Maryland | No. 001-37994 | 81‑4307010 |
(State or other jurisdiction of incorporation or organization) | (Commission file number) | (I.R.S. Employer Identification No.) |
4445 Willard Avenue, Suite 400 Chevy Chase, MD | 20815 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code: (240) 333‑3600 | ||
Former name or former address, if changed since last report: |
JBG SMITH PROPERTIES | ||||
February 26, 2019 | By: | /s/ STEPHEN W. THERIOT | ||
Name: Stephen W. Theriot | ||||
Title: Chief Financial Officer | ||||
(Principal Financial and Accounting Officer) |
• | Leases for approximately 537,000 square feet of existing office space at 241 18th Street S. (approximately 88,000 square feet), 1800 South Bell Street (full building lease for approximately 191,000 square feet), and 1770 Crystal Drive (full building lease for approximately 258,000 square feet), with approximately $95 million of incremental JBG SMITH investment, expected to generate a combined net effective rent of approximately $35 per square foot. |
• | Sale of Met 6, 7, and 8 and Pen Place land in our Future Development Pipeline with Estimated Potential Development Density of up to 4.1 million square feet for $294 million or approximately $72 per square foot. |
• | Closing timed to facilitate potential 1031 exchanges of the proceeds from the land sales. |
• | JBG SMITH to be retained as developer, property manager, and exclusive retail leasing agent for Amazon in National Landing. |
• | Two new Metro entrances (Crystal Drive and Potomac Yard). |
• | Pedestrian bridge to Reagan National Airport immediately adjacent to JBG SMITH holdings. |
• | New commuter rail hub (VRE) with station entrance located in between two JBG SMITH office assets. |
• | Lowering of elevated sections of Route 1 that currently divide parts of National Landing to create better multimodal access and walkability. |
• | Approximately $500 million of funding for a National Landing innovation campus anchored by Virginia Tech. |
• | Approximately $425 million of education investments from George Mason University and the Commonwealth of Virginia. |
• | Increasing our leased percentage from 89.8% at year-end 2017 to 91.2% at year-end 2018. |
• | Executing 1.9 million square feet (at share) of commercial and retail leases across our portfolio. |
• | Executing renewals and early blend-and-extend leases for 1.1 million square feet (at share) for in-place office tenants to de-risk our portfolio and better position certain assets for sale or recapitalization. |
• | Disposing of or recapitalizing approximately $875 million of low-growth assets with substantial capital needs at pricing levels in excess of our estimated NAV. |
• | Reducing our total square footage of Commodity A office exposure from 7.3% of our operating and under construction commercial portfolios to less than 3.3%. |
• | Net income attributable to common shareholders was $0.7 million, or $(0.01) per diluted share. |
• | Funds From Operations (“FFO”) attributable to common shareholders was $39.1 million, or $0.32 per diluted share. |
• | Core Funds From Operations (“Core FFO”) attributable to common shareholders was $49.7 million, or $0.41 per diluted share. |
• | Net income attributable to common shareholders was $39.9 million, or $0.31 per diluted share. |
• | FFO attributable to common shareholders was $158.6 million, or $1.33 per diluted share. |
• | Core FFO attributable to common shareholders was $206.2 million, or $1.73 per diluted share. |
• | Annualized Net Operating Income (“NOI”) for the three months ended December 31, 2018 was $341.8 million, compared to $364.9 million for the three months ended September 30, 2018, at our share. The decrease in NOI is primarily attributable to lost income from disposed assets and increased ground rent expense at Courthouse Plaza 1 and 2. |
• | The operating commercial portfolio was 89.6% leased and 85.5% occupied as of December 31, 2018, compared to 87.1% and 85.4% as of September 30, 2018, at our share. |
• | The operating multifamily portfolio was 95.7% leased and 93.9% occupied as of December 31, 2018, compared to 96.1% and 94.3% as of September 30, 2018, at our share. |
• | Executed approximately 741,000 square feet of office leases at our share in the fourth quarter, comprising approximately 380,000 square feet of new leases, and approximately 361,000 square feet of second generation leases, which generated a 3.2% rental rate increase on a GAAP basis and a 7.3% rental rate decrease on a cash basis. |
• | Executed approximately 1.8 million square feet of commercial leases at our share during the year ended December 31, 2018, comprising approximately 656,000 square feet of new leases, and approximately 1.1 |
• | Same Store Net Operating Income (“SSNOI”) decreased 7.4% to $76.8 million for the three months ended December 31, 2018, compared to $82.9 million for the three months ended December 31, 2017. SSNOI decreased 1.1% to $250.3 million for the year ended December 31, 2018, compared to $253.0 million for the year ended December 31, 2017. The decrease in SSNOI for the three months and year ended December 31, 2018 is largely attributable to rental abatements, increased ground rent expense at Courthouse Plaza 1 and 2, and anticipated tenant move-outs. The reported same store pool as of December 31, 2018 includes only the assets that were in service for the entirety of both periods being compared and does not include the JBG Assets acquired in the Formation Transaction. Including the JBG Assets, SSNOI would have slightly increased for the year ended December 31, 2018. |
• | During the quarter ended December 31, 2018, there were nine assets under construction (five commercial assets and four multifamily assets), consisting of 926,530 square feet and 1,298 units, both at our share. |
• | Commenced construction on 1770 Crystal Drive and Central District Retail as a result of the Amazon selection of JBG SMITH to house and develop a new headquarters location at National Landing ("Amazon HQ2"). |
• | As of December 31, 2018, there were no assets in near-term development. |
• | As of December 31, 2018, there were 41 future development assets consisting of 19.6 million square feet of estimated potential density at our share. |
• | For the three months ended December 31, 2018, revenue from third-party real estate services, including reimbursements, was $26.4 million. Excluding reimbursements and service revenue from our interests in consolidated and unconsolidated real estate ventures, revenue from our third-party asset management and real estate services business was $14.3 million, of which $5.6 million came from property management fees, $3.5 million came from asset management fees, $2.2 million came from leasing fees, $1.3 million came from development fees, $1.2 million came from construction management fees and $0.5 million came from other service revenue. |
• | The general and administrative expenses allocated to the third-party asset management and real estate services business were $13.1 million for the three months ended December 31, 2018. |
• | We had $2.1 billion of debt ($2.4 billion including our share of debt of unconsolidated real estate ventures) as of December 31, 2018. Of the $2.4 billion of debt at our share, approximately 73% was fixed-rate, and rate caps were in place for approximately 2%. |
• | The weighted average interest rate of our debt at share was 4.23% as of December 31, 2018. |
• | At December 31, 2018, our total enterprise value was approximately $7.0 billion, comprising 137.8 million common shares and units valued at $4.8 billion and debt (net of premium / (discount) and deferred financing costs) at our share of $2.4 billion, less cash and cash equivalents of $273.6 million. |
• | As of December 31, 2018, we had $260.6 million of cash and cash equivalents on a GAAP basis and $273.6 million of cash and cash equivalents at our share, and $1.1 billion of capacity under our credit facility. |
• | Net Debt / Adjusted EBITDA at our share for the three months and year ended December 31, 2018 was 6.5x and 6.3x and our Net Debt / Total Enterprise Value was 31.0% as of December 31, 2018. |
▪ | Entered into a new mortgage loan collateralized by 1730 M Street with a principal balance of $47.5 million, and refinanced the mortgage loan collateralized by CEB Tower at Central Place, increasing the principal balance to $234.0 million with an additional $11.0 million capacity. |
▪ | Acquired a 4.25-acre land parcel, Potomac Yard Land Bay H located in Alexandria, Virginia, for $23.0 million, which was under an option agreement in Q3 2018. |
▪ | Acquired the remaining 3.1% interest in West Half, an under construction multifamily asset, for $5.0 million, which increased our interest to 100.0%. |
▪ | Sold a 99-year term leasehold interest in 1700 M Street, 34,000 square foot development site located in the CBD submarket of Washington, DC. JBG SMITH will retain the fee ownership of the land. |
▪ | Sold 1233 20th Street, an operating commercial asset located in Washington, DC, for $65.0 million. In connection with the sale, we repaid the related $41.9 million mortgage loan. |
• | Sold the out-of-service portion of Falkland Chase - North, a multifamily asset located in Silver Spring, Maryland, for $3.8 million. |
• | Sold The Warner, an operating commercial asset located in Washington, D.C., for $376.5 million. We had a 55% ownership interest in the asset. In connection with the sale, our unconsolidated real estate venture repaid the related mortgage payable of $270.5 million. |
• | Sold Commerce Executive, an operating commercial asset located in Reston, Virginia, for $115.0 million. The sale also included approximately 894,000 square feet of estimated potential development density. Including this sale, our aggregate disposition and recapitalization activity is over $999 million. |
• | Issued an additional 442,395 LTIP Units and 477,640 Performance-Based LTIP Units to management and employees with an estimated aggregate fair value of $24.5 million. |
• | Redeemed 1.7 million OP units, which we elected to redeem for an equivalent number of our common shares. |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
in thousands | December 31, 2018 | December 31, 2017 | |||||
ASSETS | |||||||
Real estate, at cost: | |||||||
Land and improvements | $ | 1,371,874 | $ | 1,368,294 | |||
Buildings and improvements | 3,722,930 | 3,670,268 | |||||
Construction in progress, including land | 697,930 | 978,942 | |||||
5,792,734 | 6,017,504 | ||||||
Less accumulated depreciation | (1,051,875 | ) | (1,011,330 | ) | |||
Real estate, net | 4,740,859 | 5,006,174 | |||||
Cash and cash equivalents | 260,553 | 316,676 | |||||
Restricted cash | 138,979 | 21,881 | |||||
Tenant and other receivables, net | 46,568 | 46,734 | |||||
Deferred rent receivable, net | 143,473 | 146,315 | |||||
Investments in and advances to unconsolidated real estate ventures | 322,878 | 261,811 | |||||
Other assets, net | 264,994 | 263,923 | |||||
Assets held for sale | 78,981 | 8,293 | |||||
TOTAL ASSETS | $ | 5,997,285 | $ | 6,071,807 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | 1,838,381 | $ | 2,025,692 | |||
Revolving credit facility | — | 115,751 | |||||
Unsecured term loans, net | 297,129 | 46,537 | |||||
Accounts payable and accrued expenses | 130,960 | 138,607 | |||||
Other liabilities, net | 181,606 | 161,277 | |||||
Liabilities related to assets held for sale | 3,717 | — | |||||
Total liabilities | 2,451,793 | 2,487,864 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 558,140 | 609,129 | |||||
Total equity | 2,987,352 | 2,974,814 | |||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ | 5,997,285 | $ | 6,071,807 |
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUE | |||||||||||||||
Property rentals | $ | 124,741 | $ | 119,726 | $ | 499,835 | $ | 436,625 | |||||||
Tenant reimbursements | 10,639 | 10,824 | 39,290 | 37,985 | |||||||||||
Third-party real estate services, including reimbursements | 26,421 | 24,355 | 98,699 | 63,236 | |||||||||||
Other income | 1,454 | 1,466 | 6,358 | 5,167 | |||||||||||
Total revenue | 163,255 | 156,371 | 644,182 | 543,013 | |||||||||||
EXPENSES | |||||||||||||||
Depreciation and amortization | 67,556 | 51,933 | 211,436 | 161,659 | |||||||||||
Property operating | 40,076 | 37,872 | 148,081 | 118,836 | |||||||||||
Real estate taxes | 17,030 | 18,456 | 71,054 | 66,434 | |||||||||||
General and administrative: | |||||||||||||||
Corporate and other | 8,512 | 7,437 | 33,728 | 39,350 | |||||||||||
Third-party real estate services | 25,274 | 21,557 | 89,826 | 51,919 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 14,806 | 36,030 | 29,251 | |||||||||||
Transaction and other costs | 15,572 | 12,566 | 27,706 | 127,739 | |||||||||||
Total expenses | 183,138 | 164,627 | 617,861 | 595,188 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Income (loss) from unconsolidated real estate ventures, net | 23,991 | (2,778 | ) | 39,409 | (4,143 | ) | |||||||||
Interest and other income, net | 9,991 | 422 | 15,168 | 1,788 | |||||||||||
Interest expense | (18,184 | ) | (14,328 | ) | (74,447 | ) | (58,141 | ) | |||||||
Gain on sale of real estate | 6,394 | — | 52,183 | — | |||||||||||
Loss on extinguishment of debt | (617 | ) | (12 | ) | (5,153 | ) | (701 | ) | |||||||
Gain (reduction of gain) on bargain purchase | — | (3,395 | ) | (7,606 | ) | 24,376 | |||||||||
Total other income (expense) | 21,575 | (20,091 | ) | 19,554 | (36,821 | ) | |||||||||
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE) | 1,692 | (28,347 | ) | 45,875 | (88,996 | ) | |||||||||
Income tax benefit (expense) | (698 | ) | 9,595 | 738 | 9,912 | ||||||||||
NET INCOME (LOSS) | 994 | (18,752 | ) | 46,613 | (79,084 | ) | |||||||||
Net (income) loss attributable to redeemable noncontrolling interests | (178 | ) | 2,331 | (6,710 | ) | 7,328 | |||||||||
Net (income) loss attributable to noncontrolling interests | (106 | ) | 3 | 21 | 3 | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 710 | $ | (16,418 | ) | $ | 39,924 | $ | (71,753 | ) | |||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.31 | $ | (0.70 | ) | ||||
Diluted | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.31 | $ | (0.70 | ) | ||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING : | |||||||||||||||
Basic | 120,917 | 117,955 | 119,176 | 105,359 | |||||||||||
Diluted | 120,917 | 117,955 | 119,176 | 105,359 |
Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||||
EBITDA, EBITDAre and Adjusted EBITDA | ||||||||
Net income | $ | 994 | $ | 46,613 | ||||
Depreciation and amortization expense | 67,556 | 211,436 | ||||||
Interest expense (1) | 18,184 | 74,447 | ||||||
Income tax benefit (expense) | 698 | (738 | ) | |||||
Unconsolidated real estate ventures allocated share of above adjustments | 10,253 | 42,016 | ||||||
Allocated share of above adjustments to noncontrolling interests in consolidated real estate ventures | (182 | ) | (53 | ) | ||||
EBITDA | $ | 97,503 | $ | 373,721 | ||||
Gain on sale of real estate | (6,394 | ) | (52,183 | ) | ||||
Gain on sale of unconsolidated real estate assets | (20,554 | ) | (36,042 | ) | ||||
EBITDAre | $ | 70,555 | $ | 285,496 | ||||
Transaction and other costs (2) | 15,572 | 27,706 | ||||||
Loss on extinguishment of debt | 617 | 5,153 | ||||||
Reduction of gain on bargain purchase | — | 7,606 | ||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 36,030 | ||||||
