JBG SMITH Reports $19.2 Million Net Loss in Q2 2025, Revenue Declines

JBG SMITH Properties reported a net loss attributable to common shareholders of $19.2 million, or $0.29 per diluted share, for the three months ended June 30, 2025, compared to a net loss of $24.4 million, or $0.27 per diluted share, for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net loss of $65.0 million, or $0.87 per diluted share, compared to a loss of $56.6 million, or $0.63 per diluted share, in the prior year. Total revenue for the second quarter of 2025 was $126.5 million, down from $135.3 million in the same quarter of 2024, primarily due to a decrease in property rental revenue and third-party real estate services revenue.

The company experienced a significant decline in property rental revenue, which fell to $106.5 million in the second quarter of 2025 from $112.5 million in the same quarter of 2024. This decrease was attributed to a $7.6 million drop in revenue from commercial assets, partially offset by a slight increase in multifamily asset revenue. Additionally, third-party real estate services revenue decreased to $14.8 million from $17.4 million year-over-year. The overall decrease in revenue was accompanied by a reduction in total expenses, which fell to $128.2 million from $138.4 million, driven by lower depreciation and amortization expenses.

In terms of strategic developments, JBG SMITH acquired Tysons Dulles Plaza, a 491,494-square-foot commercial asset, for $42.3 million in May 2025. The company also sold a 40% noncontrolling interest in a real estate venture that owns West Half for $100 million. During the first half of 2025, JBG SMITH sold two multifamily assets and one development parcel for total gross sales proceeds of $391 million. The company continues to focus on its placemaking initiatives in the National Landing area, which is expected to drive long-term growth.

Operationally, JBG SMITH's in-service operating multifamily portfolio was 92.9% occupied as of June 30, 2025, a decrease from 94.3% in the previous year. The office portfolio occupancy was reported at 74.8%, down from 80.6% a year earlier. The company noted that it took approximately 618,000 square feet of office space out of service in 2024 and early 2025, which is part of its strategy to reduce competitive office inventory in National Landing. The company is also advancing its development pipeline, which includes 19 assets totaling 10.7 million square feet of estimated potential development density.

Looking ahead, JBG SMITH remains focused on maximizing long-term net asset value through thoughtful capital allocation and strategic investments. The company plans to continue its share repurchase program, which had a capacity of $499.2 million as of June 30, 2025, and is exploring opportunities in the distressed office market. The company anticipates that cash flows from operations, along with proceeds from asset sales and financings, will be sufficient to meet its liquidity needs and support ongoing operations.