JBG SMITH(US:JBGS)2025-10-28 20:15Financial 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]