Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37994 | |
Entity Registrant Name | JBG SMITH PROPERTIES | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 81-4307010 | |
Entity Address, Address Line One | 4747 Bethesda Avenue | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20814 | |
City Area Code | 240 | |
Local Phone Number | 333-3600 | |
Title of 12(b) Security | Common Shares, par value $0.01 per share | |
Trading Symbol | JBGS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 114,390,891 | |
Entity Central Index Key | 0001689796 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real estate, at cost: | ||
Land and improvements | $ 1,217,216 | $ 1,378,218 |
Buildings and improvements | 4,004,286 | 4,513,606 |
Construction in progress, including land | 385,085 | 344,652 |
Real estate, at cost | 5,606,587 | 6,236,476 |
Less: accumulated depreciation | (1,257,871) | (1,368,003) |
Real estate, net | 4,348,716 | 4,868,473 |
Cash and cash equivalents | 162,270 | 264,356 |
Restricted cash | 212,848 | 37,739 |
Tenant and other receivables | 46,605 | 44,496 |
Deferred rent receivable | 154,487 | 192,265 |
Investments in unconsolidated real estate ventures | 414,349 | 462,885 |
Intangible assets, net | 157,819 | 201,956 |
Other assets, net | 82,808 | 240,160 |
Assets held for sale | 0 | 73,876 |
TOTAL ASSETS | 5,579,902 | 6,386,206 |
Liabilities: | ||
Mortgages payable, net | 1,612,169 | 1,777,699 |
Revolving credit facility | 300,000 | |
Unsecured term loans, net | 398,500 | 398,664 |
Accounts payable and accrued expenses | 112,784 | 106,136 |
Other liabilities, net | 111,852 | 342,565 |
Total liabilities | 2,235,305 | 2,925,064 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 521,392 | 522,725 |
Shareholders' equity: | ||
Preferred shares, $0.01 par value - 200,000 shares authorized; none issued | 0 | 0 |
Common shares, $0.01 par value - 500,000 shares authorized; 115,862 and 127,378 shares issued and outstanding as of June 30, 2022 and December 31, 2021 | 1,160 | 1,275 |
Additional paid-in capital | 3,285,511 | 3,539,916 |
Accumulated deficit | (513,746) | (609,331) |
Accumulated other comprehensive income (loss) | 18,640 | (15,950) |
Total shareholders' equity of JBG SMITH Properties | 2,791,565 | 2,915,910 |
Noncontrolling interests | 31,640 | 22,507 |
Total equity | 2,823,205 | 2,938,417 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ 5,579,902 | $ 6,386,206 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized | 200,000 | 200,000 |
Preferred shares, shares issued | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 500,000 | 500,000 |
Common stock, shares issued | 115,862 | 127,378 |
Common shares, shares outstanding | 115,862 | 127,378 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUE | ||||
Property rental | $ 117,036 | $ 122,819 | $ 248,634 | $ 245,060 |
Third-party real estate services, including reimbursements | 22,157 | 26,745 | 46,127 | 64,852 |
Other revenue | 6,312 | 5,080 | 12,709 | 10,021 |
Total revenue | 145,505 | 154,644 | 307,470 | 319,933 |
EXPENSES | ||||
Depreciation and amortization | 49,479 | 56,678 | 107,541 | 121,404 |
Property operating | 35,445 | 35,000 | 76,089 | 69,731 |
Real estate taxes | 14,946 | 18,558 | 33,132 | 36,868 |
General and administrative: | ||||
Corporate and other | 14,782 | 13,895 | 30,597 | 26,370 |
Third-party real estate services | 24,143 | 25,557 | 51,192 | 54,493 |
Share-based compensation related to Formation Transaction and special equity awards | 1,577 | 4,441 | 3,821 | 9,386 |
Transaction and other costs | 1,987 | 2,270 | 2,886 | 5,960 |
Total expenses | 142,359 | 156,399 | 305,258 | 324,212 |
OTHER INCOME (EXPENSE) | ||||
Income (loss) from unconsolidated real estate ventures, net | (2,107) | 3,953 | 1,038 | 3,010 |
Interest and other income (loss), net | 1,672 | (38) | 15,918 | (29) |
Interest expense | (16,041) | (16,773) | (32,319) | (33,069) |
Gain on the sale of real estate, net | 158,767 | 11,290 | 158,631 | 11,290 |
Loss on the extinguishment of debt | (1,038) | (1,629) | ||
Total other income (expense) | 141,253 | (1,568) | 141,639 | (18,798) |
INCOME (LOSS) BEFORE INCOME TAX (EXPENSE) BENEFIT | 144,399 | (3,323) | 143,851 | (23,077) |
Income tax (expense) benefit | (2,905) | 5 | (2,434) | (4,310) |
NET INCOME (LOSS) | 141,494 | (3,318) | 141,417 | (27,387) |
Net (income) loss attributable to redeemable noncontrolling interests | (18,248) | 345 | (18,258) | 2,575 |
Net loss attributable to noncontrolling interests | 29 | 84 | 1,108 | |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 123,275 | $ (2,973) | $ 123,243 | $ (23,704) |
EARNINGS (LOSS) PER COMMON SHARE: | ||||
EARNINGS (LOSS) PER COMMON SHARE - BASIC | $ 1.02 | $ (0.03) | $ 0.99 | $ (0.19) |
EARNINGS (LOSS) PER COMMON SHARE - DILUTED | $ 1.02 | $ (0.03) | $ 0.99 | $ (0.19) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 121,316 | 131,480 | 123,984 | 131,510 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 121,316 | 131,480 | 123,984 | 131,510 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||||
NET INCOME (LOSS) | $ 141,494 | $ (3,318) | $ 141,417 | $ (27,387) |
OTHER COMPREHENSIVE INCOME: | ||||
Change in fair value of derivative financial instruments | 7,225 | (1,404) | 32,320 | 5,007 |
Reclassification of net loss on derivative financial instruments from accumulated total other comprehensive income (loss) into interest expense | 2,791 | 3,834 | 6,547 | 7,575 |
Total other comprehensive income | 10,016 | 2,430 | 38,867 | 12,582 |
COMPREHENSIVE INCOME (LOSS) | 151,510 | (888) | 180,284 | (14,805) |
Net (income) loss attributable to redeemable noncontrolling interests | (18,248) | 345 | (18,258) | 2,575 |
Net loss attributable to noncontrolling interests | 29 | 84 | 1,108 | |
Other comprehensive income attributable to redeemable noncontrolling interests | (1,311) | (235) | (4,277) | (1,208) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO JBG SMITH PROPERTIES | $ 131,980 | $ (778) | $ 157,833 | $ (12,330) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Consolidated Subsidiaries | Total |
Balance at beginning of period at Dec. 31, 2020 | $ 1,319 | $ 3,657,643 | $ (412,944) | $ (39,979) | $ 167 | $ 3,206,206 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 131,778 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) attributable to common shareholders and noncontrolling interests | (23,704) | (1,108) | (24,812) | |||
Conversion of common limited partnership units ("OP Units") to common shares | $ 6 | 21,674 | 21,680 | |||
Conversion of common limited partnership units ("OP Units") to common shares (in shares) | 649 | |||||
Common shares repurchased | $ (6) | (19,197) | (19,203) | |||
Common shares repurchased (in shares) | (620) | |||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") | 1,339 | 1,339 | ||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") (in shares) | 34 | |||||
Dividends declared on common shares | (29,582) | (29,582) | ||||
Contributions from noncontrolling interests, net | 17,481 | 17,481 | ||||
Redeemable noncontrolling interests redemption value adjustment and other comprehensive income allocation | (11,242) | (1,208) | (12,450) | |||
Total other comprehensive income | 12,582 | 12,582 | ||||
Balance at end of period (in shares) at Jun. 30, 2021 | 131,841 | |||||
Balance at end of period at Jun. 30, 2021 | $ 1,319 | 3,650,217 | (466,230) | (28,605) | 16,540 | 3,173,241 |
Balance at beginning of period at Mar. 31, 2021 | $ 1,314 | 3,631,277 | (433,675) | (30,800) | 8,730 | 3,176,846 |
Balance at beginning of period (in shares) at Mar. 31, 2021 | 131,277 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) attributable to common shareholders and noncontrolling interests | (2,973) | (2,973) | ||||
Conversion of common limited partnership units ("OP Units") to common shares | $ 5 | 17,756 | 17,761 | |||
Conversion of common limited partnership units ("OP Units") to common shares (in shares) | 530 | |||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") | 1,090 | 1,090 | ||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") (in shares) | 34 | |||||
Dividends declared on common shares | (29,582) | (29,582) | ||||
Contributions from noncontrolling interests, net | 7,810 | 7,810 | ||||
Redeemable noncontrolling interests redemption value adjustment and other comprehensive income allocation | 94 | (235) | (141) | |||
Total other comprehensive income | 2,430 | 2,430 | ||||
Balance at end of period (in shares) at Jun. 30, 2021 | 131,841 | |||||
Balance at end of period at Jun. 30, 2021 | $ 1,319 | 3,650,217 | (466,230) | (28,605) | 16,540 | 3,173,241 |
Balance at beginning of period at Dec. 31, 2021 | $ 1,275 | 3,539,916 | (609,331) | (15,950) | 22,507 | $ 2,938,417 |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 127,378 | 127,378 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) attributable to common shareholders and noncontrolling interests | 123,243 | (84) | $ 123,159 | |||
Conversion of common limited partnership units ("OP Units") to common shares | $ 3 | 7,773 | 7,776 | |||
Conversion of common limited partnership units ("OP Units") to common shares (in shares) | 280 | |||||
Common shares repurchased | $ (118) | (306,921) | (307,039) | |||
Common shares repurchased (in shares) | (11,840) | |||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") | 1,429 | 1,429 | ||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") (in shares) | 44 | |||||
Dividends declared on common shares | (27,658) | (27,658) | ||||
Contributions from noncontrolling interests, net | 9,217 | 9,217 | ||||
Redeemable noncontrolling interests redemption value adjustment and other comprehensive income allocation | 43,314 | (4,277) | 39,037 | |||
Total other comprehensive income | 38,867 | $ 38,867 | ||||
Balance at end of period (in shares) at Jun. 30, 2022 | 115,862 | 115,862 | ||||
Balance at end of period at Jun. 30, 2022 | $ 1,160 | 3,285,511 | (513,746) | 18,640 | 31,640 | $ 2,823,205 |
Balance at beginning of period at Mar. 31, 2022 | $ 1,243 | 3,444,793 | (609,363) | 9,935 | 28,438 | 2,875,046 |
Balance at beginning of period (in shares) at Mar. 31, 2022 | 124,248 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) attributable to common shareholders and noncontrolling interests | 123,275 | (29) | 123,246 | |||
Conversion of common limited partnership units ("OP Units") to common shares | $ 1 | 1,761 | 1,762 | |||
Conversion of common limited partnership units ("OP Units") to common shares (in shares) | 72 | |||||
Common shares repurchased | $ (84) | (213,807) | (213,891) | |||
Common shares repurchased (in shares) | (8,499) | |||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") | 1,143 | 1,143 | ||||
Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") (in shares) | 41 | |||||
Dividends declared on common shares | (27,658) | (27,658) | ||||
Contributions from noncontrolling interests, net | 3,231 | 3,231 | ||||
Redeemable noncontrolling interests redemption value adjustment and other comprehensive income allocation | 51,621 | (1,311) | 50,310 | |||
Total other comprehensive income | 10,016 | $ 10,016 | ||||
Balance at end of period (in shares) at Jun. 30, 2022 | 115,862 | 115,862 | ||||
Balance at end of period at Jun. 30, 2022 | $ 1,160 | $ 3,285,511 | $ (513,746) | $ 18,640 | $ 31,640 | $ 2,823,205 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Consolidated Statements of Equity | ||||
Dividends cash declared | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 141,417 | $ (27,387) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Share-based compensation expense | 25,375 | 26,892 |
Depreciation and amortization, including amortization of deferred financing costs | 109,697 | 123,444 |
Deferred rent | (7,237) | (12,170) |
Income from unconsolidated real estate ventures, net | (1,038) | (3,010) |
Amortization of market lease intangibles, net | (621) | (658) |
Amortization of lease incentives | 4,303 | 4,191 |
Loss on extinguishment of debt | 1,629 | |
Gain on the sale of real estate, net | (158,631) | (11,290) |
Loss on operating lease and other receivables | 738 | 975 |
Income from investments, net | (15,282) | |
Return on capital from unconsolidated real estate ventures | 6,028 | 10,348 |
Other non-cash items | (4,781) | 473 |
Changes in operating assets and liabilities: | ||
Tenant and other receivables | (2,847) | 11,204 |
Other assets, net | (3,669) | 274 |
Accounts payable and accrued expenses | (1,375) | 238 |
Other liabilities, net | 13,943 | 32 |
Net cash provided by operating activities | 107,649 | 123,556 |
INVESTING ACTIVITIES: | ||
Development costs, construction in progress and real estate additions | (128,114) | (67,408) |
Proceeds from the sale of real estate | 923,108 | 14,370 |
Proceeds from the sale of investments | 19,030 | |
Distributions of capital from unconsolidated real estate ventures | 52,465 | 4,583 |
Investments in unconsolidated real estate ventures and other investments | (81,185) | (21,990) |
Net cash provided by (used in) investing activities | 785,304 | (70,445) |
FINANCING ACTIVITIES: | ||
Repayments of mortgages payable | (167,132) | (3,342) |
Repayments of revolving credit facility | (300,000) | |
Debt issuance costs | (1,256) | (4,587) |
Proceeds from common shares issued pursuant to ESPP | 800 | 880 |
Common shares repurchased | (297,040) | (19,203) |
Dividends paid to common shareholders | (56,323) | (59,232) |
Distributions to redeemable noncontrolling interests | (8,196) | (9,712) |
Distributions to noncontrolling interests | (21) | (22) |
Contributions from noncontrolling interests | 9,238 | 17,464 |
Net cash used in financing activities | (819,930) | (77,754) |
Net increase (decrease) in cash and cash equivalents, and restricted cash | 73,023 | (24,643) |
Cash and cash equivalents, and restricted cash, beginning of period | 302,095 | 263,336 |
Cash and cash equivalents, and restricted cash, end of period | 375,118 | 238,693 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH INFORMATION: | ||
Cash paid for interest (net of capitalized interest of $3,928 and $3,256 in 2022 and 2021) | 34,612 | 30,335 |
Accrued capital expenditures included in accounts payable and accrued expenses | 57,426 | 41,662 |
Write-off of fully depreciated assets | 7,993 | 43,185 |
Deconsolidation of real estate asset | 26,476 | |
Conversion of OP Units to common shares | 7,776 | 21,680 |
Cash paid for amounts included in the measurement of lease liabilities for operating leases | $ 1,092 | $ 1,320 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD: | ||||||
Cash and cash equivalents | $ 162,270 | $ 201,150 | $ 162,270 | $ 201,150 | $ 264,356 | |
Restricted cash | 212,848 | 37,543 | 212,848 | 37,543 | 37,739 | |
Cash and cash equivalents, and restricted cash | 375,118 | 238,693 | 375,118 | 238,693 | $ 302,095 | $ 263,336 |
Capitalized interest | $ 2,157 | $ 1,546 | $ 3,928 | $ 3,256 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | 1. Organization JBG SMITH Properties ("JBG SMITH"), a Maryland real estate investment trust ("REIT"), owns and operates a portfolio of commercial and multifamily assets amenitized with ancillary retail. JBG SMITH's portfolio reflects its longstanding strategy of owning and operating assets within Metro-served submarkets in the Washington, D.C. metropolitan area with high barriers to entry and vibrant urban amenities. Approximately two-thirds We were organized for the purpose of receiving, via the spin-off on July 17, 2017 (the "Separation"), substantially all of the assets and liabilities of Vornado Realty Trust's ("Vornado") Washington, D.C. segment. On July 18, 2017, we acquired the management business, and certain assets and liabilities of JBG (the "Combination"). The Separation and the Combination are collectively referred to as the "Formation Transaction." As of June 30, 2022, our Operating Portfolio consisted of 56 operating assets comprising 35 commercial assets totaling 10.5 million square feet (8.9 million square feet at our share), 19 multifamily assets totaling 7,359 units (6,496 units at our share) and two wholly owned land assets for which we are the ground lessor. Additionally, we have: (i) two under-construction multifamily assets with 1,583 units (1,583 units at our share); (ii) eight near-term development assets totaling 3.7 million square feet (3.5 million square feet at our share) of estimated potential development density; and (iii) 16 future development assets totaling 8.8 million square feet (6.3 million square feet at our share) of estimated potential development density. We derive our revenue primarily from leases with commercial and multifamily tenants, which include fixed and percentage rents, and reimbursements from tenants for certain expenses such as real estate taxes, property operating expenses, and repairs and maintenance. In addition, our third-party asset management and real estate services business provides fee-based real estate services. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not contain certain information required in annual financial statements and notes as required under GAAP. In our opinion, all adjustments considered necessary for a fair presentation have been included, and all such adjustments are of a normal recurring nature. All intercompany transactions and balances have been eliminated. The results of operations for the three and six months ended June 30, 2022 and 2021 are not necessarily indicative of the results that may be expected for a full year. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 22, 2022 ("Annual Report"). The accompanying condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries and consolidated variable interest entities ("VIEs"), including JBG SMITH LP. See Note 5 for additional information on our VIEs. The portions of the equity and net income (loss) of consolidated entities that are not attributable to us are presented separately as amounts attributable to noncontrolling interests in our condensed consolidated financial statements. References to our financial statements refer to our unaudited condensed consolidated financial statements as of June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021. References to our balance sheets refer to our condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021. References to our statements of operations refer to our condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021. References to our statements of comprehensive income (loss) refer to our condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2022 and 2021. Income Taxes We have elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the "Code"). Under those sections, a REIT which distributes at least 90% of its REIT taxable income as dividends to its shareholders each year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders. We currently adhere and intend to continue to adhere to these requirements and to maintain our REIT status in future periods. We also participate in the activities conducted by our subsidiary entities that have elected to be treated as taxable REIT subsidiaries under the Code. As such, we are subject to federal, state and local taxes on the income from those activities. Reclassification Intangible assets totaling $202.0 million were reclassified from "Other assets, net" to "Intangible assets, net" in our balance sheet as of December 31, 2021 to present intangible assets separately from other assets, which is consistent with our current year presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Significant Accounting Policies There were no material changes to our significant accounting policies disclosed in our Annual Report. Use of Estimates The preparation of the financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant of these estimates include: (i) the underlying cash flows and holding periods used in assessing impairment of our real estate assets; (ii) the determination of useful lives for tangible and intangible assets; and (iii) the assessment of the collectability of receivables, including deferred rent receivables. Longer estimated holding periods for real estate assets directly reduce the likelihood of recording an impairment loss. If there is a change in the strategy for an asset or if market conditions dictate an earlier sale date, an impairment loss may be recognized, and such loss could be material. Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update 2020-04, Reference Rate Reform ("Topic 848"). Topic 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in Topic 848 is optional and may be elected over the period of March 12, 2020 through December 31, 2022 as reference rate reform activities occur. During the six months ended June 30, 2022, we elected to apply the hedge accounting expedient that allows us to continue to amortize previously deferred gains and losses in accumulated other comprehensive income (loss) related to terminated hedges into earnings in accordance with the underlying hedged forecasted transactions. We have elected to apply the hedge accounting expedients related to (i) the assertion that our hedged forecasted transactions remain probable and (ii) the assessments of effectiveness for future London Interbank Offered Rate ("LIBOR") indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the past presentation of our derivatives. We will continue to evaluate the impact of the guidance and may apply other elections, as applicable. |
