DEA Stock Overview
Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S.
Easterly Government Properties Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$15.77|
|52 Week High||US$23.65|
|52 Week Low||US$15.32|
|1 Month Change||-11.01%|
|3 Month Change||-18.84%|
|1 Year Change||-24.40%|
|3 Year Change||-27.29%|
|5 Year Change||-23.37%|
|Change since IPO||1.74%|
Recent News & Updates
The 6.7% Yield Of Easterly Government Properties Should Be Recession-Resistant
Summary DEA is offering a 7-year high dividend yield of 6.7%, with a wide margin of safety. DEA is a unique REIT, as it leases all its properties to U.S. government agencies. It thus has the lowest possible tenant risk while it enjoys reliable and predictable cash flows. Income-oriented investors are going through a rough period this year due to the surge of inflation, which erodes the real value of their portfolios and their income streams. It is thus natural that these investors are doing their best to shield their portfolios from inflation. The dividend yields of most stocks have greatly increased this year due to the ongoing bear market, but investors should make sure that a dividend is safe before investing in a high-yield stock. Easterly Government Properties, Inc. (DEA) is offering a 7-year high dividend yield of 6.7%, which should be safe given that the real estate investment trust ("REIT") leases all its properties to U.S. government agencies. As there is no other REIT with 99% occupancy and such a safe tenant profile, investors should lock in the 6.7% yield of the stock before it reverts to normal levels. Business overview Easterly Government Properties is a REIT which acquires and develops properties that are leased to U.S. government agencies, such as the FBI, IRS and DEA. The REIT was originally formed in 2011 as Easterly Partners and then changed its name to Easterly Government Properties in early 2015. Thanks to its unique business model, Easterly enjoys some key competitive advantages when compared to the vast majority of REITs. It leases its properties to U.S. government agencies for at least a decade, and thus it enjoys predictable cash flows, without the usual risk of incurring a default of its tenant. In addition, as the government agencies rarely move to another building, the risk of having vacant properties is extremely low. This helps explain the 100% occupancy rate that Easterly has posted in most years. The occupancy rate of the trust currently stands at 99%. Moreover, Easterly has a wide business moat, with high barriers to entry thanks to its expertise in the procurement process, protocols and culture of government agencies. The high barriers to entry somewhat enhance the negotiating power of the REIT. This helps explain the fact that Easterly has its rent structured to rise with inflation. This is undoubtedly an important feature of the leases, which mitigates the impact of inflation on the real value of the cash flows of the REIT. Apart from being resistant to inflation, Easterly is also essentially immune to recessions. While recessions may exert some pressure on the budget of the government, the latter is the most recession-resistant tenant in the entire universe. As a result, Easterly is not affected by economic downturns. The REIT has a short history but it was tested in the fierce recession caused by the pandemic and the resultant lockdowns in 2020. While other REITs incurred a material decrease in their funds from operations [FFO] per unit, Easterly grew its FFO per unit 5% in that year. This is a testament to the resilience of this high-quality REIT to economic downturns. Moreover, Easterly does not rest on its laurels. It continuously tries to acquire new properties, which are essential to the mission of select government agencies. It also achieves growth thanks to its inflation-adjusted reimbursement and its lease renewal spreads. Since its IPO under its current form, in 2015, Easterly has grown its FFO per unit in 5 of the 6 years, at a 3.9% average annual rate. This growth rate may seem unappealing to most investors but it is decent, especially when combined with the aforementioned advantages of the REIT. On the other hand, it is important to note that growth momentum has somewhat decelerated lately, primarily due to fewer acquisitions of new properties and the issuance of new units. As a result, Easterly is expected by analysts to grow its FFO per unit by only 2% per year on average over the next 3 years. As Easterly is laser focused on properties leased to government agencies, it obviously cannot grow as fast as other REITs, which have a much broader scope. The inferior growth prospects of the REIT when compared to its peers is a point of concern. On the bright side, the market of federally-leased properties is highly fragmented. The