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BETHESDA, Md.--(BUSINESS WIRE)--JBG SMITH (NYSE: JBGS), a leading owner, operator, and developer of mixed-use properties in the Washington, DC market, today announced that its Board of Trustees has declared a quarterly dividend of $0.175 per common share. The dividend will be paid on January 13, 2026 to common shareholders of record as of December 30, 2025. About JBG SMITH JBG SMITH owns, operates and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and aro. ...

Core Insights - JBGS reported an earnings per share (EPS) of -$0.48, slightly better than the estimated EPS of -$0.49, while revenue reached approximately $123.87 million, exceeding the estimated $120.57 million [2][6] Financial Performance - The company has a price-to-earnings (P/E) ratio of approximately -9.60, reflecting negative earnings over the past year [3] - The price-to-sales ratio is about 2.56, indicating that investors are willing to pay $2.56 for every dollar of sales, suggesting confidence in revenue potential [3] - JBGS's enterprise value to sales ratio is approximately 7.38, and the enterprise value to operating cash flow ratio is around 37.81, highlighting its valuation relative to sales and cash flow [4] Financial Health - The debt-to-equity ratio stands at approximately 1.92, indicating a higher reliance on debt financing [5][6] - The current ratio is about 0.77, suggesting potential liquidity challenges in covering short-term liabilities with current assets [5][6] - The negative earnings yield of -10.41% is consistent with the negative P/E ratio, indicating challenges in profitability [4]

Financial Performance - The company reported a net loss attributable to common shareholders of $28.6 million, or $0.48 per diluted common share, for the three months ended September 30, 2025, compared to a net loss of $27.0 million, or $0.32 per diluted common share, for the same period in 2024[162]. - A decrease in same store net operating income (NOI) of 6.7% to $54.1 million for the three months ended September 30, 2025, compared to $57.9 million for the same period in 2024[162]. - FFO attributable to common shareholders was $10.1 million for the three months ended September 30, 2025, compared to $19.5 million for the same period in 2024[195]. - The company reported a net loss of $35.0 million in Q3 2025 compared to a net loss of $31.3 million in Q3 2024[201]. - Same store NOI decreased $3.9 million, or 6.7%, to $54.1 million for the three months ended September 30, 2025 from $57.9 million for the same period in 2024[199]. - Same store NOI decreased $9.6 million, or 5.4%, to $168.7 million for the nine months ended September 30, 2025 from $178.4 million for the same period in 2024[199]. Revenue and Occupancy - As of September 30, 2025, the operating multifamily portfolio occupancy was 87.2%, an increase of 140 basis points compared to June 30, 2025[156]. - The effective rents for new leases decreased by 0.8% while renewal rents increased by 4.6% with a renewal rate of 56.3% across the portfolio[156]. - The operating commercial portfolio occupancy was 75.7% as of September 30, 2025, an increase of 90 basis points compared to June 30, 2025[157]. - Property rental revenue decreased by approximately $36.5 million, or 10.5%, to $312.0 million in 2025 from $348.5 million in 2024, primarily due to a $36.3 million decrease in revenue from commercial assets[180]. - Property rental revenue for the multifamily segment decreased by $8.2 million, or 14.5%, to $48.3 million in Q3 2025 from $56.5 million in Q3 2024[207]. - Property revenue for the commercial segment decreased by $3.5 million, or 5.9%, to $56.8 million in Q3 2025 from $60.3 million in Q3 2024[208]. Asset Sales and Acquisitions - The company sold three multifamily assets and one development parcel for total gross sales proceeds of $546.0 million during the nine months ended September 30, 2025[155]. - The company acquired Tysons Dulles Plaza and a 45.0% interest in an unconsolidated real estate venture that owned 1101 17th Street during the nine months ended September 30, 2025[166]. - Gain on the sale of real estate was $47.0 million in 2025, primarily due to the sale of WestEnd25[191]. Expenses and Liabilities - Interest expense increased by approximately $8.2 million, or 8.4%, to $105.6 million in 2025 from $97.4 million in 2024, influenced by higher interest on term loans and an increased balance on the revolving credit facility[179]. - General and administrative expense: corporate and other increased by approximately $1.6 million, or 3.7%, to $45.5 million in 2025 from $43.9 million in 2024[187]. - General and administrative expense: third-party real estate services decreased by approximately $13.4 million, or 23.4%, to $43.7 million in 2025 from $57.1 million in 2024[188]. - Impairment loss increased by approximately $26.8 million, or 147.1%, to $45.1 million in 2025 from $18.2 million in 2024, primarily related to 2200 Crystal Drive[179]. - Real estate taxes expense decreased by approximately $2.9 million, or 7.2%, to $37.1 million in 2025 from $40.0 million in 2024, primarily due to reductions related to disposed properties[179]. Shareholder Actions - The company intends to continue repurchasing shares through its share repurchase plan, which had a capacity of $436.3 million as of September 30, 2025[155]. - The company repurchased and retired 26.4 million common shares for $435.3 million, with a weighted average purchase price per share of $16.46[167]. - The company repurchased and retired 3.1 million common shares for $62.9 million during the three months ended September 30, 2025, at a weighted average purchase price of $20.21 per share[230]. - The company declared a quarterly dividend of $0.175 per common share, payable on November 20, 2025[167]. Development and Future Plans - The company has 10.7 million square feet of estimated potential development density in its development pipeline[159]. - The company anticipates capital expenditures of $26.1 million to complete ongoing construction projects, primarily over the next year[239]. - As of September 30, 2025, the company had one asset under construction, requiring an additional $26.1 million to complete, primarily to be expended over the next year[248]. Debt and Financing - The company had outstanding debt of $2.5 billion as of September 30, 2025, down from $2.6 billion as of December 31, 2024[236]. - The company expects to satisfy material cash requirements through cash flows from operations, distributions from real estate ventures, and undrawn capacity under its revolving credit facility of $585.2 million as of September 30, 2025[239]. - The weighted average interest rate for the revolving credit facility was 5.73% as of September 30, 2025[227]. - The estimated fair value of the company's consolidated debt was $2.5 billion as of September 30, 2025[259]. Legal and Environmental Matters - The District of Columbia filed a lawsuit against the company and others, seeking $185.0 million in compensatory damages related to alleged construction deficiencies[250]. - The company maintains general liability insurance with limits of $100.0 million per occurrence and property insurance coverage with limits of $1.0 billion per occurrence[245]. - The company may not be able to obtain equivalent insurance coverage at reasonable costs in the future, which could adversely affect financing capabilities[247]. - Environmental liabilities totaled $17.5 million as of September 30, 2025, included in "Other liabilities, net" in the balance sheets[257].

