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TABLE OF CONTENTS | JUNE 30, 2017 |
Page | |
Overview | |
Disclosures | 3-4 |
Company Profile | |
Portfolio Overview | 6-7 |
Financial Information | |
Operating Assets | |
Summary & Same Store NOI | 9-10 |
Summary NOI | |
Summary NOI - Office | |
Summary NOI - Multifamily | |
NOI Reconciliations | 14-15 |
Leasing Activity | |
Leasing Activity - Office | |
Lease Expirations | |
Signed But Not Yet Commenced Leases | |
Contractual Free Rent | |
Tenant Concentration | |
Industry Diversity | |
Property Data | |
Portfolio Summary | |
Property Tables: | |
Office | 23-26 |
Multifamily | 27-28 |
Other | |
Under Construction | 30-31 |
Near-Term Development | |
Future Development | |
Debt | |
Debt by Instrument | 34-36 |
Real Estate Ventures | |
Consolidated Real Estate Ventures | |
Unconsolidated Real Estate Ventures | 38-39 |
Definitions | 40-42 |
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DISCLOSURES | JUNE 30, 2017 |
Forward-Looking Statements
Certain statements contained herein may constitute “forward-looking statements” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results of JBG SMITH Properties (“JBG SMITH” or the “Company”) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximate”, “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans”, “would”, “may” or similar expressions in this press release. We also note the following forward-looking statements: our expected annualized dividend per share and dividend yield; in the case of our construction and near-term development assets, the estimated completion date, stabilization date, estimated incremental investment, total investment, and projected net operating income (“NOI”) yield; and in the case of our future development assets, estimated potential development density, estimated commercial SF/multifamily units to be replaced, remaining acquisition costs, estimated capitalized costs and estimated total investment. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see “Risk Factors” and the Cautionary Statement Concerning Forward-Looking Statements in JBG SMITH’s Registration Statement on Form 10, as amended, filed with the Securities and Exchange Commission (the “SEC”) and declared effective on June 26, 2017 as well as the final Information Statement filed with the SEC as Exhibit 99.1 to our Current Report on Form 8-K filed on June 27, 2017. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the Quarterly Report on Form 10-Q, as applicable, and this supplemental information package.
Organization and Basis of Presentation
JBG SMITH was organized by Vornado Realty Trust (“Vornado”) as a Maryland real estate investment trust (“REIT”) on October 27, 2016 (capitalized on November 22, 2016). JBG SMITH was formed for the purpose of receiving on July 17, 2017( the “Separation”), substantially all of the assets and liabilities of Vornado’s Washington, DC segment, which operated as Vornado / Charles E. Smith, (the “Vornado Included Assets”). On July 18, 2017, JBG SMITH acquired the management business and certain assets of The JBG Companies (“JBG” or “JBG Assets”).
Unless otherwise indicated, the financial information in this supplemental information package is as of June 30, 2017 and combines the financial information of the Vornado Included Assets with the financial information of the JBG Assets as if the July 18, 2017 acquisition of the management business and certain assets of The JBG Companies had been completed as of the beginning of the earliest period presented. Therefore, the Company’s results set forth in this supplemental information package are not necessarily indicative of our future results as an independent, publicly traded company.
The information contained in this supplemental information package does not purport to disclose all items required by the accounting principles generally accepted in the United States of America (“GAAP”) and is unaudited information.
Pro Rata Information
We present certain financial information and metrics in this supplemental information package “at JBG SMITH Share,” which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, “real estate ventures”) as applied to these financial measures and metrics. Financial information “at JBG SMITH Share” is calculated on an entity-by-entity basis by applying our percentage economic interest to each applicable line item of that entity’s financial information. “At JBG SMITH Share” information, which we also refer to as being “at share,” “our pro rata share” or “our share,” is not, and is not intended to be, a presentation in accordance with GAAP. Given that greater than 30% of our assets, as measured by total square feet, are held through real estate ventures, we believe this form of presentation, which presents our economic interests in the partially owned entities, provides investors important information regarding a significant component of our portfolio, its composition, performance and capitalization.
We do not control the unconsolidated real estate ventures and do not have a legal claim to our co-venturers’ share of assets, liabilities, revenue and expenses. The operating agreements of the unconsolidated real estate ventures generally allow each co-venturer to receive cash distributions to the extent there is available cash from operations. The
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DISCLOSURES | JUNE 30, 2017 |
amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions.
With respect to any such third-party arrangement, we would not be in a position to exercise sole decision making authority regarding the property, real estate venture or other entity, and may, under certain circumstances, be exposed to economic risks not present were a third-party not involved. We and our respective co-venturers may each have the right to trigger a buy-sell or forced sale arrangement, which could cause us to sell our interest, or acquire our co-venturers’ interests, or to sell the underlying asset, either on unfavorable terms or at a time when we otherwise would not have initiated such a transaction. Our real estate ventures may be subject to debt, and the refinancing of such debt may require equity capital calls. To the extent our co-venturers do not meet their obligations to us or our real estate ventures or they take action inconsistent with the interests of the real estate venture, we may be adversely affected. Because of these limitations, the non-GAAP “at JBG SMITH Share” financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP.
Definitions
See pages 40-42 for definitions of terms used in this supplemental information package.
Non-GAAP Measures
This supplemental information package includes non-GAAP measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why JBG SMITH’s management believes that the presentation of these measures provides useful information to investors regarding JBG SMITH’s financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included this supplemental information package. Our presentation of non-GAAP financial measures may not be comparable to similar non-GAAP measures used by other companies.
The following non-GAAP measures are included in this supplemental information package:
• | NOI |
• | Annualized NOI |
• | Pro Forma Annualized Adjusted NOI |
• | Average Projected NOI Yield |
• | Adjusted Consolidated and Unconsolidated Indebtedness |
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COMPANY PROFILE | JUNE 30, 2017 (Unaudited) |
Company Overview | ||||
The financial information in this supplemental information package as of June 30, 2017 combines the financial information of the Vornado Included Assets with the financial information of the JBG Assets as if the July 18, 2017 acquisition of the management business and certain assets of The JBG Companies had been completed as of the beginning of the earliest period presented. As disclosed in the final Information Statement filed with the SEC as Exhibit 99.1 to our Current Report on Form 8-K filed on June 27, 2017, we are obligated by a registration rights agreement with certain JBG parties to use commercially reasonable efforts to file a Registration Statement Form S-11 in September 2017 to register the JBG SMITH common shares issued to JBG parties. We will also file pro forma financial information as of June 30, 2017 in an amended Current Report on Form 8-K, in accordance with SEC regulations. 2Q17 to 1Q17 Comparison Below are the key highlights regarding quarter over quarter changes in the JBG SMITH portfolio. Operating Assets ▪ The operating office portfolio was 87.5% leased and 86.2% occupied as of June 30, 2017, growing from 87.0% and 84.4%, respectively, as of March 31, 2017.▪ The operating multifamily portfolio was 96.8% leased and 93.9% occupied as of June 30, 2017, growing from 94.7% and 92.5%, respectively, as of March 31, 2017.▪ The operating other portfolio (excluding the Crystal City Marriott Hotel) was 96.3% leased and 96.3% occupied as of June 30, 2017, growing from 95.0% and 94.8%, respectively, as of March 31, 2017.▪ Annualized NOI for the operating portfolio increased to $354.1 million for the three months ended June 30, 2017, compared to $342.0 million for the three months ended March 31, 2017.▪ Same store NOI increased 1.6% to $135.3M for the six months ended June 30, 2017 as compared to $133.1M for the six months ended June 30, 2016. The increase in same store NOI is largely attributable to the expiration of rent abatements and higher rental revenue from lease commencements. The same store pool as of 2Q17 includes only same store Vornado Included Assets and do not include any JBG Assets. See page 41 for the definition of same store.Under Construction ▪ As of June 30, 2017, there were 11 assets under construction (five office assets and six multifamily assets), consisting of 1.2 million square feet and 1,146 units both at JBG SMITH’s share.▪ During the second quarter, JBG SMITH commenced construction on three of the 11 assets (4747 Bethesda Avenue, 1900 N Street, and 7900 Wisconsin Avenue).Near-Term Development ▪ As of June 30, 2017, there were two assets in near-term development (one multifamily asset and one other asset), consisting of 6,534 square feet and 303 units both at JBG SMITH’s share.Future Development ▪ As of June 30, 2017, the number of future development assets remained unchanged at 44 assets consisting of 18.3 million square feet of estimated potential density. | ||||
Executive Officers | Company Snapshot as of July 18, 2017 | |||
W. Matthew Kelly | Chief Executive Officer and Trustee | Exchange/Ticker | NYSE: JBGS | |
Robert A. Stewart | Executive Vice Chairman | Share Price | $37.24 | |
David P. Paul | President and Chief Operating Officer | Shares and Units Outstanding | 137.7 million | |
Stephen W. Theriot | Chief Financial Officer | Total Market Capitalization | $5.1 billion | |
James L. Iker | Chief Investment Officer | Insider Ownership * | 13.0% | |
Brian P. Coulter | Co-Chief Development Officer | Expected Annualized Dividend Per Share | $0.90 | |
Kevin P. Reynolds | Co-Chief Development Officer | Dividend Yield | 2.4% | |
Patrick J. Tyrrell | Chief Administrative Officer | |||
Steven A. Museles | Chief Legal Officer | |||
Angela F. Valdes | Chief Accounting Officer | * Insider Ownership includes JBG SMITH trustees, executive officers, and other employees. |
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PORTFOLIO OVERVIEW | JUNE 30, 2017 (Unaudited) |
100% Share | At JBG SMITH Share | ||||||||||||||||||||||
Number of Assets | Square Feet/Units | Square Feet/Units | % Leased | Annualized Rent (in thousands) | Annualized Rent per Square Foot/Monthly Rent Per Unit (1) | Annualized NOI (in thousands) | |||||||||||||||||
Operating | |||||||||||||||||||||||
Office | |||||||||||||||||||||||
In service | 49 | 13,873,849 | 11,871,298 | 87.4 | % | $ | 447,941 | $ | 44.41 | $ | 271,684 | ||||||||||||
Recently delivered | 1 | 13,633 | 13,633 | 100.0 | % | — | — | — | |||||||||||||||
Total / weighted average | 50 | 13,887,482 | 11,884,931 | 87.5 | % | $ | 447,941 | $ | 44.41 | $ | 271,684 | ||||||||||||
Multifamily | |||||||||||||||||||||||
In service | 13 | 5,317 | 3,533 | 97.0 | % | $ | 81,485 | $ | 2,009 | $ | 59,150 | ||||||||||||
Recently delivered | 1 | 699 | 699 | 95.9 | % | 21,313 | 2,692 | 15,442 | |||||||||||||||
Total / weighted average | 14 | 6,016 | 4,232 | 96.8 | % | $ | 102,798 | $ | 2,122 | $ | 74,592 | ||||||||||||
Other (2) | |||||||||||||||||||||||
In service | 4 | 764,546 | 348,188 | 96.3 | % | $ | 2,888 | $ | 36.51 | $ | 7,812 | ||||||||||||
Operating - Total / Weighted Average | 68 | 14,652,028 SF/ 6,016 Units | 12,233,119 SF/ 4,232 Units | 89.8 | % | $ | 553,627 | $44.34 per SF/ $2,122 per unit | $ | 354,088 | |||||||||||||
Development (3) | |||||||||||||||||||||||
Under Construction | |||||||||||||||||||||||
Office (4) | 5 | 1,343,823 | 1,234,068 | 41.8 | % | ||||||||||||||||||
Multifamily | 6 | 1,334 | 1,146 | N/A | |||||||||||||||||||
Total / weighted average | 11 | 1,343,823 SF/ 1,334 Units | 1,234,068 SF/ 1,146 Units | 41.8 | % | ||||||||||||||||||
Near-Term Development | |||||||||||||||||||||||
Multifamily | 1 | 433 | 303 | ||||||||||||||||||||
Other | 1 | 65,342 | 6,534 | ||||||||||||||||||||
Total | 2 | 65,342 SF/ 433 Units | 6,534 SF/ 303 Units | ||||||||||||||||||||
Development - Total | 13 | 1,409,165 SF/ 1,767 Units | 1,240,603 SF/ 1,449 Units | ||||||||||||||||||||
Future Development | 44 | 22,024,100 | 18,254,300 |
See footnotes on page 7.