Distributions in excess of our net investment in unconsolidated real estate venture (3) | (7,374 | ) | (13,676 | ) | ||||
Unconsolidated real estate ventures allocated share of above adjustments | 1,542 | 1,572 | ||||||
Lease liability adjustments | (7,422 | ) | (9,965 | ) | ||||
Allocated share of above adjustments to noncontrolling interests in consolidated real estate ventures | — | (124 | ) | |||||
Adjusted EBITDA | $ | 82,608 | $ | 339,798 | ||||
Net Debt to Adjusted EBITDA (4) | 6.5x | 6.3x | ||||||
December 31, 2018 | ||||||||
Net Debt (at JBG SMITH Share) | ||||||||
Consolidated indebtedness (5) | $ | 2,130,704 | ||||||
Unconsolidated indebtedness (5) | 298,588 | |||||||
Total consolidated and unconsolidated indebtedness | 2,429,292 | |||||||
Less: cash and cash equivalents | 273,611 | |||||||
Net Debt (at JBG SMITH Share) | $ | 2,155,681 | ||||||
$ | (0.27 | ) |
(1) | Interest expense includes the amortization of deferred financing costs and the marking-to-market of interest rate swaps and caps, net of capitalized interest. |
(2) | Includes fees and expenses incurred in connection with the Formation Transaction (including transition services provided by our former parent, integration costs and severance costs), costs related to the pursuit of Amazon HQ2, and costs related to other completed, potential and pursued transactions. |
(3) | Related to our investment in the real estate venture that owns 1101 17th Street. In June 2018, the mortgage loan payable that was collateralized by 1101 17th Street was refinanced eliminating the principal guaranty provisions that had been included in the prior loan. At the time of refinancing, distributions and our share of the cumulative earnings of the venture exceeded our investment in the venture by $5.4 million, which resulted in a negative investment balance. After the elimination of the principal guaranty provisions in the prior mortgage loan, we recognized the $5.4 million negative investment balance as income within “Income from unconsolidated real estate ventures, net” in our statements of operations for the year ended December 31, 2018, which results in a zero investment balance in the real estate venture that owns 1101 17th Street in our balance sheet as of December 31, 2018. We have also suspended the equity method of accounting for this venture and recognized as income in the three months and year ended December 31, 2018, $7.4 million and $8.3 million related to cash distributions. |
(4) | Adjusted EBITDA for the three months ended December 31, 2018 is annualized by multiplying by four. |
(5) | Net of premium/discount and deferred financing costs. |
in thousands, except per share data | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||
FFO and Core FFO | |||||||
Net income attributable to common shareholders | $ | 710 | $ | 39,924 | |||
Net income attributable to redeemable noncontrolling interests | 178 | 6,710 | |||||
Net income (loss) attributable to noncontrolling interests | 106 | (21 | ) | ||||
Net income | 994 | 46,613 | |||||
Gain on sale of real estate | (6,394 | ) | (52,183 | ) | |||
Gain on sale of unconsolidated real estate assets | (20,554 | ) | (36,042 | ) | |||
Real estate depreciation and amortization | 64,891 | 201,062 | |||||
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures | 6,079 | 25,039 | |||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (182 | ) | (51 | ) | |||
FFO Attributable to Operating Partnership Common Units | $ | 44,834 | $ | 184,438 | |||
FFO attributable to redeemable noncontrolling interests | (5,741 | ) | (25,798 | ) | |||
FFO attributable to common shareholders | $ | 39,093 | $ | 158,640 | |||
FFO attributable to the operating partnership common units | $ | 44,834 | $ | 184,438 | |||
Transaction and other costs, net of tax (1) | 14,509 | 25,625 | |||||
Mark-to-market on derivative instruments | (542 | ) | (1,941 | ) | |||
Share of gain from mark-to-market on derivative instruments held by unconsolidated real estate ventures | 379 | (102 | ) | ||||
Loss on extinguishment of debt, net of noncontrolling interests | 2,159 | 6,571 | |||||
Distributions in excess of our net investment in unconsolidated real estate venture (2) | (7,374 | ) | (13,676 | ) | |||
Reduction of gain on bargain purchase | — | 7,606 | |||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 36,030 | |||||
Lease liability adjustments | (7,422 | ) | (9,965 | ) | |||
Amortization of management contracts intangible, net of tax | 1,287 | 5,148 | |||||
Core FFO Attributable to Operating Partnership Common Units | $ | 56,948 | $ | 239,734 | |||
Core FFO attributable to redeemable noncontrolling interests | (7,292 | ) | (33,536 | ) | |||
Core FFO attributable to common shareholders | $ | 49,656 | $ | 206,198 | |||
FFO per diluted common share | $ | 0.32 | $ | 1.33 | |||
Core FFO per diluted common share | $ | 0.41 | $ | 1.73 | |||
Weighted average diluted shares | 120,917 | 119,176 | |||||
in thousands, except per share data | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||
FAD | |||||||
Core FFO attributable to the operating partnership common units | $ | 56,948 | $ | 239,734 | |||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | (35,836 | ) | (72,113 | ) | |||
Straight-line and other rent adjustments (3) | (6,692 | ) | (10,351 | ) | |||
Share of straight-line rent from unconsolidated real estate ventures | 680 | 1,208 | |||||
Third-party lease liability assumption payments | (1,130 | ) | (3,133 | ) | |||
Share of third party lease liability assumption payments for unconsolidated real estate ventures | — | (50 | ) | ||||
Share-based compensation expense | 4,666 | 19,762 | |||||
Amortization of debt issuance costs | 1,140 | 4,660 | |||||
Share of amortization of debt issuance costs from unconsolidated real estate ventures | 67 | 268 | |||||
Non-real estate depreciation and amortization | 893 | 3,286 | |||||
FAD available to the Operating Partnership Common Units (A) (4) | $ | 20,736 | $ | 183,271 | |||
Distributions to common shareholders and unitholders (5) (B) | $ | 31,284 | $ | 125,100 | |||
FAD Payout Ratio (B÷A) (6) | 150.9 | % | 68.3 | % |
Capital Expenditures | |||||||
Maintenance and recurring capital expenditures | $ | 14,445 | $ | 28,230 | |||
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures | 978 | 2,821 | |||||
Second generation tenant improvements and leasing commissions | 19,211 | 37,980 | |||||
Share of second generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 1,202 | 3,082 | |||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | 35,836 | 72,113 | |||||
First generation tenant improvements and leasing commissions | 8,215 | 23,519 | |||||
Share of first generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 17 | 2,572 | |||||
Non-recurring capital expenditures | 15,375 | 25,401 | |||||
Share of non-recurring capital expenditures from unconsolidated joint ventures | 112 | 1,174 | |||||
Non-recurring capital expenditures | 23,719 | 52,666 | |||||
Total JBG SMITH Share of Capital Expenditures | $ | 59,555 | $ | 124,779 |
(1) | Includes fees and expenses incurred in connection with the Formation Transaction (including transition services provided by our former parent, integration costs, and severance costs), costs related to the pursuit of Amazon HQ2, and costs related to other completed, potential and pursued transactions. |
(2) | Related to our investment in the real estate venture that owns 1101 17th Street. In June 2018, the mortgage loan payable that was collateralized by 1101 17th Street was refinanced eliminating the principal guaranty provisions that had been included in the prior loan. At the time of refinancing, distributions and our share of the cumulative earnings of the venture exceeded our investment in the venture by $5.4 million, which resulted in a negative investment balance. After the elimination of the principal guaranty provisions in the prior mortgage loan, we recognized the $5.4 million negative investment balance as income within “Income from unconsolidated real estate ventures, net” in our statements of operations for the year ended December 31, 2018, which results in a zero investment balance in the real estate venture that owns 1101 17th Street in our balance sheet as of December 31, 2018. We have also suspended the equity method of accounting for this venture and recognized as income in the three months and year ended December 31, 2018, $7.4 million and $8.3 million related to cash distributions. |
(3) | Includes straight-line rent, above/below market lease amortization and lease incentive amortization. |
(4) | The fourth quarter decline in FAD available to the Operating Partnership Units was attributable to a significant increase in second generation tenant improvements and leasing commissions from the early renewal of several leases during the quarter and an increase in recurring capital expenditures, which is consistent with historical seasonality trends. |
(5) | In December 2018, our Board of Trustees declared regular quarterly dividends of $0.225 per common share and a special dividend of $0.10 per common share, both of which were 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. |
dollars in thousands | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | 710 | $ | (16,418 | ) | $ | 39,924 | $ | (71,753 | ) | |||||
Add: | |||||||||||||||
Depreciation and amortization expense | 67,556 | 51,933 | 211,436 | 161,659 | |||||||||||
General and administrative expense: | |||||||||||||||
Corporate and other | 8,512 | 7,437 | 33,728 | 39,350 | |||||||||||
Third-party real estate services | 25,274 | 21,557 | 89,826 | 51,919 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 14,806 | 36,030 | 29,251 | |||||||||||
Transaction and other costs | 15,572 | 12,566 | 27,706 | 127,739 | |||||||||||
Interest expense | 18,184 | 14,328 | 74,447 | 58,141 | |||||||||||
Loss on extinguishment of debt | 617 | 12 | 5,153 | 701 | |||||||||||
Reduction of gain (gain) on bargain purchase | — | 3,395 | 7,606 | (24,376 | ) | ||||||||||
Income tax expense (benefit) | 698 | (9,595 | ) | (738 | ) | (9,912 | ) | ||||||||
Net (income) loss attributable to redeemable noncontrolling interests | 178 | (2,331 | ) | 6,710 | (7,328 | ) | |||||||||
Less: | |||||||||||||||
Third-party real estate services, including reimbursements | 26,421 | 24,355 | 98,699 | 63,236 | |||||||||||
Other income | 1,454 | 1,466 | 6,358 | 5,167 | |||||||||||
Income (loss) from unconsolidated real estate ventures, net | 23,991 | (2,778 | ) | 39,409 | (4,143 | ) | |||||||||
Interest and other income, net | 9,991 | 422 | 15,168 | 1,788 | |||||||||||
Gain on sale of real estate | 6,394 | — | 52,183 | — | |||||||||||
Net (income) loss attributable to noncontrolling interests | (106 | ) | 3 | 21 | 3 | ||||||||||
Consolidated NOI | 78,274 | 74,222 | 319,990 | 289,340 | |||||||||||
NOI attributable to consolidated JBG Assets (1) | — | — | — | 24,936 | |||||||||||
Proportionate NOI attributable to unconsolidated JBG Assets (1) | — | — | — | 8,688 | |||||||||||
Proportionate NOI attributable to unconsolidated real estate ventures | 8,847 | 8,646 | 36,824 | 21,530 | |||||||||||
Non-cash rent adjustments (2) | (6,691 | ) | 887 | (10,349 | ) | (6,715 | ) | ||||||||
Other adjustments (3) | 5,110 | 5,842 | 19,638 | 11,587 | |||||||||||
Total adjustments | 7,266 | 15,375 | 46,113 | 60,026 | |||||||||||
NOI | $ | 85,540 | $ | 89,597 | $ | 366,103 | $ | 349,366 | |||||||
Non-same store NOI (4) | 8,742 | 6,656 | 115,801 | 96,342 | |||||||||||
Same store NOI (5) | $ | 76,798 | $ | 82,941 | $ | 250,302 | $ | 253,024 | |||||||
Growth in same store NOI | (7.4 | )% | (1.1 | )% | |||||||||||
Number of properties in same store pool | 57 | 32 |
(1) | Includes financial information for the JBG Assets as if the July 18, 2017 acquisition of the JBG Assets had been completed as of the beginning of the period presented. |
(2) | Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization. |
(3) | Adjustment to include other income and payments associated with assumed lease liabilities related to operating properties, and exclude incidental income generated by development assets and commercial lease termination revenue. Includes property management fees of $4.1 million and $4.2 million for the three months ended December 31, 2018 and 2017 and $16.6 million and $7.8 million for the years ended December 31, 2018 and 2017. |
(4) | Includes the results for properties that were not owned, operated and 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. |
(5) | 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, 2018 |
Page | |
Overview | |
Disclosures | 3-4 |
Company Profile | 5-6 |
Financial Highlights | |
Financial Highlights - Trends | 8-9 |
Portfolio Overview | |
Financial Information | |
Condensed Consolidated Balance Sheets | |
Condensed Consolidated and Combined Statements of Operations | |
Unconsolidated Real Estate Ventures - Balance Sheet and Operating Information | |
Other Tangible Assets and Liabilities, Net | |
EBITDA, EBITDAre and Adjusted EBITDA (Non-GAAP) | |
FFO, Core FFO and FAD (Non-GAAP) | 16-17 |
Third-Party Asset Management and Real Estate Services Business (Non-GAAP) | |
Pro Rata Adjusted General and Administrative Expenses (Non-GAAP) | |
Operating Assets | |
Summary & Same Store NOI (Non-GAAP) | 21-22 |
Summary NOI (Non-GAAP) | |
Summary NOI - Commercial (Non-GAAP) | |
Summary NOI - Multifamily (Non-GAAP) | |
NOI Reconciliations (Non-GAAP) | |
Leasing Activity | |
Leasing Activity - Office | |
Net Effective Rent - Office | |
Lease Expirations | |
Signed But Not Yet Commenced Leases | |
Tenant Concentration | |
Industry Diversity | |
Property Data | |
Portfolio Summary | |
Property Tables: | |
Commercial | 34-37 |
Multifamily | 38-40 |
Under Construction | |
Future Development | |
Disposition & Recapitalization Activity | |
Debt | |
Debt Summary | |
Debt by Instrument | 45-46 |
Real Estate Ventures | |
Consolidated Real Estate Ventures | |
Unconsolidated Real Estate Ventures | 48-49 |
Definitions | 50-53 |
Appendices - Reconciliations of Non-GAAP Financial Highlights | 54-57 |
![]() | Page 2 |
DISCLOSURES | DECEMBER 31, 2018 |
![]() | Page 3 |
DISCLOSURES | DECEMBER 31, 2018 |
• | 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") |
• | 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, 2018 (Unaudited) |
Company Overview |
▪ | Net income attributable to common shareholders was $0.7 million, or $(0.01) per diluted share. |
▪ | FFO attributable to common shareholders was $39.1 million, or $0.32 per diluted share. |
▪ | Core FFO attributable to common shareholders was $49.7 million, or $0.41 per diluted share. |
▪ | Annualized NOI for the operating portfolio for the three months ended December 31, 2018 was $341.8 million, compared to $364.9 million for the three months ended September 30, 2018, at our share. The decrease in NOI is primarily attributable to lost income from disposed assets and increased ground rent expense at Courthouse Plaza 1 and 2. |
▪ | The operating commercial portfolio was 89.6% leased and 85.5% occupied as of December 31, 2018, compared to 87.1% and 85.4% as of September 30, 2018 at our share. |
▪ | The operating multifamily portfolio was 95.7% leased and 93.9% occupied as of December 31, 2018, compared to 96.1% and 94.3% as of September 30, 2018 at our share. |
