JBG SMITH(US:JBGS)2025-10-28 20:17Financial 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].