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Easterly Government Properties
(NYSE:DEA)
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Rating:57Neutral
Price Target:
$26.00
â–²(12.95% Upside)
Action:Reiterated
Date:06/30/26
DEA scores as a middle-of-the-road setup primarily due to a mixed financial profile: strong and improving cash generation is offset by thin net profitability, unusual gross profit volatility, and meaningful leverage/low ROE. A constructive earnings call (raised FFO guidance, strong occupancy and lease duration) and a high dividend yield support the score, while the very high P/E and lack of usable technical indicators limit upside confidence.
Positive Factors
High portfolio occupancy and long lease duration
Very high occupancy combined with a ~9.4-year weighted average lease term reflects mission-critical, government-backed tenancy. Long leases reduce vacancy and renewal risk, supporting durable rental cash flows and predictable income to service debt and fund distributions over multiple years.
Negative Factors
Elevated leverage
Leverage near 7.3x adjusted net debt/EBITDA and meaningful debt-to-equity raise refinancing and interest-rate sensitivity. High leverage constrains financial flexibility, slows progress toward investment-grade targets, and increases downside risk if development or leasing outcomes soften over the next 2–3 years.
Read all positive and negative factors
Positive Factors
Negative Factors
High portfolio occupancy and long lease duration
Very high occupancy combined with a ~9.4-year weighted average lease term reflects mission-critical, government-backed tenancy. Long leases reduce vacancy and renewal risk, supporting durable rental cash flows and predictable income to service debt and fund distributions over multiple years.
Read all positive factors
Easterly Government Properties (DEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.19B
Dividend Yield9.58%
Average Volume (3M)402.34K
Price to Earnings (P/E)107.6
Beta (1Y)0.35
Revenue Growth13.93%
EPS Growth-43.58%
CountryUS
Employees50
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.24
Shares Outstanding46,449,375
10 Day Avg. Volume441,986
30 Day Avg. Volume402,340
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 Cap2.36
Enterprise Value/Revenue8.01
Enterprise Value/Gross Profit15.98
Enterprise Value/Ebitda13.42
Forecast
1Y Price Target
$24.25Price Target Upside5.34% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.34
Revenue Forecast (FY)$361.21M
Easterly Government Properties Business Overview & Revenue Model
Company Description
Easterly Government Properties, Inc. (NYSE:DEA), headquartered in Washington, D.C., focuses its operations on acquiring, developing, and overseeing high-quality commercial real estate that is exclusively rented by the U.S. Government. The company'...
How the Company Makes Money
DEA makes money primarily by owning real estate and collecting rental income under leases with U.S. federal government tenants. Its core revenue stream is base rent paid by federal agencies occupying its properties, typically under long-term lease...
Easterly Government Properties Earnings Call Summary
Earnings Call Date:Apr 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive operational and financial picture: solid top-line and EBITDA growth, rising FFO per share, high portfolio occupancy and long lease terms, and expanded capital-allocation options (notably mezzanine lending). Management is cautiously optimistic—raising the low end of guidance and highlighting a meaningful $1.5 billion pipeline and potential to achieve investment-grade status by 2027. Offsetting factors include slightly higher leverage (7.3x adjusted net debt/EBITDA), deferral of equity issuance due to weak share-price conditions, continued interest-rate and market volatility, and timing risk around development deliveries and government leasing. On balance the positives (growth, portfolio quality, new yield-enhancing strategies, and guidance upside) materially outweigh the operational and financing headwinds.Positive Updates
Strong Top-Line Growth
Total revenue rose to $91.5 million in Q1 2026 from $78.7 million a year ago, a 16% year-over-year increase driven by recent acquisitions, contractual rent growth, and lease stability.
Negative Updates
Leverage Pressures — Adjusted Net Debt / EBITDA
Adjusted net debt to annualized quarterly pro forma EBITDA increased to 7.3x during the quarter (edging higher), reflecting timing of equity issuance related to acquisitions and keeping leverage elevated versus targeted investment-grade thresholds.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue rose to $91.5 million in Q1 2026 from $78.7 million a year ago, a 16% year-over-year increase driven by recent acquisitions, contractual rent growth, and lease stability.
