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JBG Smith postpones earnings after $356M court damages order
The D.C. Superior Court awarded about $118.7M in damages and ordered defendants to pay triple that amount, with JBG Smith expecting results on or before Aug. 10.
JBG Smith postponed the release of its second-quarter earnings after a D.C. Superior Court ruling in the Wardman Tower construction-defects lawsuit required the company, among others, to pay approximately $356M in damages.
According to Bisnow, the court ruled in favor of the Wardman Tower condominium association, with damages determined at $118.7M and the defendants ordered to pay three times that amount. The REIT said it is delaying its earnings to allow time to assess the impact of the judgment.
JBG Smith said it intends to appeal and expects to release its financial results on or before Aug. 10, after being scheduled to report following the market close Tuesday.
The dispute stems from the 2017 conversion of the former historic Wardman Tower hotel at 2660 Connecticut Ave. NW into a 32-unit condo building, with units sold for $4M and up, Bisnow reported. In its 2020 lawsuit, the condominium association alleged misrepresentations about build quality despite alleged defects tied to items including elevators and the electrical system, and the court ruling is described as another setback for a REIT that has reported losses for 12 straight quarters.