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JBG Smith Positioned to Weather “Prolonged Recession”
JBG Smith Properties CEO Matt Kelly said the Bethesda, MD-based REIT is in a strong positi0n coming into the pandemic-driven downturn, thanks to $2 billion in liquidity, low leverage levels and a recession-resistant base of office tenants, including Amazon and government agencies. However, Kelly noted in his quarterly letter to investors earlier this week, “we fully expect, and are prepared for, a prolonged recession and an extended recovery.”
The REIT reported strong April rent collections from office and apartment tenants, at 97% and 96%, respectively. Retail and restaurants for the month dropped to 47%, though, and parking revenues were off by 54%.
Kelly warned that April’s results didn’t necessarily predict the portfolio’s long-term collection rate, and that rent metrics would likely worsen the longer the crisis continued. He added, “We believe this downturn will present potentially attractive investment opportunities, and we intend to maintain discipline.”
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