Easterly Government Properties

To provide mission-critical infrastructure by being the indispensable real estate partner for the U.S. Government's vital agencies.

Easterly Government Properties SWOT Analysis

Updated: October 5, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Easterly Government Properties was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Easterly Government Properties SWOT analysis reveals a company with an exceptionally resilient foundation, anchored by the U.S. government as its primary tenant. This provides unparalleled stability and predictable cash flow, reflected in its near-perfect occupancy. However, this strength is currently tested by significant external pressures, primarily a high-interest-rate environment that elevates leverage and constrains growth. The strategic imperative is clear: the company must execute a disciplined strategy of deleveraging through strategic asset sales while simultaneously planting seeds for future growth via high-yield development projects. This pivot from aggressive acquisition to balance sheet fortification is not just prudent but essential for long-term value creation. Successfully navigating this period will position Easterly to capitalize on future opportunities from a position of renewed financial strength and operational focus, reinforcing its role as the government's landlord of choice.

Corporate Office Properties Trust Government Properties Income Trust (now part of Office Properties Income Trust) Private developers The GSA (General Services Administration) Alexandria Real Estate Equities

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide mission-critical infrastructure by being the indispensable real estate partner for the U.S. Government's vital agencies.

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Strengths

TENANT: 99% of rental income backed by the full faith of the U.S. Govt.
OCCUPANCY: Best-in-class portfolio occupancy of 98.6% as of Q1 2024.
LEASES: Long-term weighted average lease term of 9.7 years provides stability.
CRITICALITY: Portfolio focused on indispensable agency missions (FBI, DEA).
MANAGEMENT: Experienced team with deep, specific government real estate skill.

Weaknesses

LEVERAGE: Net Debt to Annualized Adjusted EBITDAre of 7.0x is elevated.
RATES: High interest rates increase borrowing costs and compress FFO growth.
GROWTH: Limited near-term acquisition growth due to unfavorable cost of capital.
SCALE: Smaller scale vs. diversified REITs limits operating efficiencies.
DIVIDEND: FFO payout ratio is high, limiting retained cash for reinvestment.

Opportunities

DISPOSITIONS: Selling non-core assets to recycle capital and deleverage.
DEVELOPMENT: Pursue higher-yield build-to-suit projects for specific agencies.
REFINANCING: Potential to refinance maturing debt at lower rates if rates fall.
CONSOLIDATION: Capitalize on government trend to consolidate into modern space.
PARTNERSHIPS: Joint venture opportunities to pursue larger-scale projects.

Threats

CAPITAL: A 'higher for longer' rate environment stifles accretive growth.
BUDGETS: Government shutdowns or budget cuts could delay leasing decisions.
COMPETITION: Increased competition for limited high-quality government assets.
TELEWORK: Permanent shifts to remote work could reduce long-term space needs.
RENEWALS: Risk of non-renewal or downsizing on leases expiring in 3-5 years.

Key Priorities

DELEVERAGE: Must prioritize strengthening the balance sheet via dispositions.
PORTFOLIO: Actively optimize the portfolio for growth and asset quality.
GROWTH: Selectively pursue high-yield development to reignite FFO growth.
RATES: Must mitigate the ongoing impact of the high interest rate environment.

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Easterly Government Properties OKR

Updated: October 5, 2025 • 2025-Q4 Analysis

This Easterly OKR plan is a masterclass in strategic focus and execution. It rightly prioritizes 'FORTIFY FOUNDATION,' tackling the critical need to deleverage in the current rate environment—a direct and necessary response to the SWOT's primary weakness. The plan skillfully balances this defensive posture with forward-looking objectives like 'IGNITE GROWTH,' which smartly pivots from acquisitions to higher-margin development. 'OPTIMIZE PORTFOLIO' introduces tangible AI-driven efficiencies, translating strategy into measurable operational improvements. Finally, 'LEAD THE NICHE' reinforces the core competitive advantage: its unparalleled relationships. This is not just a plan; it's a clear, disciplined roadmap to navigate current headwinds and build a more resilient, valuable enterprise for the future.

