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JBG SMITH Announces Third Quarter 2024 Results

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JBG SMITH (NYSE: JBGS) reported its Q3 2024 financial results, showing a net loss of $27.0 million ($0.32 per share). The company's FFO was $19.5 million ($0.23 per share) and Core FFO was $19.3 million ($0.23 per share). The operating multifamily portfolio was 92.7% leased with 90.6% occupancy, while the commercial portfolio stood at 80.7% leased with 79.1% occupancy. Annualized NOI decreased to $282.4 million from $286.4 million in Q2 2024. The company sold Fort Totten Square for $86.8 million and repurchased 3.1 million common shares for $50.2 million.

JBG SMITH (NYSE: JBGS) ha riportato i risultati finanziari per il terzo trimestre del 2024, mostrando una perdita netta di $27,0 milioni ($0,32 per azione). L'FFO dell'azienda è stato di $19,5 milioni ($0,23 per azione) e l'FFO Core di $19,3 milioni ($0,23 per azione). Il portafoglio multifamiliare operativo era affittato al 92,7% con un tasso di occupazione del 90,6%, mentre il portafoglio commerciale era affittato all'80,7% con un tasso di occupazione del 79,1%. Il NOI annualizzato è sceso a $282,4 milioni rispetto ai $286,4 milioni nel secondo trimestre del 2024. L'azienda ha venduto Fort Totten Square per $86,8 milioni e ha riacquistato 3,1 milioni di azioni ordinarie per $50,2 milioni.

JBG SMITH (NYSE: JBGS) informó sus resultados financieros del tercer trimestre de 2024, mostrando una pérdida neta de $27,0 millones ($0,32 por acción). El FFO de la compañía fue de $19,5 millones ($0,23 por acción) y el FFO principal fue de $19,3 millones ($0,23 por acción). El portafolio multifamiliar operativo estaba arrendado al 92,7% con una ocupación del 90,6%, mientras que el portafolio comercial estaba arrendado al 80,7% con una ocupación del 79,1%. El NOI anualizado disminuyó a $282,4 millones desde $286,4 millones en el segundo trimestre de 2024. La compañía vendió Fort Totten Square por $86,8 millones y recompró 3,1 millones de acciones comunes por $50,2 millones.

JBG SMITH (NYSE: JBGS)는 2024년 3분기 재무 결과를 보고했으며, 순손실이 $27.0 백만($0.32 주당)으로 나타났습니다. 회사의 FFO는 $19.5 백만($0.23 주당)였고 Core FFO는 $19.3 백만($0.23 주당)이었습니다. 운영 다가구 포트폴리오는 92.7% 임대되었으며, 점유율은 90.6%였습니다. 한편 상업 포트폴리오는 80.7% 임대되고 점유율은 79.1%였습니다. 연간 NOI는 2024년 2분기의 $286.4 백만에서 $282.4 백만으로 감소했습니다. 회사는 Fort Totten Square를 $86.8 백만에 판매하고 $50.2 백만에 3.1 백만 주의 일반 주식을 재구매했습니다.

JBG SMITH (NYSE: JBGS) a publié ses résultats financiers pour le troisième trimestre de 2024, montrant une perte nette de 27,0 millions USD (0,32 USD par action). Le FFO de l'entreprise s'élevait à 19,5 millions USD (0,23 USD par action) et le Core FFO à 19,3 millions USD (0,23 USD par action). Le portefeuille multifamilial opérationnel était loué à 92,7 % avec un taux d'occupation de 90,6 %, tandis que le portefeuille commercial était loué à 80,7 % avec un taux d'occupation de 79,1 %. Le NOI annualisé a diminué pour atteindre 282,4 millions USD contre 286,4 millions USD au deuxième trimestre 2024. L'entreprise a vendu Fort Totten Square pour 86,8 millions USD et a racheté 3,1 millions d'actions ordinaires pour 50,2 millions USD.

JBG SMITH (NYSE: JBGS) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und einen Nettoverlust von 27,0 Millionen USD (0,32 USD pro Aktie) berichtet. Das FFO des Unternehmens betrug 19,5 Millionen USD (0,23 USD pro Aktie) und das Core FFO lag bei 19,3 Millionen USD (0,23 USD pro Aktie). Das operative Mehrfamilienportfolio war zu 92,7 % vermietet und hatte eine Belegungsquote von 90,6 %, während das kommerzielle Portfolio zu 80,7 % vermietet und eine Belegungsrate von 79,1 % aufwies. Der annualisierte NOI ging von 286,4 Millionen USD im zweiten Quartal 2024 auf 282,4 Millionen USD zurück. Das Unternehmen verkaufte Fort Totten Square für 86,8 Millionen USD und rep-buyte 3,1 Millionen Stammaktien für 50,2 Millionen USD.

Positive
  • Same Store NOI increased 0.5% quarter-over-quarter to $68.6 million
  • Multifamily rental rates increased 4.5% for new leases and 6.1% for renewals
  • Office leases showed positive rental rate growth: 1.2% cash basis, 8.4% GAAP basis
  • Successfully executed 150,000 square feet of office leases in Q3 2024
Negative
  • Net loss of $27.0 million in Q3 2024, increased from previous year
  • FFO decreased to $19.5 million from $40.1 million year-over-year
  • Commercial portfolio occupancy declined to 79.1% from 80.6% quarter-over-quarter
  • Multifamily occupancy decreased to 90.6% from 94.3% quarter-over-quarter
  • High leverage with Net Debt to Adjusted EBITDA at 10.6x

Insights

The Q3 2024 results reveal concerning trends for JBG SMITH. The company reported a $27.0 million net loss ($0.32 per share), compared to a $58.0 million loss in Q3 2023. Core FFO declined significantly to $19.3 million ($0.23 per share) from $41.0 million ($0.40 per share) year-over-year.

