NYSE$JBGS

JBG SMITH Properties · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

JBG SMITH's Q4 performance was marked by strategic dispositions, strong operating performance, and advancements in National Landing's repositioning.

JBG SMITH reported Core FFO of $34.3 million, or $0.30 per diluted share, and Same Store NOI increased 7.4% year-over-year to $77.2 million for the quarter. The company completed $1.2 billion of dispositions, achieved strong operating performance in its multifamily and commercial portfolios, and continued to advance the design and entitlement of its land bank.

  • Completed $1.2 billion of dispositions at attractive valuations, including a strategic joint venture with Fortress Investment Group and the sale of Pen Place to Amazon.
  • Achieved strong operating performance in multifamily and commercial portfolios, with multifamily occupancy increasing by 180 basis points to 93.6% and portfolio in-place rents increasing by 8.9% year-over-year.
  • Completed 936,000 square feet of office leasing activity, with the fourth quarter seeing the highest volume of leases executed since before the pandemic.
  • Advanced the design and entitlement of the land bank to maximize value and monetization opportunities, with 100% of the 9.7 million square foot Development Pipeline entitled or in advanced stages of design and entitlement.

Headline financials

Total Revenue

$151M

Previous: $157M-4.2%
EPS (adj)

$0.30

Previous: $0.31-3.2%
Net Income

-$20.9M

Previous: -$63.3M+67.1%
Operating Income

$3.12M

No prior period
Gross Profit

$76.8M

Previous: $73.9M+4.0%
Cash & Equivalents

$241M

Previous: $264M-8.8%
Total Assets

$5.9B

Previous: $6.39B-7.6%
Stock-Based Comp

$8.95M

Previous: $13.2M-32.4%

Revenue & EPS history

JBG SMITH · Revenue · Quarterly

$151M

Q4 2022-4.2%vs Q4 2021
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

JBG SMITH · $27.4M total across 2 segments · Q4 2022

  • Third-Party Real Estate Services
    $21.1M-9.7%
  • Other Revenue
    $6.4M+16.9%

Forward guidance

JBG SMITH is focused on advancing its under-construction multifamily pipeline in National Landing, and believes advancing entitlement and design of its Development Pipeline is the best way to maximize optionality and value.

Tailwinds

  • Delivery of Amazon’s HQ2 (2.1 million square feet).
  • Virginia Tech’s Innovation Campus headquarters.
  • Delivery of over 1,500 units of new multifamily housing.
  • Opening of 55 new retailers.
  • Completion of the full entitlement of our 9.7 million square foot land bank.

Headwinds

  • Construction pricing remains stubbornly high.
  • Curbed lending activity has significantly slowed down the pace of sales.
  • Anemic market performance into 2023 against the backdrop of high (20.7%) total vacancy.
  • Tenants remain focused on contraction even ahead of lease expirations, and few are poised to make large-scale commitments to office.
  • The exact trajectory of the office and debt markets is impossible to predict.

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 2022

Historical avgQ4 2022

-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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