JBG SMITH(JBGS) - 2025 Q2 - Quarterly Report

PART I Item 1. Financial Statements Presents unaudited condensed consolidated financial statements and notes for periods ended June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets 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 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 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 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 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 This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements 1. Organization and Basis of Presentation 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] - 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] - 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] 2. Summary of Significant Accounting Policies 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] - 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] - 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