Easterly Government Properties Posts 16% Revenue Gain, Eyes VA Clinic Growth

Easterly Government Properties, a real estate investment trust focused on federal and government-adjacent tenants, reported $91.5 million in first-quarter 2026 revenue — a 16% increase year over year — driven by recent acquisitions and contractual rent growth, executives said during an April 27 earnings call.

The company's portfolio occupancy held at 97%, well above typical office REIT benchmarks, with a weighted average lease term of 9.4 years. Funds from operations per share came in at $0.76, up 7%, while core FFO per share reached $0.77, a 5.5% gain. EBITDA rose 12% to $57.3 million.

Management raised the low end of full-year guidance by $0.10, revising the range upward to $3.60 at the floor. CFO Allison Marino said the company plans between $50 million and $100 million in development-related investment during 2026, plus $50 million in wholly owned acquisitions.

The company also disclosed its first mezzanine investment — $7 million deployed into a Department of Veterans Affairs outpatient clinic development, generating a 12% yield backed by a 20-year federal lease. CEO Darrell Crate signaled the company could deploy up to $30 million in similar mezzanine positions across three or four projects over the next 18 months, calling the VA pipeline "quite significant" over the next four to six years.

For Treasure Coast readers, the VA outpatient clinic strategy carries direct local resonance: Indian River, St. Lucie, and Martin counties are home to tens of thousands of veterans who rely on VA-operated and VA-affiliated outpatient facilities. Expansion of VA clinic development nationally can signal new construction and lease activity in underserved veteran communities along Florida's coast.

Among active projects, the company's Fort Myers lab facility remains on track for a 2026 lease commencement, according to public documents. Easterly's $1.5 billion development pipeline is divided roughly equally among federal, state and local, and government-adjacent tenants, Crate said. The company is targeting a credit rating upgrade to investment grade in 2027.

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