Dispositions and Assets Held fo
Dispositions and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2022 | |
Dispositions And Assets Held for Sale | |
Dispositions and Assets Held for Sale | 3. Dispositions The following is a summary of activity for the six months ended June 30, 2022: Gain (Loss) Total Gross Cash on the Sale Square Sales Proceeds of Real Date Disposed Assets Segment Location Feet Price from Sale Estate (In thousands) March 28, 2022 Development Parcel Other Arlington, Virginia — $ 3,250 $ 3,149 $ (136) April 1, 2022 Universal Buildings (1) Commercial Washington, D.C. 659 228,000 194,737 41,245 April 13, 2022 7200 Wisconsin Avenue, 1730 M Street, RTC-West and Courthouse Plaza 1 and 2 (2) Commercial/ Bethesda, Maryland, Washington, D.C., Reston, Virginia, Arlington, Virginia 2,944 580,000 527,694 (3,980) May 25, 2022 Pen Place (3) Other Arlington, Virginia 2,082 198,000 197,528 121,502 5,685 $ 1,009,250 $ 923,108 $ 158,631 (1) Cash proceeds from sale excludes a lease termination fee of $24.3 million received during the first quarter of 2022. (2) Assets were sold to an unconsolidated real estate venture. See Note 4 for additional information. "RTC-West" refers to RTC-West, RTC-West Trophy Office and RTC-West Land. Total square feet include 1.4 million square feet of estimated potential development density. In April 2022, $164.8 million of mortgages payable related to 1730 M Street and RTC-West were repaid. (3) Total square feet represent estimated or approved potential development density. During the six months ended June 30, 2022, our unconsolidated real estate ventures sold several assets. See Note 4 for additional information. Assets Held for Sale There were no assets held for sale as of June 30, 2022. The following is a summary of assets held for sale as of December 31, 2021: Total Assets Held Assets Segment Location Square Feet for Sale (In thousands) Pen Place (1) Other Arlington, Virginia 2,082 $ 73,876 (1) Sold to Amazon in May 2022. Total square feet represent estimated or approved potential development density. |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Ventures | 6 Months Ended |
Jun. 30, 2022 | |
Investments in Unconsolidated Real Estate Ventures | |
Investments in Unconsolidated Real Estate Ventures | 4. Investments in Unconsolidated Real Estate Ventures The following is a summary of our investments in unconsolidated real estate ventures: Effective Ownership Real Estate Venture Partners Interest (1) June 30, 2022 December 31, 2021 (In thousands) Prudential Global Investment Management 50.0% $ 205,965 $ 208,421 Landmark Partners ("Landmark") 18.0% - 49.0% 25,437 28,298 CBREI Venture (2) 5.0% - 64.0% 56,170 57,812 Canadian Pension Plan Investment Board ("CPPIB") 55.0% 1,358 48,498 J.P. Morgan Global Alternatives ("J.P. Morgan") (3) 50.0% 60,203 52,769 Berkshire Group 50.0% 50,941 52,770 Brandywine Realty Trust 30.0% 13,694 13,693 Other 581 624 Total investments in unconsolidated real estate ventures (4) $ 414,349 $ 462,885 (1) Reflects our effective ownership interests in the underlying real estate as of June 30, 2022. We have multiple investments with certain venture partners with varying ownership interests in the underlying real estate. (2) On August 1, 2022, we acquired the remaining 36.0% ownership interest in Atlantic Plumbing, a multifamily asset owned by the venture, for $19.7 million. (3) J.P. Morgan is the advisor for an institutional investor. (4) As of June 30, 2022 and December 31, 2021, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $ 12.6 million and $ 18.6 million, resulting principally from capitalized interest and our zero investment balance in the real estate venture with CPPIB that owns 1101 17th Street . On April 13, 2022, we formed an unconsolidated real estate venture with affiliates of Fortress Investment Group LLC ("Fortress") to recapitalize a 1.6 million square foot office portfolio and land parcels for a gross sales price of $580.0 million comprising four wholly owned commercial assets (7200 Wisconsin Avenue, 1730 M Street, RTC-West and Courthouse Plaza 1 and 2). Additionally, we contributed $66.1 million in cash for a 33.5% interest in the venture, while Fortress contributed $131.0 million for a 66.5% interest in the venture. In connection with the transaction, the venture obtained mortgage loans totaling $458.0 million secured by the properties, of which $402.0 million was drawn at closing. We provide asset management, property management and leasing services to the venture. Because our interest in the venture is subordinated to a 15% preferred return to Fortress, we do not anticipate receiving any near-term cash flow distributions from it. As of June 30, 2022, our investment in the venture was zero , and we have discontinued applying the equity method as we have not guaranteed its obligations or otherwise committed to providing financial support. We provide leasing, property management and other real estate services to our unconsolidated real estate ventures. We recognized revenue, including expense reimbursements, of $6.6 million and $12.2 million for the three and six months ended June 30, 2022, and $5.9 million and $11.8 million for the three and six months ended June 30, 2021, for such services. We evaluate reconsideration events as we become aware of them. Reconsideration events include amendments to real estate venture agreements or changes in our partner's ability to make contributions to the venture. Under certain circumstances, we may purchase our partner's interest. A reconsideration event could cause us to consolidate an unconsolidated real estate venture in the future or deconsolidate a consolidated entity. The following is a summary of disposition activity by our unconsolidated real estate ventures for the six months ended June 30, 2022: Mortgages Proportionate Real Estate Gross Payable Share of Venture Ownership Sales Repaid by Aggregate Date Disposed Partner Assets Percentage Price Venture Gain (1) (In thousands) January 27, 2022 Landmark The Alaire, The Terano and 12511 Parklawn Drive 1.8% - 18.0% $ 137,500 $ 79,829 $ 5,243 May 10, 2022 Landmark Galvan 1.8% 152,500 89,500 407 June 1, 2022 CPPIB 1900 N Street 55.0% 265,000 151,709 529 $ 6,179 (1) Included in "Income (loss) from unconsolidated real estate ventures, net" in our statements of operations. The following is a summary of the debt of our unconsolidated real estate ventures: Weighted Average Effective Interest Rate (1) June 30, 2022 December 31, 2021 (In thousands) Variable rate (2) 4.60% $ 499,076 $ 785,369 Fixed rate (3) 4.16% 275,016 309,813 Mortgages payable (4) 774,092 1,095,182 Unamortized deferred financing costs (597) (5,239) Mortgages payable, net (4) (5) $ 773,495 $ 1,089,943 (1) Weighted average effective interest rate as of June 30, 2022. (2) Includes variable rate mortgages payable with interest rate cap agreements. (3) Includes variable rate mortgages payable with interest rates fixed by interest rate swap agreements. (4) Excludes mortgages payable related to the unconsolidated real estate venture with Fortress. (5) See Note 17 for additional information on guarantees of the debt of certain of our unconsolidated real estate ventures. The following is a summary of financial information for our unconsolidated real estate ventures: June 30, 2022 December 31, 2021 (In thousands) Combined balance sheet information: (1) Real estate, net $ 1,684,823 $ 2,116,290 Other assets, net 217,108 264,397 Total assets $ 1,901,931 $ 2,380,687 Mortgages payable, net $ 773,495 $ 1,089,943 Other liabilities, net 81,925 118,752 Total liabilities 855,420 1,208,695 Total equity 1,046,511 1,171,992 Total liabilities and equity $ 1,901,931 $ 2,380,687 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Combined income statement information: (1) Total revenue $ 41,379 $ 47,864 $ 84,253 $ 96,081 Operating income (2) 36,108 41,493 84,534 43,207 Net income (2) 25,127 33,356 64,410 26,830 (1) Excludes amounts related to the unconsolidated real estate venture with Fortress. (2) Includes the gain on the sale of various assets totaling $32.3 million and $77.4 million during the three and six months ended June 30, 2022 and $38.1 million during the three and six months ended June 30, 2021. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entities | |
Variable Interest Entities | 5. We hold various interests in entities deemed to be VIEs, which we evaluate at acquisition, formation, after a change in the ownership agreement, after a change in the entity's economics or after any other reconsideration event to determine if the VIE should be consolidated in our financial statements or should no longer be considered a VIE. An entity is a VIE because it is in the development stage and/or does not hold sufficient equity at risk, or conducts substantially all its operations on behalf of an investor with disproportionately few voting rights. We will consolidate a VIE if we are the primary beneficiary of the VIE, which entails having the power to direct the activities that most significantly impact the VIE’s economic performance. Certain criteria we assess in determining whether we are the primary beneficiary of the VIE include our influence over significant business activities, our voting rights and any noncontrolling interest kick-out or participating rights. Unconsolidated VIEs As of June 30, 2022 and December 31, 2021, we had interests in entities deemed to be VIEs. Although we are engaged to act as the managing partner in charge of day-to-day operations of these entities, we are not the primary beneficiary of these VIEs, as we do not hold unilateral power over activities that, when taken together, most significantly impact the respective VIE's economic performance. We account for our investment in these entities under the equity method. As of June 30, 2022 and December 31, 2021, the net carrying amounts of our investment in these entities was $149.0 million and $145.2 million, which were included in "Investments in unconsolidated real estate ventures" in our balance sheets. Our equity in the income of unconsolidated VIEs is included in "Income (loss) from unconsolidated real estate ventures, net" in our statements of operations. Our maximum loss exposure in these entities is limited to our investments, construction commitments and debt guarantees. See Note 17 for additional information. Consolidated VIEs JBG SMITH LP is our most significant consolidated VIE. We hold 88.4% of the limited partnership interest in JBG SMITH LP, act as the general partner and exercise full responsibility, discretion and control over its day-to-day management. The noncontrolling interests of JBG SMITH LP do not have substantive liquidation rights, substantive kick-out rights without cause or substantive participating rights that could be exercised by a simple majority of noncontrolling interest limited partners (including by such a limited partner unilaterally). Because the noncontrolling interest holders do not have these rights, JBG SMITH LP is a VIE. As general partner, we have the power to direct the activities of JBG SMITH LP that most significantly affect its economic performance, and through our majority interest, we have both the right to receive benefits from and the obligation to absorb losses of JBG SMITH LP. Accordingly, we are the primary beneficiary of JBG SMITH LP and consolidate it in our financial statements. Because we conduct our business through JBG SMITH LP, its total assets and liabilities comprise substantially all of our consolidated assets and liabilities. In conjunction with the acquisition of The Batley in November 2021, we entered into an agreement with a qualified intermediary to facilitate a like-kind exchange. As a result, the qualified intermediary was the legal owner of the entity that owned this property as of December 31, 2021. We determined that the entity that owned the Batley was a VIE, and we were the primary beneficiary of the VIE. We consolidated the property and its operations as of the acquisition date. Legal ownership of this entity was transferred to us by the qualified intermediary when the like-kind exchange agreement was completed with the sale of Pen Place in May 2022, and therefore, is not a VIE as of June 30, 2022. As of June 30, 2022, excluding JBG SMITH LP, we consolidated two VIEs with total assets of $135.4 million and liabilities of $24.6 million. As of December 31, 2021, excluding JBG SMITH LP, we consolidated three VIEs with total assets of $269.7 million and liabilities of $13.9 million. The assets of the VIEs can only be used to settle the obligations of the VIEs, and the liabilities include third-party liabilities of the VIEs for which the creditors or beneficial interest holders do not have recourse against us. |
Other Assets, Net
Other Assets, Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets, Net. | |
Other Assets, Net | 6. The following is a summary of other assets, net: June 30, 2022 December 31, 2021 (In thousands) Prepaid expenses $ 14,651 $ 17,104 Derivative agreements, at fair value 26,334 951 Deferred financing costs, net 9,907 11,436 Deposits 1,870 1,938 Operating lease right-of-use assets 1,521 1,660 Finance lease right-of-use assets (1) — 180,956 Other (2) (3) 28,525 26,115 Total other assets, net $ 82,808 $ 240,160 (1) Represents assets related to finance ground leases at 1730 M Street and Courthouse Plaza 1 and 2, which were sold to an unconsolidated real estate venture in April 2022. (2) As of June 30, 2022 and December 31, 2021, included $14.8 million and $9.8 million of investments in funds, which invest in real estate focused technology companies, that are recorded at their fair value based on their reported net asset value. During the three and six months ended June 30, 2022, we recorded unrealized gains totaling $1.0 million and $1.2 million related to these investments, which are included in "Interest and other income (loss), net" in our statements of operations . (3) As of June 30, 2022 and December 31, 2021, included $8.6 million and $11.3 million of equity investments that are carried at cost. During the three and six months ended June 30, 2022, we recorded a realized gain of $178,000 and $14.1 million related to these investments, which is included in "Interest and other income (loss), net" in our statements of operations . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt | |
