36.58 NWS - Kansas City Kansas City, MO SF 2033 94,378 2,155,680 0.6 % 22.84 DEA - Santa Ana Santa Ana, CA SF 2029 39,905 2,019,910 0.6 % 50.62 NPS - Omaha Omaha, NE SF 2029 62,772 1,891,182 0.5 % 30.13 DEA - North Highlands Sacramento, CA SF 2033 37,975 1,885,075 0.5 % 49.64 GSA - Clarksburg Clarksburg, WV O 2039 70,495 1,880,219 0.5 % 26.67 VA - Golden Golden, CO W 2026 56,753 1,782,038 0.5 % 31.40 JUD - Newport News Newport News, VA C 2033 35,005 1,676,464 0.5 % 47.89 ICE - Orlando Orlando, FL SF 2040 49,420 1,668,211 0.5 % 33.76 USCG - Martinsburg Martinsburg, WV SF 2027 59,547 1,624,577 0.5 % 27.28 JUD - Aberdeen Aberdeen, MS C 2025 46,979 1,577,074 0.5 % 33.57 VA - Charleston North Charleston, SC W 2040 97,718 1,504,645 0.4 % 15.40 DEA - Albany Albany, NY SF 2042 31,976 1,407,704 0.4 % 44.02 USAO - Springfield Springfield, IL SF 2038 43,600 1,391,454 0.4 % 31.91 JUD - Council Bluffs Council Bluffs, IA C 2041 28,900 1,367,675 0.4 % 47.32 DEA - Riverside Riverside, CA SF 2032 34,354 1,321,949 0.4 % 38.48 DEA - Birmingham Birmingham, AL SF 2038 35,616 1,256,899 0.4 % 35.29 HSI - Orlando Orlando, FL SF 2036 27,840 1,075,437 0.3 % 38.63 SSA - Dallas Dallas, TX SF 2035 27,200 1,069,445 0.3 % 39.32 JUD - South Bend South Bend, IN C 2027 30,119 802,002 0.2 % 26.63 ICE - Louisville Louisville, KY SF 2036 17,420 657,841 0.2 % 37.76 DEA - San Diego San Diego, CA W 2032 16,100 561,172 0.2 % 34.86 DEA - Bakersfield Bakersfield, CA SF 2038 9,800 493,373 0.1 % 50.34 SSA - San Diego San Diego, CA SF 2032 10,059 452,386 0.1 % 44.97 ICE - Otay San Diego, CA O 2027 7,434 261,222 0.1 % 35.14 Subtotal 7,858,905 $ 278,371,939 80.4 % $ 35.42 31 Wholly Owned State and Local Government Leased Property Wake County III - Cary (9) Cary, NC O 2027 / 2034 113,722 3,555,902 1.0 % $ 31.27 CA - Anaheim Anaheim, CA O 2033 / 2034 95,273 3,364,379 1.0 % $ 35.31 Wake County II - Cary Cary, NC O 2034 98,340 2,953,908 0.9 % $ 30.04 Wake County I - Cary Cary, NC O 2034 75,401 2,254,676 0.7 % $ 29.90 Subtotal 382,736 $ 12,128,865 3.6 % $ 31.69 Wholly Owned Privately Leased Property Northrop Grumman - Dayton Beavercreek, OH SF 2029 99,246 2,579,090 0.7 % $ 25.99 Northrop Grumman - Aurora Aurora, CO SF 2032 104,136 2,368,386 0.7 % $ 22.74 501 East Hunter Street - Lummus Corporation Lubbock, TX W 2028 70,078 412,024 0.1 % $ 5.88 Subtotal 273,460 $ 5,359,500 1.5 % $ 19.60 Wholly Owned Properties Total / Weighted Average 8,515,101 295,860,304 85.5 % $ 34.75 Property Name Location Property Type (1) Tenant Lease Expiration Year (2) Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income Annualized Lease Income per Leased Square Foot Unconsolidated Real Estate Venture U.S.
Biggest changeGovernment Leased Properties (Cont.) VA - Orange Orange, CT OC 2034 56,330 $ 2,978,003 0.8 % $ 52.87 VA - Indianapolis Brownsburg, IN OC 2041 80,000 2,973,092 0.8 % 37.16 ICE - Albuquerque Albuquerque, NM SF 2027 71,100 2,870,422 0.8 % 40.37 SSA - Charleston Charleston, WV O 2029 110,000 2,852,584 0.7 % 25.93 JUD - El Centro El Centro, CA C 2034 43,345 2,843,404 0.7 % 65.60 DEA - Dallas Lab Dallas, TX L 2038 49,723 2,823,425 0.7 % 56.78 DEA - Dallas Dallas, TX SF 2041 71,827 2,818,351 0.7 % 39.24 DEA - Pleasanton Pleasanton, CA L 2035 42,480 2,796,831 0.7 % 65.84 DEA - Upper Marlboro Upper Marlboro, MD L 2037 50,978 2,776,446 0.7 % 54.46 DHS - Burlington Williston, VT SF 2031 74,549 2,738,632 0.7 % 36.74 NARA - Broomfield Broomfield, CO W 2032 161,730 2,697,002 0.7 % 16.68 TREAS - Birmingham Birmingham, AL O 2029 83,676 2,608,152 0.7 % 31.17 DHS - Atlanta (7) Atlanta, GA SF 2031 - 2038 91,185 2,594,650 0.7 % 28.45 USAO - Louisville Louisville, KY SF 2031 60,000 2,555,102 0.7 % 42.59 JUD - Charleston Charleston, SC C 2040 52,339 2,536,155 0.7 % 48.46 JUD - Jackson Jackson, TN C 2043 75,043 2,418,462 0.6 % 32.23 IRS - Ogden Ogden, UT W 2029 100,000 2,373,651 0.6 % 23.74 Various GSA - Cleveland (8) Brooklyn Heights, OH O 2028 - 2040 61,384 2,349,367 0.6 % 38.27 CBP - Savannah Savannah, GA L 2033 35,000 2,306,216 0.6 % 65.89 NWS - Kansas City Kansas City, MO SF 2033 94,378 2,171,933 0.6 % 23.01 DEA - Santa Ana Santa Ana, CA SF 2029 39,905 2,036,945 0.5 % 51.04 ICE - Orlando Orlando, FL SF 2040 49,420 2,012,010 0.5 % 40.71 GSA - Clarksburg Clarksburg, WV O 2039 70,495 1,914,764 0.5 % 27.16 DEA - North Highlands Sacramento, CA SF 2033 37,975 1,891,896 0.5 % 49.82 JUD - Aberdeen Aberdeen, MS C 2040 45,194 1,890,909 0.5 % 41.84 DEA - Riverside Riverside, CA SF 2032 34,354 1,881,115 0.5 % 54.76 NPS - Omaha Omaha, NE SF 2029 62,772 1,873,659 0.5 % 29.85 VA - Golden Golden, CO W 2036 56,753 1,793,899 0.5 % 31.61 JUD - Newport News Newport News, VA C 2033 35,005 1,685,737 0.4 % 48.16 USCG - Martinsburg Martinsburg, WV SF 2027 59,547 1,641,350 0.4 % 27.56 VA - Charleston North Charleston, SC W 2040 97,718 1,525,436 0.4 % 15.61 USAO - Springfield Springfield, IL SF 2038 43,600 1,399,201 0.4 % 32.09 JUD - Council Bluffs Council Bluffs, IA C 2041 28,900 1,368,583 0.4 % 47.36 DEA - Birmingham Birmingham, AL SF 2038 35,616 1,266,291 0.3 % 35.55 DEA - Albany Albany, NY SF 2042 31,976 1,186,491 0.3 % 37.11 HSI - Orlando Orlando, FL SF 2036 27,840 1,117,020 0.3 % 40.12 SSA - Dallas Dallas, TX SF 2035 27,200 1,073,581 0.3 % 39.47 JUD - South Bend South Bend, IN C 2027 30,119 820,512 0.2 % 27.24 ICE - Louisville Louisville, KY SF 2036 17,420 769,984 0.2 % 44.20 32 Property Name Location Property Type (1) Tenant Lease Expiration Year (2) Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income Annualized Lease Income per Leased Square Foot Wholly Owned U.S.
While some of our leases are contractually subject to early termination, we do not believe that our tenant agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the average age of these properties based on the date the property was built or renovated-to-suit where applicable (approximately 19.5 years), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties.
While some of our leases are contractually subject to early termination, we do not believe that our tenant agencies are likely to terminate these leases early given the build-to-suit features at the properties subject to the leases, the average age of these properties based on the date the property was built or renovated-to-suit where applicable (approximately 20.5 years), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties.
Government tenant agencies, four operating properties leased to tenant agencies of a U.S. state or local government and three operating properties leased entirely to private tenants. In addition, we wholly owned two properties under development that we expect to encompass approximately 0.2 million leased square feet upon completion.
Government tenant agencies, six operating properties leased to tenant agencies of a U.S. state or local government and four operating properties leased entirely to private tenants. In addition, we wholly owned three properties under development that we expect to encompass approximately 0.2 million leased square feet upon completion.
The following table provides information about the tenants that leased our properties as of December 31, 2024, and includes tenants of properties held by our unconsolidated joint venture: Tenant (1) Weighted Average Remaining Lease Term (2) Leased Square Feet Percentage of Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income U.S.
The following table provides information about the tenants that leased our properties as of December 31, 2025, and includes tenants of properties held by our unconsolidated joint venture: Tenant (1) Weighted Average Remaining Lease Term (2) Leased Square Feet Percentage of Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income U.S.
We calculate annualized lease income as 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. 29 The table set forth below shows information relating to the properties we owned, or in which we had an ownership interest, at December 31, 2024, and it includes properties held by the JV: Property Name Location Property Type (1) Tenant Lease Expiration Year (2) Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income Annualized Lease Income per Leased Square Foot Wholly Owned U.S.
We calculate annualized lease income as 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. 30 The table set forth below shows information relating to the properties we owned, or in which we had an ownership interest, at December 31, 2025, and it includes properties held by the JV: Property Name Location Property Type (1) Tenant Lease Expiration Year (2) Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income Annualized Lease Income per Leased Square Foot Wholly Owned U.S.
Government agencies. Our U.S. Government tenant agencies include a number of the U.S. Government’s largest and most essential agencies. As of December 31, 2024 our operating properties were 97% leased by 59 tenants.
Government agencies. Our U.S. Government tenant agencies include a number of the U.S. Government’s largest and most essential agencies. As of December 31, 2025 our operating properties were 97% leased by 64 tenants.
(8) A private tenant occupies 11,402 leased square feet. (9) A private tenant occupies 37,858 leased square feet. (10) We own 53.0% of the property through the JV. (11) Asset is subject to a ground lease where the JV is the lessee. 32 Our assets are located throughout the United States.
(8) A private tenant occupies 11,402 leased square feet. (9) Private tenants occupy 20,299 leased square feet. (10) A private tenant occupies 37,858 leased square feet. (11) We own 53.0% of the property through the JV. (12) Asset is subject to a ground lease where the JV is the lessee. 34 Our assets are located throughout the United States.
Item 2. Pr operties As of December 31, 2024, we wholly owned 90 operating properties and ten operating properties through the JV in the United States encompassing approximately 9.7 million leased square feet (9.2 million pro rata), including 92 operating properties that were leased to U.S.
Item 2. Pr operties As of December 31, 2025, we wholly owned 93 operating properties and ten operating properties through the JV in the United States encompassing approximately 10.4 million leased square feet (9.8 million pro rata), including 93 operating properties that were leased to U.S.
As of December 31, 2024, our operating properties were 97% leased with a weighted average annualized lease income per leased square foot of $35.60 ($35.22 pro rata) and a weighted average age of approximately 15.7 years based on the date the property was built or renovated-to-suit, where applicable.
As of December 31, 2025, our operating properties were 97% leased with a weighted average annualized lease income per leased square foot of $36.74 ($36.45 pro rata) and a weighted average age of approximately 16.4 years based on the date the property was built or renovated-to-suit, where applicable.
(2) The year of lease expiration does not include renewal options. (3) Private tenants occupy 86,860 leased square feet. (4) Private tenants occupy 36,610 leased square feet. (5) A state government tenant occupies 14,274 leased square feet. (6) Private tenants occupy 48,523 leased square feet. (7) A private tenant occupies 17,373 leased square feet.
(2) The year of lease expiration does not include renewal options. (3) Private tenants occupy 101,627 leased square feet. (4) Private tenants occupy 12,259 leased square feet. (5) A state government tenant occupies 14,274 leased square feet. (6) Private tenants occupy 54,677 leased square feet. (7) A private tenant occupies 17,373 leased square feet.
As of December 31, 2024, 8 leases occupying approximately 5.8% of our leased square feet and contributing approximately 5.2% of our annualized lease income have exercisable rights to terminate their leases before the stated term of their lease expires. 35 Information about our development property as of December 31, 2024 is set forth in the table below: Property Name Location Tenant Property Type Lease Term Estimated Leased Square Feet FDA - Atlanta Atlanta, GA Food and Drug Administration L (1) 20-year 162,000 JUD - Flagstaff Flagstaff, AZ Judiciary of the U.S.
