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 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.

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 September 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 primarily to tenant agencies of a U.S. state or local government and five operating properties that were entirely leased to private tenants. As of September 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

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.

Current wording

As of September 30, 2026, our operating properties were 98% leased with a weighted average annualized lease income per leased square foot of $36.80 ($36.52 pro rata) and a weighted average age of approximately 17.4 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 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.

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 21.3 years as of September 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 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.

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 September 30, 2026, six U.S. Government tenants occupying approximately 2.3% of our leased square feet and contributing approximately 2.3% 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 $9.3 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 quarter ended June 30, 2025.

Current wording

The $7.8 million increase in Rental income is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the one operating property acquired during the quarter ended September 30, 2025.

Previous wording

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

Current wording

The $0.7 million decrease in tenant reimbursements is primarily attributable to a decrease in reimbursable tenant project activity.

Previous wording

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

Current wording

The $0.3 million increase in Other income is primarily attributable to an increase in miscellaneous income.

Previous wording

The $0.8 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 quarter ended June 30, 2025.

Current wording

The $2.2 million increase in Property operating expenses is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the one operating property acquired during the quarter ended September 30, 2025.

Previous 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.

Current wording

The $0.2 million increase in Real estate taxes is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the one operating property acquired during the quarter ended September 30, 2025.

Previous wording

The $3.6 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 quarter ended June 30, 2025.

Current wording

The $2.0 million increase in Depreciation and amortization is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the one operating property acquired during the quarter ended September 30, 2025.

Previous wording

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

Current wording

The $1.4 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 decrease in Income from unconsolidated real estate venture is primarily attributable to higher operating expenses during the six months ended June 30, 2026.

Current wording

The $0.2 million increase in Income from unconsolidated real estate venture is primarily attributable to lower operating expenses during the quarter ended September 30, 2026.

Previous wording

The $3.3 million increase in Interest expense, net is primarily attributable to higher weighted average borrowings.

Current wording

The $1.0 million increase in Interest expense, net is primarily attributable to higher weighted average borrowings and higher interest rates.

Previous wording

Comparison of Results of Operations for the six months ended June 30, 2026 and 2025

Current wording

Comparison of Results of Operations for the nine months ended September 30, 2026 and 2025

Previous wording

The financial information presented below summarizes our results of operations for the six months ended June 30, 2026 and 2025 (amounts in thousands).

Current wording

The financial information presented below summarizes our results of operations for the nine months ended September 30, 2026 and 2025 (amounts in thousands).

Previous 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.

Current wording

The $30.2 million increase in Rental income is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the three operating properties acquired during the nine months ended September 30, 2025.

Previous wording

The $1.8 million decrease in tenant reimbursements is primarily attributable to a decrease in reimbursable tenant project activity.

Current wording

The $2.5 million decrease in tenant reimbursements is primarily attributable to a decrease in reimbursable tenant project activity.

Previous 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.

Current wording

The $0.2 million increase in Asset management income is primarily attributable to the fee earned by us for asset management of the JV.

Previous wording

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

Current wording

The $0.7 million increase in Other income is primarily attributable to an increase in interest income on our loans receivable and miscellaneous income.

Previous 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.

Current wording

The $5.7 million increase in Property operating expenses is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the three operating properties acquired during the nine months ended September 30, 2025.

Previous wording

The $1.2 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 six months ended June 30, 2025.

Current wording

The $1.4 million increase in Real estate taxes is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the three operating properties acquired during the nine months ended September 30, 2025.

Previous 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.

Current wording

The $12.1 million increase in Depreciation and amortization is primarily attributable to the three operating properties acquired since September 30, 2025, one development property placed into service since September 30, 2025 and a full period of operations from the three operating properties acquired during the nine months ended September 30, 2025.

Previous wording

The $4.4 million increase in Corporate general and administrative is primarily due to an increase in employee costs and non-cash compensation.

Current wording

The $5.8 million increase in Corporate general and administrative is primarily due to an increase in employee costs and non-cash compensation.

Previous wording

The $0.7 million decrease in Recovery of credit losses is primarily due to a downward adjustment to our credit loss allowance for a $15.0 million paydown of Real estate loan receivable in April 2025 and change in market conditions.

Current wording

The $0.4 million increase in Recovery of credit losses is primarily due to a downward adjustment to our credit loss allowance for a cumulative $50.6 million repayment of the DEA Bedford Real estate loan receivable in April 2025 and September 2026 and change in market conditions.