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PORTFOLIO OVERVIEW | JUNE 30, 2017 (Unaudited) |
Footnotes
(1) | For office assets, represents annualized office rent divided by occupied office square feet; annualized retail rent and retail square feet are excluded from this metric. For multifamily assets, represents monthly multifamily rent divided by occupied units; retail rent is excluded from this metric. For other assets, represents annualized rent divided by occupied square feet. Occupied square footage may differ from leased square footage because leased square footage includes leases that have been signed but have not yet commenced. |
(2) | Includes three standalone retail assets and the Crystal City Marriott, a standalone hotel totaling 266,000 square feet and 345 rooms. The Crystal City Marriott is excluded from percent leased, annualized rent, and annualized rent per square foot metrics. |
(3) | Refer to pages 30-33 for detail on under construction, near-term development and future development assets. |
(4) | In July 2017, JBG SMITH executed a lease for approximately 80,200 square feet at 4747 Bethesda Avenue to relocate the Company’s headquarters, which brings the asset to 27.9% pre-leased. With this lease, the under construction office assets are 48.3% pre-leased at JBG SMITH’s share. |
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OPERATING ASSETS | JUNE 30, 2017 (Unaudited) |
dollars in thousands, at JBG SMITH Share | Plus: Signed But Not Yet Commenced Leases | Plus: Lease Up of Recently Delivered Assets (1) | Pro Forma Annualized Adjusted NOI | |||||||||||||||
2Q 2017 | Annualized NOI | |||||||||||||||||
% Occupied | NOI | |||||||||||||||||
Office | ||||||||||||||||||
DC | 92.6 | % | $ | 18,880 | $ | 75,520 | $ | 1,310 | $ | — | $ | 76,830 | ||||||
VA | 84.6 | % | 46,413 | 185,652 | 3,154 | — | 188,806 | |||||||||||
MD | 79.2 | % | 2,628 | 10,512 | 1,099 | — | 11,611 | |||||||||||
Total / weighted average | 86.2 | % | $ | 67,921 | $ | 271,684 | $ | 5,563 | $ | — | $ | 277,247 | ||||||
Multifamily | ||||||||||||||||||
DC | 91.9 | % | $ | 5,178 | $ | 20,712 | $ | — | $ | — | $ | 20,712 | ||||||
VA | 94.3 | % | 11,876 | 47,504 | — | 1,429 | 48,933 | |||||||||||
MD | 95.1 | % | 1,594 | 6,376 | — | — | 6,376 | |||||||||||
Total / weighted average | 93.9 | % | $ | 18,648 | $ | 74,592 | $ | — | $ | 1,429 | $ | 76,021 | ||||||
Other (2) | ||||||||||||||||||
Total / weighted average | 96.3 | % | $ | 1,953 | $ | 7,812 | $ | — | $ | — | $ | 7,812 | ||||||
Total | $ | 88,522 | $ | 354,088 | $ | 5,563 | $ | 1,429 | $ | 361,080 |
____________________
(1) | Incremental multifamily revenue of recently delivered multifamily assets assuming management's estimate of average monthly rent per unoccupied unit as of June 30, 2017 and calculated as the product of incremental units available for occupancy up to 95.0% occupancy and weighted average monthly market rent per unit, multiplied by 12. Excludes potential revenue from retail space in these recently delivered multifamily assets. |
(2) | Includes three standalone retail assets and the Crystal City Marriott, a standalone hotel totaling 266,000 square feet and 345 rooms. The Crystal City Marriott is excluded from the percent occupied metric. |
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SUMMARY & SAME STORE NOI | JUNE 30, 2017 (Unaudited) |
dollars in thousands | 100% Share | At JBG SMITH Share | ||||||||||||||||||||||
NOI for the Three Months Ended June 30, | ||||||||||||||||||||||||
Number of Assets | Square Feet/Units | Square Feet/Units | % Leased (1) | % Occupied (1) | 2017 | 2016 | % Change | |||||||||||||||||
Same Store (2) | ||||||||||||||||||||||||
DC | 9 | 2,843,962 SF/ 283 Units | 2,098,546 SF/ 283 Units | 95.4 | % | 94.7 | % | $ | 18,243 | $ | 17,658 | 3.3 | % | |||||||||||
VA | 26 | 7,471,998 SF/ 2,151 Units | 7,471,998 SF/ 2,151 Units | 87.7 | % | 83.9 | % | 49,327 | 49,177 | 0.3 | % | |||||||||||||
MD | 1 | 214,019 SF | 214,019 SF | 98.4 | % | 98.9 | % | 1,018 | 995 | 2.3 | % | |||||||||||||
Total / weighted average | 36 | 10,529,979 SF/ 2,434 Units | 9,784,563 SF/ 2,434 Units | 89.5 | % | 87.0 | % | $ | 68,588 | $ | 67,830 | 1.1 | % | |||||||||||
Non-Same Store | ||||||||||||||||||||||||
DC | 10 | 1,394,216 SF/ 1,258 Units | 729,869 SF/ 574 Units | 90.8 | % | 86.5 | % | $ | 5,875 | |||||||||||||||
VA | 13 | 2,240,904 SF/ 1,045 Units | 1,396,328 SF/ 734 Units | 94.0 | % | 88.5 | % | 10,855 | ||||||||||||||||
MD | 9 | 486,929 SF/ 1,279 Units | 322,359 SF/ 490 Units | 81.6 | % | 64.5 | % | 3,204 | ||||||||||||||||
Total / weighted average | 32 | 4,122,049 SF/ 3,582 Units | 2,448,556 SF/ 1,798 Units | 90.8 | % | 85.0 | % | $ | 19,934 | |||||||||||||||
Total Operating Portfolio | ||||||||||||||||||||||||
DC | 19 | 4,238,178 SF/ 1,541 Units | 2,828,415 SF/ 857 Units | 93.8 | % | 92.7 | % | $ | 24,118 | |||||||||||||||
VA | 39 | 9,712,902 SF/ 3,196 Units | 8,868,326 SF/ 2,885 Units | 88.9 | % | 84.7 | % | 60,182 | ||||||||||||||||
MD | 10 | 700,948 SF/ 1,279 Units | 536,378 SF/ 490 Units | 85.4 | % | 79.3 | % | 4,222 | ||||||||||||||||
Operating Portfolio - Total / Weighted Average | 68 | 14,652,028 SF/ 6,016 Units | 12,233,119 SF/ 4,232 Units | 89.8 | % | 88.1 | % | $ | 88,522 |
____________________
(1) | The Crystal City Marriott is excluded from the percent leased and percent occupied metrics. |
(2) | Same store refers to the pool of assets that were owned by JBG SMITH or its predecessor and stabilized for the entirety of both periods being compared, except for assets for which significant redevelopment, renovation, or repositioning occurred during either of the periods being compared. No JBG Assets are included in the same store pool. |
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SUMMARY & SAME STORE NOI | JUNE 30, 2017 (Unaudited) |
dollars in thousands | 100% Share | At JBG SMITH Share | ||||||||||||||||||||||
NOI for the Six Months Ended June 30, | ||||||||||||||||||||||||
Number of Assets | Square Feet/Units | Square Feet/Units | % Leased (1) | % Occupied (1) | 2017 | 2016 | % Change | |||||||||||||||||
Same Store (2) | ||||||||||||||||||||||||
DC | 9 | 2,843,962 SF/ 283 Units | 2,098,546 SF/ 283 Units | 95.4 | % | 94.7 | % | $ | 35,668 | $ | 36,015 | (1.0 | )% | |||||||||||
VA | 26 | 7,471,998 SF/ 2,151 Units | 7,471,998 SF/ 2,151 Units | 87.7 | % | 83.9 | % | 97,532 | 95,148 | 2.5 | % | |||||||||||||
MD | 1 | 214,019 SF | 214,019 SF | 98.4 | % | 98.9 | % | 2,064 | 1,942 | 6.3 | % | |||||||||||||
Total / weighted average | 36 | 10,529,979 SF/ 2,434 Units | 9,784,563 SF/ 2,434 Units | 89.5 | % | 87.0 | % | $ | 135,264 | $ | 133,105 | 1.6 | % | |||||||||||
Non-Same Store | ||||||||||||||||||||||||
DC | 10 | 1,394,216 SF/ 1,258 Units | 729,869 SF/ 574 Units | 90.8 | % | 86.5 | % | $ | 11,196 | |||||||||||||||
VA | 13 | 2,240,904 SF/ 1,045 Units | 1,396,328 SF/ 734 Units | 94.0 | % | 88.5 | % | 20,652 | ||||||||||||||||
MD | 9 | 486,929 SF/ 1,279 Units | 322,359 SF/ 490 Units | 81.6 | % | 64.5 | % | 6,901 | ||||||||||||||||
Total / weighted average | 32 | 4,122,049 SF/ 3,582 Units | 2,448,556 SF/ 1,798 Units | 90.8 | % | 85.0 | % | $ | 38,749 | |||||||||||||||
Total Operating Portfolio | ||||||||||||||||||||||||
DC | 19 | 4,238,178 SF/ 1,541 Units | 2,828,415 SF/ 857 Units | 93.8 | % | 92.7 | % | $ | 46,864 | |||||||||||||||
VA | 39 | 9,712,902 SF/ 3,196 Units | 8,868,326 SF/ 2,885 Units | 88.9 | % | 84.7 | % | 118,184 | ||||||||||||||||
MD | 10 | 700,948 SF/ 1,279 Units | 536,378 SF/ 490 Units | 85.4 | % | 79.3 | % | 8,965 | ||||||||||||||||
Operating Portfolio - Total / Weighted Average | 68 | 14,652,028 SF/ 6,016 Units | 12,233,119 SF/ 4,232 Units | 89.8 | % | 88.1 | % | $ | 174,013 |
See footnotes on page 9.
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SUMMARY NOI | JUNE 30, 2017 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended June 30, 2017 at JBG SMITH Share | ||||||||||||||||||
Consolidated | Unconsolidated | Office | Multifamily | Other | Total | ||||||||||||||
Number of operating assets | 49 | 19 | 50 | 14 | 4 | 68 | |||||||||||||
Property rentals | $ | 108,016 | $ | 11,265 | $ | 93,412 | $ | 24,961 | $ | 908 | $ | 119,281 | |||||||
Tenant expense reimbursement | 10,752 | 1,866 | 10,753 | 1,767 | 98 | 12,618 | |||||||||||||
Other revenue | 10,570 | 1,091 | 8,374 | 1,660 | 1,627 | 11,661 | |||||||||||||
Total revenue | 129,338 | 14,222 | 112,539 | 28,388 | 2,633 | 143,560 | |||||||||||||
Total expenses | (48,976 | ) | (6,853 | ) | (45,536 | ) | (9,981 | ) | (312 | ) | (55,829 | ) | |||||||
Property operating income | 80,362 | 7,369 | 67,003 | 18,407 | 2,321 | 87,731 | |||||||||||||
Adjustments to NOI: | |||||||||||||||||||
Straight-line rent adjustment | (2,063 | ) | (136 | ) | (1,768 | ) | (37 | ) | (394 | ) | (2,199 | ) | |||||||
Related party adjustment (1) | 3,244 | 425 | 3,366 | 277 | 26 | 3,669 | |||||||||||||
Ground rent expense | (680 | ) | 1 | (680 | ) | 1 | — | (679 | ) | ||||||||||
Total adjustments to NOI | 501 | 290 | 918 | 241 | (368 | ) | 791 | ||||||||||||
NOI | $ | 80,863 | $ | 7,659 | $ | 67,921 | $ | 18,648 | $ | 1,953 | $ | 88,522 | |||||||
Annualized NOI | $ | 323,452 | $ | 30,636 | $ | 271,684 | $ | 74,592 | $ | 7,812 | $ | 354,088 | |||||||
Additional Information | |||||||||||||||||||
Free rent (at 100% share) | $ | 8,547 | $ | 2,998 | $ | 10,350 | $ | 1,074 | $ | 121 | $ | 11,545 | |||||||
Free rent (at JBG SMITH share) | $ | 8,547 | $ | 1,215 | $ | 9,059 | $ | 639 | $ | 64 | $ | 9,762 | |||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 34,188 | $ | 4,860 | $ | 36,236 | $ | 2,556 | $ | 256 | $ | 39,048 | |||||||
% occupied (3) | 87.8 | % | 90.8 | % | 86.2 | % | 93.9 | % | 96.3 | % | 88.1 | % | |||||||
Annualized base rent of signed leases, not commenced (at 100% share) (4) | $ | 4,548 | $ | 2,734 | $ | 7,282 | $ | — | $ | — | $ | 7,282 | |||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (4)(5) | $ | 4,548 | $ | 1,015 | $ | 5,563 | $ | — | $ | — | $ | 5,563 |
___________________
(1) | To eliminate management fees included in property operating income. |
(2) | Represents JBG SMITH share of free rent for the three months ended June 30, 2017 multiplied by four. |
(3) | Weighted by JBG SMITH share of square feet. The Crystal City Marriott is excluded from the percent occupied metric. |
(4) | Represents monthly base rent before free rent and straight line rent adjustments, plus estimated tenant reimbursements for the month in which the lease commences, multiplied by 12. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to monthly base rent. |
(5) | Represents JBG SMITH share of annualized base rent of signed but not yet commenced leases. |
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SUMMARY NOI - OFFICE | JUNE 30, 2017 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended June 30, 2017 at JBG SMITH Share | ||||||||||||||||||
Consolidated | Unconsolidated | DC | VA | MD | Total | ||||||||||||||
Number of operating assets | 38 | 12 | 14 | 31 | 5 | 50 | |||||||||||||
Property rentals | $ | 84,667 | $ | 8,745 | $ | 27,014 | $ | 62,722 | $ | 3,676 | $ | 93,412 | |||||||
Tenant expense reimbursement | 9,024 | 1,729 | 5,932 | 4,547 | 274 | 10,753 | |||||||||||||
Other revenue | 7,460 | 914 | 1,967 | 5,931 | 476 | 8,374 | |||||||||||||
Total revenue | 101,151 | 11,388 | 34,913 | 73,200 | 4,426 | 112,539 | |||||||||||||
Total expenses | (39,685 | ) | (5,851 | ) | (15,948 | ) | (27,625 | ) | (1,963 | ) | (45,536 | ) | |||||||
Property operating income | 61,466 | 5,537 | 18,965 | 45,575 | 2,463 | 67,003 | |||||||||||||
Adjustments to NOI: | |||||||||||||||||||
Straight-line rent adjustment | (1,667 | ) | (101 | ) | (876 | ) | (1,114 | ) | 222 | (1,768 | ) | ||||||||
Related party adjustment (1) | 3,058 | 308 | 991 | 2,234 | 141 | 3,366 | |||||||||||||
Ground rent expense | (680 | ) | — | (200 | ) | (282 | ) | (198 | ) | (680 | ) | ||||||||
Total adjustments to NOI | 711 | 207 | (85 | ) | 838 | 165 | 918 | ||||||||||||
NOI | $ | 62,177 | $ | 5,744 | $ | 18,880 | $ | 46,413 | $ | 2,628 | $ | 67,921 | |||||||
Annualized NOI | $ | 248,708 | $ | 22,976 | $ | 75,520 | $ | 185,652 | $ | 10,512 | $ | 271,684 | |||||||
Additional Information | |||||||||||||||||||
Free rent (at 100% share) | $ | 7,954 | $ | 2,396 | $ | 4,147 | $ | 6,133 | $ | 70 | $ | 10,350 | |||||||
Free rent (at JBG SMITH share) | $ | 7,954 | $ | 1,105 | $ | 2,986 | $ | 6,044 | $ | 29 | $ | 9,059 | |||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 31,816 | $ | 4,420 | $ | 11,944 | $ | 24,176 | $ | 116 | $ | 36,236 | |||||||
% occupied (3) | 85.8 | % | 90.2 | % | 92.6 | % | 84.6 | % | 79.2 | % | 86.2 | % | |||||||
Annualized base rent of signed leases, not commenced (at 100% share) (4) | $ | 4,548 | $ | 2,734 | $ | 3,006 | $ | 3,177 | $ | 1,099 | $ | 7,282 | |||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (4)(5) | $ | 4,548 | $ | 1,015 | $ | 1,310 | $ | 3,154 | $ | 1,099 | $ | 5,563 |
See footnotes on page 11.
