JBG Smith Properties (JBGS) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: 4.11%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -12.34%
• EPS Growth: -36.05%
• Country: US
• Employees: 645
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Office
• EPS (TTM): -0.56
• Shares Outstanding: 73,053,010
• 10 Day Avg. Volume: 2,162,332
• 30 Day Avg. Volume: 1,667,188
• PEG Ratio: -0.13
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.19
• Enterprise Value/Market Cap: 3.01
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 18.37
• Enterprise Value/Ebitda: 7.52
• 1Y Price Target: $15.50
• Price Target Upside: -8.34% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $18.00 ▲(6.45%Upside)

JBG Smith Properties faces significant financial challenges with declining revenue and profitability, despite improved balance sheet stability due to debt reduction. Technical analysis indicates strong momentum, but the stock appears overbought, suggesting potential price correction. Valuation metrics are poor due to negative earnings, overshadowing the attractive dividend yield.

Positive Factors

Asset Sale

JBGS sold 2101 L Street for $110.1M at an attractive cap rate of approximately 6.9%.

Multifamily Performance

Multifamily occupancy increased to 91.3% with a strong leased rate of 93.0%.

Negative Factors

Dividend Concerns

With declining occupancy, JBGS's FAD payout ratio increased to 169.4%, raising concerns about a potential dividend cut.

Earnings Miss

JBGS's first quarter core FFO per share of $0.09 fell short of the consensus estimate of $0.14.

Office Sector Challenges

Office sector performance struggled with a -9.6% same-store net operating income and occupancy at 76.5%.

JBG Smith Properties Business Overview & Revenue Model

Company Description

JBG Smith Properties (JBGS) is a real estate investment trust (REIT) headquartered in Bethesda, Maryland. It focuses on the development, leasing, and management of commercial properties, with a significant emphasis on office, multifamily, and retail sectors. The company is renowned for its extensive portfolio in the Washington, D.C. metropolitan area, including properties in prime urban locations.

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 diverse range of tenants, collecting rent and related fees. In addition to rental income, JBGS also engages in property development and redevelopment projects, which can yield significant returns upon completion and leasing. Furthermore, the company may sell properties from its portfolio, realizing gains from property appreciation. Strategic partnerships, particularly in high-demand areas like National Landing, where JBGS is involved with Amazon's HQ2 development, enhance its revenue streams by driving demand and increasing property value.

JBG Smith Properties Financial Statement Overview

Summary

JBG Smith Properties is experiencing declining revenue and net losses, with a notable net loss of $143.5 million in 2024. While the company has improved its balance sheet by eliminating debt, declining stockholder equity and reliance on non-operational cash flow are concerning. Overall, financial challenges outweigh the positive debt reduction.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	522.81M	547.31M	604.20M	605.82M	634.36M	602.72M
Gross Profit	242.47M	273.83M	313.53M	299.12M	305.74M	271.31M
EBITDA	144.99M	214.44M	242.89M	236.64M	218.28M	213.52M
Net Income	-157.47M	-143.53M	-79.98M	85.37M	-89.72M	-67.26M
Balance Sheet
Total Assets	4.73B	5.02B	5.52B	5.90B	6.39B	6.08B
Cash, Cash Equivalents and Short-Term Investments	81.34M	145.80M	164.77M	241.10M	264.36M	225.60M
Total Debt	0.00	2.62B	2.64B	2.44B	2.48B	1.99B
Total Liabilities	2.74B	2.79B	2.83B	2.71B	3.45B	2.34B
Stockholders Equity	1.57B	1.81B	2.22B	2.71B	2.42B	3.21B
Cash Flow
Free Cash Flow	-61.14M	-88.64M	-150.37M	-148.70M	44.45M	-138.48M
Operating Cash Flow	108.92M	129.39M	183.37M	178.04M	217.62M	169.02M
Investing Cash Flow	151.67M	144.16M	-98.18M	524.02M	-368.74M	-167.69M
Financing Cash Flow	-400.51M	-290.80M	-158.82M	-730.08M	189.88M	119.49M

JBG Smith Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 16.91 is below the 20-day moving average (MA) of 17.66, above the 50-day MA of 16.55, and above the 200-day MA of 15.97, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JBGS.

JBG Smith Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEA	71 Outperform	$1.00B	53.91	1.32%	7.96%	6.06%	-15.10%
PGRE	70 Outperform	$1.44B	―	-2.11%	2.32%	1.67%	73.75%
Sector *	63 Neutral	kr18.82B	23.12	1.54%	6.78%	-0.56%	372.59%
ELME	59 Neutral	$1.41B	―	-1.29%	4.49%	5.31%	72.97%
JBGS	55 Neutral	$1.48B	―	-8.54%	4.11%	-12.34%	-36.05%
PDM	55 Neutral	$920.62M	―	-3.79%	6.76%	-6.23%	18.07%
BDN	52 Neutral	$749.37M	―	-18.11%	13.89%	-2.22%	1.51%