Easterly Government Properties, Inc. Debt Disclosure
6. Debt
At December 31, 2025 and December 31, 2024 (dollars in thousands):
|
|
Principal Outstanding |
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|
Interest |
|
Current |
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Loan |
|
December 31, 2025 |
|
|
December 31, 2024 |
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|
Rate (1)(2) |
|
Maturity |
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||
Revolving credit facility: |
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|
|
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|
|
|
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2024 revolving credit facility (3) |
|
$ |
199,050 |
|
|
$ |
274,550 |
|
|
S + 145 bps |
|
June 2028 (4) |
|
Total revolving credit facility |
|
|
199,050 |
|
|
|
274,550 |
|
|
|
|
|
|
|
|
|
|
|
|
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Term loan facilities: |
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2016 term loan facility |
|
|
100,000 |
|
|
|
100,000 |
|
|
5.31% (5) |
|
January 2028 (6) |
|
2018 term loan facility |
|
|
200,000 |
|
|
|
174,500 |
|
|
5.09% (7) |
|
August 2028 (8) |
|
Total term loan facilities |
|
|
300,000 |
|
|
|
274,500 |
|
|
|
|
|
|
Less: Total unamortized deferred financing fees |
|
|
(2,800 |
) |
|
|
(491 |
) |
|
|
|
|
|
Total term loan facilities, net |
|
|
297,200 |
|
|
|
274,009 |
|
|
|
|
|
|
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Notes payable: |
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|
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|
|
|
|
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2017 series A senior notes |
|
|
95,000 |
|
|
|
95,000 |
|
|
4.05% |
|
May 2027 |
|
2017 series B senior notes |
|
|
50,000 |
|
|
|
50,000 |
|
|
4.15% |
|
May 2029 |
|
2017 series C senior notes |
|
|
30,000 |
|
|
|
30,000 |
|
|
4.30% |
|
May 2032 |
|
2019 series A senior notes |
|
|
85,000 |
|
|
|
85,000 |
|
|
3.73% |
|
September 2029 |
|
2019 series B senior notes |
|
|
100,000 |
|
|
|
100,000 |
|
|
3.83% |
|
September 2031 |
|
2019 series C senior notes |
|
|
90,000 |
|
|
|
90,000 |
|
|
3.98% |
|
September 2034 |
|
2021 series A senior notes |
|
|
50,000 |
|
|
|
50,000 |
|
|
2.62% |
|
October 2028 |
|
2021 series B senior notes |
|
|
200,000 |
|
|
|
200,000 |
|
|
2.89% |
|
October 2030 |
|
2024 series A senior notes |
|
|
150,000 |
|
|
|
150,000 |
|
|
6.56% |
|
May 2033 |
|
2024 series B senior notes |
|
|
50,000 |
|
|
|
50,000 |
|
|
6.56% |
|
August 2033 |
|
2025 series A senior notes |
|
|
25,000 |
|
|
|
— |
|
|
6.13% |
|
March 2030 |
|
2025 series B senior notes |
|
|
100,000 |
|
|
|
— |
|
|
6.33% (9) |
|
March 2032 |
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Total notes payable |
|
|
1,025,000 |
|
|
|
900,000 |
|
|
|
|
|
|
Less: Total unamortized deferred financing fees |
|
|
(6,116 |
) |
|
|
(5,324 |
) |
|
|
|
|
|
Total notes payable, net |
|
|
1,018,884 |
|
|
|
894,676 |
|
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Mortgage notes payable: |
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USFS II – Albuquerque |
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|
7,491 |
|
|
|
9,624 |
|
|
4.46% |
|
July 2026 |
|
ICE – Charleston |
|
|
8,920 |
|
|
|
10,491 |
|
|
4.21% |
|
January 2027 |
|
VA – Loma Linda |
|
|
127,500 |
|
|
|
127,500 |
|
|
3.59% |
|
July 2027 |
|
CBP – Savannah |
|
|
7,789 |
|
|
|
8,683 |
|
|
3.40% |
|
July 2033 |
|
Total mortgage notes payable |
|
|
151,700 |
|
|
|
156,298 |
|
|
|
|
|
|
Less: Total unamortized deferred financing fees |
|
|
(355 |
) |
|
|
(579 |
) |
|
|
|
|
|
Less: Total unamortized premium/discount |
|
|
(154 |
) |
|
|
(133 |
) |
|
|
|
|
|
Total mortgage notes payable, net |
|
|
151,191 |
|
|
|
155,586 |
|
|
|
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|
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Total debt |
|
$ |
1,666,325 |
|
|
$ |
1,598,821 |
|
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|
As of December 31, 2025 and 2024, the net carrying value of real estate collateralizing our mortgages payable totaled $210.1 million and $216.9 million, respectively. We were not in default under any mortgage loan as of December 31, 2025. See Note 8 for the fair value of our debt instruments.