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide mission-critical infrastructure by being the indispensable real estate partner for the U.S. Government's vital agencies.

FORTIFY FOUNDATION

Strengthen the balance sheet to weather any economic storm.

DISPOSITIONS: Complete the sale of 3-5 non-core assets to generate capital for debt reduction.
LEVERAGE: Reduce Net Debt to Adjusted EBITDA ratio from 7.0x to below 6.7x by year-end.
LIQUIDITY: Increase total liquidity by 15% through expanded credit facility capacity or cash reserves.
DEBT: Proactively address all debt maturing in the next 24 months with a clear refinancing plan.

OPTIMIZE PORTFOLIO

Maximize the value and performance of our existing assets.

RENEWALS: Proactively renew or extend 75% of all leases expiring in the next 36 months at positive spreads.
OPERATIONS: Implement AI-driven energy management across 5 key properties to reduce utility costs by 8%.
MAINTENANCE: Launch predictive maintenance pilot at 3 facilities, reducing reactive work orders by 20%.
ESG: Achieve Energy Star certification for 2 additional properties, enhancing asset marketability.

IGNITE GROWTH

Plant the seeds for our next phase of FFO per share growth.

DEVELOPMENT: Advance one major build-to-suit project from pipeline to the pre-construction phase.
PIPELINE: Identify and underwrite three new accretive development opportunities with target yields over 8%.
PARTNERSHIPS: Establish a formal joint venture partnership to pursue large-scale government projects.
ACQUISITIONS: Develop an AI-powered sourcing model that identifies 10 off-market acquisition targets.

LEAD THE NICHE

Deepen our role as the indispensable partner to government.

RELATIONSHIPS: Conduct strategic review meetings with our top 5 agency tenants to map future needs.
INSIGHTS: Publish an industry white paper on the future of federal real estate, establishing thought leadership.
TEAM: Increase employee certifications in government contracting and facility security by 10%.
BRAND: Secure a feature story in a national business publication on our unique public-private partnership model.

METRICS

FFO Per Share Growth: Achieve positive growth Y/Y
Net Debt to EBITDA: Target below 6.7x
Portfolio Occupancy: Maintain above 98.5%

VALUES

Integrity
Partnership
Reliability
Long-Term Focus
Stewardship

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Easterly Government Properties Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Easterly Government Properties Q1 2024 Earnings Release and 10-Q Report
Easterly Government Properties Investor Relations Website and Presentations
SEC Filings (DEF 14A, 10-K)
Public financial data sources (e.g., Yahoo Finance, Seeking Alpha) for market cap and stock data
Company's official website for executive team and corporate information

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide mission-critical infrastructure by being the indispensable real estate partner for the U.S. Government's vital agencies.

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What Went Well

OCCUPANCY: Maintained very strong portfolio occupancy at 98.6%.
DISPOSITIONS: Successfully executed on planned dispositions to raise capital.
LEASING: Completed key lease renewals, demonstrating tenant retention.
GUIDANCE: Reaffirmed full-year 2024 FFO guidance, providing market stability.
BALANCE SHEET: Proactively managed debt maturities and liquidity position.

Not So Well

GROWTH: FFO per share remains flat year-over-year due to asset sales/rates.
INTEREST: Higher interest expense continues to be a headwind on earnings.
ACQUISITIONS: Acquisition volume remains muted due to cost of capital.
LEVERAGE: Leverage metrics remain at the higher end of the target range.
STOCK: Share price performance has lagged due to macro interest rate concerns.

Learnings

MARKET: The market is rewarding balance sheet strength over growth-at-all-costs.
STRATEGY: A disciplined capital recycling strategy is the correct path currently.
DEVELOPMENT: Development pipeline offers a better path to growth than acquisitions.
RATES: The impact of interest rates on the business model is profound.
COMMUNICATION: Clear communication of strategy is key during volatile times.

