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Easterly Government Properties (DEA): It's like American Tower (AMT), but for U.S. government buildings instead of cell towers.

Easterly Government Properties (DEA): Think of it as Realty Income (O), but with the U.S. government as its exclusive, ultra-reliable tenant.

Easterly Government Properties (DEA): It's like the Lockheed Martin (LMT) of government real estate, owning and leasing properties primarily to U.S. agencies.

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• Real Estate Leasing: Owns, operates, and leases mission-critical properties, primarily Class A office and data center facilities, to U.S. government agencies.

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Major Customers of Easterly Government Properties (DEA)

Easterly Government Properties (symbol: DEA) is a real estate investment trust (REIT) that focuses on acquiring, developing, and managing properties leased primarily to agencies of the U.S. Government.

Therefore, its major customer is the United States Government.

The company primarily leases its properties to various U.S. government agencies, departments, and bureaus under long-term contracts. These agencies are not separate public companies, nor does the company sell primarily to individuals. All lease payments ultimately come from the U.S. Treasury.

Examples of agencies that tenant Easterly's properties, all falling under the umbrella of the United States Government as the ultimate customer, include:

• Federal Bureau of Investigation (FBI)
• Department of Veterans Affairs (VA)
• Drug Enforcement Administration (DEA)
• General Services Administration (GSA)
• Internal Revenue Service (IRS)

As the U.S. Government is not a publicly traded company nor a category of individuals, the specific instructions regarding listing customer companies or describing categories of individual customers do not directly apply.

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Darrell W. Crate

Chief Executive Officer, President & Director

Darrell W. Crate co-founded Easterly Government Properties as a private equity fund in 2009, with the company going public in 2015. He was appointed CEO effective January 1, 2024. Prior to Easterly, Mr. Crate served as Chief Financial Officer of Affiliated Managers Group, Inc. (AMG), a publicly traded asset management holding company, from 1998 to 2011, where he oversaw significant growth through acquisition. Before AMG, he was a managing director of the Financial Institutions Group of Chase Manhattan Corporation, specializing in investment management firms. Mr. Crate also founded Easterly Asset Management and Easterly Capital, a firm dedicated to private equity investments.

Allison Marino

Executive Vice President, Chief Financial Officer

Allison Marino serves as the Executive Vice President and Chief Financial Officer for Easterly Government Properties.

Michael P. Ibe

Executive Vice President, Development & Vice Chairman of the Board of Directors

Michael P. Ibe co-founded Western Devcon, Inc. in 1987, where he has since served as president. In this role, he has been responsible for all phases of acquisition and development, including build-to-suit properties leased to the U.S. General Services Administration (GSA).

Franklin Logan

Executive Vice President, General Counsel & Secretary

Franklin Logan serves as the Executive Vice President, General Counsel & Secretary for Easterly Government Properties.

Andrew Pulliam

Executive Vice President, Acquisitions

Andrew Pulliam brings over 20 years of experience in the real estate industry, focusing on acquisitions, dispositions, and financing investments for publicly held REITs and private equity real estate funds. He has been involved in the acquisition or disposition of approximately $1 billion of commercial real estate leased to the federal government throughout his career.

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The key risks to Easterly Government Properties (symbol: DEA) include:

1. Dependence on U.S. Government and Changes in Spending Priorities/Lease Renewals: Easterly Government Properties derives substantially all of its revenues from leases with the U.S. Government and its agencies. Therefore, any potential changes in government spending priorities, reductions in real estate spending, or shifts away from leased properties could significantly impact demand for their properties and affect lease renewals or terminations. Evolving government agency demands and trends towards streamlining agency footprints also increase the risk to future occupancy rates.
2. Elevated Capital Costs, Interest Rate Hikes, and Dividend Sustainability/Leverage: The company faces risks related to rising interest rates and elevated capital costs, which can impact its access to affordable financing for growth and maintenance. The sustainability of its dividend has been flagged as a significant risk, particularly in light of high capital costs and a prior dividend reset. Additionally, the company has a relatively high net debt to TTM EBITDA ratio, and execution on leverage reduction is a risk.
3. Compressing Net Margins and Valuation Concerns: Easterly Government Properties has experienced narrowing net profit margins, indicating direct pressure on profitability despite its long-term leases. Limited built-in rent escalators in leases mean that inflation or higher financing costs may not be fully offset, potentially shrinking margins further. The company also trades at a significantly higher Price-to-Earnings Ratio compared to its industry and peers, which some analysts believe may not be justified by its projected future earnings growth.