2025 Activity
2016 Term Loan Facility
On January 8, 2025, we entered into the ninth amendment to our senior unsecured term loan agreement, dated as of September 29, 2016, to extend the maturity date of our 2016 term loan facility from January 30, 2025 to January 28, 2028. Additionally, the ninth amendment increased the capacity limit on the accordion feature from $150.0 million to $250.0 million.
Effective September 30, 2025, we entered into the tenth amendment to our senior unsecured term loan agreement, dated as of September 29, 2016, to remove the minimum consolidated tangible net worth financial covenant.
2025 Senior Note Agreement
On March 20, 2025, we entered into a master note purchase agreement pursuant to which the Operating Partnership agreed to issue and sell an aggregate of up to $125 million of fixed rate, senior unsecured notes (“Senior Notes”) consisting of (i) 6.13% 2025 Series A Senior Notes due March 20, 2030 (“2025 series A senior notes”), in an aggregate principal amount of $25.0 million, and (ii) 6.33% 2025 Series B Senior Notes due March 20, 2032 (“2025 series B senior notes”), in an aggregate principal amount of $100.0 million. The Senior Notes were issued on March 20, 2025. We, together with various subsidiaries of the Operating Partnership, have guaranteed the 2025 series A senior notes and the series B senior notes.
2018 Term Loan Facility
On August 21, 2025, we entered into a fifth amendment to our second amended and restated credit agreement, dated as of July 23, 2021, to extend the maturity date of our 2018 term loan facility from July 23, 2026 to August 21, 2028 and upsize lender commitment from $174.5 million to $200.0 million. Further, we may exercise, at our discretion, two one-year extension options,
subject to certain conditions. Lastly, the term loan amendment also removes the minimum consolidated tangible net worth financial covenant and includes an accordion feature that provides the Company with additional capacity, subject to the satisfaction of customary terms and conditions, of up to $100.0 million. In connection with the extension, we recognized an aggregate $0.1 million loss on debt extinguishment during the twelve months ended December 31, 2025, which is included in Interest expense, net on our Consolidated Statements of Operations.
2024 Revolving Credit Facility
Effective September 2, 2025, we amended the credit agreement governing our 2024 revolving credit facility to remove the minimum consolidated tangible net worth financial covenant.
2024 Activity
2024 Senior Note Agreement
On May 29, 2024, we entered into a master note purchase agreement pursuant to which the Operating Partnership agreed to issue and sell an aggregate of up to $200 million of fixed rate, senior unsecured notes (“Senior Notes”) consisting of (i) 6.56% Series A Senior Notes due May 29, 2033 (“Series A Senior Notes”), in an aggregate principal amount of $150.0 million, and (ii) 6.56% Series B Senior Notes due August 14, 2033 (“Series B Senior Notes”), in an aggregate principal amount of $50.0 million. The Series A Senior Notes were issued on May 29, 2024 and the Series B Senior Notes were issued on August 14, 2024. We, together with various subsidiaries of the Operating Partnership, have guaranteed the Senior Notes.
2024 Revolving Credit Facility
On June 3, 2024, we entered into a credit agreement (the “2024 Credit Agreement”) that provides for the $400.0 million 2024 revolving credit facility which includes 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. The 2024 revolving credit facility has an initial four-year term and will mature in June 2028, with two six-month as-of-right extension options, subject to certain conditions and the payment of an extension fee.
