Easterly Government Properties Stock

Easterly Government Properties, Inc. focuses primarily on the acquisition, development and management of commercial properties that are leased to U.S. government agencies that serve essential functions.

The company’s initial portfolio consists of 15 properties contributed by the Easterly Funds and 14 properties contributed by Western Devcon. It focuses on acquiring, developing, and managing the U.S. General Services Administration (GSA) leased properties that are essential to supporting the mission of the tenant agency and strive to be a partner of choice for the U.S. government, working closely with GSA to meet the needs and objectives of the tenant agency.

The company’s initial portfolio is diversified among U.S. government tenant agencies, which include various the U.S. government’s essential agencies, such as the Drug Enforcement Administration, the Federal Bureau of Investigation, the Internal Revenue Service and the Patent and Trademark Office.

The company’s initial assets are located across the United States, including Pacific Rim (11 properties), Greater Southwest (7 properties), Southeast Sunbelt (5 properties), Rocky Mountain (2 properties), Northeast & Caribbean (1 property), Mid-Atlantic (1 property), The Heartland (1 property), and National Capital (1 property). The three properties entirely leased to private tenants are located in the Southeast Sunbelt (two properties) and Greater Southwest regions.

The company’s initial portfolio has a stable tenant base that is diversified among U.S. government agencies. Its private tenants are Parbel of Florida, a subsidiary of L’Oreal SA; United Technologies; LifePoint, Inc.; and Lummus Corporation. As of September 30, 2014, the company’s properties were 100% occupied by 16 tenants.

Significant Properties

Internal Revenue Service (IRS)—Fresno

The IRS Compliance Center located in Fresno, California. The 180,481 square foot building is located on a 3.0-acre site. The facility is in operation 20 hours per day. The Fresno IRS property is leased in its entirety to the Internal Revenue Service. This lease expires on November 30, 2018.

Patent and Trademark Office (PTO)—Arlington

The 189,871 square foot building resides on a 2.5-acre site located in the Shirlington Village neighborhood of Arlington, which is located approximately 5 miles southwest of Washington, D.C. This facility serves as a front office to the 2.5 million square foot PTO headquarters in nearby Alexandria, Virginia. The property is leased pursuant to two separate leases, one of which expires on March 31, 2019, with the second lease expiring on January 7, 2020.

Federal Bureau of Investigation (FBI)—San Antonio

The facility has anti-collapsible walls, ballistic glass, an anti-pathogen HVAC system and a discrete garage specifically designed for outfitting vehicles. This lease expires on September 6, 2021. The San Antonio FBI property is leased in its entirety to the Federal Bureau of Investigation.

FBI—Omaha

The facility serves as a hub for Nebraska’s and Iowa’s eight satellite FBI offices. The Omaha FBI property is leased in its entirety to the Federal Bureau of Investigation. This lease expires on July 15, 2024.

Regulation

The company’s properties must comply with Title III of the ADA to the extent that such properties are public accommodations as defined by the ADA.

Strategy

Key elements of the company’s strategy include pursuing attractive acquisition opportunities; developing build-to-suit U.S. government properties; and renewing existing leases at positive spreads.