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The clear emerging threat for Easterly Government Properties (DEA) is the **sustained shift towards remote and hybrid work models within the U.S. federal government.** This trend, significantly accelerated by the COVID-19 pandemic, could lead to a long-term reduction in the overall demand for physical office space by government agencies. If federal agencies permanently decrease their physical footprint, consolidate operations, or implement widespread hybrid schedules requiring less dedicated space per employee, DEA could face challenges in renewing leases at previous terms, filling vacancies, or acquiring new properties at favorable rates. This directly impacts the core business model of a REIT specializing in government-leased properties.

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Easterly Government Properties (symbol: DEA) primarily focuses on the acquisition, development, and management of Class A commercial properties leased to U.S. Government agencies, predominantly through the U.S. General Services Administration (GSA).

The addressable market for Easterly Government Properties' services is the U.S. federal government leased real estate market.

As of March 2024, the federal government leased approximately 176 million square feet of real estate across the United States. The GSA, which manages most federal agencies' real estate activity, including leasing, spends an estimated $5.7 billion annually in rent for its leased space throughout the country. At the end of 2024, the GSA's portfolio included nearly 175 million square feet of office and industrial space across the U.S., encompassing approximately 7,500 in-place leases. More recently, in January 2025, the GSA was reported to manage about 149.5 million square feet of office space for the federal government, with an annual rental cost of $5.25 billion.

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Expected Drivers of Future Revenue Growth for Easterly Government Properties (DEA)

• Strategic Acquisitions of Government-Leased Properties: Easterly Government Properties consistently targets accretive acquisitions of properties leased to U.S. government agencies. The company's guidance for 2025 included approximately $167 million in wholly-owned acquisitions, an increase from prior outlooks, demonstrating an ongoing commitment to expanding its portfolio through purchases. For 2026, the guidance assumes $50 million in wholly-owned acquisitions. This strategy directly increases the number of properties generating rental income.
• Development and Redevelopment Initiatives: The company actively engages in development and redevelopment projects. For example, 2025 guidance included $25 million to $75 million of gross development-related investment, with 2026 guidance anticipating $50 million to $100 million in such investments. Ongoing development projects, such as a Florida lab scheduled for late 2026 delivery and federal facilities in Georgia, Arizona, and Oregon, will contribute to future revenue upon completion and lease commencement.
• Expansion of Total Addressable Market: Easterly is broadening its scope beyond just federal government properties to include state and local governments and government-adjacent sectors, including assets leased to government contractors. This expansion opens new avenues for growth by significantly enlarging the pool of potential acquisition and development opportunities, as evidenced by the acquisition of a facility leased to the District of Columbia Government in April 2025.
• Embedded Growth from Long-Term, Mission-Critical Leases: The core of Easterly's revenue stability and growth stems from its portfolio of properties leased to U.S. government agencies, which are often considered mission-critical. These leases typically have long weighted-average remaining terms (e.g., 9.8 years as of Q1 2025, with over 95% of lease income in firm terms), providing predictable and stable revenue streams. Many of these leases also include contractual rent escalations, contributing to organic revenue growth over time.

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Share Repurchases

• On May 3, 2022, Easterly Government Properties' Board of Directors approved a share repurchase program authorizing the company to repurchase up to 4,538,994 shares of its common stock, representing approximately 5% of its outstanding shares at the time.
• The program allows for repurchases through various methods, including open market and privately negotiated transactions, but does not obligate the company to acquire any specific amount of shares and can be suspended or discontinued at any time.

Share Issuance

• In August 2021, Easterly Government Properties priced an underwritten public offering of 6,300,000 shares of its common stock, entering into forward sale agreements with the underwriters.
• Net proceeds from the future settlement of these forward sale agreements were expected to be used for general corporate purposes, including property acquisitions, development, debt repayment, and capital expenditures.
• As of March 31, 2025, the company settled 1,514,266 shares of common stock from its $300.0 million ATM Program (launched in June 2021), generating approximately $40.9 million in net proceeds at a weighted average price of $27.40 per share.
• A 1-for-2.5 reverse stock split was completed on April 28, 2025, which reduced the number of outstanding shares of common stock from approximately 112.3 million to 44.9 million.

Outbound Investments

• Easterly Government Properties is primarily focused on the acquisition, development, and management of Class A commercial properties leased to the U.S. Government.
• In 2022, the company, directly or through its joint venture, acquired over $252 million in build-to-suit properties that are 100% leased to the U.S. Government.
• Through the first nine months of 2025, Easterly closed three acquisitions totaling $169.9 million. Notable acquisitions include a 74,549 square foot facility primarily leased to the U.S. Department of Homeland Security near Burlington, Vermont (acquired May 2025) and a 138,125 square foot facility in Greenwood Village, Colorado, leased to York Space Systems (acquired September 2025).

Capital Expenditures

• In the first quarter of 2025, capital expenditures included $0.285 million for maintenance and $0.612 million for contractual tenant improvements.
• For 2023, the company anticipated up to $15 million of gross development-related investment.