Easterly Government Properties, Inc.

Previous wording

We focus primarily on acquiring, developing and managing U.S. Government-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 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. As of March 31, 2026, we wholly owned 96 operating properties and ten operating properties through an unconsolidated joint venture (the “JV”) in the United States, encompassing approximately 10.7 million leased square feet (10.1 million pro rata), including 93 operating properties that were leased primarily to U.S. Government tenant agencies, eight operating properties leased to tenant agencies of a U.S. state or local government and five operating properties that were entirely leased to private tenants. As of March 31, 2026, our operating properties were 97% leased. 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.

Current wording

We focus primarily on acquiring, developing and managing U.S. Government-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 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. As of June 30, 2026, we wholly owned 96 operating properties and ten operating properties through an unconsolidated joint venture (the “JV”) in the United States, encompassing approximately 10.7 million leased square feet (10.2 million pro rata), including 93 operating properties that were leased primarily to U.S. Government tenant agencies, eight operating properties leased to tenant agencies of a U.S. state or local government and five operating properties that were entirely leased to private tenants. As of June 30, 2026, our operating properties were 98% leased. 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.

Previous wording

The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of the Operating Partnership and owned approximately 96.6% of the aggregate limited partnership interests in the Operating Partnership, which we refer to herein as common units, as of March 31, 2026. 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.

Current wording

The Operating Partnership holds substantially all of our assets and conducts substantially all of our business. We are the sole general partner of the Operating Partnership and owned approximately 96.7% of the aggregate limited partnership interests in the Operating Partnership, which we refer to herein as common units, as of June 30, 2026. 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.

Previous wording

On January 16, 2026, we acquired a 297,713 leased square foot campus consisting of three real estate operating properties near Richmond, Virginia. The assets are leased primarily to the Commonwealth of Virginia and have lease expirations ranging from 2027 to 2036.

Current wording

On January 16, 2026, we acquired a 297,713 leased square foot campus consisting of three real estate operating properties in Glen Allen, Virginia. The assets are leased primarily to the Commonwealth of Virginia and have lease expirations ranging from 2027 to 2036.

Previous wording

As of March 31, 2026, our operating properties were 97% leased with a weighted average annualized lease income per leased square foot of $36.82 ($36.54 pro rata) and a weighted average age of approximately 16.9 years based on the date the property was built or renovated-to-suit, where applicable. 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.

Current wording

As of June 30, 2026, our operating properties were 98% leased with a weighted average annualized lease income per leased square foot of $36.72 ($36.44 pro rata) and a weighted average age of approximately 17.1 years based on the date the property was built or renovated-to-suit, where applicable. 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.

Previous wording

Certain of our leases are currently in the “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. We believe that, from the U.S. Government’s perspective, leases with such provisions are helpful for budgetary purposes. 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 weighted average age of these properties based on the date the property was built or renovated-to-suit, where applicable (approximately 20.7 years as of March 31, 2026), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties.

Current wording

Certain of our leases are currently in the “soft-term” period of the lease, meaning that the U.S. Government tenant agency has the right to terminate the lease prior to its stated lease end date. We believe that, from the U.S. Government’s perspective, leases with such provisions are helpful for budgetary purposes. 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 weighted average age of these properties based on the date the property was built or renovated-to-suit, where applicable (approximately 21.1 years as of June 30, 2026), the mission-critical focus of the properties subject to the leases and the current level of operations at such properties.

Previous wording

The year of lease expiration is pursuant to current contract terms. Some tenants have the right to vacate their space during a specified period, or “soft term,” before the stated terms of their leases expire. As of March 31, 2026, eight tenants occupying approximately 4.0% of our leased square feet and contributing approximately 4.3% of our annualized lease income are currently operating under lease provisions that allow them to exercise their right to terminate their lease before the stated term of their respective lease expires.

Current wording

The year of lease expiration is pursuant to current contract terms. Some U.S. Government tenants have the right to vacate their space during a specified period, or “soft term,” before the stated terms of their leases expire. As of June 30, 2026, eight U.S. Government tenants occupying approximately 4.0% of our leased square feet and contributing approximately 4.3% of our annualized lease income are currently operating under lease provisions that allow them to exercise their right to terminate their lease before the stated term of their respective lease expires.

Previous wording

The $0.2 million decrease in tenant reimbursements is primarily attributable to a decrease in tenant project reimbursement.

Current wording

The $1.6 million decrease in tenant reimbursements is primarily attributable to a decrease in reimbursable tenant project activity.

Previous wording

The less than $0.1 million increase in Asset management income is primarily attributable to the fee earned by us for asset management of the JV.

Current wording

The $0.1 million increase in Asset management income is primarily attributable to the fee earned by us for asset management of the JV.

Previous wording

The less than $0.1 million increase in Other income is primarily attributable to an increase in interest income.

