FFO-based dividend coverage has improved to a 62% payout ratio in Q2 2026, yet the absence of AFFO data and zero reported capital expenditures over multiple quarters complicate the assessment of true distributable cash flow and maintenance requirements.
Easterly Government Properties, Inc. (DEA) cash flow statement — 14-year operating, investing & financing cash flows
| 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 | 268.81M | 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 % | 271.81% | 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 % | 75.27% | 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 | 10.22M | 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 | 123.11M | 112.07M | 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 | 7.43M | 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 | 3.09M | 11.4M | -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 | 124.58M | 116.13M | 43.48M | 2.56M | -1.3M | 2.32M | 40.22M | 51.73M | -92K | -4M | -356K | 113K | 1.97M | 401K | -471K |
| Cash from Investing | -202.4M | -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 | 0 | 0 | -413.86M | 0 | 0 | -370.38M | -293.69M | 0 | -466.74M | -406.41M | -170.19M | -257K | -30.82M | 0 | 0 |
| Sale of Investments | 0 | 0 | 2.17M | 0 | 0 | 7.34M | 3.52M | 0 | 0 | 8.67M | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -202.4M | -285.29M | 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 | -66.81M | 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 | -86.71M | -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 | -64.85M | -94.59M | -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) | 0 | 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 | -2.59M | -7.51M | -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 | -398K | 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 | 12.68M | 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 | 13.65M | 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 | 268.81M | 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 % | 86.64% | 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 % | 75.27% | 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% |
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.
Key Metrics
Top Statement Risk
Federal Tenant Consolidation Risk
Metrics are mathematically derived from official filings.
Depreciation Renders GAAP Income Meaningless
In Q2 2026, DEA's FFO of $35.2M dwarfed its GAAP net income of just $3.0M, with depreciation and other non-cash charges consuming over 90% of funds from operations, a stark example of how standard accounting obscures the true cash earnings of asset-heavy REITs.
This massive FFO-to-Net Income ratio of 14.62x in the latest quarter is a persistent feature, indicating that the company's substantial real estate base generates significant non-cash depreciation charges. Consequently, evaluating DEA on a traditional P/E basis is highly misleading, and investors must rely on FFO and AFFO to assess its core profitability and capacity to pay dividends.
FFO-OCF Conversion Shows Working Capital Volatility
Operating cash flow significantly exceeded FFO in Q3 2025 by over $124M, but fell below FFO in the two most recent quarters, indicating volatile working capital movements that complicate the assessment of recurring cash generation from operations.
The Q3 2025 OCF surge to $155.0M, against FFO of $30.2M, appears to be a non-recurring working capital release, possibly from accelerated collections or a reduction in straight-line rent receivables. The more modest Q1 and Q2 2026 OCF figures relative to FFO suggest a normalization, but this inconsistency means FFO remains a more reliable short-term measure of operational cash flow than GAAP operating cash flow.
Dividend Coverage Appears Comfortable but AFFO Data Absent
Based on reported figures, FFO consistently covers the quarterly dividend, with the payout ratio falling from near 100% in late 2024 to a more sustainable 62% in Q2 2026, providing a clear buffer for distributions.
The reduction in dividend payments from approximately $29M per quarter in 2024 to around $22M from Q2 2025 onward has materially improved the FFO coverage ratio, creating a retained cash buffer. However, the absence of reported AFFO data is a critical limitation, as it prevents analysts from assessing the true distributable cash flow after recurring capital expenditures for tenant improvements and maintenance, which is essential for judging long-term dividend sustainability.
Zero Reported CapEx Warrants Disclosure Scrutiny
DEA's cash flow statement reports $0 in capital expenditures for every quarter over the past two and a half years, an unusual omission for a REIT owning specialized federal facilities that likely incur regular maintenance and tenant improvement costs.
This reporting anomaly makes it impossible to distinguish between true free cash flow and funds consumed by necessary property upkeep, which is a core component of AFFO. Investors should monitor the footnotes for any disclosure on how these costs are classified or funded, as their absence from the primary cash flow statement obscures the true recurring capital intensity of the business model.
Affo Gap and Hidden Capex Undermine Dividend Safety View
The critical gap between FFO and the absent AFFO metric means investors cannot verify the true free cash flow available after funding the recurring capital expenditures required to maintain DEA's high-security government properties.
Furthermore, the persistent negative gross margin reported at -0.92% suggests that when direct property costs are considered, the properties may be cash-flow negative on a direct basis before corporate overhead and depreciation. This combination of missing AFFO data and a negative gross margin warrants caution, as it implies the dividend's apparent safety from FFO may be masking underlying capital needs that could pressure long-term distributable cash flow.