▪ | Same store NOI decreased 7.4% to $76.8 million for the three months ended December 31, 2018, compared to $82.9 million for the three months ended December 31, 2017. Same store NOI decreased 1.1% to $250.3 million for the year ended December 31, 2018, compared to $253.0 million for the year ended December 31, 2017. The decrease in same store NOI for the three months and year ended December 31, 2018 is largely attributable to rental abatements, increased ground rent expense at Courthouse Plaza 1 and 2, and anticipated tenant move-outs. The reported same store pool as of December 31, 2018 includes only the assets that were in service for the entirety of both periods being compared and does not include any JBG Assets acquired in the Formation Transaction for the year ended December 31, 2018. Including the JBG Assets, same store NOI would have slightly increased for the year ended December 31, 2018. See page 52 for the definition of same store. |
▪ | During the quarter ended December 31, 2018, there were nine assets under construction (five commercial assets and four multifamily assets), consisting of 926,530 square feet and 1,298 units, both at our share. |
▪ | Commenced construction on 1770 Crystal Drive and Central District Retail as a result of the Amazon selection of JBG SMITH to house and develop a new headquarters location at National Landing ("Amazon HQ2"). |
▪ | As of December 31, 2018, there were no assets in near-term development. |
![]() | Page 5 |
COMPANY PROFILE | DECEMBER 31, 2018 (Unaudited) |
Company Overview |
▪ | As of December 31, 2018, there were 41 future development assets consisting of 19.6 million square feet of estimated potential density at our share. |
▪ | Acquired a 4.25-acre land parcel, Potomac Yard Land Bay H located in Alexandria, Virginia, for $23.0 million, which was under an option agreement in Q3 2018. |
▪ | Acquired the remaining 3.1% interest in West Half, an under construction multifamily asset, for $5.0 million, which increased our interest to 100.0%. |
▪ | Sold The Warner, an operating commercial asset located in Washington, DC, for a sales price of $376.5 million. We had a 55% ownership interest in the asset. |
▪ | Sold 1233 20th Street, an operating commercial asset located in Washington, DC, for $65.0 million. |
▪ | Sold the out-of-service portion of Falkland Chase - North, a multifamily asset located in Silver Spring, Maryland, for $3.8 million. |
Executive Officers | Company Snapshot as of December 31, 2018 | |||||
W. Matthew Kelly | Chief Executive Officer and Trustee | Exchange/ticker | NYSE: JBGS | |||
David P. Paul | President and Chief Operating Officer | Insider ownership * | approximately 10% | |||
Stephen W. Theriot | Chief Financial Officer | Indicated annual dividend per share | $0.90 | |||
Kevin P. Reynolds | Chief Development Officer | Dividend yield | 2.6% | |||
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) | ||||
Share price | $34.81 | |||||
Shares and units outstanding (in millions) | 137.76 | |||||
Total market capitalization | $4.80 | |||||
Total consolidated and unconsolidated indebtedness at JBG SMITH share | 2.43 | |||||
Less: cash and cash equivalents at JBG SMITH share | (0.27) | |||||
Net debt | $2.16 | |||||
Total Enterprise Value | $6.96 | |||||
Net Debt / Total Enterprise Value | 31.0% | |||||
* | Represents the percentage of all outstanding common shares of JBG SMITH Properties owned or represented by the Company’s trustees and executive officers as of February 26, 2019 assuming that all OP Units are redeemed for shares. | |||||
$ | 2,155,681 | |||||
30.972 | % |
![]() | Page 6 |
FINANCIAL HIGHLIGHTS | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands, except per share data | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||
Summary Financial Results | |||||||
Total revenue | $ | 163,255 | $ | 644,182 | |||
Net income attributable to common shareholders | $ | 710 | $ | 39,924 | |||
Per diluted common share | $ | (0.01 | ) | $ | 0.31 | ||
NOI | $ | 85,540 | $ | 366,103 | |||
FFO attributable to operating partnership common units (including units owned by JBG SMITH Properties) | $ | 44,834 | $ | 184,438 | |||
Per operating partnership common unit | $ | 0.32 | $ | 1.33 | |||
Core FFO attributable to operating partnership common units (including units owned by JBG SMITH Properties) | $ | 56,948 | $ | 239,734 | |||
Per operating partnership common unit | $ | 0.41 | $ | 1.73 | |||
FAD attributable to the operating partnership common units (including units owned by JBG SMITH Properties) (1) | $ | 20,736 | $ | 183,271 | |||
FAD payout ratio | 150.9 | % | 68.3 | % | |||
EBITDA attributable to operating partnership common units (including units owned by JBG SMITH Properties) | $ | 97,503 | $ | 373,721 | |||
EBITDAre attributable to operating partnership common units (including units owned by JBG SMITH Properties) | $ | 70,555 | $ | 285,496 | |||
Adjusted EBITDA attributable to operating partnership common units (including units owned by JBG SMITH Properties) | $ | 82,608 | $ | 339,798 | |||
Net debt / annualized adjusted EBITDA | 6.5x | 6.3x | |||||
December 31, 2018 | |||||||
Debt Summary and Key Ratios (at JBG SMITH Share) | |||||||
Total consolidated indebtedness (2) | $ | 2,130,704 | |||||
Total consolidated and unconsolidated indebtedness (2) | $ | 2,429,292 | |||||
Weighted average interest rates: | |||||||
Variable rate debt | 4.51 | % | |||||
Fixed rate debt | 4.13 | % | |||||
Total debt | 4.23 | % | |||||
Cash and cash equivalents | $ | 273,611 |
(1) | The fourth quarter decline in FAD available to the Operating Partnership Units was attributable to a significant increase in second generation tenant improvements and leasing commissions from the early renewal of several leases during the quarter and an increase in recurring capital expenditures, which is consistent with historical seasonality trends. |
(2) | Net of premium/discount and deferred financing costs. During 2018, we sold several Operating Commercial assets, see page 43 for a list of the disposed assets and related NOI. |
![]() | Page 7 |
FINANCIAL HIGHLIGHTS - TRENDS | DECEMBER 31, 2018 (Unaudited) |
Three Months Ended | ||||||||||||||||
dollars in thousands, except per share data, at JBG SMITH share | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | |||||||||||
Commercial NOI (1) | $ | 65,462 | $ | 71,314 | $ | 75,311 | $ | 73,764 | $ | 72,566 | ||||||
Multifamily NOI (2) | 20,078 | 19,615 | 19,324 | 19,059 | 18,251 | |||||||||||
Total NOI | $ | 85,540 | $ | 90,929 | $ | 94,635 | $ | 92,823 | $ | 90,817 | ||||||
Total Annualized NOI (3) | $ | 341,849 | $ | 364,915 | $ | 378,540 | $ | 371,292 | $ | 363,268 | ||||||
Net income (loss) attributable to common shareholders | $ | 710 | $ | 22,830 | $ | 20,574 | $ | (4,190 | ) | $ | (16,418 | ) | ||||
Per diluted common share | $ | (0.01 | ) | $ | 0.19 | $ | 0.17 | $ | (0.04 | ) | $ | (0.15 | ) | |||
FFO attributable to operating partnership common units (4) | $ | 44,834 | $ | 49,246 | $ | 42,522 | $ | 47,836 | $ | 38,031 | ||||||
Per operating partnership common unit | $ | 0.32 | $ | 0.36 | $ | 0.31 | $ | 0.35 | $ | 0.28 | ||||||
Core FFO attributable to operating partnership common units (4) | $ | 56,948 | $ | 59,256 | $ | 62,305 | $ | 61,225 | $ | 57,872 | ||||||
Per operating partnership common unit | $ | 0.41 | $ | 0.43 | $ | 0.45 | $ | 0.44 | $ | 0.42 | ||||||
FAD attributable to operating partnership common units (4) (5) | $ | 20,736 | $ | 45,019 | $ | 57,568 | $ | 59,948 | $ | 36,636 | ||||||
FAD payout ratio | 150.9 | % | 69.3 | % | 54.2 | % | 52.4 | % | 84.9 | % | ||||||
EBITDA attributable to operating partnership common units (4) | $ | 97,503 | $ | 102,109 | $ | 101,211 | $ | 72,898 | $ | 48,778 | ||||||
EBITDAre attributable to operating partnership common units (4) | $ | 70,555 | $ | 74,683 | $ | 67,815 | $ | 72,443 | $ | 48,778 | ||||||
Adjusted EBITDA attributable to operating partnership common units (4) | $ | 82,608 | $ | 83,842 | $ | 87,226 | $ | 86,122 | $ | 79,557 | ||||||
Net debt/annualized adjusted EBITDA | 6.5x | 6.7x | 6.3x | 6.9x | 7.1x | |||||||||||
Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | ||||||||||||
Number of Operating Assets | ||||||||||||||||
Commercial (1) | 46 | 49 | 51 | 53 | 54 | |||||||||||
Multifamily (2) | 16 | 16 | 16 | 15 | 15 | |||||||||||
Total | 62 | 65 | 67 | 68 | 69 | |||||||||||
Operating Portfolio % Leased (6) | ||||||||||||||||
Commercial (1) (7) | 89.6 | % | 87.1 | % | 87.5 | % | 87.9 | % | 88.0 | % | ||||||
Multifamily (2) | 95.7 | % | 96.1 | % | 95.9 | % | 96.1 | % | 95.7 | % | ||||||
Weighted Average | 91.2 | % | 89.4% | 89.5% | 89.8% | 89.8% | ||||||||||
Operating Portfolio % Occupied (8) | ||||||||||||||||
Commercial (1) (7) | 85.5 | % | 85.4% | 86.0% | 87.0% | 87.2% | ||||||||||
Multifamily (2) | 93.9 | % | 94.3% | 92.6% | 94.2% | 93.8% | ||||||||||
Weighted Average | 87.7 | % | 87.6% | 87.7% | 88.7% | 88.8% |
![]() | Page 8 |
FINANCIAL HIGHLIGHTS - TRENDS | DECEMBER 31, 2018 (Unaudited) |
(1) | Beginning in Q4 2018, JBG SMITH renamed the Office portfolio to the Commercial portfolio and reclassified Vienna Retail, Stonebridge at Potomac Town Center and Crystal City Marriott from the Other portfolio to the Commercial portfolio. |
(2) | Beginning in Q4 2018, JBG SMITH reclassified North End Retail from the Other portfolio to the Multifamily portfolio. |
(3) | Beginning in Q3 2018, JBG SMITH revised the presentation of annualized NOI for Crystal City Marriott to reflect the trailing twelve-month NOI due to the seasonality in the hospitality business. |
(4) | Operating partnership common units include units owned by JBG SMITH Properties. |
(5) | The fourth quarter decline in FAD available to the Operating Partnership Units was attributable to a significant increase in second generation tenant improvements and leasing commissions from the early renewal of several leases during the quarter and an increase in recurring capital expenditures, which is consistent with historical seasonality trends. |
(6) | Beginning in Q3 2018, JBG SMITH excludes storage square feet from the percent leased metric. |
(7) | The Crystal City Marriott and 1700 M Street are excluded from the percent leased and the percent occupied metrics. |
(8) | Percent occupied excludes occupied retail square feet. |
![]() | Page 9 |
PORTFOLIO OVERVIEW | DECEMBER 31, 2018 (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 | 45 | 12,381,927 | 10,741,949 | 89.4 | % | 85.1 | % | $ | 387,182 | $ | 43.43 | $ | 246,113 | |||||||||||||
Recently delivered | 1 | 552,540 | 552,540 | 93.0 | % | 92.6 | % | 30,780 | 61.39 | 15,424 | ||||||||||||||||
Total / weighted average | 46 | 12,934,467 | 11,294,489 | 89.6 | % | 85.5 | % | $ | 417,962 | $ | 44.44 | $ | 261,537 | |||||||||||||
Multifamily | ||||||||||||||||||||||||||
In service | 15 | 6,024 | 4,240 | 96.5 | % | 94.9 | % | $ | 106,349 | $ | 2,123 | $ | 76,364 | |||||||||||||
Recently delivered | 1 | 291 | 291 | 83.1 | % | 80.4 | % | 7,649 | 2,392 | 3,948 | ||||||||||||||||
Total / weighted average | 16 | 6,315 | 4,531 | 95.7 | % | 93.9 | % | $ | 113,998 | $ | 2,138 | $ | 80,312 | |||||||||||||
Operating - Total / Weighted Average | 62 | 12,934,467 SF/ 6,315 Units | 11,294,489 SF/ 4,531 Units | 91.2 | % | 87.7 | % | $ | 531,960 | $44.44 per SF/ $2,138 per unit | $ | 341,849 | ||||||||||||||
Development (3) | ||||||||||||||||||||||||||
Under Construction | ||||||||||||||||||||||||||
Commercial (4) | 5 | 1,158,429 | 926,530 | 49.5 | % | |||||||||||||||||||||
Multifamily | 4 | 1,476 | 1,298 | N/A | ||||||||||||||||||||||
Development - Total | 9 | 1,158,429 SF/ 1,476 Units | 926,530 SF/ 1,298 Units | 49.5 | % | |||||||||||||||||||||
Future Development | 41 | 23,071,000 | 19,628,300 |
(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. The 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) | Includes the Crystal City Marriott and 1700 M Street. The 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 and future development assets. |
(4) | Includes JBG SMITH’s lease for approximately 84,400 square feet at 4747 Bethesda Avenue. |
![]() | Page 10 |
CONDENSED CONSOLIDATED BALANCE SHEETS | DECEMBER 31, 2018 (Unaudited) |
in thousands | December 31, 2018 | December 31, 2017 | |||||
ASSETS | |||||||
Real estate, at cost: | |||||||
Land and improvements | $ | 1,371,874 | $ | 1,368,294 | |||
Buildings and improvements | 3,722,930 | 3,670,268 | |||||
Construction in progress, including land | 697,930 | 978,942 | |||||
5,792,734 | 6,017,504 | ||||||
Less accumulated depreciation | (1,051,875 | ) | (1,011,330 | ) | |||
Real estate, net | 4,740,859 | 5,006,174 | |||||
Cash and cash equivalents | 260,553 | 316,676 | |||||
Restricted cash | 138,979 | 21,881 | |||||
Tenant and other receivables, net | 46,568 | 46,734 | |||||
Deferred rent receivable, net | 143,473 | 146,315 | |||||
Investments in and advances to unconsolidated real estate ventures | 322,878 | 261,811 | |||||
Other assets, net | 264,994 | 263,923 | |||||
Assets held for sale | 78,981 | 8,293 | |||||
TOTAL ASSETS | $ | 5,997,285 | $ | 6,071,807 | |||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | 1,838,381 | $ | 2,025,692 | |||
Revolving credit facility | — | 115,751 | |||||
Unsecured term loans, net | 297,129 | 46,537 | |||||
Accounts payable and accrued expenses | 130,960 | 138,607 | |||||
Other liabilities, net | 181,606 | 161,277 | |||||
Liabilities related to assets held for sale | 3,717 | — | |||||
Total liabilities | 2,451,793 | 2,487,864 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 558,140 | 609,129 | |||||
Total equity | 2,987,352 | 2,974,814 | |||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | $ | 5,997,285 | $ | 6,071,807 |
![]() | Page 11 |
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS | DECEMBER 31, 2018 (Unaudited) (Unaudited) (In thousands) |
in thousands, except per share data | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUE | |||||||||||||||
Property rentals | $ | 124,741 | $ | 119,726 | $ | 499,835 | $ | 436,625 | |||||||
Tenant reimbursements | 10,639 | 10,824 | 39,290 | 37,985 | |||||||||||
Third-party real estate services, including reimbursements | 26,421 | 24,355 | 98,699 | 63,236 | |||||||||||
Other income | 1,454 | 1,466 | 6,358 | 5,167 | |||||||||||
Total revenue | 163,255 | 156,371 | 644,182 | 543,013 | |||||||||||
EXPENSES | |||||||||||||||
Depreciation and amortization | 67,556 | 51,933 | 211,436 | 161,659 | |||||||||||
Property operating | 40,076 | 37,872 | 148,081 | 118,836 | |||||||||||
Real estate taxes | 17,030 | 18,456 | 71,054 | 66,434 | |||||||||||
General and administrative: | |||||||||||||||
Corporate and other | 8,512 | 7,437 | 33,728 | 39,350 | |||||||||||
Third-party real estate services | 25,274 | 21,557 | 89,826 | 51,919 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 14,806 | 36,030 | 29,251 | |||||||||||
Transaction and other costs | 15,572 | 12,566 | 27,706 | 127,739 | |||||||||||
Total expenses | 183,138 | 164,627 | 617,861 | 595,188 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Income (loss) from unconsolidated real estate ventures, net | 23,991 | (2,778 | ) | 39,409 | (4,143 | ) | |||||||||
Interest and other income, net | 9,991 | 422 | 15,168 | 1,788 | |||||||||||
Interest expense | (18,184 | ) | (14,328 | ) | (74,447 | ) | (58,141 | ) | |||||||
Gain on sale of real estate | 6,394 | — | 52,183 | — | |||||||||||
Loss on extinguishment of debt | (617 | ) | (12 | ) | (5,153 | ) | (701 | ) | |||||||
Gain (reduction of gain) on bargain purchase | — | (3,395 | ) | (7,606 | ) | 24,376 | |||||||||