As of December 31, 2025, 7 leases occupying 38 approximately 3.8% of our leased square feet and contributing approximately 3.9% of our annualized lease income have exercisable rights to terminate their leases before the stated term of their lease expires. 39 Information about our development properties as of December 31, 2025 is set forth in the table below: Property Name Location Tenant Property Type Lease Term Estimated Leased Square Feet JUD - Flagstaff Flagstaff, AZ Judiciary of the U.S.
Government C (2) 20-year 50,777 Total 212,777 (1) L=Laboratory (2) C=Courthouse Item 3. Legal Proceedings We are not currently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us. Item 4. Mine Saf ety Disclosure Not applicable. 36 PART II
Legal Proceedings We are not currently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us. Item 4. Mine Saf ety Disclosure Not applicable. 40 PART II
Probation Office (“USPO”) 14.1 6,621 0.1 % 176,606 0.1 % U.S.
Probation Office (“USPO”) 13.1 6,621 0.1 % 179,851 0.0 % U.S.
Joint Staff Command (“JSC”) 3.4 403,737 4.1 % 8,503,831 2.5 % Federal Aviation Administration (“FAA”) 1.8 188,768 1.9 % 7,789,151 2.2 % Social Security Administration (“SSA”) 12.7 266,176 2.7 % 7,027,170 2.0 % Patent and Trademark Office (“PTO”) 8.0 192,185 2.0 % 5,525,502 1.6 % Federal Emergency Management Agency (“FEMA”) 10.0 190,546 2.0 % 4,683,980 1.4 % Patent and Trademark Office (“PTO”) 13.8 210,373 2.2 % 4,652,852 1.3 % U.S.
Joint Staff Command (“JSC”) 2.4 403,737 3.9 % 8,556,070 2.2 % Federal Aviation Administration (“FAA”) 0.8 188,768 1.8 % 7,925,559 2.1 % Bureau of the Fiscal Service (“BFS”) 11.7 266,176 2.6 % 7,027,164 1.8 % Social Security Administration (“SSA”) 7.0 192,185 1.9 % 5,604,729 1.5 % Patent and Trademark Office (“PTO”) 9.0 190,546 1.8 % 5,351,518 1.4 % Federal Emergency Management Agency (“FEMA”) 12.8 210,373 2.0 % 4,668,336 1.2 % U.S.
Forest Service (“USFS”) 1.5 98,720 1.0 % 3,553,436 1.0 % Customs and Border Protection (“CBP”) 10.7 64,737 0.7 % 3,226,943 0.9 % National Archives and Records Administration (“NARA”) 7.4 161,730 1.7 % 2,690,321 0.8 % National Weather Service (“NWS”) 9.0 94,378 1.0 % 2,155,680 0.6 % U.S.
Forest Service (“USFS”) 5.5 98,720 1.0 % 3,699,413 1.0 % Department of Transportation (“DOT”) 13.4 116,046 1.1 % 3,402,561 0.9 % Customs and Border Protection (“CBP”) 9.7 64,737 0.6 % 3,247,340 0.9 % National Archives and Records Administration (“NARA”) 6.4 161,730 1.6 % 2,697,002 0.7 % National Weather Service (“NWS”) 8.0 94,378 0.9 % 2,171,933 0.6 % U.S.
Government Leased Properties VA - Loma Linda Loma Linda, CA OC 2036 327,614 $ 16,850,124 4.9 % $ 51.43 USCIS - Kansas City (3) Lee's Summit, MO O 2025 - 2042 403,178 10,007,859 2.9 % 24.82 JSC - Suffolk Suffolk, VA SF 2028 403,737 8,503,831 2.5 % 21.06 Various GSA - Chicago Des Plaines, IL O 2026 188,768 7,789,151 2.2 % 41.26 IRS - Fresno Fresno, CA O 2033 180,481 6,972,352 2.0 % 38.63 Various GSA - Portland (4) Portland, OR O 2025 - 2039 205,478 6,927,716 2.0 % 33.72 Various GSA - Buffalo (5) Buffalo, NY O 2025 - 2039 273,678 6,893,503 2.0 % 25.19 FBI - Salt Lake Salt Lake City, UT SF 2032 169,542 6,789,358 2.0 % 40.05 VA - San Jose San Jose, CA OC 2038 90,085 5,819,576 1.7 % 64.60 EPA - Lenexa Lenexa, KS O 2027 169,585 5,796,626 1.7 % 34.18 FBI - Tampa Tampa, FL SF 2040 138,000 5,314,469 1.5 % 38.51 FBI - San Antonio San Antonio, TX SF 2025 148,584 5,206,053 1.5 % 35.04 FDA - Alameda Alameda, CA L 2039 69,624 4,966,674 1.4 % 71.34 FBI / DEA - El Paso El Paso, TX SF 2028 203,683 4,727,462 1.4 % 23.21 PTO - Arlington Arlington, VA SF 2035 190,546 4,683,980 1.4 % 24.58 FEMA - Tracy Tracy, CA W 2038 210,373 4,652,852 1.3 % 22.12 TREAS - Parkersburg Parkersburg, WV O 2041 182,500 4,399,697 1.3 % 24.11 FDA - Lenexa Lenexa, KS L 2040 59,690 4,333,387 1.3 % 72.60 ICE - Dallas (6) Irvine, TX SF 2032 / 2040 129,046 4,090,572 1.2 % 31.70 FBI - Pittsburgh Pittsburgh, PA SF 2027 100,054 4,079,780 1.2 % 40.78 VA - South Bend Mishakawa, IN OC 2032 86,363 4,026,610 1.2 % 46.62 FBI - New Orleans New Orleans, LA SF 2029 137,679 3,968,050 1.1 % 28.82 FBI - Omaha Omaha, NE SF 2044 112,196 3,959,898 1.1 % 35.29 USCIS - Lincoln Lincoln, NE O 2025 137,671 3,904,639 1.1 % 28.36 VA - Mobile Mobile, AL OC 2033 79,212 3,798,371 1.1 % 47.95 FBI - Birmingham Birmingham, AL SF 2042 96,278 3,692,036 1.1 % 38.35 FBI - Knoxville Knoxville, TN SF 2025 99,130 3,629,035 1.0 % 36.61 FBI - Albany Albany, NY SF 2036 69,476 3,591,446 1.0 % 51.69 EPA - Kansas City Kansas City, KS L 2043 55,833 3,589,765 1.0 % 64.29 USFS II - Albuquerque Albuquerque, NM O 2026 98,720 3,553,436 1.0 % 36.00 DOT - Lakewood Lakewood, CO O 2039 116,046 3,416,355 1.0 % 29.44 ICE - Charleston North Charleston, SC SF 2027 65,124 3,373,468 1.0 % 51.80 VA - Chico Chico, CA OC 2034 51,647 3,341,875 1.0 % 64.71 FBI - Richmond Richmond, VA SF 2041 96,607 3,334,875 1.0 % 34.52 JUD - Del Rio Del Rio, TX C 2041 89,880 3,291,972 1.0 % 36.63 FBI - Mobile Mobile, AL SF 2029 76,112 3,262,209 0.9 % 42.86 FBI - Little Rock Little Rock, AR SF 2041 102,377 3,237,405 0.9 % 31.62 DEA - Sterling Sterling, VA L 2038 57,692 3,222,788 0.9 % 55.86 DEA - Vista Vista, CA L 2035 52,293 3,147,780 0.9 % 60.20 USCIS - Tustin Tustin, CA O 2034 66,818 3,142,255 0.9 % 47.03 VA - Orange Orange, CT OC 2034 56,330 2,998,139 0.9 % 53.22 30 Property Name Location Property Type (1) Tenant Lease Expiration Year (2) Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income Annualized Lease Income per Leased Square Foot Wholly Owned U.S.
Government Leased Properties VA - Loma Linda Loma Linda, CA OC 2036 327,614 $ 16,933,040 4.5 % $ 51.69 USCIS - Kansas City (3) Lee's Summit, MO O 2027 - 2042 417,945 10,405,359 2.8 % 24.90 JSC - Suffolk Suffolk, VA SF 2028 403,737 8,556,070 2.3 % 21.19 Various GSA - Chicago Des Plaines, IL O 2026 188,768 7,925,559 2.1 % 41.99 IRS - Fresno Fresno, CA O 2033 180,481 6,825,521 1.8 % 37.82 FBI - Salt Lake Salt Lake City, UT SF 2032 169,542 6,810,941 1.8 % 40.17 Various GSA - Portland (4) Portland, OR O 2027-2039 175,214 5,913,484 1.6 % 33.75 Various GSA - Buffalo (5) Buffalo, NY O 2026 - 2039 251,236 5,868,873 1.5 % 23.36 VA - San Jose San Jose, CA OC 2038 90,085 5,815,230 1.5 % 64.55 EPA - Lenexa Lenexa, KS O 2027 169,585 5,776,312 1.5 % 34.06 FBI - Tampa Tampa, FL SF 2040 138,000 5,385,768 1.4 % 39.03 PTO - Arlington Arlington, VA SF 2035 190,546 5,351,518 1.4 % 28.09 FBI - San Antonio San Antonio, TX SF 2025 148,584 5,234,538 1.4 % 35.23 FDA - Alameda Alameda, CA L 2039 69,624 5,025,603 1.3 % 72.18 FBI / DEA - El Paso El Paso, TX SF 2028 203,683 4,919,619 1.3 % 24.15 USCIS - Lincoln Lincoln, NE O 2026 137,671 4,901,961 1.3 % 35.61 FEMA - Tracy Tracy, CA W 2038 210,373 4,668,336 1.2 % 22.19 TREAS - Parkersburg Parkersburg, WV O 2041 182,500 4,419,012 1.2 % 24.21 FBI - Mobile Mobile, AL SF 2029 76,112 4,350,464 1.1 % 57.16 FDA - Lenexa Lenexa, KS L 2040 59,690 4,286,243 1.1 % 71.81 ICE - Dallas (6) Irvine, TX SF 2032 / 2040 135,200 4,219,659 1.1 % 31.21 FBI - Pittsburgh Pittsburgh, PA SF 2027 100,054 4,153,110 1.1 % 41.51 VA - South Bend Mishawaka, IN OC 2032 86,363 4,121,021 1.1 % 47.72 FBI - New Orleans New Orleans, LA SF 2029 137,679 4,005,179 1.1 % 29.09 FBI - Omaha Omaha, NE SF 2044 112,196 3,981,452 1.0 % 35.49 VA - Mobile Mobile, AL OC 2033 79,212 3,875,061 1.0 % 48.92 FDA - Atlanta Atlanta, GA L 2045 162,000 3,851,158 1.0 % 23.77 USFS II - Albuquerque Albuquerque, NM O 2031 98,720 3,699,413 1.0 % 37.47 FBI - Albany Albany, NY SF 2036 69,476 3,593,055 0.9 % 51.72 FBI - Birmingham Birmingham, AL SF 2042 96,278 3,583,919 0.9 % 37.22 EPA - Kansas City Kansas City, KS L 2043 55,833 3,578,198 0.9 % 64.09 DOT - Lakewood Lakewood, CO O 2039 116,046 3,402,561 0.9 % 29.32 VA - Chico Chico, CA OC 2034 51,647 3,369,589 0.9 % 65.24 ICE - Charleston North Charleston, SC SF 2027 65,124 3,367,934 0.9 % 51.72 FBI - Richmond Richmond, VA SF 2041 96,607 3,360,155 0.9 % 34.78 FBI - Knoxville Knoxville, TN SF 2028 99,130 3,330,123 0.9 % 33.59 DEA - Sterling Sterling, VA L 2038 57,692 3,282,886 0.9 % 56.90 FBI - Little Rock Little Rock, AR SF 2041 102,377 3,262,031 0.9 % 31.86 JUD - Del Rio Del Rio, TX C 2041 89,880 3,197,759 0.8 % 35.58 DEA - Vista Vista, CA L 2035 52,293 3,191,895 0.8 % 61.04 USCIS - Tustin Tustin, CA O 2034 66,818 3,176,673 0.8 % 47.54 31 Property Name Location Property Type (1) Tenant Lease Expiration Year (2) Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income Annualized Lease Income per Leased Square Foot Wholly Owned U.S.
Citizenship and Immigration Services (“USCIS”) 11.8 520,807 5.4 % 15,012,669 4.3 % Immigration and Customs Enforcement (“ICE”) 8.8 313,837 3.2 % 12,186,554 3.5 % Internal Revenue Service (“IRS”) 7.2 333,334 3.4 % 10,626,239 3.1 % Environmental Protection Agency (“EPA”) 6.7 225,418 2.3 % 9,386,391 2.7 % Food and Drug Administration (“FDA”) 15.2 129,314 1.3 % 9,300,061 2.7 % U.S.
Citizenship and Immigration Services (“USCIS”) 11.1 520,807 5.0 % 16,087,985 4.2 % Immigration and Customs Enforcement (“ICE”) 7.3 388,386 3.7 % 15,481,464 4.1 % Food and Drug Administration (“FDA”) 17.4 291,314 2.8 % 13,163,004 3.5 % Internal Revenue Service (“IRS”) 6.1 359,661 3.5 % 11,875,840 3.1 % Environmental Protection Agency (“EPA”) 5.7 225,418 2.2 % 9,354,510 2.5 % U.S.