Previous wording

The $0.2 million decrease in Income from unconsolidated real estate venture is primarily attributable to higher operating expenses during the quarter ended June 30, 2026.

Current wording

The $0.2 million decrease in Income from unconsolidated real estate venture is primarily attributable to higher operating expenses during the nine months ended September 30, 2026.

Previous wording

The $1.5 million increase in Interest expense, net is primarily attributable to higher weighted average borrowings.

Current wording

The $4.3 million increase in Interest expense, net is primarily attributable to higher weighted average borrowings.

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 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.

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 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 September 30, 2026, we had approximately $2.9 million available in cash and cash equivalents, $8.8 million of restricted cash and there was approximately $383.8 million available under our 2024 revolving credit facility.

Previous 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;

Current wording

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

Previous wording

We entered into an equity distribution agreement on June 22, 2021 (the “2021 ATM Program”) with various financial institutions. 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. Under the 2021 ATM Program, 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 2021 ATM Program for the sale of shares of our common stock on a forward basis.

Current wording

We entered into equity distribution agreements on June 22, 2021 with various financial institutions relating to our $300.0 million “at the market” equity offering program (the “2021 ATM Program”). On August 4, 2026, we entered into amended and restated equity distribution agreements governing the 2021 ATM Program in order to, among other things, permit our entry into contingent forward transactions, as described below. 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. Under the 2021 ATM Program, we may enter into one or more forward transactions, including transactions on a contingent and non-contingent basis (each, a “forward sale transaction”), under separate master forward sale confirmations and related supplemental confirmations with certain financial institutions party to the amended and restated agreements governing the 2021 ATM Program for the sale of shares of our common stock on a forward basis.

Previous 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):

Current wording

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

Previous wording

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

Current wording

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

Previous 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%.

Current wording

Effective interest rates are as follows: 2016 term loan facility 5.49%, 2018 term loan facility 5.43%, 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%, ICE – Charleston 3.93%, VA – Loma Linda 3.78%, CBP – Savannah 4.12%.

Previous 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.

Current wording

At September 30, 2026, the USD secured overnight financing rate (“SOFR”) with a five day lookback was 3.87%. 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 $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.

Current wording

Our $400.0 million senior unsecured 2024 revolving credit facility had available capacity of $383.8 million at September 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 2018 term loan facility is subject to three interest rate swaps, of which one has an effective date of March 24, 2025 and two of the swaps have an effective date of June 30, 2025. The three swaps have an aggregate notional value of $200.0 million, which effectively fixes the interest rate at 5.09% annually, based on our consolidated leverage ratio as defined in our 2018 term loan facility agreement.

Current wording

Our 2018 term loan facility is subject to three interest rate swaps, of which one has an effective date of March 24, 2025 and two of the swaps have an effective date of June 30, 2025. The three swaps have an aggregate notional value of $200.0 million, which effectively fixes the interest rate at 4.99% annually, based on our consolidated leverage ratio as defined in our 2018 term loan facility agreement.

Previous wording

On June 25, 2026, we entered into the eleventh amendment to our 2016 term loan facility to remove the credit spread adjustment applicable to SOFR-based borrowings, consistent with our 2026 term loan facility.

Current wording

On June 25, 2026, we entered into the eleventh amendment to our 2016 term loan facility to remove the credit spread adjustment applicable to SOFR-based borrowings, consistent with the terms of our 2026 term loan facility.

Previous 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.

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”). On September 3, 2026, the Borrower repaid the remaining $35.6 million outstanding under the Construction Loan, inclusive of accrued interest. No cash commitments remain on the Construction Loan as of September 30, 2026. During the nine months ended September 30, 2026, there were no other 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 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.

Current wording

As of September 30, 2026, our investment in the JV is $294.1 million. As of September 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 $11.6 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 six months ended June 30, 2026 and 2025 (amounts in thousands):

Current wording

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

Previous 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.

Current wording

We generated $119.3 million and $217.3 million of cash from operating activities during the nine months ended September 30, 2026 and 2025, respectively. Net cash provided by operating activities for the nine months ended September 30, 2026 includes $93.3 million in net cash from rental activities net of expenses, $13.4 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 and $12.6 million related to distributions from investment in unconsolidated real estate venture. Net cash provided by operating activities for the nine months ended September 30, 2025 includes $111.0 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, $91.1 million in net cash from rental activities net of expenses and $15.2 million related to distributions from investment in unconsolidated real estate venture.