Operational metrics show weakness with multifamily occupancy dropping to 90.6% from 94.3% quarter-over-quarter, while commercial portfolio occupancy declined to 79.1% from 80.6%. The elevated Net Debt to Adjusted EBITDA ratio of 10.6x indicates significant leverage concerns.

The sale of Fort Totten Square for $86.8 million and share repurchases suggest a focus on portfolio optimization and capital return, but fundamental challenges persist in both office and multifamily segments.

The DC market continues to present challenges for JBGS, particularly in the office sector. New office leasing volume of only 46,000 square feet this quarter reflects persistent weakness in demand. While achieving modest rental rate increases of 1.2% on a cash basis for second-generation leases, the low leasing volume and declining occupancy trends suggest continued market softness.

The multifamily portfolio's performance is concerning, with significant occupancy declines in the overall portfolio, though the In-Service segment maintains stronger metrics. Rent growth remains positive with 4.5% increases on new leases and 6.1% on renewals, but increased concessions and operating expenses are pressuring NOI growth.

BETHESDA, Md.--(BUSINESS WIRE)-- JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended September 30, 2024 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our Third Quarter 2024 Investor Package, which is posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in that document.

Third Quarter 2024 Highlights

  • Net loss, Funds From Operations ("FFO") and Core FFO attributable to common shareholders were:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THIRD QUARTER AND YEAR-TO-DATE COMPARISON

in millions, except per share amounts

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

 

 

 

Amount

Per Diluted

Share

 

Amount

Per Diluted

Share

 

Amount

Per Diluted

Share

 

Amount

Per Diluted

Share

 

Net loss (1) (2)

 

$

(27.0

)

$

(0.32

)

 

$

(58.0

)

$

(0.58

)

 

$

(83.6

)

$

(0.95

)

 

$

(47.4

)

$

(0.45

)

 

FFO (2)

 

$

19.5

 

$

0.23

 

 

$

40.1

 

$

0.40

 

 

$

44.5

 

$

0.50

 

 

$

106.5

 

$

0.98

 

 

Core FFO

 

$

19.3

 

$

0.23

 

 

$

41.0

 

$

0.40

 

 

$

62.3

 

$

0.69

 

 

$

118.0

 

$

1.09

 

_____________

(1)

Includes loss on the sale of real estate of $5.4 million and $5.1 million for the three and nine months ended September 30, 2024. Includes gain on the sale of real estate of $41.6 million for the nine months ended September 30, 2023. Includes impairment loss of $59.3 million related to real estate assets, and impairment losses recorded by our unconsolidated real estate ventures, of which our proportionate share was $3.3 million, for the three and nine months ended September 30, 2023.

(2)

Includes impairment loss of $18.2 million related to non-depreciable real estate assets for the nine months ended September 30, 2024.

  • Annualized Net Operating Income ("NOI") for the three months ended September 30, 2024 was $282.4 million, compared to $286.4 million for the three months ended June 30, 2024, at our share. Excluding the assets that were sold or taken out of service, Annualized NOI for the three months ended September 30, 2024 was $278.1 million, compared to $278.4 million for the three months ended June 30, 2024, at our share.
    • The decrease in Annualized NOI excluding the assets that were sold or taken out of service was substantially attributable to (i) tenant vacates, partially offset by lower real estate tax expense as a result of successful appeals in our commercial portfolio; and (ii) transitioning The Grace and Reva into the operating portfolio, partially offset by higher concessions at certain assets in our multifamily portfolio.
  • Same Store NOI ("SSNOI") at our share increased 0.5% quarter-over-quarter to $68.6 million for the three months ended September 30, 2024.
    • The increase in SSNOI was substantially attributable to (i) higher rents and occupancy and lower concessions, partially offset by higher operating expenses in our multifamily portfolio; and (ii) lower occupancy and recovery revenue in our commercial portfolio, partially offset by lower real estate taxes.

Operating Portfolio

  • The operating multifamily portfolio was 92.7% leased and 90.6% occupied as of September 30, 2024, compared to 96.9% and 94.3% as of June 30, 2024. Our operating In-Service multifamily portfolio was 97.0% leased and 95.7% occupied as of September 30, 2024, compared to 96.9% and 94.3% as of June 30, 2024.
  • In our Same Store multifamily portfolio, we increased effective rents by 4.5% for new leases and 6.1% upon renewal for third quarter lease expirations while achieving a 60.0% renewal rate.
  • The operating commercial portfolio was 80.7% leased and 79.1% occupied as of September 30, 2024, compared to 82.3% and 80.6% as of June 30, 2024, at our share.
  • Executed approximately 150,000 square feet of office leases at our share during the three months ended September 30, 2024, including approximately 46,000 square feet of new leases. Second-generation leases generated a 1.2% rental rate increase on a cash basis and an 8.4% rental rate increase on a GAAP basis.
  • Executed approximately 496,000 square feet of office leases at our share during the nine months ended September 30, 2024, including approximately 241,000 square feet of new leases. Second-generation leases generated a 1.5% rental rate increase on a cash basis and a 9.6% rental rate increase on a GAAP basis.

Development Portfolio

Under-Construction

  • As of September 30, 2024, we had one multifamily asset under construction consisting of 775 units at our share.
  • In the second quarter, The Grace and Reva (formerly known collectively as 1900 Crystal Drive) were placed into the operating multifamily portfolio as recently delivered.

Development Pipeline

  • As of September 30, 2024, we had 18 assets in the development pipeline consisting of 9.3 million square feet of estimated potential development density at our share.

Third-Party Asset Management and Real Estate Services Business

  • For the three months ended September 30, 2024, revenue from third-party real estate services, including reimbursements, was $17.1 million. Excluding reimbursements and service revenue from our interests in real estate ventures, revenue from our third-party asset management and real estate services business was $8.3 million, primarily driven by $5.0 million of property and asset management fees, $1.6 million of other service revenue and $1.0 million of leasing fees.