Debt | 7. Mortgages Payable The following is a summary of mortgages payable: Weighted Average Effective Interest Rate (1) June 30, 2022 December 31, 2021 (In thousands) Variable rate (2) 3.68% $ 857,446 $ 867,246 Fixed rate (3) 4.45% 763,681 921,013 Mortgages payable 1,621,127 1,788,259 Unamortized deferred financing costs and premium / discount, net (4) (8,958) (10,560) Mortgages payable, net $ 1,612,169 $ 1,777,699 (1) Weighted average effective interest rate as of June 30, 2022. (2) Includes variable rate mortgages payable with interest rate cap agreements. (3) Includes variable rate mortgages payable with interest rates fixed by interest rate swap agreements. (4) As of June 30, 2022 and December 31, 2021, excludes $5.7 million and $6.4 million of net deferred financing costs related to unfunded mortgage loans that were included in "Other assets, net." As of June 30, 2022 and December 31, 2021, the net carrying value of real estate collateralizing our mortgages payable, totaled $1.6 billion and $1.8 billion. Our mortgages payable contain covenants that limit our ability to incur additional indebtedness on these properties and, in certain circumstances, require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. Certain mortgages payable are recourse to us. See Note 17 for additional information. As of June 30, 2022 and December 31, 2021, we had various interest rate swap and cap agreements on certain mortgages payable with an aggregate notional value of $1.2 billion and $1.3 billion. See Note 15 for additional information. Credit Facility As of June 30, 2022, our $1.4 billion credit facility consisted of a $1.0 billion revolving credit facility maturing in January 2025, a $200.0 million unsecured term loan ("Tranche A-1 Term Loan") maturing in January 2025 and a $200.0 million unsecured term loan ("Tranche A-2 Term Loan") maturing in July 2024. In January 2022, the Tranche A-1 Term Loan was amended to extend the maturity date to January 2025 with two one-year extension options, and to amend the interest rate to Secured Overnight Financing Rate ("SOFR") plus 1.15% to SOFR plus 1.75%, varying based on a ratio of our total outstanding indebtedness to a valuation of certain real property and assets. In connection with the loan amendment, we amended the related interest rate swaps, extending the maturity to July 2024 and converting the hedged rate from one-month LIBOR to one-month SOFR. The following is a summary of amounts outstanding under the credit facility: Effective Interest Rate (1) June 30, 2022 December 31, 2021 (In thousands) Revolving credit facility (2) (3) (4) 2.84% $ — $ 300,000 Tranche A-1 Term Loan (5) 2.61% $ 200,000 $ 200,000 Tranche A-2 Term Loan (5) 2.49% 200,000 200,000 Unsecured term loans 400,000 400,000 Unamortized deferred financing costs, net (1,500) (1,336) Unsecured term loans, net $ 398,500 $ 398,664 (1) Effective interest rate as of June 30, 2022. The interest rate for our revolving credit facility excludes a 0.15% facility fee. (2) As of June 30, 2022 and December 31, 2021, letters of credit with an aggregate face amount of $467,000 and $911,000 were outstanding under our revolving credit facility. (3) As of June 30, 2022 and December 31, 2021, excludes $4.2 million and $5.0 million of net deferred financing costs related to our revolving credit facility that were included in "Other assets, net." (4) In July 2022, we borrowed $100.0 million under our revolving credit facility. (5) As of June 30, 2022 and December 31, 2021, the outstanding balance was fixed by interest rate swap agreements. As of June 30, 2022, the interest rate swaps mature in July 2024, fix SOFR at a weighted average interest rate of 1.46% for the Tranche A-1 Term Loan, and fix LIBOR at a weighted average interest rate of 1.34% for the Tranche A-2 Term Loan . In July 2022, the Tranche A-2 Term Loan was amended to increase its borrowing capacity by $200.0 million. The incremental $200.0 million includes a one-year delayed draw feature, which was undrawn as of the date of this filing. The amendment extends the maturity date of the term loan from July 2024 to January 2028 and amends the interest rate to SOFR plus 1.25% to SOFR plus 1.80% per annum, varying based on a ratio of our total outstanding indebtedness to a valuation of certain real property and assets. We also entered into two forward-starting interest rate swaps with an effective date of July 2024 and a total notional value of $200.0 million, which will effectively fix SOFR at a weighted average interest rate of 2.25% through the maturity date. Additionally, we amended the interest rate of the revolving credit facility to SOFR plus 1.15% to SOFR plus 1.60%, varying based on a ratio of our total outstanding indebtedness to a valuation of certain real property and assets. |
Other Liabilities, Net
Other Liabilities, Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities, Net. | |
Other Liabilities, Net | 8. Other Liabilities, Net The following is a summary of other liabilities, net: June 30, 2022 December 31, 2021 (In thousands) Lease intangible liabilities, net 7,008 8,272 Lease assumption liabilities 3,970 5,399 Lease incentive liabilities 5,758 21,163 Liabilities related to operating lease right-of-use assets 5,868 6,910 Liabilities related to finance lease right-of-use assets (1) — 162,510 Prepaid rent 14,752 19,852 Security deposits 13,973 18,188 Environmental liabilities 19,418 18,168 Deferred tax liability, net 6,888 5,340 Dividends payable — 32,603 Derivative agreements, at fair value — 18,361 Deferred purchase price related to the acquisition of a future development parcel 19,793 19,691 Other 14,424 6,108 Total other liabilities, net $ 111,852 $ 342,565 (1) Represents liabilities related to finance ground leases at 1730 M Street and Courthouse Plaza 1 and 2, which were sold to an unconsolidated real estate venture in April 2022. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2022 | |
Redeemable Noncontrolling Interests | |
Redeemable Noncontrolling Interests | 9. JBG SMITH LP OP Units held by persons other than JBG SMITH are redeemable for cash or, at our election, our common shares, subject to certain limitations. Vested LTIP Units are convertible into OP Units and, in turn redeemable into cash or, at our election, our common shares, subject to certain limitations. During the six months ended June 30, 2022 and 2021, unitholders redeemed 280,451 and 648,752 OP Units, which we elected to redeem for an equivalent number of our common shares. As of June 30, 2022, outstanding OP Units and redeemable LTIP Units totaled 15.3 million, representing an 11.6% ownership interest in JBG SMITH LP. In our balance sheets, our OP Units and certain vested LTIP Units are presented at the higher of their redemption value or their carrying value, with adjustments to the redemption value recognized in "Additional paid-in capital." Redemption value per OP Unit is equivalent to the market value of one of our common shares at the end of the period. Consolidated Real Estate Venture We are a partner in a consolidated real estate venture that owns a multifamily asset, The Wren located in Washington, D.C. Pursuant to the terms of the real estate venture agreement, we are obligated to fund all capital contributions until our ownership interest reaches a maximum of 97.0%. Our partner can redeem its interest for cash under certain conditions. As of June 30, 2022, we held a 96.0% ownership interest in the real estate venture. The following is a summary of the activity of redeemable noncontrolling interests: Three Months Ended June 30, 2022 2021 Consolidated Consolidated JBG Real Estate JBG Real Estate SMITH LP Venture Total SMITH LP Venture Total (In thousands) Balance, beginning of period $ 536,725 $ 9,324 $ 546,049 $ 545,051 $ 7,876 $ 552,927 OP Unit redemptions (1,762) — (1,762) (17,761) — (17,761) LTIP Units issued in lieu of cash bonuses (1) 987 — 987 797 — 797 Net income (loss) 18,240 8 18,248 (319) (26) (345) Other comprehensive income 1,311 — 1,311 235 — 235 Distributions (4,110) (79) (4,189) (3,927) — (3,927) Share-based compensation expense 12,369 — 12,369 12,807 — 12,807 Adjustment to redemption value (50,334) (1,287) (51,621) (712) 618 (94) Balance, end of period $ 513,426 $ 7,966 $ 521,392 $ 536,171 $ 8,468 $ 544,639 Six Months Ended June 30, 2022 2021 Consolidated Consolidated JBG Real Estate JBG Real Estate SMITH LP Venture Total SMITH LP Venture Total (In thousands) Balance, beginning of period $ 513,268 $ 9,457 $ 522,725 $ 522,882 $ 7,866 $ 530,748 OP Unit redemptions (7,776) — (7,776) (21,680) — (21,680) LTIP Units issued in lieu of cash bonuses (1) 6,584 — 6,584 5,614 — 5,614 Net income (loss) 18,237 21 18,258 (2,516) (59) (2,575) Other comprehensive income 4,277 — 4,277 1,208 — 1,208 Distributions (4,110) (148) (4,258) (5,289) — (5,289) Share-based compensation expense 24,896 — 24,896 25,371 — 25,371 Adjustment to redemption value (41,950) (1,364) (43,314) 10,581 661 11,242 Balance, end of period $ 513,426 $ 7,966 $ 521,392 $ 536,171 $ 8,468 $ 544,639 (1) See Note 11 for additional information. |
Property Rental Revenue
Property Rental Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Property Rental Revenue | |
Property Rental Revenue | 10. Property Rental Revenue The following is a summary of property rental revenue from our non-cancellable leases: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Fixed $ 105,498 $ 112,972 $ 226,135 $ 225,221 Variable 11,538 9,847 22,499 19,839 Property rental revenue $ 117,036 $ 122,819 $ 248,634 $ 245,060 |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payments | |
Share-Based Payments | 11. LTIP Units and Time-Based LTIP Units In January 2022, we granted to certain employees 660,785 LTIP Units with time-based vesting requirements ("Time-Based LTIP Units") and a weighted average grant-date fair value of $27.41 per unit that vest ratably over four years subject to continued employment. Compensation expense for these units is being recognized over a four-year period. In February 2022, we granted 252,206 fully vested LTIP Units to certain employees, who elected to receive all or a portion of their cash bonuses, related to 2021 service, as LTIP Units. The LTIP units had a weighted average grant-date fair value of $22.19 per unit. Compensation expense totaling $5.6 million for these LTIP Units was recognized in 2021. In April 2022, as part of their annual compensation, we granted to non-employee trustees a total of 95,084 fully vested LTIP Units with a grant-date fair value of $20.90 per unit, which includes LTIP Units elected in lieu of cash retainers. The LTIP Units may not be sold while a trustee is serving on the Board of Trustees. The aggregate grant-date fair value of the Time-Based LTIP Units and the LTIP Units granted during the six months ended June 30, 2022 was $25.7 million. The Time-Based LTIP Units and the LTIP Units were valued based on the closing common share price on the grant date, less a discount for post-grant restrictions. The discount was determined using Monte Carlo simulations based on the following significant assumptions: Expected volatility 30.0% to 41.0% Risk-free interest rate 0.4% to 2.9% Post-grant restriction periods 2 to 6 years Appreciation-Only LTIP Units ("AO LTIP Units") In January 2022, we granted to certain employees 1.5 million performance-based AO LTIP Units with a weighted average grant-date fair value of $4.44 per unit. The AO LTIP Units are structured in the form of profits interests that provide for a share of appreciation determined by the increase in the value of a common share at the time of conversion over the participation threshold of $32.30 . The AO LTIP Units are subject to a TSR modifier whereby the number of AO LTIP Units that will ultimately be earned will be increased or reduced by as much as 25% . The AO LTIP Units have a three-year performance period with 50% of the AO LTIP Units that are earned vesting at the end of the three-year performance period and the remaining 50% vesting on the fourth anniversary of the grant date, subject to continued employment. The AO LTIPs expire on the ten th anniversary of their grant date. The aggregate grant-date fair value of the AO LTIP Units granted during the six months ended June 30, 2022 was $6.6 million, valued using Monte Carlo simulations based on the following significant assumptions: Expected volatility 27.0% Dividend yield 2.7% Risk-free interest rate 1.6% Performance-Based LTIP Units In January 2022, 469,624 LTIP Units with performance-based vesting requirements ("Performance-Based LTIP Units"), which were unvested as of December 31, 2021, were forfeited as the performance measures were not met. ESPP Pursuant to the ESPP, employees purchased 39,851 common shares for $801,000 during the six months ended June 30, 2022. The following is a summary of the significant assumptions used to value the ESPP common shares using the Black-Scholes model: Expected volatility 23.0% Dividend yield 1.6% Risk-free interest rate 0.2% Expected life 6 months Share-Based Compensation Expense The following is a summary of share-based compensation expense: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Time-Based LTIP Units $ 6,202 $ 4,115 $ 12,328 $ 8,495 AO LTIP Units and Performance-Based LTIP Units 3,590 3,160 7,747 6,399 LTIP Units 1,000 1,091 1,000 1,091 Other equity awards (1) 1,399 1,459 2,826 2,922 Share-based compensation expense - other 12,191 9,825 23,901 18,907 Formation Awards 769 718 1,143 1,447 OP Units and LTIP Units (2) 248 2,265 831 5,049 Special Time-Based LTIP Units and Special Performance-Based LTIP Units (3) 560 1,458 1,847 2,890 Share-based compensation related to Formation Transaction and special equity awards (4) 1,577 4,441 3,821 9,386 Total share-based compensation expense 13,768 14,266 27,722 28,293 Less: amount capitalized (1,297) (610) (2,347) (1,401) Share-based compensation expense $ 12,471 $ 13,656 $ 25,375 $ 26,892 (1) Primarily comprised of compensation expense for: (i) fully vested LTIP Units issued to certain employees in lieu of all or a portion of any cash bonuses earned, (ii) restricted share units ("RSUs") and (iii) shares issued under our ESPP. (2) Represents share-based compensation expense for LTIP Units and OP Units issued in the Formation Transaction, which fully vested in July 2022. (3) Represents equity awards issued related to our successful pursuit of Amazon's additional headquarters in National Landing. (4) Included in "General and administrative expense: Share-based compensation related to Formation Transaction and special equity awards" in the accompanying statements of operations . As of June 30, 2022, we had $63.3 million of total unrecognized compensation expense related to unvested share-based payment arrangements, which is expected to be recognized over a weighted average period of 3.3 years. |
Transaction and Other Costs
Transaction and Other Costs | 6 Months Ended |
Jun. 30, 2022 | |
Transaction and Other Costs. | |
Transaction and Other Costs | 12. Transaction and Other Costs The following is a summary of transaction and other costs: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Demolition costs $ 406 $ 439 $ 428 $ 1,447 Integration and severance costs 727 222 872 462 Completed, potential and pursued transaction expenses (1) 854 1,609 1,586 4,051 Transaction and other costs $ 1,987 $ 2,270 $ 2,886 $ 5,960 (1) Primarily consists of legal and dead deal costs related to pursued transactions. |
Interest Expense
Interest Expense | 6 Months Ended |
Jun. 30, 2022 | |
Interest Expense | |
Interest Expense | 13. Interest Expense The following is a summary of interest expense: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Interest expense before capitalized interest $ 18,857 $ 16,800 $ 37,299 $ 33,466 Amortization of deferred financing costs 1,121 1,045 2,251 2,092 Interest expense related to finance lease right-of-use assets 247 428 2,091 854 Net unrealized (gain) loss on derivative financial instruments designated as ineffective hedges (2,027) 46 (5,394) (87) Capitalized interest (2,157) (1,546) (3,928) (3,256) Interest expense $ 16,041 $ 16,773 $ 32,319 $ 33,069 |
Shareholders' Equity and Earnin
Shareholders' Equity and Earnings (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
Shareholders' Equity and Earnings (Loss) Per Common Share | |
Shareholders' Equity and Earnings (Loss) Per Common Share | 14. Common Shares Repurchased In March 2020, our Board of Trustees authorized the repurchase of up to $500.0 million of our outstanding common shares and in June 2022, increased the authorized repurchase amount by $500.0 million to an aggregate of $1.0 billion. During the three and six months ended June 30, 2022, we repurchased and retired 8.5 million and 11.8 million common shares for $213.9 million and $307.0 million, a weighted average purchase price per share of $25.15 and $25.91. During the six months ended June 30, 2021, we repurchased and retired 619,749 common shares for $19.2 million, a weighted average purchase price per share of $30.96. Since we began the share repurchase program, we have repurchased and retired 21.0 million common shares for $569.5 million, a weighted average purchase price per share of $27.12. In July 2022, we repurchased and retired 1.5 million common shares for $36.0 million, a weighted average purchase price per share of $23.92, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Earnings (Loss) Per Common Share The following is a summary of the calculation of basic and diluted earnings (loss) per common share and a reconciliation of the amounts of net income (loss) available to common shareholders used in calculating basic and diluted earnings (loss) per common share to net income (loss): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands, except per share amounts) Net income (loss) $ 141,494 $ (3,318) $ 141,417 $ (27,387) Net (income) loss attributable to redeemable noncontrolling interests (18,248) 345 (18,258) 2,575 Net loss attributable to noncontrolling interests 29 — 84 1,108 Net income (loss) attributable to common shareholders 123,275 (2,973) 123,243 (23,704) Distributions to participating securities (12) (734) (12) (734) Net income (loss) available to common shareholders - basic and diluted $ 123,263 $ (3,707) $ 123,231 $ (24,438) Weighted average number of common shares outstanding - basic and diluted 121,316 131,480 123,984 131,510 Earnings (loss) per common share - basic and diluted $ 1.02 $ (0.03) $ 0.99 $ (0.19) The effect of the redemption of OP Units, Time-Based LTIP Units, fully vested LTIP Units and Special Time-Based LTIP Units that were outstanding as of June 30, 2022 and 2021 is excluded in the computation of diluted earnings (loss) per common share as the assumed exchange of such units for common shares on a one-for-one basis was antidilutive (the assumed redemption of these units would have no impact on the determination of diluted earnings (loss) per share). Since OP Units, Time-Based LTIP Units, LTIP Units and Special Time-Based LTIP Units, which are held by noncontrolling interests, are attributed gains at an identical proportion to the common shareholders, the gains attributable and their equivalent weighted average impact are excluded from net income (loss) available to common shareholders and from the weighted average number of common shares outstanding in calculating diluted earnings (loss) per common share. AO LTIP Units, Performance-Based LTIP Units, Formation Awards and RSUs, which totaled 6.0 million and 5.9 million for the three and six months ended June 30, 2022, and 3.9 million for the three and six months ended June 30, 2021, were excluded from the calculation of diluted earnings (loss) per common share as they were antidilutive, but potentially could be dilutive in the future. Dividends Declared in July 2022 On July 29, 2022, our Board of Trustees declared a quarterly dividend of $0.225 per common share, payable on August 26, 2022 to shareholders of record as of August 12, 2022. