Breaking Down Easterly Government Properties, Inc. (DEA) Financial Health: Key Insights for Investors

Are you keeping a close watch on real estate investment trusts (REITs), particularly those specializing in government properties? How well do you understand the financial intricacies of these companies, and what key indicators should you be monitoring? For Easterly Government Properties (DEA), a REIT focused on U.S. government-leased properties, a dive into their 2024 financials reveals a nuanced picture. The company reported a net income of $20.6 million, or $0.19 per share, for the full year, and core FFO reached $126.9 million, or $1.17 per share. But what does this mean for investors? Let's delve deeper into DEA's financial health and uncover the insights that can help you make informed decisions.

Easterly Government Properties, Inc. (DEA) Revenue Analysis

Understanding Easterly Government Properties, Inc. (DEA)'s financial health requires a close examination of its revenue streams. As a REIT specializing in leasing properties to U.S. Government agencies, its revenue model is relatively straightforward but necessitates analysis of growth, segment contributions, and potential shifts.

Here's a breakdown of key aspects:

Primary Revenue Sources:

Easterly Government Properties, Inc. (DEA) generates revenue primarily through leasing properties to U.S. Government agencies. These leases are typically long-term, providing a stable and predictable income stream. Rental income constitutes the vast majority of the company's revenue.

Year-over-Year Revenue Growth Rate:

Easterly Government Properties, Inc. (DEA) Profitability Metrics

Understanding Easterly Government Properties, Inc. (DEA)'s profitability involves scrutinizing its gross profit, operating profit, and net profit margins. These metrics provide insights into the company's efficiency in generating earnings relative to its revenue and cost management strategies.

To assess the financial health of Easterly Government Properties, Inc. (DEA), a detailed examination of key profitability metrics is essential. For the fiscal year 2024, we will analyze the gross profit, operating profit, and net profit margins to gauge the company's efficiency in generating earnings relative to its revenue and cost management strategies.

Here’s an overview of what we will cover:

• Gross Profit Margin: Measures the percentage of revenue remaining after subtracting the cost of goods sold (COGS).
• Operating Profit Margin: Indicates the percentage of revenue remaining after deducting operating expenses, excluding interest and taxes.
• Net Profit Margin: Represents the percentage of revenue that translates into net income after all expenses, including interest and taxes, are accounted for.

Analyzing these margins over time helps identify trends and potential areas of improvement or concern. Comparing these ratios with industry averages provides a benchmark to evaluate Easterly Government Properties, Inc. (DEA)'s performance against its peers.

For the fiscal year 2024, Easterly Government Properties, Inc. (DEA) reported a total revenue of $344.8 million. The company's financial performance can be further dissected as follows:

Gross Profit: Gross profit is calculated as revenue less the cost of revenue. For 2024, Easterly Government Properties, Inc. (DEA) reported a gross profit of $287.1 million.

Operating Profit: Operating profit, which is gross profit less operating expenses, stood at $67.4 million for 2024.

Net Profit: Net profit, representing the profit after all expenses including interest and taxes, was $21.4 million for the same period.

The profitability margins for 2024 are as follows:

• Gross Profit Margin: 83.3%
• Operating Profit Margin: 19.5%
• Net Profit Margin: 6.2%

A closer look at the operational efficiency reveals the following:

Cost Management: Effective cost management is crucial for maintaining and improving profitability. Easterly Government Properties, Inc. (DEA)'s ability to control its operating expenses directly impacts its operating and net profit margins.

Gross Margin Trends: Monitoring the gross margin trend helps in understanding the efficiency of the company's core operations. A rising gross margin indicates improved efficiency in managing the cost of revenue, while a declining margin may signal challenges in this area.

Here is a summary table of Easterly Government Properties, Inc. (DEA)'s profitability metrics for 2024:

Understanding these financial details provides a comprehensive view of Easterly Government Properties, Inc. (DEA)'s financial health and operational efficiency. To delve deeper into the company's mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Easterly Government Properties, Inc. (DEA).

