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Easterly Government Properties (DEA)
NYSE:DEA
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Easterly Government Properties (DEA) AI Stock Analysis

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DEA

Easterly Government Properties

(NYSE:DEA)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
$27.00
▲(7.10% Upside)
Action:Reiterated
Date:08/05/26
DEA scores in the low 60s primarily because financial performance is steady but constrained by thin profitability and low ROE, despite solid and improving cash generation. Technicals add support with an uptrend across key moving averages and positive MACD. Valuation is the main drag due to a very high P/E, partially offset by a strong dividend yield. The latest earnings call was a net positive with raised core FFO guidance and strong occupancy, tempered by refinancing and rate-related risks.
Positive Factors
Cash generation
Consistent positive operating and free cash flow gives Easterly durable internal funding for maintenance, dividends, and selected development. Strong cash conversion reduces near-term reliance on external capital, supporting steady FFO and the company’s ability to execute its $1.5B pipeline over the medium term.
Negative Factors
Thin profitability / low ROE
Persistently low ROE and compressed net margins indicate limited capital efficiency and constrained ability to convert revenue gains into shareholder earnings. Over time this weak profitability can force more reliance on external funding for growth and reduce resilience to operating shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow gives Easterly durable internal funding for maintenance, dividends, and selected development. Strong cash conversion reduces near-term reliance on external capital, supporting steady FFO and the company’s ability to execute its $1.5B pipeline over the medium term.
Read all positive factors

Easterly Government Properties (DEA) vs. SPDR S&P 500 ETF (SPY)

Easterly Government Properties Business Overview & Revenue Model

Company Description
Easterly Government Properties, Inc. (NYSE:DEA), headquartered in Washington, D.C., focuses its operations on acquiring, developing, and overseeing high-quality commercial real estate that is exclusively rented by the U.S. Government. The company'...
How the Company Makes Money
DEA makes money primarily by owning real estate and collecting rental income under leases with U.S. federal government tenants. Its core revenue stream is base rent paid by federal agencies occupying its properties, typically under long-term lease...

Easterly Government Properties Earnings Call Summary

Earnings Call Date:Aug 03, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call communicated solid operational and financial results: double‑digit revenue growth (+10% YoY), positive EBITDA and FFO per‑share trends (~5% YoY), high occupancy (98%), a long WALE (9.2 years), progress on deleveraging (net debt/EBITDA 7.3x) and successful capital markets activity (attractive $200M term loan). Headwinds remain from a challenging interest‑rate environment, a near‑term mortgage refinance (Loma Linda), and some lease/timing uncertainties (FAA move). Given the breadth and materiality of the positive developments and the company’s clear plan/options to fund the pipeline, the highlights outweigh the lowlights.
Positive Updates
Core FFO per Share Growth Above Long‑Term Target
Core FFO per share $0.78 vs $0.74 prior year (~5% YoY / management reported 5.4%), above the company's 2%–3% long‑term growth target; company raised full‑year core FFO per share guidance midpoint by $0.01 to $3.10 (revised range $3.07–$3.13).
Negative Updates
Persistently Challenging Interest Rate Environment
Management noted elevated interest rates and geopolitical volatility that have not improved, constraining cost of capital and limiting the speed/attractiveness of some acquisition opportunities.
Read all updates
Q2-2026 Updates
Negative
Core FFO per Share Growth Above Long‑Term Target
Core FFO per share $0.78 vs $0.74 prior year (~5% YoY / management reported 5.4%), above the company's 2%–3% long‑term growth target; company raised full‑year core FFO per share guidance midpoint by $0.01 to $3.10 (revised range $3.07–$3.13).
Read all positive updates
Company Guidance
Easterly raised full-year core FFO per share guidance by $0.01 at the midpoint to $3.10 (revised range $3.07–$3.13), a move the company says reflects strong operating results (Q2 revenue $92.4M, +10% y/y; EBITDA $58.4M, +~8%; net income $0.07 diluted) and confidence in continued cash‑flow growth (Q2 FFO and core FFO per share $0.78, up from $0.74, ~5% y/y; cash available for distribution ~$25.8M). The guidance midpoint assumes $50M–$100M of gross development-related investment and $50M of wholly‑owned acquisitions this year, supported by a $1.5B pipeline, a newly closed $200M 5‑year term loan (with $50M accordion) at +130 bps over SOFR, occupancy of 98%, WALT of 9.2 years, net debt to annualized quarterly EBITDA of 7.3x, maintenance CapEx of $1.50–$2.00/sq ft expected for the year, a $30M–$50M mezzanine target, and a continued push toward an additional investment‑grade rating in 2027.