largest owners of this type of properties own 26.2% of these properties, with no landlord owning more than 5.4%. Easterly Government Properties Growth (Investor Presentation) As a result, there is ample room for future growth for Easterly via the acquisition of properties from small owners. Valuation While Easterly is essentially immune to recessions, its stock price is not immune to the ongoing bear market, which has resulted primarily from the increasing risk of an upcoming recession due to the aggressive interest rate hikes by the Fed. The stock of Easterly has declined 33% this year and thus it is trading at a historic (7-year) low, at a price-to-FFO ratio of 11.5. This FFO multiple, which is a 7-year low, is much lower than the historical average of 16.6 of the stock. The exceptionally cheap valuation level of the REIT can be partly justified by high inflation, which reduces the present value of future cash flows and thus exerts pressure on the valuation of most stocks. However, this headwind is likely to prove short-lived. The Fed has prioritized restoring inflation to its long-term target of 2%, even at the expense of economic growth. Given its determination, which is evident in its aggressive interest rate hikes, it is safe to assume that inflation will soon begin to subside. When that happens, the valuation of Easterly will probably begin to revert towards its historical average. Overall, the stock will enjoy a major valuation tailwind when inflation subsides. Dividend Due to the decline of its stock price this year, Easterly is currently offering a 7-year high dividend yield of 6.7%. Data by YCharts When a stock offers such a high yield, it usually signals that a dividend cut is just around the corner. However, this is not the case for Easterly. Its FAD payout ratio is somewhat elevated, at 75%, but the dividend has a wide margin of safety thanks to the resilience of the REIT to recessions and its predictable cash flows, which result from the reliability of the U.S. government.
Easterly Government Properties acquires district courthouse in Iowa
Easterly Government Properties (NYSE:DEA) said Wednesday it acquired a 28.9K leased sq. ft. U.S. District courthouse in Council Bluffs, Iowa. The courthouse is a build-to-suit facility that is 100% leased to the General Services Administration on behalf of the U.S. District Court under a 20-year non-cancelable lease that will expire in 2041. The lease also features two five-year renewal options that, if exercised, will extend the lease till 2051. Year to date, DEA acquired, either directly or through its joint venture, six properties for pro rata contractual purchase price of ~$179.1M YTD. With the acquisition of the courthouse in Council Bluffs, DEA owns 95 properties totaling 9.1M sq. ft.
|DEA||US REITs||US Market|
Return vs Industry: DEA underperformed the US REITs industry which returned -20.4% over the past year.
Return vs Market: DEA underperformed the US Market which returned -23.2% over the past year.
|DEA Average Weekly Movement||3.2%|
|REITs Industry Average Movement||4.2%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: DEA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: DEA's weekly volatility (3%) has been stable over the past year.
About the Company
Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S.
Easterly Government Properties Fundamentals Summary
|DEA fundamental statistics|
Is DEA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DEA income statement (TTM)|
|Cost of Revenue||US$94.21m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.32|
|Net Profit Margin||10.03%|
How did DEA perform over the long term?See historical performance and comparison
6.7%Current Dividend Yield
Is DEA undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for DEA?
Other financial metrics that can be useful for relative valuation.
|What is DEA's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does DEA's PE Ratio compare to its peers?
|DEA PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
PDM Piedmont Office Realty Trust
OFC Corporate Office Properties Trust
JBGS JBG SMITH Properties
BDN Brandywine Realty Trust
DEA Easterly Government Properties
Price-To-Earnings vs Peers: DEA is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the peer average (39.7x).
Price to Earnings Ratio vs Industry
How does DEA's PE Ratio compare vs other companies in the US REITs Industry?
Price-To-Earnings vs Industry: DEA is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the US REITs industry average (25.8x)
Price to Earnings Ratio vs Fair Ratio
What is DEA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||49.5x|
|Fair PE Ratio||39.8x|
Price-To-Earnings vs Fair Ratio: DEA is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the estimated Fair Price-To-Earnings Ratio (39.8x).
