Easterly Government Properties Inc. Common Stock (DEA)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Easterly Government Properties as a specialized REIT owning Class A offices leased largely to U.S. Government agencies. The tenant can be durable, but the figures show a business that earns little on its asset base. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $92.4M, up from $84.2M in fiscal Q2 2025, while net income slipped to $3.0M from $4.1M. For FY2025, revenue rose to $336.1M from $302.1M in FY2024, but net income fell to $13.0M from $19.6M, and diluted EPS dropped to $0.27 from $0.46. Since depreciation distorts REIT EPS and P/E, and FFO/AFFO—the right REIT measures—are not in the data, I lean on price-to-book, dividend yield, leverage, and revenue trend. At the 2026-10-13 close of $22.64, FairStock calculates P/B of 0.81 and dividend yield of 7.69%. That asset-play tag is understandable: the shares sell below book. But FairStock’s P/E of 119.16, ROE of 0.77%, ROCE of 1.68%, and D/E of 1.26 show how little profit the equity generates and how much debt supports the portfolio. The Altman Z-Score of 0.33 also flashes distress, though it is imperfect for REITs. Piotroski 8/9, TTM FCF of $268.8M, and FCF yield of 25.1% are positives. Overall: a stable government-tenant story with a high payout and below-book price, but the value case depends on cash flow and lease details not provided.

In plain English: Easterly owns and manages office buildings leased mostly to U.S. government agencies. Revenue is growing, and the dividend payout is high, but profits are thin and the company carries a lot of debt. The shares trade below the value of the company's net assets on its books, which can look cheap, though the weak profits and debt are real risks.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer