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 ...
Easterly Government Properties, Inc. is a specialized U.S. real estate investment trust focused on government-leased commercial real estate. Its shares trade on the New York Stock Exchange under the ticker DEA. The company’s principal strategy is to acquire, develop, own, and manage high-quality, generally Class A properties that are leased ...Easterly Government Properties, Inc. is a specialized U.S. real estate investment trust focused on government-leased commercial real estate. Its shares trade on the New York Stock Exchange under the ticker DEA. The company’s principal strategy is to acquire, develop, own, and manage high-quality, generally Class A properties that are leased to federal government agencies. Leases may be executed directly with agencies or through the U.S. General Services Administration, creating exposure to government-backed tenancy and the operational needs of agencies that perform essential public services.
The company is headquartered in Washington, D.C., a major center for federal agencies, contractors, and public-policy institutions. Easterly has built a portfolio consisting of more than 100 acquired or developed properties and millions of square feet of government-affiliated real estate. Its assets have included office, laboratory, healthcare, and other specialized facilities designed around the requirements of federal occupants. This specialization can support tenant retention and relatively predictable occupancy because many properties are mission-critical and costly for agencies to replace. The company has also highlighted a weighted average lease term of approximately 10 years, although lease duration and portfolio composition change over time.
Easterly was established as a corporate platform in 2012, following predecessor private-equity activity co-founded by Darrell W. Crate in 2009. It completed its initial public offering in February 2015. Darrell William Crate serves as chairman and chief executive officer; he is a co-founder with experience in real estate investment, federal leasing, capital markets, and private-equity fund formation. The reported full-time workforce is approximately 55 employees, placing the company in the 0-100 employee category. Its relatively small internal organization reflects a focused, asset-management-oriented operating model rather than a labor-intensive property-services business.
As a REIT, Easterly’s financial profile is best assessed using real-estate measures such as funds from operations, adjusted funds from operations, occupancy, lease expirations, same-property performance, net operating income, leverage, and debt maturity schedules rather than conventional manufacturing cost or bill-of-materials analysis. The company has no traditional BOM because it does not manufacture physical products. Its principal cost categories include property operating expenses, repairs and maintenance, insurance, real estate taxes where applicable, general and administrative expenses, interest expense, acquisition and development costs, and capital expenditures for tenant improvements or building upgrades. Capital allocation generally balances acquisitions, development, portfolio maintenance, debt management, and shareholder distributions.
The supplied market data identifies Easterly as a real estate company in the REIT-office industry, with a reported market capitalization of approximately $1.16 billion, enterprise value of approximately $2.88 billion, and trailing annual dividend per share of $1.80. The reported dividend yield was approximately 7.2%, though market price, earnings, leverage, and yield fluctuate. The company’s business opportunity is tied to continued federal demand for secure and specialized workplaces, agency consolidation, lease renewals, and disciplined acquisition or development opportunities. Key risks include interest-rate changes, refinancing costs, government budget or utilization decisions, tenant concentration, lease expiration, property-specific capital requirements, office-market conditions, and elevated leverage. Easterly’s strategic objective is to grow a durable portfolio of mission-critical federal properties while maintaining occupancy, preserving access to capital, and supporting sustainable long-term shareholder distributions.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$336.1M
+11.3%
+1.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$13.0M
-33.5%
+123.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
-0.9%
-101.4%
+14.8%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+24.9%
-4.3%
+5.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+3.9%
-40.2%
+121.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$259.2M
+59.4%
+63.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+77.1%
+43.2%
+61.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
125.9%
+4.1%
+0.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.23x
-15.5%
+53.2%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to the Easterly Government Properties Second Quarter 2026 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Cole Bardawill, Director of Investor Relations. Please go ahead.
Cole Bardawill: Good morning. Before the call begins, please note that certain statements made during this conference call may include statements that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes that its expectations as reflected in any forward-looking statements are reasonable, it can give no assurance that these expectations will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those contained in the company's most recent Form 10-K filed with the SEC and in other SEC filings. The company assumes no obligation to update publicly any forward-looking statements. Additionally, on this conference call, the company may refer to certain non-GAAP financial measures such as funds from operations, core funds from operations and cash available for distribution. You can find a tabular reconciliation of these non-GAAP financial measures to the most comparable current GAAP numbers in the company's earnings release and separate supplemental information package on the Investor Relations page of the company's website at ir.easterlyreit.com. I would now like to turn the conference call over to Darrell Crate, President and CEO of Easterly Government Properties.
Darrell Crate: Thanks, Cole. Good morning, everyone. This quarter, we delivered year-over-year core FFO per share growth of 5.4% and as many of you know, this is above our 2% to 3% stated long-term growth target and we are pleased and achieved these results by executing our strategy of growing earnings steadily, allocating capital thoughtfully and improving the quality of the portfolio over time. While the current interest rate environment hasn't improved, driven in part by the volatility of geopolitical conditions that we're currently facing, our business moves forward steadily in periods like this as evidenced by our improved earnings guidance. We own facilities that support essential government missions leased to critical federal agencies high credit state and municipal tenants and defense-related companies. These leases are long duration, impacted primarily by the full facing credit of the U.S. government. We continue to communicate to investors that we are clearly differentiated from traditional office real estate. Many of our facilities include secure, purpose-built environments where sensitive government work is conducted, they are …
