Easterly Government Properties Inc. (DEA)
NYSE:DEA
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Easterly Government Properties
(NYSE:DEA)
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Rating:57Neutral
Price Target:
$24.50
â–²(10.61% Upside)
Action:ReiteratedDate:02/24/26
The score is driven primarily by steady but mixed fundamentals: improved 2025 cash generation and resilient top-line performance are offset by materially weaker net profitability and meaningful leverage. Technicals are modestly supportive but not strongly bullish, while valuation is a headwind due to a very high P/E despite an attractive dividend yield. The earnings call reinforces a stable outlook with modest FFO growth guidance, tempered by leverage and government-related uncertainty.
Positive Factors
Mission‑critical government tenancy
A 97% occupancy rate and ~10‑year weighted lease term provide durable, predictable cash flows with low counterparty credit risk given federal tenants. This stability supports reliable FFO and dividend capacity over multi‑year horizons and underpins leasing resilience versus private‑sector office demand.
Negative Factors
Elevated cash leverage
A 7.5x net debt leverage ratio leaves limited balance‑sheet cushion and raises refinancing and interest‑rate sensitivity risk. Until leverage approaches target levels, capital allocation and growth will be constrained and refinancing at higher costs could pressure future FFO and dividend sustainability.
Read all positive and negative factors
Positive Factors
Negative Factors
Mission‑critical government tenancy
A 97% occupancy rate and ~10‑year weighted lease term provide durable, predictable cash flows with low counterparty credit risk given federal tenants. This stability supports reliable FFO and dividend capacity over multi‑year horizons and underpins leasing resilience versus private‑sector office demand.
Read all positive factors
Easterly Government Properties (DEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend Yield9.58%
Average Volume (3M)441.38K
Price to Earnings (P/E)73.2
Beta (1Y)0.34
Revenue Growth11.02%
EPS Growth-30.91%
CountryUS
Employees50
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.10
Shares Outstanding46,318,714
10 Day Avg. Volume307,720
30 Day Avg. Volume441,381
Financial Highlights & Ratios
PEG Ratio-1.98
Price to Book (P/B)0.72
Price to Sales (P/S)2.83
P/FCF Ratio3.67
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue6.46
Enterprise Value/Gross Profit13.13
Enterprise Value/Ebitda10.76
Forecast
1Y Price Target
$23.67Price Target Upside6.86% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.49
Revenue Forecast (FY)$351.50M
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 mana...
How the Company Makes Money
Easterly Government Properties generates revenue primarily through long-term leases with U.S. government agencies, which provide a stable and predictable income stream. The company typically enters into lease agreements that are structured to alig...
Easterly Government Properties Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call emphasized durable, mission-critical portfolio characteristics, steady operational metrics (97% occupancy), and repeatable core FFO growth (nearly 6% Q4 and ~3% full-year) alongside active development progress and a disciplined acquisition strategy. Key near-term challenges include an elevated cash leverage ratio (7.5x) that management expects to reduce, and external uncertainty from federal budget/headline risks that could affect timing of opportunities. Management conveyed confidence in the pipeline and balance sheet actions to support continued execution.Positive Updates
High Portfolio Occupancy and Lease Duration
Portfolio occupancy near historical highs at 97% and a weighted average lease term of roughly 10 years, supporting stable and predictable cash flows.
Negative Updates
Elevated Reported Cash Leverage
Current cash leverage is 7.5x (net debt to annualized quarterly EBITDA), above the company's medium-term objective of ~6x, representing an elevated leverage profile that management is working to reduce via reimbursements and balance sheet actions.
Read all updates
Q4-2025 Updates
Positive
Negative
High Portfolio Occupancy and Lease Duration
Portfolio occupancy near historical highs at 97% and a weighted average lease term of roughly 10 years, supporting stable and predictable cash flows.