Government Department of Veteran Affairs (“VA”) 14.1 2,251,131 23.2 % $ 96,083,994 27.8 % Federal Bureau of Investigation (“FBI”) 9.0 1,498,607 15.5 % 53,767,038 15.5 % Drug Enforcement Administration (“DEA”) 10.7 607,290 6.2 % 27,941,589 8.1 % Judiciary of the U.S. (“JUD”) 12.3 401,610 4.1 % 16,451,550 4.8 % U.S.
Government Department of Veteran Affairs (“VA”) 13.4 2,251,131 21.7 % $ 96,703,027 25.3 % Federal Bureau of Investigation (“FBI”) 8.2 1,498,607 14.4 % 54,858,296 14.4 % Drug Enforcement Administration (“DEA”) 9.7 607,290 5.9 % 29,080,670 7.6 % Judiciary of the U.S. (“JUD”) 13.1 399,825 3.9 % 16,761,521 4.4 % U.S.
Government Leased Properties VA - Phoenix (10) Phoenix, AZ OC 2042 257,294 $ 10,781,681 3.1 % $ 41.90 VA - San Antonio (10) San Antonio, TX OC 2041 226,148 9,308,441 2.7 % 41.16 VA - Jacksonville (10) Jacksonville, FL OC 2043 193,100 7,372,700 2.1 % 38.18 VA - Chattanooga (10) Chattanooga, TN OC 2035 94,566 4,385,607 1.3 % 46.38 VA - Lubbock (10)(11) Lubbock, TX OC 2040 120,916 4,251,052 1.2 % 35.16 VA - Marietta (10) Marietta, GA OC 2041 76,882 3,958,402 1.1 % 51.49 VA - Birmingham (10) Irondale, AL OC 2041 77,128 3,192,361 0.9 % 41.39 VA - Corpus Christi (10) Corpus Christi, TX OC 2042 69,276 2,947,359 0.9 % 42.55 VA - Columbus (10) Columbus, GA OC 2042 67,793 2,917,896 0.8 % 43.04 VA - Lenexa (10) Lenexa, KS OC 2041 31,062 1,349,757 0.4 % 43.45 1,214,165 $ 50,465,256 14.5 % $ 41.56 Total / Weighted Average 9,729,266 $ 346,325,560 100.0 % $ 35.60 Total / Weighted Average at Easterly's Share 9,158,607 $ 322,606,890 $ 35.22 (1) OC=Outpatient Clinic; SF=Specialized Facility; O=Office; C=Courthouse; L=Laboratory; W=Warehouse.
Government Leased Properties VA - Phoenix (11) Phoenix, AZ OC 2042 257,294 $ 10,836,673 2.8 % $ 42.12 VA - San Antonio (11) San Antonio, TX OC 2041 226,148 9,234,141 2.4 % 40.83 VA - Jacksonville (11) Jacksonville, FL OC 2043 193,100 7,684,911 2.0 % 39.80 VA - Chattanooga (11) Chattanooga, TN OC 2035 94,566 4,325,285 1.1 % 45.74 VA - Lubbock (11)(12) Lubbock, TX OC 2040 120,916 4,261,542 1.1 % 35.24 VA - Marietta (11) Marietta, GA OC 2041 76,882 3,862,436 1.0 % 50.24 VA - Birmingham (11) Irondale, AL OC 2041 77,128 3,232,824 0.8 % 41.92 VA - Corpus Christi (11) Corpus Christi, TX OC 2042 69,276 3,004,175 0.8 % 43.37 VA - Columbus (11) Columbus, GA OC 2042 67,793 2,938,600 0.8 % 43.35 VA - Lenexa (11) Lenexa, KS OC 2041 31,062 1,336,514 0.4 % 43.03 1,214,165 $ 50,717,101 13.2 % $ 41.77 Total / Weighted Average 10,380,158 $ 381,351,950 100.0 % $ 36.74 Total / Weighted Average at Easterly's Share 9,809,499 $ 357,514,913 $ 36.45 (1) OC=Outpatient Clinic; SF=Specialized Facility; O=Office; C=Courthouse; L=Laboratory; W=Warehouse.
Department of Agriculture (“USDA”) 3.1 60,257 0.6 % 1,909,389 0.6 % National Park Service (“NPS”) 4.5 62,772 0.6 % 1,891,182 0.5 % General Services Administration - Other 0.7 55,807 0.6 % 1,714,806 0.5 % U.S.
Department of Agriculture (“USDA”) 2.1 60,257 0.6 % 1,880,319 0.5 % National Park Service (“NPS”) 3.5 62,772 0.6 % 1,873,659 0.5 % U.S.
Coast Guard (“USCG”) 3.0 59,547 0.6 % 1,624,577 0.5 % National Oceanic and Atmospheric Administration (“NOAA”) 6.7 33,403 0.3 % 1,426,062 0.4 % Transportation Security Administration (“TSA”) 9.0 44,075 0.5 % 1,161,242 0.3 % U.S.
Coast Guard (“USCG”) 2.0 59,547 0.6 % 1,641,350 0.4 % National Oceanic and Atmospheric Administration (“NOAA”) 5.7 33,403 0.3 % 1,411,161 0.4 % Transportation Security Administration (“TSA”) 8.0 44,075 0.4 % 1,172,916 0.3 % Homeland Security Investigations (“HSI”) 10.2 27,840 0.3 % 1,117,020 0.3 % Small Business Administration (“SBA”) 13.6 44,969 0.4 % 1,022,945 0.3 % U.S.
Marshals Service (“USMS”) 2.1 1,054 0.0 % 50,583 0.0 % Department of Labor (“DOL”) 14.1 574 0.0 % 15,316 0.0 % Subtotal 10.3 8,858,028 91.1 % $ 322,842,215 93.3 % 34 Tenant (1) Weighted Average Remaining Lease Term (2) Leased Square Feet Percentage of Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income State and Local Government Tenants Wake County Public School System 9.5 249,605 2.6 % $ 7,605,214 2.2 % State of California Employee Development Department 9.1 65,133 0.7 % $ 2,296,631 0.7 % State of California Department of Industrial Relations 8.8 30,140 0.3 % 1,067,748 0.3 % New York State Court of Claims 1.7 14,274 0.1 % 391,875 0.1 % Subtotal 9.1 359,152 3.7 % $ 11,361,468 3.3 % Private Tenants Northrup Grumman Systems Corporation 5.9 203,382 2.1 % 4,947,476 1.4 % Other Private Tenants 4.2 58,869 0.6 % 1,673,709 0.5 % Jacobs Engineering Group, Inc. 3.0 37,858 0.4 % 1,159,272 0.3 % St.
Marshals Service (“USMS”) 1.1 1,054 0.0 % 48,551 0.0 % Department of Labor (“DOL”) 13.1 574 0.0 % 15,598 0.0 % Subtotal 9.8 9,083,330 87.6 % $ 335,289,114 88.1 % 37 Tenant (1) Weighted Average Remaining Lease Term (2) Leased Square Feet Percentage of Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income State and Local Government Tenants District of Columbia Government 12.2 238,062 2.3 % $ 15,505,639 4.0 % Wake County Public School System 8.5 249,605 2.4 % 7,425,131 1.9 % State of California Employee Development Department 8.1 65,133 0.6 % 2,296,631 0.6 % State of California Department of Industrial Relations 7.8 30,140 0.3 % 1,067,748 0.3 % State of New Mexico Health Care Authority 11.0 32,534 0.3 % 962,059 0.3 % New York State Court of Claims 0.7 14,274 0.1 % 390,934 0.1 % Subtotal 9.8 629,748 6.0 % $ 27,648,142 7.2 % Private Tenants York Space Systems 6.0 138,125 1.3 % $ 5,012,523 1.2 % Northrup Grumman Systems Corporation 4.9 203,382 2.0 % 4,997,547 1.3 % Other Private Tenants 3.8 67,081 0.6 % 2,521,521 0.7 % CVS Health 4.6 41,462 0.4 % 1,397,942 0.4 % Jacobs Engineering Group, Inc. 2.0 37,858 0.4 % 1,133,460 0.3 % HUB International Midwest Limited 6.8 29,074 0.3 % 849,191 0.2 % St.
Luke's Health System 2.0 32,043 0.3 % 924,624 0.3 % HUB International Midwest Limited 7.8 29,074 0.3 % 841,506 0.2 % CVS Health 0.4 39,690 0.4 % 776,210 0.2 % Providence Health & Services 0.7 21,643 0.2 % 747,258 0.2 % Pate Rehabilitation Endeavors, LLC 7.1 19,449 0.2 % 639,798 0.2 % Lummus Corporation 3.6 70,078 0.7 % 412,024 0.1 % Subtotal 4.4 512,086 5.2 % $ 12,121,877 3.4 % Total / Weighted Average 10.0 9,729,266 100.0 % $ 346,325,560 100.0 % (1) If a property is leased to multiple tenants the weighted average remaining lease term, leased square feet, annualized lease income and percentage of total annualized lease income have been allocated to the respective tenant agency.
Luke's Health System 2.0 32,043 0.3 % 816,235 0.2 % Pate Rehabilitation Endeavors, LLC 6.1 25,603 0.2 % 805,639 0.2 % University of Central Missouri 6.5 22,374 0.2 % 469,429 0.1 % Lummus Corporation 2.6 70,078 0.7 % 411,207 0.1 % Subtotal 4.6 667,080 6.4 % $ 18,414,694 4.7 % Total / Weighted Average 9.5 10,380,158 100.0 % $ 381,351,950 100.0 % (1) If a property is leased to multiple tenants the weighted average remaining lease term, leased square feet, annualized lease income and percentage of total annualized lease income have been allocated to the respective tenant agency.
The following table sets forth the geographic diversification of our operating properties, by market, based on the GSA’s definition of regions, as of December 31, 2024, and it includes properties held by the JV: Location Market Number of Properties Number of Leases Leased Square Feet Percentage of Total Leased Square Feet Percent Leased Annualized Lease Income Percentage of Total Annualized Lease Income State California Pacific Rim 18 22 1,385,660 14.2 % 97 % $ 64,846,942 18.7 % Texas (1) Greater Southwest 11 15 1,206,361 12.4 % 100 % 40,375,454 11.7 % Virginia National Capital 5 5 783,587 8.1 % 100 % 21,421,938 6.2 % Alabama Southeast Sunbelt 6 6 448,022 4.6 % 100 % 17,829,349 5.1 % Florida Southeast Sunbelt 4 4 408,360 4.2 % 100 % 15,430,817 4.5 % Kansas The Heartland 4 4 316,170 3.2 % 96 % 15,069,535 4.4 % Missouri The Heartland 2 6 497,556 5.1 % 84 % 12,163,539 3.5 % New York Northeast & Caribbean 3 8 375,130 3.9 % 100 % 11,892,653 3.4 % Georgia Southeast Sunbelt 4 6 270,860 2.8 % 100 % 11,745,631 3.4 % Arizona Pacific Rim 1 1 257,294 2.6 % 100 % 10,781,681 3.1 % West Virginia Mid-Atlantic 4 4 422,542 4.3 % 99 % 10,709,947 3.1 % Tennessee Southeast Sunbelt 3 3 268,739 2.8 % 100 % 10,417,834 3.0 % Colorado Rocky Mountain 4 4 438,665 4.5 % 100 % 10,257,100 3.0 % Nebraska The Heartland 3 3 312,639 3.2 % 100 % 9,755,719 2.8 % Illinois Great Lakes 2 2 232,368 2.4 % 84 % 9,180,605 2.7 % Utah Rocky Mountain 2 2 269,542 2.8 % 100 % 9,141,649 2.6 % North Carolina Southeast Sunbelt 3 4 287,463 3.0 % 100 % 8,764,486 2.5 % Indiana Great Lakes 3 3 196,482 2.0 % 100 % 7,809,107 2.3 % South Carolina Southeast Sunbelt 3 3 215,181 2.2 % 89 % 7,397,044 2.1 % Oregon Northwest Arctic 1 15 205,478 2.1 % 92 % 6,927,716 2.0 % New Mexico Greater Southwest 3 2 169,820 1.7 % 65 % 6,394,541 1.8 % Ohio Great Lakes 2 4 160,630 1.7 % 100 % 4,824,603 1.4 % Pennsylvania Mid-Atlantic 1 1 100,054 1.0 % 100 % 4,079,780 1.2 % Louisiana Greater Southwest 1 1 137,679 1.4 % 100 % 3,968,050 1.1 % Arkansas Greater Southwest 1 1 102,377 1.1 % 100 % 3,237,405 0.9 % Kentucky Southeast Sunbelt 2 2 77,420 0.8 % 100 % 3,197,935 0.9 % Connecticut New England 1 1 56,330 0.6 % 100 % 2,998,139 0.9 % Maryland National Capital 1 1 50,978 0.5 % 100 % 2,761,612 0.8 % Mississippi Southeast Sunbelt 1 1 46,979 0.5 % 100 % 1,577,074 0.5 % Iowa The Heartland 1 1 28,900 0.3 % 100 % 1,367,675 0.4 % Total / Weighted Average 100 135 9,729,266 100.0 % 97 % $ 346,325,560 100.0 % Market Southeast Sunbelt 26 29 2,023,024 20.7 % 99 % 76,360,170 22.0 % Pacific Rim 19 23 1,642,954 16.8 % 97 % 75,628,623 21.8 % Greater Southwest 16 19 1,616,237 16.6 % 95 % 53,975,450 15.6 % The Heartland 10 14 1,155,265 11.9 % 91 % 38,356,468 11.1 % National Capital 6 6 834,565 8.6 % 100 % 24,183,550 7.0 % Great Lakes 7 9 589,480 6.1 % 93 % 21,814,315 6.3 % Rocky Mountain 6 6 708,207 7.3 % 100 % 19,398,749 5.6 % Mid-Atlantic 5 5 522,596 5.4 % 99 % 14,789,727 4.3 % Northeast & Caribbean 3 8 375,130 3.9 % 100 % 11,892,653 3.4 % Northwest Arctic 1 15 205,478 2.1 % 92 % 6,927,716 2.0 % New England 1 1 56,330 0.6 % 100 % 2,998,139 0.9 % Total / Weighted Average 100 135 9,729,266 100.0 % 97 % $ 346,325,560 100.0 % 33 Our portfolio of operating properties has a stable tenant base that is diversified among U.S.
