Easterly Government Properties, Inc. (DEA) Bundle
An Overview of Easterly Government Properties, Inc. (DEA)
General Summary of the Company
Easterly Government Properties, Inc. (DEA) is a real estate investment trust (REIT) focused on acquiring, developing, and managing properties leased to the U.S. government and other governmental entities. Established in 2014, the company has rapidly expanded its portfolio, primarily catering to the needs of federal agencies.
As of 2024, DEA operates a diversified portfolio of 95 properties, with approximately 9.3 million square feet of total leased space. The properties are predominantly leased to federal government agencies, accounting for approximately 96.4% of total annualized lease income. The company’s focus on mission-critical facilities positions it strategically within the government real estate sector.
In terms of sales, DEA reported total revenues of $223.8 million for the nine months ended September 30, 2024, reflecting an increase from $214.6 million during the same period in 2023.
Company's Financial Performance in the Latest Financial Reports
In the latest financial reporting period, Easterly Government Properties demonstrated strong financial performance. For the nine months ended September 30, 2024, total revenues increased by $9.2 million compared to the previous year, driven primarily by a significant rise in rental income, which grew by $11.4 million to $215.5 million. This growth was largely attributed to the acquisition of seven operating properties since September 30, 2023.
The company reported net income of $14.8 million for the nine months ended September 30, 2024, down from $16.3 million in the same period in 2023. The decrease in net income was influenced by increased interest expenses, which rose by $9.5 million due to new fixed-rate, senior unsecured notes and higher average interest rates.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Total Revenues | $223.8 million | $214.6 million | $9.2 million |
| Rental Income | $215.5 million | $204.1 million | $11.4 million |
| Net Income | $14.8 million | $16.3 million | ($1.5 million) |
| Interest Expense | $45.2 million | $35.7 million | $9.5 million |
Introduction to Company as One of the Leaders in the Industry
Easterly Government Properties has established itself as a leader in the government real estate sector through its strategic focus on acquiring properties leased to federal agencies. With a well-diversified portfolio that caters to essential government functions, DEA benefits from the stability and reliability associated with government tenants.
The company’s strong financial foundation, highlighted by its record-breaking revenue growth and strategic acquisitions, positions it favorably within the industry. As of September 30, 2024, DEA's properties were 97% leased, showcasing its operational efficiency and strong demand for government-leased real estate.
DEA continues to explore opportunities for growth and expansion, making it a compelling option for investors looking to understand the dynamics of the government real estate market.
Mission Statement of Easterly Government Properties, Inc. (DEA)
Mission Statement of Easterly Government Properties, Inc. (DEA)
Easterly Government Properties, Inc. (DEA) is dedicated to delivering high-quality real estate solutions that support the operational missions of government agencies. The company's mission statement underlines its commitment to providing exceptional service and maintaining a portfolio of properties that meet the needs of its tenants, primarily federal government agencies.
Core Component 1: Commitment to Quality
The first core component of DEA's mission statement emphasizes a strong commitment to quality. The company strives to ensure that all properties in its portfolio meet stringent quality standards. As of September 30, 2024, DEA's portfolio included 95 operating properties, with a weighted average age of approximately 14.8 years. The average annualized lease income per leased square foot was $35.92.
| Metric | Value |
|---|---|
| Total Operating Properties | 95 |
| Weighted Average Age of Properties | 14.8 years |
| Average Annualized Lease Income per Leased Square Foot | $35.92 |
Core Component 2: Service Excellence
The second core component focuses on service excellence. DEA aims to provide outstanding customer service to its tenants, ensuring their operational needs are met efficiently. The company recorded total revenues of $74.8 million for the three months ended September 30, 2024, an increase of $2.8 million compared to the same period in 2023. This growth reflects DEA's ability to adapt and respond to tenant needs effectively.
Core Component 3: Strategic Partnerships
The third core component is the establishment of strategic partnerships. DEA primarily leases its properties to the U.S. Government, which accounted for approximately 96.4% of total annualized lease income as of September 30, 2024. This strong reliance on government contracts highlights the company's focus on building long-term relationships that foster stability and growth.
| Tenant Type | Percentage of Annualized Lease Income |
|---|---|
| U.S. Government | 96.4% |
| State and Local Government | 1.1% |
| Non-Governmental Tenants | 2.5% |
In conclusion, the mission statement of Easterly Government Properties, Inc. is a reflection of its core values and objectives, emphasizing quality, service excellence, and strategic partnerships that drive the company's long-term success in the government real estate market.
Vision Statement of Easterly Government Properties, Inc. (DEA)
Vision Statement Overview
The vision statement of Easterly Government Properties, Inc. (DEA) focuses on becoming the premier provider of government-leased properties, emphasizing long-term partnerships with federal agencies and delivering value to stakeholders.
