WASHINGTON - Easterly Government Properties , Inc. (NYSE: NYSE:DEA), a real estate investment trust (REIT) specializing in properties leased to U.S.
Government agencies, has announced the acquisition of two Orlando-based Department of Homeland Security (DHS) facilities, leading to an increase in its full-year 2024 Core Funds From Operations (FFO) per share guidance. The company now projects a Core FFO per share on a fully diluted basis to range between $1.15 and $1.17.
The first property, HSI - Orlando, encompasses 27,840 square feet and is fully leased to Homeland Security Investigations (HSI) under a 15-year lease that extends until March 2036.
The facility, which Easterly acquired on Tuesday, also hosts the Central Florida Intelligence Exchange, a critical fusion center supporting multiple federal, state, and local agencies across nine counties.
The second property, ICE (NYSE:ICE) - Orlando, is a 49,420 square foot facility entirely leased to U.S. Immigration and Customs Enforcement (ICE) with a 20-year lease that does not expire until August 2040. Easterly is in the process of acquiring this facility, with the transaction expected to close later this month, subject to standard closing conditions.
This strategic expansion is part of Easterly's external growth strategy, focusing on mission-critical government real estate. Darrell Crate, Easterly’s CEO, expressed confidence in the company's positioning to deliver long-term growth for shareholders as a result of these acquisitions.
Following these acquisitions and the anticipated closing of ICE - Orlando, Easterly's portfolio, including its joint venture holdings, will comprise 93 properties totaling approximately 9.1 million square feet.
The company's updated guidance also assumes additional acquisitions and development-related investments throughout 2024. However, the company cautions that the forward-looking statements regarding its financial performance are subject to market conditions and may vary materially from actual results.
Easterly Government Properties, based in Washington, D.C., primarily targets Class A commercial properties for acquisition, development, and management, with a specialized focus on properties leased to U.S. Government entities either directly or through the U.S. General Services Administration (GSA).
This news article is based on a press release statement from Easterly Government Properties, Inc.
InvestingPro Insights
Easterly Government Properties, Inc. (NYSE: DEA) has made headlines with its recent acquisitions, reflecting a strategic move to bolster its portfolio with high-profile government-leased properties. As investors consider the implications of these developments, InvestingPro data offers a snapshot of the company's financial health and market performance.
With a market capitalization of $1.38 billion and a high price-to-earnings (P/E) ratio of 61.64, Easterly Government Properties is trading at a significant earnings multiple, indicating that investors have high expectations for future earnings growth. Despite a slight decline in revenue over the last twelve months as of Q1 2024, by -0.79%, the company maintains a robust gross profit margin of 64.83%, showcasing its ability to manage costs effectively and retain a substantial portion of revenue as gross profit.
Investors who prioritize income-generating investments will be interested in the company's dividend yield, which stands at an impressive 9.06% as of the latest data. This substantial dividend payout is a key highlight for shareholders looking for steady income streams.
For those eager to delve deeper into Easterly Government Properties' financial outlook and market performance, there are additional InvestingPro Tips available. These tips provide insights such as the company's short-term obligations in relation to its liquid assets, and whether analysts predict profitability for the year. Currently, there are five additional tips listed on InvestingPro, providing a more comprehensive analysis for informed investment decisions.
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Overall, the strategic expansion of Easterly Government Properties' portfolio appears to align with the company's commitment to long-term growth and shareholder value. The InvestingPro data underscores the company's financial stability and the attractive dividend yield, which may appeal to a broad range of investors.
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