The following table sets forth the geographic diversification of our operating properties, by market, based on the GSA’s definition of regions, as of December 31, 2025, and it includes properties held by the JV: Location Market Number of Properties Number of Leases Leased Square Feet Percentage of Total Leased Square Feet Percent Leased Annualized Lease Income Percentage of Total Annualized Lease Income State California Pacific Rim 17 21 1,378,226 13.3 % 100 % $ 65,341,339 17.1 % Texas (1) Greater Southwest 11 15 1,212,515 11.7 % 100 % 41,197,997 10.8 % Virginia National Capital 5 5 783,587 7.6 % 100 % 22,236,366 5.9 % Alabama Southeast Sunbelt 6 6 448,022 4.3 % 100 % 18,916,711 5.0 % District of Columbia National Capital 1 6 284,688 2.7 % 100 % 18,600,116 4.9 % Florida Southeast Sunbelt 4 4 408,360 3.9 % 100 % 16,199,709 4.2 % Georgia Southeast Sunbelt 5 7 432,860 4.2 % 100 % 15,553,060 4.1 % Colorado Rocky Mountain 5 5 576,790 5.6 % 100 % 15,274,371 4.0 % Kansas The Heartland 4 4 316,170 3.0 % 96 % 14,977,267 3.9 % Missouri The Heartland 2 7 512,323 4.9 % 86 % 12,577,292 3.3 % Arizona Pacific Rim 1 1 257,294 2.5 % 100 % 10,836,673 2.8 % West Virginia Mid-Atlantic 4 4 422,542 4.1 % 99 % 10,827,710 2.8 % Nebraska The Heartland 3 3 312,639 3.0 % 100 % 10,757,072 2.8 % New York Northeast & Caribbean 3 8 352,688 3.4 % 94 % 10,648,419 2.8 % Tennessee Southeast Sunbelt 3 3 268,739 2.6 % 100 % 10,073,870 2.6 % Illinois Great Lakes 2 2 232,368 2.2 % 84 % 9,324,760 2.4 % Utah Rocky Mountain 2 2 269,542 2.6 % 100 % 9,184,592 2.4 % North Carolina Southeast Sunbelt 3 4 287,463 2.8 % 100 % 8,558,591 2.2 % Indiana Great Lakes 3 3 196,482 1.9 % 100 % 7,914,625 2.1 % New Mexico Greater Southwest 3 3 202,354 1.9 % 76 % 7,531,894 2.0 % South Carolina Southeast Sunbelt 3 3 215,181 2.1 % 89 % 7,429,525 1.9 % Oregon Northwest Arctic 1 13 175,214 1.7 % 78 % 5,913,484 1.6 % Ohio Great Lakes 2 4 160,630 1.5 % 100 % 4,978,528 1.3 % Pennsylvania Mid-Atlantic 1 1 100,054 1.0 % 100 % 4,153,110 1.1 % Louisiana Greater Southwest 1 1 137,679 1.3 % 100 % 4,005,179 1.1 % Kentucky Southeast Sunbelt 2 2 77,420 0.7 % 100 % 3,325,086 0.9 % 35 Arkansas Greater Southwest 1 1 102,377 1.0 % 100 % $ 3,262,031 0.9 % Connecticut New England 1 1 56,330 0.5 % 100 % 2,978,003 0.8 % Maryland National Capital 1 1 50,978 0.5 % 100 % 2,776,446 0.7 % Vermont New England 1 1 74,549 0.7 % 100 % 2,738,632 0.7 % Mississippi Southeast Sunbelt 1 1 45,194 0.4 % 100 % 1,890,909 0.5 % Iowa The Heartland 1 1 28,900 0.4 % 100 % 1,368,583 0.4 % Total / Weighted Average 103 143 10,380,158 100.0 % 97 % $ 381,351,950 100.0 % Market Southeast Sunbelt 27 30 2,183,239 21.0 % 99 % $ 81,947,461 21.5 % Pacific Rim 18 22 1,635,520 15.8 % 100 % 76,178,012 20.0 % Greater Southwest 16 20 1,654,925 15.9 % 96 % 55,997,101 14.7 % National Capital 7 12 1,119,253 10.8 % 100 % 43,612,928 11.4 % The Heartland 10 15 1,170,032 11.2 % 92 % 39,680,214 10.4 % Rocky Mountain 7 7 846,332 8.2 % 100 % 24,458,963 6.4 % Great Lakes 7 9 589,480 5.7 % 93 % 22,217,913 5.8 % Mid-Atlantic 5 5 522,596 5.0 % 99 % 14,980,820 3.9 % Northeast & Caribbean 3 8 352,688 3.4 % 94 % 10,648,419 2.8 % Northwest Arctic 1 13 175,214 1.7 % 78 % 5,913,484 1.6 % New England 2 2 130,879 1.3 % 100 % 5,716,635 1.5 % Total / Weighted Average 103 143 10,380,158 100.0 % 97 % $ 381,351,950 100.0 % 36 Our portfolio of operating properties has a stable tenant base that is diversified among U.S.
Army Corps of Engineers (“ACOE”) 0.1 39,320 0.4 % 1,147,120 0.3 % Small Business Administration (“SBA”) 14.6 44,969 0.5 % 1,114,230 0.3 % Homeland Security Investigations (“HSI”) 11.2 27,840 0.3 % 1,075,437 0.3 % Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) 8.2 23,775 0.2 % 734,101 0.2 % Federal Energy Regulatory Commission (“FERC”) 14.6 6,214 0.1 % 248,307 0.1 % Department of Energy (“DOE”) 8.3 4,846 0.0 % 187,782 0.1 % U.S.
Army Corps of Engineers (“ACOE”) 4.1 33,407 0.3 % 969,264 0.3 % General Services Administration - Other 9.7 33,365 0.3 % 831,614 0.2 % Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) 7.2 23,775 0.2 % 730,282 0.2 % Department of Energy (“DOE”) 7.3 4,846 0.0 % 277,782 0.1 % Federal Energy Regulatory Commission (“FERC”) 13.6 6,214 0.1 % 249,641 0.1 % U.S.
The following table sets forth a schedule of lease expirations for leases in place as of December 31, 2024, and includes leases in place for properties held by our unconsolidated joint venture: Year of Lease Expiration (1) Number of Leases Expiring Square Footage Expiring Percentage of Portfolio Square Footage Expiring Annualized Lease Income Expiring Percentage of Total Annualized Lease Income Expiring Annualized Lease Income per Leased Square Foot Expiring 2025 12 592,906 6.1 % 18,868,413 5.4 % 31.82 2026 6 394,832 4.1 % 14,600,404 4.2 % 36.98 2027 10 544,368 5.6 % 20,068,900 5.8 % 36.87 2028 11 802,397 8.2 % 17,652,883 5.1 % 22.00 2029 9 731,036 7.5 % 22,205,212 6.4 % 30.37 2030 1 1,536 0.0 % 59,478 0.0 % 38.72 2031 3 117,875 1.2 % 4,549,908 1.3 % 38.60 2032 10 683,660 7.0 % 20,993,082 6.1 % 30.71 2033 10 566,197 5.8 % 22,077,072 6.4 % 38.99 2034 10 507,793 5.2 % 21,315,514 6.2 % 41.98 Thereafter 53 4,786,666 49.3 % 183,934,694 53.1 % 38.43 Total / Weighted Average 135 9,729,266 100.0 % $ 346,325,560 100.0 % $ 35.60 (1) The year of lease expirations is pursuant to current contract terms.
The following table sets forth a schedule of lease expirations for leases in place as of December 31, 2025, and includes leases in place for properties held by our unconsolidated joint venture: Year of Lease Expiration (1) Number of Leases Expiring Square Footage Expiring Percentage of Portfolio Square Footage Expiring Annualized Lease Income Expiring Percentage of Total Annualized Lease Income Expiring Annualized Lease Income per Leased Square Foot Expiring 2026 4 344,916 3.3 % $ 13,784,542 3.6 % 39.96 2027 11 570,481 5.5 % 20,821,832 5.5 % 36.50 2028 13 906,740 8.7 % 21,451,549 5.6 % 23.66 2029 10 757,363 7.3 % 24,918,878 6.5 % 32.90 2030 5 68,400 0.7 % 1,855,232 0.5 % 27.12 2031 7 438,648 4.2 % 16,745,256 4.4 % 38.17 2032 11 712,188 6.9 % 22,196,450 5.8 % 31.17 2033 10 566,197 5.5 % 22,157,650 5.8 % 39.13 2034 10 507,793 4.9 % 21,206,591 5.6 % 41.76 2035 7 440,450 4.2 % 17,570,724 4.6 % 39.89 Thereafter 55 5,066,982 48.8 % 198,643,246 52.1 % 39.20 Total / Weighted Average 143 10,380,158 100.0 % $ 381,351,950 100.0 % $ 36.74 (1) The year of lease expirations is pursuant to current contract terms.
Attorney Office (“USAO”) 9.9 110,776 1.1 % 4,122,947 1.2 % Department of Transportation (“DOT”) 13.7 123,480 1.3 % 3,677,577 1.1 % U.S.
Attorney Office (“USAO”) 8.9 110,776 1.1 % 4,149,219 1.1 % U.S.
Added
Government Leased Properties (Cont.) DEA - San Diego San Diego, CA W 2032 16,100 $ 565,018 0.1 % $ 35.09 DEA - Bakersfield Bakersfield, CA SF 2038 9,800 497,530 0.1 % 50.77 SSA - San Diego San Diego, CA SF 2032 10,059 458,334 0.1 % 45.56 Subtotal 8,054,450 $ 288,728,427 75.6 % $ 35.85 Wholly Owned State and Local Government Leased Property DC - Capitol Plaza (9) Washington, DC O 2026 - 2038 284,688 $ 18,600,116 5.0 % $ 65.34 Wake County III - Cary (10) Cary, NC O 2027 / 2034 113,722 3,495,842 0.9 % 30.74 CA - Anaheim Anaheim, CA O 2033 / 2034 95,273 3,364,379 0.9 % 35.31 Wake County II - Cary Cary, NC O 2034 98,340 2,840,676 0.7 % 28.89 Wake County I - Cary Cary, NC O 2034 75,401 2,222,073 0.6 % 29.47 NM - Albuquerque Albuquerque, NM O 2036 32,534 962,059 0.3 % 29.57 Subtotal 699,958 $ 31,485,145 8.4 % $ 44.98 Wholly Owned Privately Leased Property York Space Systems - Greenwood Village Greenwood Village, CO SF 2031 138,125 $ 5,012,523 1.4 % $ 36.29 Northrop Grumman - Dayton Beavercreek, OH SF 2029 99,246 2,629,161 0.7 % 26.49 Northrop Grumman - Aurora Aurora, CO SF 2032 104,136 2,368,386 0.6 % 22.74 501 East Hunter Street - Lummus Corporation Lubbock, TX W 2028 70,078 411,207 0.1 % 5.87 Subtotal 411,585 $ 10,421,277 2.8 % $ 25.32 Wholly Owned Properties Total / Weighted Average 9,165,993 $ 330,634,849 86.8 % $ 36.07 33 Property Name Location Property Type (1) Tenant Lease Expiration Year (2) Leased Square Feet Annualized Lease Income Percentage of Total Annualized Lease Income Annualized Lease Income per Leased Square Foot Unconsolidated Real Estate Venture U.S.
Added
Government C (1) 20-year 50,777 JUD - Medford Medford, OR Judiciary of the U.S. Government C (1) 20-year 40,035 FL - Fort Myers Fort Myers, FL Florida Department of Law Enforcement L (2) 25-year 64,000 Total 154,812 (1) C=Courthouse (2) L=Laboratory Item 3.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

2 edited+1 added−1 removed5 unchanged
Biggest changeThe graph covers the period from December 31, 2019 through December 31, 2024 and assumes that $100 was invested in our common stock and in each index on December 31, 2019 and that all dividends were reinvested.
