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Dec 31, 2019
JBG SMITH Q4 2019 Earnings Report
JBG SMITH reported mixed results due to strategic asset repositioning and sales, alongside significant leasing and development achievements.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- Challenging investment sales market.
- Softening of demand for CBD office assets.
- Elevated concessions across all classes.
- NOI declined in 2019
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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