![]() | Page 12 |
SUMMARY NOI - MULTIFAMILY | JUNE 30, 2017 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended June 30, 2017 at JBG SMITH Share | ||||||||||||||||||
Consolidated | Unconsolidated | DC | VA | MD | Total | ||||||||||||||
Number of operating assets | 8 | 6 | 4 | 5 | 5 | 14 | |||||||||||||
Property rentals | $ | 22,722 | $ | 2,239 | $ | 6,613 | $ | 16,035 | $ | 2,313 | $ | 24,961 | |||||||
Tenant expense reimbursement | 1,684 | 83 | 633 | 1,059 | 75 | 1,767 | |||||||||||||
Other revenue | 1,488 | 172 | 457 | 1,091 | 112 | 1,660 | |||||||||||||
Total revenue | 25,894 | 2,494 | 7,703 | 18,185 | 2,500 | 28,388 | |||||||||||||
Total expenses | (9,085 | ) | (896 | ) | (2,676 | ) | (6,302 | ) | (1,003 | ) | (9,981 | ) | |||||||
Property operating income | 16,809 | 1,598 | 5,027 | 11,883 | 1,497 | 18,407 | |||||||||||||
Adjustments to NOI: | |||||||||||||||||||
Straight-line rent adjustment | (20 | ) | (17 | ) | (21 | ) | (15 | ) | (1 | ) | (37 | ) | |||||||
Related party adjustment (1) | 173 | 104 | 172 | 8 | 97 | 277 | |||||||||||||
Ground rent expense | — | 1 | — | — | 1 | 1 | |||||||||||||
Total adjustments to NOI | 153 | 88 | 151 | (7 | ) | 97 | 241 | ||||||||||||
NOI | $ | 16,962 | $ | 1,686 | $ | 5,178 | $ | 11,876 | $ | 1,594 | $ | 18,648 | |||||||
Annualized NOI | $ | 67,848 | $ | 6,744 | $ | 20,712 | $ | 47,504 | $ | 6,376 | $ | 74,592 | |||||||
Additional Information | |||||||||||||||||||
Free rent (at 100% share) | $ | 535 | $ | 539 | $ | 275 | $ | 460 | $ | 339 | $ | 1,074 | |||||||
Free rent (at JBG SMITH share) | $ | 535 | $ | 104 | $ | 168 | $ | 455 | $ | 16 | $ | 639 | |||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 2,140 | $ | 416 | $ | 672 | $ | 1,820 | $ | 64 | $ | 2,556 | |||||||
% occupied (3) | 94.0 | % | 92.5 | % | 91.9 | % | 94.3 | % | 95.1 | % | 93.9 | % |
See footnotes on page 11.
![]() | Page 13 |
NOI RECONCILIATIONS | JUNE 30, 2017 (Unaudited) |
in thousands | Three Months Ended June 30, 2017 | Six Months Ended June 30, 2017 | |||||||||||||||||||
Vornado Included Assets | JBG Included Assets | Total JBG SMITH | Vornado Included Assets | JBG Included Assets | Total JBG SMITH | ||||||||||||||||
Net income attributable to JBG SMITH Properties | $ | 11,341 | $ | 17,659 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||
Depreciation and amortization | 31,993 | 65,775 | |||||||||||||||||||
Ground rent | 585 | 1,026 | |||||||||||||||||||
Management and leasing fees | (6,863 | ) | (13,863 | ) | |||||||||||||||||
Income from unconsolidated real estate ventures | (105 | ) | (314 | ) | |||||||||||||||||
Interest and other income, net | (970 | ) | (1,745 | ) | |||||||||||||||||
General and administrative expense | 11,708 | 25,398 | |||||||||||||||||||
Transaction and other costs | 5,237 | 11,078 | |||||||||||||||||||
Interest expense | 14,586 | 28,504 | |||||||||||||||||||
Income tax expense | 363 | 717 | |||||||||||||||||||
Unconsolidated real estate ventures' share of property operating income | 3,452 | 6,970 | |||||||||||||||||||
Other non-operating loss from incidental operations | 1,298 | 3,772 | |||||||||||||||||||
Property operating income | 72,625 | $ | 15,106 | (1) | $ | 87,731 | 144,977 | $ | 31,904 | (1) | $ | 176,881 | |||||||||
Straight-line rent adjustment | (2,088 | ) | 25 | (2,063 | ) | (5,804 | ) | (1,304 | ) | (7,108 | ) | ||||||||||
Related party adjustment (2) | 2,568 | 676 | 3,244 | 5,110 | 1,270 | 6,380 | |||||||||||||||
Ground rent expense | (461 | ) | (219 | ) | (680 | ) | (890 | ) | (438 | ) | (1,328 | ) | |||||||||
Straight-line rent adjustment for unconsolidated real estate ventures | (72 | ) | (64 | ) | (136 | ) | (681 | ) | (1,104 | ) | (1,785 | ) | |||||||||
Related party adjustment for unconsolidated real estate ventures (2) | 158 | 267 | 425 | 434 | 543 | 977 | |||||||||||||||
Ground rent expense for unconsolidated real estate ventures | — | 1 | 1 | — | (4 | ) | (4 | ) | |||||||||||||
NOI | $ | 72,730 | $ | 15,792 | $ | 88,522 | $ | 143,146 | $ | 30,867 | $ | 174,013 |
____________________
(1) | Represents revenues of $26.9 million less operating expenses of $11.8 million for the three months ended June 30, 2017, and revenues of $55.8 million less operating expenses of $23.9 million for the six months ended June 30, 2017. |
(2) | To eliminate management fees included in property operating income. |
![]() | Page 14 |
NOI RECONCILIATIONS | JUNE 30, 2017 (Unaudited) |
in thousands | Vornado Included Assets | ||||||
Three Months Ended June 30, 2016 | Six Months Ended June 30, 2016 | ||||||
Net income attributable to JBG SMITH Properties | $ | 16,783 | $ | 28,330 | |||
Adjustments: | |||||||
Depreciation and amortization | 32,625 | 66,914 | |||||
Ground rent | 372 | 830 | |||||
Management and leasing fees | (7,580 | ) | (16,447 | ) | |||
Loss from unconsolidated real estate ventures | 374 | 1,536 | |||||
Interest and other income, net | (760 | ) | (1,543 | ) | |||
General and administrative expense | 11,939 | 25,960 | |||||
Interest expense | 13,549 | 25,634 | |||||
Income tax expense | 318 | 582 | |||||
Unconsolidated real estate ventures' share of property operating income | 3,282 | 6,426 | |||||
Other non-operating loss from incidental operations | 490 | 1,297 | |||||
Property operating income | 71,392 | 139,519 | |||||
Straight-line rent adjustment | (4,084 | ) | (7,523 | ) | |||
Related party adjustment (2) | 2,551 | 5,090 | |||||
Ground rent expense | (435 | ) | (870 | ) | |||
Straight-line rent adjustment for unconsolidated real estate ventures | (681 | ) | (1,185 | ) | |||
Related party adjustment for unconsolidated real estate ventures (2) | 122 | 391 | |||||
NOI | $ | 68,865 | $ | 135,422 |
See footnotes on page 14.
![]() | Page 15 |
LEASING ACTIVITY - OFFICE | JUNE 30, 2017 (Unaudited) |
square feet in thousands | Three Months Ended June 30, 2017 | Six Months Ended June 30, 2017 | |||||
Square feet leased: | |||||||
At 100% share | 333 | 869 | |||||
At JBG SMITH share | 283 | 805 | |||||
Initial rent (1) | $ | 54.65 | $ | 47.24 | |||
Weighted average lease term (years) | 8.4 | 8.7 | |||||
Weighted average free rent period (months) | 8.6 | 7.6 | |||||
Second generation space: | |||||||
Square feet | 159 | 642 | |||||
GAAP basis: | |||||||
Straight-line rent (2) | $ | 43.76 | $ | 43.88 | |||
Prior straight-line rent | $ | 42.80 | $ | 41.84 | |||
% change | 2.2 | % | 4.9 | % | |||
Cash basis: | |||||||
Initial rent | $ | 43.69 | $ | 42.89 | |||
Prior escalated rent | $ | 45.19 | $ | 45.52 | |||
% change | (3.3 | )% | (5.8 | )% | |||
Tenant improvements: | |||||||
Per square foot | $ | 56.71 | $ | 57.16 | |||
Per square foot per annum | $ | 6.72 | $ | 6.56 | |||
% of initial rent | 12.3 | % | 13.9 | % | |||
Leasing commissions: | |||||||
Per square foot | $ | 18.71 | $ | 12.90 | |||
Per square foot per annum | $ | 2.22 | $ | 1.48 | |||
% of initial rent | 4.1 | % | 3.1 | % |
___________________
Note: At JBG SMITH share. The leasing activity and related statistics are based on leases signed during the period and are not intended to coincide with the commencement of rental revenue in accordance with GAAP. Second generation space represents square footage that has not been vacant for more than nine months.
(1) | Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis straight-line rent per square foot. |
(2) | Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, and includes the effect of free rent and fixed step-ups in rent. |
![]() | Page 16 |
LEASE EXPIRATIONS | JUNE 30, 2017 (Unaudited) |
At JBG SMITH Share | ||||||||||||||||||||||||
Year of Lease Expiration | Number of Leases | Square Feet | % of Total Square Feet | Annualized Rent (in thousands) | % of Total Annualized Rent | Annualized Rent Per Square Foot | Estimated Annualized Rent Per Square Foot at Expiration (1) | |||||||||||||||||
Month-to-Month | 69 | 120,199 | 1.1 | % | $ | 3,182 | 0.7 | % | $ | 26.47 | $ | 26.47 | ||||||||||||
2017 | 85 | 324,975 | 3.1 | % | 12,397 | 2.7 | % | 38.15 | 38.52 | |||||||||||||||
2018 | 183 | 946,176 | 9.0 | % | 41,434 | 9.1 | % | 43.79 | 44.70 | |||||||||||||||
2019 | 164 | 1,315,907 | 12.5 | % | 59,005 | 13.0 | % | 44.84 | 46.55 | |||||||||||||||
2020 | 183 | 1,425,691 | 13.6 | % | 67,196 | 14.8 | % | 47.13 | 50.03 | |||||||||||||||
2021 | 123 | 1,084,382 | 10.3 | % | 48,919 | 10.8 | % | 45.11 | 49.28 | |||||||||||||||
2022 | 110 | 1,297,275 | 12.4 | % | 59,244 | 13.0 | % | 45.67 | 49.46 | |||||||||||||||
2023 | 65 | 408,296 | 3.9 | % | 15,878 | 3.5 | % | 38.89 | 46.00 | |||||||||||||||
2024 | 71 | 597,016 | 5.7 | % | 26,882 | 5.9 | % | 45.03 | 53.16 | |||||||||||||||
2025 | 53 | 387,597 | 3.7 | % | 15,133 | 3.3 | % | 39.04 | 46.14 | |||||||||||||||
Thereafter | 191 | 2,591,892 | 24.7 | % | 105,300 | 23.2 | % | 40.63 | 48.60 | |||||||||||||||
In‑Place Leases - Total/Weighted Average | 1,297 | 10,499,406 | 100.0 | % | $ | 454,570 | 100.0 | % | $ | 43.29 | $ | 47.86 |
____________________
(1) | Represents in-place monthly base rent before free rent, plus tenant reimbursements, as of lease expiration multiplied by 12 and divided by square feet. Triple net leases are converted to a gross basis by adding tenant reimbursements to monthly base rent. Tenant reimbursements at lease expiration are estimated by escalating tenant reimbursements as of June 30, 2017, or management’s estimate thereof, by 2.75% annually through the lease expiration year. |
![]() | Page 17 |
SIGNED BUT NOT YET COMMENCED LEASES | JUNE 30, 2017 (Unaudited) |
in thousands | Estimated Rent (1) at JBG SMITH Share | |||||||||||||||||||||||||||||
Quarter Ending | Total Annualized Estimated Rent Thereafter (3) | |||||||||||||||||||||||||||||
Assets | C/U (2) | September 30, 2017 | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||
Operating | C | $ | 801 | $ | 1,137 | $ | 1,137 | $ | 1,137 | $ | 1,137 | $ | 1,137 | $ | 4,548 | |||||||||||||||
Operating | U | 129 | 253 | 253 | 253 | 253 | 253 | 1,015 | ||||||||||||||||||||||
Under construction | C | 84 | 192 | 5,949 | 5,974 | 5,974 | 6,008 | 30,964 | ||||||||||||||||||||||
Under construction | U | — | — | — | — | — | — | 3,209 | ||||||||||||||||||||||
Total | $ | 1,014 | $ | 1,582 | $ | 7,339 | $ | 7,364 | $ | 7,364 | $ | 7,398 | $ | 39,736 | ||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||
Under construction | C | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 353 | |||||||||||||||
Under construction | U | — | — | — | — | — | — | 356 | ||||||||||||||||||||||
Near‑term development | U | — | — | — | — | — | — | 1,012 | ||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,721 | ||||||||||||||||
Other | ||||||||||||||||||||||||||||||
Near‑term development | U | — | — | — | — | — | 33 | 133 | ||||||||||||||||||||||
Total | $ | 1,014 | $ | 1,582 | $ | 7,339 | $ | 7,364 | $ | 7,364 | $ | 7,431 | $ | 41,590 |
____________________
Note: Table only includes leases for space that was vacant as of June 30, 2017.
