JBG SMITH(US:JBGS)2024-04-30 20:17Financial Performance - The net loss attributable to common shareholders for Q1 2024 was $32.3 million, or $0.36 per diluted common share, compared to a net income of $21.2 million, or $0.19 per diluted common share in Q1 2023 [152]. - Property rental revenue decreased by approximately $1.4 million, or 1.1%, to $122.6 million in Q1 2024 from $124.0 million in Q1 2023 [160]. - Third-party real estate services revenue was $17.9 million for Q1 2024, down from $22.8 million in Q1 2023 [152]. - Consolidated NOI decreased by $10.6 million, or 13.6%, to $66.979 million for the three months ended March 31, 2024, from $77.616 million in 2023 [189]. - Total property revenue decreased by $12.4 million, or 9.7%, to $116.1 million in 2024 from $128.5 million in 2023 [189]. - Net cash provided by operating activities was $37.0 million for the three months ended March 31, 2024, compared to $42.6 million for the same period in 2023 [211]. - Net cash provided by investing activities was $123.6 million for the three months ended March 31, 2024, primarily from distributions of capital from unconsolidated real estate ventures [214]. Portfolio Overview - As of March 31, 2024, the operating portfolio consisted of 41 assets, including 15 multifamily assets totaling 6,318 units and 24 commercial assets totaling 7.5 million square feet [145]. - The multifamily portfolio occupancy was 94.3% as of March 31, 2024, a decrease of 40 basis points from December 31, 2023, while the commercial portfolio occupancy was 83.1%, down 180 basis points [149][150]. - The number of properties in the same store pool remained at 41 [180]. Revenue and Expenses - Third-party real estate services revenue decreased by approximately $4.9 million, or 21.5%, to $17.9 million in 2024 from $22.8 million in 2023 [187]. - Depreciation and amortization expense increased by approximately $3.4 million, or 6.4%, to $56.9 million in Q1 2024 from $53.4 million in Q1 2023 [162]. - Interest expense increased by approximately $3.3 million, or 12.4%, to $30.2 million in Q1 2024 from $26.8 million in Q1 2023 [169]. - Gain on the sale of real estate decreased significantly to $197,000 in Q1 2024 from $40.7 million in Q1 2023 [170]. - Impairment loss of $17.2 million in Q1 2024 is related to a development parcel, which was written down to its estimated fair value [171]. Development and Investment - The development pipeline includes 11.3 million square feet of estimated potential development density, with plans to source joint venture capital for funding [151]. - The company invested $48.0 million in development costs, construction in progress, and real estate additions [1]. - The company expects to require an additional $134.4 million to complete assets under construction, primarily to be expended over the next two years [225]. Shareholder Returns - A quarterly dividend of $0.175 per common share was declared, payable on May 24, 2024 [155]. - The company repurchased and retired 3.0 million common shares for $49.4 million, at a weighted average purchase price per share of $16.50 [1]. - The company has authorized the repurchase of up to $1.5 billion of its outstanding common shares [205]. Debt and Liquidity - As of March 31, 2024, the company had mortgage loans totaling $1.83 billion, with a weighted average effective interest rate of 6.31% for variable rate loans and 4.78% for fixed rate loans [194]. - The company had outstanding debt of $2.6 billion as of March 31, 2024, unchanged from December 31, 2023 [212]. - The company had $749.5 million of availability under its revolving credit facility as of March 31, 2024 [208]. - The estimated fair value of consolidated debt was $2.5 billion as of March 31, 2024, and December 31, 2023 [235]. Market Conditions - Current market conditions have slowed the pace of asset sales, which is expected to continue into 2024 [148]. - The company plans to repurpose older office buildings for redevelopment or conversion to multifamily or other uses to reduce competitive inventory in National Landing [150]. Environmental and Other Liabilities - As of March 31, 2024, environmental liabilities totaled $17.6 million, included in "Other liabilities, net" on the balance sheet [232]. - The company had additional capital commitments and recorded guarantees to unconsolidated real estate ventures totaling $58.7 million as of March 31, 2024 [221].