DEA

Read DEA as a REIT, not the 93x P/E screen implies. GAAP EPS of $0.27 is crushed by $114M of D&A on a $3.38B property book; adding D&A back to $13.0M net income yields roughly $127M of FFO, or ~$2.74/share, putting the stock near 9x FFO — undemanding for a landlord whose MD&A says ~90% of revenue comes from U.S. Government agencies (directly or via the GSA), with the portfolio 97% leased at a $36.74/sq ft weighted-average rent. That is a genuinely defensive, investment-grade tenant base, and FY2025 revenue grew 11.3% to $336M while operating cash flow reached $259M. On those facts alone the equity is reasonably valued, supporting a hold rather than a sell.

But quality is drifting the wrong way under the headline. Net income has fallen four years running — $30.1M (2021) to $13.0M (2025) — and the company paid $94.6M of common dividends in 2025, down 18.4% YoY: a REIT cutting its distribution is the clearest signal management saw coverage tightening. The April 2025 1-for-2.5 reverse split (the source of the optical '−57%' share count) is cosmetic, but it often accompanies a reset of a stressed payout. The balance sheet is acquisitive and levered — $1.67B long-term debt, liabilities/equity 1.52x, and just $23.4M cash — so revenue growth is being bought with debt rather than earned, and rising rates or refinancing would pressure the same FFO that makes the stock look cheap.