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Jun 30, 2020
JBG SMITH Q2 2020 Earnings Report
Experienced a net loss due to COVID-19 impacts but rent collections remained strong.
Key Takeaways
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%.
Forward Guidance
Company remains focused on the health and safety and are well positioned to manage and grow over the longer term.
Positive Outlook
- 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
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Avg. Return Before/After Earnings
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