John Kim, an analyst from BMO Capital, maintained the Hold rating on JBG Smith Properties (JBGS – Research Report). The associated price target is $18.00.
John P. Kim has given his Hold rating due to a combination of factors that have emerged from JBG Smith Properties’s most recent performance. The company has shown a notable increase in its third-quarter Core FFOps, growing at a rate of 11.1% year-on-year, and significantly surpassing market expectations. This growth was fueled by several factors including a rise in office occupancy due to an unexpected uptick in leasing activity, an impressive 12.2% increase in Same Store Net Operating Income (SS NOI) from the multifamily sector, and additional share repurchase activities. Moreover, the company managed to sell assets worth $141.8M at a 3.8% cap rate.
However, despite these positive developments, there remain a few areas of concern that have influenced Kim’s Hold rating. The company hinted at a potential reduction in dividends, which may worry some investors. Furthermore, the company’s leverage remains high, which could pose risks in the long term. Lastly, there are substantial office lease expirations projected for 2024. These factors, combined with the positive developments, led John P. Kim to conclude that holding the stock is the most advisable course of action at the moment.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on JBGS:
