Federal offices at a discount: 8% yield backed by Washington

This REIT owns roughly 90–100 mission‑critical office and specialty buildings leased almost entirely to U.S. federal agencies, with occupancy near 97% and an average remaining lease term of about 10 years. Despite more than 90% of its rent ultimately coming from the federal government and a dividend yield in the 8% range, the shares trade at an estimated 30% discount to net asset value as investors broadly shun office real estate and overlook how different long‑term government leases look from cyclical private‑sector demand.

Top points of the analysis

• Roughly 95 operating properties, 97% occupancy and an average remaining lease term of around 10 years.

• Approximately 90-93% of annual rents are paid by federal agencies (VA, FBI, DEA, ICE, DHS, etc.), one of the most defensive tenant structures in office REITs.

• Annual revenues of about $336 million are generated by the REIT. USD, Core FFO around USD 1.15-1.20 per share and free cash flow with margins around 70-80%.

• Shares priced at about…