(State or other jurisdiction of incorporation or organization) | (Commission file number) | (I.R.S. Employer Identification No.) | ||
(Zip Code) | ||||
(Address of principal executive offices) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
JBG SMITH PROPERTIES | ||||
February 25, 2020 | By: | /s/ STEPHEN W. THERIOT | ||
Name: Stephen W. Theriot | ||||
Title: Chief Financial Officer | ||||
(Principal Financial and Accounting Officer) |
• | Executed leases with Amazon for approximately 857,000 square feet, including a new full building lease at 2100 Crystal Drive for 272,000 square feet with occupancy expected in 2020. |
• | Executed purchase and sale agreements with Amazon for land with 4.1 million square feet of estimated potential development density in National Landing. |
• | Received final approvals from Arlington County for the first 2.15 million square feet of space for Amazon’s new headquarters in National Landing. Construction commenced in January 2020. |
• | Leased over 2.1 million square feet of commercial space, bringing occupancy to 88.2% in our operating commercial portfolio. |
• | Proactively attracted tenant demand to National Landing, increasing our total commercial leased percentage from 88.3% to 91.5% with an average mark-to-market of positive 7.0% and net effective rent growth of 6.5%. |
• | Leased over 191,400 square feet of retail across the portfolio. In National Landing, leased 32,000 square feet of placemaking retail at Central District Retail, which was 75.2% pre-leased at the end of 2019. |
• | Achieved in service multifamily occupancy of 93.3%, and successfully completed West Half in the third quarter of 2019, which was 30.2% leased at the end of 2019. |
• | Completed five Under Construction assets on or ahead of schedule and delivered all below budget, including: 500 L’Enfant Plaza, West Half, 4747 Bethesda Avenue, Atlantic Plumbing C, and 1900 N Street, |
• | We expect these five assets will deliver approximately $48 million of annualized NOI with a weighted average stabilization date of the second quarter of 2021. |
• | Actively advancing entitlement and design of 10.1 million square feet (69%) of our Future Development Pipeline (excluding the land held for sale to Amazon). |
• | Submitted entitlements for 4.4 million square feet of space in National Landing, which represents approximately two-thirds of our Future Development Pipeline in the submarket. |
• | Made significant progress on entitling and designing the next tranche of multifamily development in National Landing, totaling approximately $1.4 billion of new investment and approximately 2,900 multifamily units. |
• | As master developer of the planned Virginia Tech Innovation Campus site, we advanced the overall plan in coordination with the directly adjacent 2.0 million square feet of development density we own in National Landing. |
• | Closed on the sale or recapitalization of four assets, totaling $426 million, including the Metropolitan Park land sites sold to Amazon for approximately $155 million (approximately $11 million above the estimated contract value) in January 2020. |
• | Executed a reverse like-kind exchange (with proceeds from the first Amazon land sale) for the acquisition of F1RST Residences, a multifamily asset in the Ballpark submarket of Washington, DC. |
• | Issued 11.5 million shares at $42.00 per share, raising net proceeds of approximately $472 million in our first equity offering. |
• | Recast our $1 billion credit facility in January 2020, extending the term for five years and reducing the interest rate. |
• | Raised capital and accumulated balance sheet capacity to develop 1900 Crystal Drive and to pursue future acquisition and development opportunities. |
• | Adjusted for the $155 million of proceeds from the land sale to Amazon in January 2020, our pro forma Net Debt/Adjusted EBITDA was 5.3x. |
• | Raised over $104 million for the Washington Housing Initiative Impact Pool (including a $10.2 million commitment from JBG SMITH), which completed its first financing of a 326-unit residential building in Alexandria, Virginia in January 2020. Identified a pipeline to potentially preserve over 6,000 units of workforce affordable housing. |
• | Received a 4-star rating from GRESB for the second year in a row, ranking in the top quartile of mixed-use office and multifamily portfolios. |
• | Net income attributable to common shareholders was $34.4 million, or $0.25 per diluted share. |
• | Funds From Operations (“FFO”) attributable to common shareholders was $30.4 million, or $0.23 per diluted share. |
• | Core Funds From Operations (“Core FFO”) attributable to common shareholders was $52.8 million, or $0.39 per diluted share. |
• | Net income attributable to common shareholders was $65.6 million, or $0.48 per diluted share. |
• | FFO attributable to common shareholders was $150.6 million, or $1.15 per diluted share. |
• | Core FFO attributable to common shareholders was $210.2 million, or $1.61 per diluted share. |
• | Annualized Net Operating Income (“NOI”) for the three months ended December 31, 2019 was $328.2 million, compared to $313.2 million for the three months ended September 30, 2019, at our share. |
• | The operating commercial portfolio was 91.4% leased and 88.2% occupied as of December 31, 2019, compared to 90.2% and 86.8% as of September 30, 2019, at our share. |
• | The operating multifamily portfolio was 89.5% leased and 87.2% occupied as of December 31, 2019, compared to 96.5% and 94.9% as of September 30, 2019, at our share. The decreases are due in part to the movement of West Half into our recently delivered operating assets during the quarter. The in service operating multifamily portfolio was 95.1% leased and 93.3% occupied as of December 31, 2019. |
• | Executed approximately 724,000 square feet of office leases at our share in the fourth quarter, comprising approximately 173,000 square feet of new leases and approximately 551,000 square feet of second generation |
• | Executed approximately 2.1 million square feet of commercial leases at our share during the year ended December 31, 2019, comprising approximately 938,000 square feet of new leases and approximately 1.2 million square feet of second generation leases, which generated a 9.7% rental rate increase on a GAAP basis and a 3.5% rental rate increase on a cash basis. The new leases include leases totaling approximately 857,000 square feet to date at five office buildings in our National Landing portfolio executed by Amazon.com, Inc. ("Amazon") in conjunction with the establishment of their additional headquarters, which is inclusive of 272,000 square feet of office space executed in December at 2100 Crystal Drive in National Landing. |
• | Same Store Net Operating Income (“SSNOI”) at our share increased 1.2% to $74.9 million for the three months ended December 31, 2019, compared to $74.1 million for the three months ended December 31, 2018. SSNOI decreased 7.0% to $292.3 million for the year ended December 31, 2019, compared to $314.1 million for the year ended December 31, 2018. The increase in SSNOI for the three months ended December 31, 2019 is largely attributable to decreased ground rent expense. The decrease in SSNOI for the year ended December 31, 2019 is largely attributable to increased rental abatements and rent reductions, and an increase in assumed lease liability payments. The lease renewals we executed in 2017 and 2018 have reduced our NOI in 2019, primarily due to free rent associated with these early renewals. Because (i) the concessions in our commercial portfolio have burned off to stabilized levels, (ii) we delivered Under Construction assets on or ahead of schedule, and (iii) we acquired F1RST Residences, we expect NOI to rebound in 2020. We do not, however, expect to see this NOI increase immediately flow through to Core FFO in 2020, primarily due to the reduction in capitalized interest from the delivery of our Under Construction assets. As these assets stabilize, we expect the increase in earnings to offset the increase in interest expense which will increase Core FFO. |
• | During the quarter ended December 31, 2019, there were seven assets under construction (four commercial assets and three multifamily assets), consisting of approximately 821,000 square feet and 833 units, both at our share. |
• | During the quarter ended December 31, 2019, we completed 4747 Bethesda, Atlantic Plumbing C and 1900 N Street, all delivered on or ahead of schedule and below budget. |
• | As of December 31, 2019, there were no assets in near-term development. |
• | As of December 31, 2019, there were 40 future development assets consisting of 18.7 million square feet of estimated potential density at our share, including the 4.1 million square feet held for sale to Amazon. |
• | We had $1.6 billion of debt ($2.0 billion including our share of debt of unconsolidated real estate ventures) as of December 31, 2019. Of the $2.0 billion of debt at our share, approximately 75% was fixed-rate and rate caps were in place for approximately 33% of our floating rate debt. |
• | The weighted average interest rate of our debt at share was 4.03% as of December 31, 2019. |
• | As of December 31, 2019, our total enterprise value was approximately $8.1 billion, comprising 149.3 million common shares and units valued at $6.2 billion (calculated using our closing share price as of February 21, 2020) and debt (net of premium / (discount) and deferred financing costs) at our share of $1.9 billion, less cash and cash equivalents at our share of $136.2 million. |
• | As of December 31, 2019, we had $126.4 million of cash and cash equivalents ($136.2 million of cash and cash equivalents at our share), $898.5 million of capacity under our credit facility, and an unencumbered multifamily borrowing base of approximately $811.0 million, including our Under Construction multifamily assets. |
• | Net Debt to Annualized Adjusted EBITDA at our share for the three months and year ended December 31, 2019 was 5.8x for both periods and our Net Debt / Total Enterprise Value was 22.5% as of December 31, 2019 (calculated using our closing share price as of February 21, 2020). Pro forma Net Debt to Annualized Adjusted EBITDA at our share would have been 5.3x for the three months and year ended December 31, 2019, and pro forma Net Debt / Total Enterprise Value would have been 21.0% as of December 31, 2019, which includes the $155.0 million of net proceeds from the sale of Metropolitan Park in January 2020. |
• | Acquired F1RST Residences, a 325-unit multifamily asset in the Ballpark submarket of Washington, DC with approximately 21,000 square feet of street level retail, for a purchase price of approximately $160.5 million. The multifamily portion of the building is 91.7% occupied as of December 31, 2019. We used F1RST Residences as a replacement property in a like-kind exchange for the proceeds from the sale of Metropolitan Park to Amazon, which was completed in January 2020. |
• | Sold a 50.0% interest in a real estate venture that owns Central Place Tower, a 552,000 square foot commercial asset located in Arlington, Virginia. |
• | Sold Vienna Retail, an 8,600 square foot commercial asset located in Vienna, Virginia, for $7.4 million. |
• | Drew $200.0 million under the revolving credit facility, which was repaid in 2020. |
• | Sold Metropolitan Park to Amazon for $155.0 million, which represents an $11.0 million increase over the previously estimated contract value resulting from an increase in the approved development density on the sites. |
• | Amended our credit facility to extend the maturity date of the revolving credit facility to January 2025. |
• | Entered into a mortgage loan with a principal balance of $175.0 million collateralized by 4747 and 4749 Bethesda Avenue. |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
in thousands | December 31, 2019 | December 31, 2018 | |||||
ASSETS | |||||||
Real estate, at cost: | |||||||
Land and improvements | $ | 1,240,455 | $ | 1,371,874 | |||
Buildings and improvements | 3,880,973 | 3,722,930 | |||||
Construction in progress, including land | 654,091 | 697,930 | |||||
5,775,519 | 5,792,734 | ||||||
Less accumulated depreciation | (1,119,571 | ) | (1,051,875 | ) | |||
Real estate, net | 4,655,948 | 4,740,859 | |||||
Cash and cash equivalents | 126,413 | 260,553 | |||||
Restricted cash | 16,103 | 138,979 | |||||
Tenant and other receivables, net | 52,941 | 46,568 | |||||
Deferred rent receivable, net | 169,721 | 143,473 | |||||
Investments in unconsolidated real estate ventures | 543,026 | 322,878 | |||||
Other assets, net | 253,687 | 264,994 | |||||
Assets held for sale | 168,412 | 78,981 | |||||
TOTAL ASSETS | $ | 5,986,251 | $ | 5,997,285 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | 1,125,777 | $ | 1,838,381 | |||
Revolving credit facility | 200,000 | — | |||||
Unsecured term loans, net | 297,295 | 297,129 | |||||
Accounts payable and accrued expenses | 157,702 | 130,960 | |||||
Other liabilities, net | 206,042 | 181,606 | |||||
Liabilities related to assets held for sale | — | 3,717 | |||||
Total liabilities | 1,986,816 | 2,451,793 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 612,758 | 558,140 | |||||
Total equity | 3,386,677 | 2,987,352 | |||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ | 5,986,251 | $ | 5,997,285 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
REVENUE | |||||||||||||||
Property rentals | $ | 127,571 | $ | 129,048 | $ | 493,273 | $ | 513,447 | |||||||
Third-party real estate services, including reimbursements | 29,121 | 26,421 | 120,886 | 98,699 | |||||||||||
Other revenue | 8,185 | 7,786 | 33,611 | 32,036 | |||||||||||
Total revenue | 164,877 | 163,255 | 647,770 | 644,182 | |||||||||||
EXPENSES | |||||||||||||||
Depreciation and amortization | 50,004 | 67,556 | 191,580 | 211,436 | |||||||||||
Property operating | 37,535 | 40,076 | 137,622 | 148,081 | |||||||||||
Real estate taxes | 18,252 | 17,030 | 70,493 | 71,054 | |||||||||||
General and administrative: | |||||||||||||||
Corporate and other | 11,934 | 8,512 | 46,822 | 33,728 | |||||||||||
Third-party real estate services | 26,910 | 25,274 | 113,495 | 89,826 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Transaction and other costs | 13,307 | 15,572 | 23,235 | 27,706 | |||||||||||
Total expenses | 169,901 | 183,138 | 625,409 | 617,861 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Income (loss) from unconsolidated real estate ventures, net | (2,042 | ) | 23,991 | (1,395 | ) | 39,409 | |||||||||
Interest and other income, net | 3,022 | 9,991 | 5,385 | 15,168 | |||||||||||
Interest expense | (11,831 | ) | (18,184 | ) | (52,695 | ) | (74,447 | ) | |||||||
Gain on sale of real estate | 57,870 | 6,394 | 104,991 | 52,183 | |||||||||||
Loss on extinguishment of debt | (3,916 | ) | (617 | ) | (5,805 | ) | (5,153 | ) | |||||||
Reduction of gain on bargain purchase | — | — | — | (7,606 | ) | ||||||||||
Total other income (expense) | 43,103 | 21,575 | 50,481 | 19,554 | |||||||||||
INCOME BEFORE INCOME TAX (EXPENSE) BENEFIT | 38,079 | 1,692 | 72,842 | 45,875 | |||||||||||
Income tax (expense) benefit | 613 | (698 | ) | 1,302 | 738 | ||||||||||
NET INCOME | 38,692 | 994 | 74,144 | 46,613 | |||||||||||
Net income attributable to redeemable noncontrolling interests | (4,302 | ) | (178 | ) | (8,573 | ) | (6,710 | ) | |||||||
Net (income) loss attributable to noncontrolling interests | — | (106 | ) | — | 21 | ||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 34,390 | $ | 710 | $ | 65,571 | $ | 39,924 | |||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||||||
Basic | $ | 0.25 | $ | (0.01 | ) | $ | 0.48 | $ | 0.31 | ||||||
Diluted | $ | 0.25 | $ | (0.01 | ) | $ | 0.48 | $ | 0.31 | ||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING : | |||||||||||||||
Basic | 134,129 | 120,917 | 130,687 | 119,176 | |||||||||||
Diluted | 134,129 | 120,917 | 130,687 | 119,176 |
dollars in thousands | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
EBITDA, EBITDAre and Adjusted EBITDA | |||||||||||||||
Net income | $ | 38,692 | $ | 994 | $ | 74,144 | $ | 46,613 | |||||||
Depreciation and amortization expense | 50,004 | 67,556 | 191,580 | 211,436 | |||||||||||
Interest expense (1) | 11,831 | 18,184 | 52,695 | 74,447 | |||||||||||
Income tax expense (benefit) | (613 | ) | 698 | (1,302 | ) | (738 | ) | ||||||||
Unconsolidated real estate ventures allocated share of above adjustments | 10,050 | 10,253 | 36,877 | 42,016 | |||||||||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (2 | ) | (182 | ) | (7 | ) | (53 | ) | |||||||
EBITDA (2) | $ | 109,962 | $ | 97,503 | $ | 353,987 | $ | 373,721 | |||||||
Gain on sale of real estate | (57,870 | ) | (6,394 | ) | (104,991 | ) | (52,183 | ) | |||||||
Gain on sale from unconsolidated real estate ventures | — | (20,554 | ) | (335 | ) | (36,042 | ) | ||||||||
EBITDAre (2) | $ | 52,092 | $ | 70,555 | $ | 248,661 | $ | 285,496 | |||||||
Transaction and other costs (3) | 13,307 | 15,572 | 23,235 | 27,706 | |||||||||||
Loss on extinguishment of debt, net of noncontrolling interests | 3,916 | 617 | 5,805 | 5,029 | |||||||||||
Reduction of gain on bargain purchase | — | — | — | 7,606 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Losses and distributions in excess of our investment in unconsolidated real estate venture (4) | (518 | ) | (7,374 | ) | (7,356 | ) | (13,676 | ) | |||||||
Unconsolidated real estate ventures allocated share of above adjustments | (1,345 | ) | 1,542 | (1,345 | ) | 1,572 | |||||||||
Lease liability adjustments | (1,829 | ) | (7,422 | ) | 162 | (9,965 | ) | ||||||||
Adjusted EBITDA (2) | $ | 77,582 | $ | 82,608 | $ | 311,324 | $ | 339,798 | |||||||
Net Debt to Annualized Adjusted EBITDA (5) (6) | 5.8x | 6.5x | 5.8x | 6.3x | |||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Net Debt (at JBG SMITH Share) | |||||||||||||||
Consolidated indebtedness (7) | $ | 1,620,001 | $ | 2,130,704 | |||||||||||
Unconsolidated indebtedness (7) | 329,056 | 298,588 | |||||||||||||
Total consolidated and unconsolidated indebtedness | 1,949,057 | 2,429,292 | |||||||||||||
Less: cash and cash equivalents | 136,200 | 273,611 | |||||||||||||
Net Debt (at JBG SMITH Share) | $ | 1,812,857 | $ | 2,155,681 | |||||||||||
$ | (0.14 | ) |
(1) | Interest expense includes the amortization of deferred financing costs and the ineffective portion of any interest rate swaps or caps, net of capitalized interest. |
(2) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million and $6.5 million for the three months and year ended December 31, 2018). |
(3) | Includes fees and expenses incurred for the relocation of our corporate headquarters, demolition costs, fees and expenses incurred in connection with the Formation Transaction (including amounts incurred for transition services provided by our former parent, integration costs and severance costs), pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. |
(4) | As of June 30, 2018, we suspended the equity method of accounting for our investment in the real estate venture that owns 1101 17th Street as our investment had been reduced to zero and we did not have an obligation to provide further financial support to the venture. All subsequent distributions from the venture have been recognized as income, which will continue until our share of unrecorded earnings and contributions exceed the cumulative excess distributions previously recognized. |