Borrowings under the 2024 revolving credit facility will, at the Operating Partnership's option, bear interest at floating rates equal to either (i) a fluctuating rate equal to the sum of (a) the highest of (x) Citibank, N.A.'s base rate, (y) the federal funds effective rate plus 0.50% and (z) the one-month adjusted term SOFR plus 1.00%, plus, in each case, (b) a margin ranging from 0.20% to 0.80% based on our leverage ratio, (ii) the daily simple SOFR plus a credit spread adjustment of 0.10% (the “Adjusted DSS”), or (iii) the term SOFR, plus a credit spread adjustment of 0.10% (the “Term SOFR”), plus, in the case of borrowings bearing interest at Adjusted DSS or Term SOFR, a margin ranging from 1.20% to 1.80% based on our leverage ratio.
2021 Revolving Credit Facility
We are also party to the second amended and restated credit agreement, dated July 23, 2021 (as amended, restated, or otherwise modified from time to time, the “2021 Credit Facility”), which provides for (i) a $450.0 million senior unsecured revolving credit facility (the “2021 revolving credit facility”) and (ii) our 2018 term loan facility.
On January 2, 2024, the margin spreads under the second amended senior unsecured credit agreement were reduced by 1 basis point as a result of achieving our sustainability metric percentage.
In connection with the entry into the 2024 Credit Agreement on June 3, 2024, we repaid all amounts outstanding under and terminated the revolver portion of the 2021 Credit Facility, including all unused commitments. Other than the foregoing, the terms of the 2021 Credit Facility remain unchanged and our 2018 term loan portion of the 2021 Credit Facility remains outstanding. We recognized an aggregate $0.3 million loss on debt extinguishment during the year ended December 31, 2024 which is included in Interest expense, net on our Consolidated Statements of Operations.
Term Loan Facilities
On January 23, 2024, we entered into the seventh amendment to the senior unsecured term loan agreement, dated as of September 29, 2016, that governs our 2016 term loan facility to extend the maturity date of our 2016 term loan facility from March 29, 2024 to January 30, 2025.
On December 23, 2024, we entered into three SOFR-based interest rate swaps with a total notional value of $100.0 million that were designated as cash flow hedges of interest rate risk. The interest rate swaps became effective in December 2024 upon the maturity of our $100.0 million notional value interest rate swap on December 23, 2024. For more information on our interest rate swaps, see Note 7 to the Consolidated Financial Statements.
On April 1, 2024, we used $8.4 million of available cash to extinguish the mortgage note obligation on VA – Golden.
On June 3, 2024, we repaid $25.0 million of amounts outstanding under our 2018 term loan facility using available cash derived from the issuance of Series A Senior Notes.
On July 8, 2024, we used $0.5 million of available cash to pay down a portion of our 2018 term loan facility.
On July 15, 2024, we amended the credit agreements governing our 2016 and 2018 term loan facilities to conform certain definitions related to leverage covenants to the provisions of the 2024 Credit Agreement.
On August 6, 2024, we used $51.5 million of available cash to extinguish the mortgage note obligation on USCIS – Kansas City.
Financial Covenant Considerations
As of December 31, 2025, we were in compliance with all financial and other covenants related to our 2024 revolving credit facility, 2016 term loan facility, 2018 term loan facility, notes payable and mortgage notes payable.
Aggregate Debt Maturities
Aggregated debt maturities based on outstanding principal as of December 31, 2025 are as follows (dollars in thousands):
|
|
Total |
|
|
2026 |
|
$ |
10,054 |
|
2027 |
|
|
230,733 |
|
2028 |
|
|
550,033 |
|
2029 |
|
|
136,016 |
|
2030 |
|
|
226,049 |
|
Thereafter |
|
|
522,865 |
|
|
|
|
1,675,750 |
|
Unamortized premium/discount & deferred financing fees |
|
|
(9,425 |
) |
|
|
$ |
1,666,325 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 2, 2017 | |
| 2015 | Mar 2, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.