Easterly Government Properties Lifts Guidance as Q1 Growth and Mezzanine Push Reshape Strategy

Management signals a push to lower borrowing costs by pairing selective deals with higher-yield mezzanine lending.

Overview

Easterly reported revenue up 16% to $91.5 million, EBITDA up 12% to $57.3 million, and funds from operations at $0.76 per share in the first quarter.
The company raised its full-year FFO outlook to a range of $3.06 to $3.12 per share by lifting the low end of guidance.
It launched a new lending line with a $7 million mezzanine loan for a VA clinic at about a 12% yield and targets roughly $30 million of such loans over the next 18 months.
Management said its investment pipeline stands near $1.5 billion and highlighted deal terms like rights of first offer or refusal that can give it first shot to buy assets it helps finance.
The portfolio is 97% leased with a weighted average lease term of about 9.4 years, and leadership aims for an investment-grade credit rating in 2027 through deleveraging.