Read all positive updates
Company Guidance
Management maintained 2026 full‑year core FFO per share guidance of $3.05–$3.12 (≈3% core FFO/share growth at the midpoint and consistent with the 2–3% annual target), with the midpoint driven by delivery of FDA Atlanta, renewal execution and efficiencies; guidance assumes $50M–$100M of gross development‑related investment and $50M of wholly‑owned acquisitions, and management cited a deal pipeline of roughly $1.0B–$1.5B. Recent operating and balance‑sheet metrics that underpin the outlook include Q4 cash available for distribution of $29.1M and full‑year CAD of $118.0M, Q4 core FFO/share of $0.77 (+~6% YoY) and FY core FFO/share of $2.99 (+~3% YoY), current cash leverage (net debt/annualized quarterly EBITDA) of 7.5x (expected to decline as reimbursements arrive) and a medium‑term leverage objective of ~6.0x. Additional datapoints discussed were a recent $44.5M, ~298k SF Virginia acquisition at a ~11% going‑in cash cap rate, development deliveries totaling ~200k rentable SF underway, FDA Atlanta reimbursements of $138.1M received (plus $12.6M more and ~ $3M expected), and renewal execution history of 38 leases covering ~2.6M SF with an average renewal rent spread of ~14%, weighted average renewal term of 15.7 years and estimated TI of $37.14/SF.Easterly Government Properties Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
65
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 336.10M | 302.05M | 287.23M | 293.61M | 274.86M |
| Gross Profit | -3.11M | 200.98M | 184.80M | 195.93M | 187.74M |
| EBITDA | 201.91M | 179.34M | 161.52M | 181.19M | 163.85M |
| Net Income | 13.00M | 19.55M | 18.80M | 31.47M | 30.06M |
Balance Sheet | |||||
| Total Assets | 3.38B | 3.22B | 2.88B | 2.83B | 2.83B |
| Cash, Cash Equivalents and Short-Term Investments | 23.37M | 19.35M | 9.38M | 7.58M | 11.13M |
| Total Debt | 1.68B | 1.60B | 1.29B | 1.25B | 1.21B |
| Total Liabilities | 2.01B | 1.84B | 1.47B | 1.42B | 1.38B |
| Stockholders Equity | 1.32B | 1.32B | 1.32B | 1.24B | 1.28B |
Cash Flow | |||||
| Free Cash Flow | 259.19M | 162.63M | 114.48M | 125.94M | 481.39M |
| Operating Cash Flow | 259.19M | 162.63M | 114.48M | 125.94M | 118.34M |
| Investing Cash Flow | -285.29M | -409.64M | -127.01M | -69.10M | -363.04M |
| Financing Cash Flow | 31.92M | 252.88M | 17.19M | -59.71M | 250.17M |
Easterly Government Properties Technical Analysis
Positive
22.15
Price Trends
22.58
Negative
22.02
Positive
21.71
Positive
Market Momentum
-0.22
Negative
51.88
Neutral
79.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DEA, the sentiment is Positive. The current price of 22.15 is above the 20-day moving average (MA) of 21.85, below the 50-day MA of 22.58, and above the 200-day MA of 21.71, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 79.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DEA.
Easterly Government Properties Risk Analysis
Easterly Government Properties disclosed 71 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $1.03B | 73.21 | 0.98% | 9.58% | 11.02% | -30.91% | |
51 Neutral | $848.88M | -6.00 | -4.45% | 6.09% | -1.23% | 9.10% | |
51 Neutral | $461.70M | -2.82 | -20.40% | 17.55% | -5.52% | 40.27% | |
46 Neutral | $182.16M | -9.94 | -18.93% | 4.14% | 3.10% | -900.13% | |
46 Neutral | $1.10B | -5.54 | -10.61% | 4.01% | -11.04% | -58.49% |
* Real Estate Sector Average
DEA
Easterly Government Properties
22.15
0.24
1.08%
ELME
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2.05
-0.24
-10.48%
PDM
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6.79
0.24
3.66%
BDN
Brandywine Realty
2.65
-0.72
-21.43%
JBGS
JBG Smith Properties
14.56
-0.08
-0.57%
OGCP
Empire State Realty OP Series 60
4.88
-1.84
-27.39%
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.