Federal Buildings Fund

2019 AFR Header Image

Financial Results by Major Fund – Federal Buildings Fund

The FBF is the primary fund established for financial administration of PBS activities. PBS provides workplaces for Federal agencies and their employees. FBF resources are primarily generated by rent paid to GSA by other Federal agencies. Operating results are displayed on the Consolidating Statements of Net Cost, segregated into the two primary components of Building Operations – Government Owned, and Building Operations – Leased.

In FY 2019, FBF gross revenue was over $11.9 billion, with over half of the revenue generated from five Federal customer agencies as shown in the table below:

Table 1. FBF Top 5 Federal Customers (Dollars in Millions)
Customers Revenues ($ in Millions) % of Total Revenues
Department of Justice $2,047 17.3%
Department of Homeland Security $1,904 16.1%
Federal Judiciary $1,185 10.3%
Social Security Administration $879 7.4%
Department of the Treasury $757 6.4%

FBF Net Revenue from Operations FBF Net Revenue from Operations represents the amounts remaining after the costs of operating GSA owned and leased buildings are subtracted from revenue. Net Revenue from Operations is used to invest in major repairs and alterations for Federal buildings and to provide funding for the cost of constructing new Federal buildings.

The primary source of revenue into the FBF is rent from our customer agencies and the primary sources of expense are the cost of leasing building space and the cost of operating the GSA portfolio of GSA-owned and -leased buildings. PBS also operates a reimbursable work authorization program, which provides customer agencies with alterations and improvements in GSA space, above what is specified in base rental agreements.

The operating results on the Statements of Net Cost reflect a generally stable condition of the overall real property portfolio, where FBF revenues increased by 1.5 percent between FY 2019 and 2018. The FBF reported net revenues in excess of expenses of $524 million in FY 2019 compared to net revenues in excess of expenses of $650 million in FY 2018, representing a decrease of $126 million. While this overall change was relatively small compared to $11.9 billion in total revenues, the Owned Building Operations reflect reduced amounts of gains recognized from disposal of FBF properties between FY 2019 and 2018 of almost $95 million. During FY 2019, FBF Leased Building Operations recorded a net loss of $84 million, compared to the break-even results in 2018. Last year the FY 2018 results reflected unusually positive impacts of transactions related to the accounting treatment of leases with free rent periods and other rent discounts that require amortization. Amounts recognized in 2018 for the amortization treatment reduced expense, offsetting losses generated by other leasing operating activity. Such expense reductions were not repeated in FY 2019, resulting in the Leased Building Operations reflecting losses, as had been experienced in previous years.

FBF Obligations and Outlays

In the FBF, obligations are primarily the value of contracts awarded to commercial vendors for the construction of new Federal buildings; for repairs and alterations, cleaning, utilities and other maintenance of GSA-owned Federal buildings; and lease and related payments to commercial landlords for space leased by GSA for Federal agencies. Obligations incurred in FY 2019 reflect only slight increases in total program activity. The change in Net Outlays reflects a continuing trend of collections from operating revenues exceeding amounts disbursed for operating and capital programs.

Table 2. FBF Obligations and Outlays (Dollars in Millions)
Customers FY 2019 FY 2018 Change ($) Change (%)
New Obligations and Upward Adjustments $11,156 $10,982 $174 1.6%
Net Outlays from Operating Activity $(997) $(875) $(122) (13.9)%
Last Reviewed: 2021-02-01