Balance Sheet

  • As of September 30, 2024, our total enterprise value was approximately $4.3 billion, comprising 98.4 million common shares and units valued at $1.7 billion, and debt (net of premium / (discount) and deferred financing costs) at our share of $2.7 billion, less cash and cash equivalents at our share of $141.7 million.
  • As of September 30, 2024, we had $137.0 million of cash and cash equivalents ($141.7 million of cash and cash equivalents at our share), and $644.3 million of availability under our revolving credit facility.
  • Net Debt to annualized Adjusted EBITDA at our share for the three months ended September 30, 2024 was 10.6x, and our Net Debt / total enterprise value was 59.6% as of September 30, 2024.

Investing and Financing Activities

  • In September 2024, we sold Fort Totten Square, a multifamily asset with 345 units and 130,664 square feet of retail space in Washington, DC, for $86.8 million.
  • In September 2024, we repaid the $83.3 million mortgage loan collateralized by 201 12th Street S., 200 12th Street S. and 251 18th Street S.
  • In September 2024, we extended the maturity date of the $200.0 million Tranche A-1 Term Loan by one year to January 2026. The Tranche A-1 Term Loan has an additional one-year extension option that would extend the maturity date to January 2027.
  • We repurchased and retired 3.1 million common shares for $50.2 million, a weighted average purchase price per share of $16.23.

Dividends

  • On October 24, 2024, our Board of Trustees declared a quarterly dividend of $0.175 per common share, payable on November 22, 2024 to shareholders of record as of November 7, 2024.

About JBG SMITH

JBG SMITH owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC, most notably National Landing. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's new headquarters; Virginia Tech's under-construction $1 billion Innovation Campus; the submarket’s proximity to the Pentagon; and our retail and digital placemaking initiatives and public infrastructure improvements. JBG SMITH's dynamic portfolio currently comprises 13.1 million square feet of high-growth multifamily, office and retail assets at share, 98% of which are Metro-served. It also maintains a development pipeline encompassing 9.3 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually. For more information on JBG SMITH please visit www.jbgsmith.com.

Forward-Looking Statements

Certain statements contained herein may constitute "forward-looking statements" as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results, financial condition and business of JBG SMITH Properties ("JBG SMITH," the "Company," "we," "us," "our" or similar terms) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximate," "hypothetical," "potential," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or similar expressions in this earnings release. We also note the following forward-looking statements: whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet, estimated number of units and estimated potential development density are accurate; expected timing, completion, modifications and delivery dates for the projects we are developing; the ability of any or all of our demand drivers to materialize and their effect on economic impact, job growth, expansion of public transportation and related demand in the National Landing submarket; planned infrastructure and educational improvements related to Amazon's additional headquarters and the Virginia Tech Innovation Campus; our development plans related to National Landing; and our plans to maintain carbon neutral operations annually.

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10‑K for the year ended December 31, 2023 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

We present certain financial information and metrics in this release "at JBG SMITH Share," which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, "real estate ventures") as applied to these financial measures and metrics. Financial information "at JBG SMITH Share" is calculated on an asset-by-asset basis by applying our percentage economic interest to each applicable line item of that asset's financial information. "At JBG SMITH Share" information, which we also refer to as being "at share," "our pro rata share" or "our share," is not, and is not intended to be, a presentation in accordance with GAAP. Given that a portion of our assets are held through real estate ventures, we believe this form of presentation, which presents our economic interests in the partially owned entities, provides investors valuable information regarding a significant component of our portfolio, its composition, performance and capitalization.

We do not control the unconsolidated real estate ventures and do not have a legal claim to our co-venturers' share of assets, liabilities, revenue and expenses. The operating agreements of the unconsolidated real estate ventures generally allow each co-venturer to receive cash distributions to the extent there is available cash from operations. The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions.

With respect to any such third-party arrangement, we would not be in a position to exercise sole decision-making authority regarding the property, real estate venture or other entity, and may, under certain circumstances, be exposed to economic risks not present were a third-party not involved. We and our respective co-venturers may each have the right to trigger a buy-sell or forced sale arrangement, which could cause us to sell our interest, or acquire our co-venturers' interests, or to sell the underlying asset, either on unfavorable terms or at a time when we otherwise would not have initiated such a transaction. Our real estate ventures may be subject to debt, and the repayment or refinancing of such debt may require equity capital calls. To the extent our co-venturers do not meet their obligations to us or our real estate ventures or they act inconsistent with the interests of the real estate venture, we may be adversely affected. Because of these limitations, the non-GAAP "at JBG SMITH Share" financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP.

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 10.0% subordinated interest in one commercial building, our 33.5% subordinated interest in four commercial buildings and our 49.0% interest in three commercial buildings, as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures, as our investment in each real estate venture is zero, we do not anticipate receiving any near-term cash flow distributions from the real estate ventures, and we have not guaranteed their obligations or otherwise committed to providing financial support.

Non-GAAP Financial Measures

This release includes non-GAAP financial measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why JBG SMITH's management believes that the presentation of these measures provides useful information to investors regarding JBG SMITH's financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this earnings release. Our presentation of non-GAAP financial measures may not be comparable to similar non-GAAP measures used by other companies. In addition to "at share" financial information, the following non-GAAP measures are included in this release:

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre") and "Adjusted EBITDA" are non-GAAP financial measures. EBITDA and EBITDAre are used by management as supplemental operating performance measures, which we believe help investors and lenders meaningfully evaluate and compare our operating performance from period-to-period by removing from our operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps and caps) and certain non-cash expenses (primarily depreciation and amortization expense on our assets). EBITDAre is computed in accordance with the definition established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expense, gains and losses on sales of real estate and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. EBITDA and EBITDAre are not substitutes for net income (loss) (computed in accordance with GAAP) and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, income from investments, business interruption insurance proceeds, litigation settlement proceeds and share-based compensation expense related to the Formation Transaction and special equity awards. We believe that adjusting such items not considered part of our comparable operations, provides a meaningful measure to evaluate and compare our performance from period-to-period.

