Core FFO per share was $0.77 in This fall (almost +6% YoY) and $2.99 for full-year 2025 (≈+3% YoY); occupancy is close to historic highs at 97% and Money Accessible for Distribution was $29.1M for This fall and $118.8M for the yr.
2026 steering of $3.05–$3.12 per share (about 3% development on the midpoint) was reaffirmed as administration pursues its 2%–3% annual Core FFO/share goal, supported by renewals, growth deliveries (together with the finished FDA Atlanta) and diversification into state, native and authorities‑adjoining tenants.
Stability sheet and M&A: Easterly closed a $44.5M, three-asset Virginia acquisition at ~11% money cap (accretive), reported money leverage of seven.5x with a medium-term goal of ~6x, and mentioned its acquisition pipeline totals ~$1.5B whereas planning $50–$100M of growth spend and ~$50M of acquisitions in 2026.
Easterly Authorities Properties (NYSE:DEA) reported fourth-quarter and full-year 2025 outcomes that administration mentioned mirror continued execution on its technique of producing regular Core FFO per share development supported by mission-critical authorities tenancy, disciplined capital allocation, and a deal with stability sheet enchancment.
President and CEO Darrell Crate mentioned 2025 marked “one other yr of delivering 2%-3% core FFO per share development,” and added that the midpoint of the corporate’s 2026 steering implies a 3rd consecutive yr of a minimum of 2%-3% Core FFO per share development. Crate reiterated Easterly’s strategic priorities:
Core FFO development per share of two%-3% yearly
Enhancing same-store efficiency via diversification into state, native, and “excessive credit score government-adjacent” tenants
Pursuing growth alternatives that create stabilized, high-credit property
Crate described Easterly’s portfolio as mission-critical services comparable to courthouses, public well being laboratories, legislation enforcement workplaces, and safe administrative buildings. He mentioned portfolio efficiency remained sturdy, citing occupancy close to historic highs at 97% and weighted common lease phrases of roughly a decade.
Trying to 2026, Crate mentioned current federal developments “particularly DOGE, are within the rearview mirror and didn’t change how our portfolio performs or how we function the enterprise,” and famous the corporate is guiding to roughly 3% Core FFO per share development on the midpoint. He additionally mentioned ongoing federal actual property discussions proceed to assist the case for companies specializing in mission execution quite than proudly owning and managing specialised services, which he mentioned could be complicated to modernize and function.
Chief Monetary Officer Allison Marino mentioned that for the fourth quarter of 2025, internet earnings per share on a completely diluted foundation was $0.10, whereas Core FFO per share elevated by almost 6% year-over-year to $0.77. Money Accessible for Distribution totaled $29.1 million for the quarter.
For the total yr, Marino reported internet earnings per share of $0.29 and Core FFO per share of $2.99, representing almost 3% year-over-year development. Full-year Money Accessible for Distribution was $118.8 million.
Marino mentioned that after quarter finish the corporate prolonged the lease at FBI Knoxville and executed a long-term renewal on FBI San Antonio. With most 2026 renewals already accomplished, she mentioned the corporate has begun shifting focus to 2027.
As of December 31, 2025, Easterly had renewed 38 leases since its IPO, totaling 2.6 million sq. toes. Marino mentioned 27 of these renewals had no related tenant enchancment (TI) work or had TI work accomplished and accepted by the federal government, whereas 11 renewals had pending TI tasks. She cited examples within the renewal set together with PTO Arlington, IRS Fresno, and smaller leases in Buffalo.
Marino additionally supplied element on lease spreads: excluding sure property, the common lease unfold anticipated on the remaining renewals was 14%, together with an estimated $37.14 per sq. foot of TI utilized by the federal government. The weighted common complete renewal time period on these leases was 15.7 years. She mentioned the corporate views this as a helpful proxy for the way it thinks about renewals going ahead.
Within the Q&A portion of the decision, administration mentioned it continues to focus on mid-90s occupancy over time. On 2027 expirations, Marino mentioned procurement has begun consistent with typical lead instances of 18 to 24 months and added the corporate has “no issues.”
Marino mentioned Easterly’s growth portfolio continued to progress as anticipated. The corporate broke floor within the third quarter on a State Crime Lab in Fort Myers, Florida, with supply focused for the fourth quarter of 2026. A U.S. Courthouse in Flagstaff, Arizona is below development with supply anticipated within the first quarter of 2027, and development started within the fourth quarter on a beforehand introduced U.S. Courthouse in Medford, Oregon, scheduled for supply within the second half of 2027. Marino mentioned the three tasks complete 200,000 rentable sq. toes and are anticipated to ship high-credit money flows.
The corporate’s largest undertaking to this point, the FDA Atlanta facility, was accomplished and formally delivered to the federal government on December 15. Marino mentioned that as of December 31, 2025, Easterly had acquired $138.1 million in lump-sum reimbursements associated to the undertaking, and it subsequently acquired one other $12.6 million earlier within the week of the decision, with roughly one other $3 million anticipated over the following few months.
On acquisitions, Marino mentioned Easterly accomplished the acquisition of a three-asset portfolio in Virginia for $44.5 million, totaling about 298,000 sq. toes. She mentioned the Commonwealth of Virginia occupies the vast majority of the portfolio below long-dated leases that embrace 2.5% annual lease escalations, and the portfolio’s weighted common lease time period is seven and a half years. The acquisition was accomplished at a going-in money cap charge of roughly 11%, which Marino mentioned is instantly accretive and above the corporate’s value of capital, with the pricing influenced by a motivated vendor and Easterly’s means to execute an all-cash bid.
Throughout Q&A, Marino addressed an analyst query a couple of 2027 lease expiration proven in disclosures, saying it represented about 2,000 sq. toes and was “very immaterial.” She added that the 2 buildings with the most important Virginia tenancy had lease expirations in 2034 and 2036.
On the stability sheet, Marino mentioned money leverage—outlined as internet debt to annualized quarterly EBITDA—was 7.5x, and she or he expects remaining FDA Atlanta reimbursements to additional enhance the measure. Crate reiterated a medium-term leverage goal of roughly 6x and mentioned leverage is a crucial element of bettering the corporate’s value of capital.
For 2026, Marino mentioned the corporate is sustaining its Core FFO per share steering vary of $3.05 to $3.12, which suggests about 3% development on the midpoint. She mentioned the outlook is supported by the supply of FDA Atlanta, renewal execution in 2025 and 2026, operational efficiencies, and the Virginia acquisition. On the midpoint, steering assumes $50 million to $100 million of gross development-related funding and $50 million in wholly owned acquisitions. Marino additionally famous the corporate’s acquisition pipeline totals $1.5 billion and mentioned Easterly is monitoring the marketplace for alternatives that preserve a selection to its value of capital.
In closing remarks, Crate mentioned administration is “very enthusiastic about 2026” and expects to supply additional updates in coming quarters.
Easterly Authorities Properties, Inc is an actual property funding belief that focuses on the acquisition, growth and administration of economic properties leased to U.S. authorities companies. Structured as a triple-net lease REIT, the corporate focuses on single-tenant property with long-term, credit-backed leases that switch most property-level tasks—together with taxes, insurance coverage and upkeep—to its authorities tenants.
The agency’s portfolio encompasses quite a lot of facility varieties, together with workplace buildings, coaching facilities, laboratories and mission-critical installations utilized by federal companies.