Biggest changeThe graph covers the period from December 31, 2020 through December 31, 2025 and assumes that $100 was invested in our common stock and in each index on December 31, 2020 and that all dividends were reinvested. The information in this paragraph and the following performance graph are deemed to be furnished, not filed. Recent Sales of Unregistered Securities None.
Item 5. Market for Registrant’s Common Equity, Related Stoc kholder Matters and Issuer Purchases of Equity Securities Shares of our common stock are traded on the New York Stock Exchange under the symbol “DEA”. We had 31 stockholders of record of our common stock as of February 18, 2025.
Item 5. Market for Registrant’s Common Equity, Related Stoc kholder Matters and Issuer Purchases of Equity Securities Shares of our common stock are traded on the New York Stock Exchange under the symbol “DEA”. We had 35 stockholders of record of our common stock as of February 13, 2026.
Removed
The information in this paragraph and the following performance graph are deemed to be furnished, not filed. 37 Recent Sales of Unregistered Securities None. Recent Purchases of Equity Securities None. Item 6. Reserved
Added
Recent Purchases of Equity Securities None. 41 Item 6. Reserved

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

67 edited+27 added−24 removed50 unchanged
Biggest changeNo repurchases of shares of our common stock were made under the share repurchase program during the year ended December 31, 2024 . 43 Debt Indebtedness Outstanding The following table sets forth certain information with respect to our outstanding indebtedness as of December 31, 2024 (dollars in thousands): Principal Outstanding Interest Current Loan December 31, 2024 Rate (1) Maturity Revolving credit facility: 2024 revolving credit facility (2) $ 274,550 S + 145bps (3) June 2028 (4) Total revolving credit facility 274,550 Term loan facilities: 2016 term loan facility 100,000 5.31% (5) January 2025 (6) 2018 term loan facility 174,500 5.23% (7) July 2026 Total term loan facilities 274,500 Less: Total unamortized deferred financing fees (491 ) Total term loan facilities, net 274,009 Notes payable: 2017 series A senior notes 95,000 4.05% May 2027 2017 series B senior notes 50,000 4.15% May 2029 2017 series C senior notes 30,000 4.30% May 2032 2019 series A senior notes 85,000 3.73% September 2029 2019 series B senior notes 100,000 3.83% September 2031 2019 series C senior notes 90,000 3.98% September 2034 2021 series A senior notes 50,000 2.62% October 2028 2021 series B senior notes 200,000 2.89% October 2030 2024 series A senior notes 150,000 6.56% May 2033 2024 series B senior notes 50,000 6.56% August 2033 Total notes payable 900,000 Less: Total unamortized deferred financing fees (5,324 ) Total notes payable, net 894,676 Mortgage notes payable: USFS II - Albuquerque 9,624 4.46% (8) July 2026 ICE - Charleston 10,491 4.21% (8) January 2027 VA - Loma Linda 127,500 3.59% (8) July 2027 CBP - Savannah 8,683 3.40% (8) July 2033 Total mortgage notes payable 156,298 Less: Total unamortized deferred financing fees (579 ) Less: Total unamortized premium/discount (133 ) Total mortgage notes payable, net 155,586 Total debt $ 1,598,821 (1) The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums.
Biggest changeNo repurchases of shares of our common stock were made under the share repurchase program during the year ended December 31, 2025 . 47 Debt Indebtedness Outstanding The following table sets forth certain information with respect to our outstanding indebtedness as of December 31, 2025 (dollars in thousands): Principal Outstanding Interest Current Loan December 31, 2025 Rate (1)(2) Maturity Revolving credit facility: 2024 revolving credit facility (3) $ 199,050 S + 145 bps June 2028 (4) Total revolving credit facility 199,050 Term loan facilities: 2016 term loan facility 100,000 5.31% (5) January 2028 (6) 2018 term loan facility 200,000 5.09% (7) August 2028 (8) Total term loan facilities 300,000 Less: Total unamortized deferred financing fees (2,800 ) Total term loan facilities, net 297,200 Notes payable: 2017 series A senior notes 95,000 4.05% May 2027 2017 series B senior notes 50,000 4.15% May 2029 2017 series C senior notes 30,000 4.30% May 2032 2019 series A senior notes 85,000 3.73% September 2029 2019 series B senior notes 100,000 3.83% September 2031 2019 series C senior notes 90,000 3.98% September 2034 2021 series A senior notes 50,000 2.62% October 2028 2021 series B senior notes 200,000 2.89% October 2030 2024 series A senior notes 150,000 6.56% May 2033 2024 series B senior notes 50,000 6.56% August 2033 2025 series A senior notes 25,000 6.13% March 2030 2025 series B senior notes 100,000 6.33% (9) August 2033 Total notes payable 1,025,000 Less: Total unamortized deferred financing fees (6,116 ) Total notes payable, net 1,018,884 Mortgage notes payable: USFS II - Albuquerque 7,491 4.46% July 2026 ICE - Charleston 8,920 4.21% January 2027 VA - Loma Linda 127,500 3.59% July 2027 CBP - Savannah 7,789 3.40% July 2033 Total mortgage notes payable 151,700 Less: Total unamortized deferred financing fees (355 ) Less: Total unamortized premium/discount (154 ) Total mortgage notes payable, net 151,191 Total debt $ 1,666,325 (1) Effective interest rates are as follows: 2016 term loan facility 5.59%, 2018 term loan facility 5.53%, 2017 series A senior notes 4.15%, 2017 series B senior notes 4.23%, 2017 series C senior notes 4.37%, 2019 series A senior notes 3.82%, 2019 series B senior notes 3.91%, 2019 series C senior notes 4.04%, 2021 series A senior notes 2.74%, 2021 series B senior notes 2.99%, 2024 series A senior notes 6.74%, 2024 series B senior notes 6.73%, 2025 series A senior notes 6.36%, 2025 series B senior notes 6.51%, USFS II – Albuquerque 3.92%, ICE – Charleston 3.93%, VA – Loma Linda 3.78%, CBP – Savannah 4.12%.
Net cash generated in financing activities for the year ended December 31, 2024 included $200.0 million in note payable issuances, $195.6 million in net draws under the revolving credit facility, and $71.8 million in gross proceeds from issuance of shares of our common stock offset by $115.9 million in dividends, $64.3 million in mortgage debt repayment, $25.5 million in term loan repayments, $7.9 million in deferred financing costs and $0.9 million in the payment of deferred offering costs.
Net cash generated by financing activities for the year ended December 31, 2024 included $200.0 million in note payable issuances, $195.6 million in net draws under the revolving credit facility, and $71.8 million in gross proceeds from issuance of shares of our common stock offset by $115.9 million in dividends, $64.3 million in mortgage debt repayment, $25.5 million in term loan repayments, $7.9 million in deferred financing costs and $0.9 million in the payment of deferred offering costs.
A discussion of our significant accounting policies, which utilize these critical accounting estimates, can be found in Note 2, “Significant Accounting Policies,” of our consolidated financial statements. Real Estate Properties Acquired When we acquire properties, we allocate the purchase price to numerous tangible and intangible components.
A discussion of our significant accounting policies, which utilize these critical accounting estimates, can be found in Note 2, “Significant Accounting Policies,” of our consolidated financial statements. Real Estate Properties Acquired When we acquire real estate properties, we allocate the purchase price to numerous tangible and intangible components.
Our revenue also includes amounts due from tenants for real estate taxes, projects and other reimbursements. Real estate taxes over the base year are reimbursed by the tenant. Over 90% of our rental income comes from U.S. Government tenants. We expect that leases to agencies of the U.S.
Our revenue also includes amounts due from tenants for real estate taxes, projects and other reimbursements. Real estate taxes over the base year are reimbursed by the tenant. Approximately 90% of our rental income comes from U.S. Government tenants. We expect that leases to agencies of the U.S.
Management’s Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion of our results of operations and financial condition in conjunction with the audited consolidated financial statements and related notes thereto as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022 and the sections entitled “Risk Factors,” “Forward Looking Statements,” “Business,” and “Properties” contained elsewhere in this Annual Report on Form 10-K.
Management’s Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion of our results of operations and financial condition in conjunction with the audited consolidated financial statements and related notes thereto as of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023 and the sections entitled “Risk Factors,” “Forward Looking Statements,” “Business,” and “Properties” contained elsewhere in this Annual Report on Form 10-K.
Under the equity method of accounting, we initially recognize our investment at cost and subsequently adjust the carrying amount of the investment for our share of the earnings or losses, distributions received, and other-than-temporary impairments. 52 Our unconsolidated real estate venture is evaluated for impairment when conditions exist that may indicate that the decrease in the carrying amount of our investment has occurred and is other than temporary.
Under the equity method of accounting, we initially recognize our investment at cost and subsequently adjust the carrying amount of the investment for our share of the earnings or losses, distributions received, and other-than-temporary impairments. 55 Our unconsolidated real estate venture is evaluated for impairment when conditions exist that may indicate that the decrease in the carrying amount of our investment has occurred and is other than temporary.
We are an internally managed real estate investment trust, or REIT, focused primarily on the acquisition, development and management of Class A commercial properties that are leased to U.S. Government agencies that serve essential functions. We generate over 90% of our revenue by leasing our properties to such agencies, either directly or through the U.S.
We are an internally managed real estate investment trust, or REIT, focused primarily on the acquisition, development and management of Class A commercial properties that are leased to U.S. Government agencies that serve essential functions. We generate approximately 90% of our revenue by leasing our properties to such agencies, either directly or through the U.S.
For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned two properties under development that we expect will encompass approximately 0.2 million leased square feet upon completion.
For purposes of calculating percentage leased, we exclude from the denominator total square feet that was unleased and to which we attributed no value at the time of acquisition. In addition, we wholly owned three properties under development that we expect will encompass approximately 0.2 million leased square feet upon completion.
We do not believe inflation has had a material impact on our historical financial position or results of operations. 51 Critical Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions.
We do not believe inflation has had a material impact on our historical financial position or results of operations. 54 Critical Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions.
Liquidity and Capital Resources We anticipate that our cash flows from the sources listed below will provide adequate capital for the next 12 months for all anticipated uses, including all scheduled principal and interest payments on our outstanding indebtedness, current and anticipated tenant improvements, development activities at FDA – Atlanta and JUD – Flagstaff, planned and possible acquisitions of properties, stockholder distributions to maintain our qualification as a REIT, potential repurchases of common stock under our share repurchase program and other capital obligations associated with conducting our business.
Liquidity and Capital Resources We anticipate that our cash flows from the sources listed below will provide adequate capital for the next 12 months for all anticipated uses, including all scheduled principal and interest payments on our outstanding indebtedness, current and anticipated tenant improvements, development activities at JUD – Flagstaff, JUD – Medford and FL – Fort Myers, planned and possible acquisitions of properties, stockholder distributions to maintain our qualification as a REIT, potential repurchases of common stock under our share repurchase program and other capital obligations associated with conducting our business.
During the years ended December 31, 2024 and 2023, no other-than-temporary impairment related to our unconsolidated real estate venture was identified.
During the years ended December 31, 2025 and 2024, no other-than-temporary impairment related to our unconsolidated real estate venture was identified.
Although we may seek to cost-effectively manage our exposure to future rate increases through such means, a portion of our overall debt may at various times float at then current rates. Development Activities As of December 31, 2024, we had two properties under development.
Although we may seek to cost-effectively manage our exposure to future rate increases through such means, a portion of our overall debt may at various times float at then current rates. Development Activities As of December 31, 2025, we had three properties under development.
Unconsolidated Real Estate Venture We consolidate entities in which we have a controlling interest or are the primary beneficiary in a variable interest entity. From time to time, we may have off-balance sheet unconsolidated real estate ventures and other unconsolidated arrangements with varying structures. As of December 31, 2024, our investment in the JV was $316.5 million.
Unconsolidated Real Estate Venture We consolidate entities in which we have a controlling interest or are the primary beneficiary in a variable interest entity. From time to time, we may have off-balance sheet unconsolidated real estate ventures and other unconsolidated arrangements with varying structures. As of December 31, 2025, our investment in the JV was $304.7 million.
Government tenant agencies, four operating properties leased to tenant agencies of a U.S. state or local government and three operating properties that were entirely leased to private tenants. As of December 31, 2024, our operating properties were 97% leased.
Government tenant agencies, six operating properties leased to tenant agencies of a U.S. state or local government and four operating properties that were entirely leased to private tenants. As of December 31, 2025, our operating properties were 97% leased.
A change in any of the above key assumptions can materially change not only the presentation of acquired properties in our consolidated financial statements but also our reported results of operations. We completed acquisitions of ten wholly owned properties for an aggregate purchase price of $184.9 million during the year ended December 31, 2024.
A change in any of the above key assumptions can materially change not only the presentation of acquired properties in our consolidated financial statements but also our reported results of operations. We completed acquisitions of three wholly owned operating properties for an aggregate purchase price of $169.9 million during the year ended December 31, 2025.
Income from unconsolidated real estate venture The $0.6 million increase in Income from unconsolidated real estate venture is primarily attributable to our pro rata share of operations from the one operating property acquired by the JV since December 31, 2023 and a full period of operations from the one operating property acquired by the JV during the year ended December 31, 2023.
