Investor Presentaiton

. Lease Renewals & Accounting Treatment Easterly Government Properties Inc. A GSA lease is comprised of Base Rent and the rent associated with government-dictated Tenant Improvement (TI) Allowance Upon lease award, Easterly commits to a maximum TI Allowance Actual TI expenditures can be lower than this maximum (given the incumbent nature of the building) depending on the Government's scope of work The amount of time it takes for the government to award the lease, approve the actual TI package and for Easterly to complete the TI work can vary (see examples 1 & 2) Rent associated with TI expenditures is not paid for by the government, nor recognized by Easterly, until TI construction is complete The following are two examples of potential renewal rent recognition, depending on TI expenditure timing: Assumptions • Example 1 Typical GSA structure (flat base rent with reimbursement for increases in Operating Expenses and Real Estate Tax) Assumptions Example 2 Typical GSA structure (flat base rent with reimbursement for increases in Operating Expenses and Real Estate Tax) 15-year lease renewal term Renewal lease awarded but Tls not completed until after the renewal lease commences . 15-year lease renewal term • 100,000 RSF • 100,000 RSF . Renewal lease awarded and Tls completed in advance of the current lease expiration Lease 1.0 I Expires $37.50/RSF $2.75/RSF annual TI rent Lease 1.0 Expires $37.50/RSF $2.75/RSF annual TI rent Lease 1.0: $30.00/RSF annual total cash rent Lease 2.0: $34.75/RSF annual cash base rent Remainder of lease term Lease 1.0: $30.00/RSF annual total cash rent Lease 2.0: $34.75/RSF annual cash base rent Lease 2.0: $34.75/RSF annual cash base rent Remainder of lease term TI construction period Lease 2.0 Renewal Award Lease 2.0 Total Rent Commences Lease 2.0 Expiration Lease 2.0 Renewal Award Lease 2.0 Base Rent Commences Lease 2.0 TI Rent Rent Commences Lease 2.0 Expiration TI construction period 33 33

View entire presentation