Total other income (expense) | 21,575 | (20,091 | ) | 19,554 | (36,821 | ) | |||||||||
INCOME (LOSS) BEFORE INCOME TAX BENEFIT (EXPENSE) | 1,692 | (28,347 | ) | 45,875 | (88,996 | ) | |||||||||
Income tax benefit (expense) | (698 | ) | 9,595 | 738 | 9,912 | ||||||||||
NET INCOME (LOSS) | 994 | (18,752 | ) | 46,613 | (79,084 | ) | |||||||||
Net (income) loss attributable to redeemable noncontrolling interests | (178 | ) | 2,331 | (6,710 | ) | 7,328 | |||||||||
Net (income) loss attributable to noncontrolling interests | (106 | ) | 3 | 21 | 3 | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 710 | $ | (16,418 | ) | $ | 39,924 | $ | (71,753 | ) | |||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||||||
Basic | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.31 | $ | (0.70 | ) | ||||
Diluted | $ | (0.01 | ) | $ | (0.15 | ) | $ | 0.31 | $ | (0.70 | ) | ||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING : | |||||||||||||||
Basic | 120,917 | 117,955 | 119,176 | 105,359 | |||||||||||
Diluted | 120,917 | 117,955 | 119,176 | 105,359 |
![]() | Page 12 |
UNCONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2018 (Unaudited) |
in thousands, at JBG SMITH share | |||
BALANCE SHEET INFORMATION | December 31, 2018 | ||
Total real estate, at cost | $ | 631,952 | |
Less accumulated depreciation | (26,617 | ) | |
Real estate, net | 605,335 | ||
Cash and cash equivalents | 13,072 | ||
Other assets, net | 32,673 | ||
Total assets | $ | 651,080 | |
Borrowings, net | $ | 298,588 | |
Other liabilities, net | 31,436 | ||
Total liabilities | $ | 330,024 |
OPERATING INFORMATION | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||
Total revenue | $ | 18,383 | 77,650 | ||||
Expenses: | |||||||
Depreciation and amortization | 6,144 | 25,450 | |||||
Property operating | 8,487 | 33,874 | |||||
Real estate taxes | 2,408 | 10,157 | |||||
Total expenses | 17,039 | 69,481 | |||||
Other income (expense): | |||||||
Interest expense | (5,075 | ) | (17,893 | ) | |||
Loss on extinguishment of debt | (1,542 | ) | (1,542 | ) | |||
Gain on the sale of unconsolidated real estate venture | 17,897 | 17,897 | |||||
Interest and other income, net | 59 | (179 | ) | ||||
Loss before income tax expense | 12,683 | 6,452 | |||||
Income tax expense | 2 | (12 | ) | ||||
Net loss | $ | 12,685 | $ | 6,440 | |||
Gain on the sale of interest in unconsolidated real estate venture | — | 15,488 | |||||
Basis difference with our unconsolidated real estate partners | 2,764 | 3,091 | |||||
Distributions in excess of our net investment in unconsolidated real estate ventures | 7,374 | 13,676 | |||||
Other | 1,168 | 714 | |||||
Income from unconsolidated real estate ventures, net | $ | 23,991 | $ | 39,409 |
![]() | Page 13 |
OTHER TANGIBLE ASSETS AND LIABILITIES, NET | DECEMBER 31, 2018 (Unaudited) |
in thousands, at JBG SMITH share | December 31, 2018 | ||
Other Tangible Assets, Net (1) (2) | |||
Restricted cash | $ | 142,921 | |
Tenant and other receivables, net | 51,086 | ||
Other assets, net | 36,975 | ||
Total Other Tangible Assets, Net | $ | 230,982 | |
Other Tangible Liabilities, Net (2) (3) | |||
Accounts payable and accrued liabilities | $ | 148,950 | |
Other liabilities | 169,765 | ||
Total Other Tangible Liabilities, Net | $ | 318,715 |
(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, 2018 (Unaudited) |
dollars in thousands | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | ||||||
EBITDA, EBITDAre and Adjusted EBITDA | ||||||||
Net income | $ | 994 | $ | 46,613 | ||||
Depreciation and amortization expense | 67,556 | 211,436 | ||||||
Interest expense (1) | 18,184 | 74,447 | ||||||
Income tax benefit (expense) | 698 | (738 | ) | |||||
Unconsolidated real estate ventures allocated share of above adjustments | 10,253 | 42,016 | ||||||
Allocated share of above adjustments to noncontrolling interests in consolidated real estate ventures | (182 | ) | (53 | ) | ||||
EBITDA | $ | 97,503 | $ | 373,721 | ||||
Gain on sale of real estate | (6,394 | ) | (52,183 | ) | ||||
Gain on sale of unconsolidated real estate assets | (20,554 | ) | (36,042 | ) | ||||
EBITDAre | $ | 70,555 | $ | 285,496 | ||||
Transaction and other costs (2) | 15,572 | 27,706 | ||||||
Loss on extinguishment of debt | 617 | 5,153 | ||||||
Reduction of gain on bargain purchase | — | 7,606 | ||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 36,030 | ||||||
Distributions in excess of our net investment in unconsolidated real estate venture (3) | (7,374 | ) | (13,676 | ) | ||||
Unconsolidated real estate ventures allocated share of above adjustments | 1,542 | 1,572 | ||||||
Lease liability adjustments | (7,422 | ) | (9,965 | ) | ||||
Allocated share of above adjustments to noncontrolling interests in consolidated real estate ventures | — | (124 | ) | |||||
Adjusted EBITDA | $ | 82,608 | $ | 339,798 | ||||
Net Debt to Adjusted EBITDA (4) | 6.5x | 6.3x | ||||||
December 31, 2018 | ||||||||
Net Debt (at JBG SMITH Share) | ||||||||
Consolidated indebtedness (5) | $ | 2,130,704 | ||||||
Unconsolidated indebtedness (5) | 298,588 | |||||||
Total consolidated and unconsolidated indebtedness | 2,429,292 | |||||||
Less: cash and cash equivalents | 273,611 | |||||||
Net Debt (at JBG SMITH Share) | $ | 2,155,681 | ||||||
$ | (0.27 | ) |
(1) | Interest expense includes the amortization of deferred financing costs and the marking-to-market of interest rate swaps and caps, net of capitalized interest. |
(2) | Includes fees and expenses incurred in connection with the Formation Transaction (including transition services provided by our former parent, integration costs and severance costs), costs related to the pursuit of Amazon HQ2, and costs related to other completed, potential and pursued transactions. |
(3) | Related to our investment in the real estate venture that owns 1101 17th Street. In June 2018, the mortgage loan payable that was collateralized by 1101 17th Street was refinanced eliminating the principal guaranty provisions that had been included in the prior loan. At the time of refinancing, distributions and our share of the cumulative earnings of the venture exceeded our investment in the venture by $5.4 million, which resulted in a negative investment balance. After the elimination of the principal guaranty provisions in the prior mortgage loan, we recognized the $5.4 million negative investment balance as income within “Income from unconsolidated real estate ventures, net” in our statements of operations for the year ended December 31, 2018, which results in a zero investment balance in the real estate venture that owns 1101 17th Street in our balance sheet as of December 31, 2018. We have also suspended the equity method of accounting for this venture and recognized as income in the three months and year ended December 31, 2018, $7.4 million and $8.3 million related to cash distributions. |
(4) | Adjusted EBITDA for the three months ended December 31, 2018 is annualized by multiplying by four. |
(5) | Net of premium/discount and deferred financing costs. |
![]() | Page 15 |
FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
in thousands, except per share data | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||
FFO and Core FFO | |||||||
Net income attributable to common shareholders | $ | 710 | $ | 39,924 | |||
Net income attributable to redeemable noncontrolling interests | 178 | 6,710 | |||||
Net income (loss) attributable to noncontrolling interests | 106 | (21 | ) | ||||
Net income | 994 | 46,613 | |||||
Gain on sale of real estate | (6,394 | ) | (52,183 | ) | |||
Gain on sale of unconsolidated real estate assets | (20,554 | ) | (36,042 | ) | |||
Real estate depreciation and amortization | 64,891 | 201,062 | |||||
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures | 6,079 | 25,039 | |||||
Net income attributable to noncontrolling interests in consolidated real estate ventures | (182 | ) | (51 | ) | |||
FFO Attributable to Operating Partnership Common Units | $ | 44,834 | $ | 184,438 | |||
FFO attributable to redeemable noncontrolling interests | (5,741 | ) | (25,798 | ) | |||
FFO attributable to common shareholders | $ | 39,093 | $ | 158,640 | |||
FFO attributable to the operating partnership common units | $ | 44,834 | $ | 184,438 | |||
Transaction and other costs, net of tax (1) | 14,509 | 25,625 | |||||
Mark-to-market on derivative instruments | (542 | ) | (1,941 | ) | |||
Share of gain from mark-to-market on derivative instruments held by unconsolidated real estate ventures | 379 | (102 | ) | ||||
Loss on extinguishment of debt, net of noncontrolling interests | 2,159 | 6,571 | |||||
Distributions in excess of our net investment in unconsolidated real estate venture (2) | (7,374 | ) | (13,676 | ) | |||
Reduction of gain on bargain purchase | — | 7,606 | |||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 36,030 | |||||
Lease liability adjustments | (7,422 | ) | (9,965 | ) | |||
Amortization of management contracts intangible, net of tax | 1,287 | 5,148 | |||||
Core FFO Attributable to Operating Partnership Common Units | $ | 56,948 | $ | 239,734 | |||
Core FFO attributable to redeemable noncontrolling interests | (7,292 | ) | (33,536 | ) | |||
Core FFO attributable to common shareholders | $ | 49,656 | $ | 206,198 | |||
FFO per diluted common share | $ | 0.32 | $ | 1.33 | |||
Core FFO per diluted common share | $ | 0.41 | $ | 1.73 | |||
Weighted average diluted shares | 120,917 | 119,176 | |||||
![]() | Page 16 |
FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
in thousands, except per share data | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||
FAD | |||||||
Core FFO attributable to the operating partnership common units | $ | 56,948 | $ | 239,734 | |||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | (35,836 | ) | (72,113 | ) | |||
Straight-line and other rent adjustments (3) | (6,692 | ) | (10,351 | ) | |||
Share of straight-line rent from unconsolidated real estate ventures | 680 | 1,208 | |||||
Third-party lease liability assumption payments | (1,130 | ) | (3,133 | ) | |||
Share of third party lease liability assumption payments for unconsolidated real estate ventures | — | (50 | ) | ||||
Share-based compensation expense | 4,666 | 19,762 | |||||
Amortization of debt issuance costs | 1,140 | 4,660 | |||||
Share of amortization of debt issuance costs from unconsolidated real estate ventures | 67 | 268 | |||||
Non-real estate depreciation and amortization | 893 | 3,286 | |||||
FAD available to the Operating Partnership Common Units (A) (4) | $ | 20,736 | $ | 183,271 | |||
Distributions to common shareholders and unitholders (5) (B) | $ | 31,284 | $ | 125,100 | |||
FAD Payout Ratio (B÷A) (6) | 150.9 | % | 68.3 | % |
Capital Expenditures | |||||||
Maintenance and recurring capital expenditures | $ | 14,445 | $ | 28,230 | |||
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures | 978 | 2,821 | |||||
Second generation tenant improvements and leasing commissions | 19,211 | 37,980 | |||||
Share of second generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 1,202 | 3,082 | |||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | 35,836 | 72,113 | |||||
First generation tenant improvements and leasing commissions | 8,215 | 23,519 | |||||
Share of first generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 17 | 2,572 | |||||
Non-recurring capital expenditures | 15,375 | 25,401 | |||||
Share of non-recurring capital expenditures from unconsolidated joint ventures | 112 | 1,174 | |||||
Non-recurring capital expenditures | 23,719 | 52,666 | |||||
Total JBG SMITH Share of Capital Expenditures | $ | 59,555 | $ | 124,779 |
(1) | Includes fees and expenses incurred in connection with the Formation Transaction (including transition services provided by our former parent, integration costs, and severance costs), costs related to the pursuit of Amazon HQ2, and costs related to other completed, potential and pursued transactions. |
(2) | Related to our investment in the real estate venture that owns 1101 17th Street. In June 2018, the mortgage loan payable that was collateralized by 1101 17th Street was refinanced eliminating the principal guaranty provisions that had been included in the prior loan. At the time of refinancing, distributions and our share of the cumulative earnings of the venture exceeded our investment in the venture by $5.4 million, which resulted in a negative investment balance. After the elimination of the principal guaranty provisions in the prior mortgage loan, we recognized the $5.4 million negative investment balance as income within “Income from unconsolidated real estate ventures, net” in our statements of operations for the year ended December 31, 2018, which results in a zero investment balance in the real estate venture that owns 1101 17th Street in our balance sheet as of December 31, 2018. We have also suspended the equity method of accounting for this venture and recognized as income in the three months and year ended December 31, 2018, $7.4 million and $8.3 million related to cash distributions. |
(3) | Includes straight-line rent, above/below market lease amortization and lease incentive amortization. |
(4) | The fourth quarter decline in FAD available to the Operating Partnership Units was attributable to a significant increase in second generation tenant improvements and leasing commissions from the early renewal of several leases during the quarter and an increase in recurring capital expenditures, which is consistent with historical seasonality trends. |
(5) | In December 2018, our Board of Trustees declared regular quarterly dividends of $0.225 per common share and a special dividend of $0.10 per common share, both of which were 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. |
![]() | Page 17 |
THIRD-PARTY ASSET MANAGEMENT AND REAL ESTATE SERVICES BUSINESS (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands, at JBG SMITH share | Three Months Ended December 31, 2018 | |||||||||||
Source of Revenue | ||||||||||||
Third-Party Management | JBG SMITH JV Partner (1) | JBG Legacy Funds | Total | |||||||||
Service Revenue | ||||||||||||
Property management fees | $ | 2,790 | $ | 1,350 | $ | 1,467 | $ | 5,607 | ||||
Asset management fees | — | 548 | 2,999 | 3,547 | ||||||||
Leasing fees | 1,493 | 541 | 158 | 2,192 | ||||||||
Development fees | — | 514 | 747 | 1,261 | ||||||||
Construction management fees | 760 | 240 | 157 | 1,157 | ||||||||
Other service revenue | 545 | — | — | 545 | ||||||||
Total Revenue (2) | $ | 5,588 | $ | 3,193 | $ | 5,528 | $ | 14,309 | ||||
Pro Rata adjusted general and administrative expense: third-party real estate services (3) | (13,088 | ) | ||||||||||
Total Services Revenue Less Allocated General and Administrative Expenses (4) | $ | 1,221 |
(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 $11.3 million of reimbursement revenue and $0.8 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, 2018 (Unaudited) |
dollars in thousands | Three Months Ended December 31, 2018 | |||||||||||||||||
Per Statement of Operations (1) | Adjustments (2) | Pro Rata Adjusted | ||||||||||||||||
A | B | C | D | |||||||||||||||
General and Administrative Expenses | ||||||||||||||||||
Corporate and other | $ | 8,512 | $ | — | $ | — | $ | 842 | $ | (131 | ) | $ | 9,223 | |||||
Third-party real estate services | 25,274 | — | (11,344 | ) | (842 | ) | — | 13,088 | ||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | (9,118 | ) | — | — | — | — | |||||||||||