Because EBITDA, EBITDAre and Adjusted EBITDA have limitations as analytical tools, we use EBITDA, EBITDAre and Adjusted EBITDA to supplement GAAP financial measures. Additionally, we believe that users of these measures should consider EBITDA, EBITDAre and Adjusted EBITDA in conjunction with net income (loss) and other GAAP measures in understanding our operating results.

Funds from Operations ("FFO"), "Core FFO" and Funds Available for Distribution ("FAD") are non-GAAP financial measures. FFO is computed in accordance with the definition established by Nareit in the Nareit FFO White Paper - 2018 Restatement. Nareit defines FFO as net income (loss) (computed in accordance with GAAP), excluding depreciation and amortization expense related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

Core FFO represents FFO adjusted to exclude items which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, share-based compensation expense related to the Formation Transaction and special equity awards, lease liability adjustments, income from investments, business interruption insurance proceeds, litigation settlement proceeds, amortization of the management contracts intangible and the mark-to-market of derivative instruments, including our share of such adjustments for unconsolidated real estate ventures.

FAD represents Core FFO adjusted for recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption (payments) refunds, recurring share-based compensation expense, accretion of acquired below-market leases, net of amortization of acquired above-market leases, amortization of debt issuance costs and other non-cash income and charges, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

We believe FFO, Core FFO and FAD are meaningful non‑GAAP financial measures useful in comparing our levered operating performance from period-to-period and as compared to similar real estate companies because these non‑GAAP measures exclude real estate depreciation and amortization expense, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions, and other non-comparable income and expenses. FFO, Core FFO and FAD do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as a performance measure or cash flow as a liquidity measure. FFO, Core FFO and FAD may not be comparable to similarly titled measures used by other companies.

"Net Debt" is a non-GAAP financial measurement. Net Debt represents our total consolidated and unconsolidated indebtedness less cash and cash equivalents at our share. Net Debt is an important component in the calculations of Net Debt to Annualized Adjusted EBITDA and Net Debt / total enterprise value. We believe that Net Debt is a meaningful non-GAAP financial measure useful to investors because we review Net Debt as part of the management of our overall financial flexibility, capital structure and leverage. We may utilize a considerable portion of our cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents at our share may not be solely controlled by us. The deduction of cash and cash equivalents at our share from consolidated and unconsolidated indebtedness in the calculation of Net Debt, therefore, should not be understood to mean that it is available exclusively for debt reduction at any given time.

Net Operating Income ("NOI") and "Annualized NOI" are non-GAAP financial measures management uses to assess an asset's performance. The most directly comparable GAAP measure is net income (loss) attributable to common shareholders. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only property related revenue (which includes base rent, tenant reimbursements and other operating revenue, net of Free Rent and payments associated with assumed lease liabilities) less operating expenses and ground rent for operating leases, if applicable. NOI also excludes deferred rent, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and the amortization of acquired above-market leases and below-market ground lease intangibles. Management uses NOI as a supplemental performance measure of our assets and believes it provides useful information to investors because it reflects only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of NOI as a measure of the operating performance of our assets is limited. NOI presented by us may not be comparable to NOI reported by other real estate investment trusts that define these measures differently. We believe to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) attributable to common shareholders as presented in our financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Annualized NOI represents NOI for the three months ended September 30, 2024 multiplied by four. Management believes Annualized NOI provides useful information in understanding our financial performance over a 12‑month period, however, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12‑month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this earnings release. There can be no assurance that the Annualized NOI shown will reflect our actual results of operations over any 12‑month period.

Definitions

"Development Pipeline" refers to assets that have the potential to commence construction subject to receipt of full entitlements, completion of design and market conditions where we (i) own land or control the land through a ground lease or (ii) are under a long-term conditional contract to purchase, or enter into, a leasehold interest with respect to land.

"Estimated Potential Development Density" reflects management's estimate of developable gross square feet based on our current business plans with respect to real estate owned or controlled as of September 30, 2024. Our current business plans may contemplate development of less than the maximum potential development density for individual assets. As market conditions change, our business plans, and therefore, the Estimated Potential Development Density, could change accordingly. Given timing, zoning requirements and other factors, we make no assurance that Estimated Potential Development Density amounts will become actual density to the extent we complete development of assets for which we have made such estimates.

"First-generation" is a lease on space that had been vacant for at least nine months or a lease on newly delivered space.

"Formation Transaction" refers collectively to the spin-off on July 17, 2017 of substantially all of the assets and liabilities of Vornado Realty Trust's Washington, DC segment, which operated as Vornado / Charles E. Smith, and the acquisition of the management business and certain assets and liabilities of The JBG Companies.

"Free Rent" means the amount of base rent and tenant reimbursements that are abated according to the applicable lease agreement(s).

"GAAP" means accounting principles generally accepted in the United States of America.

"In-Service" refers to multifamily or commercial operating assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of September 30, 2024.

"Non-Same Store" refers to all operating assets excluded from the Same Store pool.

"Same Store" refers to the pool of assets that were In-Service for the entirety of both periods being compared, excluding assets for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared.

"Second-generation" is a lease on space that had been vacant for less than nine months.

"Transaction and Other Costs" include costs related to completed, potential and pursued transactions, demolition costs, and severance and other costs.