(5) | Adjusted EBITDA for the three months ended December 31, 2019 and 2018 is annualized by multiplying by four. |
(6) | Pro forma Net Debt to Annualized Adjusted EBITDA would have been 5.3x for the three months and year ended December 31, 2019, which includes the $155.0 million of net proceeds from the sale of Metropolitan Park in January 2020. |
(7) | Net of premium/discount and deferred financing costs. |
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
FFO and Core FFO | |||||||||||||||
Net income attributable to common shareholders | $ | 34,390 | $ | 710 | $ | 65,571 | $ | 39,924 | |||||||
Net income attributable to redeemable noncontrolling interests | 4,302 | 178 | 8,573 | 6,710 | |||||||||||
Net income (loss) attributable to noncontrolling interests | — | 106 | — | (21 | ) | ||||||||||
Net income | 38,692 | 994 | 74,144 | 46,613 | |||||||||||
Gain on sale of real estate | (57,870 | ) | (6,394 | ) | (104,991 | ) | (52,183 | ) | |||||||
Gain on sale from unconsolidated real estate ventures | — | (20,554 | ) | (335 | ) | (36,042 | ) | ||||||||
Real estate depreciation and amortization | 47,001 | 64,891 | 180,508 | 201,062 | |||||||||||
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures | 6,407 | 6,079 | 20,577 | 25,039 | |||||||||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (2 | ) | (182 | ) | (7 | ) | (51 | ) | |||||||
FFO Attributable to Operating Partnership Common Units (1) | $ | 34,228 | $ | 44,834 | $ | 169,896 | $ | 184,438 | |||||||
FFO attributable to redeemable noncontrolling interests | (3,804 | ) | (5,741 | ) | (19,306 | ) | (25,798 | ) | |||||||
FFO attributable to common shareholders (1) | $ | 30,424 | $ | 39,093 | $ | 150,590 | $ | 158,640 | |||||||
FFO attributable to the operating partnership common units | $ | 34,228 | $ | 44,834 | $ | 169,896 | $ | 184,438 | |||||||
Transaction and other costs, net of tax (2) | 11,725 | 14,509 | 21,139 | 25,625 | |||||||||||
(Gain) loss from mark-to-market on derivative instruments | — | (542 | ) | 50 | (1,941 | ) | |||||||||
Loss on extinguishment of debt, net of noncontrolling interests | 3,916 | 617 | 5,805 | 5,029 | |||||||||||
Losses and distributions in excess of our investment in unconsolidated real estate venture (3) | (518 | ) | (7,374 | ) | (7,356 | ) | (13,676 | ) | |||||||
Reduction of gain on bargain purchase | — | — | — | 7,606 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Lease liability adjustments | (1,829 | ) | (7,422 | ) | 162 | (9,965 | ) | ||||||||
Amortization of management contracts intangible, net of tax | 1,288 | 1,287 | 5,150 | 5,148 | |||||||||||
Unconsolidated real estate ventures allocated share of above adjustments | (1,407 | ) | 1,921 | 100 | 1,440 | ||||||||||
Core FFO Attributable to Operating Partnership Common Units (1) | $ | 59,362 | $ | 56,948 | $ | 237,108 | $ | 239,734 | |||||||
Core FFO attributable to redeemable noncontrolling interests | (6,598 | ) | (7,292 | ) | (26,895 | ) | (33,536 | ) | |||||||
Core FFO attributable to common shareholders (1) | $ | 52,764 | $ | 49,656 | $ | 210,213 | $ | 206,198 | |||||||
FFO per diluted common share | $ | 0.23 | $ | 0.32 | $ | 1.15 | $ | 1.33 | |||||||
Core FFO per diluted common share | $ | 0.39 | $ | 0.41 | $ | 1.61 | $ | 1.73 | |||||||
Weighted average diluted shares | 134,129 | 120,917 | 130,687 | 119,176 |
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
FAD | |||||||||||||||
Core FFO attributable to the operating partnership common units | $ | 59,362 | $ | 56,948 | $ | 237,108 | $ | 239,734 | |||||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | (27,689 | ) | (35,836 | ) | (84,934 | ) | (72,113 | ) | |||||||
Straight-line and other rent adjustments (4) | (8,464 | ) | (6,692 | ) | (34,359 | ) | (10,351 | ) | |||||||
Third-party lease liability assumption payments | (1,450 | ) | (1,130 | ) | (5,182 | ) | (3,133 | ) | |||||||
Share-based compensation expense | 5,512 | 4,666 | 22,665 | 19,762 | |||||||||||
Amortization of debt issuance costs | 671 | 1,140 | 3,217 | 4,660 | |||||||||||
Unconsolidated real estate ventures allocated share of above adjustments | (386 | ) | 747 | (2,820 | ) | 1,426 | |||||||||
Non-real estate depreciation and amortization | 1,234 | 893 | 3,987 | 3,286 | |||||||||||
FAD available to the Operating Partnership Common Units (A) (1) | $ | 28,790 | $ | 20,736 | $ | 139,682 | $ | 183,271 | |||||||
Distributions to common shareholders and unitholders (5) (B) | $ | 34,011 | $ | 31,284 | $ | 133,307 | $ | 125,100 | |||||||
FAD Payout Ratio (B÷A) (6) | 118.1 | % | 150.9 | % | 95.4 | % | 68.3 | % |
Capital Expenditures | |||||||||||||||
Maintenance and recurring capital expenditures | $ | 11,748 | $ | 14,445 | $ | 31,495 | $ | 28,230 | |||||||
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures | 561 | 978 | 1,340 | 2,821 | |||||||||||
Second generation tenant improvements and leasing commissions | 13,426 | 19,211 | 48,651 | 37,980 | |||||||||||
Share of second generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 1,954 | 1,202 | 3,448 | 3,082 | |||||||||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | 27,689 | 35,836 | 84,934 | 72,113 | |||||||||||
First generation tenant improvements and leasing commissions | 20,057 | 8,215 | 51,751 | 23,519 | |||||||||||
Share of first generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 2,672 | 17 | 3,831 | 2,572 | |||||||||||
Non-recurring capital expenditures | 16,410 | 15,375 | 36,967 | 25,401 | |||||||||||
Share of non-recurring capital expenditures from unconsolidated joint ventures | 488 | 112 | 602 | 1,174 | |||||||||||
Non-recurring capital expenditures | 39,627 | 23,719 | 93,151 | 52,666 | |||||||||||
Total JBG SMITH Share of Capital Expenditures | $ | 67,316 | $ | 59,555 | $ | 178,085 | $ | 124,779 |
(1) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million and $6.5 million for the three months and year ended December 31, 2018). |
(2) | Includes fees and expenses incurred for the relocation of our corporate headquarters, demolition costs, fees and expenses incurred in connection with the Formation Transaction (including amounts incurred for transition services provided by our former parent, integration costs and severance costs), pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. |
(3) | As of June 30, 2018, we suspended the equity method of accounting for our investment in the real estate venture that owns 1101 17th Street as our investment had been reduced to zero and we did not have an obligation to provide further financial support to the venture. All subsequent distributions from the venture have been recognized as income, which will continue until our share of unrecorded earnings and contributions exceed the cumulative excess distributions previously recognized. |
(4) | Includes straight-line rent, above/below market lease amortization and lease incentive amortization. |
(5) | The distribution for the year ended December 31, 2019 excludes a special dividend of $0.10 per common share that was paid in January 2019. |
(6) | The FAD payout ratio on a quarterly basis is not necessarily indicative of an amount for the full year due to fluctuation in timing of capital expenditures, the commencement of new leases and the seasonality of our operations. Q4 2019 and Q4 2018 were impacted by increases in recurring capital expenditures, which is consistent with historical seasonality trends. |
dollars in thousands | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income attributable to common shareholders | $ | 34,390 | $ | 710 | $ | 65,571 | $ | 39,924 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 50,004 | 67,556 | 191,580 | 211,436 | |||||||||||
General and administrative expense: | |||||||||||||||
Corporate and other | 11,934 | 8,512 | 46,822 | 33,728 | |||||||||||
Third-party real estate services | 26,910 | 25,274 | 113,495 | 89,826 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Transaction and other costs | 13,307 | 15,572 | 23,235 | 27,706 | |||||||||||
Interest expense | 11,831 | 18,184 | 52,695 | 74,447 | |||||||||||
Loss on extinguishment of debt | 3,916 | 617 | 5,805 | 5,153 | |||||||||||
Reduction of gain on bargain purchase | — | — | — | 7,606 | |||||||||||
Income tax expense (benefit) | (613 | ) | 698 | (1,302 | ) | (738 | ) | ||||||||
Net income attributable to redeemable noncontrolling interests | 4,302 | 178 | 8,573 | 6,710 | |||||||||||
Less: | |||||||||||||||
Third-party real estate services, including reimbursements | 29,121 | 26,421 | 120,886 | 98,699 | |||||||||||
Other revenue (1) | 1,686 | 1,454 | 7,638 | 6,358 | |||||||||||
Income (loss) from unconsolidated real estate ventures, net | (2,042 | ) | 23,991 | (1,395 | ) | 39,409 | |||||||||
Interest and other income, net | 3,022 | 9,991 | 5,385 | 15,168 | |||||||||||
Gain on sale of real estate | 57,870 | 6,394 | 104,991 | 52,183 | |||||||||||
Net income (loss) attributable to noncontrolling interests | — | (106 | ) | — | 21 | ||||||||||
Consolidated NOI | 78,283 | 78,274 | 311,131 | 319,990 | |||||||||||
NOI attributable to unconsolidated real estate ventures at our share | 6,052 | 8,741 | 21,797 | 36,684 | |||||||||||
Non-cash rent adjustments (2) | (8,465 | ) | (6,691 | ) | (34,359 | ) | (10,349 | ) | |||||||
Other adjustments (3) | 3,913 | 3,915 | 13,979 | 15,061 | |||||||||||
Total adjustments | 1,500 | 5,965 | 1,417 | 41,396 | |||||||||||
NOI | $ | 79,783 | $ | 84,239 | $ | 312,548 | $ | 361,386 | |||||||
Less: out-of-service NOI loss (4) | (2,817 | ) | (1,090 | ) | (7,013 | ) | (4,395 | ) | |||||||
Operating Portfolio NOI | $ | 82,600 | $ | 85,329 | $ | 319,561 | $ | 365,781 | |||||||
Non-same store NOI (5) | 7,653 | 11,266 | 27,298 | 51,646 | |||||||||||
Same store NOI (6) | $ | 74,947 | $ | 74,063 | $ | 292,263 | $ | 314,135 | |||||||
Change in same store NOI | 1.2 | % | (7.0 | )% | |||||||||||
Number of properties in same store pool | 54 | 53 |
(1) | Excludes parking revenue of $6.5 million and $6.3 million for the three months ended December 31, 2019 and 2018, and $26.0 million and $25.7 million for the year ended December 31, 2019 and 2018. |
(2) | Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization. |
(3) | Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue and allocated corporate general and administrative expenses to operating properties. |
(4) | Includes the results for our Under Construction assets and Future Development Pipeline. |
(5) | Includes the results for properties that were not in service for the entirety of both periods being compared and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. The decrease in non-same store NOI is primarily attributable to lost income from disposed assets. |
(6) | Includes the results of the properties that are owned, operated and in service for the entirety of both periods being compared except for properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. |
TABLE OF CONTENTS | DECEMBER 31, 2019 |
Page | |
Overview | |
3-4 | |
5-6 | |
8-9 | |
Financial Information | |
16-17 | |
21-22 | |
Leasing Activity | |
Property Data | |
Property Tables: | |
34-37 | |
38-40 | |
Debt | |
45-46 | |
Real Estate Ventures | |
48-49 | |
50-53 | |
54-57 |
Page 2 |
DISCLOSURES | DECEMBER 31, 2019 |
Page 3 |
DISCLOSURES | DECEMBER 31, 2019 |
• | Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") |
• | EBITDA for Real Estate ("EBITDAre") |
• | Adjusted EBITDA |
• | Funds from Operations ("FFO") |
• | Core FFO |
• | Funds Available for Distribution ("FAD") |
• | Third-Party Asset Management and Real Estate Services Business |
• | Net Operating Income ("NOI") |
• | Annualized NOI |
• | Adjusted Annualized NOI |
• | Estimated Stabilized NOI |
• | Projected NOI Yield |
• | Same Store NOI |
• | Adjusted Consolidated and Unconsolidated Indebtedness |
• | Net Debt |
• | Pro Rata Adjusted General and Administrative Expenses |
Page 4 |
COMPANY PROFILE | DECEMBER 31, 2019 (Unaudited) |
Company Overview |
▪ | Net income attributable to common shareholders was $34.4 million, or $0.25 per diluted share. |
▪ | FFO attributable to common shareholders was $30.4 million, or $0.23 per diluted share. |
▪ | Core FFO attributable to common shareholders was $52.8 million, or $0.39 per diluted share. |
▪ | Annualized NOI for the operating portfolio for the three months ended December 31, 2019 was $328.2 million, compared to $313.2 million for the three months ended September 30, 2019, at our share. |
▪ | The operating commercial portfolio was 91.4% leased and 88.2% occupied as of December 31, 2019, compared to 90.2% and 86.8% as of September 30, 2019, at our share. |
▪ | The operating multifamily portfolio was 89.5% leased and 87.2% occupied as of December 31, 2019, compared to 96.5% and 94.9% as of September 30, 2019, at our share. The decreases are due in part to the movement of West Half into our recently delivered operating assets during the quarter. The in service operating multifamily portfolio was 95.1% leased and 93.3% occupied as of December 31, 2019. |
▪ | Same store NOI at our share increased 1.2% to $74.9 million for the three months ended December 31, 2019, compared to $74.1 million for the three months ended December 31, 2018. Same store NOI decreased 7.0% to $292.3 million for the year ended December 31, 2019, compared to $314.1 million for the year ended December 31, 2018. The increase in same store NOI for the three months ended December 31, 2019 is largely attributable to decreased ground rent expense. The decrease in same store NOI for the year ended December 31, 2019 is largely attributable to increased rental abatements and rent reductions, and an increase in assumed lease liability payments. The reported same store pools as of December 31, 2019 include only the assets that were in service for the entirety of both periods being compared. See page 52 for the definition of same store. |
▪ | During the quarter ended December 31, 2019, there were seven assets under construction (four commercial assets and three multifamily assets), consisting of approximately 821,000 square feet and 833 units, both at our share. |
▪ | During the quarter ended December 31, 2019, we completed 4747 Bethesda, Atlantic Plumbing C and 1900 N Street, all delivered ahead or on schedule and below budget. |
▪ | As of December 31, 2019, there were no assets in near-term development. |
▪ | As of December 31, 2019, there were 40 future development assets consisting of 18.7 million square feet of estimated potential density at our share, including the 4.1 million square feet held for sale to Amazon. |
Page 5 |
COMPANY PROFILE | DECEMBER 31, 2019 (Unaudited) |
Company Overview |
• | Acquired F1RST Residences, a 325-unit multifamily asset in the Ballpark submarket of Washington, D.C. with approximately 21,000 square feet of street level retail, for $160.5 million through a like-kind exchange agreement with a third-party intermediary. |
• | Sold a 50.0% interest in a real estate venture that owns Central Place Tower, a 552,000 square foot commercial asset located in Arlington, Virginia. |
• | Sold Vienna Retail, an 8,600 square foot commercial asset located in Vienna, Virginia, for $7.4 million. |
• | In January 2020, sold Metropolitan Park to Amazon for $155.0 million, which represents an $11.0 million increase over the previously estimated contract value resulting from an increase in the approved development density on the sites. |
Executive Officers | Company Snapshot as of December 31, 2019 | |||||
W. Matthew Kelly | Chief Executive Officer and Trustee | Exchange/ticker | NYSE: JBGS | |||
David P. Paul | President and Chief Operating Officer | Insider ownership (1) | approximately 8% | |||
Stephen W. Theriot | Chief Financial Officer | Indicated annual dividend per share | $0.90 | |||
Kevin P. Reynolds | Chief Development Officer | Dividend yield (2) | 2.2% | |||
Steven A. Museles | Chief Legal Officer | |||||
M. Moina Banerjee | Executive Vice President, Head of Capital Markets | Total Enterprise Value (dollars in billions, except share price) | ||||
Common share price (3) | $41.77 | |||||
Common shares and common limited partnership units ("OP Units") outstanding (in millions) | 149.30 | |||||
Total market capitalization | $6.24 | |||||
Total consolidated and unconsolidated indebtedness at JBG SMITH share | 1.95 | |||||
Less: cash and cash equivalents at JBG SMITH share | (0.14) | |||||
Net debt | $1.81 | |||||
Total Enterprise Value | $8.05 | |||||
Net Debt / Total Enterprise Value (4) | 22.5% | |||||
(1) | Represents the percentage of all outstanding common shares of JBG SMITH and OP Units owned or represented by the Company’s trustees and executive officers as of December 31, 2019 assuming that all the vested long-term incentive partnership units ("LTIP Units") owned by trustees and executive officers were redeemed for common shares. | |||||
(2) | Calculated using closing share price as of February 21, 2020. | |||||
(3) | Closing share price as of February 21, 2020. | |||||
(4) | Pro forma Net Debt / Total Enterprise Value would have been 21.0% as of December 31, 2019, which includes the $155.0 million of net proceeds from the sale of Metropolitan Park in January 2020. | |||||
$ | 1,812,857 | |||||
22.520 | % |
Page 6 |
FINANCIAL HIGHLIGHTS | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands, except per share data | Three Months Ended December 31, 2019 | Year Ended December 31, 2019 | |||||
Summary Financial Results | |||||||
Total revenue | $ | 164,877 | $ | 647,770 | |||
Net income attributable to common shareholders | $ | 34,390 | $ | 65,571 | |||
Per diluted common share | $ | 0.25 | $ | 0.48 | |||
Operating portfolio NOI | $ | 82,600 | $ | 319,561 | |||
FFO (1) | $ | 34,228 | $ | 169,896 | |||
Per operating partnership common unit | $ | 0.23 | $ | 1.15 | |||
Core FFO (1) | $ | 59,362 | $ | 237,108 | |||
Per operating partnership common unit | $ | 0.39 | $ | 1.61 | |||
FAD (1) | $ | 28,790 | $ | 139,682 | |||
FAD payout ratio | 118.1 | % | 95.4 | % | |||
EBITDA (1) | $ | 109,962 | $ | 353,987 | |||
EBITDAre (1) | $ | 52,092 | $ | 248,661 | |||
Adjusted EBITDA (1) | $ | 77,582 | $ | 311,324 | |||
Net debt / total enterprise value (2) | 22.5 | % | 22.5 | % | |||
Net debt to annualized adjusted EBITDA (3) | 5.8x | 5.8x | |||||
December 31, 2019 | |||||||
Debt Summary and Key Ratios (at JBG SMITH Share) | |||||||
Total consolidated indebtedness (4) | $ | 1,620,001 | |||||
Total consolidated and unconsolidated indebtedness (4) | $ | 1,949,057 | |||||
Weighted average interest rates: | |||||||
Variable rate debt | 3.54 | % | |||||
Fixed rate debt | 4.20 | % | |||||
Total debt | 4.03 | % | |||||
Cash and cash equivalents | $ | 136,200 |
(1) | Attributable to operating partnership common units, which include units owned by JBG SMITH. |
(2) | Calculated using closing share price as of February 21, 2020. |
(3) | Pro forma Net Debt to Annualized Adjusted EBITDA would have been 5.3x for the three months and year ended December 31, 2019, which includes the $155.0 million of net proceeds from the sale of Metropolitan Park in January 2020. |
(4) | Net of premium/discount and deferred financing costs. |
Page 7 |
FINANCIAL HIGHLIGHTS - TRENDS | DECEMBER 31, 2019 (Unaudited) |
Three Months Ended | ||||||||||||||||
dollars in thousands, except per share data, at JBG SMITH share | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | |||||||||||
Commercial NOI | $ | 61,999 | $ | 57,840 | $ | 59,735 | $ | 59,304 | $ | 65,462 | ||||||
Multifamily NOI | 20,601 | 20,436 | 20,569 | 20,357 | 20,078 | |||||||||||
