JBG SMITH: Sell Now, Maybe Buy Later

Summary

  • JBG Smith's fundamentals are deteriorating: declining revenues, negative FFO growth, high debt, and unsafe dividend make the outlook bleak.
  • The company's transition from office to multifamily assets is visionary, but current execution is weighed down by weak financials.
  • Dividend yield appears attractive enough but is unsafe, with a high likelihood of further cuts and a payout ratio exceeding 100%.
  • I rate JBGS a Sell due to its falling revenues, weak balance sheet, and risky dividend; most analysts and quant systems agree with this stance.
  • This idea was discussed in more depth with members of my private investing community, iREIT®+HOYA Capital. Learn More »

Red arrow jumping down stacks of golden coins. Illustration of the concept of recession, falling prices of currencies and financial crisis

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Office REITs were one of the main losers of REIT earnings season, according to Hoya Capital, the leading source for sector-level REIT analysis. After a very strong Q4, office leasing volumes for Q1 2025 were disappointing. Rent spreads and



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This article was written by

2.9K Followers

Philip Eric Jones is a financial writer, educator, artist, and inspirational speaker. He writes about investing for retirement with a focus on Growth stocks and REITs.

He is a contributor to the investing group iREIT®+HOYA Capital. The service features a team of analysts focusing on real income-producing asset classes that offer the opportunity for reliable income, diversification, and inflation hedging. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

A Buy, Sell, or Hold rating in this article does not constitute a Buy, Sell, or Hold recommendation. All investors should exercise their own due diligence, before investing in any stock.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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