Total | $ | 42,904 | $ | (9,118 | ) | $ | (11,344 | ) | $ | — | $ | (131 | ) | $ | 22,311 |
(1) | Under the new lease accounting standards, we will no longer be able to capitalize internal leasing costs and instead may be required to expense these costs as incurred. Capitalized internal leasing costs were $2.2 million and $1.1 million for the three months ended December 31, 2018 and 2017, and $6.5 million and $2.9 million for the year ended December 31, 2018 and 2017. |
(2) | Adjustments: |
A - Removes share-based compensation related to the Formation Transaction and special equity awards. |
B - Removes $11.3 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." |
D - Reflects the adjustment to capitalize G&A expenses related to "Corporate and other" allocation in Adjustment C. |
![]() | Page 19 |
OPERATING ASSETS | DECEMBER 31, 2018 (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 2018 NOI | Annualized NOI | |||||||||||||||||
% Occupied | ||||||||||||||||||
Commercial (2) | ||||||||||||||||||
DC | 93.6 | % | $ | 17,454 | $ | 69,816 | $ | 969 | $ | — | $ | 70,785 | ||||||
VA | 84.0 | % | 46,114 | 184,145 | 21,037 | — | 205,182 | |||||||||||
MD | 82.1 | % | 1,894 | 7,576 | 507 | — | 8,083 | |||||||||||
Total / weighted average | 85.5 | % | $ | 65,462 | $ | 261,537 | $ | 22,513 | $ | — | $ | 284,050 | ||||||
Multifamily | ||||||||||||||||||
DC | 91.5 | % | $ | 6,099 | $ | 24,396 | $ | 344 | $ | 1,219 | $ | 25,959 | ||||||
VA | 94.6 | % | 12,342 | 49,368 | — | — | 49,368 | |||||||||||
MD | 95.7 | % | 1,637 | 6,548 | — | — | 6,548 | |||||||||||
Total / weighted average | 93.9 | % | $ | 20,078 | $ | 80,312 | $ | 344 | $ | 1,219 | $ | 81,875 | ||||||
Total / Weighted Average | 87.7 | % | $ | 85,540 | $ | 341,849 | $ | 22,857 | $ | 1,219 | $ | 365,925 |
(1) | Incremental multifamily revenue of a recently delivered multifamily asset 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, 2018, multiplied by 12. Excludes potential revenue from vacant retail space in recently delivered multifamily assets. |
(2) | Includes the Crystal City Marriott and 1700 M Street. The Crystal City Marriott and 1700 M Street are excluded from the percent occupied metric. |
![]() | Page 20 |
SUMMARY & SAME STORE NOI (NON-GAAP) | DECEMBER 31, 2018 (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) | 2018 | 2017 | % Change | |||||||||||||||||||
Same Store (2) | ||||||||||||||||||||||||||
DC | 14 | 2,575,355 SF/ 1,541 Units | 1,863,099 SF/ 857 Units | 95.5 | % | 94.1 | % | $ | 18,966 | $ | 19,509 | (2.8 | )% | |||||||||||||
VA | 34 | 9,111,544 SF/ 3,196 Units | 8,235,195 SF/ 2,885 Units | 90.3 | % | 86.0 | % | 54,301 | 59,258 | (8.4 | )% | |||||||||||||||
MD | 9 | 551,382 SF/ 1,287 Units | 500,009 SF/ 498 Units | 89.3 | % | 88.2 | % | 3,531 | 4,174 | (15.4 | )% | |||||||||||||||
Total / weighted average | 57 | 12,238,281 SF/ 6,024 Units | 10,598,303 SF/ 4,240 Units | 91.2 | % | 87.6 | % | $ | 76,798 | $ | 82,941 | (7.4 | )% | |||||||||||||
Non-Same Store | ||||||||||||||||||||||||||
DC | 2 | 34,000 SF/ 291 Units | 34,000 SF/ 291 Units | 83.1 | % | 80.4 | % | $ | 4,587 | $ | 5,882 | (22.0 | )% | |||||||||||||
VA | 3 | 662,186 SF | 662,186 SF | 93.7 | % | 93.2 | % | 4,155 | 774 | 436.8 | % | |||||||||||||||
MD | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total / weighted average | 5 | 696,186 SF/ 291 Units | 696,186 SF/ 291 Units | 91.0 | % | 89.8 | % | $ | 8,742 | $ | 6,656 | 31.3 | % | |||||||||||||
Total Operating Portfolio | ||||||||||||||||||||||||||
DC | 16 | 2,609,355 SF/ 1,832 Units | 1,897,099 SF/ 1,148 Units | 94.5 | % | 93.0 | % | $ | 23,553 | $ | 25,391 | (7.2 | )% | |||||||||||||
VA | 37 | 9,773,730 SF/ 3,196 Units | 8,897,381 SF/ 2,885 Units | 90.5 | % | 86.4 | % | 58,456 | 60,032 | (2.6 | )% | |||||||||||||||
MD | 9 | 551,382 SF/ 1,287 Units | 500,009 SF/ 498 Units | 89.3 | % | 88.2 | % | 3,531 | 4,174 | (15.4 | )% | |||||||||||||||
Operating Portfolio - Total / Weighted Average | 62 | 12,934,467 SF/ 6,315 Units | 11,294,489 SF/ 4,531 Units | 91.2 | % | 87.7 | % | $ | 85,540 | $ | 89,597 | (4.5 | )% |
(1) | The 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. JBG Assets are included in the same store pool. |
![]() | Page 21 |
SUMMARY & SAME STORE NOI (NON-GAAP) | DECEMBER 31, 2018 (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) | 2018 | 2017 | % Change | |||||||||||||||||
Same Store (2) | ||||||||||||||||||||||||
DC | 5 | 1,454,091 SF/ 283 Units | 1,359,263 SF/ 283 Units | 95.7 | % | 95.2 | % | $ | 54,567 | $ | 54,439 | 0.2 | % | |||||||||||
VA | 26 | 7,376,337 SF/ 2,151 Units | 7,376,337 SF/ 2,151 Units | 89.6 | % | 84.8 | % | 192,808 | 194,784 | (1.0 | )% | |||||||||||||
MD | 1 | 213,131 SF | 213,131 SF | 96.8 | % | 94.8 | % | 2,927 | 3,801 | (23.0 | )% | |||||||||||||
Total / weighted average | 32 | 9,043,559 SF/ 2,434 Units | 8,948,731 SF/ 2,434 Units | 90.7 | % | 86.6 | % | $ | 250,302 | $ | 253,024 | (1.1 | )% | |||||||||||
Non-Same Store | ||||||||||||||||||||||||
DC | 11 | 1,155,264 SF/ 1,549 Units | 537,836 SF/ 865 Units | 93.1 | % | 89.9 | % | $ | 46,451 | $ | 42,680 | 8.8 | % | |||||||||||
VA | 11 | 2,397,393 SF/ 1,045 Units | 1,521,044 SF/ 734 Units | 94.0 | % | 93.2 | % | 57,334 | 40,448 | 41.7 | % | |||||||||||||
MD | 8 | 338,251 SF/ 1,287 Units | 286,878 SF/ 498 Units | 87.0 | % | 86.1 | % | 12,016 | 13,214 | (9.1 | )% | |||||||||||||
Total / weighted average | 30 | 3,890,908 SF/ 3,881 Units | 2,345,758 SF/ 2,097 Units | 92.6 | % | 91.0 | % | $ | 115,801 | $ | 96,342 | 20.2 | % | |||||||||||
Total Operating Portfolio | ||||||||||||||||||||||||
DC | 16 | 2,609,355 SF/ 1,832 Units | 1,897,099 SF/ 1,148 Units | 94.5 | % | 93.0 | % | $ | 101,018 | $ | 97,119 | 4.0 | % | |||||||||||
VA | 37 | 9,773,730 SF/ 3,196 Units | 8,897,381 SF/ 2,885 Units | 90.5 | % | 86.4 | % | 250,142 | 235,232 | 6.3 | % | |||||||||||||
MD | 9 | 551,382 SF/ 1,287 Units | 500,009 SF/ 498 Units | 89.3 | % | 88.2 | % | 14,943 | 17,015 | (12.2 | )% | |||||||||||||
Operating Portfolio - Total / Weighted Average | 62 | 12,934,467 SF/ 6,315 Units | 11,294,489 SF/ 4,531 Units | 91.2 | % | 87.7 | % | $ | 366,103 | $ | 349,366 | 4.8 | % |
(1) | The 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. No JBG Assets are included in the same store pool. |
![]() | Page 22 |
SUMMARY NOI (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended December 31, 2018 at JBG SMITH Share | |||||||||||||||
Consolidated (6) | Unconsolidated (7) | Commercial (6) (7) | Multifamily | Total | ||||||||||||
Number of operating assets | 46 | 16 | 46 | 16 | 62 | |||||||||||
Property rentals (1) | $ | 108,992 | $ | 11,980 | $ | 92,972 | $ | 28,000 | $ | 120,972 | ||||||
Tenant expense reimbursement | 13,261 | 2,270 | 13,600 | 1,931 | 15,531 | |||||||||||
Other revenue | 9,005 | 890 | 8,189 | 1,706 | 9,895 | |||||||||||
Total revenue | 131,258 | 15,140 | 114,761 | 31,637 | 146,398 | |||||||||||
Operating expenses | (51,775 | ) | (6,275 | ) | (46,497 | ) | (11,553 | ) | (58,050 | ) | ||||||
Ground rent expense | (2,802 | ) | (6 | ) | (2,802 | ) | (6 | ) | (2,808 | ) | ||||||
Total expenses | (54,577 | ) | (6,281 | ) | (49,299 | ) | (11,559 | ) | (60,858 | ) | ||||||
NOI (1) | $ | 76,681 | $ | 8,859 | $ | 65,462 | $ | 20,078 | $ | 85,540 | ||||||
Annualized NOI | $ | 306,413 | $ | 35,436 | $ | 261,537 | $ | 80,312 | $ | 341,849 | ||||||
Additional Information | ||||||||||||||||
Free rent (at 100% share) | $ | 6,863 | $ | 829 | $ | 7,234 | $ | 458 | $ | 7,692 | ||||||
Free rent (at JBG SMITH share) | $ | 6,863 | $ | 27 | $ | 6,704 | $ | 186 | $ | 6,890 | ||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 27,452 | $ | 108 | $ | 26,816 | $ | 744 | $ | 27,560 | ||||||
Payments associated with assumed lease liabilities (at 100% share) | $ | 1,130 | $ | — | $ | 1,130 | $ | — | $ | 1,130 | ||||||
Payments associated with assumed lease liabilities (at JBG SMITH share) | $ | 1,130 | $ | — | $ | 1,130 | $ | — | $ | 1,130 | ||||||
Annualized payments associated with assumed lease liabilities (at JBG SMITH share)(3) | $ | 4,520 | $ | — | $ | 4,520 | $ | — | $ | 4,520 | ||||||
% occupied (at JBG SMITH share) (4) | 87.6 | % | 89.1 | % | 85.5 | % | 93.9 | % | 87.7 | % | ||||||
Annualized base rent of signed leases, not commenced (at 100% share) (5) | $ | 22,005 | $ | 2,424 | $ | 24,085 | $ | 344 | $ | 24,429 | ||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (5) | $ | 22,005 | $ | 852 | $ | 22,513 | $ | 344 | $ | 22,857 |
(1) | Property rentals excludes straight-line rent adjustments, and other GAAP adjustments, and include payments associated with assumed lease liabilities. NOI excludes approximately $4.6 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, 2018 multiplied by four. |
(3) | Represents JBG SMITH's share of payments associated with assumed lease liabilities for the three months ended December 31, 2018 multiplied by four. |
(4) | The 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, 2018. |
(6) | Includes $0.7 million of annualized NOI from 1233 20th Street, which was sold in October 2018. Includes $6.9 million of annualized NOI from Commerce Executive, which was sold in February 2019. |
(7) | Includes $14.0 million of annualized NOI from our 55% interest in the joint venture that owned The Warner, which was sold in December 2018. |
![]() | Page 23 |
SUMMARY NOI - COMMERCIAL (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended December 31, 2018 at JBG SMITH Share | ||||||||||||||||||
Consolidated (6) | Unconsolidated (7) | DC (6) (7) | VA (6) | MD | Total | ||||||||||||||
Number of operating assets | 36 | 10 | 10 | 32 | 4 | 46 | |||||||||||||
Property rentals (1) | $ | 83,186 | $ | 9,786 | $ | 23,866 | $ | 65,813 | $ | 3,293 | $ | 92,972 | |||||||
Tenant expense reimbursement | 11,417 | 2,183 | 4,502 | 8,830 | 268 | 13,600 | |||||||||||||
Other revenue | 7,435 | 754 | 1,434 | 6,230 | 525 | 8,189 | |||||||||||||
Total revenue | 102,038 | 12,723 | 29,802 | 80,873 | 4,086 | 114,761 | |||||||||||||
Operating expenses | (41,025 | ) | (5,472 | ) | (12,148 | ) | (32,370 | ) | (1,979 | ) | (46,497 | ) | |||||||
Ground rent expense | (2,802 | ) | — | (200 | ) | (2,389 | ) | (213 | ) | (2,802 | ) | ||||||||
Total expenses | (43,827 | ) | (5,472 | ) | (12,348 | ) | (34,759 | ) | (2,192 | ) | (49,299 | ) | |||||||
NOI (1) | $ | 58,211 | $ | 7,251 | $ | 17,454 | $ | 46,114 | $ | 1,894 | $ | 65,462 | |||||||
Annualized NOI | $ | 232,533 | $ | 29,004 | $ | 69,816 | $ | 184,145 | $ | 7,576 | $ | 261,537 | |||||||
Additional Information | |||||||||||||||||||
Free rent (at 100% share) | $ | 6,711 | $ | 523 | $ | 980 | $ | 5,995 | $ | 259 | $ | 7,234 | |||||||
Free rent (at JBG SMITH share) | $ | 6,711 | $ | (7 | ) | $ | 688 | $ | 5,778 | $ | 238 | $ | 6,704 | ||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 26,844 | $ | (28 | ) | $ | 2,752 | $ | 23,112 | $ | 952 | $ | 26,816 | ||||||
Payments associated with assumed lease liabilities (at 100% share) | $ | 1,130 | $ | — | $ | — | $ | 1,130 | $ | — | $ | 1,130 | |||||||
Payments associated with assumed lease liabilities (at JBG SMITH share) | $ | 1,130 | $ | — | $ | — | $ | 1,130 | $ | — | $ | 1,130 | |||||||
Annualized payments associated with assumed lease liabilities (at JBG SMITH share) (3) | $ | 4,520 | $ | — | $ | — | $ | 4,520 | $ | — | $ | 4,520 | |||||||
% occupied (at JBG SMITH share) (4) | 85.4 | % | 87.0 | % | 93.6 | % | 84.0 | % | 82.1 | % | 85.5 | % | |||||||
Annualized base rent of signed leases, not commenced (at 100% share) (5) | $ | 21,661 | $ | 2,424 | $ | 2,402 | $ | 21,176 | $ | 507 | $ | 24,085 | |||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (5) | $ | 21,661 | $ | 852 | $ | 969 | $ | 21,037 | $ | 507 | $ | 22,513 |
(1) | Property rentals excludes straight-line rent adjustments, and other GAAP adjustments, and include payments associated with assumed lease liabilities. NOI excludes approximately $3.6 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, 2018 multiplied by four. |
(3) | Represents JBG SMITH's share of payments associated with assumed lease liabilities for the three months ended December 31, 2018 multiplied by four. |
(4) | The 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, 2018. |
(6) | Includes $0.7 million of annualized NOI from 1233 20th Street, which was sold in October 2018. Includes $6.9 million of annualized NOI from Commerce Executive, which was sold in February 2019. |
(7) | Includes $14.0 million of annualized NOI from our 55% interest in the joint venture that owned The Warner, which was sold in December 2018. |
![]() | Page 24 |
SUMMARY NOI - MULTIFAMILY (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands | NOI for the Three Months Ended December 31, 2018 at JBG SMITH Share | ||||||||||||||||||
Consolidated | Unconsolidated | DC | VA | MD | Total | ||||||||||||||
Number of operating assets | 10 | 6 | 6 | 5 | 5 | 16 | |||||||||||||
Property rentals (1) | $ | 25,806 | $ | 2,194 | $ | 8,553 | $ | 17,033 | $ | 2,414 | $ | 28,000 | |||||||
Tenant expense reimbursement | 1,844 | 87 | 660 | 1,213 | 58 | 1,931 | |||||||||||||
Other revenue | 1,570 | 136 | 459 | 1,099 | 148 | 1,706 | |||||||||||||
Total revenue | 29,220 | 2,417 | 9,672 | 19,345 | 2,620 | 31,637 | |||||||||||||
Operating expenses | (10,750 | ) | (803 | ) | (3,573 | ) | (7,003 | ) | (977 | ) | (11,553 | ) | |||||||
Ground rent expense | — | (6 | ) | — | — | (6 | ) | (6 | ) | ||||||||||
Total expenses | (10,750 | ) | (809 | ) | (3,573 | ) | (7,003 | ) | (983 | ) | (11,559 | ) | |||||||
NOI (1) | $ | 18,470 | $ | 1,608 | $ | 6,099 | $ | 12,342 | $ | 1,637 | $ | 20,078 | |||||||
Annualized NOI | $ | 73,880 | $ | 6,432 | $ | 24,396 | $ | 49,368 | $ | 6,548 | $ | 80,312 | |||||||
Additional Information | |||||||||||||||||||
Free rent (at 100% share) | $ | 152 | $ | 306 | $ | 199 | $ | 88 | $ | 171 | $ | 458 | |||||||
Free rent (at JBG SMITH share) | $ | 152 | $ | 34 | $ | 109 | $ | 67 | $ | 10 | $ | 186 | |||||||
Annualized free rent (at JBG SMITH share) (2) | $ | 608 | $ | 136 | $ | 436 | $ | 268 | $ | 40 | $ | 744 | |||||||
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) | 94.0 | % | 93.5 | % | 91.5 | % | 94.6 | % | 95.7 | % | 93.9 | % | |||||||
Annualized base rent of signed leases, not commenced (at 100% share) (4) | $ | 344 | — | $ | 344 | — | — | $ | 344 | ||||||||||
Annualized base rent of signed leases, not commenced (at JBG SMITH share) (4) | $ | 344 | — | $ | 344 | — | — | $ | 344 |
(1) | Property rentals excludes straight-line rent adjustments, and other GAAP adjustments, and include payments associated with assumed lease liabilities. NOI excludes approximately $1.0 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, 2018 multiplied by four. |
(3) | Represents JBG SMITH's share of payments associated with assumed lease liabilities for the three months ended December 31, 2018 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, 2018. |
![]() | Page 25 |
NOI RECONCILIATIONS (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | 710 | $ | (16,418 | ) | $ | 39,924 | $ | (71,753 | ) | |||||
Add: | |||||||||||||||
Depreciation and amortization expense | 67,556 | 51,933 | 211,436 | 161,659 | |||||||||||
General and administrative expense: | |||||||||||||||
Corporate and other | 8,512 | 7,437 | 33,728 | 39,350 | |||||||||||
Third-party real estate services | 25,274 | 21,557 | 89,826 | 51,919 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 14,806 | 36,030 | 29,251 | |||||||||||