(1) | Represents contractual monthly base rent before free rent, plus estimated tenant reimbursements for the month in which the lease is estimated to commence, multiplied by the applicable number of months for each quarter based on the lease’s estimated commencement date. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to monthly base rent. |
(2) | “C” denotes a consolidated interest. “U” denotes an unconsolidated interest. |
(3) | Represents contractual monthly base rent before free rent, plus estimated tenant reimbursements for the month in which the lease is expected to commence, multiplied by 12. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to monthly base rent. |
![]() | Page 18 |
CONTRACTUAL FREE RENT | JUNE 30, 2017 (Unaudited) |
in thousands | Contractual Free Rent (1) at JBG SMITH Share | |||||||||||||||||||||||||||||
Quarter Ending | ||||||||||||||||||||||||||||||
Assets | C/U (2) | June 30, 2017 | September 30, 2017 | December 31, 2017 | March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | ||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||
Operating | C | $ | 7,954 | $ | 5,109 | $ | 2,535 | $ | 2,274 | $ | 1,823 | $ | 1,050 | $ | 2,321 | |||||||||||||||
Operating | U | 1,105 | 762 | 189 | 170 | 103 | 36 | 31 | ||||||||||||||||||||||
Total | $ | 9,059 | $ | 5,871 | $ | 2,724 | $ | 2,444 | $ | 1,926 | $ | 1,086 | $ | 2,352 | ||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||
Operating | C | $ | 535 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Operating | U | 104 | 6 | 6 | 5 | 4 | 2 | 2 | ||||||||||||||||||||||
Under construction | U | — | 70 | 70 | — | — | — | — | ||||||||||||||||||||||
Total | $ | 639 | $ | 76 | $ | 76 | $ | 5 | $ | 4 | $ | 2 | $ | 2 | ||||||||||||||||
Other | ||||||||||||||||||||||||||||||
Operating | C | $ | 58 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Operating | U | 6 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Total | $ | 64 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||
Total | $ | 9,762 | $ | 5,948 | $ | 2,801 | $ | 2,450 | $ | 1,931 | $ | 1,089 | $ | 2,355 |
____________________
(1) | Represents contractual free rent for in-place and signed but not yet commenced leases as of June 30, 2017. |
(2) | “C” denotes a consolidated interest. “U” denotes an unconsolidated interest. |
![]() | Page 19 |
TENANT CONCENTRATION | JUNE 30, 2017 (Unaudited) |
dollars in thousands | At JBG SMITH Share | |||||||||||||||||
Tenant | Number of Leases | Square Feet | % of Total Square Feet | Annualized Rent | % of Total Annualized Rent | |||||||||||||
1 | U.S. Government (GSA) | 80 | 2,561,560 | 24.4 | % | $ | 101,521 | 22.3 | % | |||||||||
2 | Family Health International | 9 | 320,791 | 3.1 | % | 15,608 | 3.4 | % | ||||||||||
3 | Lockheed Martin Corporation | 5 | 274,361 | 2.6 | % | 13,116 | 2.9 | % | ||||||||||
4 | Arlington County | 9 | 241,288 | 2.3 | % | 11,606 | 2.6 | % | ||||||||||
5 | Paul Hastings LLP | 5 | 125,863 | 1.2 | % | 9,700 | 2.1 | % | ||||||||||
6 | Greenberg Traurig LLP | 1 | 115,315 | 1.1 | % | 8,581 | 1.9 | % | ||||||||||
7 | Baker Botts | 2 | 89,525 | 0.9 | % | 7,017 | 1.5 | % | ||||||||||
8 | Public Broadcasting Service | 5 | 140,885 | 1.3 | % | 5,557 | 1.2 | % | ||||||||||
9 | Accenture LLP | 1 | 102,756 | 1.0 | % | 5,545 | 1.2 | % | ||||||||||
10 | Cooley LLP | 5 | 71,615 | 0.7 | % | 5,379 | 1.2 | % | ||||||||||
11 | WeWork | 3 | 122,271 | 1.2 | % | 5,351 | 1.2 | % | ||||||||||
12 | Evolent Health LLC | 1 | 90,905 | 0.9 | % | 4,618 | 1.0 | % | ||||||||||
13 | DRS Tech Inc dba Finmeccanica | 3 | 92,834 | 0.9 | % | 4,433 | 1.0 | % | ||||||||||
14 | RTKL Associates Inc | 2 | 64,003 | 0.6 | % | 4,317 | 0.9 | % | ||||||||||
15 | National Consumer Cooperative | 5 | 87,243 | 0.8 | % | 3,912 | 0.9 | % | ||||||||||
16 | Noblis Inc | 2 | 160,503 | 1.5 | % | 3,911 | 0.9 | % | ||||||||||
17 | Conservation Intl. Foundation | 1 | 86,996 | 0.8 | % | 3,907 | 0.9 | % | ||||||||||
18 | U.S. Green Building Council | 1 | 54,675 | 0.5 | % | 3,756 | 0.8 | % | ||||||||||
19 | The Int'l Justice Mission | 1 | 74,833 | 0.7 | % | 3,657 | 0.8 | % | ||||||||||
20 | Cushman & Wakefield Inc. | 3 | 58,641 | 0.6 | % | 3,607 | 0.8 | % | ||||||||||
Other | 1,153 | 5,562,543 | 52.9 | % | 229,471 | 50.5 | % | |||||||||||
In-Place Leases - Total | 1,297 | 10,499,406 | 100.0 | % | $ | 454,570 | 100.0 | % |
![]() | Page 20 |
INDUSTRY DIVERSITY | JUNE 30, 2017 (unaudited) |
dollars in thousands | At JBG SMITH Share | ||||||||||||||||
Industry | Number of Leases | Square Feet | % of Total Square Feet | Annualized Rent | % of Total Annualized Rent | ||||||||||||
1 | Government | 101 | 2,878,697 | 27.4 | % | $ | 116,580 | 25.6 | % | ||||||||
2 | Government Contractors | 154 | 1,796,033 | 17.1 | % | 79,087 | 17.4 | % | |||||||||
3 | Business Services | 187 | 1,393,093 | 13.3 | % | 58,827 | 12.9 | % | |||||||||
4 | Member Organizations | 115 | 995,483 | 9.5 | % | 46,373 | 10.2 | % | |||||||||
5 | Legal Services | 93 | 624,923 | 6.0 | % | 40,962 | 9.0 | % | |||||||||
6 | Real Estate | 77 | 491,961 | 4.7 | % | 20,280 | 4.5 | % | |||||||||
7 | Health Services | 74 | 444,680 | 4.2 | % | 18,353 | 4.0 | % | |||||||||
8 | Food and Beverage | 135 | 234,838 | 2.2 | % | 12,037 | 2.6 | % | |||||||||
9 | Communications | 29 | 258,150 | 2.5 | % | 9,750 | 2.1 | % | |||||||||
10 | Educational Services | 33 | 234,844 | 2.2 | % | 9,340 | 2.1 | % | |||||||||
Other | 299 | 1,146,704 | 10.9 | % | 42,981 | 9.6 | % | ||||||||||
In-Place Leases - Total | 1,297 | 10,499,406 | 100.0 | % | $ | 454,570 | 100.0 | % |
![]() | Page 21 |
PORTFOLIO SUMMARY | JUNE 30, 2017 (Unaudited) |
Number of Assets | Rentable Square Feet | Number of Units (1) | Estimated Potential Development Density (2) | |||||||||
Wholly Owned | ||||||||||||
Operating | 49 | 14,540,365 | 3,908 | — | ||||||||
Under construction | 7 | 1,580,715 | 547 | — | ||||||||
Future development | 26 | — | — | 16,981,400 | ||||||||
Total | 82 | 16,121,080 | 4,455 | 16,981,400 | ||||||||
Real Estate Ventures | ||||||||||||
Operating | 19 | 5,431,997 | 2,108 | — | ||||||||
Under construction | 4 | 962,384 | 787 | — | ||||||||
Near-term development | 2 | 401,434 | 433 | — | ||||||||
Future development | 18 | — | — | 5,042,700 | ||||||||
Total | 43 | 6,795,815 | 3,328 | 5,042,700 | ||||||||
Total Portfolio | 125 | 22,916,895 | 7,783 | 22,024,100 | ||||||||
Total Portfolio (at JBG SMITH Share) | 125 | 18,366,744 | 5,681 | 18,254,300 |
____________________
Note: At 100% share.
(1) | For assets under construction and near-term development assets, represents estimated number of units based on current design plans. |
(2) | Includes estimated potential office, multifamily and retail development density. |
![]() | Page 22 |
PROPERTY TABLE - OFFICE | JUNE 30, 2017 (Unaudited) |
Office Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q2 2016-2017 / YTD 2016-2017 | Year Built / Renovated | Total Square Feet | Office Square Feet | Retail Square Feet | % Leased | Office % Occupied | Retail % Occupied | Annualized Rent (in thousands) | Office Annualized Rent Per Square Foot (3) | Retail Annualized Rent Per Square Foot (4) | |||||||||||||
DC | |||||||||||||||||||||||||||
Universal Buildings | Uptown | 100.0 | % | C | Y / Y | 1959 / 1990 | 686,873 | 568,797 | 91,075 | 97.8 | % | 98.9 | % | 99.6 | % | $ | 31,324 | $ | 47.05 | $ | 50.65 | ||||||
2101 L Street | CBD | 100.0 | % | C | Y / Y | 1975 / 2007 | 380,375 | 346,588 | 31,320 | 98.7 | % | 99.0 | % | 100.0 | % | 25,321 | 68.33 | 58.88 | |||||||||
Bowen Building | East End | 100.0 | % | C | Y / Y | 1922 / 2004 | 231,390 | 229,931 | — | 84.6 | % | 84.5 | % | — | 13,794 | 70.80 | — | ||||||||||
1730 M Street (5) | CBD | 100.0 | % | C | Y / Y | 1964 / 1998 | 205,294 | 196,691 | 8,018 | 91.9 | % | 90.9 | % | 100.0 | % | 8,597 | 45.83 | 48.30 | |||||||||
1233 20th Street | CBD | 100.0 | % | C | N / N | 1984 / 2003 | 157,966 | 153,812 | — | 83.3 | % | 81.9 | % | — | 5,986 | 47.52 | — | ||||||||||
Executive Tower | East End | 100.0 | % | C | Y / Y | 2001 / 2016 | 129,683 | 124,488 | 4,237 | 78.5 | % | 80.0 | % | 52.6 | % | 8,032 | 78.72 | 86.57 | |||||||||
1600 K Street | CBD | 100.0 | % | C | N / N | 1950 / 2000 | 84,841 | 70,058 | 12,391 | 94.0 | % | 92.7 | % | 100.0 | % | 4,048 | 49.50 | 65.40 | |||||||||
L’Enfant Plaza Office-East (5) | Southwest | 49.0 | % | U | N / N | 1972 / 2012 | 437,504 | 395,568 | — | 89.0 | % | 86.7 | % | — | 16,586 | 47.96 | — | ||||||||||
L’Enfant Plaza Office-North | Southwest | 49.0 | % | U | N / N | 1969 / 2014 | 305,157 | 279,848 | 19,474 | 85.2 | % | 85.5 | % | 100.0 | % | 11,559 | 46.48 | 22.36 | |||||||||
L’Enfant Plaza Retail | Southwest | 49.0 | % | U | N / N | 1968 / 2014 | 148,623 | 13,628 | 102,768 | 78.2 | % | 100.0 | % | 63.7 | % | 4,746 | 35.99 | 62.31 | |||||||||
The Warner | East End | 55.0 | % | U | Y / Y | 1924 / 2012 | 593,153 | 534,804 | 57,133 | 99.5 | % | 96.9 | % | 96.1 | % | 39,080 | 72.43 | 27.86 | |||||||||
Investment Building | East End | 5.0 | % | U | Y / Y | 1924 / 2001 | 401,520 | 375,840 | 18,140 | 91.3 | % | 91.1 | % | 100.0 | % | 24,974 | 68.71 | 73.12 | |||||||||
The Foundry | Georgetown | 9.9 | % | U | N / N | 1973 / 2017 | 232,745 | 221,479 | 9,755 | 85.1 | % | 83.3 | % | 70.3 | % | 8,856 | 46.55 | 38.16 | |||||||||
1101 17th Street | CBD | 55.0 | % | U | Y / Y | 1964 / 1999 | 215,674 | 200,678 | 9,758 | 98.4 | % | 98.4 | % | 82.7 | % | 10,429 | 49.68 | 66.35 | |||||||||
VA | |||||||||||||||||||||||||||
