Shares of Easterly Government Properties (DEA) tumbled 5.11% in pre-market trading on Monday, despite reporting better-than-expected third-quarter results. The significant drop appears to be primarily driven by the company's decision to lower its full-year 2025 guidance.

For the third quarter, Easterly Government Properties posted a net income of $1.247 million. The company's core funds from operations (FFO) came in at $0.76 per share, up from $0.74 in the same period last year and slightly above analysts' expectations of $0.75 per share. Revenue for the quarter ended September 30 reached $86.2 million, surpassing the $83.6 million forecast by analysts and showing a substantial increase from $74.8 million a year ago.

However, the positive quarterly performance was overshadowed by a downward revision in the company's 2025 outlook. Easterly Government Properties adjusted its 2025 core FFO guidance to a range of $2.98 to $3.02 per diluted share, down from the previous range of $2.98 to $3.03. This reduction in the high end of the guidance appears to have spooked investors, leading to the sharp pre-market decline. The company also provided initial guidance for fiscal year 2026, projecting core FFO per share in the range of $3.05 to $3.12, which suggests a modest growth outlook that may not be meeting market expectations.