Easterly Government Properties (E050) Q3 2026 Earnings Report

The call was predominantly positive. Management reported solid revenue, EBITDA, FFO, portfolio occupancy, lease renewal, cash distribution, and leverage results; raised the low end of 2026 guidance; completed a major development project; and highlighted an actionable acquisition pipeline and progress toward investment-grade credit. These positives were tempered by moderate 2027 growth guidance, the expected FAA Chicago move-out, Loma Linda refinancing pressure, the Bedford loan repayment impact, the Medford project delay, and continued macroeconomic uncertainty.

For 2026, the company raised core FFO per share guidance to $3.08 to $3.13 per share from $3.07 to $3.13 previously, with the midpoint of guidance implying approximately 4% growth versus its stated long term 2% to 3% growth objective. For 2027, initial full year core FFO per share guidance is $3.09 to $3.17 per share, with the midpoint implying roughly 1% growth over the 2026 midpoint and the high end implying roughly 2%, the low end of the long term target; guidance assumes FAA Chicago remains occupied through April 20, 2027, includes between $25 million and $50 million of growth development related investment and approximately $50 million of wholly owned acquisitions, and incorporates the FAA Chicago move out and refinancing related pressure largely driven by the maturity of the Loma Linda loan. The company continues to expect mid- to high teens net effective rent spread on upcoming 2027 and 2028 renewals, with 10 to 15 of firm term achievable under these days.