Easterly Government Properties Stock Earnings Reports

Easterly Government Properties reported strong Q1 2026 results driven by acquisitions, contractual rent growth and high portfolio occupancy (97%) with a weighted average lease term of ~9.4 years. Total revenue rose 16% YoY to $91.5M; EBITDA grew ~12% to $57.3M. FFO per share increased to $0.76 (from $0.71) and Core FFO per share to $0.77 (from $0.73). Cash available for distribution was ~$32.2M. Management completed a $7M mezzanine loan to finance a VA outpatient clinic (expected 12% yield, VA 20-year lease commitment) and signaled that mezzanine lending could expand to ~ $30M over the next 18 months as a way to access development pipeline and preserve optionality to acquire completed assets (ROFR/ROFO in place). Development pipeline (~$1.5B) remains intact with key projects (Fort Myers lab, Flagstaff and Medford courthouses) on the delivery schedule (2026–2027). Adjusted net debt to annualized pro forma EBITDA was 7.3x this quarter; management is focused on disciplined capital allocation, deleveraging and pursuing an investment-grade credit rating targeted for 2027. Full-year FFO guidance low end was raised by $0.10 to a revised range (midpoint and exact upper/lower not quoted on the call), and the company reiterated a long-term FFO growth target of 2–3% annually. Management emphasized the mission-critical, government-backed nature of the portfolio that produces durable, high-credit cash flows and multiple capital-allocation levers (wholly owned acquisitions, JVs, development, mezzanine lending) to drive accretive growth when cost of capital is appropriate.