Courthouse Plaza 1 and 2 (5) | Clarendon/Courthouse | 100.0 | % | C | Y / Y | 1989 / 2013 | 638,910 | 574,968 | 57,193 | 91.9 | % | 91.1 | % | 100.0 | % | $ | 26,704 | $ | 46.95 | $ | 34.33 | ||||||
2345 Crystal Drive | Crystal City | 100.0 | % | C | Y / Y | 1988 / N/A | 507,327 | 498,315 | 4,206 | 93.0 | % | 93.4 | % | 100.0 | % | 21,534 | 45.77 | 38.32 | |||||||||
2121 Crystal Drive | Crystal City | 100.0 | % | C | Y / Y | 1985 / 2006 | 505,912 | 505,507 | 405 | 95.5 | % | 95.6 | % | — | 23,309 | 48.23 | — | ||||||||||
1550 Crystal Drive (6) | Crystal City | 100.0 | % | C | Y / Y | 1980 / 2001 | 489,997 | 450,508 | 28,725 | 75.1 | % | 76.3 | % | 75.5 | % | 14,797 | 40.52 | 39.72 | |||||||||
RTC-West (6) | Reston | 100.0 | % | C | N / N | 1988 / 2014 | 447,339 | 444,436 | — | 92.2 | % | 92.1 | % | — | 14,768 | 36.06 | — | ||||||||||
2231 Crystal Drive | Crystal City | 100.0 | % | C | Y / Y | 1987 / 2009 | 465,383 | 414,423 | 50,960 | 87.4 | % | 85.8 | % | 100.0 | % | 16,907 | 42.50 | 35.18 | |||||||||
2011 Crystal Drive | Crystal City | 100.0 | % | C | Y / Y | 1984 / 2006 | 444,664 | 433,006 | 6,762 | 81.5 | % | 81.6 | % | 100.0 | % | 15,773 | 43.49 | 51.81 | |||||||||
2451 Crystal Drive | Crystal City | 100.0 | % | C | Y / Y | 1990 / N/A | 402,172 | 386,182 | 11,690 | 75.6 | % | 74.8 | % | 100.0 | % | 12,302 | 41.08 | 31.67 | |||||||||
Commerce Executive (6) | Reston | 100.0 | % | C | Y / Y | 1987 / 2015 | 393,527 | 372,190 | 16,260 | 89.8 | % | 89.9 | % | 95.2 | % | 12,332 | 35.40 | 27.45 | |||||||||
1235 S. Clark Street | Crystal City | 100.0 | % | C | Y / Y | 1981 / 2007 | 383,994 | 335,495 | 48,346 | 82.6 | % | 80.5 | % | 97.2 | % | 11,869 | 40.73 | 18.54 | |||||||||
241 18th Street S. | Crystal City | 100.0 | % | C | Y / Y | 1977 / 2013 | 355,813 | 325,434 | 28,457 | 76.4 | % | 73.3 | % | 89.9 | % | 9,685 | 36.80 | 35.36 | |||||||||
251 18th Street S. | Crystal City | 100.0 | % | C | Y / Y | 1975 / 2013 | 346,476 | 296,218 | 46,581 | 97.1 | % | 97.8 | % | 95.8 | % | 13,335 | 39.91 | 38.95 | |||||||||
1215 S. Clark Street | Crystal City | 100.0 | % | C | Y / Y | 1983 / 2002 | 336,903 | 334,290 | 2,613 | 99.8 | % | 99.8 | % | 100.0 | % | 10,757 | 32.00 | 31.69 | |||||||||
201 12th Street S. | Crystal City | 100.0 | % | C | Y / Y | 1987 / N/A | 333,838 | 317,672 | 12,213 | 95.3 | % | 96.2 | % | 100.0 | % | 11,464 | 36.04 | 36.44 | |||||||||
800 North Glebe Road | Ballston | 100.0 | % | C | N / N | 2012 / N/A | 305,039 | 277,397 | 26,247 | 99.5 | % | 77.8 | % | 100.0 | % | 12,481 | 52.26 | 45.97 | |||||||||
1225 S. Clark Street | Crystal City | 100.0 | % | C | Y / Y | 1982 / 2013 | 283,214 | 270,159 | 12,850 | 51.4 | % | 42.2 | % | 100.0 | % | 4,536 | 37.68 | 18.90 |
![]() | Page 23 |
PROPERTY TABLE - OFFICE | JUNE 30, 2017 (Unaudited) |
Office Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q2 2016-2017 / YTD 2016-2017 | Year Built / Renovated | Total Square Feet | Office Square Feet | Retail Square Feet | % Leased | Office % Occupied | Retail % Occupied | Annualized Rent (in thousands) | Office Annualized Rent Per Square Foot (3) | Retail Annualized Rent Per Square Foot (4) | |||||||||||||
2200 Crystal Drive | Crystal City | 100.0 | % | C | Y / Y | 1968 / 2006 | 282,920 | 282,920 | — | 45.6 | % | 45.6 | % | — | $ | 4,881 | $ | 37.80 | $ | — | |||||||
1901 South Bell Street | Crystal City | 100.0 | % | C | Y / Y | 1968 / 2008 | 276,954 | 275,030 | 1,924 | 100.0 | % | 100.0 | % | 100.0 | % | 11,173 | 40.61 | 2.14 | |||||||||
2100 Crystal Drive | Crystal City | 100.0 | % | C | Y / Y | 1968 / 2006 | 249,281 | 249,281 | — | 100.0 | % | 100.0 | % | — | 10,009 | 40.15 | — | ||||||||||
200 12th Street S. | Crystal City | 100.0 | % | C | Y / Y | 1985 / 2013 | 202,736 | 202,736 | — | 83.1 | % | 83.1 | % | — | 7,205 | 42.75 | — | ||||||||||
2001 Jefferson Davis Highway | Crystal City | 100.0 | % | C | Y / Y | 1967 / N/A | 160,710 | 159,577 | — | 59.8 | % | 54.1 | % | — | 2,853 | 33.03 | — | ||||||||||
Summit I | Reston | 100.0 | % | C | N / N | 1987 / 2012 | 145,768 | 145,768 | — | 100.0 | % | 100.0 | % | — | 3,564 | 24.45 | — | ||||||||||
Summit II (6) | Reston | 100.0 | % | C | N / N | 1986 / 2012 | 138,350 | 136,878 | 1,472 | 100.0 | % | 100.0 | % | 100.0 | 4,528 | 33.03 | 4.08 | ||||||||||
1800 South Bell Street (6) | Crystal City | 100.0 | % | C | N / N | 1969 / 2007 | 90,866 | 65,957 | 24,479 | 100.0 | % | 100.0 | % | 100.0 | % | 3,147 | 44.55 | 8.20 | |||||||||
Crystal City Shops at 2100 | Crystal City | 100.0 | % | C | Y / Y | 1968 / 2006 | 79,755 | — | 78,245 | 93.3 | % | — | 93.5 | % | 1,703 | — | 23.04 | ||||||||||
Wiehle Avenue Office Building (5) | Reston | 100.0 | % | C | N / N | 1984 / N/A | 77,528 | 75,048 | — | 55.9 | % | 57.7 | % | — | 1,151 | 26.58 | — | ||||||||||
1831 Wiehle Avenue | Reston | 100.0 | % | C | N / N | 1983 / N/A | 75,191 | 73,872 | — | 78.0 | % | 79.4 | % | — | 1,689 | 28.78 | — | ||||||||||
Crystal Drive Retail | Crystal City | 100.0 | % | C | Y / Y | 2003 / N/A | 56,965 | — | 56,965 | 100.0 | % | — | 100.0 | % | 2,936 | — | 51.55 | ||||||||||
Pickett Industrial Park | Eisenhower Avenue | 10.0 | % | U | N / N | 1973 / N/A | 246,145 | 246,145 | — | 89.7 | % | 89.7 | % | — | 3,400 | 15.40 | — | ||||||||||
Rosslyn Gateway-North | Rosslyn | 18.0 | % | U | N / N | 1996 / 2014 | 145,348 | 130,841 | 14,060 | 94.0 | % | 93.9 | % | 96.4 | % | 5,414 | 41.25 | 25.57 | |||||||||
Rosslyn Gateway-South | Rosslyn | 18.0 | % | U | N / N | 1961 / N/A | 106,711 | 95,465 | 7,584 | 89.8 | % | 89.1 | % | 40.4 | % | 2,783 | 31.19 | 40.06 | |||||||||
MD | |||||||||||||||||||||||||||
7200 Wisconsin Avenue | Bethesda CBD | 100.0 | % | C | N / N | 1986 / 2015 | 272,602 | 250,071 | 17,263 | 68.0 | % | 67.6 | % | 79.9 | % | $ | 8,810 | $ | 48.42 | $ | 43.66 | ||||||
One Democracy Plaza* (5) | Bethesda‑Rock Spring | 100.0 | % | C | Y / Y | 1987 / 2013 | 214,019 | 210,762 | 2,138 | 98.4 | % | 98.9 | % | 100.0 | % | 6,841 | 32.48 | 31.42 | |||||||||
NoBe II Office | Rockville Pike Corridor | 18.0 | % | U | N / N | 1965 / 2005 | 136,819 | 117,971 | 15,232 | 19.0 | % | 14.8 | % | 55.4 | % | 644 | 22.79 | 29.02 | |||||||||
11333 Woodglen Drive | Rockville Pike Corridor | 18.0 | % | U | N / N | 2004 / N/A | 63,875 | 55,302 | 8,573 | 92.6 | % | 91.4 | % | 100.0 | % | 2,204 | 34.84 | 51.61 | |||||||||
Total / Weighted Average | 13,873,849 | 12,722,034 | 945,512 | 87.3 | % | 86.2 | % | 91.4 | % | $ | 530,820 | $ | 45.17 | $ | 39.42 | ||||||||||||
Recently Delivered | |||||||||||||||||||||||||||
MD | |||||||||||||||||||||||||||
4749 Bethesda Avenue Retail (7) | Bethesda CBD | 100.0 | % | C | N / N | 2016 / 2016 | 13,633 | — | 13,633 | 100.0 | % | — | — | — | — | — | |||||||||||
Operating - Total / Weighted Average | 13,887,482 | 12,722,034 | 959,145 | 87.4 | % | 86.2 | % | 90.1 | % | $ | 530,820 | $ | 45.17 | $ | 39.42 | ||||||||||||
![]() | Page 24 |
PROPERTY TABLE - OFFICE | JUNE 30, 2017 (Unaudited) |
Office Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q2 2016-2017 / YTD 2016-2017 | Year Built / Renovated | Total Square Feet | Office Square Feet | Retail Square Feet | % Leased | Office % Occupied | Retail % Occupied | Annualized Rent (in thousands) | Office Annualized Rent Per Square Foot (3) | Retail Annualized Rent Per Square Foot (4) | |||||||||||||
Under Construction | |||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||
1900 N Street (5) | CBD | 100.0 | % | C | 271,433 | 258,931 | 12,502 | 29.6 | % | ||||||||||||||||||
L’Enfant Plaza Office-Southeast | Southwest | 49.0 | % | U | 215,185 | 215,185 | — | 56.4 | % | ||||||||||||||||||
VA | |||||||||||||||||||||||||||
CEB Tower at Central Place (5) | Rosslyn | 100.0 | % | C | 529,997 | 518,255 | 11,742 | 66.6 | % | ||||||||||||||||||
RTC-West Retail | Reston | 100.0 | % | C | 40,025 | — | 40,025 | 58.8 | % | ||||||||||||||||||
MD | |||||||||||||||||||||||||||
4747 Bethesda Avenue (8) | Bethesda CBD | 100.0 | % | C | 287,183 | 281,020 | 6,163 | — | |||||||||||||||||||
Under Construction - Total / Weighted Average | 1,343,823 | 1,273,391 | 70,432 | 43.0 | % | ||||||||||||||||||||||
Total / Weighted Average | 15,231,305 | 13,995,425 | 1,029,577 | 83.4 | % | ||||||||||||||||||||||
Totals at JBG SMITH Share | |||||||||||||||||||||||||||
Operating assets | 11,884,931 | 10,933,792 | 803,402 | 87.5 | % | 86.2 | % | 92.3 | % | $ | 447,941 | $ | 44.41 | $ | 38.29 | ||||||||||||
Under construction assets | 1,234,068 | 1,163,636 | 70,432 | 41.8 | % |
See footnotes on page 26.
![]() | Page 25 |
PROPERTY TABLE - OFFICE | JUNE 30, 2017 (Unaudited) |
Footnotes
* Not Metro-Served.
Note: At 100% share. Excludes our 10% subordinated interests in five commercial buildings held through a real estate venture with Wealth Capital Management in which we have no economic interest.
(1) | “C” denotes a consolidated interest. “U” denotes an unconsolidated interest. |
(2) | “Y” denotes an asset as same store and “N” denotes an asset as non-same store. |
(3) | Represents annualized office rent divided by occupied office square feet; annualized retail rent and retail square feet are excluded from this metric. Occupied office square footage may differ from leased office square footage because leased office square footage includes leases that have been signed but have not yet commenced. |
(4) | Represents annualized retail rent divided by occupied retail square feet. Occupied retail square footage may differ from leased retail square footage because leased retail square footage includes leases that have been signed but have not yet commenced. |
