Easterly Government Properties, Inc. DEA recently secured a lease to construct a 50,777 rentable square foot Federal courthouse in Flagstaff, AZ.
A Leap Towards Sustainability
This groundbreaking project marks Easterly’s foray into net-zero development, showcasing a defining moment in the company’s dedication to sustainable real estate solutions. The 20-year non-cancelable lease, scheduled to begin upon project completion, underlines Easterly’s expertise in the niche market of government property development.
Innovative Design and Security Measures
The Flagstaff courthouse, known as JUD – Flagstaff, is envisioned as a cutting-edge, three-story facility built to Level III security standards. Adhering to Crime Prevention Through Environmental Design principles, the courthouse integrates sturdy security features like perimeter fencing, natural barriers, and setback requirements. It is also planned to be a LEED Silver-certified, net-zero facility, elevating Easterly’s portfolio standards and reinforcing its commitment to environmental, social, and governance principles.
Functionality and Safety at the Core
Beyond its sustainable features, JUD – Flagstaff prioritizes functionality and security. The design includes secured parking and a dedicated pathway for safe defendant transportation, ensuring smooth court proceedings. With three distinct travel paths within the facility, segregation between defendants, judges, and the public is meticulously maintained, upholding the integrity of the judicial process.
CEO’s Enthusiasm and Future Prospects
Darrell Crate, Easterly’s CEO, expressed excitement about the collaboration with the U.S. Government, highlighting the company’s ability to deliver mission-critical infrastructure while staying competitive in the market. Anticipated site work commencement in late 2024 or early 2025 paves the way for timely project completion, expected in the first half of 2026. Post-construction, a 20-year firm-term lease with the General Services Administration will cater to the U.S. Judiciary’s requirements, ensuring enduring value for Easterly and its stakeholders.
Positioned for Growth
Located in Washington, D.C., Easterly Government Properties specializes in acquiring, developing, and managing Class A commercial properties rented to the U.S. government. With a focus on innovation, security, and environmental consciousness, DEA solidifies its status as a key player in the government property sector, poised for sustained growth and value appreciation in the coming years.
Market Performance and Outlook
Despite broader market apprehensions, shares of this Zacks Rank #3 (Hold) company witnessed a marginal 0.5% decrease over the past month, contrasting the S&P 500’s 2.4% uptick.
Image Source: Zacks Investment Research
Stocks to Consider
Some more promising stocks in the broader REIT sector include Iron Mountain IRM and SL Green Realty Corp. SLG, each holding a Zacks Rank #2 (Buy). For a comprehensive list of today’s Zacks #1 Rank (Strong Buy) stocks, click here.
The Zacks Consensus Estimate for IRM’s 2024 Funds from Operations (FFO) per share projects a 6.3% year-over-year growth to $4.38. SLG’s 2024 FFO per share is estimated at $5.88, reflecting a substantial 19.03% uptick from the prior year.
Disclaimer: The earnings metrics cited in this article refer to FFO, a commonly used indicator for REIT performance.
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The opinions expressed above are solely those of the author and may not necessarily align with those of Nasdaq, Inc.