Transaction and other costs | 15,572 | 12,566 | 27,706 | 127,739 | |||||||||||
Interest expense | 18,184 | 14,328 | 74,447 | 58,141 | |||||||||||
Loss on extinguishment of debt | 617 | 12 | 5,153 | 701 | |||||||||||
Reduction of gain (gain) on bargain purchase | — | 3,395 | 7,606 | (24,376 | ) | ||||||||||
Income tax expense (benefit) | 698 | (9,595 | ) | (738 | ) | (9,912 | ) | ||||||||
Net (income) loss attributable to redeemable noncontrolling interests | 178 | (2,331 | ) | 6,710 | (7,328 | ) | |||||||||
Less: | |||||||||||||||
Third-party real estate services, including reimbursements | 26,421 | 24,355 | 98,699 | 63,236 | |||||||||||
Other income | 1,454 | 1,466 | 6,358 | 5,167 | |||||||||||
Income (loss) from unconsolidated real estate ventures, net | 23,991 | (2,778 | ) | 39,409 | (4,143 | ) | |||||||||
Interest and other income, net | 9,991 | 422 | 15,168 | 1,788 | |||||||||||
Gain on sale of real estate | 6,394 | — | 52,183 | — | |||||||||||
Net (income) loss attributable to noncontrolling interests | (106 | ) | 3 | 21 | 3 | ||||||||||
Consolidated NOI | 78,274 | 74,222 | 319,990 | 289,340 | |||||||||||
NOI attributable to consolidated JBG Assets (1) | — | — | — | 24,936 | |||||||||||
Proportionate NOI attributable to unconsolidated JBG Assets (1) | — | — | — | 8,688 | |||||||||||
Proportionate NOI attributable to unconsolidated real estate ventures | 8,847 | 8,646 | 36,824 | 21,530 | |||||||||||
Non-cash rent adjustments (2) | (6,691 | ) | 887 | (10,349 | ) | (6,715 | ) | ||||||||
Other adjustments (3) | 5,110 | 5,842 | 19,638 | 11,587 | |||||||||||
Total adjustments | 7,266 | 15,375 | 46,113 | 60,026 | |||||||||||
NOI | $ | 85,540 | $ | 89,597 | $ | 366,103 | $ | 349,366 | |||||||
Non-same store NOI (4) | 8,742 | 6,656 | 115,801 | 96,342 | |||||||||||
Same store NOI (5) | $ | 76,798 | $ | 82,941 | $ | 250,302 | $ | 253,024 | |||||||
Growth in same store NOI | (7.4 | )% | (1.1 | )% | |||||||||||
Number of properties in same store pool | 57 | 32 |
(1) | Includes financial information for the JBG Assets as if the July 18, 2017 acquisition of the JBG Assets had been completed as of the beginning of the period presented. |
(2) | Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization. |
(3) | Adjustment to include other income and payments associated with assumed lease liabilities related to operating properties, and exclude incidental income generated by development assets and commercial lease termination revenue. Includes property management fees of $4.1 million and $4.2 million for the three months ended December 31, 2018 and 2017 and $16.6 million and $7.8 million for the years ended December 31, 2018 and 2017. |
(4) | Includes the results for properties that were not owned, operated and 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. |
(5) | 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. |
![]() | Page 26 |
LEASING ACTIVITY - OFFICE | DECEMBER 31, 2018 (Unaudited) |
square feet in thousands | Three Months Ended December 31, 2018 | Year Ended December 31, 2018 | |||||
Square feet leased: | |||||||
At 100% share | 828 | 1,988 | |||||
At JBG SMITH share | 741 | 1,759 | |||||
Initial rent (1) | $ | 45.08 | $ | 46.64 | |||
Straight-line rent (2) | $ | 48.93 | $ | 48.39 | |||
Weighted average lease term (years) | 10.2 | 8.7 | |||||
Weighted average free rent period (months) | 10.0 | 8.0 | |||||
Second generation space: | 380 | 656 | |||||
Square feet | 361 | 1,103 | |||||
Cash basis: | |||||||
Initial rent (1) | $ | 40.14 | $ | 44.77 | |||
Prior escalated rent | $ | 43.31 | $ | 47.95 | |||
% change | (7.3 | )% | (6.6 | )% | |||
GAAP basis: | |||||||
Straight-line rent (2) | $ | 42.95 | $ | 45.24 | |||
Prior straight-line rent | $ | 41.60 | $ | 44.71 | |||
% change | 3.2 | % | 1.2 | % | |||
Tenant improvements: | |||||||
Per square foot | $ | 66.70 | $ | 53.83 | |||
Per square foot per annum | $ | 6.54 | $ | 6.18 | |||
% of initial rent | 14.5 | % | 13.3 | % | |||
Leasing commissions: | |||||||
Per square foot | $ | 19.70 | $ | 14.81 | |||
Per square foot per annum | $ | 1.93 | $ | 1.70 | |||
% of initial rent | 4.3 | % | 3.6 | % |
(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 deferred 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, 2018 (Unaudited) |
square feet in thousands, dollars per square feet, at JBG SMITH share | Trailing Five Quarter Average | Three Months Ended | |||||||||||||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | |||||||||||||||||||
Square feet | 463 | 741 | 378 | 319 | 322 | 558 | |||||||||||||||||
Weighted average lease term (years) | 8.2 | 10.2 | 7.0 | 8.6 | 7.3 | 7.9 | |||||||||||||||||
Initial rent (1) | $ | 46.88 | $ | 45.08 | $ | 42.89 | $ | 54.01 | $ | 47.35 | $ | 45.07 | |||||||||||
Base rent per annum (2) | $ | 56.06 | $ | 57.48 | $ | 44.43 | $ | 67.89 | $ | 54.38 | $ | 56.14 | |||||||||||
Tenant improvements per annum | (5.99 | ) | (6.54 | ) | (3.77 | ) | (7.46 | ) | (6.27 | ) | (5.91 | ) | |||||||||||
Leasing commissions per annum | (1.62 | ) | (1.93 | ) | (0.61 | ) | (2.03 | ) | (1.80 | ) | (1.72 | ) | |||||||||||
Free rent per annum | (4.34 | ) | (3.69 | ) | (3.55 | ) | (4.05 | ) | (5.89 | ) | (4.52 | ) | |||||||||||
Net Effective Rent | $ | 44.12 | $ | 45.32 | $ | 36.50 | $ | 54.35 | $ | 40.42 | $ | 43.99 | |||||||||||
DC | |||||||||||||||||||||||
Square feet | 85 | 72 | 88 | 175 | 50 | 39 | |||||||||||||||||
Initial rent (1) | $ | 58.38 | $ | 76.45 | $ | 49.73 | $ | 66.29 | $ | 53.92 | $ | 45.53 | |||||||||||
Net effective rent | $ | 52.21 | $ | 70.85 | $ | 42.34 | $ | 64.65 | $ | 45.76 | $ | 37.47 | |||||||||||
VA | |||||||||||||||||||||||
Square feet | 337 | 658 | 282 | 115 | 250 | 380 | |||||||||||||||||
Initial rent (1) | $ | 41.09 | $ | 41.83 | $ | 41.08 | $ | 38.20 | $ | 44.08 | $ | 40.28 | |||||||||||
Net effective rent | $ | 35.66 | $ | 41.85 | $ | 33.86 | $ | 30.61 | $ | 35.28 | $ | 36.71 | |||||||||||
MD | |||||||||||||||||||||||
Square feet | 42 | 10 | 8 | 28 | 22 | 139 | |||||||||||||||||
Initial rent (1) | $ | 46.80 | $ | 32.24 | $ | 31.75 | $ | 42.70 | $ | 69.26 | $ | 58.03 | |||||||||||
Net effective rent | $ | 40.83 | $ | 27.21 | $ | 20.30 | $ | 37.38 | $ | 64.96 | $ | 54.29 |
(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, 2018 (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 | 58 | 268,723 | 2.8 | % | $ | 10,859 | 2.6 | % | $ | 40.41 | $ | 40.41 | ||||||||||||
2019 | 136 | 779,695 | 8.0 | % | 33,120 | 7.8 | % | 42.48 | 42.79 | |||||||||||||||
2020 | 141 | 1,136,248 | 11.7 | % | 48,307 | 11.4 | % | 42.51 | 43.64 | |||||||||||||||
2021 | 117 | 914,267 | 9.4 | % | 42,240 | 9.9 | % | 46.20 | 48.78 | |||||||||||||||
2022 | 97 | 1,334,682 | 13.7 | % | 58,200 | 13.7 | % | 43.61 | 45.20 | |||||||||||||||
2023 | 89 | 561,432 | 5.8 | % | 23,483 | 5.5 | % | 41.83 | 45.91 | |||||||||||||||
2024 | 81 | 933,791 | 9.6 | % | 43,036 | 10.1 | % | 46.09 | 50.73 | |||||||||||||||
2025 | 47 | 386,267 | 4.0 | % | 14,634 | 3.4 | % | 37.89 | 42.58 | |||||||||||||||
2026 | 56 | 320,468 | 3.3 | % | 13,649 | 3.2 | % | 42.59 | 49.99 | |||||||||||||||
2027 | 44 | 427,730 | 4.4 | % | 18,278 | 4.3 | % | 42.73 | 51.25 | |||||||||||||||
Thereafter | 107 | 2,651,778 | 27.3 | % | 118,979 | 28.1 | % | 44.87 | 57.53 | |||||||||||||||
Total / Weighted Average | 973 | 9,715,081 | 100.0 | % | $ | 424,785 | 100.0 | % | $ | 43.72 | $ | 49.29 |
(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, 2018, or management’s estimate thereof, by 2.75% annually through the lease expiration year. |
![]() | Page 29 |
SIGNED BUT NOT YET COMMENCED LEASES | DECEMBER 31, 2018 (Unaudited) |
in thousands | At JBG SMITH Share | |||||||||||||||||||||||||||||
Estimated Rent (1) for the Quarter Ending | Total Annualized Estimated Rent Thereafter (3) | |||||||||||||||||||||||||||||
Assets | C/U (2) | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | |||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||
Operating | C | $ | 619 | $ | 2,722 | $ | 3,861 | $ | 4,414 | $ | 4,414 | $ | 4,747 | $ | 21,661 | |||||||||||||||
Operating | U | 38 | 213 | 213 | 213 | 213 | 213 | 852 | ||||||||||||||||||||||
Under construction (4) | C | — | — | 314 | 2,961 | 3,929 | 3,929 | 15,714 | ||||||||||||||||||||||
Under construction | U | 309 | 926 | 926 | 1,245 | 2,101 | 2,535 | 12,049 | ||||||||||||||||||||||
Total | $ | 966 | $ | 3,861 | $ | 5,314 | $ | 8,833 | $ | 10,657 | $ | 11,424 | $ | 50,276 | ||||||||||||||||
Multifamily | ||||||||||||||||||||||||||||||
Operating | C | $ | — | $ | 86 | $ | 86 | $ | 86 | $ | 86 | $ | 86 | $ | 344 | |||||||||||||||
Under construction | C | 9 | 74 | 202 | 265 | 556 | 702 | 2,806 | ||||||||||||||||||||||
Under construction | U | — | — | — | — | — | 5 | 385 | ||||||||||||||||||||||
Total | $ | 9 | $ | 160 | $ | 288 | $ | 351 | $ | 642 | $ | 793 | $ | 3,535 | ||||||||||||||||
Total | $ | 975 | $ | 4,021 | $ | 5,602 | $ | 9,184 | $ | 11,299 | $ | 12,217 | $ | 53,811 |
(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) | Commercial under construction consolidated includes contractual revenue of $4.8 million annually from JBG SMITH's lease at 4747 Bethesda Avenue, estimated to commence in Q4 2019. |
![]() | Page 30 |
TENANT CONCENTRATION | DECEMBER 31, 2018 (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) | 66 | 2,487,060 | 25.6 | % | $ | 98,745 | 23.2 | % | |||||||||
2 | Gartner, Inc. | 1 | 348,847 | 3.6 | % | 21,629 | 5.1 | % | ||||||||||
3 | Family Health International | 3 | 295,977 | 3.0 | % | 14,677 | 3.5 | % | ||||||||||
4 | Lockheed Martin Corporation | 3 | 274,361 | 2.8 | % | 13,330 | 3.1 | % | ||||||||||
5 | WeWork (1) | 2 | 205,565 | 2.1 | % | 10,890 | 2.6 | % | ||||||||||
6 | Arlington County | 3 | 237,001 | 2.4 | % | 9,987 | 2.4 | % | ||||||||||
7 | Accenture LLP | 2 | 130,716 | 1.3 | % | 7,371 | 1.7 | % | ||||||||||
8 | Greenberg Traurig LLP | 1 | 116,067 | 1.2 | % | 7,136 | 1.7 | % | ||||||||||
9 | Public Broadcasting Service | 1 | 140,885 | 1.5 | % | 5,811 | 1.4 | % | ||||||||||
10 | Evolent Health LLC | 1 | 90,905 | 0.9 | % | 4,814 | 1.1 | % | ||||||||||
11 | National Consumer Cooperative | 1 | 86,814 | 0.9 | % | 4,059 | 1.0 | % | ||||||||||
12 | RTKL Associates Inc | 2 | 63,403 | 0.7 | % | 4,056 | 1.0 | % | ||||||||||
13 | Conservation International Foundation | 1 | 86,981 | 0.9 | % | 4,025 | 0.9 | % | ||||||||||
14 | Chemonics International | 2 | 98,932 | 1.0 | % | 3,957 | 0.9 | % | ||||||||||
15 | Booz Allen Hamilton Inc | 3 | 94,158 | 1.0 | % | 3,835 | 0.9 | % | ||||||||||
16 | U.S. Green Building Council | 1 | 54,675 | 0.6 | % | 3,799 | 0.9 | % | ||||||||||
17 | The International Justice Mission | 1 | 74,833 | 0.8 | % | 3,785 | 0.9 | % | ||||||||||
18 | Cushman & Wakefield U.S. Inc | 1 | 58,641 | 0.6 | % | 3,703 | 0.9 | % | ||||||||||
19 | DRS Tech Inc dba Finmeccanica | 2 | 82,852 | 0.9 | % | 3,695 | 0.9 | % | ||||||||||
20 | American Diabetes Association | 1 | 80,998 | 0.8 | % | 3,353 | 0.8 | % | ||||||||||
Other | 875 | 4,605,410 | 47.4 | % | 192,128 | 45.1 | % | |||||||||||
Total | 973 | 9,715,081 | 100.0 | % | $ | 424,785 | 100.0 | % |
![]() | Page 31 |
INDUSTRY DIVERSITY | DECEMBER 31, 2018 (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 | 82 | 2,791,746 | 28.7 | % | $ | 111,879 | 26.3 | % | |||||||||
2 | Government Contractors | 107 | 1,708,245 | 17.6 | % | 76,324 | 18.0 | % | ||||||||||
3 | Business Services | 136 | 1,430,937 | 14.7 | % | 69,060 | 16.3 | % | ||||||||||
4 | Member Organizations | 79 | 945,105 | 9.7 | % | 44,752 | 10.5 | % | ||||||||||
5 | Real Estate | 47 | 447,919 | 4.6 | % | 21,802 | 5.1 | % | ||||||||||
6 | Health Services | 48 | 364,916 | 3.8 | % | 14,688 | 3.5 | % | ||||||||||
7 | Legal Services | 35 | 275,302 | 2.8 | % | 14,487 | 3.4 | % | ||||||||||
8 | Food and Beverage | 118 | 256,661 | 2.6 | % | 14,033 | 3.3 | % | ||||||||||
9 | Communications | 15 | 228,171 | 2.3 | % | 9,278 | 2.2 | % | ||||||||||
10 | Educational Services | 21 | 184,920 | 1.9 | % | 7,631 | 1.8 | % | ||||||||||
Other | 285 | 1,081,159 | 11.3 | % | 40,851 | 9.6 | % | |||||||||||
Total | 973 | 9,715,081 | 100.0 | % | $ | 424,785 | 100.0 | % |
![]() | Page 32 |
PORTFOLIO SUMMARY | DECEMBER 31, 2018 (Unaudited) |
Number of Assets | Rentable Square Feet | Number of Units (1) | Estimated Potential Development Density (2) | |||||||||
Wholly Owned | ||||||||||||
Operating | 46 | 14,249,481 | 4,207 | — | ||||||||
Under construction | 5 | 1,285,516 | 721 | — | ||||||||
Future development | 25 | — | — | 18,853,500 | ||||||||
Total | 76 | 15,534,997 | 4,928 | 18,853,500 | ||||||||
Real Estate Ventures | ||||||||||||
Operating | 16 | 4,244,293 | 2,108 | — | ||||||||
Under construction | 4 | 1,181,735 | 755 | — | ||||||||
Future development | 16 | — | — | 4,217,500 | ||||||||
Total | 36 | 5,426,028 | 2,863 | 4,217,500 | ||||||||
Total Portfolio | 112 | 20,961,025 | 7,791 | 23,071,000 | ||||||||
Total Portfolio (at JBG SMITH Share) | 112 | 17,236,652 | 5,829 | 19,628,300 |
(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, 2018 (Unaudited) |
Commercial Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2017-2018 / YTD 2017-2018 | 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 | 659,965 | 568,890 | 91,075 | 98.2 | % | 98.0 | % | 99.6 | % | $ | 31,895 | $ | 48.55 | $ | 53.19 | ||||||
2101 L Street | CBD | 100.0 | % | C | Y / Y | 1975 / 2007 | 378,660 | 347,340 | 31,320 | 98.4 | % | 99.0 | % | 92.6 | % | 23,592 | 63.94 | 55.60 | |||||||||
1730 M Street (5) | CBD | 100.0 | % | C | Y / Y | 1964 / 1998 | 204,736 | 196,718 | 8,018 | 88.9 | % | 87.0 | % | 100.0 | % | 8,667 | 48.34 | 49.27 | |||||||||
1600 K Street | CBD | 100.0 | % | C | Y / N | 1950 / 2000 | 82,011 | 69,620 | 12,391 | 98.6 | % | 98.3 | % | 100.0 | % | 4,316 | 51.19 | 65.58 | |||||||||
1700 M Street (6) | CBD | 100.0 | % | C | N / N | N/A | 34,000 | — | — | — | — | — | — | — | — | ||||||||||||
L’Enfant Plaza Office-East (5) | Southwest | 49.0 | % | U | Y / N | 1972 / 2012 | 397,057 | 397,057 | — | 90.8 | % | 90.8 | % | — | 16,782 | 46.53 | — | ||||||||||
L’Enfant Plaza Office-North | Southwest | 49.0 | % | U | Y / N | 1969 / 2014 | 299,476 | 280,002 | 19,474 | 95.1 | % | 84.2 | % | 85.9 | % | 11,524 | 47.71 | 16.56 | |||||||||
L’Enfant Plaza Retail (5) | Southwest | 49.0 | % | U | Y / N | 1968 / 2014 | 119,361 | 16,596 | 102,765 | 82.6 | % | 100.0 | % | 79.8 | % | 4,909 | 36.36 | 52.53 | |||||||||
The Foundry | Georgetown | 9.9 | % | U | Y / N | 1973 / 2017 | 223,359 | 216,505 | 6,854 | 83.2 | % | 76.4 | % | 100.0 | % | 7,929 | 46.26 | 40.88 | |||||||||
1101 17th Street | CBD | 55.0 | % | U | Y / Y | 1964 / 1999 | 210,730 | 200,972 | 9,758 | 82.7 | % | 82.7 | % | 82.7 | % | 9,005 | 50.90 | 67.76 | |||||||||
VA | |||||||||||||||||||||||||||
Courthouse Plaza 1 and 2 (5) | Clarendon/Courthouse | 100.0 | % | C | Y / Y | 1989 / 2013 | 633,256 | 576,063 | 57,193 | 85.1 | % | 83.6 | % | 100.0 | % | $ | 23,190 | $ | 44.05 | $ | 34.65 | ||||||
2121 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1985 / 2006 | 505,754 | 505,349 | 405 | 95.3 | % | 95.3 | % | — | 23,408 | 48.58 | — | ||||||||||
2345 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1988 / N/A | 502,526 | 498,320 | 4,206 | 77.7 | % | 77.5 | % | 100.0 | % | 17,895 | 45.97 | 31.96 | |||||||||
2231 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1987 / 2009 | 467,040 | 416,080 | 50,960 | 87.3 | % | 83.9 | % | 100.0 | % | 17,215 | 43.98 | 36.46 | |||||||||
1550 Crystal Drive (7) | National Landing | 100.0 | % | C | Y / Y | 1980 / 2001 | 451,037 | 451,037 | — | 96.0 | % | 81.4 | % | — | 14,592 | 39.73 | — | ||||||||||
