Mission Statement, Vision, & Core Values (2024) of JBG SMITH Properties (JBGS).

An Overview of JBG SMITH Properties (JBGS)

General Summary of JBG SMITH Properties

JBG SMITH Properties (JBGS) was formed as a publicly traded real estate investment trust (REIT) in 2017, focusing on the Washington D.C. metropolitan area. The company specializes in acquiring, developing, and managing multifamily and commercial properties. As of 2024, JBG SMITH operates a diversified portfolio that includes high-quality residential units and office spaces, primarily situated in urban, transit-oriented locations.

In 2024, the company reported total property revenue of $347.99 million, a decrease of 4.5% from $364.92 million in 2023. The multifamily segment generated property rental revenue of $159.9 million, reflecting a 2.8% increase from $155.6 million in 2023. Conversely, the commercial segment experienced a decline, with property revenue falling to $178.5 million, down 16.2% from $213.1 million in the previous year.

Company's Financial Performance in Latest Reports

In its latest financial report for the nine months ended September 30, 2024, JBG SMITH Properties reported a consolidated Net Operating Income (NOI) of $197.19 million, a decline from $225.58 million in the same period of 2023. The decline in NOI was attributed to a reduction in commercial property revenue, particularly from disposed properties.

The company faced a net loss attributable to common shareholders of $83.6 million, or $0.95 per diluted common share, for the nine months ended September 30, 2024, compared to a net loss of $47.4 million, or $0.45 per diluted common share, for the same period in 2023. This reflects increased interest expenses, which rose by 20.9% to $97.4 million in 2024 from $80.6 million in 2023, primarily due to higher outstanding debt and rising interest rates.

Introduction to JBG SMITH Properties as an Industry Leader

JBG SMITH Properties stands out as a leader in the real estate investment trust (REIT) sector, particularly in the Washington D.C. area. The company is recognized for its strategic focus on urban development, sustainability, and community engagement. JBG SMITH is advancing its development pipeline with 11.4 million square feet of potential development density, positioning itself for future growth. The company’s ability to adapt to changing market demands and its commitment to high-quality property management continue to drive its success in a competitive industry.

To understand more about why JBG SMITH Properties is successful, further analysis of its operational strategies, market positioning, and financial health is recommended.

Mission Statement of JBG SMITH Properties (JBGS)

Mission Statement Overview

JBG SMITH Properties (JBGS) is committed to enhancing the communities it serves through a focus on high-quality development, management, and investment in mixed-use properties. The mission statement serves as a guiding principle that informs the company's strategic decisions and operational priorities.

Core Component 1: Community Engagement

JBG SMITH emphasizes community engagement by fostering vibrant, amenity-rich neighborhoods. Approximately 75.0% of its holdings are located in the National Landing submarket, which is anchored by significant developments like Amazon's new headquarters and Virginia Tech's $1 billion Innovation Campus. This strategic positioning enables JBGS to actively contribute to the economic and social fabric of the community.

Core Component 2: Sustainability Commitment

Sustainability is a key pillar of JBGS's mission. The company focuses on environmentally responsible development practices. As of September 30, 2024, the company reported an increase in effective rents by 4.5% for new leases and 6.1% upon renewal, reflecting a commitment to high-quality offerings that meet both market demand and sustainability standards.

Core Component 3: Financial Performance

Financial performance is critical to JBGS's mission. For the nine months ended September 30, 2024, multifamily property revenue increased by $4.4 million, or 2.8%, totaling $159.9 million compared to $155.6 million in 2023. This growth is mainly attributed to newly delivered assets and higher rents across the portfolio, showcasing the effectiveness of the company's strategic initiatives.

As of September 30, 2024, the in-service multifamily portfolio was 95.7% occupied, an increase of 140 basis points compared to June 30, 2024. This statistic underscores JBGS's commitment to providing quality housing options that resonate with tenant needs and preferences.

