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Mar 31, 2024
JBG SMITH Q1 2024 Earnings Report
JBG SMITH's Q1 2024 performance was influenced by inflation and interest rates, with a focus on capital recycling and multifamily portfolio growth.
Key Takeaways
JBG SMITH reported Core FFO attributable to common shareholders of $26.9 million, or $0.29 per diluted share, for the three months ended March 31, 2024. The company closed $176.8 million of capital recycling transactions and experienced strong multifamily Same Store NOI growth of 11.1%.
Closed $176.8 million in capital recycling transactions with an average capitalization rate of 4.0%.
Multifamily Same Store NOI grew by 11.1%, driven by higher market rents and occupancy.
Office tenant tour activity in National Landing more than doubled compared to Q1 2023.
Repurchased 3.0 million shares at a weighted average price of $16.50, totaling $49.4 million year-to-date.
Revenue by Segment
Forward Guidance
JBG SMITH anticipates downward pressure on earnings due to tenant vacates and increased interest expense, which they expect to be offset by income from new developments, multifamily rent growth, and office demand in National Landing.
Positive Outlook
- Additional income from the delivery and stabilization of 1900 Crystal Drive (The Grace and Reva) and 2000/2001 South Bell Street.
- Rent growth in existing multifamily portfolio due to limited multifamily supply in the DC metro area.
- Office demand in National Landing seeking proximity to the Pentagon, local tech talent, and placemaking attractions.
- Amenity-rich environment in National Landing and proximity to tech talent attracting tenants.
- Amazon's continued hiring expected to attract office tenants.
Challenges Ahead
- Downward pressure on earnings from known tenant vacates due to hybrid work trends.
- Tenant seeking to repurpose space for flexibility.
- Expected pressure to persist at least through the end of 2025.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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