Easterly Government Properties at Nareit REITweek: Strategic Shifts and Growth

On Tuesday, 03 June 2025, Easterly Government Properties (NYSE:DEA) presented at the Nareit REITweek: 2025 Investor Conference, offering insights into its strategic direction. The company, known for leasing to mission-critical US government agencies, is expanding its portfolio to include state and local leases. While this diversification aims for growth, challenges such as a recent dividend cut and a reverse stock split were also addressed.

Key Takeaways

• Easterly is expanding beyond federal leases to include state and local government properties.
• The company aims for 2% to 3% earnings growth, with a target of 30% of its portfolio in state and local leases.
• A 32% dividend cut was implemented to align yields with industry peers.
• The Disposal of Excess Government Properties (DOGE) is seen as a potential growth opportunity.
• Easterly’s average lease term is approximately 10 years, with significant rent coming from the US government.

Financial Results

• Weighted average lease term: approximately 10 years
• Rent from US government: $3 billion
• Potential rent with lease renewals: nearly $6 billion
• Target earnings growth: 2% to 3% annually
• Dividend cut: 32%, aligning yields with peers
• Average lease spread since IPO: 16%

Operational Updates

• Focus on mission-critical properties for agencies like the FBI, DEA, and Veterans Administration
• Expansion into state and local government leases, targeting public safety and schools
• Notable projects include a Homeland Security Building in Atlanta and an FDA lab
• Recent 15-year courthouse lease renewal in Aberdeen

Future Outlook

• DOGE expected to be a tailwind, encouraging government leasing
• Aim for mid- to high-teens net effective rent spreads on renewals
• Anticipate retention rates in the mid-90s for renewals
• Continued capital formation around business opportunities

Q&A Highlights

• Interest rates: Lower rates would aid growth; current all-in rates are 6% to 6.5%
• DOGE impact: Seen as beneficial for taxpayers and business

Readers are encouraged to refer to the full transcript for more detailed insights.

Full transcript - Nareit REITweek: 2025 Investor Conference:

John Kim, Moderator, BMO Capital Markets: Good morning, everyone. My name is John Kim with BMO Capital Markets. It’s my pleasure to be moderating this presentation of Easterly Government. With me today, Daryl Crate, CEO and Allison Marino, Chief Financial Officer of the company.

I thought maybe we’d just start off with opening remarks and why investors should invest in DEA today.

Daryl Crate, CEO, Easterly Government Properties: Great. Yeah. So so so for those of you who aren’t familiar with Easterly Government Properties, we focus on properties that are mission critical, being a being the landlord to the United States government. We focus on mission critical agencies like the FBI, like the like the Drug Enforcement Administration, the Veterans Administration. We’re gonna, you know, functions that the government provides that every taxpayer would agree, you know, is a good use of taxpayer funds.

They wouldn’t give us FBI as the ticker. They would give us DEA. So we’re very excited to continue to hold that moniker. We’re not an office REIT, and I’ll talk a little bit about the structure of how we think about our business and creating value for shareholders. We very much underwrite each individual agency, what they’re doing in the facility that’s most mission critical.

Not surprising, we own zero, zero federal real estate in the Washington D. Area. Why? Because that isn’t the most mission critical areas for the FBI, for the Veterans Administration, the Drug Enforcement Administration. Sometimes it seems like Washington is on drugs, but the drugs are actually in the Southwest part of the country, Contrary to some people thinking they come from the Canadian border too, it really is the Southern border is where we drug interdiction works.

And if you if any of you ever wanna go on the tour of one of our DEA drug labs, you will be fascinated to see what goes on there. Maybe just to go down that rabbit hole for five seconds, this lab we have machines that are again on a very stable flooring in special rooms, but you can take any organic drugs, stick it in the machine, you know, go listen to a podcast in the other room, come back, and it will basically tell you the zip code of where that drug originated. Our drug enforcement agency knows exactly where every organic drug that’s in this country comes from in the world, and they know who is growing it, who’s making it, all this stuff, and then they’re continuing to execute the war on drugs. In the synthetic drug world, also crazy stuff happening, it’s a constant cat and mouse game between the manufacturers of the drugs trying to The way a synthetic drug becomes illegal in The United States is a molecule gets designated on the bad drug list, like the no fly list of molecules. But what’s constantly happening is these manufacturers are modifying the drug just a little bit, modifying that molecule so it still has the same impact on the folks who are taking the drugs, and then our lab identifies the molecule change, you know, does the red line to Congress, Congress says, this is one of the naughty ones, and it goes on the list.