Operating portfolio NOI (1) | $ | 82,600 | $ | 78,276 | $ | 80,304 | $ | 79,661 | $ | 85,540 | ||||||
Total annualized NOI | $ | 328,207 | $ | 313,224 | $ | 322,026 | $ | 321,583 | $ | 341,849 | ||||||
Net income (loss) attributable to common shareholders | $ | 34,390 | $ | 9,360 | $ | (3,040 | ) | $ | 24,861 | $ | 710 | |||||
Per diluted common share | $ | 0.25 | $ | 0.06 | $ | (0.03 | ) | $ | 0.20 | $ | (0.01 | ) | ||||
FFO (1) (2) | $ | 34,228 | $ | 51,321 | $ | 44,445 | $ | 39,902 | $ | 44,834 | ||||||
Per operating partnership common unit | $ | 0.23 | $ | 0.34 | $ | 0.30 | $ | 0.28 | $ | 0.32 | ||||||
Core FFO (1) (2) | $ | 59,362 | $ | 66,053 | $ | 61,437 | $ | 50,256 | $ | 56,948 | ||||||
Per operating partnership common unit | $ | 0.39 | $ | 0.44 | $ | 0.41 | $ | 0.36 | $ | 0.41 | ||||||
FAD (2) (3) | $ | 28,790 | $ | 46,232 | $ | 37,520 | $ | 27,140 | $ | 20,736 | ||||||
FAD payout ratio | 118.1 | % | 73.6 | % | 90.6 | % | 115.3 | % | 150.9 | % | ||||||
EBITDA (1) (2) | $ | 109,962 | $ | 77,073 | $ | 66,178 | $ | 100,774 | $ | 97,503 | ||||||
EBITDAre (1) (2) | $ | 52,092 | $ | 68,985 | $ | 65,843 | $ | 61,741 | $ | 70,555 | ||||||
Adjusted EBITDA (1) (2) | $ | 77,582 | $ | 82,419 | $ | 79,997 | $ | 71,326 | $ | 82,608 | ||||||
Net debt / total enterprise value (4) | 22.5 | % | 22.9 | % | 22.2 | % | 26.3 | % | 31.0 | % | ||||||
Net debt to annualized adjusted EBITDA (4) (5) | 5.8x | 5.3x | 5.2x | 7.1x | 6.5x | |||||||||||
Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | ||||||||||||
Number of Operating Assets | ||||||||||||||||
Commercial | 44 | 45 | 46 | 45 | 46 | |||||||||||
Multifamily | 18 | 16 | 16 | 16 | 16 | |||||||||||
Total | 62 | 61 | 62 | 61 | 62 | |||||||||||
Operating Portfolio % Leased | ||||||||||||||||
Commercial (6) | 91.4 | % | 90.2 | % | 90.3 | % | 90.2 | % | 89.6 | % | ||||||
Multifamily (7) | 89.5 | % | 96.5 | % | 98.0 | % | 97.0 | % | 95.7 | % | ||||||
Weighted Average | 90.8 | % | 91.9 | % | 92.3 | % | 92.0 | % | 91.2 | % | ||||||
Operating Portfolio % Occupied (8) | ||||||||||||||||
Commercial (6) | 88.2 | % | 86.8 | % | 86.0 | % | 85.6 | % | 85.5 | % | ||||||
Multifamily (7) | 87.2 | % | 94.9 | % | 95.0 | % | 94.8 | % | 93.9 | % | ||||||
Weighted Average | 87.9 | % | 89.0 | % | 88.4 | % | 88.1 | % | 87.7 | % |
Page 8 |
FINANCIAL HIGHLIGHTS - TRENDS | DECEMBER 31, 2019 (Unaudited) |
(1) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million for Q4 2018). |
(2) | Attributable to operating partnership common units, which include units owned by JBG SMITH. |
(3) | Q4 2019 and Q4 2018 were impacted by increases in recurring capital expenditures, which is consistent with historical seasonality trends. |
(4) | Q4 2019 calculated using closing share price as of February 21, 2020. In Q2 2019, we closed an underwritten public offering of 11.5 million common shares that generated net proceeds of $472.8 million. |
(5) | Pro forma Net Debt to Annualized Adjusted EBITDA would have been 5.3x in Q4 2019, which includes the $155.0 million of net proceeds from the sale of Metropolitan Park in January 2020. |
(6) | Crystal City Marriott and 1700 M Street are excluded from the percent leased and the percent occupied metrics. |
(7) | Includes recently delivered assets. In service assets were 95.1% leased and 93.3% occupied as of Q4 2019. |
(8) | Percent occupied excludes occupied retail square feet. |
Page 9 |
PORTFOLIO OVERVIEW | DECEMBER 31, 2019 (Unaudited) |
100% Share | At JBG SMITH Share | |||||||||||||||||||||||||
Number of Assets | Square Feet/Units | Square Feet/Units | % Leased | % Occupied | Annualized Rent (in thousands) | Annualized Rent per Square Foot/Monthly Rent Per Unit (1) | Annualized NOI (in thousands) | |||||||||||||||||||
Operating | ||||||||||||||||||||||||||
Commercial (2) | ||||||||||||||||||||||||||
In service | 43 | 12,520,856 | 10,602,754 | 91.5 | % | 88.3 | % | $ | 401,114 | $ | 44.27 | $ | 243,703 | |||||||||||||
Recently delivered | 1 | 215,213 | 105,444 | 85.7 | % | 79.2 | % | 4,595 | 54.99 | 2,100 | ||||||||||||||||
Total / weighted average | 44 | 12,736,069 | 10,708,198 | 91.4 | % | 88.2 | % | $ | 405,709 | $ | 44.38 | $ | 245,803 | |||||||||||||
Multifamily | ||||||||||||||||||||||||||
In service | 17 | 6,646 | 4,862 | 95.1 | % | 93.3 | % | $ | 125,854 | $ | 2,193 | $ | 81,936 | |||||||||||||
Recently delivered | 1 | 465 | 465 | 30.2 | % | 23.9 | % | 4,604 | 2,248 | 468 | ||||||||||||||||
Total / weighted average | 18 | 7,111 | 5,327 | 89.5 | % | 87.2 | % | $ | 130,458 | $ | 2,195 | $ | 82,404 | |||||||||||||
Operating - In Service | 60 | 12,520,856 SF/ 6,646 Units | 10,602,754 SF/ 4,862 Units | 92.5 | % | 89.8 | % | $ | 526,968 | $44.27 per SF/ $2,193 per unit | $ | 325,639 | ||||||||||||||
2 | ||||||||||||||||||||||||||
Operating - Recently Delivered | 2 | 215,213 SF/ 465 Units | 105,444 SF/ 465 Units | 42.1 | % | 36.8 | % | $ | 9,199 | $54.99 per SF/ $2,248 per unit | $ | 2,568 | ||||||||||||||
88.1 | % | |||||||||||||||||||||||||
Operating - Total / Weighted Average | 62 | 12,736,069 SF/ 7,111 Units | 10,708,198 SF/ 5,327 Units | 90.8 | % | 87.9 | % | $ | 536,167 | $44.38 per SF/ $2,195 per unit | $ | 328,207 | ||||||||||||||
Development (3) | ||||||||||||||||||||||||||
Under Construction | ||||||||||||||||||||||||||
Commercial (4) | 4 | 943,244 | 821,099 | 86.8 | % | |||||||||||||||||||||
Multifamily | 3 | 1,011 | 833 | N/A | ||||||||||||||||||||||
Development - Total | 7 | 943,244 SF/ 1,011 Units | 821,099 SF/ 833 Units | 86.8 | % | |||||||||||||||||||||
Future Development | 40 | 21,921,200 | 18,667,300 |
(1) | For commercial 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. Crystal City Marriott and 1700 M Street are excluded from annualized rent per square foot metrics. 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) | Crystal City Marriott and 1700 M Street are excluded from percent leased, percent occupied, annualized rent, and annualized rent per square foot metrics. |
(3) | Refer to pages 41-42 for detail on Under Construction assets and Future Development pipeline. |
(4) | Includes JBG SMITH’s lease for approximately 84,400 square feet at 4747 Bethesda Avenue. |
Page 10 |
CONDENSED CONSOLIDATED BALANCE SHEETS | DECEMBER 31, 2019 (Unaudited) |
in thousands | December 31, 2019 | December 31, 2018 | |||||
ASSETS | |||||||
Real estate, at cost: | |||||||
Land and improvements | $ | 1,240,455 | $ | 1,371,874 | |||
Buildings and improvements | 3,880,973 | 3,722,930 | |||||
Construction in progress, including land | 654,091 | 697,930 | |||||
5,775,519 | 5,792,734 | ||||||
Less accumulated depreciation | (1,119,571 | ) | (1,051,875 | ) | |||
Real estate, net | 4,655,948 | 4,740,859 | |||||
Cash and cash equivalents | 126,413 | 260,553 | |||||
Restricted cash | 16,103 | 138,979 | |||||
Tenant and other receivables, net | 52,941 | 46,568 | |||||
Deferred rent receivable, net | 169,721 | 143,473 | |||||
Investments in unconsolidated real estate ventures | 543,026 | 322,878 | |||||
Other assets, net | 253,687 | 264,994 | |||||
Assets held for sale | 168,412 | 78,981 | |||||
TOTAL ASSETS | $ | 5,986,251 | $ | 5,997,285 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | 1,125,777 | $ | 1,838,381 | |||
Revolving credit facility | 200,000 | — | |||||
Unsecured term loans, net | 297,295 | 297,129 | |||||
Accounts payable and accrued expenses | 157,702 | 130,960 | |||||
Other liabilities, net | 206,042 | 181,606 | |||||
Liabilities related to assets held for sale | — | 3,717 | |||||
Total liabilities | 1,986,816 | 2,451,793 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 612,758 | 558,140 | |||||
Total equity | 3,386,677 | 2,987,352 | |||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ | 5,986,251 | $ | 5,997,285 |
Page 11 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | DECEMBER 31, 2019 (Unaudited) (Unaudited) (In thousands) |
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
REVENUE | |||||||||||||||
Property rentals | $ | 127,571 | $ | 129,048 | $ | 493,273 | $ | 513,447 | |||||||
Third-party real estate services, including reimbursements | 29,121 | 26,421 | 120,886 | 98,699 | |||||||||||
Other revenue | 8,185 | 7,786 | 33,611 | 32,036 | |||||||||||
Total revenue | 164,877 | 163,255 | 647,770 | 644,182 | |||||||||||
EXPENSES | |||||||||||||||
Depreciation and amortization | 50,004 | 67,556 | 191,580 | 211,436 | |||||||||||
Property operating | 37,535 | 40,076 | 137,622 | 148,081 | |||||||||||
Real estate taxes | 18,252 | 17,030 | 70,493 | 71,054 | |||||||||||
General and administrative: | |||||||||||||||
Corporate and other | 11,934 | 8,512 | 46,822 | 33,728 | |||||||||||
Third-party real estate services | 26,910 | 25,274 | 113,495 | 89,826 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Transaction and other costs | 13,307 | 15,572 | 23,235 | 27,706 | |||||||||||
Total expenses | 169,901 | 183,138 | 625,409 | 617,861 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Income (loss) from unconsolidated real estate ventures, net | (2,042 | ) | 23,991 | (1,395 | ) | 39,409 | |||||||||
Interest and other income, net | 3,022 | 9,991 | 5,385 | 15,168 | |||||||||||
Interest expense | (11,831 | ) | (18,184 | ) | (52,695 | ) | (74,447 | ) | |||||||
Gain on sale of real estate | 57,870 | 6,394 | 104,991 | 52,183 | |||||||||||
Loss on extinguishment of debt | (3,916 | ) | (617 | ) | (5,805 | ) | (5,153 | ) | |||||||
Reduction of gain on bargain purchase | — | — | — | (7,606 | ) | ||||||||||
Total other income (expense) | 43,103 | 21,575 | 50,481 | 19,554 | |||||||||||
INCOME BEFORE INCOME TAX (EXPENSE) BENEFIT | 38,079 | 1,692 | 72,842 | 45,875 | |||||||||||
Income tax (expense) benefit | 613 | (698 | ) | 1,302 | 738 | ||||||||||
NET INCOME | 38,692 | 994 | 74,144 | 46,613 | |||||||||||
Net income attributable to redeemable noncontrolling interests | (4,302 | ) | (178 | ) | (8,573 | ) | (6,710 | ) | |||||||
Net (income) loss attributable to noncontrolling interests | — | (106 | ) | — | 21 | ||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 34,390 | $ | 710 | $ | 65,571 | $ | 39,924 | |||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||||||
Basic | $ | 0.25 | $ | (0.01 | ) | $ | 0.48 | $ | 0.31 | ||||||
Diluted | $ | 0.25 | $ | (0.01 | ) | $ | 0.48 | $ | 0.31 | ||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING : | |||||||||||||||
Basic | 134,129 | 120,917 | 130,687 | 119,176 | |||||||||||
Diluted | 134,129 | 120,917 | 130,687 | 119,176 |
Page 12 |
UNCONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2019 (Unaudited) |
in thousands, at JBG SMITH share | |||
BALANCE SHEET INFORMATION | December 31, 2019 | ||
Total real estate, at cost | $ | 855,713 | |
Less accumulated depreciation | (41,450 | ) | |
Real estate, net | 814,263 | ||
Cash and cash equivalents | 9,797 | ||
Other assets, net | 91,382 | ||
Total assets | $ | 915,442 | |
Borrowings, net | $ | 329,056 | |
Other liabilities, net | 57,957 | ||
Total liabilities | $ | 387,013 |
OPERATING INFORMATION | Three Months Ended December 31, 2019 | Year Ended December 31, 2019 | |||||
Total revenue | $ | 16,872 | $ | 63,615 | |||
Expenses: | |||||||
Depreciation and amortization | 6,426 | 20,657 | |||||
Property operating | 9,298 | 32,163 | |||||
Real estate taxes | 1,780 | 6,282 | |||||
Total expenses | 17,504 | 59,102 | |||||
Other income (expense): | |||||||
Interest expense | (3,584 | ) | (15,389 | ) | |||
Gain on the sale of real estate | — | 335 | |||||
Interest and other income, net | 1,354 | 1,946 | |||||
Loss before income tax expense | (2,862 | ) | (8,595 | ) | |||
Income tax expense | (34 | ) | (59 | ) | |||
Net loss | $ | (2,896 | ) | $ | (8,654 | ) | |
Earnings and distributions in excess of our investment in unconsolidated real estate venture | 518 | 7,356 | |||||
Other | 336 | (97 | ) | ||||
Loss from unconsolidated real estate ventures, net | $ | (2,042 | ) | $ | (1,395 | ) |
Page 13 |
OTHER TANGIBLE ASSETS AND LIABILITIES | DECEMBER 31, 2019 (Unaudited) |
in thousands, at JBG SMITH share | December 31, 2019 | ||
Other Tangible Assets, Net (1) (2) | |||
Restricted cash | $ | 19,986 | |
Tenant and other receivables, net | 59,028 | ||
Other assets, net | 28,752 | ||
Total Other Tangible Assets, Net | $ | 107,766 | |
Other Tangible Liabilities, Net (2) (3) | |||
Accounts payable and accrued liabilities | $ | 185,026 | |
Other liabilities, net | 180,734 | ||
Total Other Tangible Liabilities, Net | $ | 365,760 |
(1) | Excludes cash and cash equivalents. |
(2) | Excludes assets held for sale and liabilities related to assets held for sale. |
(3) | Excludes debt. |
Page 14 |
EBITDA, EBITDAre AND ADJUSTED EBITDA (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
EBITDA, EBITDAre and Adjusted EBITDA | |||||||||||||||
Net income | $ | 38,692 | $ | 994 | $ | 74,144 | $ | 46,613 | |||||||
Depreciation and amortization expense | 50,004 | 67,556 | 191,580 | 211,436 | |||||||||||
Interest expense (1) | 11,831 | 18,184 | 52,695 | 74,447 | |||||||||||
Income tax expense (benefit) | (613 | ) | 698 | (1,302 | ) | (738 | ) | ||||||||
Unconsolidated real estate ventures allocated share of above adjustments | 10,050 | 10,253 | 36,877 | 42,016 | |||||||||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (2 | ) | (182 | ) | (7 | ) | (53 | ) | |||||||
EBITDA (2) | $ | 109,962 | $ | 97,503 | $ | 353,987 | $ | 373,721 | |||||||
Gain on sale of real estate | (57,870 | ) | (6,394 | ) | (104,991 | ) | (52,183 | ) | |||||||
Gain on sale from unconsolidated real estate ventures | — | (20,554 | ) | (335 | ) | (36,042 | ) | ||||||||
EBITDAre (2) | $ | 52,092 | $ | 70,555 | $ | 248,661 | $ | 285,496 | |||||||
Transaction and other costs (3) | 13,307 | 15,572 | 23,235 | 27,706 | |||||||||||
Loss on extinguishment of debt, net of noncontrolling interests | 3,916 | 617 | 5,805 | 5,029 | |||||||||||
Reduction of gain on bargain purchase | — | — | — | 7,606 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Losses and distributions in excess of our investment in unconsolidated real estate venture (4) | (518 | ) | (7,374 | ) | (7,356 | ) | (13,676 | ) | |||||||
Unconsolidated real estate ventures allocated share of above adjustments | (1,345 | ) | 1,542 | (1,345 | ) | 1,572 | |||||||||
Lease liability adjustments | (1,829 | ) | (7,422 | ) | 162 | (9,965 | ) | ||||||||
Adjusted EBITDA (2) | $ | 77,582 | $ | 82,608 | $ | 311,324 | $ | 339,798 | |||||||
Net Debt to Annualized Adjusted EBITDA (5) (6) | 5.8x | 6.5x | 5.8x | 6.3x | |||||||||||
December 31, 2019 | December 31, 2018 | ||||||||||||||
Net Debt (at JBG SMITH Share) | |||||||||||||||
Consolidated indebtedness (7) | $ | 1,620,001 | $ | 2,130,704 | |||||||||||
Unconsolidated indebtedness (7) | 329,056 | 298,588 | |||||||||||||
Total consolidated and unconsolidated indebtedness | 1,949,057 | 2,429,292 | |||||||||||||
Less: cash and cash equivalents | 136,200 | 273,611 | |||||||||||||
Net Debt (at JBG SMITH Share) | $ | 1,812,857 | $ | 2,155,681 | |||||||||||
$ | (0.14 | ) |
(1) | Interest expense includes the amortization of deferred financing costs and the ineffective portion of any interest rate swaps or caps, net of capitalized interest. |
(2) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million and $6.5 million for the three months and year ended December 31, 2018). |
(3) | Includes fees and expenses incurred for the relocation of our corporate headquarters, demolition costs, fees and expenses incurred in connection with the Formation Transaction (including amounts incurred for transition services provided by our former parent, integration costs and severance costs), pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. |
(4) | As of June 30, 2018, we suspended the equity method of accounting for our investment in the real estate venture that owns 1101 17th Street as our investment had been reduced to zero and we did not have an obligation to provide further financial support to the venture. All subsequent distributions from the venture have been recognized as income, which will continue until our share of unrecorded earnings and contributions exceed the cumulative excess distributions previously recognized. |
(5) | Adjusted EBITDA for the three months ended December 31, 2019 and 2018 is annualized by multiplying by four. |
(6) | Pro forma Net Debt to Annualized Adjusted EBITDA would have been 5.3x for the three months and year ended December 31, 2019, which includes the $155.0 million of net proceeds from the sale of Metropolitan Park in January 2020. |
(7) | Net of premium/discount and deferred financing costs. |
Page 15 |
FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
FFO and Core FFO | |||||||||||||||
Net income attributable to common shareholders | $ | 34,390 | $ | 710 | $ | 65,571 | $ | 39,924 | |||||||
Net income attributable to redeemable noncontrolling interests | 4,302 | 178 | 8,573 | 6,710 | |||||||||||
Net income (loss) attributable to noncontrolling interests | — | 106 | — | (21 | ) | ||||||||||
Net income | 38,692 | 994 | 74,144 | 46,613 | |||||||||||
Gain on sale of real estate | (57,870 | ) | (6,394 | ) | (104,991 | ) | (52,183 | ) | |||||||
Gain on sale from unconsolidated real estate ventures | — | (20,554 | ) | (335 | ) | (36,042 | ) | ||||||||
Real estate depreciation and amortization | 47,001 | 64,891 | 180,508 | 201,062 | |||||||||||
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures | 6,407 | 6,079 | 20,577 | 25,039 | |||||||||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (2 | ) | (182 | ) | (7 | ) | (51 | ) | |||||||
FFO Attributable to Operating Partnership Common Units (1) | $ | 34,228 | $ | 44,834 | $ | 169,896 | $ | 184,438 | |||||||
FFO attributable to redeemable noncontrolling interests | (3,804 | ) | (5,741 | ) | (19,306 | ) | (25,798 | ) | |||||||
FFO attributable to common shareholders (1) | $ | 30,424 | $ | 39,093 | $ | 150,590 | $ | 158,640 | |||||||
FFO attributable to the operating partnership common units | $ | 34,228 | $ | 44,834 | $ | 169,896 | $ | 184,438 | |||||||
Transaction and other costs, net of tax (2) | 11,725 | 14,509 | 21,139 | 25,625 | |||||||||||
(Gain) loss from mark-to-market on derivative instruments | — | (542 | ) | 50 | (1,941 | ) | |||||||||
Loss on extinguishment of debt, net of noncontrolling interests | 3,916 | 617 | 5,805 | 5,029 | |||||||||||
Losses and distributions in excess of our investment in unconsolidated real estate venture (3) | (518 | ) | (7,374 | ) | (7,356 | ) | (13,676 | ) | |||||||
Reduction of gain on bargain purchase | — | — | — | 7,606 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Lease liability adjustments | (1,829 | ) | (7,422 | ) | 162 | (9,965 | ) | ||||||||
Amortization of management contracts intangible, net of tax | 1,288 | 1,287 | 5,150 | 5,148 | |||||||||||
Unconsolidated real estate ventures allocated share of above adjustments | (1,407 | ) | 1,921 | 100 | 1,440 | ||||||||||
Core FFO Attributable to Operating Partnership Common Units (1) | $ | 59,362 | $ | 56,948 | $ | 237,108 | $ | 239,734 | |||||||
Core FFO attributable to redeemable noncontrolling interests | (6,598 | ) | (7,292 | ) | (26,895 | ) | (33,536 | ) | |||||||
Core FFO attributable to common shareholders (1) | $ | 52,764 | $ | 49,656 | $ | 210,213 | $ | 206,198 | |||||||
FFO per diluted common share | $ | 0.23 | $ | 0.32 | $ | 1.15 | $ | 1.33 | |||||||
Core FFO per diluted common share | $ | 0.39 | $ | 0.41 | $ | 1.61 | $ | 1.73 | |||||||
Weighted average diluted shares | 134,129 | 120,917 | 130,687 | 119,176 |
FAD | |||||||||||||||
