Easterly Government Properties offers unique stability with 98% of tenants as U.S. government agencies and long-term contracts, but faces limited rent growth. The business model creates a strong moat, yet makes properties hard to repurpose or sell, increasing operational stickiness. Rising interest expenses and a recent 32% dividend cut, though justified, undermine confidence in the stock's income reliability.
DEA shares are oversold due to DOGE budget cut fears, now trading at a deep discount versus peers, offering a compelling entry point. DEA's core business—leasing mission-critical properties to the U.S. government—remains stable, with long-term leases and built-in inflation protection. The recent dividend cut, while unpopular, aligns payout ratios with industry best practices and ensures the 7.8% yield is sustainable.
High-yield stocks with recent price dips can offer value, but require careful analysis to avoid value traps from structural or balance sheet issues. I share two very sustainable 8-9% yields that look highly compelling after their recent dips. I detail why they offer mid to high teen annualized total return potential alongside relatively low long-term risk.
WPC, VICI and DEA stand out among Equity REITs with inflation-protected cash flow, solid assets and rising FFO outlooks.
The average of price targets set by Wall Street analysts indicates a potential upside of 29.6% in Easterly Government Properties (DEA). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Most stocks are negatively impacted by tariffs. But some specific REITs aren't. I present two tariff-resilient REITs that offer 8%+ dividend yields.
The consensus price target hints at a 35% upside potential for Easterly Government Properties (DEA). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
DEA's stock price has fallen substantially. Yet, its earnings power remains strong and growing. At the reduced price, the cash flow is opportunistic.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
REITs offer the highest dividend yields in a decade. Some yields as much as 12% and those dividends are rising. I present three of my favorite high-yielding REITs.
Easterly Government Properties, Inc. (NYSE:DEA ) Q1 2025 Earnings Conference Call April 29, 2025 11:00 AM ET Company Participants Lindsay Winterhalter - Head, Investor Relations Darrell Crate - President and Chief Executive Officer Allison Marino - Chief Financial Officer Conference Call Participants Seth Berge - Citi Peter Abramowitz - Jefferies Michael Carroll - RBC John Kim - BMO Capital Markets Operator Greetings. Welcome to Easterly Government Properties First Quarter 2025 Earnings Conference Call.
Government real estate owner Easterly Government Properties (DEA -3.40%) reported quarterly results that were roughly in line with expectations, but investors are still more focused on disappointing news the company released earlier in the month.