Easterly Government Properties, Inc. reported a total revenue of $336.1 million for the fiscal year ending December 31, 2025, marking a 11.3% increase from $302.1 million in the previous year. The growth in revenue was primarily driven by a $32.1 million rise in rental income, attributed to the acquisition of three operating properties since December 31, 2024, and a full year of operations from nine properties acquired in 2024. However, the company experienced a decline in tenant reimbursements, which fell by $0.7 million, and a notable increase in total expenses, which rose by $27.1 million to $252.3 million, largely due to higher property operating costs and depreciation expenses.
The company’s net income for 2025 was reported at $13.6 million, a decrease from $20.6 million in 2024. This decline was influenced by increased interest expenses, which rose by $12.0 million to $74.5 million, primarily due to fixed-rate senior unsecured notes issued in 2024 and 2025. Additionally, Easterly recognized a $2.5 million impairment loss related to the ICE – Otay property, which was written down to its estimated fair value. The company’s Funds From Operations (FFO) increased to $138.1 million, up from $124.0 million in the previous year, reflecting a strong operational performance despite the challenges faced.
Easterly continues to focus on strategic growth through acquisitions and development. In 2025, the company acquired several properties, including a facility leased to the District of Columbia Government and a laboratory for the Florida Department of Law Enforcement. As of December 31, 2025, Easterly owned 93 operating properties and had a total of 10 properties through an unconsolidated joint venture, encompassing approximately 10.4 million leased square feet, with an occupancy rate of 97%. The company aims to maintain its position as a partner of choice for U.S. Government agencies, with approximately 90% of its revenue derived from government leases.
Looking ahead, Easterly anticipates continued growth in rental income and operational stability, although it remains cautious about potential risks associated with its reliance on U.S. Government tenants, which account for 88.1% of its annualized lease income. The company is also mindful of the impact of economic conditions on occupancy levels and rental rates. As of December 31, 2025, Easterly had total indebtedness of approximately $1.7 billion, with a significant portion of its debt at fixed rates, providing some insulation against interest rate fluctuations. The company plans to leverage its existing cash balances, operating cash flow, and available borrowings to meet its liquidity needs and support future growth initiatives.
About Easterly Government Properties, Inc.
Easterly Government Properties, Inc. is a REIT specializing in acquiring, developing, and managing Class A office properties leased primarily to U.S. Government agencies. Its portfolio emphasizes mission-critical facilities with long-term leases, strong renewal history, and strategic locations. The company leverages industry expertise, relationships, and development experience to generate stable income, capital appreciation, and long-term value in the government real estate market.
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