Easterly Government Properties Delivers Strong Q3 Performance, Exceeding Growth Targets
Easterly Government Properties, a leading owner, developer, and operator of mission-critical properties serving federal, state, and local government, as well as government-adjacent tenants, has delivered a strong third quarter (Q3) performance in 2026. The company reported year-over-year core Funds From Operations (FFO) per share growth of 2.6%, beating its long-term growth target of 2%-3%.
"We're pleased with our Q3 results, which demonstrate the resilience and consistency of our business model," said Darrell Crate, President and CEO of Easterly Government Properties during the company's recent earnings conference call. "Our focus on delivering steady annual growth in core FFO per share has paid off, and we're on track to exceed our long-term growth objective with approximately 4% growth in 2026."
The company's Q3 performance was driven by its continued execution of its strategy, which includes growing earnings steadily, allocating capital thoughtfully, and improving the quality of its portfolio over time. Easterly's portfolio ended the quarter 98% leased, with a weighted average lease term of 9.2 years, demonstrating the durability of its assets and their essential mission.
"Our asset management team did an excellent job closing out our 2026 lease rollovers," added Crate. "We've already turned our attention to our 2027 expirations and are actively engaged in those discussions." The company also extended a lease at its FAA Chicago facility for an additional nine months, including six months of firm term, which is expected to provide incremental earnings in both 2026 and 2027.
Easterly's acquisitions team remains active, evaluating opportunities across its approximately $1.5 billion pipeline. The company has recalibrated its cost of capital following the recent sharp move in the 10-year Treasury, remaining disciplined and selective in its pursuit of attractive risk-adjusted returns for shareholders.
"We're committed to generating sustainable earnings growth while continuing to de-lever our balance sheet," said Crate. "This combination will drive long-term shareholder value and position us for continued success." The company's refreshed brand and new logo reflect its expanded capabilities, broadened investment opportunities, and strengthened platform.
Easterly Government Properties continues to demonstrate the resilience of its business model and is well-positioned to perform well relative to the broader REIT market. Its commitment to delivering consistent annual growth in core FFO per share, combined with its focus on de-levering the balance sheet, will drive long-term shareholder value.