That’s the type of work that’s happening in these facilities, in our facilities, for a broad set of agencies all across the country. Our weighted average lease term is approximately ten years and the way we think about this is again leases to the most mission critical organizations. We currently have about $3,000,000,000 of rent coming from the US government. And again, as we work on renewing our leases, we have very long term leases with the government. Sadly, those leases are flat and we’ll probably get into that a little bit.

And then when they renew, we see double digit increases in rents. We have staggered set of maturity of leases, so it takes a little time for them to catch up. I’m sure we’ll talk a little bit about that as well. And if we make modest assumptions about renewal rates, we’ll be collecting nearly $6,000,000,000 while facing full faith in credit at the end of the US government, which is very attractive to where we are with our valuation. So, we’re excited about what we do.

I took this job over a little over a year ago while I was one of the founders of the company. I chaired it, but as we were looking at where we were growing, how we were thinking about investors a little over eighteen months ago, we decided to switch things up a bit. We laid out a strategy and we’re executing on it each and every day.

John Kim, Moderator, BMO Capital Markets: I would love to know who owns the FBI ticker.

Allison Marino, Chief Financial Officer, Easterly Government Properties: I don’t think they give it.

Daryl Crate, CEO, Easterly Government Properties: Yes. No.

John Kim, Moderator, BMO Capital Markets: So you mentioned the revised strategy. When took over the CEO role, the new strategy is to deliver consistent earnings growth of 2% to 3% and to expand the footprint beyond GSA leases. Can you just talk about how you came up with that strategy?

Daryl Crate, CEO, Easterly Government Properties: Yes. So one of the things you noticed is obviously our job is to create value for shareholders in the capital markets. When we founded the company, there was a simple premise, buy the real estate, sell the credit. And the reality is that our portfolio can support more leverage than other real estate portfolios that are out there because it’s full faith and credit of the U. S.

Government for a very long period of time. We also call it real estate without the drama. That’s before Elon and his crew stepped in. But I continue to say, we’re real estate without the drama because we know what our tenant’s doing, there’s not a lot of confusion, and I promise you these agencies will be doing approximately the very same thing ten years from now as they are today. However, when we looked at the equity markets, one thing you never want to be is over in the left hand side of a distribution curve.

We were the safest REIT of all the 172 REITs that are out there. We had the best credit quality. Whenever you’re the best, your your marginal reward for being best is is not very high. And so, it became clear that our equity investors want a little more growth and we can achieve a little bit more growth by putting just a little bit more risk into the portfolio. So, by taking 30% of our portfolio, we’ve achieved probably 5% of that.

We’re going to continue to be disciplined, but we’ll get there. If about 30% of our portfolio is in state and local leases as well as what we call government adjacent, those leases are structured like the triple net commercial lease that many people are familiar with. And in doing so, if those escalators, let’s do just like simple math, are just 2% a year, 2% a year times 30, we’re gonna get 60 basis points of same store sale growth. And it turns out as we look at as we comp the universe, basically what gets support in the capital markets, if we’re growing our business at 3% to 4% a year, and we certainly can do that especially if we have 60 basis points of additional same store sales growth, we’re putting ourselves in a place where the capital markets is getting what it likes best. And so, that’s the strategy that we’re executing on.

The buildings that we’re purchasing at state and local level are mission critical to state and local activities. That is generally public safety and schools. And then in the government adjacent, we’re buying buildings that look very much like the same buildings that we have in the law enforcement areas. Lots of skiff space, special space, secure space. Basically, Northrop Grubman is one of our tenants, very high credit tenants, and they’re just doing the work related to the Buckley Space Center.

Again, the mission stuff and these look just like an FBI.

John Kim, Moderator, BMO Capital Markets: I don’t think you mentioned the term Doge yet, but you mentioned Elon Musk. But when you think of government leases, you think that Doge is gonna have an impact on your portfolio. What’s been the impact so far from Doge?

Daryl Crate, CEO, Easterly Government Properties: I mean, we’ve had zero leases canceled through Doge, which is again not surprising. You know, I did have a life in politics for a period of time, worked very closely with Mitt Romney trying to make him president. Was not successful at that. But learned had a real window into these agencies and how our government works. And, we’ve been underwriting to Doge before Doge was created.