"Under-Construction" refers to assets that were under construction during the three months ended September 30, 2024.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

in thousands

 

September 30, 2024

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Real estate, at cost:

 

 

 

 

 

 

 

 

Land and improvements

 

$

1,171,458

 

 

$

1,194,737

 

 

 

Buildings and improvements

 

 

4,243,690

 

 

 

4,021,322

 

 

 

Construction in progress, including land

 

 

443,908

 

 

 

659,103

 

 

 

 

 

 

5,859,056

 

 

 

5,875,162

 

 

 

Less: accumulated depreciation

 

 

(1,429,079

)

 

 

(1,338,403

)

 

 

Real estate, net

 

 

4,429,977

 

 

 

4,536,759

 

 

 

Cash and cash equivalents

 

 

136,983

 

 

 

164,773

 

 

 

Restricted cash

 

 

33,161

 

 

 

35,668

 

 

 

Tenant and other receivables

 

 

30,734

 

 

 

44,231

 

 

 

Deferred rent receivable

 

 

185,221

 

 

 

171,229

 

 

 

Investments in unconsolidated real estate ventures

 

 

100,682

 

 

 

264,281

 

 

 

Deferred leasing costs, net

 

 

78,171

 

 

 

81,477

 

 

 

Intangible assets, net

 

 

49,045

 

 

 

56,616

 

 

 

Other assets, net

 

 

138,503

 

 

 

163,481

 

 

 

TOTAL ASSETS

 

$

5,182,477

 

 

$

5,518,515

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage loans, net

 

$

1,816,156

 

 

$

1,783,014

 

 

 

Revolving credit facility

 

 

90,000

 

 

 

62,000

 

 

 

Term loans, net

 

 

717,578

 

 

 

717,172

 

 

 

Accounts payable and accrued expenses

 

 

99,773

 

 

 

124,874

 

 

 

Other liabilities, net

 

 

118,373

 

 

 

138,869

 

 

 

Total liabilities

 

 

2,841,880

 

 

 

2,825,929

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

444,945

 

 

 

440,737

 

 

 

Total equity

 

 

1,895,652

 

 

 

2,251,849

 

 

 

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

$

5,182,477

 

 

$

5,518,515

 

 

________________

Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands, except per share data

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

Property rental

 

$

113,349

 

 

$

120,294

 

 

$

348,521

 

 

$

364,919

 

Third-party real estate services, including reimbursements

 

 

17,061

 

 

 

23,942

 

 

 

52,326

 

 

 

69,588

 

Other revenue

 

 

5,616

 

 

 

7,326

 

 

 

15,683

 

 

 

22,112

 

Total revenue

 

 

136,026

 

 

 

151,562

 

 

 

416,530

 

 

 

456,619

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

50,050

 

 

 

50,265

 

 

 

158,211

 

 

 

152,914

 

Property operating

 

 

39,258

 

 

 

37,588

 

 

 

110,791

 

 

 

109,112

 

Real estate taxes

 

 

11,812

 

 

 

14,413

 

 

 

40,006

 

 

 

44,061

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and other

 

 

11,881

 

 

 

11,246

 

 

 

43,855

 

 

 

42,462

 

Third-party real estate services

 

 

16,088

 

 

 

21,405

 

 

 

57,065

 

 

 

67,333

 

Share-based compensation related to Formation Transaction and special equity awards

 

 

 

 

 

46

 

 

 

 

 

 

397

 

Transaction and other costs

 

 

667

 

 

 

1,830

 

 

 

3,005

 

 

 

7,794

 

Total expenses

 

 

129,756

 

 

 

136,793

 

 

 

412,933

 

 

 

424,073

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from unconsolidated real estate ventures, net

 

 

(745

)

 

 

(2,263

)

 

 

4

 

 

 

(1,320

)

Interest and other income, net

 

 

4,573

 

 

 

7,774

 

 

 

10,105

 

 

 

14,132

 

Interest expense

 

 

(35,267

)

 

 

(27,903

)

 

 

(97,400

)

 

 

(80,580

)

Gain (loss) on the sale of real estate, net

 

 

(5,352

)

 

 

906

 

 

 

(5,066

)

 

 

41,606

 

Gain (loss) on the extinguishment of debt

 

 

43

 

 

 

 

 

 

43

 

 

 

(450

)

Impairment loss

 

 

 

 

 

(59,307

)

 

 

(18,236

)

 

 

(59,307

)

Total other income (expense)

 

 

(36,748

)

 

 

(80,793

)

 

 

(110,550

)

 

 

(85,919

)

LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT

 

 

(30,478

)

 

 

(66,024

)

 

 

(106,953

)

 

 

(53,373

)

Income tax (expense) benefit

 

 

(831

)

 

 

(77

)

 

 

40

 

 

 

(672

)

NET LOSS

 

 

(31,309

)

 

 

(66,101

)

 

 

(106,913

)

 

 

(54,045

)

Net loss attributable to redeemable noncontrolling interests

 

 

4,365

 

 

 

7,926

 

 

 

12,353

 

 

 

5,961

 

Net (income) loss attributable to noncontrolling interests

 

 

(36

)

 

 

168

 

 

 

10,931

 

 

 

703

 

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

$

(26,980

)

 

$

(58,007

)

 

$

(83,629

)

 

$

(47,381

)

LOSS PER COMMON SHARE - BASIC AND DILUTED

 

$

(0.32

)

 

$

(0.58

)

 

$

(0.95

)

 

$

(0.45

)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED

 

 

85,292

 

 

 

101,445

 

 

 

89,637

 

 

 

108,351

 

________________

Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

EBITDA, EBITDAre AND ADJUSTED EBITDA RECONCILIATIONS (NON-GAAP)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, EBITDAre and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(31,309

)

 

$

(66,101

)

 

$

(106,913

)

 

$

(54,045

)

 

 

Depreciation and amortization expense

 

 

50,050

 

 

 

50,265

 

 