Action Items

DELEVERAGE: Continue executing on the disposition plan to lower leverage.
DEVELOPMENT: Advance pre-development activities on key pipeline projects.
OPERATIONS: Focus on driving internal growth through operational efficiencies.
DEBT: Monitor capital markets for opportunities to refinance upcoming debt.
INVESTORS: Reinforce the long-term value proposition to the investment community.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Easterly Government Properties Market

AI-Powered Insights

Claude

Gemini

GPT

Easterly Government Properties Q1 2024 Earnings Release and 10-Q Report
Easterly Government Properties Investor Relations Website and Presentations
SEC Filings (DEF 14A, 10-K)
Public financial data sources (e.g., Yahoo Finance, Seeking Alpha) for market cap and stock data
Company's official website for executive team and corporate information

Founded: 2015 (IPO Date)
Market Share: Leading public REIT focused on U.S. federal government leased properties.
Customer Base: Primarily U.S. Federal Government agencies (FBI, DEA, IRS, etc.).
Category:
Government REIT
SIC Code: 6798 Real Estate Investment Trusts
NAICS Code: 531120 Lessors of Nonresidential Buildings (except Miniwarehouses)
Location: Washington, D.C.
Zip Code: 20005
Employees: 73

Competitors

Corporate Office Properties Trust Request Analysis

Government Properties Income Trust (now part of Office Properties Income Trust) Request Analysis

Private developers Request Analysis

The GSA (General Services Administration) Request Analysis

Alexandria Real Estate Equities Request Analysis

Products & Services

No products or services data available

Distribution Channels

Easterly Government Properties Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Easterly Government Properties Q1 2024 Earnings Release and 10-Q Report
Easterly Government Properties Investor Relations Website and Presentations
SEC Filings (DEF 14A, 10-K)
Public financial data sources (e.g., Yahoo Finance, Seeking Alpha) for market cap and stock data
Company's official website for executive team and corporate information

Problem

Govt. needs secure, modern facilities
Aging existing federal building stock
Need for specialized, mission-critical space
Budgetary constraints on direct ownership

Solution

Long-term leases for Class A properties
Build-to-suit development projects
Acquisition of mission-critical assets
Professional asset and facility management

Key Metrics

FFO (Funds From Operations) per share
Portfolio Occupancy Rate (%)
Net Debt to Adjusted EBITDA Ratio
Weighted Average Lease Term (Years)

Unique

Singular focus on U.S. Govt. tenants
Expertise in high-security facilities
Deep relationships within federal agencies
Proven build-to-suit development capability

Advantage

U.S. Govt. credit is highest quality
High barriers to entry (relationships/capital)
Portfolio of irreplaceable, critical assets
Experienced, specialized management team

Channels

Direct relationships with federal agencies
General Services Administration (GSA)
Partnerships with private developers
Investment broker network for acquisitions

Customer Segments

U.S. Federal Government Agencies (FBI, DEA)
Other quasi-governmental entities
Focus on non-discretionary agency missions

Costs

Property operating expenses (taxes, insurance)
Interest expense on debt
General and administrative (G&A) expenses
Capital expenditures and development costs

Easterly Government Properties Product Market Fit Analysis

Updated: October 5, 2025

Easterly Government Properties provides the U.S. government's most vital agencies with secure, modern, mission-critical facilities. This ensures agencies can execute their missions effectively while gaining long-term budget certainty. Easterly acts as the indispensable real estate partner, delivering the foundational infrastructure that empowers federal service to the American people, backed by the full faith and credit of the United States.

Delivering Unmatched Security for mission-critical government operations.

Providing Long-Term Budgetary Certainty with stable lease structures.

Enhancing Agency Efficiency through modern, consolidated facilities.

