On the eleventh day of Christmas, my true love sent to me - Eleven Pipers a Piping; so goes the song - 12 Days of Christmas.
Original doc- https://finance.yahoo.com/news/become-uncle-sams-landlord-earn-120000781.html?soc_src=social-sh&soc_trk=ma.
Property is a big ticket item and owning one will easily tie you down for a long while; in terms of servicing the mortgage.
On the 11th day of Christmas, let's explore owning REITs instead.
[Sidetrack: interested in my other stocks shared ? Click the "blue" subject to access] Njoy ! Oh, show some love, give them a like ok ? LOL
- Great Dividend King - V.F. Corp
- Christmas Dare to Care - UnitedHealth Group
- 5th Day of Christmas - CVS Health Corp
- 6th Day of Christmas - Walgreens Boots Alliance
- 7th Day of Christmas - 3M Company
- 8th Day of Christmas - Pfizer
- 9th Day of Christmas - GE HealthCare.
- 10th Day of Christmas - Array Technologies Inc.
DEA - 1 year REIT price movement
$Easterly Government Properties(DEA)$ is not the largest REITs fund in the market. That honour belongs to another REITs.
As a landlord, it has a relatively more stable tenant one could asked for - the US government.
- 98% of its lease income is “backed by full faith and credit of the U.S. government.”
- Few tenants are more reliable. Won't run away from rental no !
- Company’s mission is to acquire, develop and manage Class A commercial properties leased to the U.S. government.
- As of end Q3 2022, DEA portfolio consisted of 86 properties totaling 8.7 million square feet. They were 99.3% leased, with a weighted average remaining lease term of 10.5 years
- Granted that government usually stay put once settled and don't keep changing office location, it means easily at least next 10 (super optimistic) or at least next 5 (optimistic) years of rental income at 99.3% occupancy - no !
Facts & Figures:
Easterly Govt Properties - Details
- Mid Cap company
- Established back in 06 Feb 2015. Has been around for a while.
- So very stable with a Beta quotient of only 0.57.
- Trading volume on the "lower"spectrum, implying "less volatility" when market is turbulent; like now.
- Healthy Revenue & Net Income, considering that US economy is poised to slip into mild recession in 2023. Touted early recovery is 2nd half of 2023; thats still up in the air !
- Attractive dividend returns; given the REITs' price.
- Comparing current REITs' price of $14.46 & its 52-weeks high - there's still a possible upside of +38.86% - {for assessment / analysis considerations}. Not indicating that it will reach that peak anytime soon.
What Else That I Have Found Out About $DEA ?
- Other info that I have discovered during research & not covered in above docu-link.
- Market is not a fan, perhaps due to the company's near-total reliance on a single tenant. Personally don't think this is a teething issue. Its not as if the governmental department will closed shop depending on which ruling party wins an election no ?
Criteria / Considerations to be added to Easterly's portfolio, a building or complex must meet the following criteria:
- The mission carried out in the building is critical to the govt agency's operation.
- Special building features are required by the agency.
- Core mission is not politically partisan.
- Tenant agency's mission is growing, and inherent to the operation of the U.S. government.
This goes a long way toward ensuring stable, long-term tenants who could not easily move to another building or be axed for budgetary or political reasons.
According to 11 analysts, average rating for DEA stock is "Buy." The 12-month stock price forecast is $15.89, which is an increase of 11.35% from the latest price....excerpt from Stockanalysis.com dated 03 Jan 2023
YTD Quarterly Earnings: To wrap up
DEA - 2022 quarterly earnings per share
- At first glance, it does look as if the REIT is not performing
- Think again, you would've realized that its not meeting Wall Street's expectations
- Are the books in the "red" ? No.
- Is the Fund not issuing dividends as scheduled ? No, dividends are issued as scheduled.
- Are you ready to re-org your portfolio and make it "defensive" ?
- Are you ready to become a Landlord to Uncle Sam?
- Are you ready to roll up your sleeves and get some CSI investigation work done ? LOL.
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Matching song ? Dear Uncle Sam by Loretta Lynn. Country song today.. Dunno ? YouTube it.
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