RTC-West (7) | Reston | 100.0 | % | C | Y / N | 1988 / 2014 | 435,998 | 435,998 | — | 88.8 | % | 88.8 | % | — | 14,831 | 38.33 | — | ||||||||||
RTC-West Retail | Reston | 100.0 | % | C | N / N | 2017 / N/A | 40,025 | — | 40,025 | 91.9 | % | — | 91.9 | % | 2,463 | — | 66.94 | ||||||||||
2011 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1984 / 2006 | 440,046 | 433,284 | 6,762 | 90.9 | % | 82.7 | % | 49.7 | % | 16,381 | 45.19 | 57.44 | |||||||||
2451 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1990 / N/A | 398,329 | 386,639 | 11,690 | 72.9 | % | 72.1 | % | 100.0 | % | 12,109 | 41.97 | 35.42 | |||||||||
Commerce Executive (7) (8) | Reston | 100.0 | % | C | Y / Y | 1987 / 2015 | 388,562 | 372,302 | 16,260 | 89.4 | % | 84.3 | % | 95.2 | % | 11,811 | 36.24 | 28.30 | |||||||||
1235 S. Clark Street | National Landing | 100.0 | % | C | Y / Y | 1981 / 2007 | 384,032 | 335,686 | 48,346 | 85.3 | % | 83.2 | % | 100.0 | % | 12,602 | 41.69 | 19.80 | |||||||||
241 18th Street S. | National Landing | 100.0 | % | C | Y / Y | 1977 / 2013 | 357,685 | 331,195 | 26,490 | 79.0 | % | 72.4 | % | 91.5 | % | 9,903 | 38.45 | 28.02 | |||||||||
251 18th Street S. | National Landing | 100.0 | % | C | Y / Y | 1975 / 2013 | 342,155 | 292,984 | 49,171 | 99.4 | % | 100.0 | % | 96.2 | % | 13,901 | 41.29 | 38.16 | |||||||||
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 | % | 10,862 | 32.31 | 32.83 | |||||||||
201 12th Street S. | National Landing | 100.0 | % | C | Y / Y | 1987 / N/A | 329,903 | 318,778 | 11,125 | 90.5 | % | 87.8 | % | 100.0 | % | 10,503 | 35.86 | 41.37 | |||||||||
800 North Glebe Road | Ballston | 100.0 | % | C | Y / N | 2012 / N/A | 303,644 | 277,397 | 26,247 | 100.0 | % | 100.0 | % | 100.0 | % | 15,771 | 52.43 | 46.79 | |||||||||
2200 Crystal Drive | National Landing | 100.0 | % | C | Y / Y | 1968 / 2006 | 282,920 | 282,920 | — | 70.6 | % | 44.8 | % | — | 4,838 | 38.21 | — | ||||||||||
1901 South Bell Street | National Landing | 100.0 | % | C | Y / Y | 1968 / 2008 | 277,003 | 275,079 | 1,924 | 100.0 | % | 100.0 | % | 100.0 | % | 11,009 | 40.00 | 2.26 | |||||||||
1225 S. Clark Street | National Landing | 100.0 | % | C | Y / Y | 1982 / 2013 | 276,952 | 264,102 | 12,850 | 92.4 | % | 47.1 | % | 100.0 | % | 4,905 | 37.46 | 19.35 |
![]() | Page 34 |
PROPERTY TABLE - COMMERCIAL | DECEMBER 31, 2018 (Unaudited) |
Commercial Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2017-2018 / YTD 2017-2018 | 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) | |||||||||||||
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 | — | 98.8 | % | 98.8 | % | — | 10,170 | 41.31 | — | ||||||||||
200 12th Street S. | National Landing | 100.0 | % | C | Y / Y | 1985 / 2013 | 202,736 | 202,736 | — | 86.7 | % | 86.7 | % | — | 7,871 | 44.78 | — | ||||||||||
2001 Jefferson Davis Highway | National Landing | 100.0 | % | C | Y / Y | 1967 / N/A | 159,838 | 159,838 | — | 67.3 | % | 64.0 | % | — | 3,509 | 34.31 | — | ||||||||||
1800 South Bell Street (7) | National Landing | 100.0 | % | C | N / N | 1969 / 2007 | 69,621 | 45,142 | 24,479 | 100.0 | % | 100.0 | % | 100.0 | % | 2,438 | 48.80 | 9.61 | |||||||||
Crystal City Shops at 2100 | National Landing | 100.0 | % | C | Y / Y | 1968 / 2006 | 59,574 | — | 59,574 | 91.2 | % | — | 91.2 | % | 948 | — | 17.44 | ||||||||||
Crystal Drive Retail | National Landing | 100.0 | % | C | Y / Y | 2003 / N/A | 56,965 | — | 56,965 | 97.3 | % | — | 97.3 | % | 2,951 | — | 53.27 | ||||||||||
Vienna Retail* | Vienna | 100.0 | % | C | Y / Y | 1981 / N/A | 8,584 | — | 8,584 | 100.0 | % | — | 100.0 | % | 420 | — | 48.94 | ||||||||||
Stonebridge at Potomac Town Center* | Prince William County | 10.0 | % | U | Y / N | 2012 / N/A | 503,683 | — | 503,683 | 94.4 | % | — | 93.9 | % | 15,629 | — | 33.06 | ||||||||||
Pickett Industrial Park | Eisenhower Avenue | 10.0 | % | U | Y / N | 1973 / N/A | 246,145 | 246,145 | — | 100.0 | % | 100.0 | % | — | 3,860 | 15.68 | — | ||||||||||
Rosslyn Gateway-North | Rosslyn | 18.0 | % | U | Y / N | 1996 / 2014 | 143,676 | 130,922 | 12,754 | 80.8 | % | 79.3 | % | 96.0 | % | 4,610 | 41.02 | 28.69 | |||||||||
Rosslyn Gateway-South | Rosslyn | 18.0 | % | U | Y / N | 1961 / N/A | 102,061 | 94,477 | 7,584 | 84.9 | % | 87.5 | % | 40.4 | % | 2,240 | 25.43 | 44.75 | |||||||||
MD | |||||||||||||||||||||||||||
7200 Wisconsin Avenue | Bethesda CBD | 100.0 | % | C | Y / N | 1986 / 2015 | 267,602 | 250,650 | 16,952 | 72.6 | % | 70.7 | % | 80.8 | % | $ | 9,103 | $ | 47.44 | $ | 50.69 | ||||||
One Democracy Plaza* (5) | Bethesda‑Rock Spring | 100.0 | % | C | Y / Y | 1987 / 2013 | 213,131 | 210,993 | 2,138 | 96.8 | % | 94.8 | % | 100.0 | % | 6,505 | 32.19 | 30.20 | |||||||||
4749 Bethesda Avenue Retail | Bethesda CBD | 100.0 | % | C | Y / N | 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 / N | 2004 / N/A | 62,650 | 54,077 | 8,573 | 97.6 | % | 97.2 | % | 100.0 | % | 2,249 | 35.63 | 43.82 | |||||||||
Total / Weighted Average | 12,381,927 | 10,724,720 | 1,357,207 | 89.6 | % | 85.3 | % | 93.4 | % | $ | 440,322 | $ | 42.79 | $ | 38.53 | ||||||||||||
Recently Delivered | |||||||||||||||||||||||||||
VA | |||||||||||||||||||||||||||
CEB Tower at Central Place (5) | Rosslyn | 100.0 | % | C | N / N | 2018 / N/A | 552,540 | 524,537 | 28,003 | 93.0 | % | 92.6 | % | 100.0 | % | 30,780 | 61.39 | 34.12 | |||||||||
Operating - Total / Weighted Average | 12,934,467 | 11,249,257 | 1,385,210 | 89.8 | % | 85.7 | % | 93.5 | % | $ | 471,102 | $ | 43.72 | $ | 38.43 | ||||||||||||
![]() | Page 35 |
PROPERTY TABLE - COMMERCIAL | DECEMBER 31, 2018 (Unaudited) |
Commercial Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2017-2018 / YTD 2017-2018 | Year Built / Renovated | Total Square Feet | Office Square Feet | Retail Square Feet | % Leased | Office % Occupied | Retail % Occupied | Annualized Rent (in thousands) | Office Annualized Rent Per Square Foot (3) | Retail Annualized Rent Per Square Foot (4) | |||||||||||||
Under Construction | |||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||
1900 N Street (5) (9) | CBD | 55.0 | % | U | 271,433 | 258,931 | 12,502 | 65.2 | % | ||||||||||||||||||
L’Enfant Plaza Office-Southeast | Southwest | 49.0 | % | U | 215,185 | 215,185 | — | 74.3 | % | ||||||||||||||||||
VA | |||||||||||||||||||||||||||
1770 Crystal Drive (10) | National Landing | 100.0 | % | C | 271,572 | 258,299 | 13,273 | 2.7 | % | ||||||||||||||||||
Central District Retail | National Landing | 100.0 | % | C | 108,825 | — | 108,825 | 45.0 | % | ||||||||||||||||||
MD | |||||||||||||||||||||||||||
4747 Bethesda Avenue (11) | Bethesda CBD | 100.0 | % | C | 291,414 | 285,251 | 6,163 | 77.7 | % | ||||||||||||||||||
Under Construction - Total / Weighted Average | 1,158,429 | 1,017,666 | 140,763 | 53.5 | % | ||||||||||||||||||||||
Total / Weighted Average | 14,092,896 | 12,266,923 | 1,525,973 | 86.7 | % | ||||||||||||||||||||||
Totals at JBG SMITH Share | |||||||||||||||||||||||||||
In service assets | 10,741,949 | 9,634,679 | 807,270 | 89.4 | % | 85.1 | % | 94.4 | % | $ | 387,182 | $ | 43.43 | $ | 40.96 | ||||||||||||
Recently delivered assets | 552,540 | 524,537 | 28,003 | 93.0 | % | 92.6 | % | 100.0 | % | 30,780 | 61.39 | 34.12 | |||||||||||||||
Operating assets | 11,294,489 | 10,159,216 | 835,273 | 89.6 | % | 85.5 | % | 94.6 | % | 417,962 | 44.44 | 40.72 | |||||||||||||||
Under construction assets | 926,530 | 791,392 | 135,137 | 49.5 | % | ||||||||||||||||||||||
1,174,626.9 |
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 2018 | 49 | 13,729,973 | 11,794,866 | ||||||
Placed into service (5) | 1 | 34,000 | 34,000 | ||||||
Dispositions (12) | (2 | ) | (733,137 | ) | (470,583 | ) | |||
Out-of-service adjustment (13) | (2 | ) | (93,394 | ) | (60,728 | ) | |||
Building re-measurements | — | (2,975 | ) | (3,066 | ) | ||||
Q4 2018 | 46 | 12,934,467 | 11,294,489 |
![]() | Page 36 |
PROPERTY TABLE - COMMERCIAL | DECEMBER 31, 2018 (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 | |
One Democracy Plaza | 11/17/2084 | |
CEB Tower at Central Place* | 6/2/2102 | |
1900 N Street** | 5/31/2106 |
(6) | In December 2018, we sold a 99-year term leasehold interest in 1700 M Street to Skanska. 1700 M Street is a 34,000 square foot development site located in the CBD submarket of Washington, DC. JBG SMITH will retain the fee ownership of the land. |
(7) | 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 in the above table. |
Commercial Asset | In-Service | Not Available for Lease | |||
1550 Crystal Drive | 451,037 | 43,655 | |||
RTC - West | 435,998 | 17,988 | |||
Commerce Executive | 388,562 | 14,085 | |||
1800 South Bell Street | 69,621 | 150,321 |
(8) | In February 2019, we sold Commerce Executive for $115.0 million |
(9) | Ownership percentage reflects expected dilution of JBG SMITH as contributions are funded during the construction of the asset. As of December 31, 2018, JBG SMITH's ownership interest was 68.5%. |
(10) | Amazon is expected to lease 258,299 SF at 1770 Crystal Drive. With this expected lease with Amazon, the asset would be 97.8% pre-leased, and the pre-leased status of our total under construction portfolio would be 75.8% (77.4% at our share). |
(11) | Includes JBG SMITH’s lease for approximately 84,400 square feet. |
(12) | In October 2018, we sold 1233 20th Street for $65.0 million. In December 2018, our unconsolidated real estate venture with CPPIB sold The Warner for a sales price of $376.5 million. |
(13) | Wiehle Avenue Office Building and NoBe II Office were taken out of service in Q4 2018. |
![]() | Page 37 |
PROPERTY TABLE - MULTIFAMILY | DECEMBER 31, 2018 (Unaudited) |
Multifamily Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2017-2018 / YTD 2017-2018 | 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 / N | 2015 / N/A | 345 | 384,316 | 253,652 | 130,664 | 98.6 | % | 95.9 | % | 100.0 | % | $ | 9,136 | $ | 1,757 | $ | 2.39 | |||||||
WestEnd25 | West End | 100.0 | % | C | Y / Y | 2009 / N/A | 283 | 273,264 | 273,264 | — | 96.5 | % | 95.8 | % | — | 11,245 | 3,458 | 3.58 | |||||||||||
North End Retail | U Street/Shaw | 100.0 | % | C | Y / N | 2015 / N/A | — | 27,355 | — | 27,355 | 100.0 | % | N/A | 100.0 | % | 1,403 | N/A | N/A | |||||||||||
The Gale Eckington | H Street/NoMa | 5.0 | % | U | Y / N | 2013 / 2017 | 603 | 466,716 | 465,516 | 1,200 | 91.9 | % | 90.2 | % | 100.0 | % | 13,347 | 2,039 | 2.64 | ||||||||||
Atlantic Plumbing | U Street/Shaw | 64.0 | % | U | Y / N | 2015 / N/A | 310 | 245,527 | 221,788 | 23,739 | 96.0 | % | 93.9 | % | 100.0 | % | 10,052 | 2,560 | 3.58 | ||||||||||
VA | |||||||||||||||||||||||||||||
RiverHouse Apartments | National Landing | 100.0 | % | C | Y / Y | 1960 / 2013 | 1,670 | 1,322,016 | 1,319,354 | 2,662 | 95.6 | % | 94.1 | % | 100.0 | % | $ | 33,540 | $ | 1,774 | $ | 2.25 | |||||||
The Bartlett | National Landing | 100.0 | % | C | Y / N | 2016 / N/A | 699 | 619,372 | 577,295 | 42,077 | 95.7 | % | 93.6 | % | 100.0 | % | 22,291 | 2,671 | 3.23 | ||||||||||
220 20th Street | National Landing | 100.0 | % | C | Y / Y | 2009 / N/A | 265 | 271,476 | 269,913 | 1,563 | 97.4 | % | 95.8 | % | 100.0 | % | 7,979 | 2,603 | 2.56 | ||||||||||
2221 South Clark Street | National Landing | 100.0 | % | C | Y / Y | 1964 / 2016 | 216 | 164,743 | 164,743 | — | 100.0 | % | 100.0 | % | — | 3,516 | N/A | N/A | |||||||||||
Fairway Apartments* | Reston | 10.0 | % | U | Y / N | 1969 / 2005 | 346 | 370,850 | 370,850 | — | 95.0 | % | 95.1 | % | — | 6,494 | 1,645 | 1.53 | |||||||||||
MD | |||||||||||||||||||||||||||||
Falkland Chase-South & West | Downtown Silver Spring | 100.0 | % | C | Y / N | 1938 / 2011 | 268 | 222,949 | 222,949 | — | 98.0 | % | 96.6 | % | — | $ | 5,278 | $ | 1,698 | $ | 2.04 | ||||||||
Falkland Chase-North | Downtown Silver Spring | 100.0 | % | C | Y / N | 1938 / 1986 | 170 | 112,259 | 112,259 | — | 97.1 | % | 95.3 | % | — | 2,872 | 1,477 | 2.24 | |||||||||||
Galvan | Rockville Pike Corridor | 1.8 | % | U | Y / N | 2015 / N/A | 356 | 390,641 | 295,033 | 95,608 | 95.9 | % | 94.9 | % | 96.8 | % | 10,816 | 1,786 | 2.15 | ||||||||||
The Alaire (6) | Rockville Pike Corridor | 18.0 | % | U | Y / N | 2010 / N/A | 279 | 266,497 | 251,691 | 14,806 | 94.7 | % | 92.8 | % | 100.0 | % | 5,916 | 1,718 | 1.90 | ||||||||||
The Terano (6) (7) | Rockville Pike Corridor | 1.8 | % | U | Y / N | 2015 / N/A | 214 | 195,864 | 183,496 | 12,368 | 92.4 | % | 91.1 | % | 76.2 | % | 4,366 | 1,744 | 2.03 | ||||||||||
Total / Weighted Average | 6,024 | 5,333,845 | 4,981,803 | 352,042 | 95.8 | % | 94.2 | % | 98.3 | % | $ | 148,251 | $ | 2,048 | $ | 2.47 | |||||||||||||
Recently Delivered | |||||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||||
1221 Van Street | Ballpark/Southeast | 100.0 | % | C | N / N | 2018 / N/A | 291 | 225,462 | 202,715 | 22,747 | 83.1 | % | 80.4 | % | 79.8 | % | 7,649 | 2,392 | 3.43 | ||||||||||
Operating - Total / Weighted Average | 6,315 | 5,559,307 | 5,184,518 | 374,789 | 95.3 | % | 93.6 | % | 97.2 | % | $ | 155,900 | $ | 2,062 | $ | 2.51 | |||||||||||||
Under Construction | |||||||||||||||||||||||||||||
DC | |||||||||||||||||||||||||||||
West Half | Ballpark/Southeast | 100.0 | % | C | 465 | 388,174 | 346,415 | 41,759 | |||||||||||||||||||||
965 Florida Avenue (8) | 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, 2018 (Unaudited) |
Multifamily Assets | Submarket | % Ownership | C/U (1) | Same Store (2): Q4 2017-2018 / YTD 2017-2018 | 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 | 1,476 | 1,308,822 | 1,181,758 | 127,064 | |||||||||||||||||||||||||
Total | 7,791 | 6,868,129 | 6,366,276 | 501,853 | |||||||||||||||||||||||||
Totals at JBG SMITH Share | |||||||||||||||||||||||||||||
In service assets | 4,240 | 3,673,835 | 3,449,652 | 224,182 | 96.5 | % | 94.9 | % | 100.0 | % | $ | 106,349 | $ | 2,123 | $ | 2.60 | |||||||||||||
Recently delivered assets | 291 | 225,462 | 202,715 | 22,747 | 83.1 | % | 80.4 | % | 79.8 | % | 7,649 | 2,392 | 3.43 | ||||||||||||||||
Operating assets | 4,531 | 3,899,297 | 3,652,367 | 246,929 | 95.7 | % | 93.9 | % | 98.1 | % | 113,998 | 2,138 | 2.64 | ||||||||||||||||
Under construction assets | 1,298 | 1,116,337 | 1,001,058 | 115,279 |
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 2018 | 16 | 5,554,123 SF/ 6,307 Units | 3,894,113 SF/ 4,523 Units | ||||||
Placed into service | — | 6,100 SF/ 8 Units | 6,100 SF/ 8 Units | ||||||
Out-of-service adjustment | — | — | — | ||||||
Building re-measurements | — | (916) SF | (916) SF | ||||||
Q4 2018 | 16 | 5,559,307 SF/ 6,315 Units | 3,899,297 SF/ 4,531 Units |
Leasing Activity - Multifamily | ||||||||||||||||||||||||||||
Number of Assets | Number of Units | Monthly Rent Per Unit (3) | Multifamily % Occupied | Annualized Rent (in thousands) | ||||||||||||||||||||||||
Q4 2018 | Q4 2017 | % Change | Q4 2018 | Q4 2017 | % Change | Q4 2018 | Q4 2017 | % Change | ||||||||||||||||||||
DC | 4 | 857 | $ | 2,515 | $ | 2,620 | (4.0 | )% | 95.2 | % | 91.3 | % | 3.9 | % | $ | 24,610 | $ | 24,592 | 0.1 | % | ||||||||
VA | 4 | 2,669 | 2,090 | 2,089 | — | 94.2 | % | 93.8 | % | 0.4 | % | 63,018 | 62,765 | 0.4 | % | |||||||||||||
MD | 5 | 498 | 1,627 | 1,651 | (1.5 | )% | 95.7 | % | 95.5 | % | 0.2 | % | 9,315 | 9,274 | 0.4 | % | ||||||||||||
Total / Weighted Average | 13 | 4,024 | $ | 2,123 | $ | 2,145 | (1.0 | )% | 94.6 | % | 93.3 | % | 1.3 | % | $ | 96,943 | $ | 96,631 | 0.3 | % | ||||||||
Note: At JBG SMITH share. Includes both Vornado Included Assets and JBG Assets placed in service prior to October 1, 2017. |