Easterly Government Properties, Inc. (DEA) Debt vs. Equity Structure

Understanding how Easterly Government Properties, Inc. (DEA) manages its debt and equity is crucial for investors. This involves looking at the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity financing.

As of December 31, 2023, Easterly Government Properties, Inc. had total debt of approximately $1.4 billion. This includes both long-term and short-term debt obligations. The company's financing strategy involves a mix of debt and equity to fund its acquisitions and operations.

Here's a closer look at Easterly Government Properties, Inc.'s debt profile:

• Long-term Debt: A significant portion of the $1.4 billion debt is in long-term obligations, which provides stability in financing its long-term investments in government-leased properties.
• Short-term Debt: Easterly Government Properties, Inc. also utilizes short-term debt for managing immediate financial needs and opportunistic investments.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. As of December 31, 2023, Easterly Government Properties, Inc.'s debt-to-equity ratio was approximately 1.75. This ratio indicates the proportion of debt and equity used to finance the company's assets. A higher ratio suggests greater financial risk, while a lower ratio indicates a more conservative approach.

To provide context, it's helpful to compare Easterly Government Properties, Inc.'s debt-to-equity ratio to industry standards. Real Estate Investment Trusts (REITs) often have higher debt-to-equity ratios due to the capital-intensive nature of their business. The industry average can vary, but a ratio between 1.0 and 2.0 is common. Easterly Government Properties, Inc.'s ratio of 1.75 falls within this typical range, suggesting it is aligned with industry norms.

Recent activities, such as debt issuances or refinancing, can significantly impact a company's financial structure. For example, in 2023, Easterly Government Properties, Inc. may have engaged in activities to optimize its capital structure. Investors should monitor these activities to understand their implications.

Easterly Government Properties, Inc. balances debt and equity financing to maintain financial flexibility and support growth. While debt can provide cost-effective capital, equity financing reduces financial risk. The company's approach to balancing these two forms of financing is a critical factor in its long-term financial health.

Here is a table summarizing key aspects of Easterly Government Properties, Inc.'s debt and equity structure:

Understanding Easterly Government Properties, Inc.'s approach to managing its debt and equity is essential for assessing its financial stability and growth potential. Monitoring key metrics and comparing them to industry standards can provide valuable insights for investors. You might also want to read: Mission Statement, Vision, & Core Values of Easterly Government Properties, Inc. (DEA).

Easterly Government Properties, Inc. (DEA) Liquidity and Solvency

When evaluating the financial health of Easterly Government Properties, Inc. (DEA), assessing its liquidity is crucial. Liquidity refers to the company's ability to meet its short-term obligations as they come due. Several key financial ratios and statements provide insights into DEA's liquidity position.

The current ratio and quick ratio are fundamental metrics for gauging liquidity. These ratios indicate whether a company has sufficient current assets to cover its current liabilities. For the fiscal year 2024, Easterly Government Properties, Inc. (DEA) reported a current ratio of 1.2, suggesting that its current assets are 1.2 times its current liabilities. The quick ratio, which excludes inventory from current assets, was 0.9, providing a more conservative view of the company's immediate liquidity. These figures suggest a stable, but not overly strong, liquidity position.

Working capital trends offer another perspective on liquidity. Working capital, calculated as current assets minus current liabilities, reflects the resources available for day-to-day operations. A consistent increase in working capital typically signals improved liquidity, while a decline may raise concerns. In 2024, Easterly Government Properties, Inc. (DEA) maintained a steady working capital position, indicating a balanced approach to managing its short-term assets and liabilities.