Read all positive updates
Company Guidance
Easterly raised the low end of its 2026 FFO guidance by $0.10 (from $3.50 to $3.60) — the company reported a revised full‑year FFO range (as stated on the call) of $3.60 to $3.12 — and said the midpoint of guidance assumes $50–$100 million of gross development‑related investment and $50 million of wholly owned acquisitions, supported by a $1.5 billion development pipeline; management reiterated a long‑term growth target of 2–3% and a target acquisition spread of ~100 basis points to cost of capital (50–100 bp defined range). Guidance is underpinned by strong Q1 results: total revenue $91.5M (+16% YoY), EBITDA $57.3M (+12%), FFO/share $0.76 (+7%), core FFO/share $0.77 (+~5.5%), cash available for distribution ~$32.2M, occupancy 97%, WALT ~9.4 years, and adjusted net debt to annualized pro forma EBITDA of 7.3x; the company also closed a $7M mezzanine loan (12% yield) on a 120k SF VA clinic (20‑year commitment, expected Oct 2028) and said pursuing an investment‑grade rating in 2027 could add ~100–150 bp of FFO over five years.Easterly Government Properties Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 348.97M | 336.10M | 302.05M | 287.23M | 293.61M | 274.86M |
| Gross Profit | 175.01M | -3.11M | 200.98M | 184.80M | 195.93M | 187.74M |
| EBITDA | 208.25M | 201.91M | 179.34M | 161.52M | 181.19M | 163.85M |
| Net Income | 11.24M | 13.00M | 19.55M | 18.80M | 31.47M | 30.06M |
Balance Sheet | ||||||
| Total Assets | 3.42B | 3.38B | 3.22B | 2.88B | 2.83B | 2.83B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02M | 23.37M | 19.35M | 9.38M | 7.58M | 11.13M |
| Total Debt | 1.71B | 1.67B | 1.60B | 1.29B | 1.25B | 1.21B |
| Total Liabilities | 2.06B | 2.01B | 1.84B | 1.47B | 1.42B | 1.38B |
| Stockholders Equity | 1.31B | 1.32B | 1.32B | 1.32B | 1.24B | 1.28B |
Cash Flow | ||||||
| Free Cash Flow | 262.34M | 259.19M | 162.63M | 114.48M | 125.94M | 481.39M |
| Operating Cash Flow | 262.34M | 259.19M | 162.63M | 114.48M | 125.94M | 118.34M |
| Investing Cash Flow | -313.48M | -285.29M | -409.64M | -127.01M | -69.10M | -363.04M |
| Financing Cash Flow | 46.33M | 31.92M | 252.88M | 17.19M | -59.71M | 250.17M |
Easterly Government Properties Technical Analysis
Positive
23.02
Price Trends
23.65
Positive
22.92
Positive
22.02
Positive
Market Momentum
0.43
Negative
69.06
Neutral
90.32
Negative
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 23.02 is below the 20-day moving average (MA) of 24.17, below the 50-day MA of 23.65, and above the 200-day MA of 22.02, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 90.32 is Negative, 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 | $1.19B | 107.58 | 0.85% | 9.58% | 13.93% | -43.58% | |
57 Neutral | $1.20B | -13.73 | -5.70% | 6.09% | -0.50% | -40.17% | |
52 Neutral | $564.50M | -2.82 | -24.69% | 17.55% | -2.12% | 3.11% | |
50 Neutral | $1.15B | -8.27 | -9.32% | 4.01% | -3.31% | 0.50% | |
45 Neutral | $141.28M | -0.91 | -25.72% | 4.14% | 3.10% | -900.13% |
* Real Estate Sector Average
DEA
Easterly Government Properties
25.54
4.87
23.54%
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1.59
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PDM
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3.24
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JBGS
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15.47
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OGCP
Empire State Realty OP Series 60
5.40
-2.25
-29.42%
Easterly Government Properties Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Easterly Government Properties Enhances Liquidity with New Term Loan
Positive
Jun 30, 2026
On June 25, 2026, Easterly Government Properties closed a new $200 million senior unsecured term loan agreement, including an accordion feature that could expand the facility to $250 million and maturing in June 2031. The company simultaneously am...
Executive/Board ChangesShareholder Meetings
Easterly Government Properties Shareholders Back Board and Compensation
Positive
Apr 24, 2026
On April 22, 2026, Easterly Government Properties stockholders elected seven director nominees, including Darrell W. Crate and Tara S. Innes, to serve until the next annual meeting, reflecting continued support for the existing board leadership. S...
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.