Easterly Government Properties: Become The Landlord Of The US Government With An 8% Dividend Yield

Summary

• Easterly Government Properties focuses on high-quality, government-leased Class A properties, ensuring stable cash flows and high occupancy rates.
• DEA's recent acquisitions and quarterly performance indicate decent FFO growth potential, with a steady 8% dividend yield that appears safe.
• Despite balance sheet risks, DEA's valuation is compelling trading below REIT peers, and so it offers a significant buying opportunity.
• The company's revenue and FFO growth, supported by long-term leases and inflation-linked rental structures, justify a 'buy' rating for income-oriented investors.

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Introduction

As central banks cut interest rates, I think REITs have become an interesting space to look for value. In particular, I look for high quality tenant profiles with potential for rental revenue growth over time.

One such

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.