Easterly Government Properties, Inc. (DEA)
Easterly Government Properties, Inc. is a REIT focused on acquiring, developing, and managing Class A commercial properties leased to the U.S. Government. The company's expertise lies in understanding the specific needs of mission-critical government agencies.
Company Overview
Easterly Government Properties offers investors stable, long-term income through its specialized focus on acquiring and managing properties leased to the U.S. Government, providing a unique and defensible niche within the REIT sector with a high dividend yield of 8.33%.
Investment Thesis
Easterly Government Properties presents a compelling investment opportunity due to its unique focus on U.S. Government-leased properties, offering stable and predictable cash flows. The company's high dividend yield of 8.33% is particularly attractive in the current low-interest-rate environment. Easterly's experienced management team and specialized knowledge of government leasing requirements provide a competitive advantage. Growth catalysts include ongoing government demand for modern, secure office space and Easterly's ability to acquire and develop properties that meet these needs. The company's consistent occupancy rates and long-term lease agreements with the U.S. Government provide a strong foundation for continued growth and value creation. While the P/E ratio is high at 77.60, the stability and predictability of the company's revenue stream justify a premium valuation.
Key Highlights
- Market capitalization of $1.11 billion reflects investor confidence in Easterly's specialized business model.
- High dividend yield of 8.33% provides a significant income stream for investors.
- Gross margin of 66.8% indicates efficient property management and strong lease terms.
- Beta of 0.94 suggests lower volatility compared to the broader market.
- Profit margin of 4.2% reflects the stability inherent in government leases.
Competitors
Strengths
- Stable revenue stream from government leases.
- High occupancy rates.
- Specialized expertise in government real estate.
- Strong relationships with government tenants.
Weaknesses
- Reliance on a single tenant (U.S. Government).
- Sensitivity to government spending policies.
- High P/E ratio.
- Limited geographic diversification.
Catalysts
- Ongoing: Lease renewals and extensions with government agencies.
- Upcoming: Potential acquisitions of new government-leased properties.
- Ongoing: Government spending on real estate modernization.
- Upcoming: Development of new properties tailored to government needs.
Risks
- Potential: Changes in government leasing policies could impact revenue.
- Ongoing: Reliance on the U.S. Government as the primary tenant.
- Potential: Economic downturn affecting government operations and spending.
- Ongoing: Interest rate increases impacting borrowing costs.
- Potential: Delays or cancellations of government projects.
Growth Opportunities
- Expansion through Acquisitions: Easterly can grow by acquiring additional properties leased to the U.S. Government. The market for government-leased properties is substantial, offering numerous acquisition opportunities. Easterly's expertise in identifying and acquiring suitable properties provides a competitive advantage. This strategy allows for immediate revenue generation and portfolio diversification, with a potential market size in the billions of dollars.
- Development of New Properties: Easterly can develop new properties tailored to the specific needs of government agencies. This includes building modern, secure office spaces that meet the evolving requirements of federal tenants. Development projects can generate higher returns compared to acquisitions, although they also involve greater risk. The timeline for development projects typically ranges from 18 to 36 months.
- Lease Renewals and Extensions: Easterly benefits from the high renewal rates associated with government leases. As existing leases expire, the company has the opportunity to renew or extend these leases at favorable terms. This provides a stable and predictable revenue stream. Proactive lease management and strong tenant relationships are crucial for maximizing renewal rates.
- Strategic Partnerships: Easterly can form strategic partnerships with other real estate developers or government contractors to expand its reach and access new opportunities. These partnerships can provide access to capital, expertise, and relationships that can accelerate growth. Collaboration can unlock new markets and enhance Easterly's ability to compete for government contracts.
- Increased Government Spending on Real Estate: As government agencies modernize and expand their operations, there is a growing need for updated and secure office spaces. This trend creates opportunities for Easterly to provide real estate solutions to meet these evolving needs. Increased government spending on real estate can drive demand for Easterly's properties and services.
