JBG SMITH Properties (JBGS) investor relations material

Executive summary

• Q3 revenue was $132.4M; net loss attributable to common shareholders widened to $82.0M, or $1.41/share, while FFO was $10.4M and Core FFO was $12.7M.

• Annualized NOI at share rose to $256.4M from $249.3M in Q2, driven primarily by higher multifamily occupancy and lower real estate taxes.

• Multifamily leasing improved during the summer peak season; office occupancy and leasing advanced alongside continued portfolio repositioning and joint-venture activity.

Financial highlights

• Q3 revenue was $132.4M vs. $123.9M; 9M revenue was $389.4M vs. $371.0M.

• Q3 net loss was $82.0M vs. $28.6M; 9M net loss was $159.9M vs. $93.5M.

• Q3 Core FFO rose to $12.7M, or $0.22/share, from $9.1M, or $0.15; 9M Core FFO was $33.0M, or $0.56/share.

• 9M property rental revenue increased 2.8% to $320.6M; third-party services revenue, including reimbursements, increased 18.1% to $52.5M.

• Cash provided by operations was $37.9M for 9M; cash, cash equivalents and restricted cash totaled $104.0M at September 30.

Outlook and guidance

• Cash flows from operations, financing, asset sales and recapitalizations, together with cash balances, are expected to fund operations, debt service, capital needs and distributions.

• Distressed office opportunities and share repurchases were viewed as attractive; growth and buybacks are expected to be funded through asset sales and joint ventures.

• The 4.8M-square-foot development pipeline, including 3.5M square feet at owned share, is intended for joint-venture funding as market conditions permit.

• 2200 Crystal Drive requires $17.4M at owned share to complete over three years; the venture expects to fund this with debt proceeds.