The Bull Case For Easterly Government Properties (DEA) Could Change Following Defense-Focused Colorado Facility Acquisition - Learn Why

• On September 5, 2025, Easterly Government Properties announced the acquisition of a 138,125 square foot facility in Greenwood Village, Colorado, fully leased to York Space Systems under a long-term triple net lease through 2031 with a 10-year extension option.
• This property, customized for York’s satellite production and tied to a key U.S. Space Development Agency partner, highlights the increasing appeal of specialized, secure facilities serving defense and government-adjacent tenants.
• We'll examine how acquiring a purpose-built, defense-oriented facility with long-term lease certainty may influence Easterly's investment outlook.

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Easterly Government Properties Investment Narrative Recap

Shareholders in Easterly Government Properties are focused on the ongoing demand for stable, long-leased government and defense facilities as a buffer against uncertain market conditions. The recent York - Greenwood acquisition brings lease certainty to 2031 and reinforces Easterly’s profile in the government-adjacent property sector; while this bolsters the near-term case for reliable income, it does not offset the biggest short-term challenge: persistently high costs of capital, which continue to pressure returns on new investments. Among recent announcements, Easterly’s August acquisition of the Florida Department of Law Enforcement crime laboratory stands out. Securing another mission-critical facility under a multi-decade lease highlights the firm’s active pursuit of tenants whose operations align with essential public safety and government services, a catalyst supporting resilience when traditional office demand is under pressure. However, investors should pay close attention to the contrast between lease security and the real test of whether persistently elevated capital costs could ...

Read the full narrative on Easterly Government Properties (it's free!)

Easterly Government Properties' narrative projects $403.5 million revenue and $20.4 million earnings by 2028. This requires 7.7% yearly revenue growth and an increase of $3.5 million in earnings from the current $16.9 million.

Uncover how Easterly Government Properties' forecasts yield a $24.08 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have submitted three fair value estimates for Easterly, ranging from US$12.70 to US$42.33 per share. As you consider these perspectives, keep in mind that ongoing tight capital markets could continue to affect acquisition returns and earnings growth.

Explore 3 other fair value estimates on Easterly Government Properties - why the stock might be worth 46% less than the current price!

Build Your Own Easterly Government Properties Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Easterly Government Properties research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Easterly Government Properties research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Easterly Government Properties' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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