NYSE$JBGS

JBG SMITH Properties · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

JBG SMITH reported mixed results due to strategic asset repositioning and sales, alongside significant leasing and development achievements.

JBG SMITH's Q4 2019 results reflect a company in transition, marked by strategic asset sales and recapitalizations aimed at maximizing long-term net asset value. While same-store NOI increased slightly, full-year figures showed a decline due to prior leasing strategies. The company is focused on high-growth areas like National Landing, bolstered by Amazon's HQ2 development.

  • Executed leases with Amazon for approximately 857,000 square feet, including a full building lease at 2100 Crystal Drive.
  • Increased operating commercial portfolio leased percentage to 91.5% in National Landing with positive mark-to-market and net effective rent growth.
  • Completed five Under Construction assets expected to deliver $48 million of stabilized annualized NOI.
  • Advanced entitlement and design of 10.1 million square feet of Future Development Pipeline, excluding land held for sale to Amazon.

Headline financials

Total Revenue

$165M

Previous: $163M+1.0%
EPS (adj)

$0.39

Previous: $0.41-4.9%
Same Store NOI Growth

1.2%

No prior period
Commercial Portfolio Leased %

91.4%

No prior period
Multifamily Portfolio Leased %

89.5%

No prior period
Net Debt to Annualized Adjusted EBITDA

5.8

No prior period
Net Income

$38.7M

Previous: $710K+5349.6%
Operating Income

$72.8M

No prior period
Gross Profit

$82.2M

Previous: $80.9M+1.6%
Cash & Equivalents

$126M

Previous: $261M-51.5%
Total Assets

$5.99B

Previous: $6B-0.2%
Stock-Based Comp

$17.8M

Previous: $13M+37.4%

Revenue & EPS history

JBG SMITH · Revenue · Quarterly

$165M

Q4 2019+1%vs Q4 2018
Beat estimate in 4 of 5 quarters(80%)
ActualEstimate

Revenue by segment

JBG SMITH · $165M total across 3 segments · Q4 2019

  • Property Rental
    $128M
  • Third-Party Real Estate Services
    $29.1M
  • Other Revenue
    $8.19M

Forward guidance

JBG SMITH anticipates strong growth in NAV per share due to capital allocation decisions and the tailwinds of Amazon's expected significant growth, underpinned by the historically recession-resilient DC market.

Tailwinds

  • Expected strong growth in NAV per share due to capital allocation.
  • Anticipated benefits from Amazon's significant growth.
  • Solid foundation of the historically recession resilient DC market.
  • Five Under Construction assets are expected to deliver $48 million of annualized NOI.
  • Pro forma Net Debt/Adjusted EBITDA was 5.3x.

Headwinds

  • Challenging investment sales market.
  • Softening of demand for CBD office assets.
  • Elevated concessions across all classes.
  • NOI declined in 2019
  • Reduction in capitalized interest from the delivery of Under Construction assets.

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 Q4 2019

Historical avgQ4 2019

-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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