Income from unconsolidated real estate venture The $0.7 million increase in Income from unconsolidated real estate venture is primarily attributable to our pro rata share of operations from a full period of operations from the one operating property acquired by the JV during the year ended December 31, 2024.
Comparison of Results of Operations for the Years Ended December 31, 2023 and December 31, 2022 Information pertaining to fiscal year 2022 was included in our Annual Report on Form 10-K for the year ended December 31, 2023 on page 40 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, which was filed with the Securities and Exchange Commission, or SEC, on February 27, 2024.
Comparison of Results of Operations for the Years Ended December 31, 2024 and December 31, 2023 Information pertaining to fiscal year 2023 was included in our Annual Report on Form 10-K for the year ended December 31, 2024 on page 40 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, which was filed with the SEC on February 25, 2025.
We expect to make quarterly distributions to our stockholders in a manner intended to satisfy this requirement. Prior to making any distributions for U.S. federal tax purposes or otherwise, we must first satisfy our operating and debt service obligations.
We anticipate distributing all of our taxable income. We expect to make quarterly distributions to our stockholders in a manner intended to satisfy this requirement. Prior to making any distributions for U.S. federal tax purposes or otherwise, we must first satisfy our operating and debt service obligations.
Our operating partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of our operating partnership and owned approximately 95.2% of the aggregate limited partnership interests in our operating partnership, which we refer to herein as common units, as of December 31, 2024.
Our operating partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of our operating partnership and owned approximately 96.6% of the aggregate limited partnership interests in our operating partnership, which we refer to herein as common units, as of December 31, 2025.
On a quarterly basis, we assess the recoverability of the carrying amount of our real estate and related intangibles. Our assessment resulted in the remeasurement of ICE – Otay in the third quarter of 2022, which was written down to its estimated fair value and was classified as Level 3 in the fair value hierarchy.
On a quarterly basis, we assess the recoverability of the carrying amount of our real estate and related intangibles. Our assessment resulted in the remeasurement of ICE – Otay in the third quarter of 2025, which was written down to its estimated fair value.
We may also consider other potential opportunities to add properties to our portfolio, including acquiring properties leased to state and local governments with strong creditworthiness and other opportunities that directly or indirectly support the mission of select government agencies.
We continue to pursue opportunities to add properties to our portfolio, including acquiring properties leased to state and local governments with strong creditworthiness and other opportunities that directly or indirectly support the mission of select government agencies.
Financing Activities We generated $252.9 million and $17.2 million in cash from financing activities during the years ended December 31, 2024 and 2023, respectively.
Financing Activities We generated $31.9 million and $252.9 million in cash from financing activities during the years ended December 31, 2025 and 2024, respectively.
The $0.5 million increase in Real estate taxes is primarily attributable to the nine operating properties acquired since December 31, 2023 as well as a full period of operations from the three operating properties acquired during the year ended December 31, 2023. 40 The $5.0 million increase in Depreciation and amortization is primarily attributable to the nine operating properties acquired since December 31, 2023 as well as a full period of operations from the three operating properties acquired during the year ended December 31, 2023.
The $3.0 million increase in Real estate taxes is primarily attributable to the three operating properties acquired since December 31, 2024 as well as a full period of operations from the nine operating properties acquired during the year ended December 31, 2024. 44 The $17.6 million increase in Depreciation and amortization is primarily attributable to the three operating properties acquired since December 31, 2024 as well as a full period of operations from the nine operating properties acquired during the year ended December 31, 2024.
Net cash provided by operating activities for the year ended December 31, 2023 included $101.7 million in net cash from rental activities net of expenses, distributions from investment in unconsolidated real estate venture of $10.2 million and $2.6 million related to the changes in tenant accounts receivables, prepaid expense and other assets, deferred revenue associated with operating leases, principal payments on operating lease obligations and accounts payable, accrued expenses and other liabilities.
Net cash provided by operating activities for the year ended December 31, 2025 included $125.2 million in net cash from rental activities net of expenses, $115.4 million related to the changes in tenant accounts receivables, prepaid expense and other assets, real estate loan interest receivable, deferred revenue associated with operating leases, principal payments on operating lease obligations and accounts payable, accrued expenses and other liabilities and distributions from investment in unconsolidated real estate venture of $18.6 million.
As of December 31, 2024, the carrying amount of our investment in our unconsolidated real estate venture was $316.5 million, or approximately 9.8% of our total assets. As of December 31, 2023, the carrying amount of our investment in our unconsolidated real estate venture was $284.5 million, or approximately 9.9% of our total assets.
As of December 31, 2025, the carrying amount of our investment in our unconsolidated real estate venture was $304.7 million, or approximately 9.0% of our total assets. As of December 31, 2024, the carrying amount of our investment in our unconsolidated real estate venture was $316.5 million, or approximately 9.8% of our total assets.
The $15.7 million increase in Rental income is primarily attributable to the nine operating properties acquired since December 31, 2023 and a full period of operations from the three operating properties acquired during the year ended December 31, 2023. The $2.4 million decrease in Tenant reimbursements is primarily attributable to a decrease in tenant project reimbursements.
The $32.1 million increase in Rental income is primarily attributable to the three operating properties acquired since December 31, 2024 and a full period of operations from the nine operating properties acquired during the year ended December 31, 2024. The $0.7 million decrease in Tenant reimbursements is primarily attributable to a decrease in tenant project reimbursements.
We completed acquisitions of three wholly owned properties for an aggregate purchase price of $63.1 million during the year ended December 31, 2023. These transactions were accounted for as asset acquisitions, and the purchase price of each was allocated based on the relative fair value of the asset acquired and liabilities assumed.
We completed acquisitions of nine wholly owned operating properties for an aggregate purchase price of $184.9 million during the year ended December 31, 2024. These transactions were accounted for as asset acquisitions, and the purchase price of each was allocated based on the relative fair value of the asset acquired and liabilities assumed.
A summary of dividends declared by the board of directors per share of common stock and per common unit of our operating partnership at the date of record is as follows: Quarter Declaration Date Record Date Pay Date Dividend Q1 2024 April 25, 2024 May 9, 2024 May 21, 2024 0.265 Q2 2024 July 17, 2024 August 1, 2024 August 13, 2024 0.265 Q3 2024 October 31, 2024 November 15, 2024 November 27, 2024 0.265 Q4 2024 February 19, 2025 March 5, 2025 March 17, 2025 0.265 We use long-term investment partnership units in our operating partnership (“LTIP units”), which we refer to herein as LTIP units, as a form of performance-based award and service-based award for annual long-term incentive equity compensation.
A summary of dividends declared by the board of directors per share of common stock and per common unit (as adjusted to reflect the Reverse Stock Split and Reverse Unit Split) of our operating partnership at the date of record is as follows: Quarter Declaration Date Record Date Pay Date Dividend Q1 2025 April 9, 2025 May 5, 2025 May 17, 2025 0.450 Q2 2025 July 30, 2025 August 13, 2025 August 25, 2025 0.450 Q3 2025 October 23, 2025 November 7, 2025 November 20, 2025 0.450 Q4 2025 February 18, 2026 March 5, 2026 March 19, 2026 0.450 We use long-term investment partnership units in our operating partnership (“LTIP units”), which we refer to herein as LTIP units, as a form of performance-based award and service-based award for annual long-term incentive equity compensation.
As of December 31, 2024, we wholly owned 90 operating properties and ten operating properties through an unconsolidated joint venture (the “JV”) in the United States encompassing approximately 9.7 million leased square feet (9.2 million pro rata), including 92 operating properties that were leased primarily to U.S.
As of December 31, 2025, we wholly owned 93 operating properties and ten operating properties through an unconsolidated joint venture (the “JV”) in the United States encompassing approximately 10.4 million leased square feet (9.8 million pro rata), including 93 operating properties that were leased primarily to U.S.
The $0.2 million increase in Asset management income is attributable to the fee earned by us for asset management of the JV from the one property acquired since December 31, 2023 and a full period of operations from the one property acquired during the year ended December 31, 2023.
The $0.2 million increase in Asset management income is attributable to the fee earned by us for asset management of the JV from a full period of operations from the one property acquired during the year ended December 31, 2024. The $2.4 million increase in Other income is primarily attributable to an increase in interest income.
Dividend Policy In order to qualify as a REIT, we are required to distribute to our stockholders, on an annual basis, at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains. We anticipate distributing all of our taxable income.
None of the properties owned by the JV are encumbered by mortgage indebtedness. 50 Dividend Policy In order to qualify as a REIT, we are required to distribute to our stockholders, on an annual basis, at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains.
Investing Activities We used $409.6 million and $127.0 million in cash for investing activities during the years ended December 31, 2024 and 2023, respectively.
Investing Activities We used $285.3 million and $409.6 million in cash for investing activities during the years ended December 31, 2025 and 2024, respectively.
We have elected to be taxed as a REIT and believe that we have operated and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015. 38 Acquisitions On April 12, 2024, we acquired a 129,046 leased square foot U.S.
We have elected to be taxed as a REIT and believe that we have operated and have been organized in conformity with the requirements for qualification and taxation as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2015.
At December 31, 2024, we had approximately $19.4 million available in cash and cash equivalents, $8.5 million of restricted cash and there was approximately $125.3 million available under our revolving credit facility.
At December 31, 2025, we had approximately $23.4 million available in cash and cash equivalents, $10.3 million of restricted cash and there was approximately $200.8 million available under our revolving credit facility.
Share Repurchase Program On April 28, 2022, our board of directors authorized a share repurchase program whereby we may repurchase up to 4,538,994 shares of our common stock, or approximately 5% of our outstanding shares as of the authorization date.
Share Repurchase Program On April 28, 2022, our board of directors authorized a share repurchase program whereby we may repurchase up to 1,815,597 shares of our common stock (adjusted for the Reverse Stock Split), or approximately 5% of our outstanding shares as of the authorization date.
The chart below details our debt capital structure as of December 31, 2024 (dollars in thousands): Debt Capital Structure December 31, 2024 Total principal outstanding $ 1,605,348 Weighted average maturity 4.5 years Weighted average interest rate 4.6 % % Variable debt 15.5 % % Fixed debt (1) 84.5 % % Secured debt 9.8 % (1) Our 2016 term loan facility and 2018 term loan facility are swapped to be fixed and as such are included as fixed rate debt in the table above and $25.5 million of the 2024 revolving credit facility.
The chart below details our debt capital structure as of December 31, 2025 (dollars in thousands): Debt Capital Structure December 31, 2025 Total principal outstanding $ 1,675,750 Weighted average maturity 4.2 years Weighted average interest rate 4.6 % % Variable debt 11.9 % % Fixed debt (1) 88.1 % % Secured debt 8.8 % (1) Our 2016 term loan facility and 2018 term loan facility are swapped to be fixed and as such are included as fixed rate debt in the table above.
(2) The $400.0 million 2024 revolving credit facility (the “2024 revolving credit facility”) had available capacity of $125.3 million at December 31, 2024, which includes an accordion feature that provides us with additional capacity of up to $300.0 million, subject to syndication of the increase and the satisfaction of customary terms and conditions.
(3) Our 2024 revolving credit facility had available capacity of $200.8 million at December 31, 2025, in addition to an accordion feature that provides us with additional capacity of up to $300.0 million, subject to syndication of the increase and the satisfaction of customary terms and conditions.
Please refer to our financial statements, prepared in accordance with GAAP, for purposes of evaluating our financial condition, results of operations and cash flows. 49 The following table sets forth a reconciliation of our net income to FFO and Core FFO for the years ended December 31, 2024, 2023, and 2022 (dollars in thousands): For the years ended December 31, 2024 2023 2022 Net income $ 20,578 $ 21,060 $ 35,562 Depreciation of real estate assets 95,326 90,288 97,262 Gain on sale of operating property (171 ) — (13,590 ) Impairment loss — — 5,540 Unconsolidated real estate venture allocated share of above adjustments 8,256 7,639 4,937 FFO 123,989 118,987 129,711 Adjustments to FFO: Loss on extinguishment of debt 260 14 20 Provision for credit losses 1,527 — — Natural disaster event expense, net of recovery 95 69 96 Depreciation of non-real estate assets 1,007 1,003 992 Unconsolidated real estate venture allocated share of above adjustments 66 66 66 Core FFO $ 126,944 $ 120,139 $ 130,885 50 Factors That May Influence Future Results of Operations Revenue Our revenues primarily arise from the rental of space to tenants in our properties and tenant reimbursements, which include reimbursement for operating expenses, which are determined by the base year operating expenses and are subject to reimbursement in subsequent years largely based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
The following table sets forth a reconciliation of our net income to FFO and Core FFO for the years ended December 31, 2025, 2024, and 2023 (dollars in thousands): For the years ended December 31, 2025 2024 2023 Net income $ 13,557 $ 20,578 $ 21,060 Depreciation of real estate assets 112,891 95,326 90,288 Gain on sale of operating property — (171 ) — Impairment loss 2,545 — — Unconsolidated real estate venture allocated share of above adjustments 9,123 8,256 7,639 FFO 138,116 123,989 118,987 Adjustments to FFO: Loss on extinguishment of debt 1,158 260 14 Provision for (recovery of) credit losses (445 ) 1,527 — Natural disaster event expense, net of recovery 168 95 69 Depreciation of non-real estate assets 1,006 1,007 1,003 Unconsolidated real estate venture allocated share of above adjustments 65 66 66 Core FFO $ 140,068 $ 126,944 $ 120,139 53 Factors That May Influence Future Results of Operations Revenue Our revenues primarily arise from the rental of space to tenants in our properties and tenant reimbursements, which include reimbursement for operating expenses, which are determined by the base year operating expenses and are subject to reimbursement in subsequent years largely based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
We adjust FFO to present Core FFO as an alternative measure of our operating performance, which, when applicable, excludes items which we believe are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), provision for credit losses, catastrophic event charges, depreciation of non-real estate assets, and the unconsolidated real estate venture’s allocated share of these adjustments.
