Demo
JBGS NYSE· JBG SMITH Properties
FundamentalsNews digest Peer analysis
Login
JBGS NYSE· JBG SMITH Properties
Earnings report Q3 2023

JBGS Reports Steady Revenue Growth in Latest Quarter

Segments of revenue

JBGS reported total revenue of $151.6 million for the quarter ended September 30, 2023. The breakdown of revenue is as follows:

  • Property rental revenue: $120.3 million
  • Third-party real estate services, including reimbursements: $23.9 million
  • Other revenue: $7.3 million

Strengths

JBGS demonstrated steady revenue growth in the latest quarter, with a 2.7% increase compared to the same period last year. The property rental segment remained the primary revenue driver, contributing $120.3 million. This consistent performance can be attributed to the company's focus on owning, operating, investing in, and developing mixed-use properties in high-growth and high-barrier-to-entry submarkets in and around Washington, D.C. JBGS's intense focus on placemaking has allowed them to cultivate vibrant, amenity-rich, walkable neighborhoods, attracting tenants and driving rental revenue.

Challenges

While JBGS reported overall revenue growth, the company faced certain challenges in the latest quarter. Depreciation and amortization expenses amounted to $50.3 million, indicating significant capital investments and potential future maintenance costs. Additionally, property operating expenses totaled $37.6 million, and real estate taxes amounted to $14.4 million. These expenses put pressure on the company's profitability and highlight the need for efficient cost management.

Noteworthy

JBGS reported a net loss of $66.1 million for the quarter ended September 30, 2023. However, it is important to note that this loss was primarily driven by non-operating factors, including changes in fair value of derivative financial instruments. The company also reported other comprehensive income of $10.2 million, primarily due to the change in fair value of these instruments. These non-operating factors should be considered when evaluating the company's financial performance.

Summary

JBGS delivered steady revenue growth in the latest quarter, driven by strong performance in the property rental segment. The company's focus on placemaking and investment in high-growth submarkets has allowed them to attract tenants and generate consistent rental revenue. However, JBGS faces challenges in managing depreciation, amortization, property operating expenses, and real estate taxes. Investors should consider the non-operating factors impacting the company's net loss and assess the overall financial performance in light of these factors.

Source documents

Form 10-Q  filed on Nov 07, 2023
21 pages scanned

Reference data

Company financials Q3 revenue 151M
Analyst estimates Q3 EPS missed by NaN%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.