Easterly Government Properties (DEA) Citi’s Miami Global Property CEO Conference 2026 summary

Strategic positioning and growth outlook

• Projects 2–3% annual FFO growth, with potential to reach 5% after achieving investment grade status in the next few years.

• Portfolio is 97% occupied, with mid-90s targeted, and lease renewals typically span 10–20 years, supporting stable cash flows.

• Focus on mission-critical government facilities, with a weighted average building age of 16 years and long-term tenant relationships.

• Dividend yield is over 8%, with a recent shift from high payout to growth orientation to enhance long-term value.

• Plans to reduce leverage from 7x to 6x, aiming for investment grade rating to unlock further growth and lower capital costs.

Development pipeline and capital allocation

• Active development pipeline includes two courthouses and a law enforcement lab, with yields above 11% and accretive to FFO.

• Recently completed a $250 million FDA lab in Atlanta, with additional FDA labs and VA facilities planned.

• Development projects provide natural de-levering points through cash flow and government reimbursements.

• Acquisition pipeline of $1.5 billion, with more than half in development, and selective approach based on cost of capital.

• Strategic partnerships with sovereign wealth funds and merchant developers to access larger deals and diversify capital sources.

Market dynamics and risk management

• 30% of portfolio targeted for state/local or government-adjacent tenants, providing escalators and incremental NOI growth.

• Deferred maintenance in government buildings ($85B) presents ongoing opportunities for public-private partnerships.

• New GSA leadership expected to accelerate shift from government-owned to leased assets, with long-term growth potential.

• Competitive landscape favors experienced partners; company’s expertise and speed of execution are valued by sellers.

• AI adoption is enhancing operational efficiency and lease management, with further benefits expected but not yet in guidance.