There are very efficient, amazing parts of the US government that are delivering services to the taxpayers that would, I promise you, make you wanna pay more taxes. There’s also a bunch of crap that’s going on in the government that would just make you angry. And so, we’ve been very focused on aligning ourselves with those places where mission is accomplished in an efficient way. Our partnership with the government is we’re good at real estate, they’re good at catching criminals. We know that we can deliver a square foot of office space to the US government for cheaper than they can build it, craft it and maintain it themselves, simply because it’s what we do.

Allison has so appropriately said, the government just needs to catch up and start having the asset light model that’s been adopted by corporate America for the better part of the last twenty or thirty years. And so, they should continue to catch criminals, will continue to deliver very low cost space that doesn’t become obsolete. Today, the US government has $80,000,000,000 of deferred maintenance in the buildings that they own themselves. They’ve publicly said that they want to rely to a greater extent on leasing those properties. So, us, Doge is an enormous tailwind that’s coming.

The reality is we work in government, sort of on government time. So, this tailwind, you’re gonna start seeing it by the time we’re gonna get through this budget cycle, we’re gonna move into next year and the year after, but you’re gonna see this migration to lease space. And I would challenge anybody to say they’re better at this than we are. In our company, we have people who’ve worked in government, who are knowledgeable about government, we’ve got a knowledge about real estate, and we’ve been maintaining over a hundred buildings for the US government in a way that really helps them emphasize mission. So we actually couldn’t be more excited about Doge.

We need this overhang to end so we can start having some capital that’s a little cheaper and we’re gonna continue to be prudent and deliberate and not get super expensive capital and put it to waste. But we’re super excited about what Doge represents and how it’s finally kicked the government in the ass so that they are gonna start focusing on efficient real estate ownership.

John Kim, Moderator, BMO Capital Markets: Okay. So this might be a question for Alison, but despite the lack of impact on Doge, you did announce a dividend cut, 32% dividend cut and a reverse stock split one for 2.5. What has been the impact on that with shareholders and has this been basically a clearing event for new investors looking at your stock?

Allison Marino, Chief Financial Officer, Easterly Government Properties: Yeah, we were very thoughtful in our decision making around those two topics and particularly with respect to the dividend. When we look forward at the pipeline of opportunity that we are seeing in the market, we were not being valued in our opinion for the dividend yield that we had at the time. We felt it was the right decision for a number of reasons including freeing up that capital to go deploy into more accretive opportunities like continuing to grow the pipeline, but we also recognize the yield was not right sized with our peers. So by undertaking that decision, we have effectively sort of put ourselves back into a yield that we feel is valued by investors and where you can see the trajectory of our stock price since the announcement after the effect of the cut, we’ve really are more or less back within 2% where we were from a stock price perspective. So we feel it was largely priced in and that equity investors have been very receptive to it because of the fact that they believe in the pipeline that we see as well.

John Kim, Moderator, BMO Capital Markets: Can you talk about the specific agencies that you target for leasing since you’ve been a public company? And there’s a very interesting slide in your presentation about federal missions. You bucket out the different agencies into federal missions which include law enforcement, safety and security, veteran care and so forth. Can you discuss the characteristics of these missions and why they are attractive to your company?

Allison Marino, Chief Financial Officer, Easterly Government Properties: Sure. So when we went public, we predominantly had exposure to DEA and FBI and as we’ve continued to grow and that was a lot driven by what Daryl shared around rule of law. Those agencies were one of the first to move to a least alternative largely and broadly throughout The US. The FBI and the DA needs state of the art and well maintained space. So that was a large portion of our portfolio when we went public.

As we have looked to grow the portfolio, the Veterans Administration is another agency where it has grown significantly. We had no Veterans Affairs exposure when we went public. We’re about 26% today. That’s been an incredibly important investment for us as we’ve continued to grow and these are state of the art medical facilities where veterans can receive care. The CBOC program is largely remissioning of the care system for veterans.

When you walk into one of these facilities, it serves as a de facto gathering place for the veteran community in the area which is really heartwarming to see, but as veterans go to receive care, they go to one place versus the old mission sort of had you getting your glasses in a strip mall in one place and your prosthetics in another. This is a one stop shop for medical care which we feel is very important to the continued longevity of the agency and the mission that they are trying to serve which is care. So you can sort of go in as a veteran and you sit in one room and all of the doctors rotate in to see you. So for us as we look to continuing to expand the portfolio, it’s not necessarily agency specific, but when we walk into a building we want to understand how is the real estate being used, how important is the real estate to serving the mission of the agency itself and do we feel like the stickiness of the building is something that’s going to lead to a renewal, the next renewal, two, three renewals out. That can look very different across our portfolio.