Commitment to Government Partnerships
Easterly aims to enhance its standing as a trusted partner for U.S. government agencies. As of September 30, 2024, DEA's portfolio includes 130 properties, with 97% leased to government tenants, demonstrating a strong commitment to serving federal requirements.
Focus on Sustainable Growth
The company plans to achieve sustainable growth by acquiring and developing properties that meet the evolving needs of government agencies. For instance, DEA acquired a 193,100 square foot Veteran Affairs outpatient facility in Jacksonville, Florida, in August 2024, which is leased to the VA until 2043.
Financial Performance and Stability
Easterly Government Properties reported total revenues of $74.8 million for the three months ended September 30, 2024, an increase of $2.8 million from the previous year. This growth is attributed to a $4.3 million increase in rental income, primarily from seven new operating properties acquired since September 30, 2023.
Innovative Solutions for Tenant Needs
The vision includes delivering innovative solutions that fulfill the specific requirements of government tenants. As of September 30, 2024, DEA's properties had a weighted average annualized lease income of $35.92 per leased square foot.
Table: DEA Portfolio Snapshot (as of September 30, 2024)
| Property Type | Number of Properties | Total Leased Square Feet | Annualized Lease Income | Percentage of Total Income | Average Lease Term (Years) |
|---|---|---|---|---|---|
| Wholly Owned U.S. Government Leased Properties | 130 | 9,330,122 | $335,124,106 | 100% | 14.8 |
| Unconsolidated Real Estate Ventures | 10 | 1,214,165 | $50,242,258 | 15.1% | Average varies |
Long-term Vision for Stakeholders
Easterly is committed to maximizing shareholder value through prudent management and strategic acquisitions. The company anticipates distributing all taxable income to maintain its REIT status, projecting dividends of $0.265 per share for Q3 2024.
Future Development Plans
DEA's future development plans include a 50,777 square foot federal courthouse in Flagstaff, Arizona, expected to be leased to the Judiciary of the U.S. Government. The ongoing commitment to developing properties that serve critical government functions is a cornerstone of its vision.
Core Values of Easterly Government Properties, Inc. (DEA)
Integrity
Integrity is a cornerstone of Easterly Government Properties, Inc. (DEA). The company emphasizes honesty and transparency in all its dealings, ensuring trust with stakeholders, tenants, and partners.
As of 2024, DEA has maintained a strict ethical standard in its operations, which is reflected in its financial reporting and compliance practices. The company’s adherence to regulatory requirements and commitment to ethical business practices has been recognized through its successful audits and lack of regulatory penalties.
Commitment to Excellence
DEA strives for excellence in its property management and service delivery. This commitment is demonstrated through the meticulous selection of properties and rigorous maintenance standards.
As of September 30, 2024, DEA's properties were 97% leased, showcasing its effective management and operational excellence. The weighted average annualized lease income per leased square foot was $35.92, indicating a robust income generation from its real estate portfolio.
Accountability
Accountability at DEA means that the company takes responsibility for its actions and decisions. This value is critical in maintaining investor confidence and ensuring that the company meets its commitments.
In 2024, DEA reported a net income of $14.8 million for the nine months ended September 30, reflecting its strong operational performance. The company has also committed to distributing at least 90% of its REIT taxable income, fulfilling its obligations to shareholders.
Collaboration
Collaboration is essential for DEA as it works closely with various stakeholders, including government agencies and contractors. This value enhances operational efficiency and fosters innovation.
DEA's joint ventures, such as the 53% ownership in the VA Portfolio, exemplify its collaborative approach. The portfolio consists of ten properties leased to the VA, acquired for $77.4 million, enhancing DEA's footprint in the government leasing sector.
Community Focus
DEA is dedicated to contributing positively to the communities it serves. This focus ensures that the company not only meets its business objectives but also supports social responsibility initiatives.
As part of its community engagement, DEA has invested in properties that serve critical government functions, thereby enhancing public service delivery. Its portfolio includes facilities such as outpatient clinics and courthouses that directly benefit local communities.
| Core Value | Description | 2024 Metrics |
|---|---|---|
| Integrity | Commitment to ethical standards and transparency. | No regulatory penalties; successful audits. |
| Commitment to Excellence | Striving for high standards in property management. | 97% leased properties; $35.92 lease income per sqft. |
| Accountability | Taking responsibility for actions and commitments. | $14.8 million net income; 90% taxable income distribution. |
| Collaboration | Working with stakeholders for efficiency and innovation. | 53% ownership in VA Portfolio; $77.4 million acquisition. |
| Community Focus | Contributing positively to local communities. | Investments in government-serving facilities. |
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Resources:
- Easterly Government Properties, Inc. (DEA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Easterly Government Properties, Inc. (DEA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Easterly Government Properties, Inc. (DEA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.