Core FFO attributable to the operating partnership common units | $ | 59,362 | $ | 56,948 | $ | 237,108 | $ | 239,734 | |||||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | (27,689 | ) | (35,836 | ) | (84,934 | ) | (72,113 | ) | |||||||
Straight-line and other rent adjustments (4) | (8,464 | ) | (6,692 | ) | (34,359 | ) | (10,351 | ) | |||||||
Third-party lease liability assumption payments | (1,450 | ) | (1,130 | ) | (5,182 | ) | (3,133 | ) | |||||||
Share-based compensation expense | 5,512 | 4,666 | 22,665 | 19,762 | |||||||||||
Amortization of debt issuance costs | 671 | 1,140 | 3,217 | 4,660 | |||||||||||
Unconsolidated real estate ventures allocated share of above adjustments | (386 | ) | 747 | (2,820 | ) | 1,426 | |||||||||
Non-real estate depreciation and amortization | 1,234 | 893 | 3,987 | 3,286 | |||||||||||
FAD available to the Operating Partnership Common Units (A) (1) | $ | 28,790 | $ | 20,736 | $ | 139,682 | $ | 183,271 | |||||||
Distributions to common shareholders and unitholders (5) (B) | $ | 34,011 | $ | 31,284 | $ | 133,307 | $ | 125,100 | |||||||
FAD Payout Ratio (B÷A) (6) | 118.1 | % | 150.9 | % | 95.4 | % | 68.3 | % |
Page 16 |
FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Capital Expenditures | |||||||||||||||
Maintenance and recurring capital expenditures | $ | 11,748 | $ | 14,445 | $ | 31,495 | $ | 28,230 | |||||||
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures | 561 | 978 | 1,340 | 2,821 | |||||||||||
Second generation tenant improvements and leasing commissions | 13,426 | 19,211 | 48,651 | 37,980 | |||||||||||
Share of second generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 1,954 | 1,202 | 3,448 | 3,082 | |||||||||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | 27,689 | 35,836 | 84,934 | 72,113 | |||||||||||
First generation tenant improvements and leasing commissions | 20,057 | 8,215 | 51,751 | 23,519 | |||||||||||
Share of first generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 2,672 | 17 | 3,831 | 2,572 | |||||||||||
Non-recurring capital expenditures | 16,410 | 15,375 | 36,967 | 25,401 | |||||||||||
Share of non-recurring capital expenditures from unconsolidated joint ventures | 488 | 112 | 602 | 1,174 | |||||||||||
Non-recurring capital expenditures | 39,627 | 23,719 | 93,151 | 52,666 | |||||||||||
Total JBG SMITH Share of Capital Expenditures | $ | 67,316 | $ | 59,555 | $ | 178,085 | $ | 124,779 |
(1) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million and $6.5 million for the three months and year ended December 31, 2018). |
(2) | Includes fees and expenses incurred for the relocation of our corporate headquarters, demolition costs, fees and expenses incurred in connection with the Formation Transaction (including amounts incurred for transition services provided by our former parent, integration costs and severance costs), pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. |
(3) | As of June 30, 2018, we suspended the equity method of accounting for our investment in the real estate venture that owns 1101 17th Street as our investment had been reduced to zero and we did not have an obligation to provide further financial support to the venture. All subsequent distributions from the venture have been recognized as income, which will continue until our share of unrecorded earnings and contributions exceed the cumulative excess distributions previously recognized. |
(4) | Includes straight-line rent, above/below market lease amortization and lease incentive amortization. |
(5) | The distribution for the year ended December 31, 2019 excludes a special dividend of $0.10 per common share that was paid in January 2019. |
(6) | The FAD payout ratio on a quarterly basis is not necessarily indicative of an amount for the full year due to fluctuation in timing of capital expenditures, the commencement of new leases and the seasonality of our operations. Q4 2019 and Q4 2018 were impacted by increases in recurring capital expenditures, which is consistent with historical seasonality trends. |
Page 17 |
THIRD-PARTY ASSET MANAGEMENT AND REAL ESTATE SERVICES BUSINESS (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands, at JBG SMITH share | Three Months Ended December 31, 2019 | |||||||||||
Source of Revenue | ||||||||||||
Third-Party Management | JBG SMITH JV Partner (1) | JBG Legacy Funds | Total | |||||||||
Service Revenue | ||||||||||||
Property management fees | $ | 2,763 | $ | 1,195 | $ | 1,170 | $ | 5,128 | ||||
Asset management fees | — | 548 | 2,810 | 3,358 | ||||||||
Leasing fees | 1,320 | 633 | 92 | 2,045 | ||||||||
Development fees | 3,072 | 408 | 1,263 | 4,743 | ||||||||
Construction management fees | 114 | 78 | — | 192 | ||||||||
Other service revenue | 432 | 267 | (188 | ) | 511 | |||||||
Total Revenue (2) | $ | 7,701 | $ | 3,129 | $ | 5,147 | $ | 15,977 | ||||
Pro Rata adjusted general and administrative expense: third-party real estate services (3) | (13,720 | ) | ||||||||||
Total Services Revenue Less Allocated General and Administrative Expenses (4) | $ | 2,257 |
(1) | Service revenues from joint ventures are calculated on an asset-by-asset basis by applying our real estate venture partners’ respective economic interests to the fees we earned from each consolidated and unconsolidated real estate venture. |
(2) | Included in “Third-party real estate services, including reimbursements” in our consolidated statement of operations are $12.4 million of reimbursement revenue and $0.7 million of service revenue from our economic interest in consolidated and unconsolidated real estate ventures that are excluded from this table. |
(3) | Our personnel perform services for wholly owned properties and properties we manage on behalf of third parties, real estate ventures and JBG Legacy Funds. |
(4) | Services revenue, excluding reimbursement revenue and service revenue from our economic interest in consolidated and unconsolidated real estate ventures, less allocated general and administrative expenses. Management uses this measure as a supplemental performance measure for its third-party asset management and real estate services business and believes it provides useful information to investors because it reflects only those revenue and expense items incurred by the Company and can be used to assess the profitability of the third-party asset management and real estate services business. |
Page 18 |
PRO RATA ADJUSTED GENERAL AND ADMINISTRATIVE EXPENSES (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | Three Months Ended December 31, 2019 | ||||||||||||||
Per Statement of Operations | Adjustments (1) | Pro Rata Adjusted | |||||||||||||
A | B | C | |||||||||||||
General and Administrative Expenses | |||||||||||||||
Corporate and other | $ | 11,934 | $ | — | $ | — | $ | 771 | $ | 12,705 | |||||
Third-party real estate services | 26,910 | — | (12,419 | ) | (771 | ) | 13,720 | ||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | (11,959 | ) | — | — | — | |||||||||
Total | $ | 50,803 | $ | (11,959 | ) | $ | (12,419 | ) | $ | — | $ | 26,425 |
(1) | Adjustments: |
A - Removes share-based compensation related to the Formation Transaction and special equity awards. |
B - Removes $12.4 million of G&A expenses reimbursed by third-party owners of real estate we manage related to revenue which has been excluded from Service Revenue on page 18. Revenue from reimbursements is included in "Third-party real estate services, including reimbursements" in our consolidated statement of operations. |
C - Reflects an adjustment to allocate our share of G&A expenses of unconsolidated real estate ventures from "Third-party real estate services" to "Corporate and other" and our consolidated real estate venture partners' share of G&A expenses from "Corporate and other" to "Third-party real estate services." |
Page 19 |
OPERATING ASSETS | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands, at JBG SMITH share | Plus: Signed But Not Yet Commenced Leases | Plus: Lease Up of Recently Delivered Assets (1) | Adjusted Annualized NOI | |||||||||||||||
Q4 2019 NOI | Annualized NOI | |||||||||||||||||
% Occupied | ||||||||||||||||||
Commercial (2) | ||||||||||||||||||
DC | 90.5 | % | $ | 13,924 | $ | 55,696 | $ | 485 | $ | — | $ | 56,181 | ||||||
VA | 87.8 | % | 45,669 | 180,483 | 12,487 | — | 192,970 | |||||||||||
MD | 87.7 | % | 2,406 | 9,624 | 1,252 | — | 10,876 | |||||||||||
Total / weighted average | 88.2 | % | $ | 61,999 | $ | 245,803 | $ | 14,224 | $ | — | $ | 260,027 | ||||||
Multifamily | ||||||||||||||||||
DC | 75.6 | % | $ | 6,847 | $ | 27,388 | $ | 1,975 | $ | 8,922 | $ | 38,285 | ||||||
VA | 94.0 | % | 12,081 | 48,324 | — | — | 48,324 | |||||||||||
MD | 93.1 | % | 1,673 | 6,692 | — | — | 6,692 | |||||||||||
Total / weighted average | 87.2 | % | $ | 20,601 | $ | 82,404 | $ | 1,975 | $ | 8,922 | $ | 93,301 | ||||||
Total / Weighted Average | 87.9 | % | $ | 82,600 | $ | 328,207 | $ | 16,199 | $ | 8,922 | $ | 353,328 |
(1) | Incremental multifamily revenue of a recently delivered multifamily assets calculated as the product of units available for occupancy up to 95.0% occupancy and the weighted average monthly market rent per unit as of December 31, 2019, multiplied by 12. Excludes potential revenue from vacant retail space in recently delivered multifamily assets. |
(2) | Crystal City Marriott and 1700 M Street are excluded from the percent occupied metric. |
Page 20 |
SUMMARY & SAME STORE NOI (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | 100% Share | At JBG SMITH Share | ||||||||||||||||||||||||
NOI for the Three Months Ended December 31, | ||||||||||||||||||||||||||
Number of Assets | Square Feet/Units | Square Feet/Units | % Leased (1) | % Occupied (1) | 2019 | 2018 | % Change | |||||||||||||||||||
Same Store (2) | ||||||||||||||||||||||||||
DC | 13 | 2,494,920 SF/ 1,541 Units | 1,781,199 SF/ 857 Units | 92.6 | % | 91.4 | % | $ | 17,699 | $ | 18,373 | (3.7 | )% | |||||||||||||
VA | 32 | 8,592,603 SF/ 3,202 Units | 7,715,813 SF/ 2,891 Units | 92.1 | % | 88.8 | % | 53,169 | 52,159 | 1.9 | % | |||||||||||||||
MD | 9 | 553,484 SF/ 1,287 Units | 502,111 SF/ 498 Units | 93.3 | % | 90.2 | % | 4,079 | 3,531 | 15.5 | % | |||||||||||||||
Total / weighted average | 54 | 11,641,007 SF/ 6,030 Units | 9,999,123 SF/ 4,246 Units | 92.3 | % | 89.4 | % | $ | 74,947 | $ | 74,063 | 1.2 | % | |||||||||||||
Non-Same Store (3) | ||||||||||||||||||||||||||
DC | 5 | 249,213 SF/ 1,081 Units | 139,444 SF/ 1,081 Units | 67.8 | % | 64.3 | % | $ | 3,072 | $ | 4,969 | (38.2 | )% | |||||||||||||
VA | 3 | 845,849 SF | 569,631 SF | 96.6 | % | 96.4 | % | 4,581 | 6,297 | (27.3 | )% | |||||||||||||||
MD | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total / weighted average | 8 | 1,095,062 SF/ 1,081 Units | 709,075 SF/ 1,081 Units | 78.3 | % | 76.2 | % | $ | 7,653 | $ | 11,266 | (32.1 | )% | |||||||||||||
Total Operating Portfolio | ||||||||||||||||||||||||||
DC | 18 | 2,744,133 SF/ 2,622 Units | 1,920,643 SF/ 1,938 Units | 85.8 | % | 83.7 | % | $ | 20,771 | $ | 23,342 | (11.0 | )% | |||||||||||||
VA | 35 | 9,438,452 SF/ 3,202 Units | 8,285,444 SF/ 2,891 Units | 92.4 | % | 89.2 | % | 57,750 | 58,456 | (1.2 | )% | |||||||||||||||
MD | 9 | 553,484 SF/ 1,287 Units | 502,111 SF/ 498 Units | 93.3 | % | 90.2 | % | 4,079 | 3,531 | 15.5 | % | |||||||||||||||
Operating Portfolio - Total / Weighted Average | 62 | 12,736,069 SF/ 7,111 Units | 10,708,198 SF/ 5,327 Units | 90.8 | % | 87.9 | % | $ | 82,600 | $ | 85,329 | (3.2 | )% |
(1) | Crystal City Marriott and 1700 M Street are excluded from the percent leased and percent occupied metrics. |
(2) | Same store refers to the pool of assets that were in service 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. |
(3) | The decrease in non-same store NOI is primarily attributable to lost income from disposed assets. |
Page 21 |
SUMMARY & SAME STORE NOI (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | 100% Share | At JBG SMITH Share | ||||||||||||||||||||||||
NOI for the Year Ended December 31, | ||||||||||||||||||||||||||
Number of Assets | Square Feet/Units | Square Feet/Units | % Leased (1) | % Occupied (1) | 2019 | 2018 | % Change | |||||||||||||||||||
Same Store (2) | ||||||||||||||||||||||||||
DC | 13 | 2,494,920 SF/ 1,541 Units | 1,781,199 SF/ 857 Units | 92.6 | % | 91.4 | % | $ | 70,258 | $ | 76,735 | (8.4 | )% | |||||||||||||
VA | 31 | 8,552,578 SF/ 3,202 Units | 7,675,788 SF/ 2,891 Units | 92.1 | % | 88.8 | % | 205,439 | 222,457 | (7.7 | )% | |||||||||||||||
MD | 9 | 553,484 SF/ 1,287 Units | 502,111 SF/ 498 Units | 93.3 | % | 90.2 | % | 16,566 | 14,943 | 10.9 | % | |||||||||||||||
Total / weighted average | 53 | 11,600,982 SF/ 6,030 Units | 9,959,098 SF/ 4,246 Units | 92.3 | % | 89.4 | % | $ | 292,263 | $ | 314,135 | (7.0 | )% | |||||||||||||
Non-Same Store (3) | ||||||||||||||||||||||||||
DC | 5 | 249,213 SF/ 1,081 Units | 139,444 SF/ 1,081 Units | 67.8 | % | 64.3 | % | $ | 7,950 | $ | 23,961 | (66.8 | )% | |||||||||||||
VA | 4 | 885,874 SF | 609,656 SF | 96.3 | % | 96.4 | % | 19,348 | 27,685 | (30.1 | )% | |||||||||||||||
MD | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total / weighted average | 9 | 1,135,087 SF/ 1,081 Units | 749,100 SF/ 1,081 Units | 78.6 | % | 76.2 | % | $ | 27,298 | $ | 51,646 | (47.1 | )% | |||||||||||||
Total Operating Portfolio | ||||||||||||||||||||||||||
DC | 18 | 2,744,133 SF/ 2,622 Units | 1,920,643 SF/ 1,938 Units | 85.8 | % | 83.7 | % | $ | 78,208 | $ | 100,696 | (22.3 | )% | |||||||||||||
VA | 35 | 9,438,452 SF/ 3,202 Units | 8,285,444 SF/ 2,891 Units | 92.4 | % | 89.2 | % | 224,787 | 250,142 | (10.1 | )% | |||||||||||||||
MD | 9 | 553,484 SF/ 1,287 Units | 502,111 SF/ 498 Units | 93.3 | % | 90.2 | % | 16,566 | 14,943 | 10.9 | % | |||||||||||||||
Operating Portfolio - Total / Weighted Average | 62 | 12,736,069 SF/ 7,111 Units | 10,708,198 SF/ 5,327 Units | 90.8 | % | 87.9 | % | $ | 319,561 | $ | 365,781 | (12.6 | )% |
Page 22 |
SUMMARY NOI (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended December 31, 2019 at JBG SMITH Share | |||||||||||||||
Consolidated (6) (7) | Unconsolidated (8) | Commercial (6) (8) | Multifamily (7) | Total | ||||||||||||
Number of operating assets | 44 | 18 | 44 | 18 | 62 | |||||||||||
Property rentals (1) | $ | 100,681 | $ | 14,843 | $ | 85,992 | $ | 29,532 | $ | 115,524 | ||||||
Tenant expense reimbursement | 10,480 | 1,139 | 9,433 | 2,186 | 11,619 | |||||||||||
Other revenue | 8,711 | 1,204 | 8,044 | 1,871 | 9,915 | |||||||||||
Total revenue | 119,872 | 17,186 | 103,469 | 33,589 | 137,058 | |||||||||||
Operating expenses | (46,623 | ) | (7,456 | ) | (41,096 | ) | (12,983 | ) | (54,079 | ) | ||||||
Ground rent expense | (374 | ) | (5 | ) | (374 | ) | (5 | ) | (379 | ) | ||||||
Total expenses | (46,997 | ) | (7,461 | ) | (41,470 | ) | (12,988 | ) | (54,458 | ) | ||||||
NOI (1) | $ | 72,875 | $ | 9,725 | $ | 61,999 | $ | 20,601 | $ | 82,600 | ||||||
Annualized NOI | $ | 289,307 | $ | 38,900 | $ | 245,803 | $ | 82,404 | $ | 328,207 | ||||||
Additional Information | ||||||||||||||||
Free rent (at 100% share) | $ | 8,106 | $ | 971 | $ | 8,445 | $ | 632 | $ | 9,077 | ||||||
Free rent (at JBG SMITH share) | $ | 8,106 | $ | 298 | $ | 7,905 | $ | 499 | $ | 8,404 | ||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 32,424 | $ | 1,192 | $ | 31,620 | $ | 1,996 | $ | 33,616 | ||||||
Payments associated with assumed lease liabilities (at 100% share) | $ | 1,450 | $ | — | $ | 1,450 | $ | — | $ | 1,450 | ||||||
Payments associated with assumed lease liabilities (at JBG SMITH share) | $ | 1,450 | $ | — | $ | 1,450 | $ | — | $ | 1,450 | ||||||
Annualized payments associated with assumed lease liabilities (at JBG SMITH share)(3) | $ | 5,800 | $ | — | $ | 5,800 | $ | — | $ | 5,800 | ||||||
% occupied (at JBG SMITH share) (4) | 87.6 | % | 91.0 | % | 88.2 | % | 87.2 | % | 87.9 | % | ||||||
Annualized base rent of signed leases, not commenced (at 100% share) (5) | $ | 15,702 | $ | 1,318 | $ | 15,045 | $ | 1,975 | $ | 17,020 | ||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (5) | $ | 15,702 | $ | 497 | $ | 14,224 | $ | 1,975 | $ | 16,199 |
(1) | Property rentals excludes straight-line rent adjustments, and other GAAP adjustments, and include payments associated with assumed lease liabilities. NOI excludes approximately $4.3 million of related party management fees at JBG SMITH's share. See definition of NOI on page 51. |
(2) | Represents JBG SMITH's share of free rent for the three months ended December 31, 2019 multiplied by four. |
(3) | Represents JBG SMITH's share of payments associated with assumed lease liabilities for the three months ended December 31, 2019 multiplied by four. |
(4) | Crystal City Marriott and 1700 M Street are excluded from the percent occupied metric. |
(5) | 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. Includes only leases for office and retail spaces that were vacant as of December 31, 2019. |
(6) | Includes $0.3 million of annualized NOI from Vienna Retail, which was sold in December 2019. |
(7) | Includes $1.5 million of annualized NOI from F1RST Residences, which was acquired in December 2019. If the asset was owned for the entire quarter, we estimate the annualized NOI from F1RST Residences would have been $7.0 million. |
(8) | Includes $7.3 million of annualized NOI from the 50% interest in Central Place Tower, which was sold in December 2019. |
Page 23 |
SUMMARY NOI - COMMERCIAL (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended December 31, 2019 at JBG SMITH Share | ||||||||||||||||||
Consolidated (6) | Unconsolidated (7) | DC | VA (6) (7) | MD | Total | ||||||||||||||
Number of operating assets | 32 | 12 | 10 | 30 | 4 | 44 | |||||||||||||
Property rentals (1) | $ | 73,395 | $ | 12,597 | $ | 19,841 | $ | 62,515 | $ | 3,636 | $ | 85,992 | |||||||
Tenant expense reimbursement | 8,404 | 1,029 | 3,174 | 6,014 | 245 | 9,433 | |||||||||||||
Other revenue | 6,964 | 1,080 | 1,620 | 5,875 | 549 | 8,044 | |||||||||||||
Total revenue | 88,763 | 14,706 | 24,635 | 74,404 | 4,430 | 103,469 | |||||||||||||
Operating expenses | (34,511 | ) | (6,585 | ) | (10,511 | ) | (28,789 | ) | (1,796 | ) | (41,096 | ) | |||||||
Ground rent expense | (374 | ) | — | (200 | ) | 54 | (228 | ) | (374 | ) | |||||||||
Total expenses | (34,885 | ) | (6,585 | ) | (10,711 | ) | (28,735 | ) | (2,024 | ) | (41,470 | ) | |||||||
NOI (1) | $ | 53,878 | $ | 8,121 | $ | 13,924 | $ | 45,669 | $ | 2,406 | $ | 61,999 | |||||||
Annualized NOI | $ | 213,319 | $ | 32,484 | $ | 55,696 | $ | 180,483 | $ | 9,624 | $ | 245,803 | |||||||
Additional Information | |||||||||||||||||||
Free rent (at 100% share) | $ | 7,639 | $ | 806 | $ | 927 | $ | 7,030 | $ | 488 | $ | 8,445 | |||||||
Free rent (at JBG SMITH share) | $ | 7,639 | $ | 266 | $ | 589 | $ | 6,886 | $ | 430 | $ | 7,905 | |||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 30,556 | $ | 1,064 | $ | 2,356 | $ | 27,544 | $ | 1,720 | $ | 31,620 | |||||||
Payments associated with assumed lease liabilities (at 100% share) | $ | 1,450 | $ | — | $ | — | $ | 1,450 | $ | — | $ | 1,450 | |||||||
Payments associated with assumed lease liabilities (at JBG SMITH share) | $ | 1,450 | $ | — | $ | — | $ | 1,450 | $ | — | $ | 1,450 | |||||||
Annualized payments associated with assumed lease liabilities (at JBG SMITH share) (3) | $ | 5,800 | $ | — | $ | — | $ | 5,800 | $ | — | $ | 5,800 | |||||||
% occupied (at JBG SMITH share) (4) | 88.0 | % | 90.1 | % | 90.5 | % | 87.8 | % | 87.7 | % | 88.2 | % | |||||||
