Bill Trimble, president and CEO of Easterly Government Properties, Inc. (NYSE: DEA), participated in a video interview in conjunction with Nareit’s REITweek: 2022 Investor Conference in New York on June 7-9.
Trimble noted that Easterly is uniquely well-positioned to perform in the current inflationary environment. The REIT’s rents are renewed at the end of the lease term based on inflation, “so replacement cost is the only alternative number for the government at that point.”
“We’re seeing a lot of tailwinds at our back” from inflation, Trimble said, adding that operating expenses are also pegged to urban CPI.
At the same time, the state of the government lease market is “always strong,” he added.
As for top reasons to invest in Easterly, Trimble pointed to the fact that its properties are leased to the U.S. government. The company also has a strong dividend yield and fortified balance sheet, he said.