 

158,211

 

 

 

152,914

 

 

 

Interest expense

 

 

35,267

 

 

 

27,903

 

 

 

97,400

 

 

 

80,580

 

 

 

Income tax expense (benefit)

 

 

831

 

 

 

77

 

 

 

(40

)

 

 

672

 

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

 

1,837

 

 

 

4,499

 

 

 

6,219

 

 

 

12,781

 

 

 

EBITDA attributable to noncontrolling interests

 

 

 

 

 

(2

)

 

 

 

 

 

(4

)

 

 

EBITDA

 

$

56,676

 

 

$

16,641

 

 

$

154,877

 

 

$

192,898

 

 

 

(Gain) loss on the sale of real estate, net

 

 

5,352

 

 

 

(906

)

 

 

5,066

 

 

 

(41,606

)

 

 

Gain on the sale of unconsolidated real estate assets

 

 

 

 

 

(641

)

 

 

(480

)

 

 

(641

)

 

 

Real estate impairment loss

 

 

 

 

 

59,307

 

 

 

 

 

 

59,307

 

 

 

Impairment related to unconsolidated real estate ventures (1)

 

 

 

 

 

3,319

 

 

 

 

 

 

3,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAre

 

$

62,028

 

 

$

77,720

 

 

$

159,463

 

 

$

213,277

 

 

 

Transaction and other costs, net of noncontrolling interests (2)

 

 

667

 

 

 

1,830

 

 

 

3,005

 

 

 

7,794

 

 

 

Litigation settlement proceeds, net

 

 

 

 

 

(3,455

)

 

 

 

 

 

(3,455

)

 

 

(Income) loss from investments, net

 

 

(2,534

)

 

 

221

 

 

 

(3,206

)

 

 

(1,114

)

 

 

Impairment loss related to non-depreciable real estate

 

 

 

 

 

 

 

 

18,236

 

 

 

 

 

 

(Gain) loss on the extinguishment of debt

 

 

(43

)

 

 

 

 

 

(43

)

 

 

450

 

 

 

Share-based compensation related to Formation Transaction and special equity awards

 

 

 

 

 

46

 

 

 

 

 

 

397

 

 

 

Earnings and distributions in excess of our investment in unconsolidated real estate venture

 

 

(335

)

 

 

(80

)

 

 

(1,006

)

 

 

(588

)

 

 

Lease liability adjustments

 

 

 

 

 

 

 

 

 

 

 

(154

)

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

 

227

 

 

 

31

 

 

 

227

 

 

 

33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

60,010

 

 

$

76,313

 

 

$

176,676

 

 

$

216,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Debt to Annualized Adjusted EBITDA (3)

 

 

10.6

 

x

 

8.1

 

x

 

10.8

 

x

 

8.5

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2024

 

September 30, 2023

 

 

Net Debt (at JBG SMITH Share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated indebtedness (4)

 

 

 

 

 

 

 

$

2,615,724

 

 

$

2,523,354

 

 

 

Unconsolidated indebtedness (4)

 

 

 

 

 

 

 

 

66,693

 

 

 

79,992

 

 

 

Total consolidated and unconsolidated indebtedness

 

 

 

 

 

 

 

 

2,682,417

 

 

 

2,603,346

 

 

 

Less: cash and cash equivalents

 

 

 

 

 

 

 

 

141,669

 

 

 

138,282

 

 

 

Net Debt (at JBG SMITH Share)

 

 

 

 

 

 

 

$

2,540,748

 

 

$

2,465,064

 

 

________________

Note: All EBITDA measures as shown above are attributable to common limited partnership units ("OP Units") and certain fully vested incentive equity awards that may be convertible into OP Units.

(1)

Related to decreases in the value of the underlying real estate assets.

(2)

Includes costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.

(3)

Quarterly Adjusted EBITDA is annualized by multiplying by four. Adjusted EBITDA for the nine months ended September 30, 2024 and 2023 is annualized by multiplying by 1.33.

(4)

Net of premium/discount and deferred financing costs.

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands, except per share data

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO and Core FFO

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

$

(26,980

)

 

$

(58,007

)

 

$

(83,629

)

 

$

(47,381

)

 

 

Net loss attributable to redeemable noncontrolling interests

 

(4,365

)

 

 

(7,926

)

 

 

(12,353

)

 

 

(5,961

)

 

 

Net income (loss) attributable to noncontrolling interests

 

36

 

 

 

(168

)

 

 

(10,931

)

 

 

(703

)

 

 

Net loss

 

(31,309

)

 

 

(66,101

)

 

 

(106,913

)

 

 

(54,045

)

 

 

(Gain) loss on the sale of real estate, net of tax

 

5,352

 

 

 

(906

)

 

 

3,854

 

 

 

(41,606

)

 

 

Gain on the sale of unconsolidated real estate assets

 

 

 

 

(641

)

 

 

(480

)

 

 

(641

)

 

 

Real estate depreciation and amortization

 

48,385

 

 

 

48,568

 

 

 

153,203

 

 

 

147,681

 

 

 

Real estate impairment loss

 

 

 

 

59,307

 

 

 

 

 

 

59,307

 

 

 

Impairment related to unconsolidated real estate ventures (1)

 

 

 

 

3,319

 

 

 

 

 

 

3,319

 

 

 

Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures

 

796

 

 

 

2,984

 

 

 

3,086

 

 

 

8,855

 

 

 

FFO attributable to noncontrolling interests

 

 

 

 

168

 

 

 

 

 

 

703

 

 

 

FFO Attributable to OP Units

$

23,224

 

 

$

46,698

 

 

$

52,750

 

 

$

123,573

 

 

 

FFO attributable to redeemable noncontrolling interests

 

(3,725

)

 

 

(6,600

)

 

 

(8,238

)

 

 

(17,050

)

