Easterly Government Properties (DEA)
NYSE:DEA
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Easterly Government Properties
(NYSE:DEA)
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Rating:63Neutral
Price Target:
$25.00
â–²(6.34% Upside)
Action:ReiteratedDate:04/28/26
Overall score reflects a mixed financial profile (thin bottom-line profitability, leverage, and gross profit volatility) balanced by improving cash generation, constructive technical momentum, and a supportive earnings-call backdrop (raised FFO guidance and strong occupancy). Valuation is a drag due to a very high P/E, only partly offset by the high dividend yield.
Positive Factors
High occupancy and long lease tenor
Sustained 97% occupancy and ~9.4-year WALT reflect mission-critical federal tenancy and long-duration cash flows. These structural lease characteristics reduce rollover risk, increase revenue predictability, and support durable rental income through economic cycles and budgeting fluctuations.
Negative Factors
Elevated leverage and weak coverage metrics
Adjusted net debt/EBITDA near 7.3x and historically meaningful debt levels limit financial flexibility. High leverage raises refinancing and interest-rate sensitivity, constraining the firm's ability to aggressively fund development or acquisitions without meaningful deleveraging or capital-markets access improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy and long lease tenor
Sustained 97% occupancy and ~9.4-year WALT reflect mission-critical federal tenancy and long-duration cash flows. These structural lease characteristics reduce rollover risk, increase revenue predictability, and support durable rental income through economic cycles and budgeting fluctuations.
Read all positive factors
Easterly Government Properties (DEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend Yield9.58%
Average Volume (3M)385.01K
Price to Earnings (P/E)181.6
Beta (1Y)0.41
Revenue Growth13.93%
EPS Growth-43.58%
CountryUS
Employees50
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.02
Shares Outstanding46,449,375
10 Day Avg. Volume358,296
30 Day Avg. Volume385,015
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 Cap2.05
Enterprise Value/Revenue6.43
Enterprise Value/Gross Profit12.82
Enterprise Value/Ebitda10.77
Forecast
1Y Price Target
$23.50Price Target Upside-0.04% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.46
Revenue Forecast (FY)$356.18M
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
DEA primarily makes money by collecting rental revenue from properties it owns that are leased to U.S. federal government tenants. Its key revenue stream is contractual base rent under long-term leases (often structured as net or partially net lea...
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 | 1.17B | 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
23.51
Price Trends
22.64
Positive
22.19
Positive
21.78
Positive
Market Momentum
0.27
Negative
66.38
Neutral
93.76
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 23.51 is above the 20-day moving average (MA) of 22.21, above the 50-day MA of 22.64, and above the 200-day MA of 21.78, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 66.38 is Neutral, neither overbought nor oversold. The STOCH value of 93.76 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% | |
63 Neutral | $1.09B | 181.57 | 1.11% | 9.58% | 13.93% | -43.58% | |
57 Neutral | $1.04B | -15.87 | -5.45% | 6.09% | -0.50% | -40.17% | |
54 Neutral | $526.17M | -2.42 | -24.73% | 17.55% | -2.12% | 3.11% | |
46 Neutral | $191.04M | -9.94 | -18.93% | 4.14% | 3.10% | -900.13% | |
46 Neutral | $1.11B | -5.54 | -10.61% | 4.01% | -8.90% | -26.37% |
* Real Estate Sector Average
DEA
Easterly Government Properties
23.56
4.45
23.31%
ELME
Elme Communities
2.15
-0.24
-9.89%
PDM
Piedmont Office
8.33
1.84
28.35%
BDN
Brandywine Realty
3.02
-0.60
-16.64%
JBGS
JBG Smith Properties
14.71
0.45
3.16%
OGCP
Empire State Realty OP Series 60
5.50
-1.91
-25.80%
Easterly Government Properties Corporate Events
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.