Easterly Government Properties, Inc. reports 2% to 3% core FFO growth due to focus on high-credit government tenants. Portfolio built for essential functions, like law enforcement. Strategic partnerships, like Virginia acquisition, maintain credit quality. Occupancy at 97%, 10-year lease terms. Target leverage profile of 6.0x for lower costs.

Full-year 2026 core FFO guidance of $3.05 to $3.12, assuming 3% growth. $50-100 million in gross development investment. Cash leverage expected to trend below 7.5x. Acquisition strategy targets $1 billion pipeline. Focus on 2027 renewals for future growth.

Recent acquisition of Virginia portfolio at 11% cash cap rate. FDA Atlanta delivery with reimbursements received. Development projects in progress. Management optimistic for 2026. Prioritizing assets with significant spreads to cost of capital.

Management optimistic for future public-private partnerships with new appointment. Focus on modernization and efficiency. Minimal impact from 2027 expiration. Long-term leases with primary state tenants. Demand for private sector facilities increasing for efficiency.

Budget cuts target waste, not mission-critical functions. Agencies seek high-quality, private sector facilities for efficiency. Emphasis on government reliance on private capital for modernization.

Read more at Yahoo Finance: Easterly Government Properties, Inc. Q4 2025 Earnings Call Summary