Share Price vs Fair Value
What is the Fair Price of DEA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: DEA ($15.77) is trading below our estimate of fair value ($46.37)
Significantly Below Fair Value: DEA is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Easterly Government Properties forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DEA's forecast earnings growth (16.8% per year) is above the savings rate (1.9%).
Earnings vs Market: DEA's earnings (16.8% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: DEA's earnings are forecast to grow, but not significantly.
Revenue vs Market: DEA's revenue (8.9% per year) is forecast to grow faster than the US market (7.7% per year).
High Growth Revenue: DEA's revenue (8.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DEA's Return on Equity is forecast to be low in 3 years time (2.7%).
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How has Easterly Government Properties performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DEA has high quality earnings.
Growing Profit Margin: DEA's current net profit margins (10%) are higher than last year (8.2%).
Past Earnings Growth Analysis
Earnings Trend: DEA's earnings have grown significantly by 45.4% per year over the past 5 years.
Accelerating Growth: DEA's earnings growth over the past year (34.9%) is below its 5-year average (45.4% per year).
Earnings vs Industry: DEA earnings growth over the past year (34.9%) underperformed the REITs industry 45.8%.
Return on Equity
High ROE: DEA's Return on Equity (2.3%) is considered low.
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How is Easterly Government Properties's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: DEA's short term assets ($77.9M) exceed its short term liabilities ($54.7M).
Long Term Liabilities: DEA's short term assets ($77.9M) do not cover its long term liabilities ($1.4B).
Debt to Equity History and Analysis
Debt Level: DEA's net debt to equity ratio (92.1%) is considered high.
Reducing Debt: DEA's debt to equity ratio has increased from 80.2% to 92.7% over the past 5 years.
Debt Coverage: DEA's debt is not well covered by operating cash flow (9.4%).
Interest Coverage: DEA's interest payments on its debt are not well covered by EBIT (1.8x coverage).
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What is Easterly Government Properties's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Easterly Government Properties Dividend Yield vs Market|
|Company (Easterly Government Properties)||6.7%|
|Market Bottom 25% (US)||1.7%|
|Market Top 25% (US)||4.7%|
|Industry Average (REITs)||4.1%|
|Analyst forecast in 3 Years (Easterly Government Properties)||6.8%|
Notable Dividend: DEA's dividend (6.72%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: DEA's dividend (6.72%) is in the top 25% of dividend payers in the US market (4.73%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, DEA has been paying a dividend for less than 10 years.
Growing Dividend: DEA's dividend payments have increased, but the company has only paid a dividend for 7 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (72.7%), DEA's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (85.8%), DEA's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bill Trimble (60 yo)
Mr. William C. Trimble, also known as Bill, III, serves as the Chief Executive Officer, President and Director of Easterly Government Properties, Inc. since February 5, 2015. Mr. Trimble is responsible for...
CEO Compensation Analysis
|Bill Trimble's Compensation vs Easterly Government Properties Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$5m||US$750k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$4m||US$750k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$4m||US$725k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$2m||US$525k|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$1m||US$450k|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||US$1m||US$351k|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||US$3m||US$223k|
Compensation vs Market: Bill's total compensation ($USD4.99M) is about average for companies of similar size in the US market ($USD5.58M).
Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.
Experienced Management: DEA's management team is seasoned and experienced (6.9 years average tenure).
Experienced Board: DEA's board of directors are considered experienced (7.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|15 Mar 22||SellUS$139,356||Darrell Crate||Individual||6,655||US$20.94|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.2%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Easterly Government Properties, Inc.'s employee growth, exchange listings and data sources
- Name: Easterly Government Properties, Inc.
- Ticker: DEA
- Exchange: NYSE
- Founded: NaN
- Industry: Office REITs
- Sector: Real Estate
- Implied Market Cap: US$1.607b
- Market Cap: US$1.431b
- Shares outstanding: 101.92m
- Website: https://www.easterlyreit.com
Number of Employees
- Easterly Government Properties, Inc.
- 2101 L Street NW
- Suite 650
- District Of Columbia
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|DEA||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Feb 2015|
|E05||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Feb 2015|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/02 00:00|
|End of Day Share Price||2022/09/30 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.