JBGS - JBG SMITH: The Rally Has More Room To Run

2024-02-24 02:52:32 ET

Summary

• JBG SMITH Properties stock has returned 29% since my initial Buy recommendation and has significantly outperformed the S&P 500.
• The planned relocation of the Washington Wizards and Washington Capitals to National Landing is a key positive for JBGS.
• I am not concerned by the company's recent dividend reduction as I prefer to see the company focus on share repurchases.
• The stock remains reasonably valued vs. peers and relative to its own history.
• I am reiterating my Buy rating on JBGS.

JBG SMITH Properties (JBGS) have rallied sharply since my initial Buy recommendation JBG SMITH: Time To Buy This Beaten Down REIT was published on November 11, 2023. Since then, JBGS has delivered a total return of ~29%. The S&P 500 has delivered a total return of ~13% over the same time period.

The move higher in JBGS shares has been driven by a combination of factors including the announcement that the Washington Wizards and Washington Capitals will relocate to National Landing, strong Q4 2023 results, improved FY 2024 earnings expectations, and multiple expansion....

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