JBG SMITH(US:JBGS)2025-04-29 20:16Portfolio Overview - As of March 31, 2025, the operating portfolio consisted of 37 assets, including 15 multifamily assets totaling 6,459 units and 20 commercial assets totaling 6.5 million square feet[142]. - The company delivered The Grace and Reva with 808 multifamily units and approximately 38,000 square feet of retail space in 2024[143]. - The company expects to deliver Valen, a 355-unit multifamily tower, later in 2025[143]. Financial Performance - The net loss attributable to common shareholders for Q1 2025 was $45.7 million, or $0.56 per diluted common share, compared to a net loss of $32.3 million, or $0.36 per diluted common share in Q1 2024[150]. - Same store net operating income (NOI) decreased by 5.5% to $63.1 million for Q1 2025 compared to $66.8 million in Q1 2024[150]. - Property rental revenue decreased by approximately $21.1 million, or 17.2%, to $101.5 million in Q1 2025 from $122.6 million in Q1 2024, primarily due to a $25.0 million decrease in revenue from commercial assets[158]. - Third-party real estate services revenue decreased by approximately $3.0 million, or 16.5%, to $14.9 million in Q1 2025 from $17.9 million in Q1 2024[159]. - Same store NOI decreased by $3.7 million, or 5.5%, to $63.1 million for Q1 2025 from $66.8 million for Q1 2024, attributed to lower occupancy and higher utilities expense[173]. - Net loss attributable to common shareholders increased to $45.72 million in Q1 2025 from $32.28 million in Q1 2024, representing a 41.7% increase[175]. - Multifamily property revenue increased by $2.8 million, or 5.3%, to $55.2 million in Q1 2025 from $52.4 million in Q1 2024[181]. - Commercial property revenue decreased by $13.9 million, or 20.7%, to $53.5 million in Q1 2025 from $67.4 million in Q1 2024[182]. Occupancy Rates - The in-service multifamily portfolio was 94.3% occupied as of March 31, 2025, a decrease of 50 basis points from December 31, 2024[147]. - The office portfolio occupancy was 76.4% as of March 31, 2025, a decrease of 10 basis points from December 31, 2024[148]. Expenses and Costs - Depreciation and amortization expense decreased by approximately $9.3 million, or 16.3%, to $47.6 million in Q1 2025 from $56.9 million in Q1 2024[160]. - Interest expense increased by approximately $5.0 million, or 16.7%, to $35.2 million in Q1 2025 from $30.2 million in Q1 2024[165]. - Total property expenses for multifamily and commercial segments increased to $21.71 million and $20.62 million respectively in Q1 2025[180]. - Impairment loss was $8.5 million in Q1 2025, down from $17.2 million in Q1 2024, related to a development parcel[166]. Shareholder Actions - The company has a share repurchase plan with a capacity of $684.1 million as of March 31, 2025[146]. - The company repurchased and retired 12.2 million common shares for $187.5 million, at a weighted average purchase price of $15.43 per share[156]. - The Board of Trustees increased the common share repurchase authorization to $2.0 billion, with 12.2 million shares repurchased for $187.5 million at an average price of $15.43 during Q1 2025[198]. - The company paid dividends totaling $14.8 million and distributions to redeemable noncontrolling interests of $2.8 million[156]. Cash Flow and Debt - Net cash provided by operating activities was $12.9 million for Q1 2025, down from $37.0 million in Q1 2024[203]. - Cash and cash equivalents decreased by $62.9 million to $120.3 million as of March 31, 2025, primarily due to $237.1 million used in financing activities[204]. - Net cash provided by investing activities was $161.3 million, mainly from $188.8 million in real estate sales[206]. - Outstanding debt was $2.5 billion as of March 31, 2025, down from $2.6 billion at the end of 2024[204]. - The company’s mortgage loans totaled $1.64 billion as of March 31, 2025, down from $1.78 billion at the end of 2024[186]. - The company anticipates that cash flows from continuing operations will be adequate to fund business operations and debt service[185]. - As of March 31, 2025, the company had material cash requirements totaling $338.0 million due in 2025 and 2026 for debt service obligations[200]. Interest Rate Management - The effective interest rate for the revolving credit facility was 5.90% as of March 31, 2025[195]. - The company had variable rate mortgage loans totaling $535,457 thousand with a weighted average effective interest rate of 5.55% as of March 31, 2025[225]. - Interest rate swap and cap agreements had an aggregate notional value of $1.4 billion as of March 31, 2025, down from $2.0 billion as of December 31, 2024[230]. - The fair value of interest rate swaps and caps designated as effective hedges was $14.5 million in assets and $4.3 million in liabilities as of March 31, 2025[230]. - The company follows established risk management policies to hedge interest rate risk using derivative financial instruments[228]. - The company assesses the effectiveness of its hedges both at inception and on an ongoing basis, impacting expenses and net income[229].