DEA Stock Forecast & Price Target

Easterly Government Properties Inc. is positioned for growth due to its strong lease spreads and the potential for increased acquisition volumes, which may enhance overall investment returns. The company's growth strategy focuses on accretive acquisitions, and a favorable improvement in its cost of capital could further widen the investment spread, leading to additional value creation. Furthermore, the stable tenant base of U.S. government agencies is likely to attract more investors seeking quality assets, providing a robust foundation for future performance.

Easterly Government Properties Inc. is experiencing significant challenges, as highlighted by a year-to-date stock decline of 25%, contrasting sharply with the broader REIT market's modest gain of 1%. Key downside risks include potential budget cuts to U.S. government agencies, which could lead to reduced demand for leased properties, compounded by the company's low projected average annual normalized FFO per share growth of only 0.9% from 2025 to 2030. Furthermore, investor sentiment is adversely affected by a history of inconsistent earnings, a recent dividend cut, and an overall negative outlook toward future growth, suggesting a lack of confidence in the company's ability to navigate external pressures effectively.