U.S. Government tenant concentration
About 90% of revenue comes from federal agencies, so non-renewal or delayed payments would quickly affect cash flow.
- Scope
- Lease revenue and occupancy
- Materiality
- high
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.
76,9 %
3,9 %
+11,3 %
| % | |
|---|---|
| Government-leased office properties | 90% Owned Class A commercial buildings leased to U.S. Government agencies, usually on long-term contracts. |
| Tenant reimbursements | 10% Recoveries for operating expenses, real estate taxes and other reimbursable property costs. |
| Development and build-to-suit projects | 0% New or renovated properties tailored to specific government tenant requirements. |
The company’s core customers are U.S. Government agencies that need secure, mission-critical office space for essential...
- U.S. Government agenciesprimary
Primary tenants leasing office and mission-critical facilities for essential federal functions.
- General Services Administration (GSA)-leased tenantsprimary
Federal occupiers whose space is leased or administered through the GSA structure.
- Mission-critical federal functionsprimary
Agencies with specialized space needs that favor secure, high-quality, long-duration buildings.
Easterly’s business is concentrated in the United States, where its properties are leased to federal tenants and where...
- •Operations and revenue are concentrated in the United States
- •Federal tenant demand ties performance to U.S. government budgets
- •Local market conditions matter less than tenant credit and renewal risk
- •Portfolio locations are chosen for strategic proximity to agency missions
- •Property-level exposure is tied to specific U.S. metropolitan markets
The company’s strategy is to own and grow a portfolio of high-quality, government-leased assets with long remaining...
01
Expand government-leased portfoliomedium-term
Adds long-duration cash flows backed by strong federal credit.
02
Develop and renovate build-to-suit assetsmedium-term
Tailored assets can improve tenant retention and underwriting quality.
03
Manage leverage and liquidityshort-term
Debt markets and refinancing conditions affect REIT flexibility and dividend capacity.
The company is highly exposed to tenant concentration, since roughly 90% of revenue comes from U.S...
Federal space rationalization
Government efforts to reduce office footprint could lower space usage and renewal demand.
- Scope
- Renewals and vacancy risk
- Materiality
- high
Interest-rate and refinancing risk
The company uses debt financing and higher rates increase interest expense and reduce flexibility.
- Scope
- Debt maturities and new borrowings
- Materiality
- high
Property competition
Other REITs and investors compete for similar assets, which can raise acquisition prices and reduce returns.
- Scope
- Acquisitions and dispositions
- Materiality
- medium
Real estate property valuation and impairment
Can reduce earnings and asset values
Tenant reimbursements and rental revenue
Affects rental revenue growth and comparability
Debt and derivative accounting
Affects interest expense and non-cash mark-to-market items
Non-GAAP FFO/Core FFO adjustments
Important for REIT valuation and dividend analysis
: 28.4.2026