Easterly Government Properties (DEA) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: 9.94%
• Average Volume (3M): 473.13K
• Price to Earnings (P/E): 57.2
• Beta (1Y): 0.45
• Revenue Growth: 8.18%
• EPS Growth: -15.35%
• Country: US
• Employees: 50
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.03
• Shares Outstanding: 45,354,115
• 10 Day Avg. Volume: 452,718
• 30 Day Avg. Volume: 473,132
• PEG Ratio: -14.42
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 3.89
• P/FCF Ratio: 7.23
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $23.58
• Price Target Upside: 9.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $24.00 ▲(11.16% Upside)

Easterly Government Properties demonstrates strong operational efficiency and attractive dividend yield, but faces challenges with high valuation and leverage concerns. The earnings call provided positive growth insights, offset by potential risks from government-related uncertainties.

Positive Factors

Stable Revenue Growth

The company's focus on long-term leases with government agencies ensures consistent revenue streams, minimizing vacancy risks and supporting stable growth.

High Occupancy Rates

High occupancy rates and long lease terms with government tenants provide reliable income and reduce operational risks, enhancing financial stability.

Core FFO Growth

Growth in core funds from operations (FFO) indicates effective portfolio management and strategic acquisitions, contributing to long-term financial health.

Negative Factors

Leverage Challenges

Efforts to reduce leverage indicate financial strain and potential limitations on future growth investments, impacting long-term financial flexibility.

Government Shutdown Concerns

While lease payments remain secure, government shutdowns can delay project approvals and renewals, affecting operational timelines and strategic planning.

Decreased Free Cash Flow

A decline in free cash flow suggests potential liquidity issues, which could hinder the company's ability to fund new projects or manage debt efficiently.

Easterly Government Properties Business Overview & Revenue Model

Company Description

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly's experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).

How the Company Makes Money

Easterly Government Properties generates revenue primarily through long-term leases with various U.S. government agencies. The company's revenue model is built on acquiring properties that are leased to governmental entities, ensuring low vacancy rates and consistent rental income. Key revenue streams include base rental income from these leases and additional income from property management services. The stability of government-backed tenants minimizes risk, while the increasing demand for government facilities contributes to growth. Significant partnerships with government agencies and a strategic focus on properties with long-term leases are critical factors that enhance the company's earnings potential.

Easterly Government Properties Financial Statement Overview

Summary

Easterly Government Properties shows stable revenue growth and strong operational efficiency. However, challenges in net profitability and cash flow management, along with low ROE, indicate areas for improvement.

Income Statement

Easterly Government Properties shows a stable revenue growth rate with a TTM increase of 2.6%. The gross profit margin remains strong at 65.2%, indicating efficient cost management. However, the net profit margin has decreased to 5.5% compared to the previous year, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.88 in the TTM, indicating a more balanced capital structure compared to previous years. However, the return on equity is relatively low at 1.3%, suggesting limited profitability from shareholders' investments. The equity ratio is stable, showing a solid asset base supported by equity.

Cash Flow

Operating cash flow remains strong, but the free cash flow has decreased by 11.6% in the TTM, indicating potential challenges in maintaining cash reserves. The operating cash flow to net income ratio is low, suggesting that cash generation from operations is not fully aligned with reported earnings. However, the free cash flow to net income ratio remains at 1.0, showing that free cash flow covers net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	327.31M	302.05M	287.23M	293.61M	274.86M	245.08M
Gross Profit	218.75M	200.98M	93.51M	97.67M	187.74M	169.52M
EBITDA	225.73M	179.34M	161.52M	181.19M	163.85M	142.81M
Net Income	13.76M	19.55M	18.20M	31.47M	30.06M	11.96M
Balance Sheet
Total Assets	3.38B	3.22B	2.88B	2.83B	2.83B	2.46B
Cash, Cash Equivalents and Short-Term Investments	4.36M	19.35M	11.38M	7.58M	11.13M	8.46M
Total Debt	1.17B	1.60B	1.29B	1.25B	1.21B	978.26M
Total Liabilities	2.00B	1.84B	1.47B	1.42B	1.38B	1.16B
Stockholders Equity	1.33B	1.32B	1.32B	1.24B	1.28B	1.15B
Cash Flow
Free Cash Flow	241.82M	162.63M	114.48M	196.03M	481.39M	145.20M
Operating Cash Flow	241.82M	162.63M	114.48M	125.94M	118.34M	145.20M
Investing Cash Flow	-415.96M	-409.64M	-127.01M	-69.10M	-363.04M	-290.18M
Financing Cash Flow	149.14M	252.88M	17.19M	-59.71M	250.17M	144.10M

Easterly Government Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DEA, the sentiment is Negative. The current price of 21.59 is below the 20-day moving average (MA) of 22.10, below the 50-day MA of 22.57, and below the 200-day MA of 22.99, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 65.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DEA.

Easterly Government Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEA	―	$1.02B	57.15	1.28%	9.94%	8.18%	-15.35%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PGRE	―	$1.51B	―	-2.52%	―	-1.68%	63.27%
PDM	―	$1.05B	-15.48	-4.27%	5.86%	-6.74%	17.44%
BDN	―	$644.59M	-3.37	-19.17%	14.64%	-5.52%	40.27%
JBGS	―	$1.63B	―	-9.19%	3.24%	-11.33%	-22.04%

Easterly Government Properties Corporate Events

Easterly Government Properties Grants Equity Awards to Management

On August 26, 2025, Easterly Government Properties‘ Board of Directors and Compensation Committee granted equity awards to senior management and non-employee directors under the 2024 Equity Incentive Plan. The awards, consisting of 844,000 performance-based long-term incentive units, aim to align management’s interests with shareholders and retain key personnel amid recent executive turnover. The units will vest over five years, contingent on continued service and stock price performance, with specific conditions for vesting in cases of change in control or termination.

The most recent analyst rating on (DEA) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Easterly Government Properties Amends Term Loan Agreement

On August 21, 2025, Easterly Government Properties announced an amendment to its 2018 senior unsecured term loan agreement, increasing it to $200 million and extending its maturity date to August 2028, with options to extend further. The amendment also includes a new $100 million accordion feature, enhancing Easterly’s financial flexibility and positioning the company for future growth. The loan continues to bear interest based on SOFR with a spread determined by the company’s leverage ratio.

The most recent analyst rating on (DEA) stock is a Buy with a $24.50 price target. To see the full list of analyst forecasts on Easterly Government Properties stock, see the DEA Stock Forecast page.

Easterly Government Properties Reports Q2 2025 Earnings

Easterly Government Properties, Inc. is a real estate investment trust (REIT) specializing in the acquisition, development, and management of Class A commercial properties leased to the U.S. Government and its partners.

Easterly Government Properties: Resilient Growth Amid Challenges

Easterly Government Properties Inc. recently held its earnings call, revealing a positive sentiment overall, despite some minor challenges. The company showcased strong financial performance, with growth in core Funds From Operations (FFO) and successful lease renewals, underscoring its operational resilience. However, the company also faces challenges related to a dividend reset and elevated cost of capital. Nevertheless, Easterly remains well-positioned to pursue growth opportunities.