NYSE$JBGS

JBG SMITH Properties · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Experienced a net loss due to COVID-19 impacts but rent collections remained strong.

JBG SMITH reported a net loss attributable to common shareholders of $36.8 million, impacted by the COVID-19 pandemic, but rent collections remained steady, with 98.6%, 98.5%, and 58.0% for office, residential, and retail, respectively. The company's concentration in the DC metro area, driven by Amazon, the federal government, and government contractors, is expected to provide resilience during the economic downturn. JBG SMITH has approximately $2 billion of liquidity and limited near-term debt maturities.

  • Rent collections remained steady throughout the quarter at 98.6%, 98.5% and 58.0% for office, residential, and retail, respectively.
  • Executed rent deferral agreements with tenants representing $3.9 million of rents that were contractually due in the second quarter.
  • Amazon has historically increased its hiring pace during economic downturns and recently hired its 1,000th employee in National Landing.
  • Construction costs are now trending downward, with pricing on certain construction inputs, such as concrete, fall by as much as 8%.

Headline financials

Total Revenue

$145M

Previous: $161M-9.8%
EPS (adj)

$0.26

Previous: $0.41-36.6%
Same Store NOI Growth

-3.0%

Previous: 0.4%-850.0%
Net Debt to Annualized Adjusted EBITDA

8.1

No prior period
Capital Expenditures

-$8.53M

Previous: -$181M+95.3%
Free Cash Flow

-$45.3M

Previous: -$184M+75.4%
Net Income

-$36.8M

Previous: -$3.04M-1109.9%
Operating Income

-$61M

Previous: -$20.6M-195.5%
Gross Profit

$111M

Previous: $129M-13.5%
Cash & Equivalents

$711M

Previous: $280M+153.5%
Total Assets

$6.5B

Previous: $6.01B+8.1%
Stock-Based Comp

$20.8M

Previous: $15.5M+34.1%

Revenue & EPS history

JBG SMITH · Revenue · Quarterly

$145M

Q2 2020-9.8%vs Q2 2019
Beat estimate in 5 of 7 quarters(71%)
ActualEstimate

Revenue by segment

JBG SMITH · $31.3M total across 2 segments · Q3 2023

  • Third-Party Real Estate Services
    $23.9M
  • Other Revenue
    $7.33M

Forward guidance

Company remains focused on the health and safety and are well positioned to manage and grow over the longer term.

Tailwinds

  • The DC metro region has consistently proven to be more resilient than other gateway markets during downturns.
  • Amazon, the federal government, and the Virginia Tech Innovation campus are likely to be countercyclical demand drivers during this recession.
  • Low leverage levels.
  • Strong liquidity.
  • Limited near-term obligations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.5%

Avg return

Earnings day

-2.2%

Avg return

5 days after

-0.6%

Avg return

30 days after

23%

9 / 40 earnings

Positive

+5.1%

Q1 2023

Best reaction

-9.7%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.6%+0.7%-1.8%
Q4 2025-1.4%-0.9%-6.4%
Q3 2025-5.4%-11.2%-14.6%
Q1 2025-1.6%+4.4%+20.3%
Q3 2024-3.0%-7.6%-7.7%
Q2 2024-3.0%-4.7%+3.3%
Q1 2024-6.4%-3.9%-8.7%
Q4 2023+0.8%-0.6%+3.2%
Q3 2023-1.0%-5.4%+11.5%
Q2 2023-9.7%-7.4%-6.2%
Q1 2023+5.1%+2.9%+7.3%
Q4 2022-2.5%-4.9%-27.3%
Q3 2022-1.4%-2.6%+4.2%
Q2 2022-3.1%-6.6%-14.1%
Q1 2022+2.6%-2.2%+0.3%
Q4 2021-5.9%-2.4%+4.2%
Q3 2021+0.3%+2.9%-3.8%
Q2 2021-4.4%-3.7%-4.5%
Q1 2021-1.6%+0.3%+6.1%
Q4 2020+1.8%-1.8%-3.0%
Q3 2020+0.1%-1.0%+33.3%
Q2 2020-0.0%+0.1%-2.1%
Q1 2020-2.0%+0.6%-1.1%
Q4 2019-2.4%-11.0%-26.4%
Q3 2019-1.5%-2.1%-1.8%
Q2 2019+0.4%+1.2%+3.6%
Q1 2019-1.8%-1.2%-4.4%
Q4 2018-1.8%-1.5%+1.1%
Q3 2018-1.4%-2.3%-0.7%
Q2 2018-0.8%+0.6%-2.2%
Q1 2017-0.5%-2.0%+3.5%
Q1 2018-0.5%-2.0%+3.5%
Q4 2015-1.8%-2.2%-0.1%
Q4 2017-1.8%-2.2%-0.1%
Q1 2016-1.8%-2.2%-0.1%
Q3 2017+0.8%-0.5%+5.1%
Q3 2016+0.8%-0.5%+5.1%
Q2 2016-0.5%-1.4%-1.4%
Q2 2017-0.5%-1.4%-1.4%
Q4 2016-0.5%-1.4%-1.4%

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