Annualized base rent of signed leases, not commenced (at 100% share) (5) | $ | 13,727 | $ | 1,318 | $ | 1,201 | $ | 12,592 | $ | 1,252 | $ | 15,045 | |||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (5) | $ | 13,727 | $ | 497 | $ | 485 | $ | 12,487 | $ | 1,252 | $ | 14,224 |
(1) | Property rentals excludes straight-line rent adjustments, and other GAAP adjustments, and include payments associated with assumed lease liabilities. NOI excludes approximately $3.2 million of related party management fees at JBG SMITH's share. See definition of NOI on page 51. |
(2) | Represents JBG SMITH's share of free rent for the three months ended December 31, 2019 multiplied by four. |
(3) | Represents JBG SMITH's share of payments associated with assumed lease liabilities for the three months ended December 31, 2019 multiplied by four. |
(4) | Crystal City Marriott and 1700 M Street are excluded from the percent occupied metric. |
(5) | 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. Includes only leases for office and retail spaces that were vacant as of December 31, 2019. |
(6) | Includes $0.3 million of annualized NOI from Vienna Retail, which was sold in December 2019. |
(7) | Includes $7.3 million of annualized NOI from the 50% interest in Central Place Tower, which was sold in December 2019. |
Page 24 |
SUMMARY NOI - MULTIFAMILY (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended December 31, 2019 at JBG SMITH Share | ||||||||||||||||||
Consolidated (5) | Unconsolidated | DC (5) | VA | MD | Total | ||||||||||||||
Number of operating assets | 12 | 6 | 8 | 5 | 5 | 18 | |||||||||||||
Property rentals (1) | $ | 27,286 | $ | 2,246 | $ | 10,086 | $ | 17,014 | $ | 2,432 | $ | 29,532 | |||||||
Tenant expense reimbursement | 2,076 | 110 | 833 | 1,282 | 71 | 2,186 | |||||||||||||
Other revenue | 1,747 | 124 | 699 | 1,021 | 151 | 1,871 | |||||||||||||
Total revenue | 31,109 | 2,480 | 11,618 | 19,317 | 2,654 | 33,589 | |||||||||||||
Operating expenses | (12,112 | ) | (871 | ) | (4,771 | ) | (7,236 | ) | (976 | ) | (12,983 | ) | |||||||
Ground rent expense | — | (5 | ) | — | — | (5 | ) | (5 | ) | ||||||||||
Total expenses | (12,112 | ) | (876 | ) | (4,771 | ) | (7,236 | ) | (981 | ) | (12,988 | ) | |||||||
NOI (1) | $ | 18,997 | $ | 1,604 | $ | 6,847 | $ | 12,081 | $ | 1,673 | $ | 20,601 | |||||||
Annualized NOI | $ | 75,988 | $ | 6,416 | $ | 27,388 | $ | 48,324 | $ | 6,692 | $ | 82,404 | |||||||
Additional Information | |||||||||||||||||||
Free rent (at 100% share) | $ | 467 | $ | 165 | $ | 348 | $ | 249 | $ | 35 | $ | 632 | |||||||
Free rent (at JBG SMITH share) | $ | 467 | $ | 32 | $ | 264 | $ | 233 | $ | 2 | $ | 499 | |||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 1,868 | $ | 128 | $ | 1,056 | $ | 932 | $ | 8 | $ | 1,996 | |||||||
Payments associated with assumed lease liabilities (at 100% share) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Payments associated with assumed lease liabilities (at JBG SMITH share) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
Annualized payments associated with assumed lease liabilities (at JBG SMITH share) (3) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||
% occupied (at JBG SMITH share) | 86.7 | % | 94.1 | % | 75.6 | % | 94.0 | % | 93.1 | % | 87.2 | % | |||||||
Annualized base rent of signed leases, not commenced (at 100% share) (4) | $ | 1,975 | — | $ | 1,975 | — | — | $ | 1,975 | ||||||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (4) | $ | 1,975 | — | $ | 1,975 | — | — | $ | 1,975 |
(1) | Property rentals excludes straight-line rent adjustments, and other GAAP adjustments, and include payments associated with assumed lease liabilities. NOI excludes approximately $1.1 million of related party management fees at JBG SMITH's share. See definition of NOI on page 51. |
(2) | Represents JBG SMITH's share of free rent for the three months ended December 31, 2019 multiplied by four. |
(3) | Represents JBG SMITH's share of payments associated with assumed lease liabilities for the three months ended December 31, 2019 multiplied by four. |
(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. Includes only leases for office and retail spaces that were vacant as of December 31, 2019. |
(5) | Includes $1.5 million of annualized NOI from F1RST Residences, which was acquired in December 2019. If the asset was owned for the entire quarter, we estimate the annualized NOI from F1RST Residences would have been $7.0 million. |
Page 25 |
NOI RECONCILIATIONS (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income attributable to common shareholders | $ | 34,390 | $ | 710 | $ | 65,571 | $ | 39,924 | |||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 50,004 | 67,556 | 191,580 | 211,436 | |||||||||||
General and administrative expense: | |||||||||||||||
Corporate and other | 11,934 | 8,512 | 46,822 | 33,728 | |||||||||||
Third-party real estate services | 26,910 | 25,274 | 113,495 | 89,826 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,118 | 42,162 | 36,030 | |||||||||||
Transaction and other costs | 13,307 | 15,572 | 23,235 | 27,706 | |||||||||||
Interest expense | 11,831 | 18,184 | 52,695 | 74,447 | |||||||||||
Loss on extinguishment of debt | 3,916 | 617 | 5,805 | 5,153 | |||||||||||
Reduction of gain on bargain purchase | — | — | — | 7,606 | |||||||||||
Income tax expense (benefit) | (613 | ) | 698 | (1,302 | ) | (738 | ) | ||||||||
Net income attributable to redeemable noncontrolling interests | 4,302 | 178 | 8,573 | 6,710 | |||||||||||
Less: | |||||||||||||||
Third-party real estate services, including reimbursements | 29,121 | 26,421 | 120,886 | 98,699 | |||||||||||
Other revenue (1) | 1,686 | 1,454 | 7,638 | 6,358 | |||||||||||
Income (loss) from unconsolidated real estate ventures, net | (2,042 | ) | 23,991 | (1,395 | ) | 39,409 | |||||||||
Interest and other income, net | 3,022 | 9,991 | 5,385 | 15,168 | |||||||||||
Gain on sale of real estate | 57,870 | 6,394 | 104,991 | 52,183 | |||||||||||
Net income (loss) attributable to noncontrolling interests | — | (106 | ) | — | 21 | ||||||||||
Consolidated NOI | 78,283 | 78,274 | 311,131 | 319,990 | |||||||||||
NOI attributable to unconsolidated real estate ventures at our share | 6,052 | 8,741 | 21,797 | 36,684 | |||||||||||
Non-cash rent adjustments (2) | (8,465 | ) | (6,691 | ) | (34,359 | ) | (10,349 | ) | |||||||
Other adjustments (3) | 3,913 | 3,915 | 13,979 | 15,061 | |||||||||||
Total adjustments | 1,500 | 5,965 | 1,417 | 41,396 | |||||||||||
NOI | $ | 79,783 | $ | 84,239 | $ | 312,548 | $ | 361,386 | |||||||
Less: out-of-service NOI loss (4) | (2,817 | ) | (1,090 | ) | (7,013 | ) | (4,395 | ) | |||||||
Operating Portfolio NOI | $ | 82,600 | $ | 85,329 | $ | 319,561 | $ | 365,781 | |||||||
Non-same store NOI (5) | 7,653 | 11,266 | 27,298 | 51,646 | |||||||||||
Same store NOI (6) | $ | 74,947 | $ | 74,063 | $ | 292,263 | $ | 314,135 | |||||||
Change in same store NOI | 1.2 | % | (7.0 | )% | |||||||||||
Number of properties in same store pool | 54 | 53 |
(1) | Excludes parking revenue of $6.5 million and $6.3 million for the three months ended December 31, 2019 and 2018, and $26.0 million and $25.7 million for the year ended December 31, 2019 and 2018. |
(2) | Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization. |
(3) | Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue and allocated corporate general and administrative expenses to operating properties. |
(4) | Includes the results for our Under Construction assets and Future Development Pipeline. |
(5) | Includes the results for properties that were not in service for the entirety of both periods being compared and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. The decrease in non-same store NOI is primarily attributable to lost income from disposed assets. |
(6) | Includes the results of the properties that are in service for the entirety of both periods being compared except for properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. |
Page 26 |
LEASING ACTIVITY - OFFICE | DECEMBER 31, 2019 (Unaudited) |
square feet in thousands | Three Months Ended December 31, 2019 | Year Ended December 31, 2019 | |||||
Square feet leased: | |||||||
At 100% share | 843 | 2,348 | |||||
At JBG SMITH share | 724 | 2,147 | |||||
Initial rent (1) | $ | 46.61 | $ | 45.61 | |||
Straight-line rent (2) | $ | 47.38 | $ | 46.31 | |||
Weighted average lease term (years) | 5.2 | 5.2 | |||||
Weighted average free rent period (months) | 1.7 | 2.6 | |||||
Second generation space: | 173 | 938 | |||||
Square feet | 551 | 1,209 | |||||
Cash basis: | |||||||
Initial rent (1) | $ | 45.67 | $ | 45.22 | |||
Prior escalated rent | $ | 42.43 | $ | 43.67 | |||
% change | 7.6 | % | 3.5 | % | |||
GAAP basis: | |||||||
Straight-line rent (2) | $ | 45.91 | $ | 45.10 | |||
Prior straight-line rent | $ | 39.75 | $ | 41.13 | |||
% change | 15.5 | % | 9.7 | % | |||
Tenant improvements: | |||||||
Per square foot | $ | 28.80 | $ | 32.43 | |||
Per square foot per annum | $ | 5.59 | $ | 6.29 | |||
% of initial rent | 12.0 | % | 13.8 | % | |||
Leasing commissions: | |||||||
Per square foot | $ | 5.91 | $ | 5.17 | |||
Per square foot per annum | $ | 1.15 | $ | 1.00 | |||
% of initial rent | 2.5 | % | 2.2 | % |
(1) | Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to monthly base rent. 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 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 27 |
NET EFFECTIVE RENT - OFFICE | DECEMBER 31, 2019 (Unaudited) |
square feet in thousands, dollars per square feet, at JBG SMITH share | Trailing Five Quarter Average | Three Months Ended | |||||||||||||||||||||
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||||||
Square feet | 577 | 724 | 243 | 395 | 785 | 741 | |||||||||||||||||
Weighted average lease term (years) | 6.1 | 5.2 | 4.4 | 5.2 | 5.4 | 10.2 | |||||||||||||||||
Initial rent (1) | $ | 45.50 | $ | 46.61 | $ | 45.99 | $ | 44.82 | $ | 44.97 | $ | 45.08 | |||||||||||
Base rent per annum (2) | $ | 51.41 | $ | 51.09 | $ | 48.40 | $ | 50.73 | $ | 49.34 | $ | 57.48 | |||||||||||
Tenant improvements per annum | (6.36 | ) | (5.59 | ) | (7.54 | ) | (4.80 | ) | (7.32 | ) | (6.54 | ) | |||||||||||
Leasing commissions per annum | (1.20 | ) | (1.15 | ) | (0.93 | ) | (1.22 | ) | (0.79 | ) | (1.93 | ) | |||||||||||
Free rent per annum | (2.46 | ) | (1.28 | ) | (3.02 | ) | (2.42 | ) | (1.89 | ) | (3.69 | ) | |||||||||||
Net Effective Rent | $ | 41.39 | $ | 43.07 | $ | 36.91 | $ | 42.29 | $ | 39.34 | $ | 45.32 | |||||||||||
DC | |||||||||||||||||||||||
Square feet | 51 | 117 | 12 | 21 | 33 | 72 | |||||||||||||||||
Initial rent (1) | $ | 61.71 | $ | 50.16 | $ | 63.45 | $ | 65.10 | $ | 53.40 | $ | 76.45 | |||||||||||
Net effective rent | $ | 57.89 | $ | 48.03 | $ | 65.02 | $ | 66.17 | $ | 39.41 | $ | 70.85 | |||||||||||
VA | |||||||||||||||||||||||
Square feet | 501 | 579 | 211 | 338 | 717 | 658 | |||||||||||||||||
Initial rent (1) | $ | 43.89 | $ | 45.59 | $ | 44.63 | $ | 43.38 | $ | 44.03 | $ | 41.83 | |||||||||||
Net effective rent | $ | 39.06 | $ | 41.63 | $ | 34.66 | $ | 38.96 | $ | 38.18 | $ | 41.85 | |||||||||||
MD | |||||||||||||||||||||||
Square feet | 26 | 27 | 20 | 36 | 35 | 10 | |||||||||||||||||
Initial rent (1) | $ | 47.59 | $ | 52.98 | $ | 49.73 | $ | 46.62 | $ | 56.36 | $ | 32.24 | |||||||||||
Net effective rent | $ | 41.07 | $ | 44.86 | $ | 34.55 | $ | 40.22 | $ | 58.53 | $ | 27.21 |
(1) | Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to monthly base rent. Most leases include free rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot. |
(2) | Represents the weighted average base rent before free rent, plus estimated tenant reimbursements that is recognized over the term of the respective leases, including the effect of fixed step-ups in rent, divided by square feet, and divided by years of lease term. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to base rent. Tenant reimbursements are estimated by escalating tenant reimbursements as of the respective reporting period, or management’s estimate thereof, by 2.75% annually through the lease expiration year. |
Page 28 |
LEASE EXPIRATIONS | DECEMBER 31, 2019 (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 | 62 | 158,441 | 1.7 | % | $ | 5,049 | 1.2 | % | $ | 31.87 | $ | 31.87 | ||||||||||||
2020 | 160 | 1,051,182 | 11.1 | % | 42,275 | 10.2 | % | 40.22 | 40.62 | |||||||||||||||
2021 | 116 | 989,425 | 10.4 | % | 46,014 | 11.1 | % | 46.51 | 48.11 | |||||||||||||||
2022 | 104 | 1,539,568 | 16.2 | % | 66,996 | 16.1 | % | 43.52 | 45.65 | |||||||||||||||
2023 | 91 | 553,972 | 5.8 | % | 24,274 | 5.8 | % | 43.82 | 47.32 | |||||||||||||||
2024 | 97 | 1,047,902 | 11.0 | % | 48,004 | 11.5 | % | 45.81 | 49.99 | |||||||||||||||
2025 | 76 | 608,702 | 6.4 | % | 25,315 | 6.1 | % | 41.59 | 46.98 | |||||||||||||||
2026 | 55 | 265,397 | 2.8 | % | 11,607 | 2.8 | % | 43.73 | 50.36 | |||||||||||||||
2027 | 49 | 455,115 | 4.8 | % | 20,166 | 4.8 | % | 44.31 | 52.37 | |||||||||||||||
2028 | 45 | 386,045 | 4.1 | % | 17,902 | 4.3 | % | 46.37 | 55.62 | |||||||||||||||
Thereafter | 99 | 2,440,276 | 25.7 | % | 108,449 | 26.1 | % | 44.44 | 56.84 | |||||||||||||||
Total / Weighted Average | 954 | 9,496,025 | 100.0 | % | $ | 416,051 | 100.0 | % | $ | 43.81 | $ | 49.52 |
(1) | Represents 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 December 31, 2019, or management’s estimate thereof, by 2.75% annually through the lease expiration year. |
Page 29 |
SIGNED BUT NOT YET COMMENCED LEASES | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands, at JBG SMITH share | ||||||||||||||||||||||||||||||
Total Annualized Estimated Rent (3) | Estimated Rent (1) for the Quarter Ending | |||||||||||||||||||||||||||||
Assets | C/U (2) | March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | |||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||
Operating | C | $ | 13,728 | $ | 595 | $ | 1,438 | $ | 3,144 | $ | 3,148 | $ | 3,110 | $ | 3,228 | |||||||||||||||
Operating | U | 496 | 34 | 50 | 123 | 124 | 124 | 124 | ||||||||||||||||||||||
Under construction (4) | C | 31,512 | 4,254 | 4,296 | 4,385 | 6,604 | 7,878 | 7,878 | ||||||||||||||||||||||
Under construction | U | 9,368 | 1,175 | 1,638 | 1,696 | 1,855 | 1,855 | 2,012 | ||||||||||||||||||||||
Total | $ | 55,104 | $ | 6,058 | $ | 7,422 | $ | 9,348 | $ | 11,731 | $ | 12,967 | $ | 13,242 | ||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||
Operating | C | $ | 1,980 | $ | 332 | $ | 426 | $ | 495 | $ | 495 | $ | 495 | $ | 495 | |||||||||||||||
Under construction | C | 2,472 | 469 | 618 | 618 | 618 | 618 | 618 | ||||||||||||||||||||||
Under construction | U | 500 | — | 24 | 36 | 125 | 125 | 125 | ||||||||||||||||||||||
Total | $ | 4,952 | $ | 801 | $ | 1,068 | $ | 1,149 | $ | 1,238 | $ | 1,238 | $ | 1,238 | ||||||||||||||||
Total | $ | 60,056 | $ | 6,859 | $ | 8,490 | $ | 10,497 | $ | 12,969 | $ | 14,205 | $ | 14,480 |
(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. |
(4) | Includes annualized estimated rent of $4.8 million from JBG SMITH's lease at 4747 Bethesda Avenue. |
Page 30 |
TENANT CONCENTRATION | DECEMBER 31, 2019 (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) | 67 | 2,447,892 | 25.8 | % | $ | 97,169 | 23.4 | % | |||||||||
2 | Family Health International | 3 | 295,977 | 3.1 | % | 15,311 | 3.7 | % | ||||||||||
3 | Amazon | 3 | 326,665 | 3.4 | % | 14,130 | 3.4 | % | ||||||||||
4 | Gartner, Inc | 1 | 174,424 | 1.8 | % | 11,360 | 2.7 | % | ||||||||||
5 | Lockheed Martin Corporation | 2 | 232,598 | 2.4 | % | 10,860 | 2.6 | % | ||||||||||
6 | Arlington County | 2 | 235,779 | 2.5 | % | 9,908 | 2.4 | % | ||||||||||
7 | WeWork (1) | 2 | 163,918 | 1.7 | % | 8,543 | 2.1 | % | ||||||||||
8 | Greenberg Traurig LLP | 1 | 101,602 | 1.1 | % | 7,304 | 1.8 | % | ||||||||||
9 | Accenture LLP | 2 | 116,736 | 1.2 | % | 6,763 | 1.6 | % | ||||||||||
10 | Public Broadcasting Service | 1 | 140,885 | 1.5 | % | 5,186 | 1.2 | % | ||||||||||
11 | Chemonics International | 2 | 111,520 | 1.2 | % | 4,517 | 1.1 | % | ||||||||||
12 | Evolent Health LLC | 1 | 90,905 | 1.0 | % | 4,319 | 1.0 | % | ||||||||||
13 | Conservation International Foundation | 1 | 86,981 | 0.9 | % | 4,060 | 1.0 | % | ||||||||||
14 | U.S. Green Building Council | 1 | 54,675 | 0.6 | % | 3,996 | 1.0 | % | ||||||||||
15 | The International Justice Mission | 1 | 74,481 | 0.8 | % | 3,903 | 0.9 | % | ||||||||||
16 | Cushman & Wakefield U.S. Inc | 1 | 58,641 | 0.6 | % | 3,875 | 0.9 | % | ||||||||||
17 | The Urban Institute | 1 | 68,620 | 0.7 | % | 3,702 | 0.9 | % | ||||||||||
18 | Booz Allen Hamilton Inc | 2 | 94,366 | 1.0 | % | 3,613 | 0.9 | % | ||||||||||
19 | American Diabetes Association | 1 | 80,998 | 0.9 | % | 3,420 | 0.8 | % | ||||||||||
20 | DRS Tech Inc dba Finmeccanica | 2 | 74,649 | 0.8 | % | 3,366 | 0.8 | % | ||||||||||
Other | 857 | 4,463,713 | 47.0 | % | 190,746 | 45.8 | % | |||||||||||
Total | 954 | 9,496,025 | 100.0 | % | $ | 416,051 | 100.0 | % |
Page 31 |
INDUSTRY DIVERSITY | DECEMBER 31, 2019 (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 | 80 | 2,754,962 | 29.0 | % | $ | 110,348 | 26.5 | % | |||||||||
2 | Government Contractors | 89 | 1,553,140 | 16.4 | % | 69,842 | 16.8 | % | ||||||||||
3 | Business Services | 136 | 1,443,914 | 15.2 | % | 68,412 | 16.4 | % | ||||||||||
4 | Member Organizations | 77 | 922,713 | 9.7 | % | 44,494 | 10.7 | % | ||||||||||
5 | Real Estate | 50 | 492,085 | 5.2 | % | 23,379 | 5.6 | % | ||||||||||
6 | Legal Services | 41 | 276,589 | 2.9 | % | 15,107 | 3.6 | % | ||||||||||
7 | Health Services | 47 | 365,082 | 3.8 | % | 14,767 | 3.5 | % | ||||||||||
8 | Food and Beverage | 118 | 250,561 | 2.6 | % | 14,040 | 3.4 | % | ||||||||||
9 | Communications | 11 | 194,253 | 2.0 | % | 7,425 | 1.8 | % | ||||||||||
10 | Educational Services | 15 | 94,262 | 1.0 | % | 4,141 | 1.0 | % | ||||||||||
Other | 290 | 1,148,464 | 12.2 | % | 44,096 | 10.7 | % | |||||||||||
Total | 954 | 9,496,025 | 100.0 | % | $ | 416,051 | 100.0 | % |
Page 32 |
PORTFOLIO SUMMARY | DECEMBER 31, 2019 (Unaudited) |
Number of Assets | Rentable Square Feet | Number of Units (1) | Estimated Potential Development Density (2) | |||||||||
Wholly Owned | ||||||||||||
Operating | 44 | 13,946,845 | 5,003 | — | ||||||||
Under construction | 4 | 897,342 | 256 | — | ||||||||
Future development | 24 | — | — | 17,913,500 | ||||||||
Total | 72 | 14,844,187 | 5,259 | 17,913,500 | ||||||||
Real Estate Ventures | ||||||||||||
Operating | 18 | 5,014,349 | 2,108 | — | ||||||||
Under construction | 3 | 966,550 | 755 | — | ||||||||
Future development | 16 | — | — | 4,007,700 | ||||||||
Total | 37 | 5,980,899 | 2,863 | 4,007,700 | ||||||||
Total Portfolio | 109 | 20,825,086 | 8,122 | 21,921,200 | ||||||||
Total Portfolio (at JBG SMITH Share) | 109 | 16,822,431 | 6,160 | 18,667,300 |
(1) | For assets under construction, represents estimated number of units based on current design plans. |
(2) | Includes estimated potential office, multifamily and retail development density. |
Page 33 |
PROPERTY TABLE - COMMERCIAL | DECEMBER 31, 2019 (Unaudited) |
Commercial Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2018-2019 / YTD 2018-2019 | 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 | 1956 / 1990 | 659,809 | 568,734 | 91,075 | 97.4 | % | 97.1 | % | 99.6 | % | $ | 32,929 | $ | 50.59 | $ | 55.03 | ||||||
2101 L Street | CBD | 100.0 | % | C | Y / Y | 1975 / 2007 | 378,696 | 347,376 | 31,320 | 84.8 | % | 84.1 | % | 92.6 | % | 21,550 | 68.07 | 56.99 | |||||||||
1730 M Street (5) | CBD | 100.0 | % | C | Y / Y | 1964 / 1998 | 204,746 | 196,728 | 8,018 | 88.5 | % | 88.0 | % | 100.0 | % | 8,638 | 47.59 | 49.94 | |||||||||