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 15. Fair Value Measurements on a Recurring Basis To manage or hedge our exposure to interest rate risk, we follow established risk management policies and procedures, including the use of a variety of derivative financial instruments. We do not enter into derivative financial instruments for speculative purposes. As of June 30, 2022 and December 31, 2021, we had various derivative financial instruments consisting of interest rate swap and cap agreements that are measured at fair value on a recurring basis. The net unrealized gain (loss) on our derivative financial instruments designated as effective hedges was $21.6 million and ($17.2) million as of June 30, 2022 and December 31, 2021 and was recorded in "Accumulated other comprehensive income (loss)" in our balance sheets, of which a portion was allocated to "Redeemable noncontrolling interests." Within the next 12 months, we expect to reclassify $10.0 million of net unrealized gain as a decrease to interest expense. Accounting Standards Codification 820 ("Topic 820"), Fair Value Measurement and Disclosures, defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 — quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 — observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 — unobservable inputs that are used when little or no market data is available. The fair values of the derivative financial instruments are based on the estimated amounts we would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and observable inputs. The derivative financial instruments are classified within Level 2 of the valuation hierarchy. The following is a summary of assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Total Level 1 Level 2 Level 3 (In thousands) June 30, 2022 Derivative financial instruments designated as effective hedges: Classified as assets in "Other assets, net" $ 20,383 — $ 20,383 — Derivative financial instruments designated as ineffective hedges: Classified as assets in "Other assets, net" 5,951 — 5,951 — December 31, 2021 Derivative financial instruments designated as effective hedges: Classified as assets in "Other assets, net" $ 393 — $ 393 — Classified as liabilities in "Other liabilities, net" 18,361 — 18,361 — Derivative financial instruments designated as ineffective hedges: Classified as assets in "Other assets, net" 558 — 558 — The fair values of our derivative financial instruments were determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of the derivative financial instrument. This analysis reflected the contractual terms of the derivative, including the period to maturity, and used observable market-based inputs, including interest rate market data and implied volatilities in such interest rates. While it was determined that the majority of the inputs used to value the derivatives fall within Level 2 of the fair value hierarchy under authoritative accounting guidance, the credit valuation adjustments associated with the derivatives also utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default. However, as of June 30, 2022 and December 31, 2021, the significance of the impact of the credit valuation adjustments on the overall valuation of the derivative financial instruments was assessed, and it was determined that these adjustments were not significant to the overall valuation of the derivative financial instruments. As a result, it was determined that the derivative financial instruments in their entirety should be classified in Level 2 of the fair value hierarchy. The net unrealized gains and losses included in "Other comprehensive income" in our statements of comprehensive income (loss) for the three and six months ended June 30, 2022 and 2021 were attributable to the net change in unrealized gains or losses related to the interest rate swaps that were outstanding during those periods, none of which were reported in our statements of operations as the interest rate swaps were documented and qualified as hedging instruments. Financial Assets and Liabilities Not Measured at Fair Value As of June 30, 2022 and December 31, 2021, all financial assets and liabilities were reflected in our balance sheets at amounts which, in our estimation, reasonably approximated their fair values, except for the following: June 30, 2022 December 31, 2021 Carrying Carrying Amount (1) Fair Value Amount (1) Fair Value (In thousands) Financial liabilities: Mortgages payable $ 1,621,127 $ 1,606,673 $ 1,788,259 $ 1,814,780 Revolving credit facility — — 300,000 300,363 Unsecured term loans 400,000 400,263 400,000 400,519 (1) The carrying amount consists of principal only. The fair values of the mortgages payable, revolving credit facility and unsecured term loans were determined using Level 2 inputs of the fair value hierarchy. The fair value of our mortgages payable is estimated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit profiles based on market sources. The fair value of our revolving credit facility and unsecured term loans is calculated based on the net present value of payments over the term of the facilities using estimated market rates for similar notes and remaining terms. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information | |
Segment Information | 16. We review operating and financial data for each property on an individual basis; therefore, each of our individual properties is a separate operating segment. We define our reportable segments to be aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker ("CODM"), makes key operating decisions, evaluates financial results, allocates resources and manages our business. Accordingly, we aggregate our operating segments into three reportable segments (commercial, multifamily, and third-party asset management and real estate services) based on the economic characteristics and nature of our assets and services. To conform to the current period presentation, we have reclassified the prior period segment financial data for 1700 M Street, for which we are the ground lessor, that had been classified as part of the commercial segment to other to better align with our internal reporting. The CODM measures and evaluates the performance of our operating segments, with the exception of the third-party asset management and real estate services business, based on the net operating income ("NOI") of properties within each segment. NOI includes property rental revenue and parking revenue, and deducts property operating expenses and real estate taxes. With respect to the third-party asset management and real estate services business, the CODM reviews revenue streams generated by this segment ("Third-party real estate services, including reimbursements"), as well as the expenses attributable to the segment ("General and administrative: third-party real estate services"), which are both disclosed separately in our statements of operations. The following represents the components of revenue from our third-party asset management and real estate services business: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Property management fees $ 4,976 $ 4,776 $ 9,784 $ 9,718 Asset management fees 1,513 2,229 3,284 4,457 Development fees (1) 2,148 4,392 5,687 18,642 Leasing fees 1,038 1,424 2,877 2,284 Construction management fees 37 234 187 406 Other service revenue 1,499 1,790 2,315 3,488 Third-party real estate services revenue, excluding reimbursements 11,211 14,845 24,134 38,995 Reimbursement revenue (2) 10,946 11,900 21,993 25,857 Third-party real estate services revenue, including reimbursements 22,157 26,745 46,127 64,852 Third-party real estate services expenses 24,143 25,557 51,192 54,493 Third-party real estate services revenue less expenses $ (1,986) $ 1,188 $ (5,065) $ 10,359 (1) As of June 30, 2022, we had estimated unrecognized development fee revenue totaling $43.2 million, of which $7.1 million, $12.3 million and $6.6 million is expected to be recognized during the remainder of 2022 , 2023 and 2024 , and $17.2 million is expected to be recognized thereafter through 2027 as unsatisfied performance obligations are completed. (2) Represents reimbursement of expenses incurred by us on behalf of third parties, including allocated payroll costs and amounts paid to third-party contractors for construction management projects. Management company assets primarily consist of management and leasing contracts with a net book value of $16.7 million and $19.6 million as of June 30, 2022 and December 31, 2021, which are classified in "Intangible assets, net" in our balance sheets. Consistent with internal reporting presented to our CODM and our definition of NOI, the third-party asset management and real estate services operating results are excluded from the NOI data below. The following is the reconciliation of net income (loss) attributable to common shareholders to consolidated NOI: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Net income (loss) attributable to common shareholders $ 123,275 $ (2,973) $ 123,243 $ (23,704) Add: Depreciation and amortization expense 49,479 56,678 107,541 121,404 General and administrative expense: Corporate and other 14,782 13,895 30,597 26,370 Third-party real estate services 24,143 25,557 51,192 54,493 Share-based compensation related to Formation Transaction and special equity awards 1,577 4,441 3,821 9,386 Transaction and other costs 1,987 2,270 2,886 5,960 Interest expense 16,041 16,773 32,319 33,069 Loss on the extinguishment of debt 1,038 — 1,629 — Income tax expense (benefit) 2,905 (5) 2,434 4,310 Net income (loss) attributable to redeemable noncontrolling interests 18,248 (345) 18,258 (2,575) Net loss attributable to noncontrolling interests (29) — (84) (1,108) Less: Third-party real estate services, including reimbursements revenue 22,157 26,745 46,127 64,852 Other revenue 1,798 1,904 3,994 4,090 Income (loss) from unconsolidated real estate ventures, net (2,107) 3,953 1,038 3,010 Interest and other income (loss), net 1,672 (38) 15,918 (29) Gain on the sale of real estate, net 158,767 11,290 158,631 11,290 Consolidated NOI $ 71,159 $ 72,437 $ 148,128 $ 144,392 The following is a summary of NOI by segment. Items classified in the Other column include future development assets, assets ground leased to third parties, corporate entities and the elimination of inter-segment activity. Three Months Ended June 30, 2022 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 71,903 $ 42,939 $ 2,194 $ 117,036 Parking revenue 4,187 250 77 4,514 Total property revenue 76,090 43,189 2,271 121,550 Property expense: Property operating 19,624 14,870 951 35,445 Real estate taxes 9,018 5,054 874 14,946 Total property expense 28,642 19,924 1,825 50,391 Consolidated NOI $ 47,448 $ 23,265 $ 446 $ 71,159 Three Months Ended June 30, 2021 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 89,189 $ 32,718 $ 912 $ 122,819 Parking revenue 2,959 110 107 3,176 Total property revenue 92,148 32,828 1,019 125,995 Property expense: Property operating 25,097 12,042 (2,139) 35,000 Real estate taxes 12,148 5,065 1,345 18,558 Total property expense 37,245 17,107 (794) 53,558 Consolidated NOI $ 54,903 $ 15,721 $ 1,813 $ 72,437 Six Months Ended June 30, 2022 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 159,524 $ 85,047 $ 4,063 $ 248,634 Parking revenue 8,199 384 132 8,715 Total property revenue 167,723 85,431 4,195 257,349 Property expense: Property operating 45,826 28,625 1,638 76,089 Real estate taxes 20,795 10,275 2,062 33,132 Total property expense 66,621 38,900 3,700 109,221 Consolidated NOI $ 101,102 $ 46,531 $ 495 $ 148,128 Six Months Ended June 30, 2021 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 176,370 $ 65,304 $ 3,386 $ 245,060 Parking revenue 5,649 175 107 5,931 Total property revenue 182,019 65,479 3,493 250,991 Property expense: Property operating 49,061 24,237 (3,567) 69,731 Real estate taxes 23,920 10,310 2,638 36,868 Total property expense 72,981 34,547 (929) 106,599 Consolidated NOI $ 109,038 $ 30,932 $ 4,422 $ 144,392 The following is a summary of certain balance sheet data by segment: Commercial Multifamily Other Total (In thousands) June 30, 2022 Real estate, at cost $ 2,722,907 $ 2,481,213 $ 402,467 $ 5,606,587 Investments in unconsolidated real estate ventures 233,519 96,030 84,800 414,349 Total assets 3,016,911 1,856,493 706,498 5,579,902 December 31, 2021 Real estate, at cost $ 3,422,278 $ 2,367,712 $ 446,486 $ 6,236,476 Investments in unconsolidated real estate ventures 281,515 103,389 77,981 462,885 Total assets 3,591,839 1,797,807 996,560 6,386,206 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 17. Commitments and Contingencies Insurance We maintain general liability insurance with limits of $150.0 million per occurrence and in the aggregate, and property and rental value insurance coverage with limits of $1.5 billion per occurrence, with sub-limits for certain perils such as floods and earthquakes on each of our properties. We also maintain coverage, through our wholly owned captive insurance subsidiary, for a portion of the first loss on the above limits and for both terrorist acts and for nuclear, biological, chemical or radiological terrorism events with limits of $2.0 billion per occurrence. These policies are partially reinsured by third-party insurance providers. We will continue to monitor the state of the insurance market, and the scope and costs of coverage for acts of terrorism. We cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for deductibles and losses in excess of the insurance coverage, which could be material. Our debt, consisting of mortgages payable secured by our properties, a revolving credit facility and unsecured term loans, contains customary covenants requiring adequate insurance coverage. Although we believe that we currently have adequate insurance coverage, we may not be able to obtain an equivalent amount of coverage at a reasonable cost in the future. If lenders insist on greater coverage than we are able to obtain, it could adversely affect our ability to finance or refinance our properties. Construction Commitments As of June 30, 2022, we had assets under construction that will, based on our current plans and estimates, require an additional $528.5 million to complete, which we anticipate will be primarily expended over the next two Environmental Matters Most of our assets have been subject, at some point, to environmental assessments that are intended to evaluate the environmental condition of the assets. The environmental assessments did not reveal any material environmental contamination that we believe would have a material adverse effect on our overall business, financial condition or results of operations, or that have not been anticipated and remediated during site redevelopment as required by law. Nevertheless, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites or changes in cleanup requirements would not result in significant cost to us. Environmental liabilities totaled $19.4 million and $18.2 million as of June 30, 2022 and December 31, 2021 and are included in "Other liabilities, net" in our balance sheets. Other As of June 30, 2022, we had committed tenant-related obligations totaling $74.3 million ($68.8 million related to our consolidated entities and $5.5 million related to our unconsolidated real estate ventures at our share). The timing and amounts of payments for tenant-related obligations are uncertain and may only be due upon satisfactory performance of certain conditions. There are various legal actions against us in the ordinary course of business. In our opinion, the outcome of such matters will not have a material adverse effect on our financial condition, results of operations or cash flows. From time to time, we (or ventures in which we have an ownership interest) have agreed, and may in the future agree with respect to unconsolidated real estate ventures, to (i) guarantee portions of the principal, interest and other amounts in connection with borrowings, (ii) provide customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) in connection with borrowings or (iii) provide guarantees to lenders and other third parties for the completion of development projects. We customarily have agreements with our outside venture partners whereby the partners agree to reimburse the real estate venture or us for their share of any payments made under certain of these guarantees. At times, we also have agreements with certain of our outside venture partners whereby we agree to either indemnify the partners and/or the associated ventures with respect to certain contingent liabilities associated with operating assets or to reimburse our partner for its share of any payments made by them under certain guarantees. Guarantees (excluding environmental) customarily terminate either upon the satisfaction of specified circumstances or repayment of the underlying debt. Amounts that we may be required to pay in future periods in relation to guarantees associated with budget overruns or operating losses are not estimable. As of June 30, 2022, we had additional capital commitments and certain recorded guarantees to our unconsolidated real estate ventures and other investments totaling $66.4 million. As of June 30, 2022, we had no principal payment guarantees related to our unconsolidated real estate ventures. Additionally, with respect to borrowings of our consolidated entities, we have agreed, and may in the future agree, to (i) guarantee portions of the principal, interest and other amounts, (ii) provide customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) or (iii) provide guarantees to lenders, tenants and other third parties for the completion of development projects. In connection with the Formation Transaction, we have an agreement with Vornado regarding tax matters (the "Tax Matters Agreement") that provides special rules that allocate tax liabilities if the distribution of JBG SMITH shares by Vornado, together with certain related transactions, is determined not to be tax-free. Under the Tax Matters Agreement, we may be required to indemnify Vornado against any taxes and related amounts and costs resulting from a violation by us of the Tax Matters Agreement. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2022 | |
Transactions with Related Parties | |
