Easterly Government Properties (NYSE:DEA) reported its Q4 results two weeks ago, with EPS of $0.18 coming in better than the Street estimate of $0.06. Revenue was $73.5 million, beating the Street estimate of $71.28 million.
Analysts at RBC Capital still expect the earnings run-rate will be reset in 2023 versus 2022. Additionally, they expect earnings will tick lower in 2024 in part due to higher interest expenses.
Encouragingly, the company completed some additional balance sheet work by executing $300 million of new interest rate swaps keeping its variable rate debt balance down. Therefore, the analysts are largely reiterating their earnings estimates. RBC’s estimates imply core earnings will drop 9.2% in 2023 and 4.0% in 2024. The analysts maintained their Sector Perform rating and $15 price target on the company’s shares.