1700 M Street | CBD | 100.0 | % | C | N / N | N/A | 34,000 | — | — | — | — | — | — | — | — | ||||||||||||
L’Enfant Plaza Office-East (5) | Southwest | 49.0 | % | U | Y / Y | 1972 / 2012 | 397,057 | 397,057 | — | 89.5 | % | 89.5 | % | — | 17,643 | 49.67 | — | ||||||||||
L’Enfant Plaza Office-North | Southwest | 49.0 | % | U | Y / Y | 1969 / 2014 | 298,445 | 278,971 | 19,474 | 96.8 | % | 97.6 | % | 85.9 | % | 12,924 | 46.48 | 16.27 | |||||||||
L’Enfant Plaza Retail (5) | Southwest | 49.0 | % | U | Y / Y | 1968 / 2014 | 119,291 | 16,596 | 102,695 | 73.5 | % | 100.0 | % | 69.2 | % | 4,449 | 36.62 | 54.04 | |||||||||
The Foundry | Georgetown | 9.9 | % | U | Y / Y | 1973 / 2017 | 225,095 | 218,241 | 6,854 | 92.2 | % | 89.4 | % | 100.0 | % | 9,573 | 47.60 | 41.24 | |||||||||
1101 17th Street | CBD | 55.0 | % | U | Y / Y | 1964 / 1999 | 211,781 | 202,023 | 9,758 | 84.4 | % | 84.0 | % | 82.7 | % | 9,444 | 52.34 | 70.08 | |||||||||
VA | |||||||||||||||||||||||||||
Courthouse Plaza 1 and 2 (5) | Clarendon/Courthouse | 100.0 | % | C | Y / Y | 1989 / 2013 | 628,988 | 571,795 | 57,193 | 85.2 | % | 83.8 | % | 100.0 | % | $ | 22,851 | $ | 43.47 | $ | 35.52 | ||||||
2121 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1985 / 2006 | 505,349 | 505,349 | — | 84.3 | % | 84.3 | % | — | 19,814 | 46.52 | — | ||||||||||
2345 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1988 / N/A | 503,178 | 494,191 | 8,987 | 85.7 | % | 83.6 | % | 10.1 | % | 19,088 | 46.20 | 8.73 | |||||||||
2231 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1987 / 2009 | 468,262 | 416,335 | 51,927 | 85.6 | % | 83.1 | % | 100.0 | % | 17,216 | 44.31 | 36.13 | |||||||||
1550 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1980 / 2001 | 449,364 | 449,364 | — | 89.5 | % | 89.5 | % | — | 16,056 | 39.92 | — | ||||||||||
RTC-West (6) | Reston | 100.0 | % | C | Y / Y | 1988 / 2014 | 432,509 | 432,509 | — | 94.5 | % | 94.5 | % | — | 16,391 | 40.10 | — | ||||||||||
RTC-West Retail | Reston | 100.0 | % | C | Y / N | 2017 / N/A | 40,025 | — | 40,025 | 91.9 | % | — | 91.9 | % | 2,438 | — | 66.28 | ||||||||||
2011 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1984 / 2006 | 439,286 | 432,524 | 6,762 | 87.2 | % | 87.0 | % | 49.7 | % | 16,360 | 42.97 | 56.74 | |||||||||
2451 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1990 / N/A | 401,535 | 389,845 | 11,690 | 88.5 | % | 70.4 | % | 95.5 | % | 12,258 | 43.13 | 37.49 | |||||||||
1235 S. Clark Street | National Landing | 100.0 | % | C | Y / Y | 1981 / 2007 | 383,953 | 335,607 | 48,346 | 95.7 | % | 87.7 | % | 100.0 | % | 13,227 | 41.61 | 20.19 | |||||||||
241 18th Street S. | National Landing | 100.0 | % | C | Y / Y | 1977 / 2013 | 360,034 | 333,544 | 26,490 | 94.0 | % | 91.8 | % | 90.2 | % | 12,404 | 38.96 | 20.04 | |||||||||
251 18th Street S. | National Landing | 100.0 | % | C | Y / Y | 1975 / 2013 | 342,333 | 293,162 | 49,171 | 96.9 | % | 95.1 | % | 97.0 | % | 13,165 | 41.58 | 33.01 | |||||||||
1215 S. Clark Street | National Landing | 100.0 | % | C | Y / Y | 1983 / 2002 | 336,159 | 333,546 | 2,613 | 100.0 | % | 100.0 | % | 100.0 | % | 10,968 | 32.62 | 33.51 | |||||||||
201 12th Street S. | National Landing | 100.0 | % | C | Y / Y | 1987 / N/A | 329,607 | 318,482 | 11,125 | 98.5 | % | 98.5 | % | 100.0 | % | 11,837 | 36.30 | 40.79 | |||||||||
800 North Glebe Road | Ballston | 100.0 | % | C | Y / Y | 2012 / N/A | 303,644 | 277,397 | 26,247 | 98.5 | % | 100.0 | % | 82.3 | % | 15,392 | 51.74 | 48.16 | |||||||||
2200 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1968 / 2006 | 283,608 | 283,608 | — | 82.8 | % | 76.2 | % | — | 8,501 | 39.35 | — | ||||||||||
1225 S. Clark Street | National Landing | 100.0 | % | C | Y / Y | 1982 / 2013 | 277,145 | 264,295 | 12,850 | 96.9 | % | 53.5 | % | 100.0 | % | 5,603 | 37.88 | 19.28 | |||||||||
1901 South Bell Street | National Landing | 100.0 | % | C | Y / Y | 1968 / 2008 | 276,987 | 275,063 | 1,924 | 93.3 | % | 93.2 | % | 100.0 | % | 10,491 | 40.84 | 8.52 | |||||||||
Crystal City Marriott (345 Rooms) | National Landing | 100.0 | % | C | Y / Y | 1968 / 2013 | 266,000 | — | — | — | — | — | — | — | — | ||||||||||||
2100 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1968 / 2006 | 249,281 | 249,281 | — | 100.0 | % | 97.4 | % | — | 9,452 | 38.93 | — |
Page 34 |
PROPERTY TABLE - COMMERCIAL | DECEMBER 31, 2019 (Unaudited) |
Commercial Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2018-2019 / YTD 2018-2019 | 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) | |||||||||||||
1800 South Bell Street | National Landing | 100.0 | % | C | N / N | 1969 / 2007 | 215,828 | 191,349 | 24,479 | 100.0 | % | 100.0 | % | 100.0 | % | $ | 8,726 | $ | 44.41 | $ | 9.33 | ||||||
200 12th Street S. | National Landing | 100.0 | % | C | Y / Y | 1985 / 2013 | 202,708 | 202,708 | — | 90.5 | % | 90.5 | % | — | 8,101 | 44.17 | — | ||||||||||
2001 Richmond Highway (6) | National Landing | 100.0 | % | C | N / N | 1967 / N/A | 77,584 | 77,584 | — | 100.0 | % | 100.0 | % | — | 2,765 | 35.64 | — | ||||||||||
Crystal City Shops at 2100 | National Landing | 100.0 | % | C | Y / Y | 1968 / 2006 | 59,574 | — | 59,574 | 88.2 | % | — | 88.2 | % | 776 | — | 14.77 | ||||||||||
Crystal Drive Retail | National Landing | 100.0 | % | C | Y / Y | 2003 / N/A | 56,965 | — | 56,965 | 87.9 | % | — | 85.1 | % | 2,828 | — | 58.30 | ||||||||||
Central Place Tower (5) (7) | Rosslyn | 50.0 | % | U | N / N | 2018 / N/A | 552,437 | 524,537 | 27,900 | 93.0 | % | 92.6 | % | 100.0 | % | 31,830 | 64.09 | 24.79 | |||||||||
Stonebridge at Potomac Town Center* | Prince William County | 10.0 | % | U | Y / Y | 2012 / N/A | 503,613 | — | 503,613 | 95.8 | % | — | 95.4 | % | 15,963 | — | 33.24 | ||||||||||
Pickett Industrial Park | Eisenhower Avenue | 10.0 | % | U | Y / Y | 1973 / N/A | 246,145 | 246,145 | — | 100.0 | % | 100.0 | % | — | 4,164 | 16.92 | — | ||||||||||
Rosslyn Gateway-North | Rosslyn | 18.0 | % | U | Y / Y | 1996 / 2014 | 144,157 | 131,403 | 12,754 | 87.6 | % | 86.8 | % | 96.0 | % | 5,170 | 42.14 | 29.68 | |||||||||
Rosslyn Gateway-South | Rosslyn | 18.0 | % | U | Y / Y | 1961 / N/A | 102,194 | 94,610 | 7,584 | 86.9 | % | 90.6 | % | 40.4 | % | 2,352 | 25.82 | 45.10 | |||||||||
MD | |||||||||||||||||||||||||||
7200 Wisconsin Avenue | Bethesda CBD | 100.0 | % | C | Y / Y | 1986 / 2015 | 269,941 | 259,751 | 10,190 | 90.4 | % | 79.9 | % | 83.9 | % | $ | 10,637 | $ | 48.44 | $ | 67.54 | ||||||
One Democracy Plaza* (5) | Bethesda- Rock Spring | 100.0 | % | C | Y / Y | 1987 / 2013 | 212,894 | 210,756 | 2,138 | 96.9 | % | 96.9 | % | 100.0 | % | 6,670 | 32.34 | 29.98 | |||||||||
4749 Bethesda Avenue Retail | Bethesda CBD | 100.0 | % | C | Y / Y | 2016 / N/A | 7,999 | — | 7,999 | 47.9 | % | — | 47.9 | % | 1,011 | — | 264.00 | ||||||||||
11333 Woodglen Drive | Rockville Pike Corridor | 18.0 | % | U | Y / Y | 2004 / N/A | 62,650 | 54,077 | 8,573 | 97.6 | % | 97.2 | % | 100.0 | % | 2,166 | 34.05 | 43.82 | |||||||||
Total / Weighted Average | 12,520,856 | 10,874,543 | 1,346,313 | 91.7 | % | 88.8 | % | 91.7 | % | $ | 473,821 | $ | 44.19 | $ | 37.98 | ||||||||||||
Recently Delivered | |||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||
500 L'Enfant Plaza | Southwest | 49.0 | % | U | N / N | 2019 / N/A | 215,213 | 215,213 | — | 85.7 | % | 79.2 | % | — | 9,379 | 54.99 | — | ||||||||||
Operating - Total / Weighted Average | 12,736,069 | 11,089,756 | 1,346,313 | 91.6 | % | 88.7 | % | 91.7 | % | $ | 483,200 | $ | 44.38 | $ | 37.98 | ||||||||||||
Under Construction | |||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||
1900 N Street (5) | CBD | 55.0 | % | U | 271,433 | 258,931 | 12,502 | 73.4 | % | 552,000 | |||||||||||||||||
VA | |||||||||||||||||||||||||||
1770 Crystal Drive | National Landing | 100.0 | % | C | 271,572 | 258,299 | 13,273 | 97.8 | % | ||||||||||||||||||
Central District Retail | National Landing | 100.0 | % | C | 108,825 | — | 108,825 | 75.2 | % |
Page 35 |
PROPERTY TABLE - COMMERCIAL | DECEMBER 31, 2019 (Unaudited) |
Commercial Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2018-2019 / YTD 2018-2019 | 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) | |||||||||||||
MD | |||||||||||||||||||||||||||
4747 Bethesda Avenue (8) | Bethesda CBD | 100.0 | % | C | 291,414 | 285,251 | 6,163 | 87.7 | % | ||||||||||||||||||
Under Construction - Total / Weighted Average | 943,244 | 802,481 | 140,763 | 85.1 | % | ||||||||||||||||||||||
Total / Weighted Average | 13,679,313 | 11,892,237 | 1,487,076 | 91.1 | % | ||||||||||||||||||||||
Totals at JBG SMITH Share | |||||||||||||||||||||||||||
In service assets | 10,602,754 | 9,520,228 | 782,525 | 91.5 | % | 88.3 | % | 91.2 | % | $ | 401,113 | $ | 44.27 | $ | 40.39 | ||||||||||||
Recently delivered assets | 105,444 | 105,444 | — | 85.7 | % | 79.2 | % | — | $ | 4,595 | $ | 54.99 | $ | — | |||||||||||||
Operating assets | 10,708,198 | 9,625,672 | 782,525 | 91.4 | % | 88.2 | % | 91.2 | % | $ | 405,709 | $ | 44.38 | $ | 40.39 | ||||||||||||
Under construction assets | 821,099 | 685,962 | 135,137 | 86.8 | % | ||||||||||||||||||||||
893,000.0 |
Number of Assets and Total Square Feet Reconciliation | |||||||||
Number of Assets | At 100% Share | At JBG SMITH Share | |||||||
Operating Assets | Square Feet | Square Feet | |||||||
Q3 2019 | 45 | 12,743,576 | 10,993,101 | ||||||
Placed into service | — | — | — | ||||||
Dispositions (7) (9) | (1 | ) | (8,584 | ) | (284,854 | ) | |||
Out-of-service adjustment | — | (834 | ) | (834 | ) | ||||
Building re-measurements | — | 1,911 | 785 | ||||||
Q4 2019 | 44 | 12,736,069 | 10,708,198 |
Page 36 |
PROPERTY TABLE - COMMERCIAL | DECEMBER 31, 2019 (Unaudited) |
(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: |
Commercial Asset | Ground Lease Expiration Date | |
1730 M Street | 4/30/2061 | |
L'Enfant Plaza Office - East | 11/23/2064 | |
L'Enfant Plaza Retail | 11/23/2064 | |
Courthouse Plaza 1 and 2 | 1/19/2062 | |
Central Place Tower* | 6/2/2102 | |
One Democracy Plaza | 11/17/2084 | |
1900 N Street** | 5/31/2106 |
(6) | The following assets contain space that is held for development or not otherwise available for lease. This out-of-service square footage is excluded from area, leased, and occupancy metrics. |
Commercial Asset | In-Service | Not Available for Lease | |||
RTC - West | 432,509 | 17,988 | |||
2001 Richmond Highway | 77,584 | 82,254 |
(7) | In December 2019, we sold 50.0% of our interest in a real estate venture that owns Central Place Tower. |
(8) | Includes JBG SMITH’s lease for approximately 84,400 square feet. |
(9) | In December 2019, we sold Vienna Retail for $7.4 million. |
Page 37 |
PROPERTY TABLE - MULTIFAMILY | DECEMBER 31, 2019 (Unaudited) |
Multifamily Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2018-2019 / YTD 2018-2019 | 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 | Brookland/Fort Totten | 100.0 | % | C | Y / Y | 2015 / N/A | 345 | 384,956 | 254,292 | 130,664 | 95.6 | % | 91.6 | % | 100.0 | % | $ | 9,002 | $ | 1,806 | $ | 2.45 | |||||||
WestEnd25 | West End | 100.0 | % | C | Y / Y | 2009 / N/A | 283 | 273,264 | 273,264 | — | 94.3 | % | 90.1 | % | — | 10,934 | 3,573 | 3.70 | |||||||||||
F1RST Residences (6) | Ballpark/Southeast | 100.0 | % | C | N / N | 2017 / N/A | 325 | 270,928 | 249,456 | 21,472 | 92.0 | % | 91.7 | % | 91.8 | % | 10,343 | 2,474 | 3.22 | ||||||||||
1221 Van Street | Ballpark/Southeast | 100.0 | % | C | N / N | 2018 / N/A | 291 | 225,530 | 202,715 | 22,815 | 95.1 | % | 92.1 | % | 100.0 | % | 8,840 | 2,388 | 3.43 | ||||||||||
North End Retail | U Street/Shaw | 100.0 | % | C | Y / Y | 2015 / N/A | — | 27,355 | — | 27,355 | 95.6 | % | N/A | 95.6 | % | 1,467 | N/A | N/A | |||||||||||
The Gale Eckington | H Street/NoMa | 5.0 | % | U | Y / Y | 2013 / 2017 | 603 | 466,716 | 465,516 | 1,200 | 95.7 | % | 93.2 | % | 100.0 | % | 14,182 | 2,097 | 2.72 | ||||||||||
Atlantic Plumbing | U Street/Shaw | 64.0 | % | U | Y / Y | 2015 / N/A | 310 | 245,527 | 221,788 | 23,739 | 97.4 | % | 94.8 | % | 100.0 | % | 10,149 | 2,551 | 3.57 | ||||||||||
VA | |||||||||||||||||||||||||||||
RiverHouse Apartments | National Landing | 100.0 | % | C | Y / Y | 1960 / 2013 | 1,676 | 1,327,551 | 1,324,889 | 2,662 | 95.0 | % | 93.4 | % | 100.0 | % | $ | 34,306 | $ | 1,823 | $ | 2.31 | |||||||
The Bartlett | National Landing | 100.0 | % | C | Y / Y | 2016 / N/A | 699 | 619,372 | 577,295 | 42,077 | 94.7 | % | 93.8 | % | 100.0 | % | 22,496 | 2,677 | 3.24 | ||||||||||
220 20th Street | National Landing | 100.0 | % | C | Y / Y | 2009 / N/A | 265 | 271,476 | 269,913 | 1,563 | 96.2 | % | 93.2 | % | 100.0 | % | 7,849 | 2,630 | 2.58 | ||||||||||
2221 S. Clark Street | National Landing | 100.0 | % | C | Y / Y | 1964 / 2016 | 216 | 164,743 | 164,743 | — | 100.0 | % | 100.0 | % | — | 3,491 | N/A | N/A | |||||||||||
Fairway Apartments* | Reston | 10.0 | % | U | Y / Y | 1969 / 2005 | 346 | 370,850 | 370,850 | — | 94.2 | % | 93.1 | % | — | 6,537 | 1,692 | 1.58 | |||||||||||
MD | |||||||||||||||||||||||||||||
Falkland Chase-South & West | Downtown Silver Spring | 100.0 | % | C | Y / Y | 1938 / 2011 | 268 | 222,797 | 222,797 | — | 95.5 | % | 94.4 | % | — | $ | 5,141 | $ | 1,693 | $ | 2.04 | ||||||||
Falkland Chase-North | Downtown Silver Spring | 100.0 | % | C | Y / Y | 1938 / 1986 | 170 | 112,229 | 112,229 | — | 91.2 | % | 91.2 | % | — | 2,756 | 1,482 | 2.24 | |||||||||||
Galvan | Rockville Pike Corridor | 1.8 | % | U | Y / Y | 2015 / N/A | 356 | 390,641 | 295,033 | 95,608 | 96.0 | % | 94.4 | % | 96.8 | % | 10,908 | 1,814 | 2.19 | ||||||||||
The Alaire (7) | Rockville Pike Corridor | 18.0 | % | U | Y / Y | 2010 / N/A | 279 | 266,673 | 251,691 | 14,982 | 94.6 | % | 92.5 | % | 100.0 | % | 6,067 | 1,775 | 1.97 | ||||||||||
The Terano (7) (8) | Rockville Pike Corridor | 1.8 | % | U | Y / Y | 2015 / N/A | 214 | 195,864 | 183,496 | 12,368 | 94.1 | % | 93.0 | % | 76.2 | % | 4,513 | 1,772 | 2.07 | ||||||||||
Total / Weighted Average | 6,646 | 5,836,472 | 5,439,967 | 396,505 | 95.1 | % | 93.3 | % | 97.7 | % | $ | 168,981 | $ | 2,117 | $ | 2.58 | |||||||||||||
Recently Delivered | |||||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||||
West Half (9) | Ballpark/Southeast | 100.0 | % | C | N / N | 2019 / N/A | 465 | 388,653 | 346,415 | 42,238 | 30.2 | % | 23.9 | % | 57.1 | % | 4,604 | 2,248 | 3.02 | ||||||||||
Operating - Total / Weighted Average | 7,111 | 6,225,125 | 5,786,382 | 438,743 | 91.1 | % | 88.7 | % | 93.8 | % | $ | 173,585 | $ | 2,120 | $ | 2.60 | |||||||||||||
Under Construction | |||||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||||
965 Florida Avenue (10) | U Street/Shaw | 96.1 | % | C | 433 | 336,092 | 290,296 | 45,796 | |||||||||||||||||||||
Atlantic Plumbing C | U Street/Shaw | 100.0 | % | C | 256 | 225,531 | 206,057 | 19,474 |
Page 38 |
PROPERTY TABLE - MULTIFAMILY | DECEMBER 31, 2019 (Unaudited) |
Multifamily Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2018-2019 / YTD 2018-2019 | 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 | 1,011 | 920,648 | 835,343 | 85,305 | |||||||||||||||||||||||||
Total | 8,122 | 7,145,773 | 6,621,725 | 524,048 | |||||||||||||||||||||||||
Totals at JBG SMITH Share | |||||||||||||||||||||||||||||
In service assets | 4,862 | 4,176,318 | 3,907,816 | 268,501 | 95.1 | % | 93.3 | % | 98.9 | % | $ | 125,854 | $ | 2,193 | $ | 2.72 | |||||||||||||
Recently delivered assets | 465 | 388,653 | 346,415 | 42,238 | 30.2 | % | 23.9 | % | 57.1 | % | 4,604 | 2,248 | 3.02 | ||||||||||||||||
Operating assets | 5,327 | 4,564,971 | 4,254,231 | 310,739 | 89.5 | % | 87.2 | % | 93.2 | % | $ | 130,458 | $ | 2,195 | $ | 2.73 | |||||||||||||
Under construction assets | 833 | 728,163 | 654,643 | 73,520 |
Number of Assets and Total Square Feet/Units Reconciliation | |||||||||
Number of Assets | At 100% Share | At JBG SMITH Share | |||||||
Operating Assets | Square Feet/Units | Square Feet/Units | |||||||
Q3 2019 | 16 | 5,565,544 SF/ 6,321 Units | 3,905,390 SF/ 4,537 Units | ||||||
Acquisitions (6) | 1 | 270,928 SF/ 325 Units | 270,928 SF/ 325 Units | ||||||
Placed into service (9) | 1 | 388,653 SF/ 465 Units | 388,653 SF/ 465 Units | ||||||
Out-of-service adjustment | — | — | — | ||||||
Building re-measurements | — | — | — | ||||||
Q4 2019 | 18 | 6,225,125 SF/ 7,111 Units | 4,564,971 SF/ 5,327 Units |
Leasing Activity - Multifamily | ||||||||||||||||||||||||||||
Number of Assets | Number of Units | Monthly Rent Per Unit (3) | Multifamily % Occupied | Annualized Rent (in thousands) | ||||||||||||||||||||||||
Q4 2019 | Q4 2018 | % Change | Q4 2019 | Q4 2018 | % Change | Q4 2019 | Q4 2018 | % Change | ||||||||||||||||||||
DC | 4 | 857 | $ | 2,567 | $ | 2,515 | 2.1 | % | 91.9 | % | 95.2 | % | (3.3 | )% | $ | 24,251 | $ | 24,610 | (1.5 | )% | ||||||||
VA | 4 | 2,675 | 2,125 | 2,090 | 1.7 | % | 93.5 | % | 94.2 | % | (0.7 | )% | 63,765 | 63,018 | 1.2 | % | ||||||||||||
MD | 5 | 498 | 1,633 | 1,627 | 0.4 | % | 93.1 | % | 95.7 | % | (2.6 | )% | 9,094 | 9,315 | (2.4 | )% | ||||||||||||
Total / Weighted Average | 13 | 4,030 | $ | 2,157 | $ | 2,123 | 1.6 | % | 93.1 | % | 94.4 | % | (1.3 | )% | $ | 97,110 | $ | 96,943 | 0.2 | % | ||||||||
Note: At JBG SMITH share. Includes assets placed in service prior to October 1, 2018. Excludes North End Retail and 2221 S. Clark Street (WeLive). |
Page 39 |
PROPERTY TABLE - MULTIFAMILY | DECEMBER 31, 2019 (Unaudited) |
(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 North End Retail and 2221 S. 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) | In December 2019, we acquired F1RST Residences for $160.5 million. |
(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. This out-of-service square footage is excluded from area, leased, and occupancy metrics. |
Multifamily Asset | In-Service | Not Available for Lease | |||
The Terano | 195,864 | 3,904 |
(9) | In Q3 2019, we completed the construction of West Half. |
(10) | Ownership percentage reflects expected dilution of JBG SMITH's real estate venture partner as contributions are funded during the construction of the asset. As of December 31, 2019, JBG SMITH's ownership interest was 95.0%. |
Page 40 |
PROPERTY TABLE - UNDER CONSTRUCTION | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands, except per square foot data | % Ownership | Estimated Square Feet | % Pre-Leased | Pre-Lease Rent Per Square Foot (1) | Estimated Number of Units | Schedule (2) | At JBG SMITH Share | |||||||||||||||||||
Construction Start Date | Estimated Completion Date | Estimated Stabilization Date | Historical Cost (3) | Estimated Incremental Investment | Estimated Total Investment | |||||||||||||||||||||
Asset | Submarket | |||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
DC | ||||||||||||||||||||||||||
1900 N Street | CBD | 55.0% | 271,433 | 73.4 | % | $ | 85.95 | — | Q2 2017 | Q4 2019 | Q4 2021 | $ | 111,099 | $ | 12,790 | $ | 123,889 | |||||||||
VA | ||||||||||||||||||||||||||
1770 Crystal Drive | National Landing | 100.0% | 271,572 | 97.8 | % | 46.05 | — | Q4 2018 | Q2 2021 | Q2 2021 | 84,641 | 41,627 | 126,268 | |||||||||||||
Central District Retail | National Landing | 100.0% | 108,825 | 75.2 | % | 46.91 | — | Q4 2018 | Q2 2021 | Q4 2021 | 52,079 | 58,722 | 110,801 | |||||||||||||
MD | ||||||||||||||||||||||||||
4747 Bethesda Avenue (4) | Bethesda CBD | 100.0% | 291,414 | 87.7 | % | 62.23 | — | Q2 2017 | Q4 2019 | Q2 2021 | 140,475 | 20,145 | 160,620 | |||||||||||||
Total/weighted average | 943,244 | 85.1 | % | $ | 61.20 | — | Q1 2018 | Q3 2020 | Q3 2021 | $ | 388,294 | $ | 133,284 | $ | 521,578 | |||||||||||
Multifamily | ||||||||||||||||||||||||||