Transactions with Related Parties | 18. Our third-party asset management and real estate services business provides fee-based real estate services to the WHI, the JBG Legacy Funds and other third parties, including Amazon. In connection with the contribution to us of certain assets formerly owned by the JBG Legacy Funds as part of the Formation Transaction, the general partner and managing member interests in the JBG Legacy Funds that were held by certain former JBG executives (and who became members of our management team and/or Board of Trustees) were not transferred to us and remain under the control of these individuals. In addition, certain members of our senior management team and Board of Trustees have ownership interests in the JBG Legacy Funds, and own carried interests in each fund and in certain of our real estate ventures that entitle them to receive cash payments if the fund or real estate venture achieves certain return thresholds. We launched the WHI with the Federal City Council in June 2018 as a scalable market-driven model that uses private capital to help address the scarcity of housing for middle income families. We are the manager for the WHI Impact Pool, which is the social impact debt financing vehicle of the WHI. As of June 30, 2022, the WHI Impact Pool had completed closings of capital commitments totaling $114.4 million, which included a commitment from us of $11.2 million. As of June 30, 2022, our remaining unfunded commitment was $6.2 million. The third-party real estate services revenue, including expense reimbursements, from the JBG Legacy Funds and the WHI Impact Pool was $4.8 million and $10.3 million for the three and six months ended June 30, 2022, and $5.8 million and $11.6 million for the three and six months ended June 30, 2021. As of June 30, 2022 and December 31, 2021, we had receivables from the JBG Legacy Funds and the WHI Impact Pool totaling $3.3 million and $3.2 million for such services. We rented our former corporate offices from an unconsolidated real estate venture and made payments totaling $321,000 and $708,000 for the three and six months ended June 30, 2022, and $495,000 and $766,000 for the three and six months ended June 30, 2021. We have agreements with Building Maintenance Services ("BMS"), an entity in which we have a minor preferred interest, to supervise cleaning, engineering and security services at our properties. We paid BMS $2.0 million and $5.1 million during the three and six months ended June 30, 2022, and $4.1 million and $8.5 million for the three and six months ended June 30, 2021, which is included in "Property operating expenses" in our statements of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not contain certain information required in annual financial statements and notes as required under GAAP. In our opinion, all adjustments considered necessary for a fair presentation have been included, and all such adjustments are of a normal recurring nature. All intercompany transactions and balances have been eliminated. The results of operations for the three and six months ended June 30, 2022 and 2021 are not necessarily indicative of the results that may be expected for a full year. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 22, 2022 ("Annual Report"). The accompanying condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries and consolidated variable interest entities ("VIEs"), including JBG SMITH LP. See Note 5 for additional information on our VIEs. The portions of the equity and net income (loss) of consolidated entities that are not attributable to us are presented separately as amounts attributable to noncontrolling interests in our condensed consolidated financial statements. References to our financial statements refer to our unaudited condensed consolidated financial statements as of June 30, 2022 and December 31, 2021, and for the three and six months ended June 30, 2022 and 2021. References to our balance sheets refer to our condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021. References to our statements of operations refer to our condensed consolidated statements of operations for the three and six months ended June 30, 2022 and 2021. References to our statements of comprehensive income (loss) refer to our condensed consolidated statements of comprehensive income (loss) for the three and six months ended June 30, 2022 and 2021. |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the "Code"). Under those sections, a REIT which distributes at least 90% of its REIT taxable income as dividends to its shareholders each year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders. We currently adhere and intend to continue to adhere to these requirements and to maintain our REIT status in future periods. We also participate in the activities conducted by our subsidiary entities that have elected to be treated as taxable REIT subsidiaries under the Code. As such, we are subject to federal, state and local taxes on the income from those activities. |
Reclassification | Reclassification Intangible assets totaling $202.0 million were reclassified from "Other assets, net" to "Intangible assets, net" in our balance sheet as of December 31, 2021 to present intangible assets separately from other assets, which is consistent with our current year presentation. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant of these estimates include: (i) the underlying cash flows and holding periods used in assessing impairment of our real estate assets; (ii) the determination of useful lives for tangible and intangible assets; and (iii) the assessment of the collectability of receivables, including deferred rent receivables. Longer estimated holding periods for real estate assets directly reduce the likelihood of recording an impairment loss. If there is a change in the strategy for an asset or if market conditions dictate an earlier sale date, an impairment loss may be recognized, and such loss could be material. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update 2020-04, Reference Rate Reform ("Topic 848"). Topic 848 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in Topic 848 is optional and may be elected over the period of March 12, 2020 through December 31, 2022 as reference rate reform activities occur. During the six months ended June 30, 2022, we elected to apply the hedge accounting expedient that allows us to continue to amortize previously deferred gains and losses in accumulated other comprehensive income (loss) related to terminated hedges into earnings in accordance with the underlying hedged forecasted transactions. We have elected to apply the hedge accounting expedients related to (i) the assertion that our hedged forecasted transactions remain probable and (ii) the assessments of effectiveness for future London Interbank Offered Rate ("LIBOR") indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the past presentation of our derivatives. We will continue to evaluate the impact of the guidance and may apply other elections, as applicable. |
Dispositions and Assets Held _2
Dispositions and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Dispositions And Assets Held for Sale | |
Summary of disposition activity | Gain (Loss) Total Gross Cash on the Sale Square Sales Proceeds of Real Date Disposed Assets Segment Location Feet Price from Sale Estate (In thousands) March 28, 2022 Development Parcel Other Arlington, Virginia — $ 3,250 $ 3,149 $ (136) April 1, 2022 Universal Buildings (1) Commercial Washington, D.C. 659 228,000 194,737 41,245 April 13, 2022 7200 Wisconsin Avenue, 1730 M Street, RTC-West and Courthouse Plaza 1 and 2 (2) Commercial/ Bethesda, Maryland, Washington, D.C., Reston, Virginia, Arlington, Virginia 2,944 580,000 527,694 (3,980) May 25, 2022 Pen Place (3) Other Arlington, Virginia 2,082 198,000 197,528 121,502 5,685 $ 1,009,250 $ 923,108 $ 158,631 (1) Cash proceeds from sale excludes a lease termination fee of $24.3 million received during the first quarter of 2022. (2) Assets were sold to an unconsolidated real estate venture. See Note 4 for additional information. "RTC-West" refers to RTC-West, RTC-West Trophy Office and RTC-West Land. Total square feet include 1.4 million square feet of estimated potential development density. In April 2022, $164.8 million of mortgages payable related to 1730 M Street and RTC-West were repaid. (3) Total square feet represent estimated or approved potential development density. |
Summary of assets held for sale | Total Assets Held Assets Segment Location Square Feet for Sale (In thousands) Pen Place (1) Other Arlington, Virginia 2,082 $ 73,876 (1) Sold to Amazon in May 2022. Total square feet represent estimated or approved potential development density. |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate Ventures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments in Unconsolidated Real Estate Ventures | |
Summary of Unconsolidated Investments | The following is a summary of our investments in unconsolidated real estate ventures: Effective Ownership Real Estate Venture Partners Interest (1) June 30, 2022 December 31, 2021 (In thousands) Prudential Global Investment Management 50.0% $ 205,965 $ 208,421 Landmark Partners ("Landmark") 18.0% - 49.0% 25,437 28,298 CBREI Venture (2) 5.0% - 64.0% 56,170 57,812 Canadian Pension Plan Investment Board ("CPPIB") 55.0% 1,358 48,498 J.P. Morgan Global Alternatives ("J.P. Morgan") (3) 50.0% 60,203 52,769 Berkshire Group 50.0% 50,941 52,770 Brandywine Realty Trust 30.0% 13,694 13,693 Other 581 624 Total investments in unconsolidated real estate ventures (4) $ 414,349 $ 462,885 (1) Reflects our effective ownership interests in the underlying real estate as of June 30, 2022. We have multiple investments with certain venture partners with varying ownership interests in the underlying real estate. (2) On August 1, 2022, we acquired the remaining 36.0% ownership interest in Atlantic Plumbing, a multifamily asset owned by the venture, for $19.7 million. (3) J.P. Morgan is the advisor for an institutional investor. (4) As of June 30, 2022 and December 31, 2021, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $ 12.6 million and $ 18.6 million, resulting principally from capitalized interest and our zero investment balance in the real estate venture with CPPIB that owns 1101 17th Street . The following is a summary of the debt of our unconsolidated real estate ventures: Weighted Average Effective Interest Rate (1) June 30, 2022 December 31, 2021 (In thousands) Variable rate (2) 4.60% $ 499,076 $ 785,369 Fixed rate (3) 4.16% 275,016 309,813 Mortgages payable (4) 774,092 1,095,182 Unamortized deferred financing costs (597) (5,239) Mortgages payable, net (4) (5) $ 773,495 $ 1,089,943 (1) Weighted average effective interest rate as of June 30, 2022. (2) Includes variable rate mortgages payable with interest rate cap agreements. (3) Includes variable rate mortgages payable with interest rates fixed by interest rate swap agreements. (4) Excludes mortgages payable related to the unconsolidated real estate venture with Fortress. (5) See Note 17 for additional information on guarantees of the debt of certain of our unconsolidated real estate ventures. June 30, 2022 December 31, 2021 (In thousands) Combined balance sheet information: (1) Real estate, net $ 1,684,823 $ 2,116,290 Other assets, net 217,108 264,397 Total assets $ 1,901,931 $ 2,380,687 Mortgages payable, net $ 773,495 $ 1,089,943 Other liabilities, net 81,925 118,752 Total liabilities 855,420 1,208,695 Total equity 1,046,511 1,171,992 Total liabilities and equity $ 1,901,931 $ 2,380,687 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Combined income statement information: (1) Total revenue $ 41,379 $ 47,864 $ 84,253 $ 96,081 Operating income (2) 36,108 41,493 84,534 43,207 Net income (2) 25,127 33,356 64,410 26,830 (1) Excludes amounts related to the unconsolidated real estate venture with Fortress. (2) Includes the gain on the sale of various assets totaling $32.3 million and $77.4 million during the three and six months ended June 30, 2022 and $38.1 million during the three and six months ended June 30, 2021. |
Summary of unconsolidated investments disposition activity | Mortgages Proportionate Real Estate Gross Payable Share of Venture Ownership Sales Repaid by Aggregate Date Disposed Partner Assets Percentage Price Venture Gain (1) (In thousands) January 27, 2022 Landmark The Alaire, The Terano and 12511 Parklawn Drive 1.8% - 18.0% $ 137,500 $ 79,829 $ 5,243 May 10, 2022 Landmark Galvan 1.8% 152,500 89,500 407 June 1, 2022 CPPIB 1900 N Street 55.0% 265,000 151,709 529 $ 6,179 (1) Included in "Income (loss) from unconsolidated real estate ventures, net" in our statements of operations. |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets, Net. | |
Summary of other assets, net | June 30, 2022 December 31, 2021 (In thousands) Prepaid expenses $ 14,651 $ 17,104 Derivative agreements, at fair value 26,334 951 Deferred financing costs, net 9,907 11,436 Deposits 1,870 1,938 Operating lease right-of-use assets 1,521 1,660 Finance lease right-of-use assets (1) — 180,956 Other (2) (3) 28,525 26,115 Total other assets, net $ 82,808 $ 240,160 (1) Represents assets related to finance ground leases at 1730 M Street and Courthouse Plaza 1 and 2, which were sold to an unconsolidated real estate venture in April 2022. (2) As of June 30, 2022 and December 31, 2021, included $14.8 million and $9.8 million of investments in funds, which invest in real estate focused technology companies, that are recorded at their fair value based on their reported net asset value. During the three and six months ended June 30, 2022, we recorded unrealized gains totaling $1.0 million and $1.2 million related to these investments, which are included in "Interest and other income (loss), net" in our statements of operations . (3) As of June 30, 2022 and December 31, 2021, included $8.6 million and $11.3 million of equity investments that are carried at cost. During the three and six months ended June 30, 2022, we recorded a realized gain of $178,000 and $14.1 million related to these investments, which is included in "Interest and other income (loss), net" in our statements of operations . |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Mortgages Payable | |
Debt Instrument [Line Items] | |
Summary of debt | Weighted Average Effective Interest Rate (1) June 30, 2022 December 31, 2021 (In thousands) Variable rate (2) 3.68% $ 857,446 $ 867,246 Fixed rate (3) 4.45% 763,681 921,013 Mortgages payable 1,621,127 1,788,259 Unamortized deferred financing costs and premium / discount, net (4) (8,958) (10,560) Mortgages payable, net $ 1,612,169 $ 1,777,699 (1) Weighted average effective interest rate as of June 30, 2022. (2) Includes variable rate mortgages payable with interest rate cap agreements. (3) Includes variable rate mortgages payable with interest rates fixed by interest rate swap agreements. (4) As of June 30, 2022 and December 31, 2021, excludes $5.7 million and $6.4 million of net deferred financing costs related to unfunded mortgage loans that were included in "Other assets, net." |
Line of credit | |
Debt Instrument [Line Items] | |
Summary of debt | Effective Interest Rate (1) June 30, 2022 December 31, 2021 (In thousands) Revolving credit facility (2) (3) (4) 2.84% $ — $ 300,000 Tranche A-1 Term Loan (5) 2.61% $ 200,000 $ 200,000 Tranche A-2 Term Loan (5) 2.49% 200,000 200,000 Unsecured term loans 400,000 400,000 Unamortized deferred financing costs, net (1,500) (1,336) Unsecured term loans, net $ 398,500 $ 398,664 (1) Effective interest rate as of June 30, 2022. The interest rate for our revolving credit facility excludes a 0.15% facility fee. (2) As of June 30, 2022 and December 31, 2021, letters of credit with an aggregate face amount of $467,000 and $911,000 were outstanding under our revolving credit facility. (3) As of June 30, 2022 and December 31, 2021, excludes $4.2 million and $5.0 million of net deferred financing costs related to our revolving credit facility that were included in "Other assets, net." (4) In July 2022, we borrowed $100.0 million under our revolving credit facility. (5) As of June 30, 2022 and December 31, 2021, the outstanding balance was fixed by interest rate swap agreements. As of June 30, 2022, the interest rate swaps mature in July 2024, fix SOFR at a weighted average interest rate of 1.46% for the Tranche A-1 Term Loan, and fix LIBOR at a weighted average interest rate of 1.34% for the Tranche A-2 Term Loan . |
Other Liabilities, Net (Tables)
Other Liabilities, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Liabilities, Net. | |
Composition of other liabilities net | June 30, 2022 December 31, 2021 (In thousands) Lease intangible liabilities, net 7,008 8,272 Lease assumption liabilities 3,970 5,399 Lease incentive liabilities 5,758 21,163 Liabilities related to operating lease right-of-use assets 5,868 6,910 Liabilities related to finance lease right-of-use assets (1) — 162,510 Prepaid rent 14,752 19,852 Security deposits 13,973 18,188 Environmental liabilities 19,418 18,168 Deferred tax liability, net 6,888 5,340 Dividends payable — 32,603 Derivative agreements, at fair value — 18,361 Deferred purchase price related to the acquisition of a future development parcel 19,793 19,691 Other 14,424 6,108 Total other liabilities, net $ 111,852 $ 342,565 (1) Represents liabilities related to finance ground leases at 1730 M Street and Courthouse Plaza 1 and 2, which were sold to an unconsolidated real estate venture in April 2022. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Redeemable Noncontrolling Interests | |
Summary of redeemable noncontrolling interests | Three Months Ended June 30, 2022 2021 Consolidated Consolidated JBG Real Estate JBG Real Estate SMITH LP Venture Total SMITH LP Venture Total (In thousands) Balance, beginning of period $ 536,725 $ 9,324 $ 546,049 $ 545,051 $ 7,876 $ 552,927 OP Unit redemptions (1,762) — (1,762) (17,761) — (17,761) LTIP Units issued in lieu of cash bonuses (1) 987 — 987 797 — 797 Net income (loss) 18,240 8 18,248 (319) (26) (345) Other comprehensive income 1,311 — 1,311 235 — 235 Distributions (4,110) (79) (4,189) (3,927) — (3,927) Share-based compensation expense 12,369 — 12,369 12,807 — 12,807 Adjustment to redemption value (50,334) (1,287) (51,621) (712) 618 (94) Balance, end of period $ 513,426 $ 7,966 $ 521,392 $ 536,171 $ 8,468 $ 544,639 Six Months Ended June 30, 2022 2021 Consolidated Consolidated JBG Real Estate JBG Real Estate SMITH LP Venture Total SMITH LP Venture Total (In thousands) Balance, beginning of period $ 513,268 $ 9,457 $ 522,725 $ 522,882 $ 7,866 $ 530,748 OP Unit redemptions (7,776) — (7,776) (21,680) — (21,680) LTIP Units issued in lieu of cash bonuses (1) 6,584 — 6,584 5,614 — 5,614 Net income (loss) 18,237 21 18,258 (2,516) (59) (2,575) Other comprehensive income 4,277 — 4,277 1,208 — 1,208 Distributions (4,110) (148) (4,258) (5,289) — (5,289) Share-based compensation expense 24,896 — 24,896 25,371 — 25,371 Adjustment to redemption value (41,950) (1,364) (43,314) 10,581 661 11,242 Balance, end of period $ 513,426 $ 7,966 $ 521,392 $ 536,171 $ 8,468 $ 544,639 (1) See Note 11 for additional information. |
Property Rental Revenue (Tables
Property Rental Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property Rental Revenue | |
