Easterly Government Properties (DEA) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 9.64%
• Average Volume (3M): 483.62K
• Price to Earnings (P/E): 57.2
• Beta (1Y): 0.50
• Revenue Growth: 8.18%
• EPS Growth: -15.35%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Office
• EPS (TTM): 0.09
• Shares Outstanding: 45,354,115
• 10 Day Avg. Volume: 569,040
• 30 Day Avg. Volume: 483,616
• 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: 2.74
• Enterprise Value/Revenue: 8.79
• Enterprise Value/Gross Profit: 13.48
• Enterprise Value/Ebitda: 14.54
• 1Y Price Target: $23.50
• Price Target Upside: 1.78% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $24.00 ▲(3.94% Upside)

Easterly Government Properties demonstrates stable financial performance with strong operational efficiency and attractive dividend yield. However, high P/E ratio and challenges in profitability and cash flow management weigh on the score. Positive earnings call sentiment and recent corporate events provide a boost, indicating potential for future growth.

Positive Factors

Acquisition Strategy

Easterly Government Properties has announced a revised strategy focused on delivering consistent annual growth by expanding its targeted acquisitions to include assets leased to high-credit companies.

Lease Development

DEA was awarded a lease to develop a ~64k sf laboratory in Fort Myers, Florida, leased to FDLE for up to 35 years.

Occupancy Rate

Easterly has consistently remained over 95% leased with stable tenants backed by US government credit, aiming to significantly increase its rental income in the next decade.

Negative Factors

Debt Levels

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

Dividend Cut

The company's recent dividend cut has been a factor affecting its stock performance.

Government Workforce Reductions

Continued reductions to the government workforce can eventually impact DEA's portfolio, posing a risk to its tenant base.

Easterly Government Properties Business Overview & Revenue Model

Company Description

Easterly Government Properties, Inc. (DEA) is a real estate investment trust (REIT) that focuses on acquiring, developing, and managing commercial properties leased to the U.S. government. The company specializes in sectors such as federal office buildings and other facilities that house government agencies. DEA's core products include long-term leases with federal tenants, providing stable and predictable cash flows while contributing to the needs of government operations.

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: Positive
• Last Price: 23.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 23.09 is above the 20-day moving average (MA) of 22.02, above the 50-day MA of 22.16, and below the 200-day MA of 24.09, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.96 is Neutral, neither overbought nor oversold. The STOCH value of 74.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 Neutral	$1.60B	―	-2.52%	0.56%	-1.68%	63.27%
DEA	66 Neutral	$1.01B	57.23	1.28%	9.64%	8.18%	-15.35%
PDM	57 Neutral	$1.01B	―	-4.27%	5.97%	-6.74%	17.44%
BDN	57 Neutral	$717.76M	―	-29.94%	14.25%	-3.05%	-94.96%
JBGS	53 Neutral	$1.58B	―	-9.19%	3.36%	-11.33%	-22.04%
Sector *	53 Neutral	$1.24B	2.96	-5.63%	5.76%	-4.15%	-87.10%
NLOP	―	$446.50M	―	-27.08%	1.05%	―	―

Easterly Government Properties Corporate Events

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.

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.