Easterly Government Properties Announces Quarterly Dividend

Rhea-AI Summary

Easterly Government Properties, Inc. (NYSE: DEA) declares a quarterly cash dividend of $0.265 per common share, offering investors a 9% anticipated annual dividend yield. With over 97% of lease income backed by the US Government, the company shows dividend resiliency and a stable investment opportunity.

Insights

Financial Analyst

The announcement by Easterly Government Properties, Inc. regarding the approval of a quarterly cash dividend of $0.265 per common share is a strategic move that signals confidence in the company's cash flow stability. With the lease income being backed by the full faith and credit of the U.S. Government, the risk of default is significantly reduced. This assurance of stable cash flows is critical for dividend-paying companies, as it provides a predictable source of funds to support dividend payouts.

Investors often seek out REITs like DEA for their income-generating potential and the 9% anticipated annual dividend yield, based on the closing stock price on a specific date, is particularly attractive in the current investment climate, where safe income streams are highly valued. However, it is important to note that yields can fluctuate with stock price movements and are not guaranteed. Investors should monitor the stock's performance and the broader market conditions to ensure the sustainability of these yields.

Market Research Analyst

REITs such as Easterly Government Properties often attract a specific investor demographic looking for stable, income-producing assets. The company's focus on properties leased to U.S. Government agencies can be seen as a defensive investment strategy, especially in volatile economic times. The resilience of DEA's dividend, supported by government-backed lease income, may position it favorably among competitors within the REIT sector.

However, potential investors should consider the growth prospects of such an investment. While the security of government leases is a strong point, the growth in dividend payouts may be limited compared to REITs investing in high-growth sectors. The 9% yield is attractive but should be weighed against the total return potential, including both income and capital appreciation aspects.

Real Estate Investment Expert

The specificity of Easterly Government Properties' portfolio, being primarily leased to U.S. Government agencies, offers a unique value proposition. The 'Class A' designation of their commercial properties indicates high-quality buildings in prime locations, which typically command higher rents and have lower vacancy rates. However, investors should be aware of the unique risks associated with government-tenanted properties, such as the potential for changes in government spending and policy, which could impact the long-term stability of these assets.

Additionally, the real estate market is subject to cycles and while government leases provide a buffer, they are not immune to broader market downturns. Investors should consider the company's ability to maintain and grow its asset base in the face of such cycles, as well as its management's track record in navigating these challenges.

~ Contractual cash flows with over 97% of annualized lease income backed by the full faith and credit of the US Government creates dividend resiliency and an opportunity for investors to currently earn a roughly 9% anticipated annual dividend yield on investment* ~

WASHINGTON--(BUSINESS WIRE)-- Easterly Government Properties, Inc. (NYSE: DEA), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to U.S. Government agencies, announced today that its Board of Directors has approved a quarterly cash dividend of $0.265 per common share. The dividend will be payable on March 18, 2024 to shareholders of record on March 6, 2024.

*Anticipated annual dividend yield on investment is based on DEA’s closing stock price on the NYSE on February 20, 2024, and an annualized quarterly cash dividend of $0.265 per common share.

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 28, 2023. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222890363/en/

Easterly Government Properties, Inc.

Lindsay S. Winterhalter

Senior Vice President, Investor Relations & Operations

202-596-3947

IR@easterlyreit.com

Source: Easterly Government Properties, Inc.

FAQ

What is the quarterly cash dividend declared by Easterly Government Properties, Inc. (NYSE: DEA)?

Easterly Government Properties, Inc. (NYSE: DEA) has approved a quarterly cash dividend of $0.265 per common share.

When will the dividend be payable to shareholders of Easterly Government Properties, Inc. (NYSE: DEA)?

The dividend will be payable on March 18, 2024, to shareholders of record on March 6, 2024.

What is the anticipated annual dividend yield on investment for Easterly Government Properties, Inc. (NYSE: DEA)?

Investors can currently earn a roughly 9% anticipated annual dividend yield on investment based on DEA’s closing stock price on the NYSE on February 20, 2024, and an annualized quarterly cash dividend of $0.265 per common share.