Easterly Government Properties Reports Strong Q2 Earnings and Raises FFO Guidance

By Ahmed Jamerson • Monday, August 03 10:55 • Permanent Link

Easterly Government Properties reported second-quarter 2026 net income of $3.2 million, or $0.07 per diluted share, up from the prior period, while core FFO came in at $37.4 million, or $0.78 per diluted share.

For the first six months of 2026, net income was $4.6 million, or $0.10 per diluted share, and core FFO totaled $74.5 million, or $1.55 per diluted share.

The company raised full-year 2026 core FFO guidance to a range of $3.07 to $3.13 per diluted share, from the prior range of $3.05 to $3.11.

During the quarter, Easterly closed a new five-year $200 million senior unsecured term loan maturing in June 2031, with an accordion feature that could lift total capacity to $250 million. It also settled 796,943 shares through its at-the-market program at a weighted average price of $23.86 per share, generating about $18.8 million in net proceeds.

At June 30, 2026, the company owned 106 operating properties totaling about 10.7 million leased square feet. The portfolio was 98% leased, compared with 93 operating properties leased primarily to U.S. government agencies, eight leased primarily to state or local government agencies, and five fully leased to private tenants. Easterly also had three properties under development, expected to add about 0.2 million leased square feet.

The portfolio’s weighted average age was 17.1 years, and the weighted average remaining lease term was 9.2 years.

Total indebtedness stood at about $1.7 billion, including $43.1 million on the revolving credit facility, $100 million on the 2016 term loan, $200 million on the 2018 term loan, $200 million on the 2026 term loan, $1.0 billion of senior unsecured notes, and $149.3 million of mortgage debt. The debt stack carried a weighted average maturity of 4.0 years and a weighted average interest rate of 4.6%. Net debt to total enterprise value was 58.4%, and adjusted net debt to annualized quarterly EBITDA was 7.1x.

The board approved a second-quarter dividend of $0.45 per share, payable Aug. 20 to shareholders of record Aug. 10.

After quarter-end, the company used $6.4 million of cash to extinguish the mortgage note on USFS II — Albuquerque. Today the company's shares have moved 2.01% to a price of $24.85. Check out the company's full 8-K submission here.

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