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 0.82×…