(5) | The following assets are subject to ground leases: |
Office Asset | Ground Lease Expiration Date | |
1730 M Street | 4/30/2061 | |
L’Enfant Plaza Office-East | 11/23/2064 | |
Courthouse Plaza 1 and 2 | 1/19/2062 | |
Wiehle Avenue Office Building ** | 6/30/2018 | |
One Democracy Plaza | 11/17/2084 | |
1900 N Street *** | 5/31/2106 | |
CEB Tower at Central Place ** | 6/2/2102 |
** We have an option to purchase the ground lease at a fixed price.
*** Only a portion of the asset is subject to a ground lease.
(6) | The following assets contain space that is held for development or not otherwise available for lease. Such out-of-service square footage is excluded from area, leased, and occupancy metrics in the above table. |
Office Asset | In-Service | Not Available for Lease | |||
1550 Crystal Drive | 489,997 | 18,293 | |||
RTC - West | 447,339 | 19,911 | |||
Commerce Executive | 393,527 | 14,085 | |||
Summit II | 138,350 | 6,480 | |||
1800 South Bell Street | 90,866 | 129,914 |
(7) | 4749 Bethesda Avenue Retail delivered in the fourth quarter of 2016 and has a signed but not yet commenced lease for 100% of the space. |
(8) | In July 2017, JBG SMITH executed a lease for approximately 80,200 square feet at 4747 Bethesda Avenue to relocate the Company’s headquarters, which brings the asset to 27.9% pre-leased. With this lease, the under construction office assets are 48.3% pre-leased at JBG SMITH’s share. |
![]() | Page 26 |
PROPERTY TABLE - MULTIFAMILY | JUNE 30, 2017 (Unaudited) |
Multifamily Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q2 2016-2017 / YTD 2016-2017 | Year Built / Renovated | Number of Units | Total Square Feet | Multifamily Square Feet | Retail Square Feet | % Leased | Multifamily % Occupied | Retail % Occupied | Annualized Rent (in thousands) | Monthly Rent Per Unit (3) (4) | Monthly Rent Per Square Foot (4) (5) | ||||||||||||||
DC | |||||||||||||||||||||||||||||
Fort Totten Square (6) | Brookland/Fort Totten | 100.0 | % | C | N / N | 2015 / N/A | 345 | 384,316 | 253,652 | 130,664 | 95.7 | % | 87.1 | % | 98.7 | % | $ | 8,254 | $ | 1,812 | $ | 2.46 | |||||||
WestEnd25 | West End | 100.0 | % | C | Y / Y | 2009 / N/A | 283 | 273,264 | 273,264 | — | 98.5 | % | 96.6 | % | — | 11,391 | 3,471 | 3.59 | |||||||||||
The Gale Eckington | H Street/NoMa | 5.0 | % | U | N / N | 2013 / 2017 | 603 | 466,716 | 465,516 | 1,200 | 97.7 | % | 93.2 | % | 100.0 | % | 13,995 | 2,070 | 2.68 | ||||||||||
Atlantic Plumbing | U Street/Shaw | 64.0 | % | U | N / N | 2015 / N/A | 310 | 245,527 | 221,788 | 23,739 | 96.8 | % | 91.0 | % | 100.0 | % | 10,611 | 2,808 | 3.92 | ||||||||||
VA | |||||||||||||||||||||||||||||
RiverHouse Apartments | Pentagon City | 100.0 | % | C | Y / Y | 1960 / 2013 | 1,670 | 1,322,016 | 1,319,354 | 2,662 | 97.5 | % | 95.5 | % | 100.0 | % | $ | 33,289 | $ | 1,737 | $ | 2.20 | |||||||
220 20th Street | Crystal City | 100.0 | % | C | Y / Y | 2009 / N/A | 265 | 271,790 | 269,913 | 1,877 | 97.4 | % | 96.6 | % | 100.0 | % | 7,878 | 2,550 | 2.50 | ||||||||||
2221 South Clark Street | Crystal City | 100.0 | % | C | Y / Y | 1964 / 2016 | 216 | 171,080 | 164,743 | 6,337 | 100.0 | % | 100.0 | % | 100.0 | % | 3,232 | N/A | N/A | ||||||||||
Fairway Apartments* | Reston | 10.0 | % | U | N / N | 1969 / 2005 | 346 | 370,850 | 370,850 | — | 98.1 | % | 96.8 | % | — | 6,445 | 1,603 | 1.50 | |||||||||||
MD | |||||||||||||||||||||||||||||
Falkland Chase-South & West | Downtown Silver Spring | 100.0 | % | C | N / N | 1938 / 2011 | 268 | 222,949 | 222,949 | — | 95.9 | % | 93.5 | % | — | $ | 5,217 | $ | 1,736 | $ | 2.09 | ||||||||
Falkland Chase-North | Downtown Silver Spring | 100.0 | % | C | N / N | 1938 / 1986 | 162 | 119,443 | 119,443 | — | 88.0 | % | 98.8 | % | — | 2,748 | 1,431 | 1.94 | |||||||||||
Galvan | Rockville Pike Corridor | 1.8 | % | U | N / N | 2015 / N/A | 356 | 390,650 | 295,033 | 95,617 | 94.0 | % | 86.5 | % | 96.8 | % | 10,355 | 1,847 | 2.23 | ||||||||||
The Alaire (7) | Rockville Pike Corridor | 18.0 | % | U | N / N | 2010 / N/A | 279 | 266,497 | 251,691 | 14,806 | 97.9 | % | 94.3 | % | 100.0 | % | 5,956 | 1,714 | 1.90 | ||||||||||
The Terano (7) (8) | Rockville Pike Corridor | 1.8 | % | U | N / N | 2015 / N/A | 214 | 195,864 | 183,496 | 12,368 | 95.4 | % | 92.5 | % | 76.2 | % | 4,542 | 1,789 | 2.09 | ||||||||||
Total/Weighted Average | 5,317 | 4,700,962 | 4,411,692 | 289,270 | 96.9 | % | 94.1 | % | 97.3 | % | $ | 123,913 | $ | 1,974 | $ | 2.37 | |||||||||||||
Recently Delivered | |||||||||||||||||||||||||||||
VA | |||||||||||||||||||||||||||||
The Bartlett | Pentagon City | 100.0 | % | C | N / N | 2016 / N/A | 699 | 619,372 | 577,295 | 42,077 | 95.9 | % | 88.6 | % | 100.0 | % | 21,313 | 2,692 | 3.26 | ||||||||||
Operating - Total / Weighted Average | 6,016 | 5,320,334 | 4,988,987 | 331,347 | 96.7 | % | 93.4 | % | 97.7 | % | $ | 145,226 | $ | 2,057 | $ | 2.48 | |||||||||||||
Under Construction | |||||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||||
1221 Van Street | Ballpark/Southeast | 100.0 | % | C | 291 | 226,546 | 202,988 | 23,558 | |||||||||||||||||||||
West Half III | Ballpark/Southeast | 94.2 | % | C | 249 | 211,939 | 211,939 | — | |||||||||||||||||||||
West Half II | Ballpark/Southeast | 94.2 | % | C | 216 | 176,235 | 134,476 | 41,759 | |||||||||||||||||||||
Atlantic Plumbing C-North | U Street/Shaw | 100.0 | % | C | 161 | 145,605 | 134,180 | 11,425 | |||||||||||||||||||||
Atlantic Plumbing C-South | U Street/Shaw | 100.0 | % | C | 95 | 79,926 | 71,877 | 8,049 |
![]() | Page 27 |
PROPERTY TABLE - MULTIFAMILY | JUNE 30, 2017 (Unaudited) |
Multifamily Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q2 2016-2017 / YTD 2016-2017 | Year Built / Renovated | Number of Units | Total Square Feet | Multifamily Square Feet | Retail Square Feet | % Leased | Multifamily % Occupied | Retail % Occupied | Annualized Rent (in thousands) | Monthly Rent Per Unit (3) (4) | Monthly Rent Per Square Foot (4) (5) | ||||||||||||||
MD | |||||||||||||||||||||||||||||
7900 Wisconsin Avenue | Bethesda CBD | 50.0 | % | U | 322 | 359,025 | 338,990 | 20,035 | |||||||||||||||||||||
Under Construction - Total | 1,334 | 1,199,276 | 1,094,450 | 104,826 | |||||||||||||||||||||||||
Total | 7,350 | 6,519,610 | 6,083,437 | 436,173 | |||||||||||||||||||||||||
Near‑Term Development | |||||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||||
965 Florida Avenue | U Street/Shaw | 70.0 | % | U | 433 | 336,092 | 290,296 | 45,796 | |||||||||||||||||||||
Totals at JBG SMITH Share | |||||||||||||||||||||||||||||
Operating assets | 4,232 | 3,660,315 | 3,456,836 | 203,479 | 96.8 | % | 93.9 | % | 99.1 | % | $ | 102,798 | $ | 2,122 | $ | 2.59 | |||||||||||||
Under construction assets | 1,146 | 997,442 | 905,035 | 92,407 | |||||||||||||||||||||||||
Near‑term development assets | 303 | 235,264 | 203,207 | 32,057 |
____________________
* Not Metro-Served.
Note: At 100% share.
(1) | “C” denotes a consolidated interest. “U” denotes an unconsolidated interest. |
(2) | “Y” denotes an asset as same store and “N” denotes an asset as non-same store. |
(3) | Represents multifamily rent divided by occupied multifamily units; retail rent is excluded from this metric. Occupied units may differ from leased units because leased units include leases that have been signed but have not yet commenced. |
(4) | Excludes 2221 South Clark Street (WeLive). |
(5) | Represents multifamily rent divided by occupied multifamily square feet; retail rent and retail square feet are excluded from this metric. Occupied multifamily square footage may differ from leased multifamily square footage because leased multifamily square footage includes leases that have been signed but have not yet commenced. |
(6) | On July 18, 2017, we acquired our real estate venture partner's interest in the asset and increased our ownership from 99.4% to 100.0%. |
(7) | The following assets are subject to ground leases: |
Multifamily Asset | Ground Lease Expiration Date | |
The Alaire | 3/27/2107 | |
The Terano | 8/5/2112 |
(8) | The following asset contains space that is held for development or not otherwise available for lease. Such out-of-service square footage is excluded from area, leased, and occupancy metrics in the above table. |
Multifamily Asset | In-Service | Not Available for Lease | |||
The Terano | 195,864 | 3,904 |
![]() | Page 28 |
PROPERTY TABLE - OTHER | JUNE 30, 2017 (Unaudited) |
Other Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q2 2016-2017 / YTD 2016-2017 | Year Built / Renovated | Total Square Feet (3) | % Leased | % Occupied | Annualized Rent (in thousands) | Annualized Rent Per Square Foot (4) | |||||||
Retail | |||||||||||||||||
DC | |||||||||||||||||
North End Retail | U Street/Shaw | 100.0% | C | N / N | 2015 / N/A | 27,380 | 100.0 | % | 100.0 | % | $ | 1,184 | $ | 43.25 | |||
VA | |||||||||||||||||
Vienna Retail* | Vienna | 100.0% | C | Y / Y | 1981 / N/A | 8,547 | 100.0 | % | 100.0 | % | 383 | 44.83 | |||||
Stonebridge at Potomac Town Center-Phase I* | Prince William County | 10.0% | U | N / N | 2012 / N/A | 462,619 | 93.3 | % | 93.3 | % | 13,210 | 30.59 | |||||
Total / Weighted Average | 498,546 | 93.8 | % | 93.8 | % | $ | 14,777 | $ | 31.59 | ||||||||
Hotel | |||||||||||||||||
VA | |||||||||||||||||
Crystal City Marriott Hotel | Crystal City | 100.0% | C | Y / Y | 266,000 (345 Rooms) | ||||||||||||
Total | 764,546 | ||||||||||||||||
Near‑Term Development | |||||||||||||||||
VA | |||||||||||||||||
Stonebridge at Potomac Town Center-Phase II* | Prince William County | 10.0% | U | 65,342 | |||||||||||||
Totals at JBG SMITH Share | |||||||||||||||||
Operating assets | 348,188 | 96.3 | % | 96.3 | % | $ | 2,888 | $ | 36.51 | ||||||||
Near‑term development assets | 6,534 |
____________________
* Not Metro-Served.
Note: At 100% share.
(1) | “C” denotes a consolidated interest. “U” denotes an unconsolidated interest. |
(2) | “Y” denotes an asset as same store and “N” denotes an asset as non-same store. |
(3) | Figure does not include over 1.0 million square feet of retail within our operating and under construction office portfolio and 436,000 square feet of retail within our operating and under construction multifamily portfolio. |
(4) | Represents annualized rent divided by occupied square feet. Occupied square footage may differ from leased square footage because leased square footage includes leases that have been signed but have not yet commenced. |
![]() | Page 29 |
PROPERTY TABLE - UNDER CONSTRUCTION | JUNE 30, 2017 (Unaudited) |
% Ownership | Estimated Square Feet | % Pre-Leased | Weighted Average Pre-Lease Rent Per Square Foot (2) | Estimated Number of Units | Schedule (1) | ||||||||||
Construction Start Date | Estimated Completion Date | Estimated Stabilization Date | |||||||||||||
Asset | Submarket | ||||||||||||||
Office | |||||||||||||||
DC | |||||||||||||||
1900 N Street | CBD | 100.0% | 271,433 | 29.6 | % | $ | 86.27 | — | Q2 2017 | Q2 2020 | Q4 2022 | ||||
L'Enfant Plaza Office - Southeast | Southwest | 49.0% | 215,185 | 56.4 | % | 53.95 | — | Q1 2017 | Q3 2019 | Q2 2021 | |||||
VA | |||||||||||||||
CEB Tower at Central Place | Rosslyn | 100.0% | 529,997 | 66.6 | % | 65.41 | — | Q4 2014 | Q2 2018 | Q2 2020 | |||||
RTC - West Retail | Reston | 100.0% | 40,025 | 58.8 | % | 68.69 | — | Q4 2015 | Q2 2017 | Q1 2018 | |||||
MD | |||||||||||||||
4747 Bethesda Avenue (3) | Bethesda CBD | 100.0% | 287,183 | — | — | — | Q2 2017 | Q4 2019 | Q2 2021 | ||||||
Total/weighted average | 1,343,823 | 43.0 | % | $ | 66.03 | — | |||||||||
Multifamily | |||||||||||||||
DC | |||||||||||||||
1221 Van Street | Ballpark/Southeast | 100.0% | 226,546 | — | — | 291 | Q4 2015 | Q2 2018 | Q2 2019 | ||||||
West Half III | Ballpark/Southeast | 94.2% | 211,939 | — | — | 249 | Q1 2017 | Q1 2020 | Q1 2021 | ||||||
West Half II | Ballpark/Southeast | 94.2% | 176,235 | — | — | 216 | Q1 2017 | Q1 2020 | Q1 2021 | ||||||
Atlantic Plumbing C – North | U Street/Shaw | 100.0% | 145,605 | — | — | 161 | Q1 2017 | Q4 2019 | Q3 2020 | ||||||
Atlantic Plumbing C – South | U Street/Shaw | 100.0% | 79,926 | — | — | 95 | Q1 2017 | Q4 2019 | Q2 2020 | ||||||
MD | |||||||||||||||
7900 Wisconsin Avenue | Bethesda CBD | 50.0% | 359,025 | — | — | 322 | Q4 2017 | Q2 2020 | Q4 2021 | ||||||
Total | 1,199,276 | — | — | 1,334 | |||||||||||
Under Construction - Total / Weighted Average | 2,543,099 | 1,334 | Q3 2016 | Q3 2019 | Q4 2020 | ||||||||||
![]() | Page 30 |
PROPERTY TABLE - UNDER CONSTRUCTION | JUNE 30, 2017 (Unaudited) |
Under Construction Investment at JBG SMITH Share as of June 30, 2017 (dollars in thousands) | |||||||||||||||
Historical cost | $ | 510,981 | |||||||||||||
Estimated incremental investment | 825,669 | ||||||||||||||
Estimated Total Investment | $ | 1,336,650 | |||||||||||||
Weighted average projected NOI yield on total investment | 7.2 | % | |||||||||||||
Weighted average projected NOI yield on incremental investment | 11.7 | % |
____________________
Note: At 100% share.
(1) | Average dates are weighted by estimated square feet. |
(2) | Based on leases signed as of June 30, 2017 and is calculated as contractual monthly base rent before free rent, plus estimated tenant reimbursements for the month in which the lease commences, multiplied by 12. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to contractual monthly base rent. |
(3) | In July 2017, JBG SMITH executed a lease for approximately 80,200 square feet at 4747 Bethesda Avenue to relocate the Company’s headquarters, which brings the asset to 27.9% pre-leased. With this lease, the under construction office assets are 48.3% pre-leased at JBG SMITH’s share. |
![]() | Page 31 |
PROPERTY TABLE - NEAR-TERM DEVELOPMENT | JUNE 30, 2017 (Unaudited) |
% | Estimated | |||||||||||
Asset | Submarket | Ownership | Square Feet | Units | ||||||||
Multifamily | ||||||||||||
DC | ||||||||||||
965 Florida Avenue | U Street/Shaw | 70.0% | 336,092 | 433 | ||||||||
Other | �� | |||||||||||
VA | ||||||||||||
Stonebridge at Potomac Town Center - Phase II | Prince William County | 10.0% | 65,342 | — | ||||||||
Near-Term Development - Total | 401,434 | 433 | ||||||||||
Near-Term Development Investment at JBG SMITH Share as of June 30, 2017 (dollars in thousands) | ||||||||||||
Historical cost | $ | 2,985 | ||||||||||
Estimated incremental investment | 108,346 | |||||||||||
Estimated Total Investment | $ | 111,331 | ||||||||||
Weighted average projected NOI yield on total investment | 6.4 | % | ||||||||||
Weighted average projected NOI yield on incremental investment | 6.5 | % |
____________________
Note: At 100% share.
