NYSE:DEA

Stock Analysis Report

Easterly Government Properties

Executive Summary

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.

Rewards

Trading at 41.4% below its fair value

Earnings are forecast to grow 32.61% per year

Earnings grew by 8.4% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Easterly Government Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DEA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.0%

DEA

-0.06%

US REITs

1.1%

US Market


1 Year Return

34.5%

DEA

13.2%

US REITs

17.8%

US Market

Return vs Industry: DEA exceeded the US REITs industry which returned 13.2% over the past year.

Return vs Market: DEA exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

DEAIndustryMarket
7 Day1.0%-0.06%1.1%
30 Day1.5%0.9%1.4%
90 Day10.7%-0.2%3.9%
1 Year41.7%34.5%17.9%13.2%20.3%17.8%
3 Year37.4%17.8%34.4%17.7%44.8%35.4%
5 Yearn/a56.5%24.2%71.3%52.4%

Price Volatility Vs. Market

How volatile is Easterly Government Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Easterly Government Properties undervalued compared to its fair value and its price relative to the market?

41.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DEA ($23.35) is trading below our estimate of fair value ($39.82)

Significantly Below Fair Value: DEA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DEA is poor value based on its PE Ratio (255x) compared to the REITs industry average (38.6x).

PE vs Market: DEA is poor value based on its PE Ratio (255x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: DEA is poor value based on its PEG Ratio (7.8x)


Price to Book Ratio

PB vs Industry: DEA is good value based on its PB Ratio (1.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Easterly Government Properties forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

32.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEA's forecast earnings growth (32.6% per year) is above the savings rate (1.7%).

Earnings vs Market: DEA's earnings (32.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DEA's revenue (10.9% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: DEA's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DEA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Easterly Government Properties performed over the past 5 years?

40.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DEA has a large one-off gain of $4.7M impacting its September 30 2019 financial results.

Growing Profit Margin: DEA's current net profit margins (2.9%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: DEA has become profitable over the past 5 years, growing earnings by 40.3% per year.

Accelerating Growth: DEA's earnings growth over the past year (8.4%) is below its 5-year average (40.3% per year).

Earnings vs Industry: DEA earnings growth over the past year (8.4%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: DEA's Return on Equity (0.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Easterly Government Properties's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DEA has a high level of physical assets or inventory.

Debt Coverage by Assets: DEA's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: DEA's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DEA has a sufficient allowance for bad loans.

Low Risk Liabilities: DEA reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DEA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DEA has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DEA has an appropriate level of bad loans.


Next Steps

Dividend

What is Easterly Government Properties's current dividend yield, its reliability and sustainability?

4.45%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: DEA's dividend (4.45%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: DEA's dividend (4.45%) is in the top 25% of dividend payers in the US market (3.67%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.1%), DEA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DEA's dividends in 3 years are forecast to be thoroughly covered by earnings (0.8% payout ratio).


Next Steps

Management

What is the CEO of Easterly Government Properties's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

William Trimble (57yo)

4.8yrs

Tenure

US$2,477,867

Compensation

Mr. William C. Trimble, also known as Bill, III, serves as the Chief Executive Officer, President and Director of Easterly Government Properties, Inc. Mr. Trimble is responsible for leading firm’s real est ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD2.48M) is below average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: William's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: DEA's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

58yo

Average Age

Experienced Board: DEA's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 32.8%.


Management Team

  • Andrew Pulliam (48yo)

    Executive Vice President of Acquisitions & Portfolio Management

    • Tenure: 0yrs
  • William Trimble (57yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$2.48m
  • Michael Ibe (72yo)

    Vice Chairman of the Board and Executive VP of Development & Acquisitions

    • Tenure: 4.8yrs
    • Compensation: US$1.57m
  • Ron Kendall (64yo)

    Executive Vice President of Government Relations

    • Tenure: 4.3yrs
  • Alison Bernard (33yo)

    Chief Accounting Officer & Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$689.11k
  • Meghan Baivier (39yo)

    Executive VP

    • Tenure: 3.8yrs
    • Compensation: US$1.48m
  • Mark Bauer

    Senior Vice President of Development & Acquisitions

    • Tenure: 0yrs
  • Nick Nimerala

    VP & Head of Asset Management

    • Tenure: 2.2yrs
  • Lindsay Winterhalter

    Vice President

    • Tenure: 3.9yrs
  • Franklin Logan

    Senior VP

    • Tenure: 1.8yrs

Board Members

  • Emil Henry (58yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$174.99k
  • Cynthia Fisher (58yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$174.99k
  • Jim Mead (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$174.99k
  • Darrell Crate (52yo)

    Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$1.55m
  • Bill Binnie (61yo)

    Lead Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$174.99k
  • William Trimble (57yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$2.48m
  • Michael Ibe (72yo)

    Vice Chairman of the Board and Executive VP of Development & Acquisitions

    • Tenure: 4.8yrs
    • Compensation: US$1.57m

Company Information

Easterly Government Properties, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Easterly Government Properties, Inc.
  • Ticker: DEA
  • Exchange: NYSE
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.931b
  • Market Cap: US$1.729b
  • Shares outstanding: 82.85m
  • Website: https://www.easterlyreit.com

Number of Employees


Location

  • Easterly Government Properties, Inc.
  • 2101 L Street NW
  • Suite 650
  • Washington
  • District Of Columbia
  • 20037
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DEANYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2015
E05DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2015

Biography

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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:52
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.