Current wording

The $0.4 million increase in Other income is primarily attributable to an increase in interest income on our loans receivable.

Previous wording

The $0.6 million increase in Real estate taxes is primarily attributable to the six operating properties acquired since March 31, 2025 and one development property placed into service since March 31, 2025.

Current wording

The $0.6 million increase in Real estate taxes is primarily attributable to the four operating properties acquired since June 30, 2025, one development property placed into service since June 30, 2025 and a full period of operations from the two operating properties acquired during the quarter ended June 30, 2025.

Previous wording

The $2.3 million increase in Corporate general and administrative is primarily due to an increase in employee costs and non-cash compensation.

Current wording

The $2.1 million increase in Corporate general and administrative is primarily due to an increase in employee costs and non-cash compensation.

Previous wording

The $0.4 million increase in Provision for (recovery of) credit losses is primarily due to the mezzanine loan entered into in March 2026.

Current wording

The $0.2 million decrease in Recovery of credit losses is primarily due to a change in market conditions.

Previous wording

The $13.0 million increase in Rental income is primarily attributable to the six operating properties acquired since March 31, 2025 and one development property placed into service since March 31, 2025.

Current wording

The $22.3 million increase in Rental income is primarily attributable to the four operating properties acquired since June 30, 2025, one development property placed into service since June 30, 2025 and a full period of operations from the two operating properties acquired during the six months ended June 30, 2025.

Previous wording

The $2.7 million increase in Property operating expenses is primarily attributable to the six operating properties acquired since March 31, 2025 and one development property placed into service since March 31, 2025.

Current wording

The $3.5 million increase in Property operating expenses is primarily attributable to the four operating properties acquired since June 30, 2025, one development property placed into service since June 30, 2025 and a full period of operations from the two operating properties acquired during the six months ended June 30, 2025.

Previous wording

The $6.4 million increase in Depreciation and amortization is primarily attributable to the six operating properties acquired since March 31, 2025 and one development property placed into service since March 31, 2025.

Current wording

The $10.0 million increase in Depreciation and amortization is primarily attributable to the four operating properties acquired since June 30, 2025, one development property placed into service since June 30, 2025 and a full period of operations from the two operating properties acquired during the six months ended June 30, 2025.

Previous wording

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 - Ft. 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. At March 31, 2026, we had approximately $2.0 million available in cash and cash equivalents, $10.7 million of restricted cash and there was approximately $154.8 million available under our 2024 revolving credit facility.

Current wording

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 FL – Ft. Myers, JUD – Flagstaff and JUD – Medford, 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. At June 30, 2026, we had approximately $3.3 million available in cash and cash equivalents, $10.4 million of restricted cash and there was approximately $356.8 million available under our 2024 revolving credit facility.

Previous wording

development and redevelopment activities, including major redevelopment, renovation or expansion programs at JUD - Flagstaff, JUD - Medford and FL - Ft. Myers and other individual properties;

Current wording

development and redevelopment activities, including major redevelopment, renovation or expansion programs at FL – Ft. Myers, JUD – Flagstaff and JUD – Medford and other individual properties;

Previous wording

The following table sets forth certain information with respect to issuances under the 2021 ATM Program during the three months ended March 31, 2026 (amounts in thousands, except share amounts):

Current wording

The following table sets forth certain information with respect to issuances under the 2021 ATM Program during the six months ended June 30, 2026 (amounts in thousands, except share amounts):

Previous wording

As of March 31, 2026, we had approximately $234.0 million of gross sales of our common stock available under the 2021 ATM Program.

Current wording

As of June 30, 2026, we had approximately $215.0 million of gross sales of our common stock available under the 2021 ATM Program.

Previous wording

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 1-for-2.5 reverse stock split of the Company’s issued and outstanding Common Stock), or approximately 5% of our outstanding shares as of the original authorization date. We are not required to purchase shares under the share repurchase program but may choose to do so in the open market or through privately negotiated transactions at times and amounts based on our evaluation of market conditions and other factors.

Current wording

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 1-for-2.5 reverse stock split of the Company’s issued and outstanding Common Stock, effective April 28, 2025), or approximately 5% of our outstanding shares as of the original authorization date. We are not required to purchase shares under the share repurchase program but may choose to do so in the open market or through privately negotiated transactions at times and amounts based on our evaluation of market conditions and other factors.

Previous wording

No repurchases of shares of our common stock were made under the share repurchase program during the three months ended March 31, 2026.

Current wording

No repurchases of shares of our common stock were made under the share repurchase program during the six months ended June 30, 2026.

Previous wording

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%.

Current wording

Effective interest rates are as follows: 2016 term loan facility 5.49%, 2018 term loan facility 5.53%, 2026 term loan facility 5.11%, 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%.

