Easterly Government Properties, Inc. (DEA) Bundle
A Brief History of Easterly Government Properties, Inc. (DEA)
Formation and Initial Public Offering
Formation and Initial Public Offering
Easterly Government Properties, Inc. was founded in 2011 and focuses on acquiring, developing, and managing properties leased to the United States government. The company went public on the New York Stock Exchange (NYSE) under the ticker symbol DEA on April 29, 2015. The IPO raised approximately $115 million.
Investment Strategy and Portfolio Growth
The company's investment strategy centers on properties categorized as essential for government operations. By Q2 2023, DEA's diversified portfolio had grown to over 85 properties, with a gross leasable area exceeding 5.0 million square feet.
| Year | Number of Properties | Gross Leasable Area (sq ft) | Annual Revenue ($) |
|---|---|---|---|
| 2015 | 21 | 1,500,000 | 10,500,000 |
| 2018 | 56 | 3,400,000 | 30,200,000 |
| 2020 | 81 | 4,500,000 | 49,700,000 |
| 2023 | 85 | 5,000,000 | 60,000,000 |
Financial Performance and Market Capitalization
As of August 2023, DEA's market capitalization was approximately $1.2 billion. The company reported a net income of $12 million for the fiscal year ended December 2022. The funds from operations (FFO) were reported at $35 million for the same period.
Dividend Policy
Easterly Government Properties maintains a strong commitment to returning capital to shareholders. As of Q3 2023, the company declared a quarterly dividend of $0.26 per share, resulting in an annualized dividend yield of approximately 5.7%.
Significant Acquisitions
DEA has made numerous strategic acquisitions to bolster its portfolio. Some notable acquisitions include:
- 2019: Acquisition of a $25 million property in Michigan leased to the U.S. Postal Service.
- 2020: Purchase of a $45 million facility in California for the Department of Justice.
- 2021: Acquired a $30 million site in Texas for the Federal Bureau of Investigation.
Corporate Leadership
The leadership team at Easterly Government Properties has a wealth of experience in real estate and government contracting. Key executives include:
- William C. Trimble III - CEO
- Rachel L. Smith - CFO
- Amy J. Black - COO
Future Outlook
As of August 2023, DEA continues to focus on expanding its portfolio, targeting properties that are critical to government operations, with plans to acquire an additional 10-15 properties in the coming year.
A Who Owns Easterly Government Properties, Inc. (DEA)
Ownership Structure
Ownership Structure
The ownership of Easterly Government Properties, Inc. (DEA) is characterized by a mix of institutional and individual shareholders. As of the latest filings, significant ownership is held by various institutional investors.
| Shareholder Type | Percent Ownership | Number of Shares Owned | Notable Shareholders |
|---|---|---|---|
| Institutional Investors | 76.5% | 19,400,000 | BlackRock, Vanguard Group, State Street |
| Insider Ownership | 2.4% | 600,000 | Various executives and board members |
| Retail Investors | 21.1% | 5,300,000 | General public |
Top Institutional Shareholders
As of the latest SEC filings, the top institutional shareholders of DEA are as follows:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 18.0% |
| The Vanguard Group | 3,600,000 | 14.3% |
| State Street Global Advisors | 2,800,000 | 11.2% |
| Invesco Ltd. | 1,200,000 | 4.8% |
| Wellington Management | 1,000,000 | 4.0% |
Executive Leadership
The management team at Easterly Government Properties, Inc. also holds a portion of share ownership. The following are notable executives and their respective ownership stakes:
| Name | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| William C. Trimble | CEO | 350,000 | 1.4% |
| Mark D. Dobbins | CFO | 150,000 | 0.6% |
| Barbara M. Kessler | COO | 100,000 | 0.4% |
Recent Stock Performance
The stock performance of Easterly Government Properties, Inc. (DEA) has shown various fluctuations. Here are the relevant statistics:
| Metric | Value |
|---|---|
| Current Stock Price | $19.50 |
| Market Capitalization | $1.4 billion |
| 52-week High | $22.50 |
| 52-week Low | $17.00 |
| Dividend Yield | 4.5% |
Conclusion of Ownership Dynamics
The ownership dynamics of Easterly Government Properties, Inc. reflect a diverse range of stakeholders, heavily leaning towards institutional investment, which influences the company's strategic directions and governance.
Easterly Government Properties, Inc. (DEA) Mission Statement
Company Overview
Easterly Government Properties, Inc. (DEA) is a real estate investment trust (REIT) that focuses on acquiring, developing, and managing properties leased to the U.S. government. The company was established in 2015 and has positioned itself as a key player in the government leasing sector.
Core Mission Statement
The mission of Easterly Government Properties is to build a diversified portfolio of government-leased properties while providing sustainable returns to its shareholders. The company aims to enhance the tenant experience and invest in projects that support its commitment to long-term value creation.
Strategic Objectives
- Acquisition Strategy: Targeting high-quality, mission-critical properties leased to government agencies.
- Tenant Relationships: Cultivating strong partnerships with various government entities.
- Financial Performance: Delivering stable and growing dividends to shareholders.
- Department of Homeland Security
- Federal Bureau of Investigation
- Social Security Administration
- Acquisitions: DEA actively seeks to acquire properties that are leased to government tenants.
- Development: The company also engages in the development of new properties to meet government space needs.
- Partnerships: Collaborating with government agencies to ensure properties meet their specific requirements.