Financial Performance - Core FFO attributable to common shares for Q3 2025 was $9.1 million, or $0.15 per diluted share[14] - Funds From Operations (FFO) for the third quarter of 2025 was $10.1 million, or $0.17 per diluted share, down from $19.5 million, or $0.23 per diluted share in the third quarter of 2024[38] - Core FFO for the third quarter of 2025 was $9.1 million, or $0.15 per diluted share, compared to $19.3 million, or $0.23 per diluted share in the same quarter of 2024[38] - For the three months ended September 30, 2025, the net loss attributable to common shareholders was $28.6 million, or $(0.48) per diluted share, compared to a net loss of $27.0 million, or $(0.32) per diluted share for the same period in 2024[38] - Total revenue for Q3 2025 was $123,870,000, a decrease of 9% compared to $136,026,000 in Q3 2024[81] - Net loss attributable to common shareholders for Q3 2025 was $28,555,000, compared to a net loss of $26,980,000 in Q3 2024[89] - Total expenses for Q3 2025 were $124,778,000, a decrease of 4% from $129,756,000 in Q3 2024[81] - EBITDA for Q3 2025 was $49,807,000, down from $56,676,000 in Q3 2024, indicating a decline of 12%[84] - The company experienced a real estate impairment loss of $4,771,000 in Q3 2025, compared to no impairment loss in Q3 2024[89] Portfolio Occupancy and Leasing - Multifamily portfolio ended the quarter at 89.1% leased and 87.2% occupied, while office portfolio ended at 77.6% leased and 75.7% occupied[14] - 100% of Q3 leasing activity was with tenants in the defense and technology industries, highlighting strong demand in National Landing[24] - The operating multifamily portfolio was 89.1% leased and 87.2% occupied as of September 30, 2025, compared to 89.0% leased and 85.8% occupied as of June 30, 2025[44] - The occupancy rate for the operating portfolio was 82.3%, with a percentage leased of 80.4%[121] - The overall occupancy rate for operating assets is 89.1%, with a weighted average rent of $2,605 per unit[179] Development and Construction - As of September 30, 2025, there were 19 assets in the development pipeline, representing an estimated potential development density of 8.7 million square feet[42] - The company entitled two obsolete office buildings for conversion: 2100 Crystal Drive into a 345-key hotel and 2200 Crystal Drive into approximately 195 multifamily units[8] - The Valen multifamily project in National Landing has an estimated total investment of $179.881 million, with a projected NOI yield of 6.0%[191] - The estimated potential development density for the RiverHouse Land project is 2,046,900 square feet, with 1,515 units planned[193] - The company has a total of 7,685 units planned across its development pipeline, with 5,390 units in National Landing, 1,465 units in DC, and 300 units in Other VA[193] Financial Ratios and Debt - As of September 30, 2025, the total enterprise value was approximately $4.0 billion, with net debt to annualized Adjusted EBITDA at 12.6x[48] - The company reported a net debt of $2,419,544,000 as of September 30, 2025, down from $2,540,748,000 in 2024[84] - The company reported a net debt to annualized adjusted EBITDA ratio of 12.6x as of September 30, 2025, compared to 10.6x for the same period in 2024[133] - Total consolidated and unconsolidated indebtedness at JBG SMITH Share was $2.49 billion, with a net debt of $2.42 billion[115] - The weighted average interest rate for total debt was 5.12%[119] Shareholder Returns and Equity - The company repurchased 26.8 million shares at an average price of $16.52 per share, totaling $443.1 million in 2025[12] - A quarterly dividend of $0.175 per common share was declared on October 23, 2025, payable on November 20, 2025[46] - Total equity decreased from $1,809,058,000 to $1,190,581,000, representing a decline of approximately 34.2%[78] Revenue and Income Metrics - Annualized NOI decreased by 3.8% quarter over quarter, totaling $232.9 million, excluding sold and recapitalized assets[14] - Same Store NOI (SSNOI) decreased by 6.7% quarter-over-quarter to $54.1 million for the three months ended September 30, 2025, primarily due to lower occupancy and higher operating expenses[44] - The annualized base rent of signed leases not yet commenced was $8,384,000, indicating potential future revenue[161] - Property rental revenue for the nine months ended September 30, 2025, was $311,989, down 10.5% from $348,521 for the same period in 2024[126] Market Conditions and Future Outlook - The company anticipates potential impacts on its portfolio due to federal government spending adjustments and economic conditions in the Northern Virginia area[103] - Approximately 75.0% of JBG SMITH's holdings are concentrated in the National Landing submarket, driven by key demand factors including Amazon's headquarters and Virginia Tech's $1 billion Innovation Campus[105]

