Easterly Government Properties is a REIT that owns and leases Class A, mission-critical facilities to U.S. federal, state, and local government agencies. The portfolio includes courthouses, law enforcement offices, forensic and public health labs, VA healthcare facilities, and secure administrative buildings — all purpose-built for specific agency functions. As of year-end 2025, Easterly wholly owned 93 operating properties plus ten through a JV, totaling approximately 10.4M leased square feet, at 97% occupancy. About 88% of annualized lease income comes from federal agencies, primarily through the GSA. Easterly makes money by collecting rent on long-term leases (initial terms of 10–20 years), and roughly 95% of lease income is in "firm term" — meaning the GSA cannot unilaterally cancel without a government default, providing highly predictable cash flows. Federal GSA leases are generally flat during the lease term but reset upward at renewal, where Easterly has historically achieved ~14% average rent spreads. Easterly is actively diversifying toward state/local and government-adjacent tenants (defense contractors and similar), targeting 15% exposure each, because those leases typically carry annual rent escalators of 2–3%, providing better embedded same-store growth than flat federal leases. Easterly also pursues build-to-suit government development, targeting yields roughly 150 bps above its cost of capital, and earns construction management fees on agency-specific build-outs.