Easterly Government Properties

Easterly buys and manages office buildings that it rents out to U.S. government agencies. This helps important government groups find high-quality spaces to do their work. The company makes money by collecting rent from these stable, long-term tenants.

Who Uses These Buildings?

• U.S. Government Leased Properties: Buildings rented to federal agencies like the FBI or VA; accounts for 86.2% of annualized lease income.
• State and Local Government Properties: Office spaces used by state or city agencies; represents 8.4% of annualized lease income.
• Privately Leased Properties: Commercial spaces rented to private companies; makes up 5.4% of annualized lease income.
• Development Services: Custom building projects designed for specific government missions; includes 0.2 million square feet currently under construction.

Building the Portfolio

• Acquired a three-building campus in Glen Allen, Virginia in January 2026 for a total price of $44.6 million.
• Formed the MedBase Venture joint venture in October 2021 to fund the purchase of ten properties.
• Entered a construction loan agreement in August 2024 to lend up to $52.1 million to a developer.
• Started a mezzanine construction loan in March 2026 for $7 million to support a developer project.

What Makes the Model Work

Easterly focuses on Class A properties, which are high-quality buildings with modern systems and prime locations. Most facilities are custom-built for the tenant, making it difficult for government agencies to move to other locations.

Tracking the Financial Growth

• Total revenue reached $91.5 million in Q1 2026, up 16.4% from the $78.7 million reported in Q1 2025.
• Operating cash flow hit $27.3 million in Q1 2026, representing a 13% increase over the previous year.
• Net income was $1.4 million in Q1 2026, down 56.3% from $3.1 million in Q1 2025.
• Total assets grew to $3.4 billion as of March 31, 2026, up from $3.38 billion at the end of 2025.
• The company owned 96 wholly owned operating properties that were 97% leased as of March 31, 2026.

The Long-Term View

Easterly has evolved into a specialized manager of government-leased real estate. Its strategy relies on the high credit quality of federal tenants and the essential nature of their missions.