Opportunities
- Expansion through acquisitions of government-leased properties.
- Development of new properties for government agencies.
- Increased government spending on real estate.
- Strategic partnerships with government contractors.
Threats
- Changes in government leasing policies.
- Budget cuts affecting government agencies.
- Increased competition from other REITs.
- Economic downturn impacting government operations.
Competitive Advantages
- Specialized expertise in government leasing requirements.
- Long-term lease agreements with the U.S. Government.
- High occupancy rates due to stable government demand.
- Strong relationships with government tenants.
- Reputation for reliability and quality service.
About
Easterly Government Properties, Inc. (NYSE:DEA), headquartered in Washington, D.C., was founded with the primary objective of acquiring, developing, and managing Class A commercial properties leased to the U.S. Government. The company's strategic focus is on properties leased either directly to government agencies or through the U.S. General Services Administration (GSA). Easterly's management team possesses specialized insight into the unique requirements and strategies of mission-critical U.S. Government agencies. This expertise allows Easterly to effectively cater to the specific needs of its government tenants, ensuring high occupancy rates and stable, long-term cash flows. The company's portfolio consists of properties strategically located across the United States, housing a diverse range of federal agencies. Easterly's business model is built on providing essential real estate solutions to the U.S. Government, fostering strong relationships and a reputation for reliability. The company continues to expand its portfolio through strategic acquisitions and developments, capitalizing on the consistent demand for government-leased properties.
What They Do
- Acquire Class A commercial properties leased to the U.S. Government.
- Develop new properties specifically designed for government agencies.
- Manage properties to ensure high occupancy and tenant satisfaction.
- Lease properties to U.S. Government agencies directly or through the GSA.
- Provide specialized real estate solutions tailored to government needs.
- Maintain strong relationships with government tenants.
- Generate stable, long-term cash flows through government leases.
Business Model
- Acquire or develop properties and lease them to the U.S. Government.
- Generate rental income from long-term lease agreements.
- Manage properties to maintain their value and attract tenants.
- Distribute a portion of earnings to shareholders through dividends.
Industry Context
Easterly Government Properties operates within the REIT - Office sector, which is influenced by broader economic trends and interest rate movements. However, Easterly's focus on U.S. Government-leased properties provides a degree of insulation from typical office market volatility. The U.S. Government is a reliable tenant with a consistent need for office space, creating a stable demand environment. The competitive landscape includes other REITs such as CIO, GPMT, HPP, MFA and ORC, but Easterly differentiates itself through its exclusive focus on government properties and specialized expertise in this niche market. The REIT sector is expected to see continued growth as investors seek income-generating assets.
Key Customers
- U.S. Government agencies
- U.S. General Services Administration (GSA)
- Federal agencies requiring office space
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $86M | $1M | $0.00 |
| Q2 2025 | $84M | $4M | $0.00 |
| Q1 2025 | $79M | $3M | $0.00 |
| Q4 2024 | $78M | $5M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Easterly Government Properties, Inc. (DEA) stock price: $23.70 (+0.00, +0.00%)
Why Bull
- •Easterly's focus on government-leased properties offers stability; Uncle Sam is a reliable tenant. Think of it as the bond market of real estate – steady income.
- •Recent chatter suggests insiders are holding steady; no panic selling signals confidence from within. It's like the management team loading up on shares before a big announcement.
- •The community seems to appreciate the long-term lease structure, seeing it as a hedge against broader economic downturns. Similar to how investors flocked to gold during the 2008 crisis.
- •The market views government real estate as a defensive play; Easterly benefits when uncertainty rises. Like how consumer staples perform during recessions.
Why Bear
- •Rising interest rates could squeeze Easterly's margins; refinancing becomes more expensive. Reminds me of REITs struggling in the late 70s when rates spiked.
- •Community discussions highlight concerns about limited growth potential compared to tech stocks. It's the tortoise vs. the hare investment dilemma.