Property Rental Revenue | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Fixed $ 105,498 $ 112,972 $ 226,135 $ 225,221 Variable 11,538 9,847 22,499 19,839 Property rental revenue $ 117,036 $ 122,819 $ 248,634 $ 245,060 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of share-based compensation expense | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Time-Based LTIP Units $ 6,202 $ 4,115 $ 12,328 $ 8,495 AO LTIP Units and Performance-Based LTIP Units 3,590 3,160 7,747 6,399 LTIP Units 1,000 1,091 1,000 1,091 Other equity awards (1) 1,399 1,459 2,826 2,922 Share-based compensation expense - other 12,191 9,825 23,901 18,907 Formation Awards 769 718 1,143 1,447 OP Units and LTIP Units (2) 248 2,265 831 5,049 Special Time-Based LTIP Units and Special Performance-Based LTIP Units (3) 560 1,458 1,847 2,890 Share-based compensation related to Formation Transaction and special equity awards (4) 1,577 4,441 3,821 9,386 Total share-based compensation expense 13,768 14,266 27,722 28,293 Less: amount capitalized (1,297) (610) (2,347) (1,401) Share-based compensation expense $ 12,471 $ 13,656 $ 25,375 $ 26,892 (1) Primarily comprised of compensation expense for: (i) fully vested LTIP Units issued to certain employees in lieu of all or a portion of any cash bonuses earned, (ii) restricted share units ("RSUs") and (iii) shares issued under our ESPP. (2) Represents share-based compensation expense for LTIP Units and OP Units issued in the Formation Transaction, which fully vested in July 2022. (3) Represents equity awards issued related to our successful pursuit of Amazon's additional headquarters in National Landing. (4) Included in "General and administrative expense: Share-based compensation related to Formation Transaction and special equity awards" in the accompanying statements of operations . |
ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of of the significant assumptions of awards | Expected volatility 23.0% Dividend yield 1.6% Risk-free interest rate 0.2% Expected life 6 months |
AO LTIP Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of of the significant assumptions of awards | Expected volatility 27.0% Dividend yield 2.7% Risk-free interest rate 1.6% |
LTIP and Time-Based LTIP Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of of the significant assumptions of awards | Expected volatility 30.0% to 41.0% Risk-free interest rate 0.4% to 2.9% Post-grant restriction periods 2 to 6 years |
Transaction and Other Costs (Ta
Transaction and Other Costs (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Transaction and Other Costs. | |
Schedule of transaction and other costs | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Demolition costs $ 406 $ 439 $ 428 $ 1,447 Integration and severance costs 727 222 872 462 Completed, potential and pursued transaction expenses (1) 854 1,609 1,586 4,051 Transaction and other costs $ 1,987 $ 2,270 $ 2,886 $ 5,960 (1) Primarily consists of legal and dead deal costs related to pursued transactions. |
Interest Expense (Tables)
Interest Expense (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Interest Expense | |
Schedule of interest expense | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Interest expense before capitalized interest $ 18,857 $ 16,800 $ 37,299 $ 33,466 Amortization of deferred financing costs 1,121 1,045 2,251 2,092 Interest expense related to finance lease right-of-use assets 247 428 2,091 854 Net unrealized (gain) loss on derivative financial instruments designated as ineffective hedges (2,027) 46 (5,394) (87) Capitalized interest (2,157) (1,546) (3,928) (3,256) Interest expense $ 16,041 $ 16,773 $ 32,319 $ 33,069 |
Shareholders' Equity and Earn_2
Shareholders' Equity and Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Shareholders' Equity and Earnings (Loss) Per Common Share | |
Schedule of basic and diluted earnings per common share to net income (loss) | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands, except per share amounts) Net income (loss) $ 141,494 $ (3,318) $ 141,417 $ (27,387) Net (income) loss attributable to redeemable noncontrolling interests (18,248) 345 (18,258) 2,575 Net loss attributable to noncontrolling interests 29 — 84 1,108 Net income (loss) attributable to common shareholders 123,275 (2,973) 123,243 (23,704) Distributions to participating securities (12) (734) (12) (734) Net income (loss) available to common shareholders - basic and diluted $ 123,263 $ (3,707) $ 123,231 $ (24,438) Weighted average number of common shares outstanding - basic and diluted 121,316 131,480 123,984 131,510 Earnings (loss) per common share - basic and diluted $ 1.02 $ (0.03) $ 0.99 $ (0.19) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Summary of assets and liabilities measured at fair value on a recurring basis | Fair Value Measurements Total Level 1 Level 2 Level 3 (In thousands) June 30, 2022 Derivative financial instruments designated as effective hedges: Classified as assets in "Other assets, net" $ 20,383 — $ 20,383 — Derivative financial instruments designated as ineffective hedges: Classified as assets in "Other assets, net" 5,951 — 5,951 — December 31, 2021 Derivative financial instruments designated as effective hedges: Classified as assets in "Other assets, net" $ 393 — $ 393 — Classified as liabilities in "Other liabilities, net" 18,361 — 18,361 — Derivative financial instruments designated as ineffective hedges: Classified as assets in "Other assets, net" 558 — 558 — |
Schedule of financial instruments and liabilities were reflected in our balance sheets | June 30, 2022 December 31, 2021 Carrying Carrying Amount (1) Fair Value Amount (1) Fair Value (In thousands) Financial liabilities: Mortgages payable $ 1,621,127 $ 1,606,673 $ 1,788,259 $ 1,814,780 Revolving credit facility — — 300,000 300,363 Unsecured term loans 400,000 400,263 400,000 400,519 (1) The carrying amount consists of principal only. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Information | |
Schedule of components of revenue from third-party real estate services business | Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Property management fees $ 4,976 $ 4,776 $ 9,784 $ 9,718 Asset management fees 1,513 2,229 3,284 4,457 Development fees (1) 2,148 4,392 5,687 18,642 Leasing fees 1,038 1,424 2,877 2,284 Construction management fees 37 234 187 406 Other service revenue 1,499 1,790 2,315 3,488 Third-party real estate services revenue, excluding reimbursements 11,211 14,845 24,134 38,995 Reimbursement revenue (2) 10,946 11,900 21,993 25,857 Third-party real estate services revenue, including reimbursements 22,157 26,745 46,127 64,852 Third-party real estate services expenses 24,143 25,557 51,192 54,493 Third-party real estate services revenue less expenses $ (1,986) $ 1,188 $ (5,065) $ 10,359 (1) As of June 30, 2022, we had estimated unrecognized development fee revenue totaling $43.2 million, of which $7.1 million, $12.3 million and $6.6 million is expected to be recognized during the remainder of 2022 , 2023 and 2024 , and $17.2 million is expected to be recognized thereafter through 2027 as unsatisfied performance obligations are completed. (2) Represents reimbursement of expenses incurred by us on behalf of third parties, including allocated payroll costs and amounts paid to third-party contractors for construction management projects. |
Segment information | The following is the reconciliation of net income (loss) attributable to common shareholders to consolidated NOI: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Net income (loss) attributable to common shareholders $ 123,275 $ (2,973) $ 123,243 $ (23,704) Add: Depreciation and amortization expense 49,479 56,678 107,541 121,404 General and administrative expense: Corporate and other 14,782 13,895 30,597 26,370 Third-party real estate services 24,143 25,557 51,192 54,493 Share-based compensation related to Formation Transaction and special equity awards 1,577 4,441 3,821 9,386 Transaction and other costs 1,987 2,270 2,886 5,960 Interest expense 16,041 16,773 32,319 33,069 Loss on the extinguishment of debt 1,038 — 1,629 — Income tax expense (benefit) 2,905 (5) 2,434 4,310 Net income (loss) attributable to redeemable noncontrolling interests 18,248 (345) 18,258 (2,575) Net loss attributable to noncontrolling interests (29) — (84) (1,108) Less: Third-party real estate services, including reimbursements revenue 22,157 26,745 46,127 64,852 Other revenue 1,798 1,904 3,994 4,090 Income (loss) from unconsolidated real estate ventures, net (2,107) 3,953 1,038 3,010 Interest and other income (loss), net 1,672 (38) 15,918 (29) Gain on the sale of real estate, net 158,767 11,290 158,631 11,290 Consolidated NOI $ 71,159 $ 72,437 $ 148,128 $ 144,392 Three Months Ended June 30, 2022 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 71,903 $ 42,939 $ 2,194 $ 117,036 Parking revenue 4,187 250 77 4,514 Total property revenue 76,090 43,189 2,271 121,550 Property expense: Property operating 19,624 14,870 951 35,445 Real estate taxes 9,018 5,054 874 14,946 Total property expense 28,642 19,924 1,825 50,391 Consolidated NOI $ 47,448 $ 23,265 $ 446 $ 71,159 Three Months Ended June 30, 2021 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 89,189 $ 32,718 $ 912 $ 122,819 Parking revenue 2,959 110 107 3,176 Total property revenue 92,148 32,828 1,019 125,995 Property expense: Property operating 25,097 12,042 (2,139) 35,000 Real estate taxes 12,148 5,065 1,345 18,558 Total property expense 37,245 17,107 (794) 53,558 Consolidated NOI $ 54,903 $ 15,721 $ 1,813 $ 72,437 Six Months Ended June 30, 2022 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 159,524 $ 85,047 $ 4,063 $ 248,634 Parking revenue 8,199 384 132 8,715 Total property revenue 167,723 85,431 4,195 257,349 Property expense: Property operating 45,826 28,625 1,638 76,089 Real estate taxes 20,795 10,275 2,062 33,132 Total property expense 66,621 38,900 3,700 109,221 Consolidated NOI $ 101,102 $ 46,531 $ 495 $ 148,128 Six Months Ended June 30, 2021 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 176,370 $ 65,304 $ 3,386 $ 245,060 Parking revenue 5,649 175 107 5,931 Total property revenue 182,019 65,479 3,493 250,991 Property expense: Property operating 49,061 24,237 (3,567) 69,731 Real estate taxes 23,920 10,310 2,638 36,868 Total property expense 72,981 34,547 (929) 106,599 Consolidated NOI $ 109,038 $ 30,932 $ 4,422 $ 144,392 Commercial Multifamily Other Total (In thousands) June 30, 2022 Real estate, at cost $ 2,722,907 $ 2,481,213 $ 402,467 $ 5,606,587 Investments in unconsolidated real estate ventures 233,519 96,030 84,800 414,349 Total assets 3,016,911 1,856,493 706,498 5,579,902 December 31, 2021 Real estate, at cost $ 3,422,278 $ 2,367,712 $ 446,486 $ 6,236,476 Investments in unconsolidated real estate ventures 281,515 103,389 77,981 462,885 Total assets 3,591,839 1,797,807 996,560 6,386,206 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Narrative (Details) ft² in Millions, $ in Billions | Jun. 30, 2022 USD ($) ft² property building item |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 56 |
National Landing, Northern Virginia | |
Real Estate Properties [Line Items] | |
Percentage of operating portfolio by the entity | 66.67% |
Near-Term Development | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 8 |
Area of real estate property | ft² | 3.7 |
Future Development | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 16 |
Area of real estate property | ft² | 8.8 |
Commercial Real Estate | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 35 |
Area of real estate property | ft² | 10.5 |
One Commercial Building | |
Real Estate Properties [Line Items] | |
Number of Units in Real Estate Property | building | 1 |
Subordinated interest | 10% |
Four Commercial Buildings | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | building | 4 |
Subordinated interest | 33.50% |
Multifamily | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 19 |
Number of Units in Real Estate Property | item | 7,359 |
Multifamily | Asset under Construction | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 2 |
Number of Units in Real Estate Property | item | 1,583 |
Wholly Owned Properties | |
Real Estate Properties [Line Items] | |
Number of properties for ground lease | 2 |
Wholly Owned Properties | Near-Term Development | |
Real Estate Properties [Line Items] | |
Area of real estate property | ft² | 3.5 |
Wholly Owned Properties | Future Development | |
Real Estate Properties [Line Items] | |
Area of real estate property | ft² | 6.3 |
Wholly Owned Properties | Commercial Real Estate | |
Real Estate Properties [Line Items] | |
Area of real estate property | ft² | 8.9 |
Wholly Owned Properties | Multifamily | |
Real Estate Properties [Line Items] | |
Number of Units in Real Estate Property | item | 6,496 |
Wholly Owned Properties | Multifamily | Asset under Construction | |
Real Estate Properties [Line Items] | |
Number of Units in Real Estate Property | item | 1,583 |
Virginia Tech | |
Real Estate Properties [Line Items] | |
Under-construction property value developed by Virginia Tech | $ | $ 1 |
JBG Smith, LP | |
Real Estate Properties [Line Items] | |
Ownership interest by parent | 88.40% |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Reclassifications (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Organization and Basis of Presentation | |
Reclassification from other assets, net to intangible assets, net | $ 202 |
Dispositions and Assets Held _3
Dispositions and Assets Held for Sale - Summary of the Disposition Activity (Details) - Disposal Group, Disposed of by Sale ft² in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Apr. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) ft² | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of Real Estate Property | ft² | 5,685 | ||
Gross Sales Price | $ 1,009,250 | ||
Cash Proceeds from Sale | 923,108 | ||
Gain (Loss) on the Sale of Real Estate | 158,631 | ||
Development Parcel Assets [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gross Sales Price | 3,250 | ||
Cash Proceeds from Sale | 3,149 | ||
Gain (Loss) on the Sale of Real Estate | $ (136) | ||
Universal Buildings | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of Real Estate Property | ft² | 659 | ||
Gross Sales Price | $ 228,000 | ||
Cash Proceeds from Sale | 194,737 | ||
Gain (Loss) on the Sale of Real Estate | $ 41,245 | ||
Lease termination fee | $ 24,300 | ||
7200 Wisconsin Avenue, 1730 M Street, RTC-West and Courthouse Plaza 1 and 2 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of Real Estate Property | ft² | 2,944 | ||
Gross Sales Price | $ 580,000 | ||
Cash Proceeds from Sale | 527,694 | ||
Gain (Loss) on the Sale of Real Estate | $ (3,980) | ||
Area Of Real Estate Property Estimated For Potential Development Density | ft² | 1,400 | ||
Pen Place - Land Parcel | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of Real Estate Property | ft² | 2,082 | ||
Gross Sales Price | $ 198,000 | ||
Cash Proceeds from Sale | 197,528 | ||
Gain (Loss) on the Sale of Real Estate | $ 121,502 | ||
1730 M Street and RTC-West | Mortgage Loan | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Repayments of Long-term Debt | $ 164,800 |
Dispositions and Assets Held _4
Dispositions and Assets Held for Sale - Summary of assets held for sale (Details) ft² in Thousands, $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) ft² |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 0 | $ 73,876 |
Disposal Group, Held-for-sale | Pen Place - Land Parcel | Arlington, Virginia | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Area of Real Estate Property | ft² | 2,082 | |
Assets held for sale | $ 73,876 |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate Ventures - Summary of Composition of Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Aug. 01, 2022 | Apr. 13, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total investments in unconsolidated real estate ventures | $ 414,349 | $ 462,885 | |||
Difference between the investments in unconsolidated real estate ventures and the net book value of the underlying assets | 12,600 | 18,600 | |||
Payments for investments in unconsolidated real estate ventures | $ 81,185 | $ 21,990 | |||
Prudential Global Investment Management (PGIM) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 50% | ||||
Total investments in unconsolidated real estate ventures | $ 205,965 | 208,421 | |||
Landmark | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total investments in unconsolidated real estate ventures | $ 25,437 | 28,298 | |||
Landmark | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 18% | ||||
Landmark | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 49% | ||||
CBREI Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total investments in unconsolidated real estate ventures | $ 56,170 | 57,812 | |||
CBREI Venture | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 5% | ||||
CBREI Venture | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 64% | ||||
Canadian Pension Plan Investment Board (CPPIB) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 55% | ||||
Total investments in unconsolidated real estate ventures | $ 1,358 | 48,498 | |||
J.P. Morgan Global Alternatives ("J.P. Morgan") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 50% | ||||
Total investments in unconsolidated real estate ventures | $ 60,203 | 52,769 | |||
Berkshire Group | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 50% | ||||
Total investments in unconsolidated real estate ventures | $ 50,941 | 52,770 | |||
Brandywine | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 30% | ||||
Total investments in unconsolidated real estate ventures | $ 13,694 | 13,693 | |||
Other Investment | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total investments in unconsolidated real estate ventures | 581 | 624 | |||
Fortress Investment Group Real Estate Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership interest (as percent) | 33.50% | ||||
Total investments in unconsolidated real estate ventures | 0 | ||||
Payments for investments in unconsolidated real estate ventures | $ 66,100 | ||||
1101 17th Street [Member] | Canadian Pension Plan Investment Board (CPPIB) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total investments in unconsolidated real estate ventures | $ 0 | $ 0 | |||
Atlantic Plumbing | CBREI Venture | Subsequent Event [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage Acquired | 36% | ||||
Payments for investments in unconsolidated real estate ventures | $ 19,700 |
Investments in Unconsolidated_4
Investments in Unconsolidated Real Estate Ventures - Narratives (Details) $ in Thousands, ft² in Millions | 3 Months Ended | 6 Months Ended | ||||
Apr. 13, 2022 USD ($) ft² property | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Payments for investments in unconsolidated real estate ventures | $ 81,185 | $ 21,990 | ||||
