Easterly Government Properties Inc (DEA)

Over the past six months, Easterly Government Properties reported Q3 2025 earnings with net income of $1.2 million and core FFO of $0.76 per share, while revenue surpassed estimates. The company adjusted its quarterly dividend by approximately 32.0% to $0.18 per share (which became $0.45 per share after the reverse stock split) and implemented a 1-for-2.5 reverse stock split. Analyst ratings have been mixed, with upgrades and downgrades from various firms. The company acquired land for development in Fort Myers, Florida, and a facility in Greenwood Village, Colorado, and disclosed a development in Medford, Oregon. Easterly amended and upsized its senior unsecured term loan and Kroll Bond Rating Agency (KBRA) affirmed Easterly's BBB issuer and securities ratings with a Stable Outlook. The company has expressed confidence in its lease agreements despite potential impacts from federal government shutdowns.

Demand for Easterly Government Properties' products and services exhibits little to no seasonality due to its primary tenants being U.S. government agencies with enduring missions. This focus on essential government functions provides a stable revenue stream and high occupancy rates, making demand consistent throughout the year.

Easterly Government Properties, Inc. (DEA) is a real estate investment trust (REIT) focused on acquiring, developing, and managing Class A commercial properties leased to U.S. government agencies, state and local governments, and private tenants. The company operates within the Real Estate sector, specifically in the REIT - Office and Residential & Commercial REITs industries, providing leased commercial properties and property management services.

As of September 30, 2025, Easterly Government Properties owns 102 operating properties across the United States, encompassing approximately 10.2 million leased square feet. The portfolio includes properties leased primarily to U.S. Government tenant agencies, U.S. state or local government agencies, and private tenants. The company's properties are strategically located, often near significant federal installations, intelligence agencies, and judicial centers.

Easterly Government Properties has maintained a generally stable brand reputation, supported by an investment-grade credit rating (BBB with Stable Outlook) from KBRA, highlighting financial stability and strong tenant credit quality. Management emphasizes the stability of government-backed leases and the mission-critical nature of assets. The dividend cut and reverse stock split were framed as strategic moves to align with peer practices and free up cash for growth. The company's high portfolio occupancy and long weighted average lease term underscore the durability of its tenancy.

Institutional investors hold a significant portion of Easterly Government Properties' stock, ranging from 72.54% to 86.51%, while insider ownership is relatively lower, between 1.07% and 36.30%. Major institutional owners include Blackrock Inc., Vanguard Group Inc., and State Street Corp. Key individual/insider owners include Usgp II Investor LP and Michael P. Ibe.