Darrell Crate, co-founder and CEO of Easterly Government Properties, Inc. (NYSE: DEA), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Crate discussed how Easterly’s acquisition strategy centers on mission-criticality rather than asset size, balancing large, highly specialized facilities with smaller, essential properties that support daily government operations.
Large assets, such as the FDA’s flagship laboratory in Atlanta, provide modern infrastructure that improves efficiency for federal agencies, while smaller buildings—including VA health labs, FBI regional offices, and courts—support core government functions across the country. A key differentiator is Easterly’s expertise in sensitive compartmented information facility (SCIF) space, which is integral to FBI facilities and government-adjacent properties like Northrop Grumman, giving the company an operational edge across federal, state, local, and government-adjacent portfolios.
Crate commented on the company’s recent reverse stock split, which he said was intended to realign Easterly with its growth strategy, improve capital flexibility, and better position it within investment grade parameters similar to net lease peers. He noted that achieving investment-grade liability pricing could drive meaningful embedded growth over the next five years.
Looking to 2026, development is the primary growth engine, according to Crate. Agencies are prioritizing efficiency and modernization, he said, creating demand for new labs, courthouses, and law enforcement facilities, particularly in high-growth regions. Easterly believes current market conditions allow it to pursue these developments accretively, supporting long-term growth.