We present FFO because we consider it an important supplemental measure of our operating performance, and we believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting results. 52 We adjust FFO to present Core FFO as an alternative measure of our operating performance, which, when applicable, excludes items which we believe are not representative of ongoing operating results, such as liability management related costs (including losses on extinguishment of debt and modification costs), provision for (recovery of) credit losses, catastrophic event charges, depreciation of non-real estate assets, and the unconsolidated real estate venture’s allocated share of these adjustments.
As of December 31, 2024, we committed capital, net of return of over committed capital, to the JV totaling $329.7 million and have a remaining capital commitment of $8.5 million. None of the properties owned by the JV are encumbered by mortgage indebtedness.
As of December 31, 2025, we committed capital, net of return of over committed capital, to the JV totaling $329.7 million and have a remaining capital commitment of $8.5 million.
For more information on our interest rate swaps, see Note 7 to the Consolidated Financial Statements. On January 8, 2025, we entered into the ninth amendment to our senior unsecured term loan agreement, dated as of September 29, 2016, to extend the maturity date of our 2016 term loan facility from January 30, 2025 to January 28, 2028.
For a more complete description of the treasury lock agreements, see Note 7 Derivatives and Hedging Activities. 2016 Term Loan Facility On January 8, 2025, we entered into the ninth amendment to our senior unsecured term loan agreement, dated as of September 29, 2016, to extend the maturity date of our 2016 term loan facility from January 30, 2025 to January 28, 2028.
Our primary expected sources of capital are as follows: • existing cash balances; • operating cash flow; • distribution of cash flows from the JV; • available borrowings under our 2024 revolving credit facility; • issuance of long-term debt; • issuance of equity, including under our ATM Programs (as described below); and • asset sales. 41 Our short-term liquidity requirements consist primarily of funds to pay for the following: • development and redevelopment activities, including major redevelopment, renovation or expansion programs at FDA – Atlanta, JUD – Flagstaff and other individual properties; • potential property acquisitions; • tenant improvements, allowances and leasing costs; • recurring maintenance and capital expenditures; • debt repayment requirements; • commitments to fund advancements through loan receivables; • corporate and administrative costs; • interest payments on our outstanding indebtedness; • interest swap payments; • distribution payments; and • repurchases of common stock under our share repurchase program.
Our short-term liquidity requirements consist primarily of funds to pay for the following: • development and redevelopment activities, including major redevelopment, renovation or expansion programs at JUD – Flagstaff, JUD – Medford, FL – Fort Myers and other individual properties; • potential property acquisitions; • tenant improvements, allowances and leasing costs; • recurring maintenance and capital expenditures; • debt repayment requirements; • commitments to fund advancements through loan receivables; • corporate and administrative costs; • interest payments on our outstanding indebtedness; • interest swap payments; • distribution payments; and • potential repurchases of common stock under our share repurchase program.
ATM Programs We entered into separate equity distribution agreements on each of December 20, 2019 (the “2019 ATM Program”) and June 22, 2021 (the “2021 ATM Program” and, together with the 2019 ATM Program, the “ATM Programs”) with various financial institutions pursuant to which we may issue and sell shares of our common stock having an aggregate offering price of up to $300.0 million under each ATM Program from time to time in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act.
Pursuant to the 2021 ATM Program, we may issue and sell shares of our common stock having an aggregate offering price of up to $300.0 million from time to time in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act.
(5) Our 2016 term loan facility (our “2016 term loan facility”) is subject to three interest rate swaps, all with effective dates of December 23, 2024 and an aggregate notional value of $100.0 million, which effectively fixes the interest rate at 5.31% annually.
(4) Our 2024 revolving credit facility has two six-month as-of-right extension options subject to certain conditions and the payment of an extension fee. (5) Our 2016 term loan facility is subject to three interest rate swaps with effective dates of December 23, 2024 and a notional value of $100.0 million, which effectively fixes the interest rate at 5.31% annually.
Our estimate of the fair value was based on a combination of a pending offer from a third party to acquire the property and a discounted cash flow analysis.
Our estimate of the fair value was based on a pending offer to acquire the property.
Impairment of Unconsolidated Real Estate Venture We account for our investment in the unconsolidated real estate venture under the equity method.
As of December 31, 2024, no impairment related to our long-lived assets was identified. Impairment of Unconsolidated Real Estate Venture We account for our investment in the unconsolidated real estate venture under the equity method.
(7) Our 2018 term loan facility (as amended, our “2018 term loan facility”) is subject to two interest rate swaps with effective dates of June 23 and September 29, 2023 and an aggregate notional value of $200.0 million, of which $174.5 million is associated with our 2018 term loan facility, to effectively fix the interest rate on the $174.5 million at 5.23% annually.
(7) Our 2018 term loan facility is subject to three interest rate swaps, one of which has an effective date of March 24, 2025 and the remaining two have an effective date of June 30, 2025. The three swaps have an aggregate notional value of $200.0 million, which effectively fix the interest rate at 5.09% annually.
The $1.8 million decrease in Property operating expenses is primarily attributable to a decrease in tenant reimbursable projects and utility costs across the portfolio partially offset by an increase from the nine operating properties acquired since December 31, 2023 and a full period of operations from the three operating properties acquired during the year ended December 31, 2023.
The $7.3 million increase in Property operating expenses is primarily attributable to the three operating properties acquired since December 31, 2024 as well as a full period of operations from the nine operating properties acquired during the year ended December 31, 2024.
Net cash used in investing activities for the year ended December 31, 2023 primarily included $63.4 million in real estate acquisitions and deposits, $28.1 million in additions to operating properties, $17.8 million in additions to development properties and $17.7 million in investment in unconsolidated real estate venture, offset by $0.1 million in distributions from investment in unconsolidated real estate venture.
Net cash used in investing activities for the year ended December 31, 2025 primarily included $180.0 million in real estate acquisitions and deposits, $76.6 million in additions to development properties, $34.1 million in additions to operating 51 properties and $14.3 million in investment in real estate loan receivable, net, offset by $16.2 million in repayments of real estate loan receivable and $3.5 million in proceeds from sale, net.
See Note 6 to the Consolidated Financial Statements for additional information on our 2024 revolving credit facility, our 2018 term loan facility and our 2016 term loan facility. Our 2024 revolving credit facility, term loan facilities, notes payable, and mortgage notes payable are subject to ongoing compliance with a number of financial and other covenants.
Our 2024 revolving credit facility, term loan facilities, notes payable, and mortgage notes payable are subject to ongoing compliance with a number of financial and other covenants. As of December 31, 2025, we were in compliance with all applicable financial covenants.
The spread over SOFR is based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement.
The spread over SOFR is based on our consolidated leverage ratio, as defined in our 2016 term loan facility agreement. (6) Our 2016 term loan facility has two one-year as-of-right extension options subject to certain conditions and the payment of an extension fee.
Net cash generated by financing activities for the year ended December 31, 2023 included $86.5 million in gross proceeds from issuance of shares of our common stock, $50.0 million delayed draw on our 2018 term loan and $13.5 million in net draws under the revolving credit facility offset by $112.4 million in dividends, $20.0 million in mortgage debt repayment and $0.4 million in the payment of deferred offering costs. 48 Comparison of Cash Flow for the Years Ended December 31, 2023 and December 31, 2022 Information pertaining to fiscal year 2022 was included in our Annual Report on Form 10-K for the year ended December 31, 2023 on page 47 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, which was filed with SEC on February 27, 2024.
Comparison of Cash Flow for the Years Ended December 31, 2024 and December 31, 2023 Information pertaining to fiscal year 2023 was included in our Annual Report on Form 10-K for the year ended December 31, 2024 on page 47 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, which was filed with SEC on February 25, 2025.
For the years ended December 31, (Amounts in thousands) 2024 2023 Change Revenues Rental income $ 289,601 $ 273,906 $ 15,695 Tenant reimbursements 6,544 8,908 (2,364 ) Asset management income 2,302 2,110 192 Other income 3,605 2,303 1,302 Total revenues 302,052 287,227 14,825 Expenses Property operating 70,151 71,964 (1,813 ) Real estate taxes 30,924 30,461 463 Depreciation and amortization 96,333 91,292 5,041 Acquisition costs 1,878 1,661 217 Corporate general and administrative 24,450 27,118 (2,668 ) Provision for credit losses 1,527 — 1,527 Total expenses 225,263 222,496 2,767 Other income (expense) Income from unconsolidated real estate venture 6,051 5,498 553 Interest expense, net (62,433 ) (49,169 ) (13,264 ) Gain on the sale of real estate 171 — 171 Net income $ 20,578 $ 21,060 $ (482 ) Revenues Total revenues increased $14.8 million to $302.1 million for the year ended December 31, 2024 compared to $287.2 million for the year ended December 31, 2023.
For the years ended December 31, (Amounts in thousands) 2025 2024 Change Revenues Rental income $ 321,669 $ 289,601 $ 32,068 Tenant reimbursements 5,855 6,544 (689 ) Asset management income 2,544 2,302 242 Other income 6,031 3,605 2,426 Total revenues 336,099 302,052 34,047 Expenses Property operating 77,496 70,151 7,345 Real estate taxes 33,915 30,924 2,991 Depreciation and amortization 113,897 96,333 17,564 Acquisition costs 1,420 1,878 (458 ) Corporate general and administrative 26,041 24,450 1,591 Provision for (recovery of) credit losses (445 ) 1,527 (1,972 ) Total expenses 252,324 225,263 27,061 Other income (expense) Income from unconsolidated real estate venture 6,781 6,051 730 Interest expense, net (74,454 ) (62,433 ) (12,021 ) Gain on the sale of real estate — 171 (171 ) Impairment loss (2,545 ) — (2,545 ) Net income $ 13,557 $ 20,578 $ (7,021 ) Revenues Total revenues increased $34.0 million to $336.1 million for the year ended December 31, 2025 compared to $302.1 million for the year ended December 31, 2024.
The remeasurement resulted in an impairment loss of $5.5 million, which is included in "Impairment loss" in our Consolidated Statements of Operations for the year ended December 31, 2022. As of December 31, 2024 and 2023, no impairment related to our long-lived assets was identified.
The remeasurement resulted in an impairment loss of $2.5 million, which is included in Impairment loss in our Consolidated Statements of Operations. 43 Results of Operations Comparison of Results of Operations for the Years Ended December 31, 2025 and December 31, 2024 The financial information presented below summarizes the results of operations of our company for the years ended December 31, 2025 and 2024.
We used the net proceeds received from such sales for general corporate purposes. As of December 31, 2024 , we had approximately $300.0 million of gross sales of our common stock available under the 2021 ATM Program and $15.4 million of gross sales of our common stock available under the 2019 ATM Program.
As of December 31, 2025 , we had approximately $236.2 million of gross sales of our common stock available under the 2021 ATM Program.
Holders of LTIP units that are not subject to the attainment of performance goals are entitled to receive dividends per LTIP unit equal to 100% of the dividend paid per common unit beginning on the grant date. 47 Cash Flow Comparison of Cash Flow for the Years Ended December 31, 2024 and December 31, 2023 The following table sets forth a summary of cash flows for our company for the years ended December 31, 2024 and 2023: For the years ended December 31, 2024 2023 Change (Amounts in thousands) Net cash provided by (used in): Operating activities $ 162,635 $ 114,479 $ 48,156 Investing activities (409,645 ) (127,008 ) (282,637 ) Financing activities 252,875 17,194 235,681 Operating Activities We generated $162.6 million and $114.5 million of cash from operating activities during the years ended December 31, 2024 and 2023, respectively.
Cash Flow Comparison of Cash Flow for the Years Ended December 31, 2025 and December 31, 2024 The following table sets forth a summary of cash flows for our company for the years ended December 31, 2025 and 2024: For the years ended December 31, 2025 2024 Change (Amounts in thousands) Net cash provided by (used in): Operating activities $ 259,194 $ 162,635 $ 96,559 Investing activities (285,285 ) (409,645 ) 124,360 Financing activities 31,918 252,875 (220,957 ) Operating Activities We generated $259.2 million and $162.6 million of cash from operating activities during the years ended December 31, 2025 and 2024, respectively.
The $2.7 million decrease in Corporate and general administrative costs was primarily due to a decrease in employee costs and non-cash compensation. The $1.5 million increase in Provision for credit losses is primarily due to a construction loan entered into on August 6, 2024 to lend up to $52.1 million to a developer.
