Key Highlights

  • Easterly Government Properties (NYSE:DEA) reported third-quarter net income of $5.7 million and Core FFO of $38.0 million, or $0.78 per share.
  • The operating portfolio of 106 properties was 98% leased, with a weighted average remaining lease term of 9.2 years.
  • A $35.6 million Bedford construction loan was repaid ahead of its August 2027 maturity.
  • The board declared a third-quarter dividend of $0.45 per share, payable 20 November.

Easterly Government Properties, Inc. (NYSE:DEA) reported net income of $5.7 million, or $0.12 per diluted share, and Core funds from operations of $38.0 million, or $0.78 per diluted share, for the quarter ended 30 September 2026. The real estate investment trust focuses on Class A commercial properties leased to the U.S. Government and its adjacent partners.

Quarterly and Nine-Month Results

For the nine months ended 30 September 2026, net income was $10.3 million, or $0.21 per diluted share, and Core FFO was $112.5 million, or $2.33 per share. During the third quarter Easterly used $6.4 million of available cash to extinguish the mortgage note on USFS II - Albuquerque, and it received full repayment of the $35.6 million Bedford construction loan, including accrued interest, in September, ahead of its scheduled August 2027 maturity.

Portfolio, Leasing and Balance Sheet

As of 30 September, Easterly or its joint venture owned 106 operating properties with about 10.7 million leased square feet: 93 leased primarily to U.S. Government agencies, eight to state or local government agencies and five to private tenants. The portfolio was 98% leased, with a weighted average age of 17.4 years and a weighted average remaining lease term of 9.2 years.

The company extended the Various GSA - Chicago (FAA) lease through July 2027, with firm term through April 2027, and renewed USCIS - Lincoln on a new 15-year lease with 10 years of firm term. Construction at the Florida Department of Law Enforcement laboratory in Fort Myers, leased for 25 years, was completed in October. Two further developments, in Flagstaff and Medford, are under construction for GSA leases of 20 years each.

Total indebtedness was about $1.7 billion, including $1.0 billion of senior unsecured notes and $142.3 million of mortgage debt, with a weighted average maturity of 3.8 years and a weighted average interest rate of 4.6%. Net debt to total enterprise value was 59.6%, and net debt to annualized quarterly EBITDA was 7.1x. Easterly amended two credit facilities to remove the credit spread adjustment on SOFR-based borrowings and entered four interest rate swaps with a combined $200.0 million notional on 22 October. The board approved a dividend of $0.45 per share payable 20 November to holders of record on 5 November.

Guidance included in the release raises the lower end of full-year 2026 Core FFO per share to a range of $3.08 to $3.13, and introduces 2027 Core FFO per share guidance of $3.09 to $3.17. The company states that guidance is forward-looking and that actual results may differ materially.

Why This Could Matter

The release sets out the lease profile and leverage that underlie the dividend. With 98% occupancy and a 9.2-year weighted lease term, income is tied to long government leases, while the leverage ratios and 4.6% average interest rate show the cost of the $1.7 billion debt stack. The loan repayment and mortgage payoff changed the composition of cash and debt during the quarter.

The nine-month Core FFO of $112.5 million, or $2.33 per share, compares with full-year 2026 guidance of $3.08 to $3.13 per share. The Fort Myers laboratory, now complete, is leased to the Florida Department of Law Enforcement for 25 years, and the Flagstaff and Medford projects are expected to begin 20-year GSA leases once built for the United States Judiciary.

The Bottom Line

Easterly reported Core FFO of $0.78 per share for the quarter, a stable occupancy level and a $0.45 dividend, alongside leasing renewals, development progress and financing amendments.