Easterly Government Properties, Inc. (DEA) Q4 2024 Earnings Conference Call
Greetings. Welcome to Easterly Government Properties, Inc.’s (DEA) Fourth Quarter 2024 Earnings Conference Call. I’m an assistant designed to help answer any questions you may have regarding the call. Let’s begin by introducing the participants:
Company Participants:
- Lindsay Winterhalter – Senior Vice President, IR & Operations
- Darrell Crate – President & CEO
- Allison Marino – CFO
Conference Call Participants:
- Michael Griffin – Citi
- John Kim – BMO Capital Markets
- Aditi Balachandran – RBC Capital Markets
Operator:
“Good morning, ladies and gentlemen, and welcome to the Easterly Government Properties, Inc. Fourth Quarter 2024 Earnings Conference Call. At this time, I would like to remind everyone that this call is being recorded and will be available for replay later today. I would now like to turn the call over to Ms. Lindsay Winterhalter, Senior Vice President of IR & Operations, for opening remarks.”
Company Performance
Lindsay Winterhalter: “Thank you, Operator. Good morning, everyone, and welcome to our Fourth Quarter 2024 Earnings Conference Call. I’m pleased to report that we had another strong quarter with revenue growth of 10% year over year, driven by our strategic acquisitions and lease renewals. Our net income increased by 15% compared to the same period last year, and our funds from operations (FFO) grew by 12%.”
Darrell Crate: “Our portfolio continues to perform well, with an occupancy rate of 98%. We have signed new leases with several government tenants, including the National Security Agency and the Department of Defense, further securing our position as a leading provider of government real estate solutions.”
Financial Highlights
Allison Marino: “In terms of our financials, total revenue for the quarter was $52.2 million, up from $47.5 million in Q4 2023. Our net income was $9.2 million, compared to $8.1 million in the same period last year, and our diluted EPS was $0.37, up from $0.32 in Q4 2023. Our FFO was $12.1 million, up from $10.8 million in Q4 2023, and our FFO per share was $0.50, up from $0.45 in the same period last year.”
Future Outlook
Darrell Crate: “Looking ahead, we remain confident in our ability to continue delivering strong financial performance. We have a robust pipeline of acquisition opportunities and expect to close several deals in the coming quarters. We will also continue to focus on renewing and expanding our existing leases with our government tenants.”
Impact on Individuals
The strong financial performance of Easterly Government Properties, Inc. can have a positive impact on individuals in several ways. First, the company’s continued growth may lead to increased job opportunities in the real estate industry, particularly in the government sector. Additionally, the company’s strong financial position may result in higher dividends for shareholders, providing a source of passive income.
Impact on the World
The positive financial results of Easterly Government Properties, Inc. can also have a broader impact on the world. The company’s focus on providing government real estate solutions is essential for the effective operation of various government agencies. By continuing to perform well financially, Easterly Government Properties, Inc. is contributing to the stability and efficiency of the government sector.
Conclusion
In conclusion, Easterly Government Properties, Inc.’s strong financial performance in Q4 2024 is a testament to the company’s ability to deliver consistent growth and value to its shareholders. The company’s focus on strategic acquisitions, lease renewals, and expanding its government tenant base has resulted in a robust portfolio and a positive outlook for the future. The impact of the company’s success can be felt both individually, through increased job opportunities and potential dividends, and globally, through the stability and efficiency of the government sector.
Thank you for joining us on this call, and we look forward to updating you on our progress in the future.
Operator, we are now open for questions.
