DEA - Slightly Lowering 2026 FFO Estimate, Maintaining $24 Price Target and Hold Rating

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DEA - Slightly Lowering 2026 FFO Estimate, Maintaining $24 Price Target and Hold Rating

st Ratio/% Of Float 4.6% We are maintaining our 2027 FFO estimate of $3.10ps ($3.13ps core). According to

Dividend/Yield $1.80/7.8% FactSet, the 2027 reported FFO consensus is $3.09ps and the core consensus is $3.11ps.

Enterprise Value ($M) $1,107 We also calculate “normalized” FFO consistently across our coverage universe, including

NAV/Share $37.72 an add-back for transaction costs that are not deducted in DEA’s “core” FFO calculation

(but no add-back for non-real estate depreciation). Our 2026 normalized FFO estimate goes

9 Page Document to $3.12ps from $3.13ps, and our 2027 estimate remains $3.13ps. Our estimates imply

4.0% YOY normalized FFOps growth in 2026, followed by 0.2% growth in 2027. We project

essentially no average annual normalized FFOps growth from 2026-2031, weighed down

Reasons for this report by significant inexpensive debt maturities while noting the company’s cost of capital could

have a significant impact on the ultimate result.

✓ Updating Estimates and PT

Modeling Assumptions: We are assuming DEA’s high operating portfolio leased

percentage remains steady. We are assuming $95 million of 2026 acquisitions, including

the $45 million in 1Q26, as well as $50 million in late 2027. We are assuming $25 million of

dispositions this year and $50 million near the end of next year. The three active development

projects are expected to be delivered in 4Q26, 1Q27 and 2H27, respectively. We are not

modeling any significant common share issuance or repurchases this year or next. Our

model includes repayment of a $7 million 4.5% mortgage this year, and $231 million of

maturing debt in 2027 with an unsecured note offering assumed near the end of this year