Investor Presentaiton

Summary of Development Project Costs Conceptual Overview ■ Development projects consist of two types of costs: Shell & Tenant Improvement (TI) Allowance Easterly Government Properties Inc. TI Lump-Sum Reimbursement ■ TI Lump-Sum Reimbursements are borne and financed by DEA through the period of construction Creates "temporary" borrowings / leverage ■ The U.S. Government is contractually obligated to repay DEA for TI Lump-Sum Reimbursements upon lease commencement Financial Impact (Illustrative example: $100 million project with 20-year firm lease term) % of Total Costs Shell & TI Allowance Indicative Earnings Impact Indicative One-Time Cash Impact Investment generates future rent payments from the U.S. Government 40% Annual Cash Income: 7.0-7.5% Yield-on-Cost N/A ($40mm) ($2.8-3.0mm) Annual GAAP Income: TI Lump-Sum Reimbursement Investment repaid by the U.S. Government upon lease commencement 60% ($60mm) Lump-Sum Reimbursement ($) Firm Lease Term (yrs) ($3.0mm) Reimbursement Received Upon Completion ($60mm) 32

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