Easterly Government Properties Financial Statement Overview

Summary
Financials look stable but not high-quality: revenue has been steadily growing and cash flow is consistently positive (a clear strength), but net profitability has thinned in TTM and returns on equity are low. Leverage is improving directionally, yet debt remains meaningful and cash flow-to-debt coverage has been uneven, keeping the score in the mid-range.
Income Statement
56
Neutral
Balance Sheet
52
Neutral
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue357.15M336.10M302.05M287.23M293.61M274.86M
Gross Profit181.81M-3.11M200.98M184.80M195.93M187.74M
EBITDA212.10M201.91M179.34M161.52M181.19M163.85M
Net Income10.22M13.00M19.55M18.80M31.47M30.06M
Balance Sheet
Total Assets3.42B3.38B3.22B2.88B2.83B2.83B
Cash, Cash Equivalents and Short-Term Investments3.30M23.37M19.35M9.38M7.58M11.13M
Total Debt1.17B1.67B1.60B1.29B1.25B1.21B
Total Liabilities2.06B2.01B1.84B1.47B1.42B1.38B
Stockholders Equity1.32B1.32B1.32B1.32B1.24B1.28B
Cash Flow
Free Cash Flow268.81M259.19M162.63M114.48M125.94M481.39M
Operating Cash Flow268.81M259.19M162.63M114.48M125.94M118.34M
Investing Cash Flow-202.40M-285.29M-409.64M-127.01M-69.10M-363.04M
Financing Cash Flow-66.81M31.92M252.88M17.19M-59.71M250.17M

Easterly Government Properties Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.21
Price Trends
50DMA
24.54
Positive
100DMA
23.49
Positive
200DMA
22.46
Positive
Market Momentum
MACD
0.15
Positive
RSI
51.85
Neutral
STOCH
73.18
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 25.21 is above the 20-day moving average (MA) of 25.07, above the 50-day MA of 24.54, and above the 200-day MA of 22.46, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 73.18 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
61
Neutral
$1.13B102.610.78%7.14%13.93%-43.58%
60
Neutral
$1.21B-14.94-5.39%0.70%-17.55%
52
Neutral
$532.28M-3.71-18.69%10.09%0.51%56.07%
50
Neutral
$1.05B-7.51-9.32%4.82%-3.31%0.50%
44
Neutral
$143.06M-0.92-40.59%7.41%3.10%-900.13%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DEA
Easterly Government Properties
25.04
4.56
22.27%
ELME
Elme Communities
1.64
-0.83
-33.52%
PDM
Piedmont Office
9.66
1.87
24.01%
BDN
Brandywine Realty
3.20
-0.49
-13.21%
JBGS
JBG Smith Properties
12.20
-7.12
-36.85%
OGCP
Empire State Realty OP Series 60
4.90
-2.32
-32.14%

Easterly Government Properties Corporate Events

Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Easterly Government Properties Updates Equity Offering Program
Positive
Aug 5, 2026
On August 4, 2026, Easterly Government Properties filed a new prospectus supplement with the SEC for its existing at-the-market equity offering program, allowing continued sales of common stock and the addition of both contingent and non-contingen...
Business Operations and StrategyPrivate Placements and Financing
Easterly Government Properties Enhances Liquidity with New Term Loan
Positive
Jun 30, 2026
On June 25, 2026, Easterly Government Properties closed a new $200 million senior unsecured term loan agreement, including an accordion feature that could expand the facility to $250 million and maturing in June 2031. The company simultaneously am...
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.Date of analysis: Aug 05, 2026