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Easterly Government Properties (DEA)
NYSE:DEA
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Easterly Government Properties (DEA) AI Stock Analysis

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DEA

Easterly Government Properties

(NYSE:DEA)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
$22.50
▲(4.41% Upside)
Easterly Government Properties scores moderately due to strong financial performance and positive earnings call highlights, such as core FFO growth and high occupancy rates. However, the technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation, which tempers the overall score. The attractive dividend yield provides some support, but concerns about leverage and project delays remain.
Positive Factors
Stable Revenue Model
Easterly's focus on long-term leases with U.S. government agencies provides stable and predictable cash flows, minimizing vacancy risk and ensuring consistent revenue streams.
High Occupancy Rates
High occupancy rates and long lease terms with government tenants enhance revenue stability and reduce turnover costs, supporting long-term financial performance.
Cash Flow Generation
Robust free cash flow growth enhances Easterly's financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, strengthening long-term stability.
Negative Factors
Leverage Challenges
High leverage levels can increase financial risk and limit flexibility. Efforts to reduce leverage are necessary but may constrain capital allocation in the short term.
Net Profitability Concerns
Low net profit margins indicate challenges in cost management and efficiency, which could impact long-term profitability and shareholder returns if not addressed.
Delayed Project Completion
Delays in project completion can defer expected revenue and increase costs, potentially impacting cash flow and financial projections in the medium term.

Easterly Government Properties (DEA) vs. SPDR S&P 500 ETF (SPY)

Easterly Government Properties Business Overview & Revenue Model

Company DescriptionEasterly 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 MoneyEasterly 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 Earnings Call Summary

Earnings Call Date:Oct 27, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strong operational performance with significant achievements in core FFO growth, high occupancy rates, and strategic acquisitions. However, concerns about government shutdown impacts, project delays, and leverage optimization efforts present notable challenges.
Q3-2025 Updates
Positive Updates
Core FFO Growth
Easterly Government Properties delivered a 3% core FFO growth from 2024 to the midpoint of the 2025 guidance range, driven by acquisitions, strong renewal execution, and portfolio management.
High Occupancy Rates
The company's portfolio occupancy remains near historical highs at 97% with a weighted average lease term of approximately ten years, highlighting the durability of their leases.
Acquisition of York Space Systems
Acquired York Space Systems headquarters in Colorado for $29 million at a cap rate in the low elevens, positioning the company towards its goal of 15% government-adjacent exposure.
Development Pipeline Progress
Major projects like the FDA Atlanta are nearing completion, and the company expects improvements in cash leverage upon project completion.
Financial Stability and Creditworthiness
Successfully recast and upsized a senior unsecured term loan and received a reaffirmation of their investment-grade rating with a stable outlook from KBRA.
Negative Updates
Government Shutdown Concerns
The federal government shutdown may slow down certain processes, although it is not expected to impact the company's lease payments.
Delayed Project Completion
The completion date for the FLACSAF warehouse has been pushed out by two quarters due to ongoing design work by the government.
Leverage Challenges
The company is targeting a medium-term cash leverage goal of six times, down from historical levels of seven to eight times, as part of leverage optimization efforts.
Company Guidance
During Easterly Government Properties' third quarter 2025 earnings call, the management team highlighted several key metrics and strategic priorities. They reported a 3% growth in core funds from operations (FFO) from 2024 to the midpoint of their guidance range for 2025, driven by acquisitions and strong renewal execution. The company maintained high portfolio occupancy at 97% with a weighted average lease term of approximately ten years. Easterly aims for 2% to 3% annual growth in core FFO and is focused on expanding their portfolio with a goal of achieving 15% government-adjacent exposure. They are also targeting a medium-term cash leverage goal of six times, down from historical levels of seven to eight times, to enhance investor comparability and reduce capital costs. For 2026, Easterly has issued full-year core FFO per share guidance in the range of $3.05 to $3.12, reflecting continued growth from development projects like FDA Atlanta and strategic acquisitions.