Investments in unconsolidated real estate ventures | $ 414,349 | 414,349 | $ 462,885 | |||
Investments in Unconsolidated Real Estate Ventures [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Property Management Fee Revenue | 6,600 | $ 5,900 | 12,200 | $ 11,800 | ||
Fortress Investment Group Real Estate Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage Preferred Return, Subordinated to Ownership Interest | 15% | |||||
Gross Sales Price | $ 580,000 | |||||
Area of Land | ft² | 1.6 | |||||
Number Of Units Acquired | property | 4 | |||||
Ownership interest (as percent) | 33.50% | |||||
Payments for investments in unconsolidated real estate ventures | $ 66,100 | |||||
Investments in unconsolidated real estate ventures | $ 0 | $ 0 | ||||
Fortress Investment Group Real Estate Venture | Fortress Investment Group LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest (as percent) | 66.50% | |||||
Payments for investments in unconsolidated real estate ventures | $ 131,000 | |||||
Fortress Investment Group Real Estate Venture | Fortress Investment Group LLC | Mortgage Loan | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Principal amount | 458,000 | |||||
Borrowings under mortgages payable | $ 402,000 |
Investments in Unconsolidated_5
Investments in Unconsolidated Real Estate Ventures - Summary of Dispositions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income (loss) from unconsolidated real estate ventures, net | $ (2,107) | $ 3,953 | $ 1,038 | $ 3,010 |
Disposal Group, Disposed of by Sale | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (loss) from unconsolidated real estate ventures, net | $ 6,179 | |||
Landmark | Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 18% | 18% | ||
Landmark | Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 49% | 49% | ||
Landmark | The Alaire,The Terano and Parklawn Drive | Disposal Group, Disposed of by Sale | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gross Sales Price | $ 137,500 | $ 137,500 | ||
Repayment of mortgage | 79,829 | |||
Income (loss) from unconsolidated real estate ventures, net | $ 5,243 | |||
Landmark | The Alaire,The Terano and Parklawn Drive | Disposal Group, Disposed of by Sale | Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 1.80% | 1.80% | ||
Landmark | The Alaire,The Terano and Parklawn Drive | Disposal Group, Disposed of by Sale | Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 18% | 18% | ||
Landmark | Galvan | Disposal Group, Disposed of by Sale | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 1.80% | 1.80% | ||
Gross Sales Price | $ 152,500 | $ 152,500 | ||
Repayment of mortgage | 89,500 | |||
Income (loss) from unconsolidated real estate ventures, net | $ 407 | |||
CPPIB Venture Partner | 1900 N Street | Disposal Group, Disposed of by Sale | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 55% | 55% | ||
Gross Sales Price | $ 265,000 | $ 265,000 | ||
Repayment of mortgage | 151,709 | |||
Income (loss) from unconsolidated real estate ventures, net | $ 529 |
Investments in Unconsolidated_6
Investments in Unconsolidated Real Estate Ventures - Summary of Debt (Details) - Mortgages Payable - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments | ||
Variable interest rate | 3.68% | |
Variable rate amount | $ 857,446 | $ 867,246 |
Fixed interest rate | 4.45% | |
Fixed rate amount | $ 763,681 | 921,013 |
Debt, gross | 1,621,127 | 1,788,259 |
Unamortized deferred financing costs, net | (8,958) | (10,560) |
Long-term debt, net | $ 1,612,169 | 1,777,699 |
Investments in Unconsolidated Real Estate Ventures | ||
Schedule of Equity Method Investments | ||
Variable interest rate | 4.60% | |
Variable rate amount | $ 499,076 | 785,369 |
Fixed interest rate | 4.16% | |
Fixed rate amount | $ 275,016 | 309,813 |
Debt, gross | 774,092 | 1,095,182 |
Unamortized deferred financing costs, net | (597) | (5,239) |
Long-term debt, net | $ 773,495 | $ 1,089,943 |
Investments in Unconsolidated_7
Investments in Unconsolidated Real Estate Ventures - Financial Information - Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments | |||||
Gain on sale of real estate | $ 158,767 | $ 11,290 | $ 158,631 | $ 11,290 | |
Combined balance sheet information: | |||||
Real estate, net | 4,348,716 | 4,348,716 | $ 4,868,473 | ||
Other assets, net | 82,808 | 82,808 | 240,160 | ||
TOTAL ASSETS | 5,579,902 | 5,579,902 | 6,386,206 | ||
Mortgages payable, net | 1,612,169 | 1,612,169 | 1,777,699 | ||
Other liabilities, net | 111,852 | 111,852 | 342,565 | ||
Total liabilities | 2,235,305 | 2,235,305 | 2,925,064 | ||
Total equity | 2,791,565 | 2,791,565 | 2,915,910 | ||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | 5,579,902 | 5,579,902 | 6,386,206 | ||
Combined income statement information: | |||||
Revenues | 145,505 | 154,644 | 307,470 | 319,933 | |
Net income (loss) | 141,494 | (3,318) | 141,417 | (27,387) | |
Investments in Unconsolidated Real Estate Ventures [Member] | |||||
Schedule of Equity Method Investments | |||||
Gain on sale of real estate | 32,300 | 38,100 | 77,400 | 38,100 | |
Combined balance sheet information: | |||||
Real estate, net | 1,684,823 | 1,684,823 | 2,116,290 | ||
Other assets, net | 217,108 | 217,108 | 264,397 | ||
TOTAL ASSETS | 1,901,931 | 1,901,931 | 2,380,687 | ||
Mortgages payable, net | 773,495 | 773,495 | 1,089,943 | ||
Other liabilities, net | 81,925 | 81,925 | 118,752 | ||
Total liabilities | 855,420 | 855,420 | 1,208,695 | ||
Total equity | 1,046,511 | 1,046,511 | 1,171,992 | ||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | 1,901,931 | 1,901,931 | $ 2,380,687 | ||
Combined income statement information: | |||||
Revenues | 41,379 | 47,864 | 84,253 | 96,081 | |
Operating income | 36,108 | 41,493 | 84,534 | 43,207 | |
Net income (loss) | $ 25,127 | $ 33,356 | $ 64,410 | $ 26,830 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | Jun. 30, 2022 USD ($) item | Dec. 31, 2021 USD ($) item |
Variable Interest Entity [Line Items] | ||
Assets | $ 5,579,902 | $ 6,386,206 |
Liabilities | $ 2,235,305 | 2,925,064 |
JBG Smith, LP | ||
Variable Interest Entity [Line Items] | ||
Ownership interest by parent | 88.40% | |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 149,000 | $ 145,200 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of consolidated variable interest entities | item | 2 | 3 |
Assets | $ 135,400 | $ 269,700 |
Liabilities | $ 24,600 | $ 13,900 |
Other Assets, Net - Summary (De
Other Assets, Net - Summary (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Prepaid expenses | $ 14,651,000 | $ 14,651,000 | $ 17,104,000 |
Derivative agreements, at fair value | 26,334,000 | 26,334,000 | 951,000 |
Deferred financing costs, net | 9,907,000 | 9,907,000 | 11,436,000 |
Deposits | 1,870,000 | 1,870,000 | 1,938,000 |
Operating lease right-of-use assets | 1,521,000 | 1,521,000 | 1,660,000 |
Finance lease right-of-use assets | 180,956,000 | ||
Other | 28,525,000 | 28,525,000 | 26,115,000 |
Total other assets, net | 82,808,000 | 82,808,000 | 240,160,000 |
Interest and Other Income,(loss) Net | |||
Finite-Lived Intangible Assets [Line Items] | |||
Unrealized gains | 1,000,000 | 1,200,000 | |
Realized gains of equity investments | 178,000 | 14,100,000 | |
Other Assets Net | |||
Finite-Lived Intangible Assets [Line Items] | |||
Investment in funds | 14,800,000 | 14,800,000 | 9,800,000 |
Equity investments carried at cost | $ 8,600,000 | $ 8,600,000 | $ 11,300,000 |
Debt - Schedule of Mortgages Pa
Debt - Schedule of Mortgages Payable (Details) - Mortgages Payable - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Variable interest rate | 3.68% | |
Variable rate amount | $ 857,446 | $ 867,246 |
Fixed interest rate | 4.45% | |
Fixed rate amount | $ 763,681 | 921,013 |
Debt, gross | 1,621,127 | 1,788,259 |
Unamortized deferred financing costs and premium/ discount, net | (8,958) | (10,560) |
Long-term debt, net | 1,612,169 | 1,777,699 |
Other Assets Net | ||
Debt Instrument [Line Items] | ||
Net deferred finance costs | $ 5,700 | $ 6,400 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ in Millions | 1 Months Ended | ||
Jan. 31, 2022 item | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Mortgages Payable | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Net carrying value of real estate collateralizing the mortgages payable | $ 1,600 | $ 1,800 | |
Mortgages Payable | Interest rate swaps and caps | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Derivative notional amount | 1,200 | $ 1,300 | |
Line of credit | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | 1,400 | ||
Line of credit | Revolving Credit Facility | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | 1,000 | ||
Line of credit | Tranche A-1 Term Loan | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | 200 | ||
Debt Instrument, Number Of Term Extension Options | item | 2 | ||
Debt Instrument, Extension Period | 1 year | ||
Line of credit | Tranche A-2 Term Loan | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 200 | ||
Minimum | Secured Overnight Financing Rate [Member] | Line of credit | Tranche A-1 Term Loan | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Debt Instrument basis spread on variable rate | 1.15% | ||
Maximum | Secured Overnight Financing Rate [Member] | Line of credit | Tranche A-2 Term Loan | |||
Mortgages and Line of Credit Facility [Line Items] | |||
Debt Instrument basis spread on variable rate | 1.75% |
Debt - Summary of Amounts Outst
Debt - Summary of Amounts Outstanding under the Credit Facility (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2022 USD ($) DerivativeInstrument | Jan. 31, 2022 | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Deferred financing costs on credit facility | $ 9,907,000 | $ 11,436,000 | ||
Repayments of revolving credit facility | $ 300,000,000 | |||
Revolving Credit Facility | Subsequent Event | Secured Overnight Financing Rate [Member] | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument basis spread on variable rate | 1.15% | |||
Line of credit | Subsequent Event | Secured Overnight Financing Rate [Member] | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument basis spread on variable rate | 1.60% | |||
Line of credit | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Effective interest rate | 2.84% | |||
Long-term debt, net | 300,000,000 | |||
Letters of Credit Outstanding, Amount | $ 467,000 | $ 911,000 | ||
Percentage of line of credit facility | 0.15% | 0.15% | ||
Line of credit | Revolving Credit Facility | Other Assets Net | ||||
Line of Credit Facility [Line Items] | ||||
Deferred financing costs on credit facility | $ 4,200,000 | $ 5,000,000 | ||
Line of credit | Revolving Credit Facility | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Proceeds from Long-term Lines of Credit | $ 100,000,000 | |||
Line of credit | Tranche A-1 Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Effective interest rate | 2.61% | |||
Debt, gross | $ 200,000,000 | 200,000,000 | ||
Line of credit | Tranche A-1 Term Loan | Secured Overnight Financing Rate [Member] | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument basis spread on variable rate | 1.15% | |||
Line of credit | Tranche A-1 Term Loan | Interest rate swaps | Secured Overnight Financing Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Weighted average interest rate | 1.46% | |||
Line of credit | Tranche A-2 Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Effective interest rate | 2.49% | |||
Debt, gross | $ 200,000,000 | 200,000,000 | ||
Line of credit | Tranche A-2 Term Loan | Secured Overnight Financing Rate [Member] | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument basis spread on variable rate | 1.75% | |||
Line of credit | Tranche A-2 Term Loan | Interest rate swaps | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Weighted average interest rate | 1.34% | |||
Line of credit | Tranche A-2 Term Loan | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, increase net | $ 200,000,000 | |||
Delayed-draw feature | 1 year | |||
Line of credit | Tranche A-2 Term Loan | Subsequent Event | Secured Overnight Financing Rate [Member] | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument basis spread on variable rate | 1.25% | |||
Line of credit | Tranche A-2 Term Loan | Subsequent Event | Secured Overnight Financing Rate [Member] | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument basis spread on variable rate | 1.80% | |||
Line of credit | Tranche A-2 Term Loan | Subsequent Event | Forward Interest Rate Swap Effective July 2024 | ||||
Line of Credit Facility [Line Items] | ||||
Number of interest rate swaps | DerivativeInstrument | 2 | |||
Derivative notional amount | $ 200,000,000 | |||
Line of credit | Tranche A-2 Term Loan | Subsequent Event | Forward Interest Rate Swap Effective July 2024 | Secured Overnight Financing Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Weighted average interest rate | 2.25% | |||
Line of credit | Tranche A-1 and A-2 Loans | ||||
Line of Credit Facility [Line Items] | ||||
Debt, gross | $ 400,000,000 | 400,000,000 | ||
Unamortized deferred financing costs, net | (1,500,000) | (1,336,000) | ||
Long-term debt, net | $ 398,500,000 | $ 398,664,000 |
Other Liabilities, Net (Details
Other Liabilities, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other Liabilities, Net. | ||
Lease intangible liabilities, net | $ 7,008 | $ 8,272 |
Lease assumption liabilities | 3,970 | 5,399 |
Lease incentive liabilities | 5,758 | 21,163 |
Liabilities related to operating lease right-of-use assets | $ 5,868 | $ 6,910 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total other liabilities, net | Total other liabilities, net |
Liabilities related to finance lease right-of-use assets | $ 162,510 | |
Prepaid rent | $ 14,752 | 19,852 |
Security deposits | 13,973 | 18,188 |
Environmental liabilities | 19,418 | 18,168 |
Deferred tax liability, net | 6,888 | 5,340 |
Dividends payable | 32,603 | |
Derivative agreements, at fair value | 18,361 | |
Deferred purchase price related to the acquisition of a future development parcel | 19,793 | 19,691 |
Other | 14,424 | 6,108 |
Total other liabilities, net | $ 111,852 | $ 342,565 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interests - Narrative (Details) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Real Estate Venture | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest by parent, threshold for capital contributions to cease | 97% | |
OP Units [Member] | ||
Noncontrolling Interest [Line Items] | ||
Conversion of common limited partnership units to common shares | 280,451 | 648,752 |
JBG Smith, LP | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest by parent | 88.40% | |
JBG Smith, LP | OP Units [Member] | ||
Noncontrolling Interest [Line Items] | ||
Units outstanding | 15,300,000 | |
Ownership interest by parent | 11.60% | |
Consolidated Real Estate Venture | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest by parent | 96% |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interests - Summary of the Activity of Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Temporary Equity | ||||
Balance as of the beginning of the period | $ 546,049 | $ 552,927 | $ 522,725 | $ 530,748 |
OP Unit redemptions | (1,762) | (17,761) | (7,776) | (21,680) |
LTIP Units issued in lieu of cash bonuses (1) | 987 | 797 | 6,584 | 5,614 |
Net income (loss) | 18,248 | (345) | 18,258 | (2,575) |
Other comprehensive income | 1,311 | 235 | 4,277 | 1,208 |
Distributions | (4,189) | (3,927) | (4,258) | (5,289) |
Share-based compensation expense | 12,369 | 12,807 | 24,896 | 25,371 |
Adjustment to redemption value | (51,621) | (94) | (43,314) | 11,242 |
Balance as of the end of the period | 521,392 | 544,639 | 521,392 | 544,639 |
JBG Smith, LP | ||||
Temporary Equity | ||||
Balance as of the beginning of the period | 536,725 | 545,051 | 513,268 | 522,882 |
OP Unit redemptions | (1,762) | (17,761) | (7,776) | (21,680) |
LTIP Units issued in lieu of cash bonuses (1) | 987 | 797 | 6,584 | 5,614 |
Net income (loss) | 18,240 | (319) | 18,237 | (2,516) |
Other comprehensive income | 1,311 | 235 | 4,277 | 1,208 |
Distributions | (4,110) | (3,927) | (4,110) | (5,289) |
Share-based compensation expense | 12,369 | 12,807 | 24,896 | 25,371 |
Adjustment to redemption value | (50,334) | (712) | (41,950) | 10,581 |
Balance as of the end of the period | 513,426 | 536,171 | 513,426 | 536,171 |
Consolidated Real Estate Venture | ||||
Temporary Equity | ||||
Balance as of the beginning of the period | 9,324 | 7,876 | 9,457 | 7,866 |
Net income (loss) | 8 | (26) | 21 | (59) |
Distributions | (79) | (148) | ||
Adjustment to redemption value | (1,287) | 618 | (1,364) | 661 |
Balance as of the end of the period | $ 7,966 | $ 8,468 | $ 7,966 | $ 8,468 |
Property Rental Revenue (Detail
Property Rental Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property Rental Revenue | ||||
Fixed | $ 105,498 | $ 112,972 | $ 226,135 | $ 225,221 |
Variable | 11,538 | 9,847 | 22,499 | 19,839 |
Property rental revenue | $ 117,036 | $ 122,819 | $ 248,634 | $ 245,060 |
Share-Based Payments - LTIP Uni
Share-Based Payments - LTIP Units and Time-Based LTIP Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 30, 2022 | Feb. 28, 2022 | Jan. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Compensation expense recognition period (in years) | 3 years 3 months 18 days | |||||||
Share-based compensation expense | $ 12,471 | $ 13,656 | $ 25,375 | $ 26,892 | ||||
Time-Based Long-Term Incentive Partnership Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Vesting period | 4 years | |||||||
Compensation expense recognition period (in years) | 4 years | |||||||
Unvested Shares | ||||||||
Granted (in shares) | 660,785 | |||||||
Weighted Average Grant-Date Fair Value | ||||||||
Weighted average grant-date fair value (in dollars per share) | $ 27.41 | |||||||
LTIP Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Fully vested grants (in shares) | 252,206 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Share-based compensation expense | $ 5,600 | |||||||
Weighted Average Grant-Date Fair Value | ||||||||
Weighted average grant-date fair value (in dollars per share) | $ 22.19 | |||||||
LTIP and Time-Based LTIP Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Fair value of awards on grant date | $ 25,700 | |||||||
Trustees | LTIP Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Fully vested grants (in shares) | 95,084 | |||||||
Weighted Average Grant-Date Fair Value | ||||||||
Weighted average grant-date fair value (in dollars per share) | $ 20.90 | |||||||
Minimum | LTIP and Time-Based LTIP Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Expected volatility | 30% | |||||||
Risk-free interest rate | 0.40% | |||||||
Post-grant restriction periods | 2 years | |||||||
