DEANYSEReal Estate Investment TrustsUS GAAP · USD

Easterly Government Properties, Inc.

Easterly Government Properties is an internally managed REIT that acquires, develops and manages Class A commercial properties leased primarily to U.S. Government agencies. The company’s portfolio is built around mission-critical federal tenants, with most revenue coming from long-term leases either directly to agencies or through the GSA.

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Revenue336m USD
+11.3 %y/y
Net income13.0m USD
−33.5 %y/y
Free cash flow259m USD
+59.4 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0100200300400m USD2020: 245 m USD20202021: 275 m USD20212022: 294 m USD20222023: 287 m USD20232024: 302 m USD20242025: 336 m USD2025336
RevenueOperating profit (EBIT)

Business

Share of revenue
Government-leased office properties90 %

Owned Class A commercial buildings leased to U.S. Government agencies, usually on long-term contracts.

Tenant reimbursements10 %

Recoveries for operating expenses, real estate taxes and other reimbursable property costs.

Development and build-to-suit projects0 %

New or renovated properties tailored to specific government tenant requirements.

Customers

The company’s core customers are U.S. Government agencies that need secure, mission-critical office space for essential functions. It also leases through the General Services Administration in some cases, which centralizes federal occupancy and lease administration. Demand is driven by agencies’ need for specialized, strategically located buildings with long lease terms and high reliability.

U.S. Government agencies

Primary tenants leasing office and mission-critical facilities for essential federal functions.

General Services Administration (GSA)-leased tenants

Federal occupiers whose space is leased or administered through the GSA structure.

Mission-critical federal functions

Agencies with specialized space needs that favor secure, high-quality, long-duration buildings.

Strategy

The company’s strategy is to own and grow a portfolio of high-quality, government-leased assets with long remaining lease terms and strong tenant credit. It also seeks to preserve balance-sheet flexibility while funding acquisitions, development, tenant improvements and selective capital recycling.

Expand government-leased portfolioMedium term

Adds long-duration cash flows backed by strong federal credit.

Develop and renovate build-to-suit assetsMedium term

Tailored assets can improve tenant retention and underwriting quality.

Manage leverage and liquidityShort term

Debt markets and refinancing conditions affect REIT flexibility and dividend capacity.

Geography

Easterly’s business is concentrated in the United States, where its properties are leased to federal tenants and where most of its operating risk resides. The company’s exposure is more local-market driven than global, but federal budget decisions and agency space rationalization can affect occupancy and renewal outcomes across its portfolio.

Risks

The company is highly exposed to tenant concentration, since roughly 90% of revenue comes from U.S. Government agencies and lease renewals depend on federal space needs and budget priorities. It also faces typical REIT risks such as interest-rate sensitivity, refinancing risk, property valuation pressure and competition for acquisitions and tenants. Because the portfolio is specialized, changes in government space utilization or agency consolidation can have an outsized effect on occupancy and growth.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →U.S. Government tenant concentration1Federal space rationalization2Interest-rate and refinancing risk3Property competition4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. U.S. Government tenant concentrationImpact: HighLikelihood: Medium

    About 90% of revenue comes from federal agencies, so non-renewal or delayed payments would quickly affect cash flow.

    Exposure: Lease revenue and occupancy

  2. Federal space rationalizationImpact: HighLikelihood: Medium

    Government efforts to reduce office footprint could lower space usage and renewal demand.

    Exposure: Renewals and vacancy risk

  3. Interest-rate and refinancing riskImpact: HighLikelihood: Medium

    The company uses debt financing and higher rates increase interest expense and reduce flexibility.

    Exposure: Debt maturities and new borrowings

  4. Property competitionImpact: MediumLikelihood: Medium

    Other REITs and investors compete for similar assets, which can raise acquisition prices and reduce returns.

    Exposure: Acquisitions and dispositions

Accounting

Judgemental items
Real estate property valuation and impairment

The company recognized an impairment loss on ICE – Otay, showing that asset values can be revised when fair value falls below carrying value.

Impact: Can reduce earnings and asset values

Tenant reimbursements and rental revenue

Revenue includes base rent plus recoveries for operating expenses and taxes, so timing and CPI-linked escalators affect reported income.

Impact: Affects rental revenue growth and comparability

Debt and derivative accounting

Interest expense increased due to fixed-rate senior unsecured notes and the company uses swaps on term loans, making financing costs sensitive to hedge accounting and rate movements.

Impact: Affects interest expense and non-cash mark-to-market items

Non-GAAP FFO/Core FFO adjustments

Depreciation, debt extinguishment costs and credit-loss items are excluded from Core FFO, which can materially differ from GAAP earnings.

Impact: Important for REIT valuation and dividend analysis

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Last updated: 24/09/2026