We have a Homeland Security Building in Atlanta that’s adjacent to the Hartfield Airport. It serves a really important function for the air marshals. They have a replica airplane fuselage built into the Second Floor of that building where they run drills. They have a gym with all of the equipment you would need to learn advanced martial arts. They have a control center where you can see every flight going in and out of Hartfield and where federal air marshals are deployed on those flights.

So for us, when you drive up to it, it’s a box and you would never think, oh gosh, that thing really serves such a purpose and then you walk in and you immediately and instinctually know why we bought it. So that’s a wonderful example I think of where it’s not the agency in the three letters, it’s walking in the door and truly trying to understand from an underwriting perspective how it’s continuing to serve government.

Daryl Crate, CEO, Easterly Government Properties: One of the things that’s very amusing when you go into this facility because they really do control where all the air marshals are And it it is right out of a movie set with, you know, screens everywhere, all the all the flights that are that are going, threats that are coming in figuring out. But there’s one little TV they have over in the corner that’s playing like airplane, you know, or some other, you know, sort of a, you know, pop movie about aviation that’s always, you know, sort of kind of amusing. But I think Allison’s story is a really important one because this facilitates mission. We got to see, you know, in this fuselage. Let me just tell you, they’re not gonna let you get a gun on the airplane, but you’ve got like three seconds if you ever pull one out to get neutralized and it’s how it works and they’re training for that in these facilities each and every day.

John Kim, Moderator, BMO Capital Markets: Can you discuss your acquisition pipeline today? What it looks like? Where are cap rates today for GSA assets and non GSA assets? You bought something in DC for like a 9% cap rate. Is that what we should expect going forward?

Daryl Crate, CEO, Easterly Government Properties: I mean, we’ll ham and egg this. But if you look at again federal properties, you’re going to see cap rates that are for the longest lease terms in the low sevens we’re, you know, there are opportunities today that we find that are robust in our pipeline because there are folks who put debt on these properties, and because, you know, the rent rolls are so robust, banks lent a considerable amount of money against them. Because of Doge and Doge concerns, we’ve identified all the owners who have debt that’s maturing that’s not, you know, lent by a big bank that has the resources to try and understand Doge. These are regional banks where, let me just tell you, you’re not gonna put your career on the line because you’re gonna say that Doge is not a problem for this individual borrower. Those people are under pressure, so we think we’re gonna be able to buy some buildings that may be at a higher cap rate.

We do need our stock price to get higher, so anybody who wants to help us with that, please feel free. You can step in right now. Markets are open. But it’s our pipeline becomes very robust as we get sort of another fifty, sixty basis points of cheaper capital. We do have a joint venture partner, we do have some other capital resources that we’re very excited to continue to put to work.

But as I’ve said, Doge is a tailwind for us. It’s giving us great opportunity. Other thing about Doge is that the US government is now thinking very pragmatically about who they partner with, particularly around development. For the longest time, they didn’t look at the balance sheet of their developers. There are over a dozen projects today that are on hold because they rewarded them, to a team that bid low to fix a VA, had a veteran, and for other criteria that may be something other than knowing how to build a building, build it well and have the balance sheet to do it quickly.

And so the government has reoriented itself to find a good partner. We look at our building in Atlanta, crazy enough, very large FDA lab that we’re building. They owe us a hundred and $15,000,000 of money we’ve just advanced to them that’s gonna come back to us in a lump sum payment. Do you know how long it takes to get a $115,000,000 check from the US government? It doesn’t they’re not big on using the wire system.

So, it’s been months. But for any normal developer who didn’t have the balance sheet and the tolerance of investors like you, this project would be in the dust. And so, the government is now understanding that in order to get things done, get things done quickly, which is now important to them, we’re sort of a partner of choice in a whole set of ways.

Allison Marino, Chief Financial Officer, Easterly Government Properties: Touching on cap rates a bit more, as we look to state and local and the government adjacent space, they are in the higher end of that range. So they may start in the sevens, but they certainly go up to the high nines. Where we are today, we’re looking to create a spread to our cost of capital. We are spread investing at the heart of it. So between 5,100 basis points is what we look to achieve.