 

 

FFO Attributable to Common Shareholders

$

19,499

 

 

$

40,098

 

 

$

44,512

 

 

$

106,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO attributable to OP Units

$

23,224

 

 

$

46,698

 

 

$

52,750

 

 

$

123,573

 

 

 

Transaction and other costs, net of tax and noncontrolling interests (2)

 

754

 

 

 

1,755

 

 

 

2,738

 

 

 

7,465

 

 

 

Litigation settlement proceeds, net

 

 

 

 

(3,455

)

 

 

 

 

 

(3,455

)

 

 

(Income) loss from investments, net of tax

 

(1,919

)

 

 

165

 

 

 

(2,428

)

 

 

(836

)

 

 

Impairment loss related to non-depreciable real estate

 

 

 

 

 

 

 

18,236

 

 

 

 

 

 

Loss from mark-to-market on derivative instruments, net of noncontrolling interests

 

7

 

 

 

1,572

 

 

 

77

 

 

 

6,714

 

 

 

(Gain) loss on the extinguishment of debt

 

(43

)

 

 

 

 

 

(43

)

 

 

450

 

 

 

Earnings and distributions in excess of our investment in unconsolidated real estate venture

 

(335

)

 

 

(80

)

 

 

(1,006

)

 

 

(588

)

 

 

Share-based compensation related to Formation Transaction and special equity awards

 

 

 

 

46

 

 

 

 

 

 

397

 

 

 

Lease liability adjustments

 

 

 

 

 

 

 

 

 

 

(154

)

 

 

Amortization of management contracts intangible, net of tax

 

1,059

 

 

 

1,031

 

 

 

3,178

 

 

 

3,161

 

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

230

 

 

 

63

 

 

 

230

 

 

 

104

 

 

 

Core FFO Attributable to OP Units

$

22,977

 

 

$

47,795

 

 

$

73,732

 

 

$

136,831

 

 

 

Core FFO attributable to redeemable noncontrolling interests

 

(3,685

)

 

 

(6,755

)

 

 

(11,438

)

 

 

(18,858

)

 

 

Core FFO Attributable to Common Shareholders

$

19,292

 

 

$

41,040

 

 

$

62,294

 

 

$

117,973

 

 

 

FFO per common share - diluted

$

0.23

 

 

$

0.40

 

 

$

0.50

 

 

$

0.98

 

 

 

Core FFO per common share - diluted

$

0.23

 

 

$

0.40

 

 

$

0.69

 

 

$

1.09

 

 

 

Weighted average shares - diluted (FFO and Core FFO)

 

85,446

 

 

 

101,461

 

 

 

89,806

 

 

 

108,359

 

 

 

See footnotes under table below.

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands, except per share data

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FAD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO attributable to OP Units

 

$

22,977

 

 

$

47,795

 

 

$

73,732

 

 

$

136,831

 

 

 

Recurring capital expenditures and Second-generation tenant improvements and leasing commissions (3)

 

 

(10,221

)

 

 

(9,225

)

 

 

(31,351

)

 

 

(28,621

)

 

 

Straight-line and other rent adjustments (4)

 

 

(3,817

)

 

 

(5,226

)

 

 

(7,756

)

 

 

(19,914

)

 

 

Third-party lease liability assumption (payments) refunds

 

 

 

 

 

 

 

 

(25

)

 

 

70

 

 

 

Share-based compensation expense

 

 

4,810

 

 

 

5,995

 

 

 

25,053

 

 

 

24,480

 

 

 

Amortization of debt issuance costs

 

 

4,030

 

 

 

3,372

 

 

 

11,963

 

 

 

6,022

 

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

 

381

 

 

 

875

 

 

 

1,041

 

 

 

1,918

 

 

 

Non-real estate depreciation and amortization

 

 

290

 

 

 

323

 

 

 

883

 

 

 

1,019

 

 

 

FAD available to OP Units (A)

 

$

18,450

 

 

$

43,909

 

 

$

73,540

 

 

$

121,805

 

 

 

Distributions to common shareholders and unitholders (B)

 

$

17,891

 

 

$

26,801

 

 

$

55,901

 

 

$

84,104

 

 

 

FAD Payout Ratio (B÷A) (5)

 

 

97.0

 

%

 

61.0

 

%

 

76.0

 

%

 

69.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maintenance and recurring capital expenditures

 

$

4,808

 

 

$

3,964

 

 

$

10,365

 

 

$

11,644

 

 

 

Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures

 

 

 

 

 

10

 

 

 

16

 

 

 

45

 

 

 

Second-generation tenant improvements and leasing commissions

 

 

5,413

 

 

 

5,222

 

 

 

20,949

 

 

 

16,769

 

 

 

Share of Second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures

 

 

 

 

 

29

 

 

 

21

 

 

 

163

 

 

 

Recurring capital expenditures and Second-generation tenant improvements and leasing commissions

 

 

10,221

 

 

 

9,225

 

 

 

31,351

 

 

 

28,621

 

 

 

Non-recurring capital expenditures

 

 

1,718

 

 

 

10,422

 

 

 

8,508

 

 

 

31,019

 

 

 

Share of non-recurring capital expenditures from unconsolidated real estate ventures

 

 

 

 

 

 

 

 

28

 

 

 

5

 

 

 

First-generation tenant improvements and leasing commissions

 

 

1,367

 

 

 

7,288

 

 

 

6,584

 

 

 

14,587

 

 

 

Share of First-generation tenant improvements and leasing commissions from unconsolidated real estate ventures

 

 

18

 

 

 

94

 

 

 

105

 

 

 

647

 

 

 

Non-recurring capital expenditures

 

 

3,103

 

 

 

17,804

 

 

 

15,225

 

 

 

46,258

 

 

 

Total JBG SMITH Share of Capital Expenditures

 

$

13,324

 

 

$

27,029

 

 

$

46,576

 

 

$

74,879

 

 

________________

(1)

Related to decreases in the value of the underlying real estate assets.