![]() | Page 32 |
PROPERTY TABLE - FUTURE DEVELOPMENT | JUNE 30, 2017 (Unaudited) |
dollars in thousands, except per square foot data | Estimated Commercial SF / Multifamily Units to be Replaced (1) | Estimated Capitalized Costs of SF / Units to Be Replaced (3) | Estimated Capitalized Cost of Ground Rent Payments (4) | Estimated Total Investment per SF | ||||||||||||||||||||||||||||||||||||||
Number of Assets | Remaining Acquisition Costs (2) | Estimated Total Investment | ||||||||||||||||||||||||||||||||||||||||
Estimated Potential Development Density (SF) | Historical Cost | |||||||||||||||||||||||||||||||||||||||||
Region | Total | Office | Multifamily | Retail | ||||||||||||||||||||||||||||||||||||||
Owned | ||||||||||||||||||||||||||||||||||||||||||
DC | 8 | 1,595,400 | 636,500 | 938,100 | 20,800 | — | $ | 132,139 | N/A | $ | — | $ | — | $ | 132,139 | $ | 82.82 | |||||||||||||||||||||||||
VA | 25 | 12,919,800 | 3,554,700 | 8,654,300 | 710,800 | 265,966 SF / 15 units | 390,217 | N/A | 54,905 | 2,337 | 447,459 | 34.63 | ||||||||||||||||||||||||||||||
MD | 5 | 1,402,800 | 19,200 | 1,244,900 | 138,700 | 25,119 SF / 162 units | 13,197 | N/A | 28,533 | 416 | 42,146 | 30.04 | ||||||||||||||||||||||||||||||
Total / weighted average | 38 | 15,918,000 | 4,210,400 | 10,837,300 | 870,300 | 291,085 SF / 177 units | $ | 535,553 | N/A | $ | 83,438 | $ | 2,753 | $ | 621,744 | $ | 39.06 | |||||||||||||||||||||||||
Optioned | ||||||||||||||||||||||||||||||||||||||||||
DC | 3 | 1,700,000 | 337,800 | 1,163,900 | 198,300 | — | $ | 10,539 | $ | 43,095 | $ | — | $ | 69,718 | $ | 123,352 | $ | 72.56 | ||||||||||||||||||||||||
VA | 2 | 636,300 | 625,000 | 10,400 | 900 | — | 617 | 21,058 | — | — | 21,675 | 34.06 | ||||||||||||||||||||||||||||||
MD | 1 | — | — | — | — | — | 7,791 | — | — | — | 7,791 | N/A | ||||||||||||||||||||||||||||||
Total / weighted average | 6 | 2,336,300 | 962,800 | 1,174,300 | 199,200 | — | $ | 18,947 | $ | 64,153 | $ | — | $ | 69,718 | $ | 152,818 | $ | 65.41 | ||||||||||||||||||||||||
Total / Weighted Average | 44 | 18,254,300 | 5,173,200 | 12,011,600 | 1,069,500 | 291,085 SF / 177 units | $ | 554,500 | $ | 64,153 | $ | 83,438 | $ | 72,471 | $ | 774,562 | $ | 42.43 |
____________________
Note: At JBG SMITH share.
(1) | Represents management's estimate of the total office and/or retail rentable square feet and multifamily units that would need to be redeveloped to access some of the estimated potential development density, which had an estimated NOI of $1.3 million for the three months ended June 30, 2017. |
(2) | Represents management's estimate of remaining deposits, option payments, and option strike prices as of June 30, 2017. In addition, three owned parcels and two optioned parcels are leasehold interests with estimated annual stabilized ground rent payments totaling $3.6 million in 2017. |
(3) | Capitalized value of estimated commercial square feet / multifamily units to be replaced (included in the value of the operating segment) at a 6.0% capitalization rate. |
(4) | Capitalized value of stabilized annual ground rent payments associated with leasehold assets at a 5.0% capitalization rate. |
![]() | Page 33 |
DEBT BY INSTRUMENT | JUNE 30, 2017 (Unaudited) |
dollars in thousands Asset | % Ownership | Principal Balance | Stated Interest Rate | Interest Rate Hedge | Current Annual Interest Rate (1) | Initial Maturity Date | Extended Maturity Date (2) | ||||
Consolidated | |||||||||||
2011 Crystal Drive (3) | 100.0 | % | $ | 74,338 | 7.30% | Fixed | 7.30 | % | 08/01/17 | 08/01/17 | |
1730 M Street & 1150 17th Street (4) | 100.0 | % | 43,581 | L + 1.25% | — | 2.47 | % | 08/26/17 | 08/26/17 | ||
North End Retail (5) | 100.0 | % | 7,850 | L + 2.25% | — | 3.47 | % | 08/31/17 | 08/31/17 | ||
220 20th Street | 100.0 | % | 67,661 | 4.61% | Fixed | 4.61 | % | 02/01/18 | 02/01/18 | ||
4747 Bethesda Avenue | 100.0 | % | 12,500 | L + 2.75% | — | 3.97 | % | 04/29/18 | 04/29/18 | ||
Fort Totten Square | 100.0 | % | 73,600 | L + 2.15% | Swap | 4.23 | % | 06/09/18 | 12/09/18 | ||
1900 N Street (6) | 100.0 | % | 27,993 | L + 2.50% | Swap | 4.07 | % | 05/08/19 | 05/08/19 | ||
7200 Wisconsin Avenue - Senior | 100.0 | % | 83,130 | L + 1.75% | Cap | 2.97 | % | 12/23/18 | 12/23/19 | ||
7200 Wisconsin Avenue - Mezz | 100.0 | % | 15,000 | L + 7.54% | Cap | 8.76 | % | 12/23/18 | 12/23/19 | ||
1900 N Street (7) | 100.0 | % | 1,467 | 4.00% | Fixed | 4.00 | % | 01/23/18 | 01/23/20 | ||
Courthouse Plaza 1 and 2 | 100.0 | % | 11,000 | L + 1.60% | — | 2.82 | % | 05/10/17 | 05/10/20 | ||
Summit I & II | 100.0 | % | 59,000 | L + 1.70% | Cap | 2.92 | % | 08/04/20 | 08/04/20 | ||
RTC - West | 100.0 | % | 107,540 | L + 2.20% | — | 3.42 | % | 04/12/20 | 04/12/21 | ||
WestEnd25 | 100.0 | % | 100,078 | 4.88% | Fixed | 4.88 | % | 06/01/21 | 06/01/21 | ||
Universal Buildings | 100.0 | % | 185,000 | L + 1.90% | Cap | 3.12 | % | 08/12/19 | 08/12/21 | ||
CEB Tower at Central Place | 100.0 | % | 125,769 | L + 2.45% | Swap | 3.66 | % | 11/07/18 | 11/07/21 | ||
The Bartlett | 100.0 | % | 220,000 | L + 1.70% | — | 2.92 | % | 06/20/22 | 06/20/22 | ||
2121 Crystal Drive | 100.0 | % | 140,397 | 5.51% | Fixed | 5.51 | % | 03/01/23 | 03/01/23 | ||
Falkland Chase - South & West | 100.0 | % | 42,445 | 3.78% | Fixed | 3.78 | % | 06/01/23 | 06/01/23 | ||
Falkland Chase - North | 100.0 | % | 22,775 | L + 2.32% | Cap | 3.54 | % | 06/01/23 | 06/01/23 | ||
1221 Van Street | 100.0 | % | 37,187 | L + 2.65% | — | 3.87 | % | 08/31/20 | 08/31/23 | ||
800 North Glebe Road | 100.0 | % | 107,500 | L + 1.60% | — | 2.82 | % | 06/30/22 | 06/30/24 | ||
2101 L Street | 100.0 | % | 141,960 | 3.97% | Fixed | 3.97 | % | 08/15/24 | 08/15/24 | ||
1233 20th Street | 100.0 | % | 43,229 | 4.38% | Fixed | 4.38 | % | 11/01/19 | 11/01/24 | ||
1215 S. Clark Street, 200 12th Street S., and 251 18th Street S. | 100.0 | % | 89,203 | 7.94% | Fixed | 7.94 | % | 01/01/25 | 01/01/25 | ||
RiverHouse Apartments | 100.0 | % | 307,710 | L + 1.28% | — | 2.50 | % | 04/01/25 | 04/01/25 | ||
Payable to Vornado (8) | 100.0 | % | 115,751 | L + 1.05% | — | 2.27 | % | 01/04/20 | 01/04/20 | ||
100.0 | % | 2,263,664 | |||||||||
Total premium / (discount) | (8,791 | ) | |||||||||
Total Consolidated Indebtedness | $ | 2,254,873 | |||||||||
Total Consolidated Indebtedness Reconciliation | |||||||||||
Mortgages payable, net of deferred financing costs | $ | 2,139,122 | |||||||||
Payable to Vornado | 115,751 | ||||||||||
Total Consolidated Indebtedness | $ | 2,254,873 | |||||||||
![]() | Page 34 |
DEBT BY INSTRUMENT | JUNE 30, 2017 (Unaudited) |
dollars in thousands Asset | % Ownership | Principal Balance | Stated Interest Rate | Interest Rate Hedge | Current Annual Interest Rate (1) | Initial Maturity Date | Extended Maturity Date (2) | ||||
Unconsolidated | |||||||||||
1101 17th Street | 55.0 | % | $ | 31,000 | L + 1.25% | — | 2.47 | % | 01/19/18 | 01/19/18 | |
Galvan | 1.8 | % | 84,113 | L + 2.70% | Cap | 3.92 | % | 12/12/17 | 12/12/18 | ||
Capitol Point - North | 59.0 | % | 10,996 | L + 4.00% | — | 5.22 | % | 03/30/18 | 03/30/19 | ||
The Terano | 1.8 | % | 38,026 | L + 2.10% | Cap | 3.32 | % | 11/08/17 | 11/08/19 | ||
11333 Woodglen Drive | 18.0 | % | 13,430 | L + 1.90% | Swap | 3.52 | % | 01/01/20 | 01/01/20 | ||
The Alaire | 18.0 | % | 39,015 | L + 2.10% | Cap | 3.32 | % | 03/13/18 | 03/13/20 | ||
Atlantic Plumbing | 64.0 | % | 88,475 | L + 2.25% | Swap | 6.04 | % | 09/09/17 | 09/09/20 | ||
Rosslyn Gateway - North, Rosslyn Gateway - South | 18.0 | % | 46,000 | L + 2.00% | Cap | 3.00 | % | 11/17/19 | 11/17/21 | ||
The Foundry | 9.9 | % | 48,213 | L + 1.85% | Cap | 3.07 | % | 12/12/19 | 12/12/21 | ||
L'Enfant Plaza Office - North, L'Enfant Plaza Office - East, L'Enfant Plaza Retail (9) | 49.0 | % | 214,772 | L + 3.65% | Cap | 4.94 | % | 05/08/19 | 05/08/22 | ||
L'Enfant Plaza Office - Southeast | 49.0 | % | 5,100 | L + 3.75% | Cap | 4.97 | % | 05/08/20 | 05/08/22 | ||
Stonebridge at Potomac Town Center | 10.0 | % | 94,962 | L + 1.70% | Swap | 3.25 | % | 12/10/20 | 12/10/22 | ||
The Warner | 55.0 | % | 273,000 | 3.65% | Fixed | 3.65 | % | 06/01/23 | 06/01/23 | ||
7900 Wisconsin Avenue | 50.0 | % | — | 4.82% | Fixed | 4.82 | % | 06/30/25 | 06/30/25 | ||
Fairway Apartments | 10.0 | % | 39,575 | L + 1.60% | Swap | 3.70 | % | 07/01/22 | 07/01/25 | ||
The Gale Eckington | 5.0 | % | 110,636 | L + 1.60% | Swap | 3.56 | % | 07/31/22 | 07/31/25 | ||
Pickett Industrial Park | 10.0 | % | 23,600 | L + 1.45% | Swap | 3.56 | % | 09/04/25 | 09/04/25 | ||
33.1% | 1,160,913 | ||||||||||
Total premium / (discount) | (2,689 | ) | |||||||||
Total Unconsolidated Indebtedness | $ | 1,158,224 | |||||||||
Total Unconsolidated Indebtedness Reconciliation | |||||||||||
Consolidated indebtedness at JBG SMITH Share | $ | 2,254,873 | |||||||||
Unconsolidated indebtedness at JBG SMITH Share | 383,051 | ||||||||||
Total consolidated and unconsolidated indebtedness at JBG SMITH Share | 2,637,924 | ||||||||||
Adjustments related to transaction, at JBG SMITH share after premium / discount: | |||||||||||
1730 M Street & 1150 17th Street | (43,495 | ) | |||||||||
Payable to Vornado | (115,751 | ) | |||||||||
Unsecured revolving line of credit | 115,751 | ||||||||||
Unsecured Term Loan A-1 | 50,000 | ||||||||||
Adjusted Consolidated and Unconsolidated Indebtedness at JBG SMITH Share | $ | 2,644,429 |
See footnotes on page 36.
![]() | Page 35 |
DEBT BY INSTRUMENT | JUNE 30, 2017 (Unaudited) |
Footnotes
(1) | June 30, 2017 LIBOR of 1.22% applied to loans which are denoted as floating (no hedge) or floating with a cap. |
(2) | Represents the maturity date based on execution of all extension options. Many of these extensions are subject to lender covenant tests. |
(3) | This loan was repaid on July 27, 2017. |
(4) | This loan was repaid on July 17, 2017. |
(5) | This loan was repaid on August 3, 2017. |
(6) | This loan is collateralized by a portion of the 1900 N Street assemblage referred to as 1920 N Street. The remaining portion of the asset is encumbered by a separate loan. This loan was repaid on August 11, 2017. |
(7) | This loan is collateralized by a portion of the 1900 N Street assemblage referred to as 1253 20th Street. The remaining portion of the asset is encumbered by a separate loan. This loan was repaid on August 11, 2017. |
(8) | The mortgage loan is secured by Bowen Building ($115.8 million principal balance). The mortgage was assigned to JBG SMITH and the note was repaid on July 18, 2017 with new financing proceeds from the JBG SMITH credit facility. |
(9) | The base rate for the loan is three-month LIBOR, which was 1.29% as of June 26, 2017. |
![]() | Page 36 |
CONSOLIDATED REAL ESTATE VENTURES | JUNE 30, 2017 (Unaudited) |
Asset Type | City | Submarket | % Ownership | Total Square Feet | |||
Akridge | |||||||
West Half III | Multifamily | Washington, D.C. | Ballpark/Southeast | 94.2 | % | 211,939 | |
West Half II | Multifamily | Washington, D.C. | Ballpark/Southeast | 94.2 | % | 176,235 | |
388,174 | |||||||
Total Consolidated Real Estate Ventures | 388,174 |
____________________
Note: At 100% share.
