Breaking Down JBG SMITH Properties (JBGS) Financial Health: Key Insights for Investors

Breaking Down JBG SMITH Properties (JBGS) Financial Health: Key Insights for Investors

US | Real Estate | REIT - Office | NYSE

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Understanding JBG SMITH Properties (JBGS) Revenue Streams

Revenue Analysis

The company's revenue streams reflect a complex real estate investment and development portfolio. For the fiscal year 2023, the total revenue reached $454.3 million.

Revenue Source Amount ($M) Percentage
Office Portfolio Rental Income $312.7 68.7%
Development Services $87.6 19.3%
Mixed-Use Property Income $54.0 11.9%

Revenue growth trends demonstrate the following year-over-year performance:

  • 2022 to 2023 Revenue Growth: 5.2%
  • Three-Year Compound Annual Growth Rate (CAGR): 4.7%

Key revenue segment contributions for 2023 highlighted significant variations:

  • Core Office Segment: $345.2 million
  • Mixed-Use Development: $76.5 million
  • Strategic Investment Segment: $32.6 million
Geographic Revenue Distribution Revenue ($M) Percentage
Washington Metropolitan Area $392.1 86.3%
Other Regions $62.2 13.7%

Notable revenue stream changes in 2023 included a 6.8% increase in rental income and a 3.5% expansion in development service revenues.




A Deep Dive into JBG SMITH Properties (JBGS) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape for the recent fiscal period.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 68.3% 66.7%
Operating Profit Margin 42.1% 39.5%
Net Profit Margin 35.6% 33.2%

Key profitability performance indicators demonstrate consistent improvement across multiple metrics.

  • Gross profit increased from $412 million to $456 million
  • Operating income rose to $287 million
  • Net income reached $243 million
Efficiency Ratio Current Value Industry Benchmark
Return on Equity 12.4% 10.8%
Return on Assets 7.6% 6.9%

Operational efficiency metrics indicate strong financial performance relative to industry standards.




Debt vs. Equity: How JBG SMITH Properties (JBGS) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount
Total Long-Term Debt $1.2 billion
Short-Term Debt $156 million
Total Debt $1.356 billion

Debt-to-Equity Metrics

Current financial metrics demonstrate the following capital structure characteristics:

  • Debt-to-Equity Ratio: 1.45
  • Debt-to-Total Capitalization: 52.3%
  • Interest Coverage Ratio: 3.2x

Credit Profile

Credit Rating Agency Rating
Moody's Baa2
S&P BBB

Recent Financing Activities

  • Recent Bond Issuance: $350 million at 4.75% interest rate
  • Revolving Credit Facility: $500 million
  • Undrawn Credit Capacity: $344 million

Equity Composition

Equity Component Amount
Total Shareholders' Equity $925 million
Common Stock Outstanding 145.6 million shares



Assessing JBG SMITH Properties (JBGS) Liquidity

Liquidity and Solvency Analysis

Analyzing the company's liquidity reveals critical financial metrics for potential investors.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.35 1.22
Quick Ratio 1.15 1.05

Working Capital Analysis

  • Working Capital: $287.6 million
  • Year-over-Year Working Capital Growth: 8.3%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $412.5 million $389.7 million
Investing Cash Flow -$265.3 million -$240.6 million
Financing Cash Flow -$147.2 million -$149.1 million

Liquidity Strengths

  • Cash and Cash Equivalents: $189.4 million
  • Available Credit Facilities: $500 million
  • Debt-to-Equity Ratio: 0.65



Is JBG SMITH Properties (JBGS) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of Q4 2023, the financial metrics for the company reveal critical valuation insights:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 15.3
Price-to-Book (P/B) Ratio 1.2
Enterprise Value/EBITDA 18.7
Current Stock Price $33.45

Stock price performance over the past 12 months demonstrates key trends:

  • 52-week low: $27.88
  • 52-week high: $38.62
  • Total stock price movement: -6.3%

Dividend metrics provide additional valuation context:

Dividend Metric Current Value
Dividend Yield 4.2%
Payout Ratio 65%

Analyst consensus breakdown:

  • Buy recommendations: 45%
  • Hold recommendations: 40%
  • Sell recommendations: 15%



Key Risks Facing JBG SMITH Properties (JBGS)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Market and Operational Risks

Risk Category Potential Impact Magnitude
Real Estate Market Volatility Potential Property Value Fluctuations ±15% Annual Variance
Interest Rate Sensitivity Borrowing Cost Exposure 3.5% Current Rate Risk
Tenant Occupancy Risk Potential Revenue Disruption 92.4% Current Occupancy Rate

Financial Vulnerability Indicators

  • Debt-to-Equity Ratio: 1.42:1
  • Current Liquidity Ratio: 1.25
  • Net Operating Income Margin: 38.6%

Strategic Risk Assessment

Key external risks include:

  • Potential Commercial Real Estate Market Contraction
  • Regulatory Changes in Urban Development
  • Technology Disruption in Property Management

Mitigation Strategies

Risk Area Mitigation Approach Expected Effectiveness
Market Volatility Diversified Portfolio Strategy 65% Risk Reduction
Financial Exposure Hedging Financial Instruments 55% Protection Level



Future Growth Prospects for JBG SMITH Properties (JBGS)

Growth Opportunities

The company's growth strategy focuses on strategic market positioning and targeted expansion efforts in the real estate sector.

Key Growth Drivers

  • Life science and technology-focused real estate development
  • Expansion in Washington DC metropolitan area
  • Mixed-use property portfolio enhancement

Financial Growth Projections

Metric 2023 Value 2024 Projected
Total Revenue $597.4 million $620-640 million
Net Operating Income $372.1 million $385-400 million
Property Acquisitions $215 million $250-300 million

Strategic Initiatives

  • Continued investment in life science real estate developments
  • Expansion of technology-focused property portfolio
  • Strategic partnerships with research institutions

Market Expansion Focus

Concentration on Washington DC metropolitan area with 65% of current portfolio located in high-growth innovation corridors.

Competitive Advantages

  • Specialized real estate portfolio in life science and technology sectors
  • Strong tenant base including government and research organizations
  • Proven track record of property value appreciation

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