Financial Performance - Core FFO attributable to common shares was $9.1 million, or $0.15 per diluted share for the three months ended September 30, 2025[14] - Annualized NOI decreased 3.8% quarter over quarter, totaling $232.9 million, excluding certain assets[14] - Same Store NOI decreased 6.7% for the three months ended September 30, 2025[14] - Net Debt to Annualized Adjusted EBITDA was 12.6x as of September 30, 2025[15] Portfolio Operations - Multifamily portfolio was 89.1% leased and 87.2% occupied as of September 30, 2025[14] - Same Store multifamily portfolio was 93.1% leased and 92.2% occupied[18] - Office portfolio was 77.6% leased and 75.7% occupied as of September 30, 2025[14] - 182,000 square feet of office space was leased with a weighted average lease term of 4.3 years[8] Capital Allocation - 26.8 million shares were repurchased this year at an average price of $16.52 per share, totaling $443.1 million[12] - Since 2020, 83.6 million shares have been repurchased at an average price of $18.79 per share, totaling $1.6 billion[12]

Core Viewpoint - JBG SMITH is set to report its third quarter 2025 financial results on October 28, 2025, with the investor package available on its website [1]. Company Overview - JBG SMITH specializes in owning, operating, and developing mixed-use properties in the Washington, DC area, particularly in the National Landing submarket, which is expected to have long-term growth potential [2]. - Approximately 75% of JBG SMITH's properties are located in the National Landing submarket, driven by key factors such as Amazon's headquarters, Virginia Tech's $1 billion Innovation Campus, proximity to the Pentagon, and various placemaking initiatives [2]. - The company's portfolio includes 12 million square feet of multifamily, office, and retail assets, with 98% being Metro-served [2]. - JBG SMITH has a development pipeline of 8.7 million square feet focused on mixed-use, primarily multifamily projects [2]. - The company is committed to developing green, smart, and healthy buildings, aiming for carbon-neutral operations annually [2].

Core Viewpoint - JBG SMITH Properties (NYSE: JBGS) has achieved a total return of 57% since the last analysis published on February 24, 2024, indicating strong performance and potential for further growth [1]. Group 1 - The total return of JBG SMITH Properties is significantly higher than the S&P index, suggesting a favorable investment environment for the company [1].

