📊 DEA Key Takeaways
Is Easterly Government Properties, Inc. (DEA) a Good Investment?
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.
Easterly Government Properties shows solid top-line growth and very strong operating cash generation, supported by a large real estate asset base and meaningful free cash flow. However, reported profitability remains thin, returns on capital are weak, and the sharp decline in diluted EPS despite higher net income raises questions about growth quality and per-share value creation. The balance sheet is manageable but still fairly leveraged for a low-margin earnings profile.
Why Buy Easterly Government Properties, Inc. Stock? DEA Key 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
- Revenue grew 11.3% year over year, indicating continued portfolio and rental income expansion
- Operating cash flow of $259.19M and free cash flow of $238.89M show strong cash-generating capacity
- Equity base of $1.32B supports a sizable asset portfolio and provides some balance sheet stability
DEA Stock Risks: Easterly Government Properties, Inc. Investment 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
- Net margin of 3.9% and ROE of 1.0% indicate weak bottom-line efficiency and low shareholder returns
- Diluted EPS fell 41.3% year over year even as net income rose, suggesting dilution or weaker per-share economics
- Long-term debt of $1.67B and debt-to-equity of 1.26x leave the company exposed to leverage and financing risk
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
- Diluted EPS trend versus net income growth
- Debt levels and operating cash flow coverage
Easterly Government Properties, Inc. (DEA) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
DEA vs Real Estate Sector: How Easterly Government Properties, Inc. Compares
How Easterly Government Properties, Inc. compares to Real Estate sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Easterly Government Properties, Inc. Stock Overvalued? DEA Valuation Analysis 2026
Based on fundamental analysis, Easterly Government Properties, Inc. has mixed fundamental signals relative to the Real Estate sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Easterly Government Properties, Inc. Balance Sheet: DEA Debt, Cash & Liquidity
DEA Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
DEA Quarterly Earnings & 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.
Easterly Government Properties, Inc. Dividends, Buybacks & Capital Allocation
DEA SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined 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. ChatGPT: Revenue grew 11.3% year over year, indicating continued portfolio and rental income expansion. Operating cash flow of $259.19M and free cash flow of $238.89M show strong cash-generating capacity.
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. ChatGPT: Net margin of 3.9% and ROE of 1.0% indicate weak bottom-line efficiency and low shareholder returns. Diluted EPS fell 41.3% year over year even as net income rose, suggesting dilution or weaker per-share economics.
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.
Is DEA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Easterly Government Properties, Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DEA stock overvalued or undervalued?
Valuation metrics for DEA: ROE of 1.0% (sector avg: 8%), net margin of 3.9% (sector avg: 20%). Compare these metrics with sector averages to assess valuation.
Should I buy DEA stock in 2026?
Our dual AI analysis gives Easterly Government Properties, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DEA's free cash flow?
Easterly Government Properties, Inc.'s operating cash flow is $259.2M, with capital expenditures of $20.3M. FCF margin is 71.1%.
How does DEA compare to other Real Estate stocks?
Vs Real Estate sector averages: Net margin 3.9% (avg: 20%), ROE 1.0% (avg: 8%), current ratio N/A (avg: 1.5).