![]() | Page 37 |
UNCONSOLIDATED REAL ESTATE VENTURES | JUNE 30, 2017 (Unaudited) |
Asset Type | City | Submarket | % Ownership | Total Square Feet | |||
Landmark | |||||||
L'Enfant Plaza Office - East | Office | Washington, D.C. | Southwest | 49.0 | % | 437,504 | |
L'Enfant Plaza Office - North | Office | Washington, D.C. | Southwest | 49.0 | % | 305,157 | |
L'Enfant Plaza Office - Southeast | Office | Washington, D.C. | Southwest | 49.0 | % | 215,185 | |
L'Enfant Plaza Retail | Office | Washington, D.C. | Southwest | 49.0 | % | 148,623 | |
Rosslyn Gateway - North | Office | Arlington, VA | Rosslyn | 18.0 | % | 145,348 | |
Rosslyn Gateway - South | Office | Arlington, VA | Rosslyn | 18.0 | % | 106,711 | |
NoBe II Office | Office | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 136,819 | |
11333 Woodglen Drive | Office | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 63,875 | |
Galvan | Multifamily | Rockville, MD | Rockville Pike Corridor | 1.8 | % | 390,650 | |
The Alaire | Multifamily | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 266,497 | |
The Terano | Multifamily | Rockville, MD | Rockville Pike Corridor | 1.8 | % | 195,864 | |
NoBe II Land | Future Development | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 589,000 | |
Rosslyn Gateway - North Land | Future Development | Arlington, VA | Rosslyn | 18.0 | % | 311,000 | |
Rosslyn Gateway - South Land | Future Development | Arlington, VA | Rosslyn | 18.0 | % | 498,500 | |
Capitol Point - North | Future Development | Washington, D.C. | NoMa | 59.0 | % | 409,100 | |
Capitol Point - North Option | Future Development | Washington, D.C. | NoMa | 59.0 | % | 439,000 | |
L'Enfant Plaza Office - Center | Future Development | Washington, D.C. | Southwest | 49.0 | % | 350,000 | |
Courthouse Metro Land | Future Development | Arlington, VA | Clarendon/Courthouse | 18.0 | % | 286,500 | |
Courthouse Metro Land - Option | Future Development | Arlington, VA | Clarendon/Courthouse | 18.0 | % | 62,500 | |
5615 Fishers Drive | Future Development | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 106,500 | |
12511 Parklawn Drive | Future Development | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 6,500 | |
Woodglen | Future Development | Rockville, MD | Rockville Pike Corridor | 18.0 | % | — | |
Twinbrook | Future Development | Rockville, MD | Rockville Pike Corridor | 18.0 | % | — | |
5,470,833 | |||||||
CBREI Venture | |||||||
Pickett Industrial Park | Office | Alexandria, VA | Eisenhower Avenue | 10.0 | % | 246,145 | |
The Foundry | Office | Washington, DC | Georgetown | 9.9 | % | 232,745 | |
The Gale Eckington | Multifamily | Washington, DC | H Street/NoMa | 5.0 | % | 466,716 | |
Fairway Apartments | Multifamily | Reston, VA | Reston | 10.0 | % | 370,850 | |
Atlantic Plumbing | Multifamily | Washington, DC | U Street/Shaw | 64.0 | % | 245,527 | |
Stonebridge at Potomac Town Center - Phase I | Other | Woodbridge, VA | Prince William County | 10.0 | % | 462,619 | |
Stonebridge at Potomac Town Center - Phase II | Other | Woodbridge, VA | Prince William County | 10.0 | % | 65,342 | |
Stonebridge at Potomac Town Center - Phase III | Future Development | Woodbridge, VA | Prince William County | 10.0 | % | 209,800 | |
Fairway Land | Future Development | Reston, VA | Reston | 10.0 | % | 526,200 | |
2,825,944 |
![]() | Page 38 |
UNCONSOLIDATED REAL ESTATE VENTURES | JUNE 30, 2017 (Unaudited) |
Asset Type | City | Submarket | % Ownership | Total Square Feet | |||
Canadian Pension Plan Investment Board | |||||||
The Warner | Office | Washington, DC | East End | 55.0 | % | 593,153 | |
1101 17th Street | Office | Washington, DC | CBD | 55.0 | % | 215,674 | |
808,827 | |||||||
Forest City | |||||||
Waterfront Station | Future Development | Washington, DC | Southwest | 2.5 | % | 662,600 | |
Brandywine | |||||||
1250 1st Street | Future Development | Washington, DC | NoMa | 30.0 | % | 265,800 | |
50 Patterson Street | Future Development | Washington, DC | NoMa | 30.0 | % | 142,200 | |
51 N Street | Future Development | Washington, DC | NoMa | 30.0 | % | 177,500 | |
585,500 | |||||||
Berkshire Group | |||||||
7900 Wisconsin Avenue | Multifamily | Bethesda, MD | Bethesda CBD | 50.0 | % | 359,025 | |
MRP Realty | |||||||
965 Florida Avenue | Multifamily | Washington, DC | U Street/Shaw | 70.0 | % | 336,092 | |
JP Morgan | |||||||
Investment Building | Office | Washington, DC | East End | 5.0 | % | 401,520 | |
Total Unconsolidated Real Estate Ventures | 11,450,341 | ||||||
____________________
Note: At 100% share.
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DEFINITIONS | JUNE 30, 2017 |
Annualized Rent
“Annualized rent” is defined as (i) for office and other assets, or the retail component of a mixed-use asset, the in-place monthly base rent before free rent, plus tenant reimbursements as of June 30, 2017, multiplied by 12, with triple net leases converted to a gross basis by adding estimated tenant reimbursements to monthly base rent, and (ii) for multifamily assets, or the multifamily component of a mixed-use asset, the in-place monthly base rent before free rent as of June 30, 2017, multiplied by 12. Annualized rent excludes rent from signed but not yet commenced leases.
Annualized Rent Per Square Foot
“Annualized rent per square foot” is defined as (i) for office assets, annualized office rent divided by occupied office square feet; annualized retail rent and retail square feet are excluded from this metric, (ii) for multifamily assets, monthly multifamily rent divided by occupied multifamily square feet; annualized retail rent and retail square feet are excluded from this metric, and (iii) for other assets, annualized rent divided by occupied square feet. Occupied square footage may differ from leased square footage because leased square footage includes leases that have been signed but have not yet commenced.
Estimated Potential Development Density
‘‘Estimated potential development density’’ reflects management’s estimate of developable gross square feet based on our current business plans with respect to real estate owned or controlled as of June 30, 2017.
Free Rent
‘‘Free rent’’ means the amount of base rent and operating expenses that are abated according to the applicable lease agreement(s).
Future Development
“Future development” refers to assets that are development opportunities on which we do not intend to commence construction within 18 months of June 30, 2017 where we (i) own land or control the land through a ground lease or (ii) are under a long-term conditional contract to purchase, or enter into a leasehold interest with respect to land.
Historical Cost, Estimated Incremental Investment and Total Investment
“Historical cost” is a non-GAAP measure which includes the total historical cost incurred by JBG and Vornado with respect to the development of an asset, including any acquisition costs, hard costs, soft costs, tenant improvements, leasing costs and other similar costs, but excluding any financing costs and ground rent expenses, incurred as of June 30, 2017. Historical Cost does not include a fair value adjustment to the JBG Assets that is required by GAAP as a result of the combination transaction. The purchase price allocation for the JBG Assets is in process and has not been finalized.
“Estimated incremental investment” means management’s estimate of the remaining cost to be incurred in connection with the development of an asset as of June 30, 2017, including all remaining acquisition costs, hard costs, soft costs, tenant improvements, leasing costs and other similar costs to develop and stabilize the asset but excluding any financing costs and ground rent expenses.
“Total investment” means, with respect to the development of an asset, the sum of the historical cost in such asset and the estimated incremental investment for such asset.
Estimated incremental investment and total investment may differ substantially from our estimates due to numerous factors, including unanticipated expenses, delays in the estimated start and/or completion date, changes in design and other contingencies.
Metro-Served
“Metro-served” means locations, submarkets or assets that are generally nearby and within walking distance of a Metro station, defined as being within 0.5 miles of an existing or planned Metro station.
Monthly Rent Per Unit
For multifamily assets, represents monthly multifamily rent for June 30, 2017 divided by occupied units; retail rent is excluded from this metric.
Near-Term Development
‘‘Near-term development’’ refers to assets that have substantially completed the entitlement process and on which we intend to commence construction within 18 months following June 30, 2017, subject to market conditions.
Percent Leased
‘‘Percent leased’’ is based on leases signed as of June 30, 2017, and is calculated as total rentable square feet less rentable square feet available for lease divided by total rentable square feet expressed as a percentage. Out-of-service square feet are excluded from this calculation.
Percent Pre-Leased
‘‘Percent pre-leased’’ is based on leases signed as of June 30, 2017, and is calculated as the estimated rentable square feet leased divided by estimated total rentable square feet expressed as a percentage.
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DEFINITIONS | JUNE 30, 2017 |
Percent Occupied
‘‘Percent occupied’’ is based on occupied rentable square feet/units as of June 30, 2017, and is calculated as (i) for office and retail space, total rentable square feet less unoccupied square feet divided by total rentable square feet, (ii) for multifamily space, total units less unoccupied units divided by total units, expressed as a percentage. Out-of-service square feet are excluded from this calculation.
Property Operating Income, NOI and Projected NOI Yield
“Property operating income” is a non-GAAP financial measure management uses to measure the operating performance of our assets and consists of property-related revenue (which includes base rent, tenant expense recoveries and other operating revenue) less operating expenses and related party management fees. In addition to property operating income, we also report the non-GAAP NOI, which excludes straight-line rent, related party management fees and certain other non-cash adjustments. Annualized NOI represents NOI for the three months ended June 30, 2017 multiplied by four. Management believes Annualized NOI provides useful information in understanding JBG SMITH’s financial performance over a 12-month period. However, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12-month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this supplemental information package. Annualized NOI and NOI are only estimates of JBG SMITH’s financial performance over a period of 12 months, and there can be no assurance that the annualized NOI or NOI shown will reflect JBG SMITH’s actual results of operations over any 12-month period. We also report pro forma annualized NOI which includes signed but not yet commenced leases and incremental revenue from recently delivered assets. Management uses each of these measures as supplemental performance measures for its assets and believes they provide useful information to investors because they reflect only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, property operating income and NOI are considered by many in the real estate industry to be useful starting points for determining the value of a real estate asset or group of assets.
However, because each of these measures excludes depreciation and amortization and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of these measures of the operating performance of our assets is limited. Moreover, other real estate companies may calculate these measures differently from how we do, and they may not be comparable to other real estate companies’ measures. These measures should be considered only as supplements to net operating income (loss) (computed in accordance with GAAP) as a measure of the operating performance of our assets.
This supplemental information package also contains management’s projections of NOI yield for our under construction and near-term development assets, which are based on management’s estimates of property-related revenue and operating expenses for each asset. Such estimates are inherently uncertain and represent management’s plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. The property-related revenues and operating expenses for our assets may differ materially from the estimates included in this supplemental information package. In addition, the projected allocation of company-level property management overhead, general and administrative costs and interest expense to assets under construction and near-term development assets is complex, impractical to develop, and may not be meaningful. Management’s projections of NOI yield are not projections of JBG SMITH’s overall financial performance or cash flow, and there can be no assurance that the projected NOI yield set forth in this supplemental information package will be achieved. No reconciliation of projected NOI yield to the most directly comparable GAAP measure is included in this supplemental information package because we are unable to quantify certain amounts that would be required to be included in the comparable GAAP financial measures without unreasonable efforts because such data is not currently available or cannot be currently estimated with confidence. Accordingly, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
“Projected NOI yield” means our estimated stabilized NOI reported as a percentage of 1) estimated total investment and 2) estimated incremental investment. Actual initial full year stabilized NOI yield may vary from the projected NOI Yield based on the actual total investment to complete the asset and its actual initial full year stabilized NOI, and there can be no assurance that we will achieve the projected NOI yields described in this supplemental information package.
Recently Delivered
“Recently delivered” refers to assets that have been delivered within the 12 months ended June 30, 2017.
Same Store and Non-Same Store
“Same store” refers to the pool of assets that were owned by JBG SMITH or its predecessor and stabilized for the entirety of both periods being compared, except for assets for which significant redevelopment, renovation, or repositioning occurred during either of the periods being compared. No JBG Assets are included in the same store pool.
“Non-same store” refers to all assets excluded from the same store pool.
Second Generation Lease
“Second generation lease” is a lease on space that has been vacant for less than nine months.
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DEFINITIONS | JUNE 30, 2017 |
Signed But Not Yet Commenced Leases
“Signed but not yet commenced leases” means leases for assets in JBG SMITH’s portfolio that, as of June 30, 2017, have been executed but for which the contractual lease term had not yet begun, and no rental payments had yet been charged to the tenant.
Square Feet
‘‘Square feet’’ or ‘‘SF’’ refers to the area that can be rented to tenants, defined as (i) for office and other assets, rentable square footage defined in the current lease and for vacant space the rentable square footage defined in the previous lease for that space, (ii) for multifamily assets, management’s estimate of approximate rentable square feet, (iii) for the assets under construction and the near-term development assets, management’s estimate of actual rentable square feet based on current design plans as of June 30, 2017, or (iv) for the future development assets, management’s estimate of developable gross square feet based on its current business plans with respect to real estate owned or controlled as of June 30, 2017.
Stabilized and Stabilization
‘‘Stabilized and stabilization’’ refers to office, multifamily or retail assets that are at or above 90% leased or have been in service assets collecting rent for longer than 12 months as of June 30, 2017.
Under Construction
‘‘Under construction’’ refers to assets that were under construction as of June 30, 2017.
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