Easterly Government Properties Reports $302.1 Million Revenue for Fiscal Year 2024

Easterly Government Properties, Inc. reported a total revenue of $302.1 million for the fiscal year ending December 31, 2024, marking an increase of $14.8 million from $287.2 million in the previous year. The growth in revenue was primarily driven by a $15.7 million rise in rental income, attributed to the acquisition of nine operating properties since December 31, 2023, and a full year of operations from three properties acquired in 2023. However, tenant reimbursements decreased by $2.4 million, reflecting a reduction in tenant project reimbursements. The company’s net income for the year was $20.6 million, slightly down from $21.1 million in 2023.

In terms of operational metrics, Easterly owned 90 operating properties and had an additional ten properties through an unconsolidated joint venture, totaling approximately 9.7 million leased square feet. The portfolio was 97% leased as of December 31, 2024, with a weighted average annualized lease income per leased square foot of $35.60. The company’s tenant base remains heavily reliant on U.S. Government agencies, which accounted for 93.3% of annualized lease income. Notably, the Department of Veteran Affairs, Federal Bureau of Investigation, and Drug Enforcement Administration were significant contributors, representing a combined 44.9% of total leased square feet.

Strategically, Easterly has been active in acquisitions, completing several significant transactions throughout 2024. These included the purchase of a 129,046 square foot facility for the U.S. Immigration and Customs Enforcement in Texas and a 295,253 square foot campus leased primarily to the Wake County Public School System. The company also engaged in development activities, acquiring land for a new federal courthouse in Flagstaff, Arizona, which is expected to be leased to the Judiciary of the U.S. Government.

Easterly's financial position remains robust, with total indebtedness of approximately $1.6 billion as of December 31, 2024. The company has access to a $400 million revolving credit facility, of which $125.3 million was available at year-end. The firm’s capital structure is designed to support future growth, with plans to continue pursuing acquisitions and development opportunities. However, the company faces risks associated with its dependence on U.S. Government tenants, potential changes in government spending, and market conditions that could impact occupancy rates and rental income.

Looking ahead, Easterly anticipates continued growth in rental income and operational stability, supported by its strategic focus on government-leased properties. The company aims to maintain its REIT status by distributing at least 90% of its taxable income to shareholders, while also managing its debt levels and capital expenditures prudently. The outlook remains cautiously optimistic, contingent on the broader economic environment and government budgetary decisions.