Core Viewpoint - Evercore ISI has reduced the price target for JBG Smith (JBGS) from $20 to $19, maintaining an Underperform rating on the shares, following adjustments made after a recent REIT conference [1] Summary by Category Price Target Adjustment - The price target for JBG Smith (JBGS) has been lowered to $19 from $20 [1] Rating - Evercore ISI continues to hold an Underperform rating on JBG Smith (JBGS) shares [1] Market Insights - The adjustments in the model were influenced by insights gained from company meetings and broader market conditions discussed at the recent REIT conference [1]

PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements and notes for periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's financial position (assets, liabilities, equity) as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs. Dec 31, 2024) | | :----------------------------- | :----------------------------- | :----------------------------- | :------------------------- | | Total Assets | $4,549,295 | $5,020,540 | -$471,245 (-9.4%) | | Total Liabilities | $2,683,299 | $2,787,850 | -$104,551 (-3.7%) | | Total Equity | $1,322,793 | $1,809,058 | -$486,265 (-26.9%) | | Real estate, net | $3,775,688 | $4,111,459 | -$335,771 (-8.2%) | | Cash and cash equivalents | $61,432 | $145,804 | -$84,372 (-57.9%) | | Mortgage loans, net | $1,540,670 | $1,767,173 | -$226,503 (-12.8%) | | Revolving credit facility | $226,000 | $85,000 | +$141,000 (+165.9%) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Presents revenues, expenses, and net loss for the three and six months ended June 30, 2025, and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Total revenue | $126,479 | $135,320 | -6.5% | $247,165 | $280,504 | -11.9% | | Total expenses | $128,214 | $138,434 | -7.4% | $254,949 | $283,177 | -9.9% | | Net loss | $(23,181) | $(33,414) | +30.6% | $(76,879) | $(75,604) | -1.7% | | Net loss attributable to common shareholders | $(19,241) | $(24,373) | +21.1% | $(64,961) | $(56,649) | -14.7% | | Loss per common share - Basic and Diluted | $(0.29) | $(0.27) | -7.4% | $(0.87) | $(0.63) | -38.1% | | Gain on the sale of real estate, net | $41,832 | $89 | * | $42,369 | $286 | * | | Impairment loss | $(31,813) | $(1,025) | * | $(40,296) | $(18,236) | +121.0% | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Presents net loss and comprehensive loss for the three and six months ended June 30, 2025, and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Net loss | $(23,181) | $(33,414) | +30.6% | $(76,879) | $(75,604) | -1.7% | | Total other comprehensive income (loss) | $(8,115) | $(2,451) | -231.1% | $(18,942) | $11,968 | * | | Comprehensive loss attributable to JBG SMITH Properties | $(25,794) | $(26,895) | +4.1% | $(80,457) | $(47,861) | -68.1% | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Outlines changes in total equity, including share repurchases and dividends, for the periods presented | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------- | :------------ | :---------------- | :------------------------ | | Total equity | $1,322,793 | $1,809,058 | -$486,265 (-26.9%) | | Common shares repurchased (6 months) | $(372,848) | $(118,158) (FY2024) | -215.5% | | Dividends declared on common shares (6 months) | $(12,434) | $(32,171) (FY2024) | +61.3% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | | Net cash provided by operating activities | $31,752 | $60,813 | -47.8% | | Net cash provided by investing activities | $270,724 | $61,992 | +336.7% | | Net cash used in financing activities | $(394,706) | $(117,344) | -236.4% | | Net increase (decrease) in cash and cash equivalents, and restricted cash | $(92,230) | $5,461 | * | | Cash and cash equivalents, and restricted cash, end of period | $90,962 | $205,902 | -55.8% | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Organization and Basis of Presentation](index=13&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation) This note describes the company's structure as a REIT and its primary business operations in the Washington, D.C. metropolitan area - JBG SMITH is a Maryland real estate investment trust (REIT) focused on owning, operating, and developing mixed-use properties in the Washington, D.C. metropolitan area, with approximately **75.0% of its holdings in the National Landing submarket**[23](index=23&type=chunk) - The company conducts substantially all its operations through JBG SMITH Properties LP, where it holds an **81.5% ownership interest** as of June 30, 2025[24](index=24&type=chunk) - As of June 30, 2025, the Operating Portfolio consisted of **38 operating assets** (15 multifamily, 21 commercial, 2 land assets) and **20 development assets** (1 under-construction multifamily, 19 in development pipeline)[25](index=25&type=chunk) [2. Summary of Significant Accounting Policies](index=15&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and policies applied in preparing the financial statements, including recent accounting pronouncements - There were no material changes to the significant accounting policies disclosed in the Annual Report[32](index=32&type=chunk) - The company is evaluating the potential impact of ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures," effective for annual periods beginning after December 15, 2026[34](index=34&type=chunk) - The company is evaluating the potential impact of ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," effective for annual periods beginning after December 1