Easterly Government Properties raised its full-year 2026 guidance Monday after posting second-quarter core funds from operations of $0.78 per share, up from $0.74 a year earlier, as the government-focused office REIT’s near-full occupancy and new capital-markets activity outpaced expectations.
The company’s second-quarter earnings release, filed with the Securities and Exchange Commission, showed revenue of $92.4 million, up from $84.2 million in the second quarter of 2025. Net income came in at $3.2 million, or $0.07 per diluted share, down from $0.09 per share a year earlier. Both funds from operations and core FFO per share rose to $0.78 from $0.74.
“Strong execution across the business, including in the capital markets, coupled with the durability of our portfolio, provides increased confidence” in the company’s earnings outlook, said Darrell Crate, Easterly’s president and chief executive.
Guidance raised across the board
Easterly raised its full-year 2026 core FFO guidance to a range of $3.07 to $3.13 per share, along with FFO of $3.05 to $3.11 per share and net income of $0.23 to $0.29 per share. The updated outlook assumes roughly $50 million in wholly owned acquisitions and $50 million to $100 million in development investment for the remainder of the year.
For the first six months of 2026, the company reported net income of $4.6 million, or $0.10 per diluted share, and core FFO of $74.5 million, or $1.55 per share.
A portfolio built on federal leases
Easterly’s business model centers on owning and leasing properties primarily to U.S. government agencies, a tenant base the REIT has said offers longer, more stable lease terms than typical commercial office tenants. As of the quarter’s end, the company owned 106 operating properties — 93 leased to federal agencies, eight to state or local government, and five to private tenants — totaling 10.7 million leased square feet, plus three properties under development expected to add another 200,000 square feet. Portfolio occupancy stood at 98%, with a weighted average remaining lease term of 9.2 years.
The company was active in the capital markets during the quarter, closing a $200 million senior unsecured term loan maturing in June 2031 and issuing 796,943 common shares through its at-the-market program at an average price of $23.86, raising about $18.8 million in net proceeds. After the quarter closed, Easterly extinguished a $6.4 million mortgage on an Albuquerque property on July 14 and amended its 2018 term loan and 2024 revolving credit facility on July 28.
As of June 30, total debt stood at $1.717 billion, with net debt to enterprise value of 58.4% and adjusted net debt to EBITDA of 7.1 times. Weighted average debt maturity was 4.0 years at a weighted average interest rate of 4.6%. The board declared a quarterly dividend of $0.45 per share on July 29, payable Aug. 20.
What it means
Easterly’s guidance raise adds to a pattern RealtyWire has tracked this earnings season of REITs across sectors lifting full-year outlooks after stronger-than-expected second quarters, including Essex Property Trust’s own guidance increase tied to strong San Francisco rent growth. Government-leased office assets have proven relatively insulated from the vacancy pressures hitting the broader office sector, which is one reason Easterly’s near-full occupancy and long lease terms stand out against a commercial office market that has otherwise struggled. The figures above are drawn directly from the company’s own SEC filing; the “increased confidence” framing in Crate’s quote is the company’s characterization of its outlook rather than an independently verified forecast. What to watch: whether Easterly deploys the guided $50 million in acquisitions and $50-100 million in development spending as planned, and how its leverage metrics trend as the $200 million term loan and other capital-markets activity work through the balance sheet.
