Easterly Government Properties (DEA) AI Stock Analysis

• Market Cap: $993.71M
• Dividend Yield: 10.17%
• Average Volume (3M): 529.95K
• Price to Earnings (P/E): 55.7
• Beta (1Y): 0.44
• Revenue Growth: 8.18%
• EPS Growth: -15.35%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.09
• Shares Outstanding: 45,354,115
• 10 Day Avg. Volume: 452,720
• 30 Day Avg. Volume: 529,954
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.80
• Enterprise Value/Revenue: 8.79
• Enterprise Value/Gross Profit: 13.48
• Enterprise Value/Ebitda: 14.54
• 1Y Price Target: $23.75
• Price Target Upside: 8.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $24.50 ▲(11.97% Upside)

Easterly Government Properties demonstrates a stable financial position with strong operational performance and strategic growth initiatives. However, challenges in profitability, cash flow management, and valuation metrics temper the overall score.

Positive Factors

Stable Revenue Growth

The company's stable revenue growth is supported by long-term leases with government agencies, ensuring consistent income and low vacancy rates.

Successful Lease Renewals

Successful lease renewals with federal tenants reduce vacancy risk and ensure continued revenue stability, enhancing long-term financial performance.

Strong Operational Performance

The increase in Core FFO per share indicates effective cost management and operational efficiency, supporting sustainable profitability and growth.

Negative Factors

Low Profitability Metrics

Low ROE indicates that the company is not generating significant profits from shareholders' investments, which may hinder long-term growth potential.

Decreased Free Cash Flow

A decline in free cash flow can limit the company's ability to invest in growth opportunities and maintain financial flexibility, impacting future expansion.

Challenging Cost of Capital

High cost of capital can restrict the company's ability to finance new projects and acquisitions, potentially slowing down strategic growth initiatives.

Easterly Government Properties Business Overview & Revenue Model

Company Description

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly's experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).

How the Company Makes Money

Easterly Government Properties generates revenue primarily through long-term leases with various U.S. government agencies. The company's revenue model is built on acquiring properties that are leased to governmental entities, ensuring low vacancy rates and consistent rental income. Key revenue streams include base rental income from these leases and additional income from property management services. The stability of government-backed tenants minimizes risk, while the increasing demand for government facilities contributes to growth. Significant partnerships with government agencies and a strategic focus on properties with long-term leases are critical factors that enhance the company's earnings potential.

Easterly Government Properties Financial Statement Overview

Summary

Easterly Government Properties exhibits solid financial performance with consistent revenue growth and strong cash flow management. While the company maintains healthy profit margins, the slight decrease in net income and increasing debt levels warrant attention. The balance sheet remains stable, but the company should focus on improving return on equity and managing leverage to ensure long-term financial health.

Income Statement

Easterly Government Properties shows a steady increase in revenue with a TTM revenue of $307.9M, reflecting a growth rate of 2% from the previous year. The gross profit margin is strong at 67.2%, and the net profit margin is moderate at 5.8%. EBIT and EBITDA margins are healthy at 26.3% and 60.2% respectively, indicating efficient operations. However, the net income has slightly decreased in the TTM period, suggesting potential challenges in cost management.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.20, indicating moderate leverage. The equity ratio stands at 41.4%, showing a solid equity base. Return on equity is relatively low at 1.3%, suggesting limited profitability from shareholder investments. The company's assets have grown steadily, but the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Easterly Government Properties demonstrates strong cash flow management with a consistent operating cash flow of $162.9M in the TTM period. The free cash flow growth rate is stable, and the operating cash flow to net income ratio is robust at 9.1, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 9.1, highlighting effective cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	315.94M	302.05M	287.23M	293.61M	274.86M	245.08M
Gross Profit	206.01M	200.98M	93.51M	97.67M	187.74M	169.52M
EBITDA	191.09M	179.34M	161.52M	181.19M	163.85M	142.81M
Net Income	17.23M	19.55M	18.20M	31.47M	30.06M	11.96M
Balance Sheet
Total Assets	3.36B	3.22B	2.88B	2.83B	2.83B	2.46B
Cash, Cash Equivalents and Short-Term Investments	4.70M	19.35M	11.38M	7.58M	11.13M	8.46M
Total Debt	1.17B	1.60B	1.29B	1.25B	1.21B	978.26M
Total Liabilities	1.97B	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	144.03M	162.63M	114.48M	196.03M	481.39M	145.20M
Operating Cash Flow	144.03M	162.63M	114.48M	125.94M	118.34M	145.20M
Investing Cash Flow	-475.29M	-409.64M	-127.01M	-69.10M	-363.04M	-290.18M
Financing Cash Flow	318.07M	252.88M	17.19M	-59.71M	250.17M	144.10M

Easterly Government Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DEA, the sentiment is Negative. The current price of 21.88 is below the 20-day moving average (MA) of 22.88, below the 50-day MA of 22.53, and below the 200-day MA of 23.28, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 5.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DEA.

Easterly Government Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEA	66 Neutral	$993.71M	55.68	1.28%	10.17%	8.18%	-15.35%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PGRE	63 Neutral	$1.52B	―	-2.52%	0.56%	-1.68%	63.27%
PDM	57 Neutral	$1.08B	―	-4.27%	5.84%	-6.74%	17.44%
JBGS	53 Neutral	$1.62B	―	-9.19%	3.28%	-11.33%	-22.04%
BDN	45 Neutral	$682.92M	―	-29.94%	13.55%	-3.05%	-94.96%

Easterly Government Properties Corporate Events

Easterly Government Properties Grants Equity Awards to Management

On August 26, 2025, Easterly Government Properties‘ Board of Directors and Compensation Committee granted equity awards to senior management and non-employee directors under the 2024 Equity Incentive Plan. The awards, consisting of 844,000 performance-based long-term incentive units, aim to align management’s interests with shareholders and retain key personnel amid recent executive turnover. The units will vest over five years, contingent on continued service and stock price performance, with specific conditions for vesting in cases of change in control or termination.

Easterly Government Properties Amends Term Loan Agreement

On August 21, 2025, Easterly Government Properties announced an amendment to its 2018 senior unsecured term loan agreement, increasing it to $200 million and extending its maturity date to August 2028, with options to extend further. The amendment also includes a new $100 million accordion feature, enhancing Easterly’s financial flexibility and positioning the company for future growth. The loan continues to bear interest based on SOFR with a spread determined by the company’s leverage ratio.