DC | ||||||||||||||||||||||||||
965 Florida Avenue (5) | U Street/Shaw | 96.1% | 336,092 | — | — | 433 | Q4 2017 | Q4 2020 | Q1 2022 | 123,561 | 29,058 | 152,619 | ||||||||||||||
Atlantic Plumbing C | U Street/Shaw | 100.0% | 225,531 | — | — | 256 | Q1 2017 | Q4 2019 | Q3 2020 | 148,122 | 10,531 | 158,653 | ||||||||||||||
MD | ||||||||||||||||||||||||||
7900 Wisconsin Avenue | Bethesda CBD | 50.0% | 359,025 | — | — | 322 | Q2 2017 | Q3 2020 | Q4 2021 | 70,352 | 24,063 | 94,415 | ||||||||||||||
Total/weighted average | 920,648 | — | — | 1,011 | Q3 2017 | Q3 2020 | Q3 2021 | $ | 342,035 | $ | 63,652 | $ | 405,687 | |||||||||||||
Under Construction - Total / Weighted Average (6) | 1,863,892 | 85.1 | % | $ | 61.20 | 1,011 | Q4 2017 | Q3 2020 | Q3 2021 | $ | 730,329 | $ | 196,936 | $ | 927,265 | |||||||||||
Under Construction - Total / Weighted Average at JBG SMITH Share (6) | 1,549,261 | 86.8 | % | $ | 58.09 | 833 | ||||||||||||||||||||
Commercial | Multifamily | Total | ||||||||||||||||||||||||
Weighted average projected NOI yield at JBG SMITH share: | ||||||||||||||||||||||||||
Estimated total project cost (7) | 6.5 | % | 6.3 | % | 6.4 | % | Consol | 160,083 | ||||||||||||||||||
Estimated total investment | 6.3 | % | 5.7 | % | 6.1 | % | Unconsol | 36,803 | ||||||||||||||||||
Estimated incremental investment | 24.7 | % | 36.6 | % | 28.5 | % | ||||||||||||||||||||
Estimated Stabilized NOI at JBG SMITH Share (dollars in millions) | $ | 32.9 | $ | 23.3 | $ | 56.2 |
(1) | Based on leases signed as of December 31, 2019 and 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. |
(2) | Average dates are weighted by JBG SMITH share of estimated square feet. |
(3) | Historical cost excludes certain GAAP adjustments, interest and ground lease costs. See definition of historical cost on page 51. |
(4) | Includes JBG SMITH’s lease for approximately 84,400 square feet. |
(5) | Ownership percentage reflects expected dilution of JBG SMITH's real estate venture partner as contributions are funded during the construction of the asset. As of December 31, 2019, JBG SMITH's ownership interest was 95.0%. |
(6) | Multifamily assets are excluded from the weighted average percent pre-leased and pre-lease rent per square foot metrics. |
(7) | Estimated total project cost is estimated total investment excluding purchase price allocation adjustments recognized as a result of the Formation Transaction. |
Page 41 |
PROPERTY TABLE - FUTURE DEVELOPMENT | DECEMBER 31, 2019 (Unaudited) (Unaudited) |
dollars in thousands, except per square foot data, at JBG SMITH share | Estimated Commercial SF / Multifamily Units to be Replaced (1) | Estimated Capitalized Cost of SF / Units to Be Replaced (4) | Estimated Capitalized Cost of Ground Rent Payments (5) | Estimated Total Investment per SF | ||||||||||||||||||||||||||||||||||||||
Number of Assets | Estimated Remaining Acquisition Cost (3) | Estimated Total Investment | ||||||||||||||||||||||||||||||||||||||||
Estimated Potential Development Density (SF) | Historical Cost (2) | |||||||||||||||||||||||||||||||||||||||||
Region | Total | Office | Multifamily | Retail | ||||||||||||||||||||||||||||||||||||||
Owned | ||||||||||||||||||||||||||||||||||||||||||
DC | ||||||||||||||||||||||||||||||||||||||||||
DC | 8 | 1,678,400 | 312,100 | 1,357,300 | 9,000 | — | $ | 107,573 | N/A | $ | — | $ | — | $ | 107,573 | $ | 64.09 | |||||||||||||||||||||||||
VA | ||||||||||||||||||||||||||||||||||||||||||
National Landing | 11 | 6,910,400 | 2,135,000 | 4,655,700 | 119,700 | 293,412 SF | 181,622 | N/A | 41,933 | — | 223,555 | 32.35 | ||||||||||||||||||||||||||||||
Reston | 4 | 2,589,200 | 924,800 | 1,462,400 | 202,000 | 15 units | 75,263 | N/A | 3,056 | — | 78,319 | 30.25 | ||||||||||||||||||||||||||||||
Other VA | 4 | 199,600 | 88,200 | 102,100 | 9,300 | 21,568 SF | 1,444 | N/A | 4,642 | 2,504 | 8,590 | 43.04 | ||||||||||||||||||||||||||||||
19 | 9,699,200 | 3,148,000 | 6,220,200 | 331,000 | 314,980 SF / 15 units | 258,329 | N/A | 49,631 | 2,504 | 310,464 | 32.01 | |||||||||||||||||||||||||||||||
MD | ||||||||||||||||||||||||||||||||||||||||||
Silver Spring | 1 | 1,276,300 | — | 1,156,300 | 120,000 | 170 units | 15,095 | N/A | 34,800 | — | 49,895 | 39.09 | ||||||||||||||||||||||||||||||
Greater Rockville | 4 | 126,500 | 19,200 | 88,600 | 18,700 | — | 3,270 | N/A | — | 671 | 3,941 | 31.15 | ||||||||||||||||||||||||||||||
5 | 1,402,800 | 19,200 | 1,244,900 | 138,700 | 170 units | 18,365 | N/A | 34,800 | 671 | 53,836 | 38.38 | |||||||||||||||||||||||||||||||
Total / weighted average | 32 | 12,780,400 | 3,479,300 | 8,822,400 | 478,700 | 314,980 SF / 185 units | $ | 384,267 | N/A | $ | 84,431 | $ | 3,175 | $ | 471,873 | $ | 36.92 | |||||||||||||||||||||||||
Optioned (6) | ||||||||||||||||||||||||||||||||||||||||||
DC | ||||||||||||||||||||||||||||||||||||||||||
DC | 3 | 1,793,600 | 78,800 | 1,498,900 | 215,900 | — | $ | 20,322 | $ | 24,901 | $ | — | $ | 71,113 | $ | 116,336 | $ | 64.86 | ||||||||||||||||||||||||
VA | ||||||||||||||||||||||||||||||||||||||||||
Other VA | 1 | 11,300 | — | 10,400 | 900 | — | 127 | 995 | — | — | 1,122 | 99.29 | ||||||||||||||||||||||||||||||
Total / weighted average | 4 | 1,804,900 | 78,800 | 1,509,300 | 216,800 | — | $ | 20,449 | $ | 25,896 | $ | — | $ | 71,113 | $ | 117,458 | $ | 65.08 | ||||||||||||||||||||||||
Held for Sale | ||||||||||||||||||||||||||||||||||||||||||
VA | ||||||||||||||||||||||||||||||||||||||||||
National Landing (7) | 4 | 4,082,000 | 4,082,000 | — | — | — | $ | 166,998 | N/A | $ | — | $ | — | $ | 166,998 | $ | 40.91 | |||||||||||||||||||||||||
Total / Weighted Average | 40 | 18,667,300 | 7,640,100 | 10,331,700 | 695,500 | 314,980 SF / 185 units | $ | 571,714 | $ | 25,896 | $ | 84,431 | $ | 74,288 | $ | 756,329 | $ | 40.52 |
(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. |
(2) | Historical cost includes certain intangible assets, such as option and transferable density rights values; and excludes certain GAAP adjustments, such as capitalized interest and ground lease costs. See definition of historical cost on page 51. |
(3) | Represents management's estimate of remaining deposits, option payments, and option strike prices as of December 31, 2019. |
(4) | Capitalized value of estimated commercial square feet / multifamily units to be replaced, which generated approximately $1.3 million of NOI for the three months ended December 31, 2019 (included in the NOI of the applicable operating segment), at a 6.0% capitalization rate. |
(5) | Capitalized value of stabilized annual ground rent payments associated with leasehold assets at a 5.0% capitalization rate. Two owned parcels and one optioned parcel are leasehold interests with estimated annual stabilized ground rent payments totaling $3.7 million. |
(6) | As of December 31, 2019, the weighted average remaining term for the optioned future development assets is 4.5 years. |
(7) | Represents the estimated potential development density that JBG SMITH has sold to Amazon pursuant to executed purchase and sale agreements. Subject to customary closing conditions, Amazon contracted to acquire these two development sites for an estimated aggregate $293.9 million. In January 2020, we sold Metropolitan Park to Amazon for a gross sales price of $155.0 million, which represents an $11.0 million increase over the previously estimated contract value resulting from an increase in the approved development density on the sites. We expect the sale of the Pen Place land to Amazon to be completed in 2021. |
Page 42 |
DISPOSITION & RECAPITALIZATION ACTIVITY | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands, at JBG SMITH share | Total Square Feet/ Estimated Potential Development Density | Gross Sales Price | Net Cash Proceeds | Book Gain | ||||||||||||
Assets | Ownership Percentage | Asset Type | Location | Date Disposed | ||||||||||||
Q1 2019 | ||||||||||||||||
Commerce Executive / Commerce Metro Land (2) | 100.0% | Commercial / Future Development | Reston, VA | February 4, 2019 | 388,562 / 894,000 | $ | 114,950 | $ | 117,676 | $ | 39,033 | |||||
Q2 2019 | ||||||||||||||||
None | ||||||||||||||||
Q3 2019 | ||||||||||||||||
1600 K Street | 100.0% | Commercial | Washington, DC | July 31, 2019 | 82,653 | $ | 43,000 | $ | 40,134 | $ | 8,088 | |||||
Q4 2019 | ||||||||||||||||
Vienna Retail | 100.0% | Commercial | Vienna, VA | December 18, 2019 | 8,584 | 7,400 | 7,005 | 4,514 | ||||||||
Total | 479,799/ 894,000 | $ | 165,350 | $ | 164,815 | $ | 51,635 |
(1) | The disposed assets generated $2.0 million and $10.8 million of NOI for the three months and year ended December 31, 2019. As of December 31, 2019, Pen Place and Metropolitan Park were classified as held for sale in our condensed consolidated balance sheet. In March 2019, we entered into agreements for the sale of Pen Place and Metropolitan Park, Future Development assets having an aggregate estimated potential development density of up to approximately 4.1 million square feet, with Amazon for its additional headquarters. Subject to customary closing conditions, Amazon contracted to acquire these two development sites for an estimated aggregate $293.9 million. In January 2020, we sold Metropolitan Park to Amazon for a gross sales price of $155.0 million, which represents an $11.0 million increase over the previously estimated contract value resulting from an increase in the approved development density on the sites. We expect the sale of the Pen Place land to Amazon to be completed in 2021. |
(2) | Net cash proceeds include the reimbursement of $4.0 million of tenant improvement costs and leasing commissions paid by us prior to the closing. |
Page 43 |
DEBT SUMMARY | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands, at JBG SMITH share | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | ||||||||||||||||||||||
Consolidated and Unconsolidated Principal Balance | |||||||||||||||||||||||||||||
Unsecured Debt: | |||||||||||||||||||||||||||||
Revolving credit facility ($1 billion commitment) (1) (5) | $ | — | $ | 200,000 | $ | — | $ | — | $ | — | $ | — | $ | 200,000 | |||||||||||||||
Term loans ($400 million commitment) | — | — | — | 100,000 | 200,000 | — | 300,000 | ||||||||||||||||||||||
Total unsecured debt | — | 200,000 | — | 100,000 | 200,000 | — | 500,000 | ||||||||||||||||||||||
Secured Debt: | |||||||||||||||||||||||||||||
Consolidated principal balance (6) | 99,341 | 96,227 | 107,500 | 173,961 | 134,290 | 516,529 | 1,127,848 | ||||||||||||||||||||||
Unconsolidated principal balance | 117,688 | — | 119,050 | 26,483 | — | 66,998 | 330,219 | ||||||||||||||||||||||
Total secured debt | 217,029 | 96,227 | 226,550 | 200,444 | 134,290 | 583,527 | 1,458,067 | ||||||||||||||||||||||
Total Consolidated and Unconsolidated Principal Balance | $ | 217,029 | $ | 296,227 | $ | 226,550 | $ | 300,444 | $ | 334,290 | $ | 583,527 | $ | 1,958,067 | |||||||||||||||
% of total debt maturing | 11.1 | % | 15.1 | % | 11.6 | % | 15.3 | % | 17.1 | % | 29.8 | % | 100.0 | % | |||||||||||||||
% floating rate (2) | 49.4 | % | 67.5 | % | 48.0 | % | 1.9 | % | 18.7 | % | 1.5 | % | 25.2 | % | |||||||||||||||
% fixed rate (3) | 50.6 | % | 32.5 | % | 52.0 | % | 98.1 | % | 81.3 | % | 98.5 | % | 74.8 | % | |||||||||||||||
Weighted Average Interest Rates | |||||||||||||||||||||||||||||
Variable rate | 5.48 | % | 2.86 | % | 3.24 | % | 3.16 | % | 2.91 | % | 3.58 | % | 3.54 | % | |||||||||||||||
Fixed rate | 3.32 | % | 4.88 | % | 3.59 | % | 4.48 | % | 3.85 | % | 4.31 | % | 4.20 | % | |||||||||||||||
Total Weighted Average Interest Rates | 4.39 | % | 3.52 | % | 3.42 | % | 4.45 | % | 3.68 | % | 4.30 | % | 4.03 | % | |||||||||||||||
Credit Facility | |||||||||||||||||||||||||||||
Revolving Credit Facility | Tranche A-1 Term Loan | Tranche A-2 Term Loan | Total/Weighted Average | 1,627,848 | |||||||||||||||||||||||||
Credit limit | $ | 1,000,000 | $ | 200,000 | $ | 200,000 | $ | 1,400,000 | 2.12 | % | |||||||||||||||||||
Outstanding principal balance | $ | 200,000 | $ | 100,000 | $ | 200,000 | $ | 500,000 | |||||||||||||||||||||
Letters of credit | $ | 1,466 | $ | — | $ | — | $ | 1,466 | |||||||||||||||||||||
Undrawn capacity | $ | 798,534 | $ | 100,000 | $ | — | $ | 898,534 | |||||||||||||||||||||
Interest rate spread (4) (5) | 1.10 | % | 1.20 | % | 1.15 | % | 1.14 | % | |||||||||||||||||||||
All-In interest rate (7) | 2.86 | % | 3.32 | % | 3.74 | % | 3.30 | % | |||||||||||||||||||||
Initial maturity date (5) | Jul-21 | Jan-23 | Jul-24 | — | |||||||||||||||||||||||||
Delayed draw availability period | — | Jul-20 | — | — |
(1) | In 2020, we repaid the revolving credit facility. |
(2) | Floating rate debt includes floating rate loans with interest rate caps. |
(3) | Fixed rate debt includes floating rate loans with interest rate swaps. |
(4) | The interest rate for the revolving credit facility excludes a 0.15% facility fee. |
(5) | In January 2020, the revolving credit facility was amended to extend the maturity date to January 2025. |
(6) | Excludes a $175.0 million mortgage loan collateralized by 4747 and 4749 Bethesda Avenue entered into in February 2020. The mortgage loan has an interest rate of L + 1.35% and matures in February 2027. |
(7) | The all-in interest rate is inclusive of interest rate swaps. As of December 31, 2019, the notional amount of the Tranche A-1 Term Loan and the Tranche A-2 Term Loan interest rate swap was $100.0 million and $137.6 million. |
Page 44 |
DEBT BY INSTRUMENT | DECEMBER 31, 2019 (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 | |||||||||||||
RTC - West | 100.0 | % | $ | 97,141 | L + 1.50% | Swap | 3.33 | % | 04/12/20 | 04/12/21 | |||
Courthouse Plaza 1 and 2 | 100.0 | % | 2,200 | L + 1.60% | — | 3.36 | % | 05/10/20 | 05/10/21 | ||||
WestEnd25 | 100.0 | % | 96,227 | 4.88% | Fixed | 4.88 | % | 06/01/21 | 06/01/21 | ||||
Credit Facility - Revolving Credit Facility (3) | 100.0 | % | 200,000 | L + 1.10% | — | 2.86 | % | 07/16/21 | 07/16/22 | ||||
Credit Facility -Tranche A-1 Term Loan | 100.0 | % | 100,000 | L + 1.20% | Swap | 3.32 | % | 01/18/23 | 01/18/23 | ||||
2121 Crystal Drive | 100.0 | % | 133,960 | 5.51% | Fixed | 5.51 | % | 03/01/23 | 03/01/23 | ||||
Falkland Chase - South & West | 100.0 | % | 40,001 | 3.78% | Fixed | 3.78 | % | 06/01/23 | 06/01/23 | ||||
800 North Glebe Road | 100.0 | % | 107,500 | L + 1.60% | Swap | 3.60 | % | 06/30/22 | 06/30/24 | ||||
Credit Facility - Tranche A-2 Term Loan (4) | 100.0 | % | 200,000 | L + 1.15% | Swap | 3.74 | % | 07/18/24 | 07/18/24 | ||||
2101 L Street | 100.0 | % | 134,290 | 3.97% | Fixed | 3.97 | % | 08/15/24 | 08/15/24 | ||||
201 12th Street S., 200 12th Street S., and 251 18th Street S. | 100.0 | % | 83,319 | 7.94% | Fixed | 7.94 | % | 01/01/25 | 01/01/25 | ||||
RiverHouse Apartments | 100.0 | % | 307,710 | L + 1.28% | Swap | 3.47 | % | 04/01/25 | 04/01/25 | ||||
1730 M Street | 100.0 | % | 47,500 | L + 1.25% | Swap | 3.92 | % | 12/21/25 | 12/21/25 | ||||
1235 S. Clark Street | 100.0 | % | 78,000 | 3.94% | Fixed | 3.94 | % | 11/01/27 | 11/01/27 | ||||
Total Consolidated Principal Balance | 1,627,848 | ||||||||||||
Premium / (discount) recognized as a result of the Formation Transaction | 1,055 | ||||||||||||
Deferred financing costs - mortgage loans | (3,126 | ) | 1,062,051 | ||||||||||
Deferred financing costs - credit facility (5) | (5,776 | ) | 797,451 | ||||||||||
Total Consolidated Indebtedness | $ | 1,620,001 | 862,051 | ||||||||||
Total Consolidated Indebtedness (net of premium / (discount) and deferred financing costs) | |||||||||||||
Mortgages payable | $ | 1,125,777 | |||||||||||
Revolving credit facility | 200,000 | 200,000 | 3,071 | ||||||||||
Deferred financing costs, net - credit facility (included in other assets) | (3,071 | ) | |||||||||||
Unsecured term loan | 297,295 | ||||||||||||
Total Consolidated Indebtedness | $ | 1,620,001 | |||||||||||
Page 45 |
DEBT BY INSTRUMENT | DECEMBER 31, 2019 (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 | |||||||||||||
11333 Woodglen Drive (6) | 18.0 | % | $ | 12,370 | L + 1.90% | Swap | 3.52 | % | 04/01/20 | 04/01/20 | |||
Galvan | 1.8 | % | 89,500 | L + 1.75% | Cap | 3.51 | % | 03/06/20 | 03/06/21 | ||||
L'Enfant Plaza Office - North, L'Enfant Plaza Office - East, L'Enfant Plaza Retail (7) | 49.0 | % | 211,019 | L + 3.65% | Cap | 5.56 | % | 05/08/20 | 05/08/22 | ||||
Atlantic Plumbing | 64.0 | % | 100,000 | L + 1.50% | — | 3.26 | % | 11/08/22 | 11/08/22 | ||||
Stonebridge at Potomac Town Center | 10.0 | % | 104,611 | L + 1.70% | Swap | 3.25 | % | 12/10/20 | 12/10/22 | ||||
Rosslyn Gateway - North, Rosslyn Gateway - South | 18.0 | % | 49,666 | L + 2.00% | Cap | 3.76 | % | 08/29/22 | 08/29/24 | ||||
500 L'Enfant Plaza | 49.0 | % | 73,294 | L + 1.30% | Cap | 3.06 | % | 10/25/22 | 10/25/24 | ||||
The Foundry | 9.9 | % | 58,000 | L + 1.40% | Cap | 3.16 | % | 12/12/23 | 12/12/24 | ||||
The Alaire | 18.0 | % | 48,000 | L + 1.82% | Cap | 3.58 | % | 03/01/25 | 03/01/25 | ||||
1101 17th Street | 55.0 | % | 60,000 | L + 1.25% | Swap | 4.13 | % | 06/13/25 | 06/13/25 | ||||
Fairway Apartments | 10.0 | % | 46,579 | L + 1.50% | Swap | 3.54 | % | 07/01/22 | 07/01/25 | ||||
7900 Wisconsin Avenue | 50.0 | % | 44,772 | 4.82% | Fixed | 4.82 | % | 07/15/25 | 07/15/25 | ||||
The Gale Eckington | 5.0 | % | 110,813 | 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 | ||||
The Terano | 1.8 | % | 34,000 | L + 1.35% | Swap | 4.45 | % | 11/09/25 | 11/09/25 | ||||
Wardman Park | 16.7 | % | 124,491 | 4.77% | Fixed | 4.77 | % | 02/01/23 | 02/01/28 | ||||
Total Unconsolidated Principal Balance | 1,190,715 | ||||||||||||
Deferred financing costs | (2,859 | ) | |||||||||||
Total Unconsolidated Indebtedness | $ | 1,187,856 | |||||||||||
Principal Balance at JBG SMITH Share | |||||||||||||
Consolidated principal balance at JBG SMITH share | $ | 1,627,848 | 74.8 | % | |||||||||
Unconsolidated principal balance at JBG SMITH share | 330,219 | 33 | % | 448,519 | |||||||||
Total Consolidated and Unconsolidated Principal Balance at JBG SMITH Share | $ | 1,958,067 | |||||||||||
Indebtedness at JBG SMITH Share (net of premium / (discount) and deferred financing costs) | |||||||||||||
Consolidated indebtedness at JBG SMITH Share | $ | 1,620,001 | 1,620,001 | ||||||||||
Unconsolidated indebtedness at JBG SMITH Share | 329,056 | ||||||||||||
Total Consolidated and Unconsolidated Indebtedness at JBG SMITH Share | $ | 1,949,057 | 1.95 |
(1) | December 31, 2019 one-month LIBOR of 1.76% applied to loans which are denoted as floating (no swap) or floating with a cap, except as otherwise noted. |
(2) | Represents the maturity date based on execution of all extension options. Many of these extensions are subject to lender covenant tests. |
(3) | In January 2020, the revolving credit facility was amended to extend the maturity date to January 2025. In 2020, we repaid the revolving credit facility. |
(4) | As of December 31, 2019, the notional amount of the Tranche A-2 Term Loan interest rate swap was $137.6 million. |
(5) | As of December 31, 2019, net deferred financing costs related to our revolving credit facility totaling $3.1 million were included in "Other assets, net" in our condensed consolidated balance sheet. |
(6) | The interest rate swap associated with 11333 Woodglen Drive matured on January 1, 2020. The loan is now floating and has an all-in interest rate of 3.66%. |
(7) | The base rate for this loan is three-month LIBOR, which was 1.91% as of December 31, 2019. |
Page 46 |
CONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2019 (Unaudited) |
