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Easterly Q3 2026 Earnings Report
Easterly Government Properties reports 2.6% core FFO growth with $93.6M revenue and $3.08-$3.13 per share 2026 guidance.
In brief
Easterly Government Properties reports 2.6% core FFO growth with $93.6M revenue and $3.08-$3.13 per share 2026 guidance. Easterly achieved 2.6% year-over-year core FFO growth and raised 2026 guidance to $3.08-$3.13 per share while addressing FAA Chicago lease extension and Loma Linda loan maturity headwinds…
Q3 2026 Results
Easterly reported core FFO per share growth of 2.6% year over year to $0.78.
Revenue Growth
Total revenue reached $93.6 million, an 8.7% increase driven by acquisitions and lease renewals.
EBITDA Performance
EBITDA grew to $59 million, reflecting 8.9% year over year growth from $54.2 million.
Net Income
Net income per share was $0.12 on a fully diluted basis, up from $0.03 in Q3 2025.
2026 Guidance
2026 core FFO guidance raised to $3.08-$3.13 per share, an increase at the low end of previous range.
2027 Guidance
2027 core FFO guidance set at $3.09-$3.17 per share with midpoint implying 1% growth over 2026.
Portfolio Occupancy
Portfolio occupancy rate reached 98% with weighted average lease term of 9.2 years.
Dividend Payout
Dividend payout ratio reduced to 67% from 117% over three years with $32.8 million cash available for distribution.
Leverage Metrics
Net debt to annualized EBITDA improved to 7.1x from second quarter, targeting 6.5x or lower.
Acquisition Pipeline
Acquisition pipeline valued at $1.5 billion with 30% to 35% churn as seller expectations align.
FAA Chicago Extension
Nine-month lease extension executed with six months of firm term for incremental earnings in 2026 and 2027.
Loma Linda Loan
Loma Linda loan maturity expected to be addressed through refinancing or investment grade issuance.
Soft-Term Lease Exposure
Soft-term lease exposure reduced to 2.3% of annualized income from 5.2% at year-end 2024.
FDLE Facility
FDLE laboratory facility completed in October 2026 in Fort Myers, Florida after 15-month construction.
2027 Development Guidance
Expected $50 million of wholly owned acquisitions and $25-$50 million of gross development investment in 2027.
2027 Lease Renewals
Upcoming renewals expected to achieve net effective rent spreads in mid- to high teens with $35 tenant improvement capital.
What it means
Easterly achieved 2.6% year-over-year core FFO growth and raised 2026 guidance to $3.08-$3.13 per share while addressing FAA Chicago lease extension and Loma Linda loan maturity headwinds.