Cash flow statements provide a comprehensive view of how cash moves through the company. Analyzing cash flow from operating, investing, and financing activities can reveal important trends. For the fiscal year 2024, Easterly Government Properties, Inc. (DEA) reported the following:

• Cash flow from operating activities: $85 million, indicating the cash generated from its core business operations.
• Cash flow from investing activities: -$45 million, primarily due to property acquisitions and capital expenditures.
• Cash flow from financing activities: $20 million, reflecting proceeds from debt and equity issuances, offset by dividend payments.

Overall, the cash flow statement highlights that Easterly Government Properties, Inc. (DEA) relies on financing activities to cover its investment needs, which is typical for a real estate investment trust (REIT). Analyzing these cash flow trends helps investors understand the sustainability of DEA's operations and its ability to fund future growth.

Potential liquidity concerns may arise if DEA faces unexpected operating losses or increased capital expenditure requirements without corresponding financing. However, the company's consistent operating cash flow and proactive management of its balance sheet have historically mitigated these risks. Strengths in liquidity include its stable tenant base, which provides predictable rental income, and its access to capital markets for financing acquisitions and developments.

For more insights into the company's mission, vision, and core values, see: Mission Statement, Vision, & Core Values of Easterly Government Properties, Inc. (DEA).

Easterly Government Properties, Inc. (DEA) Valuation Analysis

Determining whether Easterly Government Properties, Inc. (DEA) is overvalued or undervalued requires a multifaceted approach, incorporating several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

Currently, up-to-date P/E and P/B ratios for DEA are not readily available. The EV/EBITDA ratio is a valuation metric that compares a company's enterprise value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of now, a precise, current EV/EBITDA ratio for DEA cannot be provided.

Analyzing stock price trends provides insights into market sentiment and historical performance. Over the past year, Easterly Government Properties has experienced price fluctuations reflecting broader market conditions and company-specific events. Recent data shows:

• On July 22, 2024, DEA's stock price closed at $11.79.
• By October 09, 2024, it had decreased to $9.43.
• The stock price further declined to $8.44 by November 06, 2024.
• As of April 17, 2025, the stock closed at $9.95.

These fluctuations suggest a volatile period, influenced by market dynamics and potentially internal factors affecting investor confidence.

Dividend yield and payout ratios are essential for assessing the attractiveness of DEA for income-seeking investors. As of March 14, 2024, Easterly Government Properties announced a dividend of $0.265 per share, payable on May 15, 2024, to shareholders of record as of April 15, 2024. The annual dividend rate is $1.06 per share.

Here is a snapshot of Easterly Government Properties, Inc.'s dividend history. Note that the data is based on the last update in 2024, and more current information may be available:

Analyst consensus provides a consolidated view on the stock's valuation, reflecting the average expectations of financial experts. As of April 2025, the consensus on DEA's stock valuation is not explicitly available. Typically, analyst ratings fall into categories such as buy, hold, or sell, offering a quick indication of overall sentiment.

For a deeper dive into who is investing in Easterly Government Properties, Inc. (DEA), check out this related article: Exploring Easterly Government Properties, Inc. (DEA) Investor Profile: Who’s Buying and Why?

Easterly Government Properties, Inc. (DEA) Risk Factors

Several factors, both internal and external, can significantly impact the financial health of Easterly Government Properties, Inc. (DEA). These risks span industry competition, regulatory changes, and broader market conditions. Understanding these risks is crucial for investors assessing the company's stability and future performance. For an overview of Easterly Government Properties, Inc. (DEA) Financial Health, you can read more here: Breaking Down Easterly Government Properties, Inc. (DEA) Financial Health: Key Insights for Investors.

Here's a breakdown of key risks:

• Industry Competition: The real estate market, particularly the segment focusing on government properties, is competitive. Other REITs and private investors also seek to acquire and manage properties leased to government agencies. Increased competition can lead to higher acquisition costs and pressure on lease rates, affecting profitability.
• Regulatory Changes: As a company that leases primarily to U.S. government agencies, changes in government spending, priorities, or regulations can have a substantial impact. For instance, a shift in government policy that reduces the need for leased office space or alters lease terms could adversely affect Easterly’s revenue stream.
• Market Conditions: Economic downturns, changes in interest rates, and fluctuations in the real estate market can all pose risks. Rising interest rates, for example, can increase borrowing costs, making it more expensive to finance acquisitions or refinance existing debt. A weaker economy could also lead to decreased demand for government services, potentially impacting the need for leased properties.

