Easterly Government Properties (DEA) Shares Soar 1.27% on BMO Upgrade

Easterly Government Properties (DEA) shares surged 1.27% today, reaching their highest level since January 2022 with an intraday gain of 3.24%.

The strategy of buying DEA shares after they reached a recent high and holding for 1 week yielded moderate returns but underperformed the market. The annualized return of this strategy was 4.5%, which is lower than the S&P 500's annualized return of 6.5% over the same period. While the strategy provided a decent return, it failed to keep pace with the broader market, making it suitable for a conservative investment approach..

Easterly Government Properties has recently seen several developments that could impact its stock performance. On July 16, 2025, BMO Capital upgraded DEA's rating from "Underperform" to "Market Perform," setting a price target of $25. This upgrade comes after a 19.5% year-to-date pullback, indicating a more balanced risk/reward profile for the company. The upgrade reflects BMO Capital's confidence in Easterly's strategic shifts and recent dividend cut, which are expected to drive more attractive earnings growth in the future.

Easterly's strategic shift involves a focus on optimizing its portfolio and enhancing operational efficiency. The company has been actively managing its properties to ensure they align with current market demands and regulatory requirements. This proactive approach is aimed at improving the overall performance and profitability of its real estate assets.

Additionally, Easterly's recent dividend cut is seen as a strategic move to conserve cash and invest in growth opportunities. By reducing the dividend payout, the company can allocate more resources towards capital expenditures and strategic acquisitions, which are expected to drive long-term value creation for shareholders.

Overall, the recent developments at Easterly Government Properties, including the rating upgrade and strategic initiatives, are likely to have a positive impact on its stock price. Investors are closely monitoring these changes as they assess the company's future prospects and potential for growth.