Previous wording

At March 31, 2026, the USD SOFR with a five day lookback (“SOFR”) was 3.63%. 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. The spread over the applicable rate for each of our $400.0 million senior unsecured revolving credit facility (the “2024 revolving credit facility”), our $200.0 million senior unsecured term loan facility (as amended, our “2018 term loan facility”) and our $100.0 million senior unsecured term loan facility (as amended, our “2016 term loan facility”) is based on our consolidated leverage ratio, as set forth in the respective loan agreements.

Current wording

At June 30, 2026, the USD secured overnight financing rate (“SOFR”) with a five day lookback was 3.62%. 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. The spread over the applicable rate for each of our $400.0 million senior unsecured revolving credit facility (the “2024 revolving credit facility”), our $200.0 million senior unsecured term loan facility (our “2026 term loan facility”), our $200.0 million senior unsecured term loan facility (as amended, our “2018 term loan facility”) and our $100.0 million senior unsecured term loan facility (as amended, our “2016 term loan facility”) is based on our consolidated leverage ratio, as set forth in the respective loan agreements.

Previous wording

Our $400.0 million senior unsecured revolving credit facility had available capacity of $154.8 million at March 31, 2026, 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.

Current wording

Our $400.0 million senior unsecured revolving credit facility had available capacity of $356.8 million at June 30, 2026, 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.

Previous wording

Our 2016 term loan facility is subject to three interest rate swaps with an effective date of December 23, 2024 and a notional value of $100.0 million, which effectively fixes the interest rate at 5.31% annually, based on our consolidated leverage ratio as defined in our 2016 term loan facility agreement.

Current wording

Our 2016 term loan facility is subject to three interest rate swaps with an effective date of December 23, 2024 and a notional value of $100.0 million, which effectively fixes the interest rate at 5.21% annually, based on our consolidated leverage ratio as defined in our 2016 term loan facility agreement.

Previous wording

As of both March 31, 2026 and the date of this filing, the outstanding balance of the Construction Loan receivable was $35.6 million and our remaining obligation to fund was $0.4 million. We expect to fund the remaining commitment through the anticipated maturity of the Construction Loan on August 31, 2027, dependent on the borrower’s election to use the commitments. For a more complete description of the Construction Loan, see Note 5 to the Consolidated Financial Statements.

Current wording

We entered into a construction loan agreement on August 6, 2024 (the “Construction Loan”) to lend up to $52.1 million to a developer (the “Borrower”). The Construction Loan bears interest at a fixed rate of 9.00% per annum and matures on August 31, 2027. As of both June 30, 2026 and the date of this filing, the outstanding balance of the Construction Loan receivable was $35.6 million and have no remaining obligation to fund. For a more complete description of the Construction Loan, see Note 5 to the Consolidated Financial Statements.

Previous wording

Other than as described above, during the three months ended March 31, 2026, there were no material changes to the cash commitment information presented in Item 7 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

Other than as described above, during the six months ended June 30, 2026, there were no material changes to the cash commitment information presented in Item 7 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2025.

Previous wording

As of March 31, 2026, we had invested $304.1 million in the JV. As of March 31, 2026, we had committed capital, net of return of over committed capital, to the JV totaling $332.9 million and had a remaining commitment of $8.5 million available. None of the properties owned by the JV are encumbered by mortgage indebtedness.

Current wording

As of June 30, 2026, our investment in the JV is $300.0 million. As of June 30, 2026, we had committed capital, net of return of over committed capital, to the JV totaling $332.9 million and had a remaining commitment of $8.5 million available. None of the properties owned by the JV are encumbered by mortgage indebtedness.

Previous wording

The following table sets forth a summary of cash flows for the three months ended March 31, 2026 and 2025 (amounts in thousands):

Current wording

The following table sets forth a summary of cash flows for the six months ended June 30, 2026 and 2025 (amounts in thousands):

Previous wording

We generated $27.3 million and $24.2 million of cash from operating activities during the three months ended March 31, 2026 and 2025, respectively. Net cash provided by operating activities for the three months ended March 31, 2026 includes $30.5 million in net cash from rental activities net of expenses and $2.3 million related to distributions from investment in unconsolidated real estate venture offset by $5.5 million related to the change in tenant accounts receivable, prepaid expenses and other assets, real estate loan interest receivable, deferred revenue associated with operating leases, principal payments on operating lease obligations, principal repayment of sales-type lease, and accounts payable, accrued expenses and other liabilities. Net cash provided by operating activities for the three months ended March 31, 2025 includes $28.5 million in net cash from rental activities net of expenses and $3.8 million related to distributions from investment in unconsolidated real estate venture, offset by $8.1 million related to the change in tenant accounts receivable, prepaid expenses 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.