Before State

Agencies in scattered, aging buildings
Inefficient, insecure facility layouts
Struggling with deferred maintenance costs

After State

Consolidated in modern, secure facilities
Optimized for mission-specific needs
Predictable, long-term real estate costs

Negative Impacts

Compromised agency missions and security
High operational costs for government
Poor employee morale and productivity

Positive Outcomes

Enhanced operational security and efficiency
Reduced taxpayer cost over the long term
Improved environment for federal employees

Key Metrics

Portfolio Occupancy Rate

98.6% (Q1 2024)

Weighted Average Lease Term

9.7 years remaining

Customer Retention Rates

Very high due to long-term leases and asset criticality.

Net Promoter Score (NPS)

Not a primary metric; agency relationships are key.

User Growth Rate

Measured by portfolio square footage growth.

Requirements

Deep understanding of agency requirements
Access to significant, patient capital
Expertise in government procurement

Why Easterly Government Properties

Direct engagement with agency leadership
Proactive development and acquisitions
Best-in-class asset management

Easterly Government Properties Competitive Advantage

Singular focus on mission-critical assets
Decades of specialized team experience
Proven track record as a reliable partner

Proof Points

99% of lease income backed by US Govt.
Portfolio of 90+ essential properties
Successful build-to-suit projects (e.g., FBI)

Easterly Government Properties Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Easterly Government Properties Q1 2024 Earnings Release and 10-Q Report
Easterly Government Properties Investor Relations Website and Presentations
SEC Filings (DEF 14A, 10-K)
Public financial data sources (e.g., Yahoo Finance, Seeking Alpha) for market cap and stock data
Company's official website for executive team and corporate information

Strategic pillars derived from our vision-focused SWOT analysis

Own only indispensable, high-security assets.

Deepen relationships with key agencies.

Maintain low leverage and high liquidity.

Pursue accretive acquisitions and developments.

What You Do

Acquires, develops, and manages mission-critical properties for the U.S. Govt.

Target Market

U.S. federal agencies requiring secure, modern, and specialized facilities.

Differentiation

Focus on mission-critical, non-discretionary agency functions.
Expertise in navigating government leasing and security protocols.

Revenue Streams

Long-term rental income from leases
Tenant reimbursements for property operating expenses

Easterly Government Properties Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Easterly Government Properties Q1 2024 Earnings Release and 10-Q Report
Easterly Government Properties Investor Relations Website and Presentations
SEC Filings (DEF 14A, 10-K)
Public financial data sources (e.g., Yahoo Finance, Seeking Alpha) for market cap and stock data
Company's official website for executive team and corporate information

Company Operations

Organizational Structure: Publicly traded Real Estate Investment Trust (REIT).
Supply Chain: Partners with construction firms, developers, and service providers.
Tech Patents: No significant technology patents; focus is on real estate assets.
Website: https://www.easterlyreit.com/

Top Clients

Board Members

Easterly Government Properties Competitive Forces

Threat of New Entry

MODERATE: High capital requirements and the deep, specialized relationships needed to win government deals create significant barriers.

Supplier Power

LOW: Suppliers of construction, materials, and property services are fragmented, limiting their pricing power on a large portfolio.

Buyer Power

HIGH: The U.S. Government is effectively a monopsony buyer with significant negotiating leverage through the GSA on lease terms.

Threat of Substitution

LOW: Mission-critical government functions (law enforcement, labs) require physical, secure locations that cannot be easily substituted.

Competitive Rivalry

MODERATE: Few direct public REIT competitors, but competition exists from private equity and developers for high-quality assets.

