Easterly Government Properties amends and upsizes term loan to $200 million

WASHINGTON - Easterly Government Properties, Inc. (NYSE:DEA), a $1.1 billion market cap REIT currently offering an attractive 8.17% dividend yield, announced Thursday it has amended and upsized its senior unsecured term loan from $174.5 million to $200 million, while extending the maturity date to August 2028. According to InvestingPro data, the company maintains a FAIR financial health score while delivering steady revenue growth of 7.94% over the last twelve months.

The real estate investment trust, which focuses on properties leased to the U.S. Government, secured two optional one-year extensions that could potentially push the maturity date to August 2030. The company also added a new $100 million accordion feature to provide additional capacity. Want deeper insights? InvestingPro subscribers have access to exclusive analysis showing DEA is currently trading below its Fair Value, along with 12+ additional ProTips about the company’s financial outlook.

"Easterly continues to demonstrate its access to capital at competitive terms, while simultaneously increasing balance sheet capacity and creating the framework for future borrowing availability," said Allison E. Marino, Easterly’s Chief Financial Officer, in a press release statement.

Borrowings under the amended loan will continue to bear interest at a rate of SOFR plus a credit spread adjustment of 0.10% and a spread of 1.20% to 1.70%, depending on the company’s leverage ratio. The initial spread to SOFR is set at 1.45% based on the company’s current leverage ratio.

The loan arrangement was facilitated by Citibank, N.A., PNC Capital Markets LLC, Wells Fargo Securities, LLC, U.S. Bank National Association, and Truist Securities, Inc., which served as joint lead arrangers, joint bookrunners, and syndication agents. Citibank, N.A. acted as the administrative agent.

Easterly Government Properties specializes in Class A commercial properties leased to U.S. Government agencies either directly or through the U.S. General Services Administration. For comprehensive analysis of DEA and 1,400+ other US stocks, including detailed Fair Value calculations and expert insights, explore the full Pro Research Report available on InvestingPro.

In other recent news, Easterly Government Properties reported impressive second-quarter earnings, exceeding expectations with an earnings per share (EPS) of $0.09, surpassing the projected $0.06. This performance highlights the company’s ability to deliver strong results despite broader market concerns. Analysts had anticipated lower earnings, making this outcome notable for investors. The company’s financial results are a key focus for stakeholders assessing its current standing and future potential. While the stock experienced a slight decline, the earnings report remains a significant highlight. The positive earnings surprise may influence future analyst evaluations and investor decisions. This development is part of a series of recent updates from Easterly Government Properties.

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