Easterly Government Properties Financial Statement Overview

Summary
Easterly Government Properties demonstrates solid operational performance with strong gross and EBITDA margins, though net profitability remains a concern. The balance sheet reflects a stable financial structure with moderate leverage. Cash flow generation is robust, with significant growth in free cash flow, enhancing the company's financial flexibility. Overall, the company is positioned well in its industry, but improvements in net profitability and return on equity could enhance its financial standing.
Income Statement
65
Positive
Easterly Government Properties shows a stable revenue growth trend with a 3.6% increase in TTM. The gross profit margin remains strong at 66.8%, indicating efficient cost management. However, the net profit margin is relatively low at 4.2%, suggesting potential challenges in controlling non-operating expenses. The EBIT and EBITDA margins are healthy, reflecting operational efficiency.
Balance Sheet
58
Neutral
The company maintains a moderate debt-to-equity ratio of 0.88, indicating a balanced approach to leveraging. The return on equity is low at 1.3%, which may point to inefficiencies in generating returns from shareholders' equity. The equity ratio is not explicitly calculated but suggests a stable capital structure given the total assets and equity figures.
Cash Flow
72
Positive
The cash flow statement reveals a significant improvement in free cash flow growth at 67.9% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.17, which is relatively low, suggesting that not all earnings are translating into cash flow. However, the free cash flow to net income ratio of 1.0 indicates that the company is effectively converting its earnings into free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue327.31M302.05M287.23M293.61M274.86M245.08M
Gross Profit218.75M200.98M93.51M97.67M187.74M169.52M
EBITDA269.87M179.34M161.52M181.19M163.85M142.81M
Net Income13.76M19.55M18.20M31.47M30.06M11.96M
Balance Sheet
Total Assets3.38B3.22B2.88B2.83B2.83B2.46B
Cash, Cash Equivalents and Short-Term Investments4.36M19.35M11.38M7.58M11.13M8.46M
Total Debt1.17B1.60B1.29B1.25B1.21B978.26M
Total Liabilities2.00B1.84B1.47B1.42B1.38B1.16B
Stockholders Equity1.33B1.32B1.32B1.24B1.28B1.15B
Cash Flow
Free Cash Flow241.82M162.63M114.48M196.03M481.39M145.20M
Operating Cash Flow241.82M162.63M114.48M125.94M118.34M145.20M
Investing Cash Flow-415.96M-409.64M-127.01M-69.10M-363.04M-290.18M
Financing Cash Flow149.14M252.88M17.19M-59.71M250.17M144.10M

Easterly Government Properties Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.55
Price Trends
50DMA
22.55
Negative
100DMA
22.37
Negative
200DMA
22.94
Negative
Market Momentum
MACD
-0.19
Positive
RSI
41.13
Neutral
STOCH
30.36
Neutral
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 21.55 is below the 20-day moving average (MA) of 21.99, below the 50-day MA of 22.55, and below the 200-day MA of 22.94, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 30.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DEA.

Easterly Government Properties Risk Analysis

Easterly Government Properties disclosed 70 risk factors in its most recent earnings report. Easterly Government Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Easterly Government Properties Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$2.17B12.193.79%4.94%3.15%1.96%
$993.64M71.821.00%9.94%11.02%-30.91%
$1.00B-4.45%6.21%-1.23%9.10%
$1.51B-2.52%-1.68%63.27%
$602.78M-3.22-19.17%15.32%-5.52%40.27%
$1.48B-9.83-10.10%3.24%-11.04%-58.49%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DEA
Easterly Government Properties
21.55
-9.53
-30.66%
PDM
Piedmont Office
8.05
-1.59
-16.49%
BDN
Brandywine Realty
3.46
-1.04
-23.11%
PGRE
Paramount Group
6.53
1.68
34.64%
JBGS
JBG Smith Properties
20.13
3.83
23.50%
NLOP
Net Lease Office Properties
28.73
1.50
5.51%

Easterly Government Properties Corporate Events

Easterly Government Properties Reports Strong Q3 2025 Results
Oct 28, 2025

Easterly Government Properties, Inc., a real estate investment trust (REIT) based in Washington, D.C., specializes in acquiring, developing, and managing Class A commercial properties leased to the U.S. Government and its partners.

Easterly Government Properties Shines Amid Challenges
Oct 28, 2025

The recent earnings call for Easterly Government Properties Inc. showcased a robust operational performance, marked by notable achievements in core FFO growth, high occupancy rates, and strategic acquisitions. Despite these successes, the call also highlighted challenges, including potential impacts from government shutdowns, project delays, and efforts to optimize leverage.

Business Operations and StrategyExecutive/Board Changes
Easterly Government Properties Grants Equity Awards to Management
Neutral
Aug 28, 2025

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.

The most recent analyst rating on (DEA) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Private Placements and Financing
Easterly Government Properties Amends Term Loan Agreement
Positive
Aug 21, 2025

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.

The most recent analyst rating on (DEA) stock is a Buy with a $24.50 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Easterly Government Properties Reports Q2 2025 Earnings
Aug 6, 2025

Easterly Government Properties, Inc. is a real estate investment trust (REIT) specializing in the acquisition, development, and management of Class A commercial properties leased to the U.S. Government and its partners.

Easterly Government Properties: Resilient Growth Amid Challenges
Aug 6, 2025

Easterly Government Properties Inc. recently held its earnings call, revealing a positive sentiment overall, despite some minor challenges. The company showcased strong financial performance, with growth in core Funds From Operations (FFO) and successful lease renewals, underscoring its operational resilience. However, the company also faces challenges related to a dividend reset and elevated cost of capital. Nevertheless, Easterly remains well-positioned to pursue growth opportunities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 28, 2025