DEAMEDIUM SIGNALOPERATIONAL10-K

DEA expanded its government-leased property portfolio from 90 to 93 wholly owned properties while generating strong revenue growth of 11.3% and operating cash flow surge of 59.4%.

The company is successfully executing its growth strategy by adding three new properties and expanding leased square footage from 9.7 million to 10.4 million, demonstrating solid operational momentum in the government real estate sector. However, the decline in net income despite strong operating performance suggests increased financing costs or other non-operating expenses that warrant monitoring.

Comparing 2026-02-23 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

DEA delivered strong top-line growth with revenue increasing 11.3% to $336.1M and operating income surging 76.3% to $22.8M, reflecting improved operational efficiency. However, net income declined 33.5% to $13.0M despite the operating improvements, indicating higher interest expenses or other non-operating costs offsetting the operational gains. The 59.4% increase in operating cash flow to $259.2M demonstrates strong cash generation capabilities, providing financial flexibility for continued portfolio expansion.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+76.3%
$12.9M$22.8M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Operating Cash Flow
Cash Flow
+59.4%
$162.6M$259.2M

Operating cash flow surged 59.4% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
-33.5%
$19.6M$13.0M

Net income declined 33.5% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+20.8%
$19.4M$23.4M

Cash grew 20.8% — improving liquidity position supports investment and shareholder returns.

Revenue
P&L
+11.3%
$302.1M$336.1M

Revenue growing 11.3% — solid top-line momentum, watch margins for quality of growth.

LANGUAGE CHANGES
NEW — 2026-02-23
PRIOR — 2025-02-25
ADDED
As of June 30, 2025, the aggregate market value of the shares of common stock held by non-affiliates of the registrant was approximately $ 946 million based on the closing sale price of $22.20 as reported on the New York Stock Exchange on June 30, 2025.
Government reduces its spending on real estate or that it changes its preference away from leased properties, including as a result of or in connection with any shutdown of the U.S.
We continue to pursue opportunities to add properties to our portfolio, including acquiring properties leased to state and local governments with strong creditworthiness and other opportunities that directly or indirectly support the mission of select government agencies.
As of December 31, 2025, we wholly owned 93 operating properties and ten operating properties through an unconsolidated joint venture (the JV ) in the United States encompassing approximately 10.4 million leased square feet (9.8 million pro rata), including 93 operating properties that were leased primarily to U.S.
Government tenant agencies, six operating properties leased to tenant agencies of a U.S.
As of December 31, 2025, our operating properties were 97% leased.
As of December 31, 2025, the weighted average age of our wholly owned and unconsolidated operating properties was approximately 16.4 years based on the date the property was built or renovated-to-suit, where applicable, and the weighted average remaining lease term was approximately 9.5 years.
Our senior management team has developed projects comprising approximately 4.8 million square feet, including 41 build-to-suit projects for the U.S.
Since our initial public offering, we have raised capital through four underwritten public offerings of our common stock and sales of our common stock under our at-the-market equity offering programs, including our current at-the-market equity offering program entered into in June 2021 (the ATM Program ).
During the year ended December 31, 2025, we received net proceeds of $63.0 million through the issuance of 2,466,987 shares (adjusted for impact of reverse stock split, as applicable) of our common stock under our ATM Program.
REMOVED
As of June 30, 2024, the aggregate market value of the shares of common stock held by non-affiliates of the registrant was approximately $ 1.19 billion based on the closing sale price of $12.37 as reported on the New York Stock Exchange on June 28, 2024.
We may also consider other potential opportunities to add properties to our portfolio, including acquiring properties leased to state and local governments with strong creditworthiness and other opportunities that directly or indirectly support the mission of select government agencies.
As of December 31, 2024, we wholly owned 90 operating properties and ten operating properties through an unconsolidated joint venture (the JV ) in the United States encompassing approximately 9.7 million leased square feet (9.2 million pro rata), including 92 operating properties that were leased primarily to U.S.
Government tenant agencies, four operating properties leased to tenant agencies of a U.S.
As of December 31, 2024, our operating properties were 97% leased.
As of December 31, 2024, the weighted average age of our wholly owned and unconsolidated operating properties was approximately 15.7 years based on the date the property was built or renovated-to-suit, where applicable, and the weighted average remaining lease term was approximately 10.0 years.
Our senior management team has developed projects comprising approximately 4.6 million square feet, including 40 build-to-suit projects for the U.S.
Since our initial public offering, we have raised capital through four underwritten public offerings of our common stock and sales of our common stock under our at-the-market equity offering programs ( ATM Programs ).
During the year ended December 31, 2024, we received net proceeds of $71.1 million through the issuance of 5,491,217 shares of our common stock under our ATM Programs.
As of December 31, 2024, there were no unsettled shares outstanding under our ATM Programs, and we had the capacity to issue an additional $315.4 million under such programs.
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