Core Viewpoint - JBG SMITH will report its fourth quarter and year-end 2025 financial results on February 17, 2026, after market close [1] Company Overview - JBG SMITH is a prominent owner, operator, and developer of mixed-use properties in the Washington, DC market, focusing on amenity-rich, Metro-served submarkets [2] - The company has a significant presence in the National Landing submarket, with approximately 75.0% of its holdings located there, driven by key demand factors such as Amazon's headquarters and Virginia Tech's $1 billion Innovation Campus [2] - JBG SMITH's portfolio includes 11.8 million square feet of multifamily, office, and retail assets, with 98% being Metro-served [2] - The company has a development pipeline of 8.7 million square feet, primarily focused on mixed-use and multifamily opportunities [2] - JBG SMITH is dedicated to developing green, smart, and healthy buildings [2]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - JBG SMITH has declared a quarterly dividend of $0.175 per common share, reflecting its commitment to returning value to shareholders [1] Company Summary - JBG SMITH is a leading owner, operator, and developer of mixed-use properties in the Washington, DC market [1] - The dividend will be paid on January 13, 2026, to shareholders of record as of December 30, 2025 [1]

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]