William Trimble, president and CEO of Easterly Government Properties, Inc. (NYSE: DEA), joined REIT.com for a CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.
Easterly focuses on the acquisition, development and management of Class A commercial properties leased to federal government agencies that serve essential functions.
Trimble pointed out that 96 percent of the company’s leasings are derived from “the safest source of credit in the world.”
At the same time, “I think we’ve put forward a very strong growth plan of acquiring $75 million to $125 million of buildings a year,” with leases that span the next 10 to 15 years, he said.
Trimble noted that all of the buildings it has acquired this year have capitalization rates in the 6.75 percent to 7.25 percent range. All of the buildings are also mission-critical properties, such as drug laboratories for the Drug Enforcement Administration (DEA) and offices of the federal judiciary.
With its unique market niche, Trimble adds that Easterly’s office properties are largely immune to the forces of technology that are bringing change elsewhere in the office sector.
“I can assure you that the FBI cannot complete their mission by telecommuting, nor can the DEA nab submarines filled with cocaine via telephone,” he said.