Vision Statement of JBG SMITH Properties (JBGS)

Vision Statement of JBG SMITH Properties (JBGS)

The vision statement of JBG SMITH Properties (JBGS) focuses on creating a vibrant, sustainable, and innovative urban environment that enhances the quality of life for residents, businesses, and visitors alike. The company aims to be a leader in the real estate sector by prioritizing sustainability, community engagement, and cutting-edge development.

JBG SMITH Properties emphasizes sustainability in its operations and developments. As of 2024, the company has committed to reducing its carbon footprint across its portfolio. This includes initiatives such as:

• Achieving LEED certification for new developments.
• Implementing energy-efficient systems in existing properties.
• Utilizing renewable energy sources, targeting a 50% reduction in greenhouse gas emissions by 2030.

The company envisions the creation of mixed-use developments that integrate residential, commercial, and recreational spaces, fostering community interaction. Notable statistics supporting this vision include:

JBG SMITH Properties aims to foster a sense of community through active engagement with residents and local businesses. The company has implemented various programs, including:

• Community events and workshops to gather feedback.
• Partnerships with local organizations to support neighborhood initiatives.
• Investment in public spaces, enhancing accessibility and usability.

In 2024, JBG SMITH Properties reported a property rental revenue of approximately $348.5 million, a decrease of 4.5% from $364.9 million in 2023. The decrease can be attributed to lower occupancy rates in some commercial properties. The multifamily sector, however, showed resilience with a revenue increase of 2.8% to $159.9 million.

Looking forward, JBG SMITH Properties aims to expand its footprint in the National Landing area, with plans for significant developments that align with its vision of sustainable urban living. The company is actively pursuing opportunities for joint ventures and partnerships to fund these initiatives, targeting an estimated potential development density of 11.4 million square feet by 2025.

Core Values of JBG SMITH Properties (JBGS)

Core Values of JBG SMITH Properties (JBGS)

Integrity

Integrity at JBG SMITH Properties emphasizes ethical decision-making and accountability in all business practices. The company demonstrates this commitment through transparency in its financial reporting and governance practices.

For instance, JBG SMITH reported a net loss attributable to common shareholders of $27.0 million for the three months ended September 30, 2024, compared to a net loss of $58.0 million for the same period in 2023. This transparency in financial performance reflects their integrity in communicating challenges and successes to stakeholders.

Collaboration

Collaboration is vital for JBG SMITH, fostering partnerships that enhance project outcomes and community impact. The company actively engages in joint ventures and partnerships, such as their collaboration with the Federal City Council to form the Washington Housing Initiative (WHI).

As of September 30, 2024, WHI had completed fundraising with capital commitments totaling $114.4 million, which included JBG SMITH's commitment of $11.2 million.

Innovation

Innovation drives JBG SMITH's approach to real estate development and management. The company invests in new technologies and sustainable practices to enhance property value and tenant experience.

For example, their ongoing projects include the 2000/2001 South Bell Street development in National Landing, which is expected to deliver 775 units in the third quarter of 2025. This commitment to innovative housing solutions reflects their proactive stance in addressing market demands.

Community Engagement

Community engagement is a core value that guides JBG SMITH's operations. The company is dedicated to creating positive impacts in the neighborhoods where it operates.

In 2024, JBG SMITH launched LEO Impact Capital, focusing on workforce housing in rapidly growing neighborhoods. The initiative aims to preserve middle-income housing, reflecting their dedication to community welfare.

Excellence

Excellence is a guiding principle at JBG SMITH, driving them to achieve high standards in every aspect of their business. This commitment is evident in their operational metrics, such as a multifamily portfolio occupancy rate of 95.7% as of September 30, 2024, which is an increase from previous quarters.

Furthermore, the company achieved effective rent increases of 4.5% for new leases and 6.1% upon renewal during the third quarter of 2024, demonstrating their focus on delivering quality and value.

Article updated on 8 Nov 2024

Resources:

• JBG SMITH Properties (JBGS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of JBG SMITH Properties (JBGS)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View JBG SMITH Properties (JBGS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.