JBGS

JBG SMITH Properties

Finance/Real Estate


Presented:04/05/2018
Price:$33.96
Cap:$4.01B
Current Price:$18.07
Cap:$1.56B

Presented

Date04/05/2018
Price$33.96
Market Cap$4.01B
Ent Value$6.58B
P/E RatioN/A
Book Value$25.18
Div Yield2.65%
Shares O/S117.96M
Ave Daily Vol474,627
Short Int1.41%

Current

Price$18.07
Market Cap$1.56B
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.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), JBG Smith Properties (JBGS), Vornado Realty Trust (VNO)

Highlights

The presenter is long JBG Smith Properties (JBGS), a relatively new REIT that was created in August 2017 following the combination of Vornado’s DC assets with JBG. In his opinion, JBGS is well positioned to benefit from an uptrend in Crystal City (Arlington), VA, and there is optionality around the potential for Amazon to select Northern VA as the site for its new HQ2. While he is bearish on much of the REIT sector, JBGS stands out as attractively valued at a cap rate of ~6.5% and yield of just under 3%. The relatively young management team has grown NOI by 6% - 7% annually for over five years, but JBGS is still new to REIT investors and the price hasn’t moved much since it began trading (up ~5% to ~$33). He is willing to hold the long position through 2018 to see what Amazon decides, and if the team can continue to execute on its development plans.

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Idea Discussion

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