(2)

Includes costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.

(3)

Includes amounts, at JBG SMITH Share, related to unconsolidated real estate ventures.

(4)

Includes straight-line rent, above/below market lease amortization and lease incentive amortization.

(5)

The FAD payout ratio is not necessarily indicative of an amount for the full year due to fluctuation in the timing of capital expenditures, the commencement of new leases and the seasonality of our operations.

NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(26,980

)

 

$

(58,007

)

 

$

(83,629

)

 

$

(47,381

)

 

 

Net loss attributable to redeemable noncontrolling interests

 

 

(4,365

)

 

 

(7,926

)

 

 

(12,353

)

 

 

(5,961

)

 

 

Net income (loss) attributable to noncontrolling interests

 

 

36

 

 

 

(168

)

 

 

(10,931

)

 

 

(703

)

 

 

Net loss

 

 

(31,309

)

 

 

(66,101

)

 

 

(106,913

)

 

 

(54,045

)

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

50,050

 

 

 

50,265

 

 

 

158,211

 

 

 

152,914

 

 

 

General and administrative expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and other

 

 

11,881

 

 

 

11,246

 

 

 

43,855

 

 

 

42,462

 

 

 

Third-party real estate services

 

 

16,088

 

 

 

21,405

 

 

 

57,065

 

 

 

67,333

 

 

 

Share-based compensation related to Formation Transaction and special equity awards

 

 

 

 

 

46

 

 

 

 

 

 

397

 

 

 

Transaction and other costs

 

 

667

 

 

 

1,830

 

 

 

3,005

 

 

 

7,794

 

 

 

Interest expense

 

 

35,267

 

 

 

27,903

 

 

 

97,400

 

 

 

80,580

 

 

 

(Gain) loss on the extinguishment of debt

 

 

(43

)

 

 

 

 

 

(43

)

 

 

450

 

 

 

Impairment loss

 

 

 

 

 

59,307

 

 

 

18,236

 

 

 

59,307

 

 

 

Income tax expense (benefit)

 

 

831

 

 

 

77

 

 

 

(40

)

 

 

672

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party real estate services, including reimbursements revenue

 

 

17,061

 

 

 

23,942

 

 

 

52,326

 

 

 

69,588

 

 

 

Other revenue

 

 

2,827

 

 

 

2,704

 

 

 

16,216

 

 

 

8,276

 

 

 

Income (loss) from unconsolidated real estate ventures, net

 

 

(745

)

 

 

(2,263

)

 

 

4

 

 

 

(1,320

)

 

 

Interest and other income, net

 

 

4,573

 

 

 

7,774

 

 

 

10,105

 

 

 

14,132

 

 

 

Gain (loss) on the sale of real estate, net

 

 

(5,352

)

 

 

906

 

 

 

(5,066

)

 

 

41,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated NOI

 

 

65,068

 

 

 

72,915

 

 

 

197,191

 

 

 

225,582

 

 

 

NOI attributable to unconsolidated real estate ventures at our share

 

 

1,292

 

 

 

5,374

 

 

 

5,506

 

 

 

14,977

 

 

 

Non-cash rent adjustments (1)

 

 

(3,817

)

 

 

(5,226

)

 

 

(7,756

)

 

 

(19,914

)

 

 

Other adjustments (2)

 

 

5,793

 

 

 

5,803

 

 

 

16,486

 

 

 

17,820

 

 

 

Total adjustments

 

 

3,268

 

 

 

5,951

 

 

 

14,236

 

 

 

12,883

 

 

 

NOI

 

$

68,336

 

 

$

78,866

 

 

$

211,427

 

 

$

238,465

 

 

 

Less: out-of-service NOI loss (3)

 

 

(2,261

)

 

 

(995

)

 

 

(7,632

)

 

 

(2,606

)

 

 

Operating Portfolio NOI

 

$

70,597

 

 

$

79,861

 

 

$

219,059

 

 

$

241,071

 

 

 

Non-Same Store NOI (4)

 

 

2,012

 

 

 

11,607

 

 

 

7,466

 

 

 

37,961

 

 

 

Same Store NOI (5)

 

$

68,585

 

 

$

68,254

 

 

$

211,593

 

 

$

203,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Same Store NOI

 

 

0.5

 

%

 

 

 

 

4.2

 

%

 

 

 

 

Number of properties in Same Store pool

 

 

39

 

 

 

 

 

 

39

 

 

 

 

 

________________

(1)

Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization.

(2)

Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue and related party management fees.

(3)

Includes the results of our Under-Construction assets and assets in the Development Pipeline.

(4)

Includes the results of properties that were not In-Service for the entirety of both periods being compared, including disposed properties, and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared.

(5)

Includes the results of the properties that are owned, operated and In-Service for the entirety of both periods being compared.

 

Kevin Connolly

Executive Vice President, Portfolio Management & Investor Relations

(240) 333‑3837

kconnolly@jbgsmith.com

Source: JBG SMITH

FAQ

What was JBG SMITH's (JBGS) net loss in Q3 2024?

JBG SMITH reported a net loss of $27.0 million ($0.32 per share) in Q3 2024.

What was JBGS's multifamily portfolio occupancy rate in Q3 2024?

The operating multifamily portfolio was 92.7% leased and 90.6% occupied as of September 30, 2024.

How much did JBG SMITH (JBGS) spend on share repurchases in Q3 2024?

JBG SMITH repurchased 3.1 million common shares for $50.2 million, at an average price of $16.23 per share.

What is the quarterly dividend declared by JBGS for Q3 2024?

The Board declared a quarterly dividend of $0.175 per common share, payable on November 22, 2024.

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