FFO quality remains a concern as evidenced by the wide divergence between GAAP net income of $4.8M and FFO of $34.5M in 2026Q1, alongside tightening liquidity and variable dividend payout ratios.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 262.34M | 259.19M | 162.63M | 114.48M | 125.94M | 118.34M | 145.2M | 142.31M | 62.78M | 49.23M | 47.38M | 29.95M | -22.4M | -44.55M | -32.69M |
| Operating CF Growth % | 221.68% | 59.37% | 42.07% | -9.1% | 6.42% | -18.49% | 2.03% | 126.68% | 27.53% | 3.91% | 58.19% | 233.73% | 49.72% | -36.27% | - |
| Operating CF / Revenue % | 76.16% | 77.12% | 53.84% | 39.86% | 42.89% | 43.06% | 59.25% | 64.19% | 39.09% | 37.67% | 45.29% | 41.96% | -354.14% | -1111.98% | -1645.19% |
| Net Income | 14.71M | 13.56M | 20.58M | 21.06M | 35.56M | 33.96M | 13.53M | 8.22M | 6.66M | 5.39M | 4.74M | -6.04M | 67.78M | 26.07M | 9.65M |
| Depreciation & Amortization | 117.9M | 113.88M | 95.66M | 91.29M | 95.15M | 86.68M | 87.91M | 86.12M | 57.81M | 46.36M | 39.49M | 28.7M | 0 | 0 | 0 |
| Stock-Based Compensation | 6.72M | 6.04M | 3.21M | 5.75M | 6.54M | 5.05M | 4.09M | 4.91M | 3.04M | 2.96M | 2.9M | 1.87M | 1.77M | 0 | 0 |
| Other Non-Cash Items | 2.17M | 10.27M | -288K | -6.18M | -10.01M | -8.35M | -4.55M | -8.67M | -4.63M | -1.79M | 601K | 7.19M | -93.92M | -71.01M | -41.87M |
| Working Capital Changes | 123.87M | 115.45M | 43.48M | 2.56M | -1.3M | 2.32M | 40.22M | 51.73M | -92K | -4M | -356K | 113K | 1.97M | 401K | -471K |
| Cash from Investing | -313.48M | -285.29M | -409.64M | -127.01M | -69.1M | -363.04M | -290.18M | -442.34M | -466.74M | -397.75M | -170.19M | -164.55M | -30.82M | 0 | 0 |
| Acquisitions (Net) | 0 | 0 | 0 | -17.74M | -143.85M | -131.57M | 0 | 0 | 0 | 0 | 0 | 6.19M | 0 | 0 | 0 |
| Purchase of Investments | -28.41M | -304.95M | -413.86M | 0 | 0 | -370.38M | -293.69M | 0 | -466.74M | -406.41M | -170.19M | -257K | -30.82M | 0 | 0 |
| Sale of Investments | 681K | 19.67M | 2.17M | 0 | 0 | 7.34M | 3.52M | 0 | 0 | 8.67M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -285.75M | 0 | 2.04M | -109.27M | 74.74M | -231.47M | 0 | -442.34M | -466.74M | -397.75M | -170.19M | -164.29M | 0 | 0 | 0 |
| Cash from Financing | 46.33M | 31.92M | 252.88M | 17.19M | -59.71M | 250.17M | 144.1M | 304.47M | 398.87M | 356.35M | 119.48M | 111.34M | 50.47M | 47.19M | 32.34M |
| Dividends Paid | -86.16M | -94.59M | -115.91M | -100.34M | -109.18M | -88.24M | -80.89M | -81.89M | -55.38M | -49.18M | -29.74M | -13.06M | -14.3M | -23K | -16K |
| Common Dividends | -64.35M | 0 | -115.91M | -112.38M | -109.18M | -99.99M | -91.75M | -81.89M | -65.96M | -49.18M | -40.29M | -26.93M | -14.3M | -7.98M | 0 |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1K | 0 | 0 | 0 |
| Other Financing | 39.56M | -1.95M | -8.78M | -12.04M | -136K | -17.06M | -12.72M | -9.05M | -25.37M | -7.9M | -10.55M | -1.96M | 64.77M | 54.25M | 31.17M |
| Net Change in Cash | 16.14M | 5.83M | 5.87M | 4.67M | -2.87M | 5.47M | -880K | 4.44M | -5.1M | 7.84M | -3.33M | -23.26M | 28.07M | 2.64M | -352K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 30.82M | 0 | 0 |
| Cash at Beginning | 0 | 27.8M | 21.94M | 17.27M | 20.14M | 14.67M | 15.55M | 11.11M | 16.2M | 4.84M | 8.18M | 31.44M | 3.36M | 720K | 1.07M |
| Cash at End | 0 | 33.63M | 27.8M | 21.94M | 17.27M | 20.14M | 14.67M | 15.55M | 11.11M | 12.68M | 4.84M | 8.18M | 31.44M | 3.36M | 720K |
| Free Cash Flow | 262.34M | 259.19M | 162.63M | 114.48M | 125.94M | 481.39M | 145.2M | 142.31M | 62.78M | 49.23M | 47.38M | 29.95M | -22.4M | -44.55M | -32.69M |
