JBG Smith Properties (JBGS) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 4.59%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -9.42%
• EPS Growth: -99.45%
• Country: US
• Employees: 645
• Sector: Real Estate
• Sector Strength: 82
• Industry: REIT - Office
• EPS (TTM): -1.67
• Shares Outstanding: 82,048,416
• 10 Day Avg. Volume: 1,249,383
• 30 Day Avg. Volume: 1,338,387
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.32
• Price to Cash Flow (P/CF): 7.50
• P/FCF Ratio: 4.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $15.00
• Price Target Upside: 0.60% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

JBG Smith Properties faces significant financial challenges with declining revenue and profitability, which weigh heavily on its overall score. The company's debt reduction and positive cash flow improvements provide some stability. The technical indicators suggest some bullish momentum, but valuation concerns remain due to the negative P/E ratio and sustainability of the dividend yield.

Positive Factors

Leasing Activity

The Grace and Reva development in National Landing was 63.2% leased, showing significant progress in leasing activity.

Management Strength

JBGS has a strong management team with development and leasing expertise, allowing it to repurpose office to other uses.

Multifamily Performance

Multifamily blended effective rents increased +5.4%, with +6.1% increases on renewal leases and a 60.0% renewal rate.

Negative Factors

Near-term Expirations

JBGS’ near-term office expirations remain elevated with 9.5% by ABR in 2024 and month-to-month, and 9.0% set to expire in 2025.

Office Occupancy

Amazon’s HQ2 has so far not been able to be a giant tech magnet for National Landing, leading to declining office occupancy, reduced margins, and earnings for JBGS.

Office Space Expectations

JBGS expects office tenants will vacate ~475k sf (~$21.5M of ABR, or 8.2%) in National Landing, with 2/3 vacating in Q4 and the balance in the first half of the following year.

JBG Smith Properties Business Overview & Revenue Model

Company Description

JBG SMITH is an S&P 400 company that owns, operates, invests in and develops a dynamic portfolio of high-growth mixed-use properties in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Capital region, including National Landing where it serves as the exclusive developer for Amazon's new headquarters. JBG SMITH's portfolio currently comprises 20.7 million square feet of high-growth office, multifamily and retail assets, 98% at our share of which are Metro-served. It also maintains a development pipeline encompassing 17.1 million square feet of mixed-use development opportunities.

How the Company Makes Money

JBG Smith Properties generates revenue primarily through rental income from its portfolio of office, multifamily, and retail properties. The company leases space to a variety of tenants, including government agencies, corporations, and individuals. In addition to rental income, JBG Smith earns money from property management fees and development services. The company also benefits from strategic partnerships and joint ventures that expand its development capabilities and access to capital. Moreover, JBG Smith's involvement in large-scale projects, such as the National Landing development, contributes to its earnings through value creation in emerging urban markets.

JBG Smith Properties Financial Statement Overview

Summary

JBG Smith Properties is facing significant financial challenges. Despite a slight improvement in gross profit margin, the company has encountered declining revenue and increasing net losses. The balance sheet shows a positive reduction in debt but a concerning decrease in stockholders' equity, reflecting continued losses. Cash flow has improved due to reduced capital expenditures, but reliance on non-operational activities for cash generation remains a concern.

Income Statement

JBG Smith Properties has experienced declining revenue over the past year, with a fall from $604.2 million in 2023 to $547.3 million in 2024. The gross profit margin improved slightly, indicating some efficiency gains, but the company posted a significant net loss of $143.5 million in 2024, an increase from a loss of $79.9 million in 2023. The EBIT and EBITDA margins turned negative, highlighting challenges in covering operational costs.

Balance Sheet

The balance sheet shows a reduction in total debt, with the company reporting no debt in 2024, which improves its financial stability. However, stockholders' equity decreased from $2.22 billion in 2023 to $1.81 billion in 2024, reflecting accumulated losses. The equity ratio remains relatively healthy, indicating a solid asset base, though declining equity poses a risk.

Cash Flow

Operating cash flow decreased from $183.4 million in 2023 to $129.4 million in 2024. The free cash flow turned positive to $129.4 million in 2024, compared to a negative free cash flow in previous years, due to reduced capital expenditures. However, the operating cash flow to net income ratio indicates reliance on non-operational activities for cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
547.31M	604.20M	605.82M	634.36M	602.72M
	Gross Profit
273.83M	313.53M	299.12M	305.74M	271.31M
	EBIT
0.00	47.95M	22.87M	-4.37M	-57.76M
	EBITDA
154.58M	242.89M	236.64M	218.28M	213.52M
	Net Income Common Stockholders
-143.53M	-79.98M	85.37M	-89.72M	-67.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
145.80M	164.77M	241.10M	264.36M	225.60M
	Total Assets
5.02B	5.52B	5.90B	6.39B	6.08B
	Total Debt
2.62B	2.64B	2.44B	2.48B	1.99B
	Net Debt
2.47B	2.47B	2.20B	2.21B	1.77B
	Total Liabilities
2.79B	2.83B	2.71B	3.45B	2.34B
	Stockholders Equity
1.81B	2.22B	2.71B	2.42B	3.21B
Cash Flow		Free Cash Flow
129.39M	-150.37M	-148.70M	44.45M	-138.48M
	Operating Cash Flow
129.39M	183.37M	178.04M	217.62M	169.02M
	Investing Cash Flow
144.16M	-98.18M	524.02M	-368.74M	-167.69M
	Financing Cash Flow
-290.80M	-158.82M	-730.08M	189.88M	119.49M

JBG Smith Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JBGS, the sentiment is Negative. The current price of 14.91 is below the 20-day moving average (MA) of 15.50, below the 50-day MA of 15.24, and below the 200-day MA of 16.05, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 63.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JBGS.

JBG Smith Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEA	65 Neutral	$876.72M	44.35	1.44%	13.05%	4.60%	-5.17%
JBGS	61 Neutral	$1.39B	―	-7.24%	4.59%	-9.42%	-99.45%
Sector *	60 Neutral	$3.00B	12.40	0.61%	9872.56%	7.62%	-2.59%
PGRE	60 Neutral	$992.65M	―	-1.46%	3.36%	1.97%	82.20%
ELME	56 Neutral	$1.34B	―	-1.17%	4.72%	6.15%	74.89%
BDN	54 Neutral	$645.62M	―	-16.61%	16.13%	-1.77%	1.20%
PDM	50 Neutral	$804.92M	―	-4.78%	7.73%	-5.58%	-63.09%