The $1.6 million increase in Corporate and general administrative costs was primarily due to an increase in non-cash compensation. The $2.0 million decrease in Provision for (recovery of) credit losses is primarily due to a downward adjustment to our credit allowance due to net paydowns of Real estate loan receivable and change in market conditions.
On August 6, 2024, we used $51.5 million of available cash to extinguish the mortgage note obligation on USCIS – Kansas City. 2024 Senior Note Agreement On May 29, 2024, we entered into a master note purchase agreement pursuant to which the Operating Partnership agreed to issue and sell an aggregate of up to $200 million of fixed rate, senior unsecured notes (“Senior Notes”) consisting of (i) 6.56% Series A Senior Notes due May 29, 2033 (“Series A Senior Notes”), in an aggregate principal amount of $150.0 million, and (ii) 6.56% Series B Senior Notes due August 14, 2033 (“Series B Senior Notes”), in an aggregate principal amount of $50.0 million.
Effective September 30, 2025, we entered into the tenth amendment to our senior unsecured term loan agreement, dated as of September 29, 2016, to remove the minimum consolidated tangible net worth financial covenant. 2025 Senior Note Agreement On March 20, 2025, we entered into a master note purchase agreement pursuant to which the Operating Partnership agreed to issue and sell an aggregate of up to $125 million of fixed rate, senior unsecured notes (“Senior Notes”) consisting of (i) 6.13% 2025 Series A Senior Notes due March 20, 2030 (“2025 series A senior notes”), in an aggregate principal amount of $25.0 million, and (ii) 6.33% 2025 Series B Senior Notes due March 20, 2032 (“2025 series B senior notes”), in an aggregate principal amount of $100.0 million.
However, there can be no assurance that we will be able to complete any such offerings of securities in the future.
However, there can be no assurance that we will be able to complete any such offerings of securities in the future. ATM Programs We entered into separate equity distribution agreements on each of December 20, 2019 (the “2019 ATM Program”) and June 22, 2021 (the “2021 ATM Program”) with various financial institutions.
Material Cash Commitments The following table shows our material cash commitments as of December 31, 2024 : Payments due by period Total 2025 2026 2027 2028 2029 Thereafter Mortgage principal and interest $ 170,655 $ 10,319 $ 15,470 $ 138,367 $ 1,169 $ 1,168 $ 4,162 Revolving credit facility principal and interest 329,480 16,038 16,038 16,038 281,366 — — Term loan facilities principal and interest 289,258 109,604 179,654 — — — — Senior unsecured notes payable principal and interest 1,152,644 38,005 38,005 130,699 83,879 165,652 696,404 Development property obligations (1) 53,756 44,574 9,182 — — — — Total $ 1,995,793 $ 218,540 $ 258,349 $ 285,104 $ 366,414 $ 166,820 $ 700,566 46 (1) Due to the long-term nature of certain construction and development contracts included in this line, the amounts reported in the table represent our estimate of the timing for the related obligations being paid .
Material Cash Commitments The following table shows our material cash commitments as of December 31, 2025 : Payments due by period Total 2026 2027 2028 2029 2030 Thereafter Mortgage principal and interest $ 160,337 $ 15,470 $ 138,367 $ 1,169 $ 1,168 $ 1,166 $ 2,997 Revolving credit facility principal and interest 224,811 10,623 10,623 203,565 — — — Term loan facilities principal and interest 337,800 15,570 15,570 306,660 — — — Senior unsecured notes payable principal and interest 1,285,483 45,868 138,561 91,742 173,515 258,042 577,755 Development property obligations (1) 48,952 48,952 — — — — — Total $ 2,057,383 $ 136,483 $ 303,121 $ 603,136 $ 174,683 $ 259,208 $ 580,752 (1) Due to the long-term nature of certain construction and development contracts included in this line, the amounts reported in the table represent our estimate of the timing for the related obligations being paid.
Interest expense, net Interest expense, net increased by $13.3 million to $62.4 million for the year ended December 31, 2024 compared to $49.2 million for the year ended December 31, 2023.
Expenses Total expenses increased by $27.1 million to $252.3 million for the year ended December 31, 2025 compared to $225.3 million for the year ended December 31, 2024.
As of December 31, 2024, we have a commitment to fund $52.1 million through a loan receivable that will accrue interest monthly at a fixed market rate of 9.00% per annum. As of December 31, 2024 and the date of this Annual Report on Form 10-K, the outstanding balance of the loan receivable was $35.1 million and $41.4 million, respectively.
As of both December 31, 2025 and the date of this Annual Report on Form 10-K, the outstanding balance of the loan receivable was $35.6 million and our remaining obligation to fund was $0.4 million.
We recognized an aggregate $0.3 million loss on debt extinguishment during the twelve months ended December 31, 2024 which is included in Interest expense, net on our Consolidated Statement of Operations. 45 Term Loan Facilities On January 23, 2024, we entered into the seventh amendment to the senior unsecured term loan agreement, dated as of September 29, 2016, that governs our 2016 term loan facility to extend the maturity date of our 2016 term loan facility from March 29, 2024 to January 30, 2025.
In connection with the extension, we recognized an aggregate $0.1 million loss on debt extinguishment during the twelve months ended December 31, 2025, which is included in Interest expense, net on our Consolidated Statements of Operations. 2024 Revolving Credit Facility Effective September 2, 2025, we amended the credit agreement governing our 2024 revolving credit facility to remove the minimum consolidated tangible net worth financial covenant. 49 See Note 6 to the Consolidated Financial Statements for additional information on our 2024 revolving credit facility, our 2018 term loan facility and our 2016 term loan facility.
Under each of the ATM Programs, we may enter into one or more forward transactions (each, a “forward sale transaction”) under separate master forward sale confirmations and related supplemental confirmations with each of the various financial institutions party to the respective ATM Program for the sale of shares of our common stock on a forward basis. 42 The following table sets forth certain information with respect to issuances under the 2019 ATM Program in each fiscal quarter for the year ended December 31, 2024 (amounts in thousands except share amounts): 2019 ATM Program For the Three Months Ended: Number of Shares Issued (1) Net Proceeds (1) March 31, 2024 — $ — June 30, 2024 589,647 7,903 September 30, 2024 2,631,727 35,077 December 31, 2024 2,269,843 28,112 Total 5,491,217 $ 71,092 (1) Shares issued by us, which were all issued in settlement of forward sale transactions.
The 2019 ATM Program, which also provided for the issuance and sale of shares of our common stock having an aggregate offering price of up to $300.0 million in “at the market” offerings and forward sale transactions, was terminated on April 30, 2025 and there were no issuances under the 2019 ATM Program during the twelve months ended December 31, 2025. 46 The following table sets forth certain information with respect to issuances under the 2021 ATM Program in each fiscal quarter for the year ended December 31, 2025 (amounts in thousands except share amounts): 2021 ATM Program For the Three Months Ended: Number of Shares Issued (1) Net Proceeds (1) March 31, 2025 (2) 1,514,266 $ 40,858 June 30, 2025 (2) 202,721 5,315 September 30, 2025 750,000 16,812 December 31, 2025 — — Total 2,466,987 $ 62,985 (1) Shares issued by us, which were all issued in settlement of forward sale transactions.
The 2024 revolving credit facility has an initial four-year term and will mature in June 2028, with two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.
The spread over SOFR is based on our consolidated leverage ratio, as defined in our 2018 term loan facility agreement. (8) Our 2018 term loan facility has two one-year as-of-right extension options subject to certain conditions and the payment of an extension fee.
As of December 31, 2024, we had settled all of our outstanding forward sale transactions under the 2019 ATM Program. We accounted for the forward sale transactions as equity. No sales of shares of our common stock were made under the 2021 ATM Program during the year ended December 31, 2024 .
As of December 31, 2025, we had settled all of our outstanding forward sale transactions under the 2021 ATM Program. We accounted for the forward sale transactions as equity. (2) Share amounts have been retrospectively adjusted for all periods presented to reflect the Reverse Stock Split. We used the net proceeds received from such sales for general corporate purposes.
The $1.3 million increase in Other income is primarily attributable to an increase in interest income from our loan receivable. Expenses Total expenses increased by $2.8 million to $225.3 million for the year ended December 31, 2024 compared to $222.5 million for the year ended December 31, 2023.
Interest expense, net Interest expense, net increased by $12.0 million to $74.5 million for the year ended December 31, 2025 compared to $62.4 million for the year ended December 31, 2024. The increase is primarily attributable to the fixed rate senior unsecured notes issued in 2024 and 2025.
Removed
Immigration and Customs Enforcement (“ICE”) facility near Dallas, Texas that has lease expirations ranging from 2032 to 2040. On May 7, 2024, we acquired a 27,840 leased square foot Homeland Security Investigations (“HSI”) facility in Orlando, Florida with a 15-year lease that does not expire until March 2036.
Added
Reverse Stock Split and Reduction in Authorized Shares On April 28, 2025, we effected a 1-for-2.5 reverse stock split of our issued and outstanding common stock, which reverse stock split was previously approved by our Board of Directors (the “Reverse Stock Split”). As a result, every 2.5 shares of issued and outstanding common stock were consolidated into 1 share.
Removed
On May 9, 2024, we acquired a 49,420 leased square foot ICE facility in Orlando, Florida with a 20-year lease that does not expire until August 2040. On September 4, 2024, we acquired a 99,246 leased square foot Northrop Grumman facility near Dayton, Ohio with a 5-year lease through August 2029.
Added
Concurrently with the Reverse Stock Split, our operating partnership completed a corresponding 1-for-2.5 reverse unit split of outstanding common units and LTIP units (the “Reverse Unit Split”). All share and per share amounts, including earnings per share, in these financial statements have been retrospectively adjusted for all periods presented to reflect the Reverse Stock Split.
Removed
On October 10, 2024, we acquired a 104,136 leased square foot Northrop Grumman facility in Aurora, Colorado with a 9-year lease through February 2032. On November 21, 2024, we acquired a 100,000 leased square foot Internal Revenue Service (“IRS”) facility in Ogden, Utah with a 5-year lease through January 2029.
Added
Accordingly, the Reverse Stock Split reduced the number of shares outstanding on April 28, 2025 from 112,263,028 to 44,905,158. On May 8, 2025, we reduced the number of our authorized shares of common stock from 200,000,000 to 80,000,000, in proportion with the 1-for-2.5 Reverse Stock Split effected by us on April 28, 2025.
Removed
On November 27, 2024, we acquired a 295,253 square foot campus across three assets leased primarily to the Wake County Public School System with a 10-year lease through June 30, 2034.
Added
The par 42 value of the common stock remained unchanged at $0.01 per share following both the Reverse Stock Split and the reduction in authorized shares. For additional information, see Note 9, Note 10 and Note 11 to the Consolidated Financial Statements.
Removed
Investment in unconsolidated real estate venture On August 29, 2024, the JV acquired a 193,100 square foot Veteran Affairs (“VA”) outpatient facility in Jacksonville, Florida with a 20-year lease that does not expire until October 2043. Development On April 4, 2024, we acquired land to develop a 50,777 square foot Federal courthouse in Flagstaff, Arizona.
Added
Acquisitions On April 3, 2025, we acquired a 289,873 square foot facility leased primarily to the District of Columbia Government with a lease through February 2038. On May 7, 2025, we acquired a 74,549 leased square foot Department of Homeland Security (“DHS”) facility near Burlington, Vermont with a 10-year lease that does not expire until May 2031.
Removed
The courthouse will be primarily leased to the GSA for beneficial use of the Judiciary of the U.S.
Added
On August 28, 2025, we acquired a 138,125 leased square foot York Space Systems facility in Greenwood Village, Colorado with a 10-year lease through December 2031. On January 16, 2026, we acquired a 297,713 leased square foot campus consisting of three real estate operating properties near Richmond, Virginia.
Removed
Government (“JUD”) over a 20 year non-cancelable term. 39 Results of Operations Comparison of Results of Operations for the Years Ended December 31, 2024 and December 31, 2023 The financial information presented below summarizes the results of operations of our company for the years ended December 31, 2024 and 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs of December 31, 2024, $1.4 billion, or 84.5% of our debt, excluding unamortized premiums and discounts, had fixed interest rates or rates effectively fixed through interest rate swaps and $249.1 million, or 15.5%, had variable interest rates based on SOFR.
Biggest changeAs of December 31, 2025, $1.5 billion, or 88.1% of our debt, excluding unamortized premiums and discounts, had fixed interest rates or rates effectively fixed through interest rate swaps and $199.1 million, or 11.9%, had variable interest rates based on SOFR.
If market rates of interest on our variable rate debt fluctuate by 25 basis points, interest expense would increase or decrease, depending on rate movement, future earnings and cash flows, by $0.6 million annually. Item 8. Financial Statement s and Supplementary Data This item is included in a separate section at the end of this report beginning on page F-1.
If market rates of interest on our variable rate debt fluctuate by 25 basis points, interest expense would increase or decrease, depending on rate movement, future earnings and cash flows, by $0.5 million annually. Item 8. Financial Statement s and Supplementary Data This item is included in a separate section at the end of this report beginning on page F-1.

Other DEA 10-K year-over-year comparisons