Easterly Raises 2026 Core FFO Floor Again

The Tip Desk · November 8, 2026 · 3 min read

Core FFO was $0.78 a share in the third quarter as the REIT lifted the low end of its 2026 range to $3.08–$3.13 a share.

Easterly Government Properties (DEA), a real estate investment trust focused on Class A commercial properties leased to the U.S. government, raised the lower end of its full-year 2026 Core FFO guidance to a range of $3.08 to $3.13 a share on a fully diluted basis, after already lifting that outlook in the second-quarter release.

The company issued its first full-year 2027 Core FFO guidance of $3.09 to $3.17 a share, assuming about $50 million of wholly owned acquisitions and $25 million to $50 million of gross development-related investment during 2027. The 2026 outlook assumes about $50 million of wholly owned acquisitions and $50 million to $100 million of development-related investment.

Core FFO was $38.0 million, or $0.78 a share, in the third quarter, versus $37.4 million, or $0.78 a share, in the second quarter. Net income was $5.7 million, or $0.12 a share, versus $3.2 million, or $0.07 a share.

Total revenues were $93.6 million in the three months ended September 30, 2026, compared with $86.2 million a year earlier. Rental income was $90.0 million. Interest expense, net, was $20.0 million.

As of September 30, the company or its joint venture owned 106 operating properties encompassing about 10.7 million leased square feet, 98% leased, with a weighted average remaining lease term of 9.2 years, unchanged from June 30. The mix remained 93 properties leased primarily to U.S. government agencies, eight to state or local government agencies, and five entirely to private tenants.

The Fort Myers, Florida, Florida Department of Law Enforcement laboratory was completed after quarter-end and is leased under a 25-year lease. Flagstaff, Arizona, and Medford, Oregon, remained under construction, with expected 20-year GSA leases for the beneficial use of the United States Judiciary. In October, the company said all significant construction activities were completed at the Fort Myers facility.

The company used $6.4 million of available cash to extinguish the mortgage note on USFS II – Albuquerque. It amended its 2018 term loan and 2024 revolving credit facility to remove the credit spread adjustment on SOFR-based borrowings. It extended the lease at Various GSA – Chicago (FAA) through July 2027, with a firm term through April 2027, and renewed USCIS – Lincoln on a new 15-year lease with 10 years of firm term. It received full repayment of the $35.6 million Bedford construction loan, inclusive of accrued interest, in September, ahead of its scheduled August 2027 maturity.

Total indebtedness was about $1.7 billion at September 30, including $16.1 million on the revolver, $100.0 million on the 2016 term loan, $200.0 million on the 2018 term loan, $200.0 million on the 2026 term loan, $1.0 billion of senior unsecured notes, and $142.3 million of mortgage debt. Weighted average maturity was 3.8 years and weighted average interest rate 4.6%. Net debt to total enterprise value was 59.6%.

On October 22, the board approved a $0.45 a share cash dividend for the third quarter, payable November 20, 2026. The company entered into four interest rate swaps with an aggregate notional of $200.0 million.

President and CEO Darrell Crate said the government-focused portfolio continues to provide stability and durability despite broader market volatility.