Easterly Government Properties executes reverse stock split

WASHINGTON - Easterly Government Properties, Inc. (NYSE:DEA), a real estate investment trust (REIT) specializing in properties leased to U.S. Government agencies, today began trading its common stock on a split-adjusted basis following a 1-for-2.5 reverse stock split. The company, currently valued at approximately $983 million, has seen its stock decline by about 38% over the past six months according to InvestingPro data. The adjustment took effect at market open on the New York Stock Exchange (NYSE) under the unchanged ticker symbol "DEA" but with a new CUSIP number of 27616P 301.

The reverse stock split reduced the number of the company’s outstanding shares from roughly 112.3 million to approximately 44.9 million, without altering the authorized shares count. Corresponding to this, the partnership units of Easterly Government Properties LP, the company’s operating partnership, also underwent a 1-for-2.5 reverse split, decreasing from about 4.9 million units to approximately 2.0 million units.

As a result of the reverse stock split, the upcoming quarterly dividend, which was initially set at $0.18 per share for stockholders of record as of May 5, 2025, will be adjusted to $0.45 per share. This reflects the reduced number of shares post-split. Stockholders holding fractional shares as a consequence of the reverse stock split will receive cash payments based on the average closing price of the common stock for the three trading days preceding the effective date of the split.

Shareholders in need of assistance or with questions regarding the reverse stock split are advised to contact their broker or Easterly’s transfer agent, Computershare.

Easterly Government Properties, headquartered in Washington, D.C., focuses on acquiring, developing, and managing Class A commercial properties that cater primarily to the needs of U.S. Government agencies. The management team of Easterly leverages specialized knowledge in the sector to serve the strategic and operational requirements of mission-critical government facilities. InvestingPro analysis shows the company maintains a healthy 66.6% gross profit margin and offers a dividend yield of 3.52%, though investors should note its current high earnings multiple. For deeper insights into DEA’s valuation and growth prospects, including 6 additional ProTips and comprehensive financial analysis, consider exploring the detailed Pro Research Report available on InvestingPro.

This news is based on a press release statement from Easterly Government Properties, Inc.

In other recent news, Easterly Government Properties has reported its fourth-quarter 2024 earnings, revealing a net income per share of $0.05, which fell short of the forecasted $0.06. The company’s revenue also missed expectations, coming in at $74.14 million compared to the anticipated $77.44 million. Additionally, Easterly Government Properties announced a dividend cut of approximately 32%, reducing the quarterly dividend from $0.265 to $0.18 per share. The company’s Board of Directors also approved a reverse stock split, set to take effect on April 28, 2025, which will adjust the dividend to $0.45 per share after the split.

Compass Point analysts have downgraded Easterly Government Properties from Buy to Neutral, significantly reducing the price target from $15.00 to $9.50. This downgrade follows the company’s recent strategic decisions, including the dividend cut and reverse stock split, which have impacted investor confidence. On a more optimistic note, Jefferies initiated coverage of Easterly Government Properties with a Buy rating and a price target of $13.00, citing potential growth opportunities and confidence in the company’s strategy. Despite the challenges, Easterly reaffirmed its earnings outlook for 2025, with plans for significant acquisitions and a target for core funds from operations growth of 2-3%.

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