- •Market perception indicates a lack of excitement; Easterly isn't a high-growth story. It's not the Tesla of real estate – more like a steady utility.
- •Recent social sentiment suggests some worry about government budget constraints impacting future lease renewals. It's like betting on a government contract always being renewed.
Latest News
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Easterly Government Properties Announces Quarterly Dividend
Yahoo! Finance: DEA News · Feb 18, 2026
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Easterly Government Properties Announces Quarterly Dividend
Business Wire · Feb 18, 2026
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Assessing Easterly Government Properties (DEA) Valuation As Market Price And Intrinsic Estimates Diverge
Yahoo! Finance: DEA News · Feb 15, 2026
-
Assessing Easterly Government Properties (DEA) Valuation As Market Price And Intrinsic Estimates Diverge
Simply Wall St. · Feb 15, 2026
Technical Analysis
Rationale
AI-generated technical analysis for DEA including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for DEA.
Make a Prediction
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Current price: $23.70
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for DEA.
Price Targets
Median: $23.23 (-2.0% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 5.2% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 10/100
Gross margin of 67.1% shows excellent pricing power and a strong competitive moat.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates DEA's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Easterly Government Properties Announces Quarterly Dividend
Easterly Government Properties Announces Quarterly Dividend
Assessing Easterly Government Properties (DEA) Valuation As Market Price And Intrinsic Estimates Diverge
Assessing Easterly Government Properties (DEA) Valuation As Market Price And Intrinsic Estimates Diverge
Frequently Asked Questions
What does Easterly Government Properties, Inc. do?
Easterly Government Properties, Inc. is a real estate investment trust (REIT) that specializes in acquiring, developing, and managing Class A commercial properties leased to the U.S. Government. The company's business model revolves around providing essential real estate solutions to various federal agencies, either directly or through the U.S. General Services Administration (GSA). Easterly focuses on properties that house mission-critical government functions, ensuring stable occupancy rates and long-term lease agreements. This specialized approach differentiates Easterly from other REITs and provides a unique value proposition for investors seeking stable income and exposure to the government sector.
Is DEA stock a good buy?
DEA stock presents a mixed investment profile. Its high dividend yield of 8.33% is attractive for income-seeking investors, and the stability of government leases provides a degree of downside protection. However, the high P/E ratio of 77.60 suggests that the stock may be overvalued. Potential investors should consider the company's growth prospects, the risks associated with reliance on a single tenant (the U.S. Government), and the overall economic environment. A balanced approach, considering both the income potential and valuation concerns, is essential when evaluating DEA stock.
What are the main risks for DEA?
The primary risks for Easterly Government Properties include its reliance on the U.S. Government as its primary tenant, making it vulnerable to changes in government leasing policies or budget cuts. A significant reduction in government spending on real estate could negatively impact Easterly's revenue and occupancy rates. Additionally, rising interest rates could increase borrowing costs and reduce the company's profitability. Competition from other REITs seeking to acquire government-leased properties also poses a threat. Careful monitoring of government policies, economic trends, and the competitive landscape is crucial for assessing and managing these risks.
Is DEA a good stock to buy?
Whether DEA is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the DEA MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is DEA data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for DEA?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Easterly Government Properties, Inc..
Who are DEA's main competitors?
Easterly Government Properties, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how DEA compares.
What do analysts say about DEA?
Analyst ratings and price targets for DEA are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is DEA's market cap?
Market capitalization reflects the total market value of DEA's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has DEA stock performed recently?
Check the Chart & Info tab for DEA's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in DEA?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for DEA-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling DEA?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for DEA.
Is DEA a good stock for beginners?
Easterly Government Properties, Inc. (DEA) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is DEA for first-time investors?
Every stock carries risk, including Easterly Government Properties, Inc. (DEA). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like DEA.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Data is based on available information and may be subject to change.
- Investment decisions should be made based on individual risk tolerance and financial circumstances.