JBG SMITH(US:JBGS)2020-05-05 20:18Portfolio Overview - As of March 31, 2020, the operating portfolio consisted of 64 assets, including 44 commercial assets totaling 13.3 million square feet and 20 multifamily assets totaling 7,367 units[131]. Rent Collections - Rent collections for commercial office assets were 96.7% on a consolidated basis, down from a historical average of 99.7% in 2019[138]. - Rent collections for multifamily assets were 96.1%, compared to a historical average of 99.9% in 2019[138]. - Rent collections for commercial retail assets were 50.9%, significantly lower than the 98.4% historical average[138]. Revenue and Income - Net income attributable to common shareholders for Q1 2020 was $42.9 million, or $0.32 per diluted share, compared to $24.9 million, or $0.20 per diluted share in Q1 2019, reflecting a significant increase[147]. - Property rentals revenue increased by approximately $967,000, or 0.8%, to $120.4 million in Q1 2020 from $119.4 million in Q1 2019, driven by new properties and tenant reimbursements[153]. - Third-party real estate services revenue rose by approximately $2.0 million, or 7.3%, to $29.7 million in Q1 2020 from $27.7 million in Q1 2019, primarily due to increased development fee income[154]. - Same store NOI increased by 5.2% to $78.5 million in Q1 2020 compared to $74.6 million in Q1 2019[147]. - Total property revenue for Q1 2020 was $126.8 million, slightly up from $125.9 million in Q1 2019[187]. - Total property expenses increased to $52.7 million in Q1 2020 from $49.4 million in Q1 2019, an increase of 4.8%[187]. Leasing and Occupancy - Operating commercial portfolio leased and occupied percentages were 91.0% and 88.7% as of March 31, 2020, compared to 91.4% and 88.2% as of December 31, 2019[147]. - Operating multifamily portfolio leased and occupied percentages were 87.0% and 84.5% as of March 31, 2020, down from 89.5% and 87.2% as of December 31, 2019[147]. Debt and Financing - The company had a total outstanding debt of $1.8 billion as of March 31, 2020, an increase of $172.8 million from $1.6 billion as of December 31, 2019[218]. - Increased interest expense from borrowings for liquidity included a $200.0 million draw under the revolving credit facility in March 2020 and a $300.0 million draw in April 2020[138]. - Scheduled debt maturities for 2020 totaled $97.1 million on a consolidated basis, with plans to refinance a significant portion before maturity[211]. - The company entered into a mortgage loan with a principal balance of $175.0 million during the three months ended March 31, 2020, and refinanced another mortgage, increasing its principal balance to $117.3 million[196]. Cash Flow - Cash and cash equivalents increased by $171.5 million to $314.0 million as of March 31, 2020, compared to $142.5 million as of December 31, 2019[218]. - The company reported net cash provided by operating activities of $41.9 million for the three months ended March 31, 2020, compared to $17.9 million for the same period in 2019[217]. - Net cash provided by investing activities was $44.2 million, primarily from $117.7 million in real estate sales, offset by $68.7 million in development costs[226]. Shareholder Returns - The company declared a quarterly dividend of $0.225 per common share, payable on May 27, 2020[153]. - The company repurchased and retired 1.4 million common shares for $41.2 million, averaging $29.01 per share[147]. Development and Projects - The company anticipates delays in development projects due to supply chain and labor disruptions, with one project delayed by two quarters[141]. - The company plans to market over $500 million of assets for sale in 2020, expecting to transact on at least $200 million[142]. Environmental and Risk Management - Environmental liabilities were reported at $17.9 million as of March 31, 2020, consistent with the previous reporting period[243]. - The company evaluates the default risk of counterparties by monitoring their creditworthiness, which could materially affect expenses, net income, and equity[250]. Interest Rate Exposure - The company is exposed to interest rate fluctuations, with variable rate debt totaling $177.2 million at an average effective interest rate of 2.35%[245]. - A 1% change in base rates would result in an increase of $1.797 million in interest expense for the variable rate mortgages payable as of March 31, 2020[245].