| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 21.35 | 16 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 1.83 | -90 |
| Graham Formula | 1.40 | -92 |
JBG SMITH Properties (NYSE: JBGS) is a leading real estate investment trust (REIT) specializing in high-growth mixed-use properties in the Washington, DC metropolitan area. As an S&P 400 company, JBG SMITH focuses on placemaking, creating vibrant, amenity-rich neighborhoods with strong transit connectivity—98% of its portfolio is Metro-served. The company owns, operates, and develops a dynamic mix of office, multifamily, and retail assets totaling 20.7 million square feet, with an additional 17.1 million square feet in its development pipeline. A key highlight is its role as the exclusive developer for Amazon's HQ2 in National Landing, positioning it at the forefront of urban revitalization. Operating in the competitive REIT - Office sector, JBG SMITH leverages its deep regional expertise and strategic partnerships to drive long-term value in one of the nation's most resilient real estate markets.
JBG SMITH presents a high-risk, high-reward opportunity tied to the recovery of the Washington, DC office market and the execution of its National Landing development. While its negative net income (-$143.5M in FY 2023) and high leverage ($2.6B total debt) raise concerns, the company benefits from its strategic relationship with Amazon and a transit-oriented portfolio that aligns with post-pandemic urban trends. The 5.8% dividend yield (based on $0.70/share) offers income appeal, but investors should monitor leasing velocity and interest rate sensitivity (β=1.11). The stock may appeal to those bullish on the long-term demand for mixed-use, walkable communities in the Capital region.
JBG SMITH differentiates itself through its hyper-local focus on the Washington, DC metro—a market with high barriers to entry due to zoning complexity and limited land availability. Its competitive edge stems from: (1) Master developer status in National Landing, anchored by Amazon's HQ2, which provides visibility on future NOI growth; (2) A transit-dominant portfolio (98% Metro-served) that commands rent premiums as employers prioritize accessibility; and (3) Vertical integration through in-house development and property management capabilities. However, the company faces stiff competition from larger national REITs with greater balance sheet flexibility. Its concentrated geographic exposure (100% DC metro) is both a strength (local expertise) and a risk (market-specific downturns). While traditional office REITs struggle with hybrid work trends, JBG SMITH's mixed-use model (40% multifamily) provides some insulation. Execution risk on its 17.1M SF pipeline—particularly timing of deliveries amid elevated construction costs—will be critical to watch relative to peers.