Current wording

We generated $71.9 million and $62.3 million of cash from operating activities during the six months ended June 30, 2026 and 2025, respectively. Net cash provided by operating activities for the six months ended June 30, 2026 includes $61.5 million in net cash from rental activities net of expenses, $8.0 million related to distributions from investment in unconsolidated real estate venture and $2.4 million related to the change in tenant accounts receivable, prepaid expenses and other assets, real estate loan interest receivable, deferred revenue associated with operating leases, principal payments on operating lease obligations, principal repayment of sales-type lease, and accounts payable, accrued expenses and other liabilities. Net cash provided by operating activities for the six months ended June 30, 2025 includes $59.0 million in net cash from rental activities net of expenses and $9.7 million related to distributions from investment in unconsolidated real estate venture, offset by $6.4 million related to the change in tenant accounts receivable, prepaid expenses 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.

Previous wording

We used $73.4 million and $45.2 million in cash for investing activities during the three months ended March 31, 2026 and 2025, respectively. Net cash used in investing activities for the three months ended March 31, 2026 includes $43.2 million in real estate acquisitions and deposits, $17.8 million in additions to development properties, $6.9 million in investments in real estate loans receivable, net and $5.5 million in additions to operating properties. Net cash used in investing activities for the three months ended March 31, 2025 includes $20.8 million in additions to development properties, $8.6 million in additions to operating properties, $8.5 million in investment in real estate loan receivable, net and $7.3 million in real estate acquisitions and deposits.

Current wording

We used $109.0 million and $191.9 million in cash for investing activities during the six months ended June 30, 2026 and 2025, respectively. Net cash used in investing activities for the six months ended June 30, 2026 includes $44.5 million in additions to development properties, $43.5 million in real estate acquisitions and deposits, $14.7 million in additions to operating properties and $6.9 million in investments in real estate loans receivable, net offset by $0.6 million in repayment of note receivable. Net cash used in investing activities for the six months ended June 30, 2025 includes $144.8 million in real estate acquisitions and deposits, $36.0 million in additions to development properties, $15.7 million in additions to operating properties, offset by $4.6 million in repayment of (investment in) real estate loan receivable, net.

Previous wording

We generated $25.1 million and $10.7 million in cash from financing activities during the three months ended March 31, 2026 and 2025, respectively. Net cash generated in financing activities for the three months ended March 31, 2026 includes $46.0 million in net draws under our 2024 revolving credit facility and $2.2 million in gross proceeds from issuance of shares of our common stock offset by $21.8 million in dividend payments, $1.2 million in mortgage notes payable repayment and less than $0.1 million in the payment of offering costs. Net cash generated by financing activities for the three months ended March 31, 2025 includes $125.0 million in note payable issuances and $41.3 million in gross proceeds from issuance of shares of our common stock, offset by $119.5 million in net paydowns under our 2024 revolving credit facility, $30.2 million in dividend payments, $2.3 million in deferred financing costs, $1.9 million in treasury lock settlement, $1.1 million in mortgage notes payable repayment and $0.4 million in the payment of offering costs.

Current wording

We generated $17.1 million and $115.9 million in cash from financing activities during the six months ended June 30, 2026 and 2025, respectively. Net cash generated in financing activities for the six months ended June 30, 2026 includes $200.0 million in term loan draws on our 2026 term loan facility, $21.2 million in gross proceeds from issuance of shares of our common stock offset by $156.0 million in net paydowns under our 2024 revolving credit facility, $43.7 million in dividend payments, $2.4 million in mortgage notes payable repayment, $1.8 million in deferred financing costs and $0.2 million in the payment of offering costs. Net cash generated by financing activities for the six months ended June 30, 2025 includes $125.0 million in note payable issuances, $46.6 million in gross proceeds from issuance of shares of our common stock and $3.0 million in net draws under our 2024 revolving credit facility, offset by $51.6 million in dividend payments, $2.5 million in deferred financing costs, $2.3 million in mortgage notes payable repayment, $1.9 million in treasury lock settlement and $0.5 million in the payment of offering costs.

Previous wording

The following table sets forth a reconciliation of our net income to FFO and Core FFO for the three months ended March 31, 2026 and 2025 (amounts in thousands):

Current wording

The following table sets forth a reconciliation of our net income to FFO and Core FFO for the three and six months ended June 30, 2026 and 2025 (amounts in thousands):

Previous wording

Our Annual Report on Form 10-K for the year ended December 31, 2025 contains a discussion of our significant accounting policies, which utilize relevant critical accounting estimates. During the three months ended March 31, 2026, there were no material changes to the discussion of our significant accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Current wording

Our Annual Report on Form 10-K for the year ended December 31, 2025 contains a discussion of our significant accounting policies, which utilize relevant critical accounting estimates. During the six months ended June 30, 2026, there were no material changes to the discussion of our significant accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2025.