Obviously, more is better and cheaper cost of capital makes a lot of things easier. But in terms of recent acquisitions, you’ve seen us invest most recently in the last six months in that state and local space. It’s one of our stated objectives to grow that to 15% of the portfolio and that’s been a really unique place for us to see cap rates that have allowed us to execute, but also picked up buildings that where we bring our underwriting expertise around stickiness, mission, credit, long term nature of the leases and many of these states have at today’s point a higher credit rating than federal government. So we’re still getting the credit lens that we have always brought to federal space, but we’re also seeing stickiness in all of the good things we like about the feds in that state and local space. Same thing on the government adjacent side, understanding high credit government adjacent.

You may be asking yourself if you’re not as familiar with us, what does that even mean? Is that proximity? And yes, certainly it’s proximity as we look to invest in that area, but it is also designed around mission. Are they serving an essential government purpose or fulfilling an essential government need as a private sector organization? So cap rates are I would say widely between seven and nine where we’ve most recently executed are in the nines.

Our DHS Burlington asset was acquired in the low nines and our DC Plaza which is the home of a lot of DC Government real estate. Our first investment in that space in the District Of Columbia is in the high nines.

John Kim, Moderator, BMO Capital Markets: Also in your presentation, you discussed since your IPO, you’ve renewed 1,700,000 square feet with an average lease spread of 16%. Can you just discuss whether or not that’s typical when you do a renewal and what percentage of leases that expire do you eventually renew versus let it expire?

Allison Marino, Chief Financial Officer, Easterly Government Properties: Yes. So over the history since IPO, we’re in that mid to high teens net effective rent spread on renewal. As Daryl mentioned earlier, we have about 5% of leases roll in any given year, so we’re able to pick up that really nice rent spread. That is an average. There are certainly factors that go into each procurement process and without boring you on all the acronyms of how the government works through that process, some are certainly more than the average, some are less.

I’m sure you can imagine that’s why we give an average, but broadly we do expect the portfolio to continue to perform at that level on an average basis and even as we look forward to the new class of renewals as well. Typically a renewal lease is between ten and fifteen years, So that is ensuring the continued laddering and maturity profile that we have always had.

Daryl Crate, CEO, Easterly Government Properties: Allison, are there any leases that were

Allison Marino, Chief Financial Officer, Easterly Government Properties: recently Oh, I’m happy you asked, Darryl. Late last week we did renew our courthouse in Aberdeen, is on our set of expirations for this year. At March 31, it is about a half a percent of annualized lease income. We renewed that deal for fifteen years firm. So, I want to touch on that point a little bit because Are

Daryl Crate, CEO, Easterly Government Properties: there any step ups in that lease, Hal?

Allison Marino, Chief Financial Officer, Easterly Government Properties: In fact, there are. So, there are escalations within that lease. That is something we have attempted to get more into what is historically a government flat lease. So this lease does have cash rent escalations as we move through that fifteen years. Something important I think to note because of the headlines around Doge, firm term is completely non cancelable for the federal government.

So that is another fifteen years where you’re contractually obligated to receive rents without the government being able to walk away from that space. In fact, they could physically vacate the space and they would still owe us those dollars until the very end of the lease. So not that they were because the running joke in the office is the government hasn’t left a courthouse since the civil war. We hope to continue that trend certainly in our portfolio but it’s in our mind a continued example of how this portfolio was designed around Doge and any sort of macro concerns about what government is meant to do, right? The portfolio is going to continue to perform in the way we have always expected it to.

And certainly, we’re never gonna get it a % right. We would probably not be here if we did. But we, on average, expect mid nineties renewal or retention rates and that mid to high net effective rents in the teens.

John Kim, Moderator, BMO Capital Markets: So the GSA is willing to do leases with escalators? Is it for all agencies or just courthouse?

Allison Marino, Chief Financial Officer, Easterly Government Properties: Each procurement is different. Broadly, we are attempting to move escalators into the GSA lease profile. It’s something that’s important to us. We know that it is

Daryl Crate, CEO, Easterly Government Properties: Because it’s important to you.

Allison Marino, Chief Financial Officer, Easterly Government Properties: Because it’s important to investors, but also reflecting a more modernized version of what leasing and rents should be as you move forward. So continuing to help that capital formation process for the government’s end is really important I think in getting high quality space that they can use for decades. So we are

Daryl Crate, CEO, Easterly Government Properties: And we’ve been spending time with the GSA and with the administration because forming capital around this space is important and we do have an administration that’s sensitive to this. Nothing happens in government in straight line. But to all the points Allison’s making with regard to there being, know, escalations can look more normal to capital that we can attract to this segment. I, you know, hands out, you know, a big applause for for Bridget. I will not mention her last name who signed and worked with this lease, but she did a lot of work across government to to to make it possible.