Asset Type | City | Submarket | % Ownership | Total Square Feet | |||
MRP Realty | |||||||
965 Florida Avenue (1) | Multifamily | Washington, DC | U Street/Shaw | 96.1 | % | 336,092 | |
Total Consolidated Real Estate Ventures | 336,092 |
(1) | Ownership percentage reflects expected dilution of JBG SMITH's real estate venture partner as contributions are funded during the construction of the asset. As of December 31, 2019, JBG SMITH's ownership interest was 95.0%. |
Page 47 |
UNCONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2019 (Unaudited) |
Asset Type | City | Submarket | % Ownership | Total Square Feet | |||
Landmark | |||||||
L'Enfant Plaza Office - East | Commercial | Washington, DC | Southwest | 49.0 | % | 397,057 | |
L'Enfant Plaza Office - North | Commercial | Washington, DC | Southwest | 49.0 | % | 298,445 | |
500 L'Enfant Plaza | Commercial | Washington, DC | Southwest | 49.0 | % | 215,213 | |
L'Enfant Plaza Retail | Commercial | Washington, DC | Southwest | 49.0 | % | 119,291 | |
Rosslyn Gateway - North | Commercial | Arlington, VA | Rosslyn | 18.0 | % | 144,157 | |
Rosslyn Gateway - South | Commercial | Arlington, VA | Rosslyn | 18.0 | % | 102,194 | |
11333 Woodglen Drive | Commercial | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 62,650 | |
Galvan | Multifamily | Rockville, MD | Rockville Pike Corridor | 1.8 | % | 390,641 | |
The Alaire | Multifamily | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 266,673 | |
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 - South Land | Future Development | Arlington, VA | Rosslyn | 18.0 | % | 498,500 | |
Rosslyn Gateway - North Land | Future Development | Arlington, VA | Rosslyn | 18.0 | % | 311,000 | |
L'Enfant Plaza Office - Center | Future Development | Washington, DC | 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 | % | — | |
4,402,685 | |||||||
CBREI Venture | |||||||
Stonebridge at Potomac Town Center | Commercial | Woodbridge, VA | Prince William County | 10.0 | % | 503,613 | |
Pickett Industrial Park | Commercial | Alexandria, VA | Eisenhower Avenue | 10.0 | % | 246,145 | |
The Foundry | Commercial | Washington, DC | Georgetown | 9.9 | % | 225,095 | |
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 | |
Fairway Land | Future Development | Reston, VA | Reston | 10.0 | % | 526,200 | |
Stonebridge at Potomac Town Center - Land | Future Development | Woodbridge, VA | Prince William County | 10.0 | % | 22,900 | |
2,607,046 | |||||||
Page 48 |
UNCONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2019 (Unaudited) |
Asset Type | City | Submarket | % Ownership | Total Square Feet | |||
Canadian Pension Plan Investment Board | |||||||
1900 N Street | Commercial | Washington, DC | CBD | 55.0 | % | 271,433 | |
1101 17th Street | Commercial | Washington, DC | CBD | 55.0 | % | 211,781 | |
483,214 | |||||||
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 | |
51 N Street | Future Development | Washington, DC | NoMa | 30.0 | % | 177,500 | |
50 Patterson Street | Future Development | Washington, DC | NoMa | 30.0 | % | 142,200 | |
585,500 | |||||||
Prudential Global Investment Management | |||||||
Central Place Tower (1) | Commercial | Arlington, VA | Rosslyn | 50.0 | % | 552,437 | |
Berkshire Group | |||||||
7900 Wisconsin Avenue | Multifamily | Bethesda, MD | Bethesda CBD | 50.0 | % | 359,025 | |
CIM Group / Pacific Life Insurance Company | |||||||
Wardman Park | Future Development | Washington, DC | Woodley Park | 16.7 | % | — | |
Total Unconsolidated Real Estate Ventures | 9,652,507 | ||||||
(1) | In December 2019, we sold a 50.0% interest in a real estate venture that owns Central Place Tower. |
Page 49 |
DEFINITIONS | DECEMBER 31, 2019 |
Page 50 |
DEFINITIONS | DECEMBER 31, 2019 |
Page 51 |
DEFINITIONS | DECEMBER 31, 2019 |
Page 52 |
DEFINITIONS | DECEMBER 31, 2019 |
Page 53 |
APPENDIX - EBITDA, EBITDAre AND ADJUSTED EBITDA (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
Three Months Ended | ||||||||||||||||
dollars in thousands | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | |||||||||||
EBITDA, EBITDAre and Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 38,692 | $ | 10,532 | $ | (3,328 | ) | $ | 28,248 | $ | 994 | |||||
Depreciation and amortization expense | 50,004 | 46,862 | 45,995 | 48,719 | 67,556 | |||||||||||
Interest expense (1) | 11,831 | 10,583 | 13,107 | 17,174 | 18,184 | |||||||||||
Income tax expense (benefit) | (613 | ) | 432 | 51 | (1,172 | ) | 698 | |||||||||
Unconsolidated real estate ventures allocated share of above adjustments | 10,050 | 8,664 | 10,357 | 7,806 | 10,253 | |||||||||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (2 | ) | — | (4 | ) | (1 | ) | (182 | ) | |||||||
EBITDA (2) | $ | 109,962 | $ | 77,073 | $ | 66,178 | $ | 100,774 | $ | 97,503 | ||||||
Gain on sale of real estate | (57,870 | ) | (8,088 | ) | — | (39,033 | ) | (6,394 | ) | |||||||
Gain on sale from unconsolidated real estate ventures | — | — | (335 | ) | — | (20,554 | ) | |||||||||
EBITDAre (2) | $ | 52,092 | $ | 68,985 | $ | 65,843 | $ | 61,741 | $ | 70,555 | ||||||
Transaction and other costs (3) | 13,307 | 2,059 | 2,974 | 4,895 | 15,572 | |||||||||||
Loss on extinguishment of debt, net of noncontrolling interests | 3,916 | — | 1,889 | — | 617 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,549 | 9,523 | 11,131 | 9,118 | |||||||||||
Losses and distributions in excess of our investment in unconsolidated real estate venture (4) | (518 | ) | (165 | ) | (232 | ) | (6,441 | ) | (7,374 | ) | ||||||
Unconsolidated real estate ventures allocated share of above adjustments | (1,345 | ) | — | — | — | 1,542 | ||||||||||
Lease liability adjustments | (1,829 | ) | 1,991 | — | — | (7,422 | ) | |||||||||
Adjusted EBITDA (2) | $ | 77,582 | $ | 82,419 | $ | 79,997 | $ | 71,326 | $ | 82,608 | ||||||
Net Debt to Annualized Adjusted EBITDA (5) (6) | 5.8x | 5.3x | 5.2x | 7.1x | 6.5x | |||||||||||
December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||
Net Debt (at JBG SMITH Share) | ||||||||||||||||
Consolidated indebtedness (7) | $ | 1,620,001 | $ | 1,652,303 | $ | 1,653,538 | $ | 2,128,803 | $ | 2,130,704 | ||||||
Unconsolidated indebtedness (7) | 329,056 | 322,692 | 312,686 | 303,397 | 298,588 | |||||||||||
Total consolidated and unconsolidated indebtedness | 1,949,057 | 1,974,995 | 1,966,224 | 2,432,200 | 2,429,292 | |||||||||||
Less: cash and cash equivalents | 136,200 | 237,288 | 289,554 | 405,646 | 273,611 | |||||||||||
Net Debt (at JBG SMITH Share) | $ | 1,812,857 | $ | 1,737,707 | $ | 1,676,670 | $ | 2,026,554 | $ | 2,155,681 |
(1) | Interest expense includes the amortization of deferred financing costs and the ineffective portion of any interest rate swaps or caps, net of capitalized interest. |
(2) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million for Q4 2018). |
(3) | Includes fees and expenses incurred for the relocation of our corporate headquarters, demolition costs, fees and expenses incurred in connection with the Formation Transaction (including amounts incurred for transition services provided by our former parent, integration costs and severance costs), pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. |
(4) | As of June 30, 2018, we suspended the equity method of accounting for our investment in the real estate venture that owns 1101 17th Street as our investment had been reduced to zero and we did not have an obligation to provide further financial support to the venture. All subsequent distributions from the venture have been recognized as income, which will continue until our share of unrecorded earnings and contributions exceed the cumulative excess distributions previously recognized. |
(5) | In Q2 2019, we closed an underwritten public offering of 11.5 million common shares that generated net proceeds of $472.8 million. |
(6) | Pro forma Net Debt to Annualized Adjusted EBITDA would have been 5.3x for Q4 2019, which includes the $155.0 million of net proceeds from the sale of Metropolitan Park in January 2020. |
(7) | Net of premium/discount and deferred financing costs. |
Page 54 |
APPENDIX - FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
Three Months Ended | |||||||||||||||
in thousands, except per share data | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | ||||||||||
FFO and Core FFO | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 34,390 | $ | 9,360 | $ | (3,040 | ) | $ | 24,861 | $ | 710 | ||||
Net income (loss) attributable to redeemable noncontrolling interests | 4,302 | 1,172 | (288 | ) | 3,387 | 178 | |||||||||
Net income attributable to noncontrolling interests | — | — | — | — | 106 | ||||||||||
Net income (loss) | 38,692 | 10,532 | (3,328 | ) | 28,248 | 994 | |||||||||
Gain on sale of real estate | (57,870 | ) | (8,088 | ) | — | (39,033 | ) | (6,394 | ) | ||||||
Gain on sale from unconsolidated real estate ventures | — | — | (335 | ) | — | (20,554 | ) | ||||||||
Real estate depreciation and amortization | 47,001 | 44,164 | 43,308 | 46,035 | 64,891 | ||||||||||
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures | 6,407 | 4,713 | 4,804 | 4,653 | 6,079 | ||||||||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (2 | ) | — | (4 | ) | (1 | ) | (182 | ) | ||||||
FFO Attributable to Operating Partnership Common Units (1) | $ | 34,228 | $ | 51,321 | $ | 44,445 | $ | 39,902 | $ | 44,834 | |||||
FFO attributable to redeemable noncontrolling interests | (3,804 | ) | (5,705 | ) | (5,014 | ) | (4,783 | ) | (5,741 | ) | |||||
FFO attributable to common shareholders (1) | $ | 30,424 | $ | 45,616 | $ | 39,431 | $ | 35,119 | $ | 39,093 | |||||
FFO attributable to the operating partnership common units | $ | 34,228 | $ | 51,321 | $ | 44,445 | $ | 39,902 | $ | 44,834 | |||||
Transaction and other costs, net of tax (2) | 11,725 | 1,941 | 2,847 | 4,626 | 14,509 | ||||||||||
(Gain) loss from mark-to-market on derivative instruments | — | 2 | 524 | (476 | ) | (542 | ) | ||||||||
Loss on extinguishment of debt, net of noncontrolling interests | 3,916 | — | 1,889 | — | 2,159 | ||||||||||
Losses and distributions in excess of our investment in unconsolidated real estate venture (3) | (518 | ) | (165 | ) | (232 | ) | (6,441 | ) | (7,374 | ) | |||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,549 | 9,523 | 11,131 | 9,118 | ||||||||||
Lease liability adjustments | (1,829 | ) | 1,991 | — | — | (7,422 | ) | ||||||||
Amortization of management contracts intangible, net of tax | 1,288 | 1,287 | 1,288 | 1,287 | 1,287 | ||||||||||
Unconsolidated real estate ventures allocated share of above adjustments | (1,407 | ) | 127 | 1,153 | 227 | 379 | |||||||||
Core FFO Attributable to Operating Partnership Common Units (1) | $ | 59,362 | $ | 66,053 | $ | 61,437 | $ | 50,256 | $ | 56,948 | |||||
Core FFO attributable to redeemable noncontrolling interests | (6,598 | ) | (7,342 | ) | (6,931 | ) | (6,024 | ) | (7,292 | ) | |||||
Core FFO attributable to common shareholders (1) | $ | 52,764 | $ | 58,711 | $ | 54,506 | $ | 44,232 | $ | 49,656 | |||||
FFO per diluted common share | $ | 0.23 | $ | 0.34 | $ | 0.30 | $ | 0.28 | $ | 0.32 | |||||
Core FFO per diluted common share | $ | 0.39 | $ | 0.44 | $ | 0.41 | $ | 0.36 | $ | 0.41 | |||||
Weighted average diluted shares | 134,129 | 134,127 | 131,754 | 123,423 | 120,917 |
Page 55 |
APPENDIX - FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
Three Months Ended | |||||||||||||||
in thousands, except per share data | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | ||||||||||
FAD | |||||||||||||||
Core FFO attributable to the operating partnership common units | $ | 59,362 | $ | 66,053 | $ | 61,437 | $ | 50,256 | $ | 56,948 | |||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | (27,689 | ) | (14,872 | ) | (20,076 | ) | (22,297 | ) | (35,836 | ) | |||||
Straight-line and other rent adjustments (4) | (8,464 | ) | (10,348 | ) | (8,739 | ) | (6,808 | ) | (6,692 | ) | |||||
Third-party lease liability assumption payments | (1,450 | ) | (1,413 | ) | (1,183 | ) | (1,136 | ) | (1,130 | ) | |||||
Share-based compensation expense | 5,512 | 6,129 | 5,694 | 5,330 | 4,666 | ||||||||||
Amortization of debt issuance costs | 671 | 701 | 875 | 970 | 1,140 | ||||||||||
Unconsolidated real estate ventures allocated share of above adjustments | (386 | ) | (943 | ) | (1,404 | ) | (87 | ) | 747 | ||||||
Non-real estate depreciation and amortization | 1,234 | 925 | 916 | 912 | 893 | ||||||||||
FAD available to the Operating Partnership Common Units (A) (1) | $ | 28,790 | $ | 46,232 | $ | 37,520 | $ | 27,140 | $ | 20,736 | |||||
Distributions to common shareholders and unitholders (5) (B) | $ | 34,011 | $ | 34,006 | $ | 34,006 | $ | 31,284 | $ | 31,284 | |||||
FAD Payout Ratio (B÷A) (6) | 118.1 | % | 73.6 | % | 90.6 | % | 115.3 | % | 150.9 | % |
Capital Expenditures | |||||||||||||||
Maintenance and recurring capital expenditures | $ | 11,748 | $ | 7,000 | $ | 7,252 | $ | 5,495 | $ | 14,445 | |||||
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures | 561 | 439 | 252 | 88 | 978 | ||||||||||
Second generation tenant improvements and leasing commissions | 13,426 | 6,713 | 12,357 | 16,155 | 19,211 | ||||||||||
Share of second generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 1,954 | 720 | 215 | 559 | 1,202 | ||||||||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | 27,689 | 14,872 | 20,076 | 22,297 | 35,836 | ||||||||||
First generation tenant improvements and leasing commissions | 20,057 | 6,501 | 18,996 | 6,197 | 8,215 | ||||||||||
Share of first generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 2,672 | 507 | 419 | 233 | 17 | ||||||||||
Non-recurring capital expenditures | 16,410 | 8,365 | 5,470 | 6,722 | 15,375 | ||||||||||
Share of non-recurring capital expenditures from unconsolidated joint ventures | 488 | 84 | 30 | — | 112 | ||||||||||
Non-recurring capital expenditures | 39,627 | 15,457 | 24,915 | 13,152 | 23,719 | ||||||||||
Total JBG SMITH Share of Capital Expenditures | $ | 67,316 | $ | 30,329 | $ | 44,991 | $ | 35,449 | $ | 59,555 |
(1) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million for Q4 2018). |
(2) | Includes fees and expenses incurred for the relocation of our corporate headquarters, demolition costs, fees and expenses incurred in connection with the Formation Transaction (including amounts incurred for transition services provided by our former parent, integration costs and severance costs), pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. |
(3) | As of June 30, 2018, we suspended the equity method of accounting for our investment in the real estate venture that owns 1101 17th Street as our investment had been reduced to zero and we did not have an obligation to provide further financial support to the venture. All subsequent distributions from the venture have been recognized as income, which will continue until our share of unrecorded earnings and contributions exceed the cumulative excess distributions previously recognized. |
(4) | Includes straight-line rent, above/below market lease amortization and lease incentive amortization. |
(5) | The distribution for Q1 2019 excludes a special dividend of $0.10 per common share that was paid in January 2019. |
(6) | The FAD payout ratio on a quarterly basis is not necessarily indicative of an amount for the full year due to fluctuation in timing of capital expenditures, the commencement of new leases and the seasonality of our operations. Q4 2019 and Q4 2018 were impacted by increases in recurring capital expenditures, which is consistent with historical seasonality trends. |
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APPENDIX - NOI RECONCILIATIONS (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
dollars in thousands | Three Months Ended | ||||||||||||||
Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | |||||||||||
Net income (loss) attributable to common shareholders | $ | 34,390 | $ | 9,360 | $ | (3,040 | ) | $ | 24,861 | $ | 710 | ||||
Add: | |||||||||||||||
Depreciation and amortization expense | 50,004 | 46,862 | 45,995 | 48,719 | 67,556 | ||||||||||
General and administrative expense: | |||||||||||||||
Corporate and other | 11,934 | 11,015 | 11,559 | 12,314 | 8,512 | ||||||||||
Third-party real estate services | 26,910 | 29,809 | 28,710 | 28,066 | 25,274 | ||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 11,959 | 9,549 | 9,523 | 11,131 | 9,118 | ||||||||||
Transaction and other costs | 13,307 | 2,059 | 2,974 | 4,895 | 15,572 | ||||||||||
Interest expense | 11,831 | 10,583 | 13,107 | 17,174 | 18,184 | ||||||||||
Loss on extinguishment of debt | 3,916 | — | 1,889 | — | 617 | ||||||||||
Income tax expense (benefit) | (613 | ) | 432 | 51 | (1,172 | ) | 698 | ||||||||
Net income (loss) attributable to redeemable noncontrolling interests | 4,302 | 1,172 | (288 | ) | 3,387 | 178 | |||||||||
Less: | |||||||||||||||
Third-party real estate services, including reimbursements | 29,121 | 34,587 | 29,487 | 27,691 | 26,421 | ||||||||||
Other income (1) | 1,686 | 2,196 | 2,114 | 1,640 | 1,454 | ||||||||||
Income (loss) from unconsolidated real estate ventures, net | (2,042 | ) | (1,144 | ) | (1,810 | ) | 3,601 | 23,991 | |||||||
Interest and other income (loss), net | 3,022 | (640 | ) | 2,052 | 951 | 9,991 | |||||||||
Gain on sale of real estate | 57,870 | 8,088 | — | 39,033 | 6,394 | ||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | (106 | ) | |||||||||
Consolidated NOI (2) | 78,283 | 77,754 | 78,637 | 76,459 | 78,274 | ||||||||||
NOI attributable to unconsolidated real estate ventures at our share | 6,052 | 5,500 | 5,091 | 5,386 | 8,847 | ||||||||||
Non-cash rent adjustments (3) | (8,465 | ) | (10,348 | ) | (8,738 | ) | (6,808 | ) | (6,691 | ) | |||||
Other adjustments (4) | 3,913 | 3,181 | 3,758 | 3,353 | 3,915 | ||||||||||
Total adjustments | 1,500 | (1,667 | ) | 111 | 1,931 | 6,071 | |||||||||
NOI (3) | $ | 79,783 | $ | 76,087 | $ | 78,748 | $ | 78,390 | $ | 84,345 | |||||
Less: out-of-service NOI loss (5) | (2,817 | ) | (2,189 | ) | $ | (1,556 | ) | $ | (1,271 | ) | $ | (1,195 | ) | ||
Operating portfolio NOI (2) | $ | 82,600 | $ | 78,276 | $ | 80,304 | $ | 79,661 | $ | 85,540 | |||||
Non-same store NOI (6) | 7,653 | 6,286 | 6,311 | 6,088 | 8,742 | ||||||||||
Same store NOI (7) | $ | 74,947 | $ | 71,990 | $ | 73,993 | $ | 73,573 | $ | 76,798 |
(1) | Excludes operating parking revenue of $6.5 million, $6.3 million, $6.7 million and $6.5 million in Q4 2019, Q3 2019, Q2 2019 and Q1 2019. |
(2) | Due to our adoption of the new accounting standard for leases, beginning in 2019, we no longer capitalize internal leasing costs and expense these costs as incurred (such costs were $2.2 million for Q4 2018). |
(3) | Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization. |
(4) | Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue and allocated corporate general and administrative expenses to operating properties. |
(5) | Includes the results for our Under Construction assets and Future Development Pipeline. |
(6) | Includes the results for properties that were not in service for the entirety of both periods being compared and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. |
(7) | Includes the results of the properties that are in service for the entirety of both periods being compared except for properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. |
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APPENDIX - NOI RECONCILIATIONS (NON-GAAP) | DECEMBER 31, 2019 (Unaudited) |
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