Easterly Government Properties upgraded to buy on strong Q3 results and near 8% dividend yield.

Easterly Government Properties has been upgraded from hold to buy due to strong fundamentals and a nearly 8% dividend yield. The company reported a 9% year-over-year revenue increase in Q3 and maintained core funds from operations at $0.78 per share. With a 98% leased portfolio and a $1.5 billion development pipeline, the outlook remains stable despite sector challenges. Valuation is attractive at 7.48 times forward price to funds from operations, though investors should watch leverage, refinancing, and tenant risks amid economic uncertainty.

While Easterly Government Properties shows strong fundamentals and an attractive dividend yield, the broader real estate sector on Pluang, represented by XLRE, trades at USD 42.44 as of Oct 27, 2026 21:21 WIB, down 0.85% for the day. XLRE's price remains closer to its 52-week low of USD 40.01 than its high of USD 46.01, reflecting some caution in the sector despite individual company strengths. This contrast highlights the selective optimism in real estate investments currently.