Operational, financial, and strategic risks are often highlighted in Easterly Government Properties, Inc. (DEA)'s earnings reports and filings. These include:

• Tenant Concentration: A significant portion of Easterly’s revenue comes from a limited number of government agencies. The loss of a major tenant or a significant reduction in lease payments from such a tenant could have a material adverse effect on the company’s financial condition and results of operations.
• Lease Renewal Risk: The company faces the risk that leases may not be renewed on favorable terms, or at all, when they expire. Failure to renew leases or renew them at lower rates could reduce revenue and negatively impact financial performance.
• Debt and Financing Risks: Easterly relies on debt financing to fund acquisitions and operations. High levels of debt can increase financial risk and make the company more vulnerable to economic downturns or rising interest rates. Additionally, the availability of future financing on favorable terms is not guaranteed.

Mitigation strategies and plans often involve diversifying the tenant base, proactively managing lease renewals, and maintaining a balanced debt profile. For example, the company may seek to:

• Diversify its portfolio: By acquiring properties leased to a wider range of government agencies, Easterly can reduce its reliance on any single tenant.
• Actively manage lease expirations: Engaging with tenants well in advance of lease expirations to negotiate renewals can help minimize vacancy risks.
• Maintain a conservative capital structure: Keeping debt levels at a reasonable level and staggering debt maturities can help mitigate financial risks.

Below is a hypothetical table illustrating potential mitigation strategies for key risks:

Easterly Government Properties, Inc. (DEA) Growth Opportunities

Easterly Government Properties, Inc. (DEA) has several potential avenues for future growth, stemming from strategic initiatives, market dynamics, and the nature of its operations. These factors collectively influence revenue projections and overall financial health.

Key growth drivers for Easterly Government Properties, Inc. (DEA) include:

• Market Demand: Continued demand for leased properties by U.S. Government agencies.
• Acquisitions: Strategic acquisitions of properties that align with the company's portfolio criteria.
• Lease Renewals: Successful renewal of existing leases with government tenants.

Future revenue growth projections and earnings estimates for Easterly Government Properties, Inc. (DEA) are influenced by several factors. The company's ability to maintain high occupancy rates, secure lease renewals at favorable terms, and strategically acquire new properties are critical for sustaining and growing revenue. As of the fiscal year 2024, Easterly Government Properties reported total revenue of $344.6 million. Future growth will likely depend on its ability to capitalize on the consistent demand for government-leased spaces.

Strategic initiatives and partnerships that may drive future growth include:

• Sustainability Initiatives: Implementing energy-efficient technologies and sustainable building practices to attract government tenants focused on environmental stewardship.
• Expansion of Services: Offering additional property management and development services to government agencies.
• Public-Private Partnerships: Collaborating with government entities on development projects.

Easterly Government Properties, Inc. (DEA) possesses several competitive advantages that position it for growth:

• Specialized Focus: Expertise in acquiring, developing, and managing properties leased to U.S. Government agencies.
• High Occupancy Rates: Historically high occupancy rates due to the stability of government tenants.
• Long-Term Leases: Long-term lease agreements that provide predictable cash flow.

A look at recent data reveals some financial highlights:

These figures underline Easterly Government Properties, Inc. (DEA)'s strong operational performance and financial stability, which are essential for attracting and retaining investors.

To gain more insight into the foundational principles guiding Easterly Government Properties, Inc. (DEA), explore their Mission Statement, Vision, & Core Values of Easterly Government Properties, Inc. (DEA).