📊 DEA Key Takeaways
Investment Thesis
Easterly demonstrates solid operational performance with strong revenue growth (+11.3% YoY) and exceptional free cash flow generation (71.1% FCF margin), typical of government-focused REITs with stable, long-term tenant contracts. However, the company faces significant headwinds with severely compressed profitability (net margin of 3.9%, ROE at 1.0%), declining diluted EPS (-41.3% YoY), and elevated leverage (1.26x Debt/Equity), raising concerns about capital allocation efficiency and equity shareholder returns despite operational cash generation.
DEA Strengths
- Strong revenue growth of 11.3% YoY indicating expanding portfolio or rental rate increases
- Exceptional free cash flow generation at $238.9M with 71.1% FCF margin, demonstrating capital-efficient operations typical of government-leased properties
- Substantial operating cash flow of $259.2M provides financial flexibility for debt servicing and capital allocation
- Government tenant base provides predictable, stable cash flows with long-term lease structures
DEA Risks
- Severely diluted EPS declining 41.3% YoY despite revenue growth, signaling shareholder dilution or reduced profitability per share
- Extremely low profitability metrics (net margin 3.9%, ROE 1.0%, ROA 0.4%) indicate minimal returns on shareholder capital despite strong operational cash flow
- Elevated leverage at 1.26x Debt/Equity with $1.7B long-term debt limits financial flexibility and increases refinancing risk in rising rate environments
- Low cash position of $23.4M relative to $3.4B total assets suggests limited cushion for operational disruptions or opportunities
Key Metrics to Watch
- Net Income and diluted EPS trends - critical given recent 41.3% YoY decline despite revenue growth
- Debt/Equity ratio and interest coverage capacity - essential given leverage levels and refinancing obligations
- Free Cash Flow sustainability and dividend payout ratios - to assess true shareholder returns from operations
- Government tenant diversification and lease renewal rates - key to evaluating revenue stability
DEA Financial Metrics
💡 AI Analyst Insight
The 71.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
DEA Profitability Ratios
DEA vs Default Sector
How Easterly Government Properties, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DEA Balance Sheet & Liquidity
DEA 5-Year Financial Trend
5-Year Trend Summary: Easterly Government Properties, Inc.'s revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.48 reflects profitable operations.
DEA Growth Metrics (YoY)
DEA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $74.8M | $1.2M | $0.02 |
| Q2 2025 | $76.2M | $4.1M | $0.09 |
| Q1 2025 | $72.8M | $3.1M | $0.07 |
| Q3 2024 | $72.0M | $4.9M | $0.05 |
| Q2 2024 | $71.4M | $4.6M | $0.04 |
| Q1 2024 | $71.2M | $3.9M | $0.04 |
| Q3 2023 | $72.0M | $642.0K | $0.01 |
| Q2 2023 | $71.4M | $5.1M | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DEA Capital Allocation
DEA SEC Filings
Access official SEC EDGAR filings for Easterly Government Properties, Inc. (CIK: 0001622194)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DEA
What is the AI rating for DEA?
Easterly Government Properties, Inc. (DEA) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DEA's key strengths?
Claude: Strong revenue growth of 11.3% YoY indicating expanding portfolio or rental rate increases. Exceptional free cash flow generation at $238.9M with 71.1% FCF margin, demonstrating capital-efficient operations typical of government-leased properties.
What are the risks of investing in DEA?
Claude: Severely diluted EPS declining 41.3% YoY despite revenue growth, signaling shareholder dilution or reduced profitability per share. Extremely low profitability metrics (net margin 3.9%, ROE 1.0%, ROA 0.4%) indicate minimal returns on shareholder capital despite strong operational cash flow.
What is DEA's revenue and growth?
Easterly Government Properties, Inc. reported revenue of $336.1M.
Does DEA pay dividends?
Easterly Government Properties, Inc. pays dividends, with $94.6M distributed to shareholders in the trailing twelve months.
Where can I find DEA SEC filings?
Official SEC filings for Easterly Government Properties, Inc. (CIK: 0001622194) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DEA's EPS?
Easterly Government Properties, Inc. has a diluted EPS of $0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.