Easterly Government Properties on Dec. 24 announced the acquisition of a 149,110-square foot US Department of the Interior (DOI) regional office and warehouse facility in Billings, Montana.
Easterly Government Properties (DEA) said the property is a leased regional facility that accommodates several of DOI’s key units, including the Rocky Mountain Regional Office for the Bureau of Indian Affairs (BIA). Financial terms of the transaction weren’t disclosed.
The property is a first-generation, single tenant US government leased facility under a 20-year non-cancellable lease that expires on Apr. 2033 end.
“It gives me great pleasure to exceed our 2020 acquisition guidance with the closing of such an important facility,” said Easterly Government Properties CEO William C. Trimble, III.
On Dec. 23, BMO Capital analyst John Kim initiated coverage on DEA stock with a Buy rating and a price target of $26 (17% upside potential).
“Given its ownership of mission-critical assets leased to the US government, DEA serves as a bond proxy trading at a wider-than-expected spread, in our view. We believe DEA has the opportunity and cost of capital to exceed its acquisition guidance, and outpace its recent lackluster growth,” Kim wrote in a note to investors. (See DEA stock analysis on TipRanks)
Overall, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys and 2 Holds. With shares, down 6.5% year-to-date, the average price target stands at $25.33 and implies upside potential of 14.2% to current levels.
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