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Valued as a REIT (property company): Price to FFO and EV/EBITDA comparison.
ACCE opinionEasterly Government Properties Inc. Common Stock (DEA)
Fair value (2 models)
Not available
ACCE price target
$26.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Price used: $22.67 at the close on 23 Oct 2026, 22:00 CEST.
Models: EV/EBITDA comparison and Price to FFO.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
47
out of 100
Analysts
29% buy
7 covering
P/E
118.8x
forward 73.0x
1-year return
+1.3%
Dividend yield
8.14%
Easterly Government Properties Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Easterly Government Properties owns and manages office buildings leased mainly to US federal agencies, with the portfolio concentrated in Washington, D.C. and the surrounding region and in a smaller set of other government-leased sites. The structural case rests on the nature of the tenant: long-dated leases to the federal government carry low credit risk and tend to renew, which supports the 9.2% revenue growth and the 67.5% gross margin in the data. The near-term question is whether that top-line growth converts into earnings, since the 25.1% operating margin sits against a trailing P/E of 115.7 and an ROE of just 0.8%, so the bull case depends on rents and acquisitions flowing through to per-share results. At a roughly $1.1 billion market cap with a forward P/E of 73.0, the valuation is demanding for a company with thin current returns on equity, and the stock is not a constituent of any index in the data, which limits passive demand. The score of 48 out of 100 is weak, so this is a name to examine closely only if you already have a view on federal leasing durability and the path to earnings.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings falling sharply
Earnings are down 31.3% year on year while revenue grew 9.2%, so profit is not keeping pace with the top line. Net margin of 2.8% is thin.
high
Leverage and thin returns
Debt/Equity of 1.26 combined with ROE of just 0.8% means the balance sheet is carrying significant debt for very little return to shareholders.
moderate
Short interest elevated
Short interest stands at 6.5% of shares, a meaningful bearish position that could add volatility around any negative news.
moderate
Score down sharply in 90 days
The ACCE score fell from 55 to 47 over 90 days, with governance and momentum both at 40, signalling deteriorating fundamentals.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 9.2% over the past year, ahead of its 6.5% average annual pace over five years.
Free cash flow over the last twelve months reached $259M, and the 24.2% free cash flow yield suggests cash generation is strong against the share price.
The stock trades 12.8% below the ACCE price target of $26.00, and analysts' mean target of $25.36 sits 16.2% above the current price.
Why it could disappoint
Net margin of 2.8% and return on equity of 0.8% show very little profit reaches shareholders from the revenue.
Debt to equity of 1.26 is high, and the share count rose 8.6% last fiscal year, diluting existing holders.
The company missed earnings expectations, with EPS of 0.78 against 0.79 expected, and the trailing P/E of 114.8x looks stretched.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 26, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where DEA's valuation models land
Price
$22.67
Model fair valueConfidence: medium
$27.77
Model
Fair value
Upside
EV/EBITDA comparison
Price to FFO
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Quality
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