Easterly Government Properties Reports 10.5% Revenue Growth in Q2 2025

Easterly Government Properties, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $84.2 million, a 10.5% increase from $76.2 million in the same period last year. The growth in revenue was primarily driven by an $8.2 million increase in rental income, which rose to $80.4 million, attributed to the acquisition of eight operating properties since June 2024. However, tenant reimbursements decreased by $0.9 million to $1.9 million, reflecting a decline in project reimbursements. The company’s net income for the quarter was $4.3 million, down from $4.9 million a year earlier, resulting in a diluted earnings per share of $0.09, compared to $0.11 in the prior year.

For the first half of 2025, Easterly reported total revenues of $162.9 million, up from $149.0 million in the same period of 2024. The increase was again largely due to rental income, which rose by $13.0 million. Total expenses for the six months ended June 30, 2025, increased to $121.7 million from $113.1 million, driven by higher property operating expenses and depreciation costs associated with the newly acquired properties. The company’s net income for the first half of 2025 was $7.5 million, down from $9.7 million in the previous year.

In terms of strategic developments, Easterly Government Properties completed two significant acquisitions during the first half of 2025, including a facility leased to the District of Columbia Government and a Department of Homeland Security facility in Vermont, totaling approximately $140.9 million. The company also acquired land for development projects in Fort Myers, Florida, and Medford, Oregon, which are expected to enhance its portfolio of government-leased properties. As of June 30, 2025, the company owned 92 operating properties and had a 53% interest in a joint venture with ten additional properties, maintaining a high occupancy rate of 97%.

Easterly's balance sheet showed total assets of $3.36 billion as of June 30, 2025, an increase from $3.22 billion at the end of 2024. The company’s total liabilities also rose to $1.97 billion, up from $1.84 billion, primarily due to increased borrowings to finance acquisitions. The company’s equity stood at $1.39 billion, reflecting a slight decrease from $1.39 billion at the end of the previous year. The company declared a dividend of $0.45 per share for the second quarter, consistent with its previous dividend policy.

Looking ahead, Easterly Government Properties anticipates continued growth driven by its strategic acquisitions and development projects. The company expects to leverage its strong relationships with U.S. government agencies to secure long-term leases, which are critical to its revenue generation. Management remains focused on maintaining a robust portfolio of government-leased properties while navigating market conditions and potential economic challenges.