Easterly Government Properties (DEA) Q1 2026 earnings summary

Executive summary

• Portfolio occupancy remained high at 97% with a weighted average lease term of 9.4 years, focused on government-tenanted Class A commercial real estate and mission-critical assets.

• Portfolio comprised 106 operating properties totaling 10.7 million leased sq. ft., including 96 wholly owned and 10 JV properties, with three under development.

• Acquired a three-building portfolio in Glen Allen, VA for $44.6 million and a 297,713 sq. ft. campus in Virginia, contributing to revenue and net income.

• Completed first mezzanine investment, a $7 million loan at 12% yield for a VA outpatient clinic, reflecting a shift to adjacent growth opportunities.

• Strategic focus on disciplined capital allocation, steady earnings growth, and improving portfolio quality.

Financial highlights

• Total revenue for Q1 2026 was $91.5 million, up 16% from $78.7 million in Q1 2025, driven by acquisitions and development properties placed into service.

• EBITDA increased to $57.3 million from $51 million, a 12% year-over-year rise.

• Net income was $1.4 million ($0.03 per share fully diluted), down from $3.3 million in the prior year.

• Core FFO per share increased to $0.77 from $0.73 (5.5% growth); FFO per share rose to $0.76 from $0.71.

• Cash available for distribution was $32.2 million; cash from operating activities was $27.3 million, up from $24.2 million.

Outlook and guidance

• Raised the low-end of full-year 2026 Core FFO guidance to $3.06–$3.12 per share fully diluted.

• Net income per share guidance for 2026 is $0.36–$0.42 fully diluted.

• Guidance assumes $50–$100 million in gross development investment and $50 million in wholly owned acquisitions for the year.

• Management expects adequate liquidity for the next 12 months, supported by cash, operating cash flow, JV distributions, and available credit.

• Long-term growth rate targeted at 2–3% annually, with optimism for continued growth into 2027.