Easterly Government Properties: Remains A Buy On Visible Progress

Easterly Government Properties is downgraded from 'strong buy' to 'buy' as shares outpaced fundamentals, but valuation remains attractive. DEA posted robust Q1 2026 results: revenue up 16%, core FFO per share up $0.04 year-over-year despite 5% share dilution. Management targets sub-7x net debt/EBITDA via operational growth, controlled equity issuance, and disciplined capital allocation, aiming for an investment-grade rating in 2027. At 8x price to FFO and a 7.3% covered dividend yield, DEA offers continued upside as operational progress drives re-rating.

In my last article about Easterly Government Properties ( DEA ) from late October 2025, I highlighted the progress on growing FFO per share despite ongoing equity dilution, manageable debt, and the attractive valuation (multiples, but also the then-8% dividend).