Easterly Government Properties(DEA) - 2023 Q2 - Quarterly Report

Financial Performance - Total revenues for Q2 2023 were $71,373,000, a decrease of 1.9$72,757,000 in Q2 2022[8] - Net income for Q2 2023 was $5,778,000, down 29.5$8,130,000 in Q2 2022[10] - Comprehensive income for Q2 2023 was $8,885,000, down from$11,033,000 in Q2 2022[10] - Net income for the six months ended June 30, 2023, was $10,192,000, a decrease of 37.5$16,393,000 in 2022[12] - Basic and diluted earnings per share (EPS) for Q2 2023 were both $0.05, compared to$0.08 in Q2 2022, reflecting a 37.5% decrease[74] - The company's share of net income for the six months ended June 30, 2023, was $2,820,000, compared to$1,456,000 for the same period in 2022, indicating a significant growth[34] Revenue Sources - Rental income decreased to $67,758,000 in Q2 2023 from$71,156,000 in Q2 2022, reflecting a decline of 4.5%[8] - Revenue from tenant construction projects for Q2 2023 was $2.765 million, significantly up from$1.102 million in Q2 2022, marking a 150.5% increase[82] - Asset management income for Q2 2023 was $0.5 million, an increase from$0.3 million in Q2 2022, representing a 66.7% growth[90] - The company recognized $0.1 million in parking garage income for both Q2 2023 and Q2 2022, indicating stable revenue from this source[84] Assets and Liabilities - Total assets as of June 30, 2023, were$2,807,963,000, a slight decrease from $2,829,385,000 as of December 31, 2022[6] - Total liabilities decreased to$1,385,896,000 as of June 30, 2023, from $1,418,403,000 at the end of 2022[6] - The total debt as of June 30, 2023, was$1,221,180,000, with a revolving credit facility of $53,000,000 and various term loan facilities totaling$250,000,000[35] - The balance in accounts receivable related to tenant construction projects was $8.2 million as of June 30, 2023, up from$6.8 million at the end of 2022[82] Cash Flow and Investments - The company reported a net cash provided by operating activities of $59,052,000 for the six months ended June 30, 2023[12] - Net cash used in investing activities was$20,967,000, significantly lower than $147,028,000 in the prior year[12] - Cash paid for interest increased to$23,555,000 in 2023 from $21,766,000 in 2022, reflecting a rise of 8.2$1,422,067, reflecting a net income of $5,778 for the three months ended June 30, 2023[63] - The company declared dividends of$0.265 per common share for both Q2 2023 and Q2 2022[8] - The balance of common stock increased to 93,415,706 shares by June 30, 2023, up from 90,814,021 shares at the end of 2022[65] Real Estate and Occupancy - As of June 30, 2023, the company wholly owned 78 operating properties and had an occupancy rate of 98% across approximately 8.6 million leased square feet[19] - The total real estate properties, net, amounted to $2,270,435,000, with land valued at$213,592,000 and buildings and improvements at $2,292,532,000[26] - The U.S. Government accounted for approximately 98.5$300.0 million, designated as cash flow hedges of interest rate risk[39] - The fair value of interest rate swaps as of June 30, 2023, was recorded as an asset of $5,114,000[45] - The company estimates that$4.3 million will be reclassified from Accumulated Other Comprehensive Income (AOCI) as a decrease to interest expense over the next 12 months[47] Compensation and Equity Awards - The total compensation expense related to restricted common stock awards was $0.3 million for the six months ended June 30, 2023[54] - The fair value of LTIP units that vested was$4.0 million during the six months ended June 30, 2023[61] - The company granted 515,465 LTIP units during the six months ended June 30, 2023[58]