DEA - Why Is Easterly Government Properties' Dividend Yield So High?
2023-04-15 14:49:00 ET
Tenant quality is important when it comes to real estate investment trusts (REITs). Easterly Government Properties (NYSE: DEA) has a lock on some of the highest-quality tenants around -- the U.S. government and government agencies. And yet the stock has sold off over the past year, pushing the dividend yield to a historic high of 7.5%. What's going on?
Easterly owns a portfolio of 86 properties, covering 8.7 million square feet spread across the United States. Office assets make up around 62% of the portfolio, outpatient properties 20%, lab space 6%, and courthouses 4%, with a fairly sizable "other" category rounding things out to 100%. The average remaining lease term is a pleasing 10.3 years, and occupancy is solid at 98.8%.
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Why Is Easterly Government Properties' Dividend Yield So High?