Easterly Government Properties (DEA) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: 3.1%
• Average Volume (3M): 514.39K
• Price to Earnings (P/E): 56.0
• Beta (1Y): 0.51
• Revenue Growth: 6.06%
• EPS Growth: -15.10%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Office
• EPS (TTM): 0.07
• Shares Outstanding: 44,905,160
• 10 Day Avg. Volume: 478,910
• 30 Day Avg. Volume: 514,389
• PEG Ratio: -6.51
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.46
• Enterprise Value/Market Cap: 2.54
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 12.79
• Enterprise Value/Ebitda: 3.74
• 1Y Price Target: $23.67
• Price Target Upside: 0.94% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: $25.00 ▲(6.61%Upside)

Easterly Government Properties demonstrates solid financial performance with consistent revenue growth and effective cash flow management. However, the high P/E ratio and recent dividend reduction create mixed valuation signals. The technical indicators suggest stability without strong bullish momentum. Strategic shifts and new portfolio additions are promising, but managing leverage and market uncertainties remain crucial.

Positive Factors

Financial Flexibility

Increased financial flexibility with the extension of maturity to January 2028 and increased borrowing capacity to $250mm.

Investment Strategy

The company's investment thesis on mission-critical assets plays out, while DEA now has retained cashflow to invest in GSA and government-adjacent assets.

Negative Factors

Dividend Reduction

DEA reduced its dividend by 32% and executed a 1-for-2.5 reverse stock, which has put the stock under pressure.

Lease Expirations

12 leases representing 593ksf remain expiring, posing a risk for future occupancy.

Leverage Concerns

Net debt/EBITDA remains elevated and is likely to continue to rise with announced investment activity.

Easterly Government Properties Business Overview & Revenue Model

Company Description

Easterly Government Properties, Inc. (DEA) is a real estate investment trust (REIT) focused primarily on the acquisition, development, and management of Class A commercial properties that are leased to U.S. Government agencies. The company specializes in providing modern and efficient workspaces that meet the specific requirements of federal agencies, ensuring compliance with government standards and sustainable building practices. Easterly's portfolio includes properties that are mission-critical to the operations of various U.S. Government departments, offering long-term leases and stable occupancy rates.

How the Company Makes Money

Easterly Government Properties generates revenue primarily through rental income from its portfolio of government-leased properties. The company's revenue model hinges on acquiring and managing properties that are leased to U.S. Government agencies, which typically involve long-term, full-service leases. These leases provide stable and predictable cash flows due to the creditworthiness of the U.S. Government as a tenant. Key revenue streams include lease payments, which may include annual rent escalations and reimbursements for certain property expenses. Easterly's strategic focus on properties leased to government agencies reduces vacancy risks and enhances tenant stability, significantly contributing to the company's earnings.

Easterly Government Properties Financial Statement Overview

Summary

Easterly Government Properties shows consistent revenue growth and strong cash flow management. While the profit margins are healthy, the slight decrease in net income and increasing debt levels require attention. The balance sheet is stable, but improvement in return on equity and leverage management is necessary.

Income Statement

Easterly Government Properties shows a steady increase in revenue with a TTM revenue of $307.9M, reflecting a growth rate of 2% from the previous year. The gross profit margin is strong at 67.2%, and the net profit margin is moderate at 5.8%. EBIT and EBITDA margins are healthy at 26.3% and 60.2% respectively, indicating efficient operations. However, the net income has slightly decreased in the TTM period, suggesting potential challenges in cost management.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.20, indicating moderate leverage. The equity ratio stands at 41.4%, showing a solid equity base. Return on equity is relatively low at 1.3%, suggesting limited profitability from shareholder investments. The company's assets have grown steadily, but the increasing debt levels could pose a risk if not managed carefully.

Cash Flow

Easterly Government Properties demonstrates strong cash flow management with a consistent operating cash flow of $162.9M in the TTM period. The free cash flow growth rate is stable, and the operating cash flow to net income ratio is robust at 9.1, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 9.1, highlighting effective cash utilization.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	302.05M	287.23M	293.61M	274.86M	245.08M
Gross Profit	200.98M	188.64M	197.93M	187.74M	169.52M
EBITDA	179.34M	161.52M	181.19M	163.85M	142.81M
Net Income	19.55M	18.20M	31.47M	30.06M	11.96M
Balance Sheet
Total Assets	3.22B	2.88B	2.83B	2.83B	2.46B
Cash, Cash Equivalents and Short-Term Investments	19.35M	9.38M	7.58M	11.13M	8.46M
Total Debt	1.60B	1.29B	1.25B	1.21B	978.26M
Total Liabilities	1.84B	1.47B	1.42B	1.38B	1.16B
Stockholders Equity	1.32B	1.32B	1.24B	1.28B	1.15B
Cash Flow
Free Cash Flow	162.63M	114.48M	196.03M	481.39M	145.20M
Operating Cash Flow	162.63M	114.48M	125.94M	118.34M	145.20M
Investing Cash Flow	-409.64M	-127.01M	-69.10M	-363.04M	-290.18M
Financing Cash Flow	252.88M	17.19M	-59.71M	250.17M	144.10M

Easterly Government Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 23.45 is above the 20-day moving average (MA) of 22.69, above the 50-day MA of 21.94, and below the 200-day MA of 26.07, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DEA.

Easterly Government Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGRE	70 Outperform	$1.57B	―	-2.11%	0.53%	1.67%	73.75%
Sector *	70 Neutral	¥232.85B	14.32	10.62%	4.22%	17.83%	19.65%
DEA	67 Neutral	$1.04B	56.03	1.32%	3.10%	6.06%	-15.10%
BDN	56 Neutral	$745.90M	―	-18.11%	13.95%	-2.22%	1.51%
PDM	55 Neutral	$946.74M	―	-3.79%	6.57%	-6.23%	18.07%
JBGS	55 Neutral	$1.60B	―	-8.54%	3.79%	-12.34%	-36.05%

Easterly Government Properties Corporate Events

Easterly Government Properties Holds Annual Stockholder Meeting

On May 22, 2025, Easterly Government Properties held its Annual Meeting of Stockholders, where stockholders voted on several proposals. The election of seven director nominees was approved, along with the non-binding advisory approval of executive compensation and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (DEA) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Easterly Government Properties Appoints New Accounting Officer

Easterly Government Properties, Inc. announced the appointment of Brian M. Colantuoni as the principal accounting officer effective May 13, 2025. This change in leadership, with Mr. Colantuoni’s extensive experience in the real estate sector, is expected to enhance the company’s financial operations. The appointment includes a grant of restricted common stock valued at approximately $200,000, and an indemnification agreement to protect Mr. Colantuoni in his new role.

The most recent analyst rating on (DEA) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Easterly Government Properties Reduces Authorized Shares

On May 8, 2025, Easterly Government Properties, Inc. filed an amendment to reduce its authorized common stock shares from 200 million to 80 million, following a one-for-two and a half reverse stock split on April 28, 2025. This strategic move is likely to impact the company’s stock structure and could influence its market positioning and shareholder value.