Analysis of AI Strategy

Updated: October 5, 2025 • 2025-Q4 Analysis

The Easterly Government Properties AI SWOT analysis identifies a clear, pragmatic path for leveraging artificial intelligence. Easterly's core advantage lies not in becoming an AI developer, but in being a sophisticated AI adopter within its unique niche. The company possesses a valuable, proprietary dataset on government real estate usage that can fuel powerful predictive models. The most immediate opportunities are in operational efficiency—using AI for predictive maintenance and energy optimization to enhance margins and advance ESG goals. Strategic partnerships with leading PropTech AI firms will be crucial, allowing Easterly to deploy best-in-class technology without the immense cost and risk of in-house development. By focusing AI application on operations, acquisitions, and security, Easterly can create a meaningful competitive advantage, driving both profitability and its value proposition as a technologically advanced, indispensable partner to the U.S. government.

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To provide mission-critical infrastructure by being the indispensable real estate partner for the U.S. Government's vital agencies.

Strengths

DATA: Rich, proprietary dataset on government tenant behavior and needs.
ASSETS: Physical properties are ideal for IoT sensor data collection.
FOCUS: Niche focus allows for development of highly specialized AI models.
RELATIONSHIPS: Tenant partnerships enable pilot programs for new AI tech.
SECURITY: Expertise in security protocols can be applied to AI data governance.

Weaknesses

TALENT: Lack of in-house AI and data science expertise to build models.
SYSTEMS: Legacy property management software not built for AI integration.
BUDGET: Limited R&D budget for speculative AI technology investments.
CULTURE: A traditionally conservative real estate culture slow to adopt AI.
INTEGRATION: Difficulty integrating disparate data sources across the portfolio.

Opportunities

OPERATIONS: AI for predictive maintenance, reducing costs and improving uptime.
ENERGY: Optimize HVAC and lighting for ESG goals and lower utility costs.
LEASING: AI models to predict agency space needs and optimize lease terms.
ACQUISITIONS: Use AI to screen and underwrite potential asset acquisitions.
SECURITY: AI-powered surveillance and access control for enhanced security.

Threats

CYBERSECURITY: AI systems create new attack vectors for sophisticated actors.
OBSOLESCENCE: AI could enable more efficient space use, reducing demand.
PRIVACY: Data privacy concerns from government tenants on data collection.
COST: High cost of implementing and maintaining sophisticated AI platforms.
COMPETITION: Tech-forward competitors could leverage AI for an operating edge.

Key Priorities

OPERATIONS: Leverage AI for predictive maintenance and energy efficiency.
ACQUISITIONS: Use AI to enhance the underwriting and sourcing of new deals.
PARTNERSHIPS: Partner with PropTech AI firms instead of building in-house.
SECURITY: Implement AI-driven cybersecurity to protect assets and data.

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Easterly Government Properties Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Easterly Government Properties Q1 2024 Earnings Release and 10-Q Report
Easterly Government Properties Investor Relations Website and Presentations
SEC Filings (DEF 14A, 10-K)
Public financial data sources (e.g., Yahoo Finance, Seeking Alpha) for market cap and stock data
Company's official website for executive team and corporate information

Profit: Net Income TTM: $14.1 Million (Q1 2024)

Market Cap: $1.21 Billion (June 2024)

Stock Performance

Annual Report: Available on the company's investor relations website.

Debt: Total Debt: $1.26 Billion (Q1 2024)

ROI Impact: High interest rates are compressing investment spreads and FFO growth.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Niche Dominator

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Easterly's societal-level ambition is tempered by significant macroeconomic headwinds (high rates) that impact achievability. The SWOT reflects a defensive posture, with downside risks slightly outweighing immediate upside. OKRs are strong and category-shaping but not world-shaping. The low growth multiplier reflects its status as a stable, income-oriented REIT in a constrained capital environment, not an exponential growth story. The Iconic Index score signifies a highly competent, dominant player in a critical niche.

SWOT Factors

Upside: 66.7 Risk: 73.3

OKR Impact

AI Leverage

Top 3 Strategic Levers

DELEVERAGE: Execute dispositions to fortify the balance sheet.

DEVELOPMENT: Pivot to high-yield development for future growth.

OPERATIONS: Deploy AI/tech to drive margin expansion in portfolio.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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