Yeah. I’ll let Alison do the numbers.

Allison Marino, Chief Financial Officer, Easterly Government Properties: Oh, yay. So broadly we expect like I think there’s a page in our investor deck. It used to be 17 which was my lucky number, so maybe it’s moved. But over the next ten years, growing this portfolio with natural expirations, if you do the back of the envelope math, the entire portfolio turns over in the next ten years given our weighted average lease term at a net effective rent spread in the high teens gets you to those sort of 6 to $10,000,000,000 numbers. As every if you took every lease and rolled it at that over its expiration should get you to that number.

I think it’s 6. Yeah. Yep. On a blended basis for the entire portfolio, it’s about it’s in that mid to high teens for each lease.

Daryl Crate, CEO, Easterly Government Properties: Yeah, which is consistent with the lease that was recently renegotiated.

Allison Marino, Chief Financial Officer, Easterly Government Properties: Correct.

John Kim, Moderator, BMO Capital Markets: Any other questions from the audience? There’s a couple. So the two questions were one about interest rates, how much do you need to go lower? And then also the Doge impact even though there may not be lease cancellations, is there a long term impact on your portfolio?

Daryl Crate, CEO, Easterly Government Properties: I mean, know, what you learn about Doge and hear about Doge on the nightly news is a very distilled version of what’s happening. And, you know, there are some folks who wanna make it seem like it’s just like broad brush, indiscriminate, you know, Trump’s a moron, you know, all of that kind of sort of sort of talk. The reality is these are, I mean, very thoughtful people trying to work through government. We have one big problem in government which is the thicket of bureaucracy. When we started this company, you know, I think we were looking at one agency that’ll remain nameless, that each of each sort of boss or superior had about eight folks reporting to them.

Today, that’s down to four. And so you can only imagine how difficult it becomes to get things through the bureaucracy. And I mean, one of the stories that we explained is that on a lease that’s not a big deal sort of normal process, it goes from we make sure the tenant’s okay, tenant goes to the head of the agency, head of the agency, you know, then goes to the GSA, GSA goes to you know, the OMB, OMB goes to the Senate, Senate has ideas, comes back to OMB and back it comes. It takes just about two point nine years to just get through that process. This is just moving the paper, and that’s got to stop.

So there are gonna be some outstanding government workers who do get cut because there’s only one way to cut government workers through RIF, and there will be mistakes among the 2,000,000 people in the workforce, and that’s that’s that’s sad and that’s not perfectly efficient, but we can materially reduce, you know, the number of folks who are in in government and get things done faster, and we’re already seeing it. I mean, the this Aberdeen lease is a perfect example. I mean, they’re they’re cutting the number of of agents who are leasing officers by probably about 65%. But you can imagine the folks who are gonna remain, the access they have to decision makers to get things done. And and it’s gonna be it’s gonna be a painful process.

But I think we are strong advocates of Doge. Will we have some bumps? Probably. Just because it’s a big government. You’re moving, you know, these tectonic plates.

But the the principle and theories behind it are incredibly strong. They’re gonna benefit taxpayers, and we’re really excited for them to benefit our business.

Allison Marino, Chief Financial Officer, Easterly Government Properties: Yeah. We’ll take them as low as we’ll go. I who wants them to be high? I think that’s broadly where we are today.

Daryl Crate, CEO, Easterly Government Properties: Jerome Powell actually. Yeah. Well. But

Allison Marino, Chief Financial Officer, Easterly Government Properties: We see them right now on an all in basis six to six and a half. Again, credit of these leases really underscores access to capital. But yeah. More a decrease in the curve would certainly help us in terms of growth capital. It’s spread investing again.

Daryl Crate, CEO, Easterly Government Properties: And look, you know, with with Doge, with the efforts, you’re gonna see the senate here, you know, trim this budget a bunch. The world, you know, we do need to trim the deficits in order for interest rates to go down. It is possible. I mean, you just look at the Department of Labor, HHS, and the Treasury, their inspector generals found $742,000,000,000 of waste and fraud just in their reports before Elon showed up. So the money’s out there.

They just take some political discipline and it’s gonna take a little while for that to work.

John Kim, Moderator, BMO Capital Markets: We are out of time. Thank you for your attendance today.

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