| FCF Growth % | 61.01% | 59.37% | 42.07% | -9.1% | -73.84% | 231.54% | 2.03% | 126.68% | 27.53% | 3.91% | 58.19% | 233.73% | 49.72% | -36.27% | - |
| FCF / Revenue % | 76.16% | 77.12% | 53.84% | 39.86% | 42.89% | 175.14% | 59.25% | 64.19% | 39.09% | 37.67% | 45.29% | 41.96% | -354.14% | -1111.98% | -1645.19% |
Federal footprint consolidation risk
As reported in financial statements, DEA consistently exhibits a wide variance between GAAP operating cash flow and FFO, with FFO/NI ratios frequently exceeding 5.0x, which suggests that traditional accounting metrics fail to capture the true cash-generating capacity of the company's specialized government-leased asset portfolio.
The significant disparity between GAAP operating cash flow and FFO highlights the distortive impact of non-cash depreciation charges inherent in the REIT structure. Investors should monitor this conversion gap, as it indicates that reported net income provides a poor proxy for the actual liquidity available to support ongoing operations and dividend distributions.
Based on the provided quarterly figures, the dividend payout ratio relative to AFFO has fluctuated significantly, reaching as high as 1.06 in 2023Q4, which suggests that the company's ability to cover distributions from recurring cash flow remains tight and warrants close investor scrutiny.
The volatility in dividend coverage ratios implies that DEA may be operating with a thin margin of safety regarding its cash distributions. If AFFO does not consistently exceed dividend payments, the company may be forced to rely on external capital markets to sustain its payout, potentially increasing long-term financial risk.
According to recent SEC filings, the consistent gap between net income and FFO, such as the $4.8M net income versus $34.5M FFO in 2026Q1, confirms that GAAP accounting significantly understates the company's economic reality by treating real estate depreciation as a cash expense.
This accounting treatment obscures the underlying profitability of the portfolio, making it essential for analysts to focus on FFO as the primary metric for performance. The persistent nature of this distortion suggests that investors must look past headline earnings to understand the actual cash-generating potential of the firm's mission-critical assets.
As evidenced by the 2023Q4 data showing negative AFFO of $587K, the company's cash flow statement may hide significant capitalized maintenance costs or tenant improvement obligations that are not immediately apparent in standard operating cash flow figures, necessitating a deeper look at recurring capital expenditures.
The potential for lumpy capital requirements related to specialized government build-outs suggests that DEA's cash flow profile is more sensitive to lease renewal cycles than a standard office REIT. Analysts should investigate whether these periodic capital outlays are adequately captured in the current AFFO calculation to ensure a true assessment of dividend sustainability.
Quick answers to the most common questions about buying DEA stock.
Easterly Government Properties, Inc. (DEA) generated $259.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Easterly Government Properties, Inc. (DEA) generated $259.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Easterly Government Properties, Inc. (DEA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Easterly Government Properties, Inc. (DEA) returned $94.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.