Easterly Government Properties Inc (DEA) Reports Solid 2023 Financial Results
Net Income: Reported $21.1 million for the full year, translating to $0.20 per share on a fully diluted basis.
Core FFO: Achieved $120.1 million, or $1.14 per share on a fully diluted basis for the year.
Acquisitions: Completed the acquisition of four properties with a total pro rata contractual purchase price of approximately $80.4 million.
Lease Renewals: Successfully renewed leases for 390,330 square feet with a weighted average term of 16.4 years.
Dividend: Maintained a quarterly cash dividend of $0.265 per share.
Debt Profile: Total indebtedness stood at approximately $1.3 billion with a weighted average interest rate of 4.2%.
Guidance: Introduced 2024 Core FFO per share guidance range of $1.14 - $1.16 on a fully diluted basis.
On February 27, 2024, Easterly Government Properties Inc (NYSE:DEA) released its 8-K filing, detailing its financial performance for the fourth quarter and full year ended December 31, 2023. The company, a real estate investment trust (REIT) specializing in the acquisition, development, and management of Class A commercial properties leased to U.S. government agencies, reported a net income of $21.1 million for the year, or $0.20 per share on a fully diluted basis. Core Funds from Operations (Core FFO) for the year was $120.1 million, or $1.14 per share on a fully diluted basis.
Financial Highlights and Operational Performance
Easterly Government Properties Inc (NYSE:DEA) showcased a year of strategic growth and operational efficiency. The company completed the acquisition of four properties, including a U.S. Department of Veterans Affairs outpatient clinic and a Class A workers compensation adjudication and training facility, among others. These acquisitions added 221,463 leased square feet to DEA's portfolio and came with a weighted average remaining lease term of 9.7 years.
The company also reported successful lease renewals totaling 390,330 square feet, reflecting a commitment to long-term occupancy and revenue stability. The weighted average lease term for these renewals stood at 16.4 years, underscoring the enduring nature of DEA's tenant relationships.
DEA maintained its quarterly cash dividend at $0.265 per share, demonstrating its ability to generate consistent shareholder returns. The company's balance sheet remained robust with total indebtedness of approximately $1.3 billion, a weighted average maturity of 4.6 years, and a weighted average interest rate of 4.2%.
Leadership and ESG Initiatives
The company announced leadership changes with Darrell W. Crate assuming the role of CEO and William H. Binnie becoming the Chairman of the Board of Directors. Additionally, DEA released its second annual Environmental Social Governance (ESG) Report, highlighting its commitment to sustainability and responsible corporate practices.
"Mission-critical buildings are essential to the work U.S. Government agencies do every single day," said Darrell Crate, Easterlys Chief Executive Officer. "Easterly has a definable edge in servicing our core tenants, and we remain focused on increasing our position in the public markets in 2024 and beyond."
Looking Ahead
For the 12 months ending December 31, 2024, Easterly Government Properties Inc (NYSE:DEA) has introduced guidance for Core FFO per share on a fully diluted basis in the range of $1.14 - $1.16. This guidance reflects management's confidence in the company's operational strategy and market position.
Easterly Government Properties Inc (NYSE:DEA) continues to demonstrate its ability to navigate the complexities of the real estate market, particularly within the specialized segment of government-leased properties. The company's solid financial results, strategic acquisitions, and stable lease renewals position it well for sustained growth and success in the coming year.
For a more detailed look at Easterly Government Properties Inc (NYSE:DEA)'s financials, including the full income statement and balance sheet, please visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Easterly Government Properties Inc for further details.
This article first appeared on GuruFocus.