Maximum | LTIP and Time-Based LTIP Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||
Expected volatility | 41% | |||||||
Risk-free interest rate | 2.90% | |||||||
Post-grant restriction periods | 6 years |
Share-Based Payments - AO LTIP
Share-Based Payments - AO LTIP Units (Details) - AO LTIP Units - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 6 Months Ended |
Jan. 31, 2022 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period | 3 years | |
Award term | 10 years | |
Fair value of awards on grant date | $ 6.6 | |
Expected volatility | 27% | |
Dividend yield | 2.70% | |
Risk-free interest rate | 1.60% | |
Units earned (as a percent) | 25% | |
Threshold Price of Common Share At Conversion of Awards | $ 32.30 | |
Unvested Shares | ||
Granted (in shares) | 1.5 | |
Weighted Average Grant-Date Fair Value | ||
Weighted average grant-date fair value (in dollars per share) | $ 4.44 | |
Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting (as a percent) | 50% | |
Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting (as a percent) | 50% |
Share-Based Payments - Performa
Share-Based Payments - Performance-Based LTIP Units (Details) | 1 Months Ended |
Jan. 31, 2022 shares | |
Performance LTIP Units | |
Unvested Shares | |
Units forfeited | 469,624 |
Share-Based Payments - ESPP (De
Share-Based Payments - ESPP (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Proceeds from common shares issued pursuant to ESPP | $ 800 | $ 880 |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Common shares issued pursuant to employee share purchase plan (in shares) | 39,851 | |
Proceeds from common shares issued pursuant to ESPP | $ 801,000 | |
Expected volatility | 23% | |
Dividend yield | 1.60% | |
Risk-free interest rate | 0.20% | |
Award term | 6 months |
Share-Based Payments - Summary
Share-Based Payments - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | $ 13,768 | $ 14,266 | $ 27,722 | $ 28,293 | |
Less amount capitalized | (1,297) | (610) | (2,347) | (1,401) | |
Share-based compensation expense | 12,471 | 13,656 | 25,375 | 26,892 | |
Total unrecognized compensation expense | 63,300 | $ 63,300 | |||
Compensation expense recognition period (in years) | 3 years 3 months 18 days | ||||
Share Based Compensation - Other | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 12,191 | 9,825 | $ 23,901 | 18,907 | |
Time-Based LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 6,202 | 4,115 | 12,328 | 8,495 | |
Compensation expense recognition period (in years) | 4 years | ||||
AO LTIP Units and Performance-Based LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 3,590 | 3,160 | 7,747 | 6,399 | |
Other Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 1,399 | 1,459 | 2,826 | 2,922 | |
Share Based Compensation Related To Formation Transaction and Special Equity Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 1,577 | 4,441 | 3,821 | 9,386 | |
Formation Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 769 | 718 | 1,143 | 1,447 | |
OP Units and LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 248 | 2,265 | 831 | 5,049 | |
LTIP Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | 1,000 | 1,091 | 1,000 | 1,091 | |
Special Time-Based LTIP Units and Special Performance-Based LTIP Units (3) | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total share-based compensation expense | $ 560 | $ 1,458 | $ 1,847 | $ 2,890 |
Transaction and Other Costs (De
Transaction and Other Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Transaction and Other Costs. | ||||
Demolition Costs | $ 406 | $ 439 | $ 428 | $ 1,447 |
Integration and severance costs | 727 | 222 | 872 | 462 |
Completed, potential and pursued transaction expenses | 854 | 1,609 | 1,586 | 4,051 |
Transaction and other costs | $ 1,987 | $ 2,270 | $ 2,886 | $ 5,960 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Expense | ||||
Interest expense before capitalized interest | $ 18,857 | $ 16,800 | $ 37,299 | $ 33,466 |
Amortization of deferred financing costs | 1,121 | 1,045 | 2,251 | 2,092 |
Interest expense related to finance lease right-of-use assets | 247 | 428 | 2,091 | 854 |
Net unrealized (gain) loss on derivative financial instruments designated as ineffective hedges | (2,027) | 46 | (5,394) | (87) |
Capitalized interest | (2,157) | (1,546) | (3,928) | (3,256) |
Interest expense | $ 16,041 | $ 16,773 | $ 32,319 | $ 33,069 |
Shareholders' Equity and Earn_3
Shareholders' Equity and Earnings (Loss) Per Common Share - Common Shares Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 28 Months Ended | ||
Jul. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Mar. 31, 2020 | |
Sale of stock | ||||||
Authorized value of shares for repurchase | $ 1,000 | $ 1,000 | $ 1,000 | $ 500 | ||
Additional shares authorized | $ 500 | $ 500 | $ 500 | |||
Repurchase and retired common shares | 8,500,000 | 11,800,000 | 619,749 | 21,000,000 | ||
Repurchase and retired common shares, Value | $ 213.9 | $ 307 | $ 19.2 | $ 569.5 | ||
Average purchase price | $ 25.15 | $ 25.91 | $ 30.96 | $ 27.12 | ||
Subsequent Event | ||||||
Sale of stock | ||||||
Repurchase and retired common shares | 1,500,000 | |||||
Repurchase and retired common shares, Value | $ 36 | |||||
Average purchase price | $ 23.92 |
Shareholders' Equity and Earn_4
Shareholders' Equity and Earnings (Loss) Per Common Share - Basic and Diluted Earnings (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shareholders' Equity and Earnings (Loss) Per Common Share | ||||
Net income (loss) | $ 141,494 | $ (3,318) | $ 141,417 | $ (27,387) |
Net (income) loss attributable to redeemable noncontrolling interests | (18,248) | 345 | (18,258) | 2,575 |
Net loss attributable to noncontrolling interests | 29 | 84 | 1,108 | |
Net income (loss) attributable to common shareholders | 123,275 | (2,973) | 123,243 | (23,704) |
Distributions to participating securities | (12) | (734) | (12) | (734) |
Net income (loss) available to common shareholders - basic | 123,263 | (3,707) | 123,231 | (24,438) |
Net income (loss) available to common shareholders - diluted | $ 123,263 | $ (3,707) | $ 123,231 | $ (24,438) |
Weighted average number of common shares outstanding - basic | 121,316 | 131,480 | 123,984 | 131,510 |
Weighted average number of common shares outstanding - diluted | 121,316 | 131,480 | 123,984 | 131,510 |
Earnings (loss) per common share - basic | $ 1.02 | $ (0.03) | $ 0.99 | $ (0.19) |
Earnings (loss) per common share - diluted | $ 1.02 | $ (0.03) | $ 0.99 | $ (0.19) |
Shareholders' Equity and Earn_5
Shareholders' Equity and Earnings (Loss) Per Common Share - Antidilutive (Details) - $ / shares shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 29, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 6 | 3.9 | 5.9 | 3.9 | |
Dividends cash declared | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | |
Subsequent Event | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Dividends cash declared | $ 0.225 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value Measurements | ||
Net unrealized gain (loss) on derivative designated as cash flow hedge | $ 21.6 | $ (17.2) |
Gain expected to be reclassified into interest expense within the next 12 months | $ 10 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Interest rate swaps and caps - Recurring - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other Assets Net | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Classified as assets in Other assets, net | $ 20,383 | $ 393 |
Other Assets Net | Designated as Hedging Instrument | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Classified as assets in Other assets, net | 20,383 | 393 |
Other Assets Net | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Classified as assets in Other assets, net | 5,951 | 558 |
Other Assets Net | Not Designated as Hedging Instrument | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Classified as assets in Other assets, net | $ 5,951 | 558 |
Other Liabilities, Net | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Classified as liabilities in Other liabilities, net | 18,361 | |
Other Liabilities, Net | Designated as Hedging Instrument | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Classified as liabilities in Other liabilities, net | $ 18,361 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Mortgages Payable | Fair Value | ||
Financial liabilities: | ||
Financial liabilities | $ 1,606,673 | $ 1,814,780 |
Mortgages Payable | Carrying Amount | ||
Financial liabilities: | ||
Financial liabilities | 1,621,127 | 1,788,259 |
Revolving Credit Facility | Fair Value | ||
Financial liabilities: | ||
Financial liabilities | 300,363 | |
Revolving Credit Facility | Carrying Amount | ||
Financial liabilities: | ||
Financial liabilities | 300,000 | |
Unsecured term loans | Fair Value | ||
Financial liabilities: | ||
Financial liabilities | 400,263 | 400,519 |
Unsecured term loans | Carrying Amount | ||
Financial liabilities: | ||
Financial liabilities | $ 400,000 | $ 400,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment Reporting Information | ||
Number of reportable segments | segment | 3 | |
Intangible assets, net | $ 157,819 | $ 201,956 |
Third-Party Real Estate Services Segment | ||
Segment Reporting Information | ||
Intangible assets, net | $ 16,700 | $ 19,600 |
Segment Information - Summary o
Segment Information - Summary of Third-party Asset Management and Real Estate Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information | ||||
Third-party real estate services revenue, excluding reimbursements | $ 11,211 | $ 14,845 | $ 24,134 | $ 38,995 |
Reimbursement revenue | 10,946 | 11,900 | 21,993 | 25,857 |
Third-party real estate services revenue, including reimbursements | 22,157 | 26,745 | 46,127 | 64,852 |
Third-party real estate services expenses | 24,143 | 25,557 | 51,192 | 54,493 |
Third-party real estate services revenue less expenses | (1,986) | 1,188 | (5,065) | 10,359 |
Property management fees | ||||
Segment Reporting Information | ||||
Third-party real estate services revenue, excluding reimbursements | 4,976 | 4,776 | 9,784 | 9,718 |
Asset management fees | ||||
Segment Reporting Information | ||||
Third-party real estate services revenue, excluding reimbursements | 1,513 | 2,229 | 3,284 | 4,457 |
Development fees | ||||
Segment Reporting Information | ||||
Third-party real estate services revenue, excluding reimbursements | 2,148 | 4,392 | 5,687 | 18,642 |
Revenue, Remaining Performance Obligation, Amount | 43,200 | 43,200 | ||
Development fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | ||||
Segment Reporting Information | ||||
Revenue, Remaining Performance Obligation, Amount | $ 7,100 | $ 7,100 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 months | 6 months | ||
Development fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||
Segment Reporting Information | ||||
Revenue, Remaining Performance Obligation, Amount | $ 12,300 | $ 12,300 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year | ||
Development fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||||
Segment Reporting Information | ||||
Revenue, Remaining Performance Obligation, Amount | $ 6,600 | $ 6,600 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | 1 year | ||
Development fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||||
Segment Reporting Information | ||||
Revenue, Remaining Performance Obligation, Amount | $ 17,200 | $ 17,200 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 years | 3 years | ||
Leasing fees | ||||
Segment Reporting Information | ||||
Third-party real estate services revenue, excluding reimbursements | $ 1,038 | 1,424 | $ 2,877 | 2,284 |
Construction management fees | ||||
Segment Reporting Information | ||||
Third-party real estate services revenue, excluding reimbursements | 37 | 234 | 187 | 406 |
Other service revenue | ||||
Segment Reporting Information | ||||
Third-party real estate services revenue, excluding reimbursements | $ 1,499 | $ 1,790 | $ 2,315 | $ 3,488 |
Segment Information - Schedule
Segment Information - Schedule of Reconciliation of Net Income (Loss) Attributable to Common Shareholders to Consolidated NOI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Information | ||||
Net income (loss) attributable to common shareholders | $ 123,275 | $ (2,973) | $ 123,243 | $ (23,704) |
Depreciation and amortization expense | 49,479 | 56,678 | 107,541 | 121,404 |
Corporate and other | 14,782 | 13,895 | 30,597 | 26,370 |
Third-party real estate services | 24,143 | 25,557 | 51,192 | 54,493 |
Share-based compensation related to Formation Transaction and special equity awards | 1,577 | 4,441 | 3,821 | 9,386 |
Transaction and other costs | 1,987 | 2,270 | 2,886 | 5,960 |
Interest expense | 16,041 | 16,773 | 32,319 | 33,069 |
Loss on extinguishment of debt | 1,038 | 1,629 | ||
Income tax expense (benefit) | 2,905 | (5) | 2,434 | 4,310 |
Net income (loss) attributable to redeemable noncontrolling interests | 18,248 | (345) | 18,258 | (2,575) |
Net loss attributable to noncontrolling interests | (29) | (84) | (1,108) | |
Third-party real estate services, including reimbursements revenue | 22,157 | 26,745 | 46,127 | 64,852 |
Other revenue | 1,798 | 1,904 | 3,994 | 4,090 |
Income (loss) from unconsolidated real estate ventures, net | (2,107) | 3,953 | 1,038 | 3,010 |
Interest and other income (loss), net | 1,672 | (38) | 15,918 | (29) |
Gain on the sale of real estate, net | 158,767 | 11,290 | 158,631 | 11,290 |
Consolidated NOI | $ 71,159 | $ 72,437 | $ 148,128 | $ 144,392 |
Segment Information - Summary_2
Segment Information - Summary of NOI by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information | ||||
Property rental revenue | $ 117,036 | $ 122,819 | $ 248,634 | $ 245,060 |
Total rental revenue | 121,550 | 125,995 | 257,349 | 250,991 |
Property operating | 35,445 | 35,000 | 76,089 | 69,731 |
Real estate taxes | 14,946 | 18,558 | 33,132 | 36,868 |
Total property expense | 50,391 | 53,558 | 109,221 | 106,599 |
Consolidated NOI | 71,159 | 72,437 | 148,128 | 144,392 |
Parking | ||||
Segment Reporting Information | ||||
Revenue | 4,514 | 3,176 | 8,715 | 5,931 |
Operating Segments | Commercial Segment | ||||
Segment Reporting Information | ||||
Property rental revenue | 71,903 | 89,189 | 159,524 | 176,370 |
Total rental revenue | 76,090 | 92,148 | 167,723 | 182,019 |
Property operating | 19,624 | 25,097 | 45,826 | 49,061 |
Real estate taxes | 9,018 | 12,148 | 20,795 | 23,920 |
Total property expense | 28,642 | 37,245 | 66,621 | 72,981 |
Consolidated NOI | 47,448 | 54,903 | 101,102 | 109,038 |
Operating Segments | Commercial Segment | Parking | ||||
Segment Reporting Information | ||||
Revenue | 4,187 | 2,959 | 8,199 | 5,649 |
Operating Segments | Multifamily Segment | ||||
Segment Reporting Information | ||||
Property rental revenue | 42,939 | 32,718 | 85,047 | 65,304 |
Total rental revenue | 43,189 | 32,828 | 85,431 | 65,479 |
Property operating | 14,870 | 12,042 | 28,625 | 24,237 |
Real estate taxes | 5,054 | 5,065 | 10,275 | 10,310 |
Total property expense | 19,924 | 17,107 | 38,900 | 34,547 |
Consolidated NOI | 23,265 | 15,721 | 46,531 | 30,932 |
Operating Segments | Multifamily Segment | Parking | ||||
Segment Reporting Information | ||||
Revenue | 250 | 110 | 384 | 175 |
Other | ||||
Segment Reporting Information | ||||
Property rental revenue | 2,194 | 912 | 4,063 | 3,386 |
Total rental revenue | 2,271 | 1,019 | 4,195 | 3,493 |
Property operating | 951 | (2,139) | 1,638 | (3,567) |
Real estate taxes | 874 | 1,345 | 2,062 | 2,638 |
Total property expense | 1,825 | (794) | 3,700 | (929) |
Consolidated NOI | 446 | 1,813 | 495 | 4,422 |
Other | Parking | ||||
Segment Reporting Information | ||||
Revenue | $ 77 | $ 107 | $ 132 | $ 107 |
Segment Information - Summary_3
Segment Information - Summary of Certain Balance Sheet Data by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information | ||
Real estate, at cost | $ 5,606,587 | $ 6,236,476 |
Investments in unconsolidated real estate ventures | 414,349 | 462,885 |
Total assets | 5,579,902 | 6,386,206 |
Operating Segments | Commercial Segment | ||
Segment Reporting Information | ||
Real estate, at cost | 2,722,907 | 3,422,278 |
Investments in unconsolidated real estate ventures | 233,519 | 281,515 |
Total assets | 3,016,911 | 3,591,839 |
Operating Segments | Multifamily Segment | ||
Segment Reporting Information | ||
Real estate, at cost | 2,481,213 | 2,367,712 |
Investments in unconsolidated real estate ventures | 96,030 | 103,389 |
Total assets | 1,856,493 | 1,797,807 |
Other | ||
Segment Reporting Information | ||
Real estate, at cost | 402,467 | 446,486 |
Investments in unconsolidated real estate ventures | 84,800 | 77,981 |
Total assets | $ 706,498 | $ 996,560 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Real Estate Properties [Line Items] | ||
General liability insurance limit | $ 150,000 | |
Property and rental value insurance coverage limit | 1,500,000 | |
Terrorist acts insurance coverage limit | 2,000,000 | |
Construction commitment | 528,500 | |
Environmental liabilities included in Other liabilities, net | 19,418 | $ 18,168 |
Tenant-related obligations | 74,300 | |
Consolidated Properties | ||
Real Estate Properties [Line Items] | ||
Tenant-related obligations | 68,800 | |
Principal payment guarantees | 8,300 | |
Unconsolidated Properties | ||
Real Estate Properties [Line Items] | ||
Tenant-related obligations | 5,500 | |
Additional capital funding committed amount | 66,400 | |
Principal payment guarantees | $ 0 | |
Minimum | ||
Real Estate Properties [Line Items] | ||
Construction commitment period | 2 years | |
Maximum | ||
Real Estate Properties [Line Items] | ||
Construction commitment period | 3 years |
Transactions with Related Par_2
Transactions with Related Parties (Details) - Affiliated Entity - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Washington Housing Initiative | |||||
Related Party Transaction [Line Items] | |||||
Completed capital commitments | $ 114,400,000 | $ 114,400,000 | |||
Commitment | 11,200,000 | 11,200,000 | |||
Remaining unfunded commitment | 6,200,000 | 6,200,000 | |||
Supervisory Services of Properties | BMS | |||||
Related Party Transaction [Line Items] | |||||
Related party payments | 2,000,000 | $ 4,100,000 | 5,100,000 | $ 8,500,000 | |
Fees from Legacy JBG Funds and Washington Housing Initiative | Legacy JBG Funds and Washington Housing Initiative | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 4,800,000 | 5,800,000 | 10,300,000 | 11,600,000 | |
Receivables | 3,300,000 | 3,300,000 | $ 3,200,000 | ||
Office Rent | Unconsolidated Real Estate Ventures | |||||
Related Party Transaction [Line Items] | |||||
Related party payments | $ 321,000 | $ 495,000 | $ 708,000 | $ 766,000 |