Easterly Government Properties (DEA) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: 7.75%
• Average Volume (3M): 523.45K
• Price to Earnings (P/E): 56.0
• Beta (1Y): 0.56
• Revenue Growth: 6.06%
• EPS Growth: -15.10%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Office
• EPS (TTM): 0.07
• Shares Outstanding: 44,905,160
• 10 Day Avg. Volume: 535,818
• 30 Day Avg. Volume: 523,446
• PEG Ratio: -0.10
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: 2.42
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 12.19
• Enterprise Value/Ebitda: 3.57
• 1Y Price Target: $25.45
• Price Target Upside: 9.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: $23.50 ▲(1.16%Upside)

Easterly Government Properties shows strong financial performance and strategic growth opportunities, offset by high valuation and mixed technical signals. The dividend reduction is a concern for yield-focused investors, but strong cash flow and strategic initiatives support future growth.

Positive Factors

Financial flexibility

Increased financial flexibility with the extension of maturity to January 2028 and increased borrowing capacity to $250mm.

Investment strategy

The company's investment thesis on mission-critical assets plays out, while DEA now has retained cashflow to invest in GSA and government-adjacent assets.

Negative Factors

Dividend cut

A 32% reduction in the dividend is expected to knock the stock down in the near term and has damaged management's credibility.

Lease expirations

12 leases representing 593ksf remain expiring, posing a risk for future occupancy.

Leverage concerns

Net debt/EBITDA remains elevated and is likely to continue to rise with announced investment activity.

Easterly Government Properties Business Overview & Revenue Model

Company Description

Easterly Government Properties (DEA) is a real estate investment trust (REIT) that focuses on the acquisition, development, and management of Class A commercial properties leased primarily to the U.S. government. The company operates within the government real estate sector, providing secure and functional spaces tailored to the specific needs of federal agencies. With a portfolio concentrated on mission-critical facilities, Easterly Government Properties leverages its expertise to ensure stable occupancy and long-term leases with government tenants.

How the Company Makes Money

Easterly Government Properties generates revenue primarily through leasing its properties to government agencies. The company's revenue model is centered around acquiring and developing properties that are then leased under long-term agreements, often with terms of 10 to 20 years, to federal agencies such as the Federal Bureau of Investigation (FBI), Department of Veterans Affairs (VA), and other mission-critical entities. This approach ensures a steady and predictable income stream due to the high credit quality of its tenants. Additionally, the company may engage in property management services and development projects that align with its strategic focus on government-tenanted properties, enhancing its revenue potential.

Easterly Government Properties Financial Statement Overview

Summary

Easterly Government Properties exhibits strong operational performance with consistent revenue growth and efficient cost management. The balance sheet is stable, though moderate leverage could pose risks. Cash flow generation is robust, supporting financial health and growth potential.

Income Statement

Easterly Government Properties has shown consistent revenue growth, with a TTM revenue increase from the previous year. The gross profit margin remains strong at approximately 58.8% for the TTM, indicating efficient cost management. However, the net profit margin is lower due to high financing costs, affecting the overall profitability.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 41.4% in the TTM, indicating a stable financial structure. However, the debt-to-equity ratio stands at 0.88, reflecting a moderate level of leverage, which could pose risks if interest rates rise.

Cash Flow

Easterly Government Properties demonstrates strong cash flow generation with a TTM operating cash flow of $162.9 million, exceeding net income. The operating cash flow to net income ratio is robust, suggesting effective cash earnings conversion. However, free cash flow growth has been modest, indicating potential constraints in cash available after investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
307.93M	302.05M	287.23M	293.61M	274.86M	245.08M
	Gross Profit
206.89M	200.98M	188.64M	197.93M	187.74M	169.52M
	EBIT
81.09M	78.67M	66.39M	126.79M	136.48M	142.49M
	EBITDA
185.28M	179.34M	161.52M	181.19M	163.85M	142.81M
	Net Income Common Stockholders
17.91M	19.55M	18.20M	31.47M	30.06M	11.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.46M	19.35M	9.38M	7.58M	11.13M	8.46M
	Total Assets
3.22B	3.22B	2.88B	2.83B	2.83B	2.46B
	Total Debt
1.60B	1.60B	1.29B	1.25B	1.21B	978.26M
	Net Debt
1.59B	1.58B	1.29B	1.24B	1.20B	969.79M
	Total Liabilities
1.83B	1.84B	1.47B	1.42B	1.38B	1.16B
	Stockholders Equity
1.33B	1.32B	1.32B	1.24B	1.28B	1.15B
Cash Flow		Free Cash Flow
162.93M	162.63M	114.48M	196.03M	481.39M	145.20M
	Operating Cash Flow
162.93M	162.63M	114.48M	125.94M	118.34M	145.20M
	Investing Cash Flow
-429.98M	-409.64M	-127.01M	-69.10M	-363.04M	-290.18M
	Financing Cash Flow
228.44M	252.88M	17.19M	-59.71M	250.17M	144.10M

Easterly Government Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DEA, the sentiment is Neutral. The current price of 23.23 is above the 20-day moving average (MA) of 22.03, above the 50-day MA of 21.31, and below the 200-day MA of 26.91, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 66.27 is Neutral, neither overbought nor oversold. The STOCH value of 90.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DEA.

Easterly Government Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGRE	70 Outperform	$1.54B	―	-2.11%	2.17%	1.67%	73.75%
DEA	68 Neutral	$1.04B	56.00	1.32%	7.75%	6.06%	-15.10%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
BDN	55 Neutral	$778.86M	―	-18.11%	13.36%	-2.22%	1.51%
JBGS	55 Neutral	$1.59B	―	-8.54%	3.82%	-12.34%	-36.05%
PDM	52 Neutral	$931.82M	―	-3.79%	6.68%	-6.23%	18.07%

Easterly Government Properties Corporate Events

Easterly Government Properties Holds Annual Stockholder Meeting

On May 22, 2025, Easterly Government Properties held its Annual Meeting of Stockholders, where stockholders voted on several proposals. The election of seven director nominees was approved, along with the non-binding advisory approval of executive compensation and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (DEA) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Easterly Government Properties Appoints New Accounting Officer

Easterly Government Properties, Inc. announced the appointment of Brian M. Colantuoni as the principal accounting officer effective May 13, 2025. This change in leadership, with Mr. Colantuoni’s extensive experience in the real estate sector, is expected to enhance the company’s financial operations. The appointment includes a grant of restricted common stock valued at approximately $200,000, and an indemnification agreement to protect Mr. Colantuoni in his new role.

The most recent analyst rating on (DEA) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Easterly Government Properties Reduces Authorized Shares

On May 8, 2025, Easterly Government Properties, Inc. filed an amendment to reduce its authorized common stock shares from 200 million to 80 million, following a one-for-two and a half reverse stock split on April 28, 2025. This strategic move is likely to impact the company’s stock structure and could influence its market positioning and shareholder value.