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Dec 31, 2022
JBG SMITH Q4 2022 Earnings Report
JBG SMITH's Q4 performance was marked by strategic dispositions, strong operating performance, and advancements in National Landing's repositioning.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
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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