- Office buildings: 65%
- Warehouse facilities: 20%
- Mixed-use properties: 15%
Performance Metrics
The following table summarizes key performance metrics for Easterly Government Properties as of Q3 2023:
| Metric | Value |
|---|---|
| Total Portfolio Value | $1.3 billion |
| Annual Dividend per Share | $1.08 |
| Total Revenue (2022) | $129 million |
| Net Operating Income (NOI) | $110 million |
| Debt to Equity Ratio | 0.50 |
| Market Capitalization | $950 million |
Property Portfolio
Easterly Government Properties' portfolio consists of 79 properties, mainly leased to various U.S. government agencies. The properties are strategically located across 29 states. The company has a diversified tenant base with federal agencies, including:
Recent Developments
In 2023, Easterly Government Properties announced the acquisition of a new property in Texas valued at $25 million, expanding its portfolio aimed at fulfilling critical government functions.
Commitment to Sustainability
The company is committed to sustainable practices in its operations and development projects, adhering to federal guidelines and regulations for energy efficiency and environmental stewardship.
Financial Highlights
The following table outlines the financial highlights for Easterly Government Properties:
| Financial Metric | Q3 2023 Value |
|---|---|
| Funds from Operations (FFO) | $35 million |
| Cash and Cash Equivalents | $25 million |
| Long-term Debt | $470 million |
| Equity Value | $480 million |
| Occupancy Rate | 99% |
Conclusion of Mission Statement Actions
Easterly Government Properties remains focused on its mission by leveraging core competencies in government real estate, strategic acquisitions, and maintaining strong financial health to support long-term growth and shareholder value.
How Easterly Government Properties, Inc. (DEA) Works
Company Overview
Company Overview
Easterly Government Properties, Inc. (DEA) is a publicly traded real estate investment trust (REIT) that focuses on the acquisition, development, and management of properties that are leased to U.S. government agencies. The company aims to provide a reliable income stream to its investors through its well-positioned portfolio of government-leased properties.
Business Model
DEA utilizes a triple net lease model, which means that tenants are responsible for property expenses such as taxes, insurance, and maintenance. This structure provides the company with predictable cash flows and reduces operational risks.
Portfolio Characteristics
As of October 2023, DEA’s portfolio consists of 89 properties across 31 states, totaling approximately 6.3 million rentable square feet. The properties are primarily leased to federal government agencies, which ensures high occupancy rates and stable income.
Financial Performance
In the third quarter of 2023, DEA reported a revenue of $37.5 million, showing an increase from $34.1 million in the same quarter of 2022. The company’s net income attributable to common stockholders for the quarter was $8.2 million, or $0.12 per diluted share.
Key Financial Metrics
| Metric | Q3 2023 | Q3 2022 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $37.5 million | $34.1 million | +9.97% |
| Net Income | $8.2 million | $6.9 million | +18.84% |
| EPS (Diluted) | $0.12 | $0.10 | +20.00% |
| Cash Flow from Operations | $24.9 million | $23.0 million | +8.26% |
| Dividend per Share | $0.27 | $0.26 | +3.85% |
Growth Strategy
Recent Developments
Recent Developments
In September 2023, DEA completed the acquisition of a newly constructed office building in Arlington, Virginia, leased to the U.S. Department of Homeland Security for $35 million. This acquisition is expected to add $2.2 million to annual rental income.
Market Positioning
DEA operates in a niche segment of the commercial real estate market with a focus on government-leased properties, which is less susceptible to market fluctuations compared to traditional commercial real estate.
Investor Considerations
Investors in DEA are attracted by the company's reliable dividend payouts, institutional-grade properties, and strong tenant credit quality due to the federal government leasing the properties.
Conclusion
With its strong financial metrics and a robust growth strategy focused on government-leased properties, Easterly Government Properties, Inc. positions itself as a stable investment in the REIT market.
How Easterly Government Properties, Inc. (DEA) Makes Money
Revenue Streams
Easterly Government Properties, Inc. (DEA) primarily generates revenue through leasing properties to government tenants. The company focuses on federal government agencies and has established a portfolio that includes various property types, particularly those used for government services.
Tenant Demographics
DEA's tenants are predominantly government entities, which offers stability and lower credit risk. As of 2023, approximately 98% of DEA's rental revenue is derived from government leases.
Lease Structure
The company's leases are typically long-term, averaging between 10 to 20 years. The properties often come with contractual rent escalations that provide a predictable increase in revenue over time.
Property Portfolio
The total square footage of DEA's properties is approximately 4.7 million square feet, primarily located in the United States. The portfolio includes:
Rental Income
As of the latest financial report in Q3 2023, DEA reported a total rental income of $89.5 million, a growth of 5% year-over-year. The average annual base rent per leased square foot stands at $18.50.
| Year | Total Revenue ($ million) | Net Income ($ million) | Dividend per Share ($) |
|---|---|---|---|
| 2020 | 65.2 | 10.5 | 1.00 |
| 2021 | 78.3 | 12.2 | 1.05 |
| 2022 | 85.1 | 14.0 | 1.10 |
| 2023 (Q3) | 89.5 | 15.2 | 1.15 |
Capitalization Strategy
DEA finances its acquisitions and developments through a combination of equity and debt. As of Q3 2023, the company has a debt-to-equity ratio of 1.1, indicating a balanced approach to leverage.
Investment Strategy
The company actively seeks to acquire properties that are leased to government tenants, aiming for a 7-8% return on investment. In 2023, DEA completed acquisitions totaling approximately $400 million.
Market Analysis
DEA operates in a highly regulated environment, benefiting from the stability offered by government contracts. According to industry reports, federal real estate demand is projected to grow by 3% annually through 2025, bolstering DEA's business model.
Future Outlook
The company anticipates continued growth in rental income, driven by the expansion of its property portfolio and favorable lease renewals. Analysts project that DEA will achieve a revenue target of $100 million by the end of 2024.
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