DEA earnings analysis
What we found in DEA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
DEA delivered Q2 revenue growth of 9.7% to $92.417 million, supported by acquired and newly placed-in-service properties, while portfolio occupancy remained 98%. However, GAAP net income fell 25.8% to $3.158 million and calculated operating margin contracted to 23.8% as depreciation, G&A and interest costs increased. Operating cash flow improved to $71.916 million for the first half, but $109.043 million of investing outflows and $1.707 billion of debt keep the overall setup balanced rather than decisively positive.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Rental income drove 9.7% revenue growth
- Q2 revenue rose $8.183 million, or 9.7%, year over year to $92.417 million from $84.234 million, led by a $9.292 million increase in rental income to $89.659 million. Management attributed rental growth primarily to four acquired operating properties, one development property placed into service, and a full-period contribution from two prior-year acquisitions.
- High occupancy supports recurring rent base
- The portfolio was 98% leased at June 30, 2026, with $394.018 million of annualized lease income across 10.729 million leased square feet. Properties leased primarily to U.S. government agencies represented $293.580 million, or 74.5%, of annualized lease income.
- Operating cash flow improved 15.4%
- Net cash from operating activities increased $9.618 million to $71.916 million for the first six months of 2026, from $62.298 million a year earlier. Rental activities net of expenses generated $61.5 million, while distributions from the unconsolidated JV added $8.0 million.
- Revolver capacity and new term loan bolster liquidity
- Liquidity included $3.3 million of cash, $10.4 million of restricted cash, and $356.8 million of unused capacity under the $400.0 million revolving facility at June 30, 2026. The company also completed a $200.0 million unsecured term loan facility maturing June 25, 2031.
- Core FFO increased year over year
- Core FFO increased to $37.351 million in Q2 2026 from $34.592 million in Q2 2025, while FFO increased to $37.331 million from $34.816 million. The improvement occurred despite lower GAAP net income.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- GAAP earnings and operating margin declined
- GAAP net income declined $1.096 million, or 25.8%, to $3.158 million from $4.254 million a year earlier. Calculated operating margin fell to 23.8% from 25.4% as total expenses rose $7.570 million, nearly matching the $8.183 million revenue increase.
- Higher borrowing costs and sizable debt load
- Net interest expense increased $1.463 million year over year to $20.423 million in Q2, which management attributed to higher weighted-average borrowings. Total debt was $1.707 billion net at June 30, 2026, with a 4.0-year weighted-average maturity and $243.1 million, or 14.2%, at variable SOFR-based rates.
- Capital spending exceeded operating cash flow
- Investing cash outflow was $109.043 million in the first half, including $44.5 million for development, $43.5 million for acquisitions and deposits, and $14.7 million for operating-property additions, exceeding $71.916 million of operating cash flow. This investment pace required $200.0 million of new term-loan draws and $21.2 million of gross equity issuance.
- Government concentration and soft-term exposure
- Eight U.S. government tenants representing approximately 4.0% of leased square feet and 4.3% of annualized lease income have soft-term provisions that permit termination before stated expiration. In addition, the company generates over 85% of revenue from U.S. government agencies, creating meaningful tenant-sector concentration.
- No formal risk update, but maturities remain
- Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. Nevertheless, near-term refinancing remains relevant: $6.4 million of cash was used after quarter-end to extinguish the USFS II–Albuquerque mortgage, and the $95.0 million 2017 Series A senior notes mature in May 2027.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.07
- Operating margin
- 23.8%
What they said about what is next.
The 10-Q does not provide quantitative earnings or revenue guidance. Management states that available liquidity and cash flow are anticipated to fund expected needs for the next 12 months, including development, acquisitions, debt service and distributions.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 27, 2026
- Easterly reported Q1 2026 total revenues of $91,545,000, up $12,870,000 (+16.4%) versus Q1 2025, driven by rental income from six acquired operating properties and one development placed in service. GAAP net income fell…
- 10-K · February 23, 2026
- Easterly Government Properties positions itself as a specialist REIT focused on Class A, mission-critical properties leased to U.S. Government agencies, pursuing acquisitions, build-to-suit development and lease…
- 10-Q · August 5, 2025
- Easterly reported quarterly revenue of $84.234 million, up $8.013 million versus Q2 2024, driven by property acquisitions; net income fell to $4.254 million (down $0.596 million). Occupancy remained strong at 97% and…
- 10-Q · April 29, 2025
- Easterly reported higher revenue quarter-over-quarter with total revenues of $78,675 (amounts in thousands) for the three months ended March 31, 2025, up $5,875 from $72,800 in 2024, but net income fell to $3,283…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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