BMO Capital analyst John Kim maintained a Hold rating on JBG Smith Properties (JBGS – Research Report) today and set a price target of $18.00.
John Kim has given his Hold rating due to a combination of factors affecting JBG Smith Properties. Despite the recent challenges, such as the loss of momentum following the decision of Monumental Sports to remain in Washington, D.C., and a notable slowdown in office leasing activity, JBGS displayed resilience. Kim acknowledged the company’s proven ability to surpass expectations in tough markets and anticipates a recovery from these recent hurdles. Additionally, the first quarter of 2024 showed an increase in multifamily net operating income (NOI), which is a positive indicator for future growth as JBGS is planning to enlarge its multifamily portfolio significantly in the upcoming years.
However, there were downsides that influenced the Hold rating. The operating occupancy saw a quarter-over-quarter decline, particularly in the commercial segment. The decrease in leasing activity was substantial when compared to the long-term average, which raises concerns about future income stability. Despite these challenges, improvements in the funds available for distribution (FAD) payout ratio after a dividend cut suggest that JBGS is taking steps to maintain financial flexibility and strengthen its balance sheet, which may support the company’s performance in the long term.
According to TipRanks, Kim is a 3-star analyst with an average return of 0.7% and a 48.59% success rate. Kim covers the Real Estate sector, focusing on stocks such as Boston Properties, Prologis, and Empire State Realty.
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JBG Smith Properties (JBGS) Company Description:
JBG SMITH Properties is a real estate investment trust. It owns, operates, invests and develops assets on urban infill submarkets. It operates through following segments: Office, Multifamily and Third-Party Real Estate Services. The company was founded on October 27, 2016 and is headquartered in Chevy Chase, MD.