![]() | Page 39 |
PROPERTY TABLE - MULTIFAMILY | DECEMBER 31, 2018 (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 South Clark Street (WeLive). |
(5) | Represents multifamily rent divided by occupied multifamily square feet; retail rent and retail square feet are excluded from this metric. Occupied multifamily square footage may differ from leased multifamily square footage because leased multifamily square footage includes leases that have been signed but have not yet commenced. |
(6) | The following assets are subject to ground leases: |
Multifamily Asset | Ground Lease Expiration Date | |
The Alaire | 3/27/2107 | |
The Terano | 8/5/2112 |
(7) | 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 in the above table. |
Multifamily Asset | In-Service | Not Available for Lease | |||
The Terano | 195,864 | 3,904 |
(8) | 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, 2018, JBG SMITH's ownership interest was 88.1%. |
![]() | Page 40 |
PROPERTY TABLE - UNDER CONSTRUCTION | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands, except per square foot data | % Ownership | Estimated Square Feet | % Pre-Leased | Weighted Average 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 (4) | CBD | 55.0% | 271,433 | 65.2 | % | $ | 85.80 | — | Q2 2017 | Q2 2020 | Q4 2022 | $ | 99,894 | $ | 23,995 | $ | 123,889 | |||||||||
L'Enfant Plaza Office - Southeast | Southwest | 49.0% | 215,185 | 74.3 | % | 54.58 | — | Q1 2017 | Q3 2019 | Q2 2021 | 42,706 | 4,536 | 47,242 | |||||||||||||
VA | ||||||||||||||||||||||||||
1770 Crystal Drive (5) (6) | National Landing | 100.0% | 271,572 | 2.7 | % | 56.43 | — | Q4 2018 | Q2 2021 | Q2 2021 | 43,306 | 76,636 | 119,942 | |||||||||||||
Central District Retail (6) | National Landing | 100.0% | 108,825 | 45.0 | % | 37.90 | — | Q4 2018 | Q2 2021 | Q4 2021 | 14,022 | 103,104 | 117,126 | |||||||||||||
MD | ||||||||||||||||||||||||||
4747 Bethesda Avenue (7) | Bethesda CBD | 100.0% | 291,414 | 77.7 | % | 61.19 | — | Q2 2017 | Q4 2019 | Q2 2021 | 103,147 | 57,473 | 160,620 | |||||||||||||
Total/weighted average | 1,158,429 | 53.5 | % | $ | 64.61 | — | Q4 2017 | Q3 2020 | Q3 2021 | $ | 303,075 | $ | 265,744 | $ | 568,819 | |||||||||||
Multifamily | ||||||||||||||||||||||||||
DC | ||||||||||||||||||||||||||
West Half | Ballpark/Southeast | 100.0% | 388,174 | — | — | 465 | Q1 2017 | Q1 2020 | Q1 2021 | 163,221 | 65,148 | 228,369 | ||||||||||||||
965 Florida Avenue (8) | U Street/Shaw | 96.1% | 336,092 | — | — | 433 | Q4 2017 | Q4 2020 | Q1 2022 | 48,358 | 104,261 | 152,619 | ||||||||||||||
Atlantic Plumbing C | U Street/Shaw | 100.0% | 225,531 | — | — | 256 | Q1 2017 | Q4 2019 | Q3 2020 | 124,399 | 34,254 | 158,653 | ||||||||||||||
MD | ||||||||||||||||||||||||||
7900 Wisconsin Avenue | Bethesda CBD | 50.0% | 359,025 | — | — | 322 | Q2 2017 | Q3 2020 | Q4 2021 | 44,461 | 49,954 | 94,415 | ||||||||||||||
Total/weighted average | 1,308,822 | — | — | 1,476 | Q2 2017 | Q2 2020 | Q2 2021 | $ | 380,439 | $ | 253,617 | $ | 634,056 | |||||||||||||
Under Construction - Total / Weighted Average (9) | 2,467,251 | 53.5 | % | $ | 64.61 | 1,476 | Q3 2017 | Q2 2020 | Q2 2021 | $ | 683,514 | $ | 519,361 | $ | 1,202,875 | |||||||||||
Under Construction - Total / Weighted Average at JBG SMITH Share (9) | 2,042,866 | 49.5 | % | $ | 62.72 | 1,298 | ||||||||||||||||||||
Commercial | Multifamily | Total | ||||||||||||||||||||||||
Weighted average projected NOI yield at JBG SMITH share: | ||||||||||||||||||||||||||
Estimated total project cost (10) | 6.5 | % | 6.4 | % | 6.4 | % | Consol | 440,876 | ||||||||||||||||||
Estimated total investment | 6.4 | % | 6.0 | % | 6.2 | % | Unconsol | 78,485 | ||||||||||||||||||
Estimated incremental investment | 13.7 | % | 15.0 | % | 14.3 | % | ||||||||||||||||||||
Estimated Stabilized NOI at JBG SMITH Share (dollars in millions) | $ | 36.3 | $ | 37.9 | $ | 74.2 |
(1) | Based on leases signed as of December 31, 2018 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, such as capitalized payroll, interest and ground lease costs. See definition of historical cost on page 51. |
(4) | Ownership percentage reflects expected dilution of JBG SMITH as contributions are funded during the construction of the asset. As of December 31, 2018, JBG SMITH's ownership interest was 68.5%. |
(5) | Amazon is expected to lease 258,299 SF at 1770 Crystal Drive. With this expected lease with Amazon, we expect the asset would be 97.8% pre-leased and the pre-leased status of the total under construction portfolio would be 75.8% (77.4% at our share). |
(6) | Historical cost of 1770 Crystal Drive and Central District Retail includes $4.4 million and $4.3 million of prior design costs not related to the current planned development. |
(7) | Includes JBG SMITH’s lease for approximately 84,400 square feet. |
(8) | 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, 2018, JBG SMITH's ownership interest was 88.1%. |
(9) | Multifamily assets are excluded from the percent pre-leased and the weighted average pre-lease rent per square foot metrics. |
(10) | 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, 2018 (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 | — | 106,283 | N/A | — | — | $ | 106,283 | $ | 63.32 | ||||||||||||||||||||||||||||
VA | ||||||||||||||||||||||||||||||||||||||||||
National Landing (6) | 15 | 11,038,400 | 7,551,200 | 3,341,700 | 145,500 | 229,459 SF | 311,572 | N/A | 41,733 | — | 353,305 | 32.01 | ||||||||||||||||||||||||||||||
Reston | 5 | 3,483,200 | 1,299,800 | 1,971,400 | 212,000 | 15 units | 76,098 | N/A | 3,056 | — | 79,154 | 22.72 | ||||||||||||||||||||||||||||||
Other VA | 4 | 220,600 | 88,200 | 121,300 | 11,100 | 21,544 SF | 2,086 | N/A | 4,515 | 2,480 | 9,081 | 41.17 | ||||||||||||||||||||||||||||||
24 | 14,742,200 | 8,939,200 | 5,434,400 | 368,600 | 251,003 SF / 15 units | 389,756 | N/A | 49,304 | 2,480 | 441,540 | 29.95 | |||||||||||||||||||||||||||||||
MD | ||||||||||||||||||||||||||||||||||||||||||
Silver Spring | 1 | 1,276,300 | — | 1,156,300 | 120,000 | 170 units | 15,060 | N/A | 31,600 | — | 46,660 | 36.56 | ||||||||||||||||||||||||||||||
Greater Rockville | 4 | 126,500 | 19,200 | 88,600 | 18,700 | — | 3,630 | N/A | — | 664 | 4,294 | 33.94 | ||||||||||||||||||||||||||||||
5 | 1,402,800 | 19,200 | 1,244,900 | 138,700 | 170 units | 18,690 | N/A | 31,600 | 664 | 50,954 | 36.32 | |||||||||||||||||||||||||||||||
Total / weighted average | 37 | 17,823,400 | 9,270,500 | 8,036,600 | 516,300 | 251,003 SF / 185 units | $ | 514,729 | N/A | $ | 80,904 | $ | 3,144 | $ | 598,777 | $ | 33.59 | |||||||||||||||||||||||||
Optioned (7) | ||||||||||||||||||||||||||||||||||||||||||
DC | ||||||||||||||||||||||||||||||||||||||||||
DC | 3 | 1,793,600 | 78,800 | 1,498,900 | 215,900 | — | $ | 18,724 | $ | 25,051 | $ | — | $ | 71,113 | $ | 114,888 | $ | 64.05 | ||||||||||||||||||||||||
VA | ||||||||||||||||||||||||||||||||||||||||||
Other VA | 1 | 11,300 | — | 10,400 | 900 | — | 76 | 995 | — | — | 1,071 | 94.78 | ||||||||||||||||||||||||||||||
Total / weighted average | 4 | 1,804,900 | 78,800 | 1,509,300 | 216,800 | — | $ | 18,800 | $ | 26,046 | $ | — | $ | 71,113 | $ | 115,959 | $ | 64.25 | ||||||||||||||||||||||||
Total / Weighted Average | 41 | 19,628,300 | 9,349,300 | 9,545,900 | 733,100 | 251,003 SF / 185 units | $ | 533,529 | $ | 26,046 | $ | 80,904 | $ | 74,257 | $ | 714,736 | $ | 36.41 |
(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 payroll, 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, 2018. |
(4) | Capitalized value of estimated commercial square feet / multifamily units to be replaced, which generated approximately $1.2 million of NOI for the three months ended December 31, 2018 (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) | Includes 4.1 million square feet of estimated potential development density that JBG SMITH intends to sell to Amazon for $294 million. |
(7) | As of December 31, 2018, the weighted average remaining term for the optioned future development assets is 5.5 years. |
![]() | Page 42 |
DISPOSITION & RECAPITALIZATION ACTIVITY | DECEMBER 31, 2018 (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 2018 | ||||||||||||||||
Summit - MWAA | 100.0% | Future Development | Reston, VA | February 13, 2018 | — | $ | 2,154 | $ | 2,154 | $ | 455 | |||||
Q2 2018 | ||||||||||||||||
Summit I and II / Summit Land (2) | 100.0% | Commercial / Future Development | Reston, VA | April 3, 2018 | 284,118 / 700,000 | $ | 95,000 | $ | 35,240 | $ | 6,189 | |||||
Bowen Building | 100.0% | Commercial | Washington, DC | May 1, 2018 | 231,402 | 140,000 | 136,488 | 27,207 | ||||||||
Subtotal | 515,520 / 700,000 | $ | 235,000 | $ | 171,728 | $ | 33,396 | |||||||||
Q3 2018 | ||||||||||||||||
Investment Building | 5.0% | Commercial | Washington, DC | August 23, 2018 | 20,069 | $ | 24,602 | 24,688 | 15,488 | |||||||
Executive Tower | 100.0% | Commercial | Washington, DC | September 21, 2018 | 129,831 | 121,445 | 113,267 | 12,378 | ||||||||
Subtotal | 149,900 | $ | 146,047 | $ | 137,955 | $ | 27,866 | |||||||||
Q4 2018 | ||||||||||||||||
1233 20th Street (3) | 100.0% | Commercial | Washington, DC | October 23, 2018 | 149,684 | 65,000 | 21,229 | 4,354 | ||||||||
Falkland Chase - North (out-of-service portion) | 100.0% | Multifamily | Silver Spring, MD | October 25, 2018 | 13,284 | 3,819 | 3,819 | 1,600 | ||||||||
The Warner (4) | 55.0% | Commercial | Washington, DC | December 28, 2018 | 320,899 | 207,075 | 199,751 | 20,554 | ||||||||
Subtotal | 483,867 | $ | 275,894 | $ | 224,799 | $ | 26,508 | |||||||||
Total | 1,149,287 / 700,000 | $ | 659,095 | $ | 536,636 | $ | 88,225 |
(1) | As of December 31, 2018, Commerce Executive was classified as held for sale in our condensed consolidated balance sheet. In February 2019, we sold Commerce Executive for a gross sales price of $115.0 million. The sale also included approximately 894,000 square feet of estimated potential development density. |
(2) | In connection with the sale, we repaid the related $59.0 million mortgage loan. |
(3) | In connection with the sale, we repaid the related $41.9 million mortgage loan. |
(4) | In connection with the sale, our unconsolidated real estate venture repaid the related mortgage payable of $270.5 million. |
![]() | Page 43 |
DEBT SUMMARY | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands, at JBG SMITH share | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||||||||||
Consolidated and Unconsolidated Principal Balance | |||||||||||||||||||||||||||||
Unsecured Debt: | |||||||||||||||||||||||||||||
Revolving credit facility ($1 billion commitment) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Term loans ($400 million commitment) | — | — | — | — | 100,000 | 200,000 | 300,000 | ||||||||||||||||||||||
Total unsecured debt | — | — | — | — | 100,000 | 200,000 | 300,000 | ||||||||||||||||||||||
Secured Debt: | |||||||||||||||||||||||||||||
Consolidated principal balance | 182,467 | 97,141 | 331,881 | 327,500 | 177,736 | 727,927 | 1,844,652 | ||||||||||||||||||||||
Unconsolidated principal balance | 118,738 | 41,077 | — | 74,270 | 20,693 | 44,612 | 299,390 | ||||||||||||||||||||||
Total secured debt | 301,205 | 138,218 | 331,881 | 401,770 | 198,429 | 772,539 | 2,144,042 | ||||||||||||||||||||||
Total Consolidated and Unconsolidated Principal Balance | $ | 301,205 | $ | 138,218 | $ | 331,881 | $ | 401,770 | $ | 298,429 | $ | 972,539 | $ | 2,444,042 | |||||||||||||||
% of total debt maturing | 12.3 | % | 5.7 | % | 13.6 | % | 16.4 | % | 12.2 | % | 39.8 | % | 100.0 | % | |||||||||||||||
% floating rate (1) | 100.0 | % | 20.5 | % | 38.1 | % | — | — | 21.5 | % | 27.2 | % | |||||||||||||||||
% fixed rate (2) | — | % | 79.5 | % | 61.9 | % | 100.0 | % | 100.0 | % | 78.5 | % | 72.8 | % | |||||||||||||||
Weighted Average Interest Rates | |||||||||||||||||||||||||||||
Variable rate | 5.07 | % | 6.14 | % | 3.56 | % | — | — | 4.06 | % | 4.51 | % | |||||||||||||||||
Fixed rate | — | 3.32 | % | 4.19 | % | 3.94 | % | 4.49 | % | 4.18 | % | 4.13 | % | ||||||||||||||||
Total Weighted Average Interest Rates | 5.07 | % | 3.90 | % | 3.95 | % | 3.94 | % | 4.49 | % | 4.16 | % | 4.23 | % | |||||||||||||||
Credit Facility | |||||||||||||||||||||||||||||
Revolving Credit Facility | Tranche A-1 Term Loan | Tranche A-2 Term Loan | Total/Weighted Average | 2,144,652 | |||||||||||||||||||||||||
Credit limit | $ | 1,000,000 | $ | 200,000 | $ | 200,000 | $ | 1,400,000 | 2.12 | % | |||||||||||||||||||
Outstanding principal balance | $ | — | $ | 100,000 | $ | 200,000 | $ | 300,000 | |||||||||||||||||||||
Letters of credit | $ | 5,743 | $ | — | $ | — | $ | 5,743 | |||||||||||||||||||||
Undrawn capacity | $ | 994,257 | $ | 100,000 | $ | — | $ | 1,094,257 | |||||||||||||||||||||
Interest rate spread (3) | 1.10 | % | 1.20 | % | 1.55 | % | 1.43 | % | |||||||||||||||||||||
All-In interest rate (4) | 3.60 | % | 3.32 | % | 4.05 | % | 3.81 | % | |||||||||||||||||||||
Initial maturity date | Jul-21 | Jan-23 | Jul-24 | — | |||||||||||||||||||||||||
Delayed draw availability period | — | Jul-19 | — | — |
(1) | Floating rate debt includes floating rate loans with interest rate caps. |
(2) | Fixed rate debt includes floating rate loans with interest rate swaps. |
(3) | The interest rate for the revolving credit facility excludes a 0.15% facility fee. |
(4) | The all-in interest rate is inclusive of interest rate swaps. As of December 31, 2018, only the $100 million outstanding balance on the Tranche A-1 Term Loan had been swapped. |
![]() | Page 44 |
DEBT BY INSTRUMENT | DECEMBER 31, 2018 (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 | |||||||||||||
Courthouse Plaza 1 and 2 | 100.0 | % | — | L + 1.60% | — | 4.10 | % | 05/10/19 | 05/10/20 | ||||
RTC - West | 100.0 | % | 97,141 | L + 1.50% | Swap | 3.33 | % | 04/12/20 | 04/12/21 | ||||
WestEnd25 | 100.0 | % | 97,881 | 4.88% | Fixed | 4.88 | % | 06/01/21 | 06/01/21 | ||||
Universal Buildings | 100.0 | % | 182,467 | L + 1.90% | Cap | 4.40 | % | 08/12/19 | 08/12/21 | ||||
The Bartlett | 100.0 | % | 220,000 | L + 1.70% | Swap | 3.79 | % | 06/20/22 | 06/20/22 | ||||
Credit Facility - Revolving Credit Facility | 100.0 | % | — | L + 1.10% | — | 3.60 | % | 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 | % | 136,728 | 5.51% | Fixed | 5.51 | % | 03/01/23 | 03/01/23 | ||||
Falkland Chase - South & West | 100.0 | % | 41,008 | 3.78% | Fixed | 3.78 | % | 06/01/23 | 06/01/23 | ||||
CEB Tower at Central Place (3) | 100.0 | % | 234,000 | L + 1.65% | Swap | 3.56 | % | 11/07/21 | 11/07/23 | ||||
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 | 100.0 | % | 200,000 | L + 1.55% | — | 4.05 | % | 07/18/24 | 07/18/24 | ||||
2101 L Street | 100.0 | % | 137,453 | 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 | % | 83,664 | 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 | ||||
Fort Totten Square | 100.0 | % | 73,600 | L + 1.35% | Swap | 3.77 | % | 05/18/25 | 05/18/25 | ||||
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 | 2,144,652 | ||||||||||||
Premium / (discount) recognized as a result of the Formation Transaction | 1,266 | ||||||||||||
Deferred financing costs - mortgage loans | (7,564 | ) | 1,569,918 | ||||||||||
Deferred financing costs - credit facility | (7,650 | ) | 1,060,951 | ||||||||||
Total Consolidated Indebtedness | $ | 2,130,704 | 1,369,918 | ||||||||||
Total Consolidated Indebtedness (net of premium / (discount) and deferred financing costs) | |||||||||||||
Mortgages payable | $ | 1,838,381 | |||||||||||
Revolving credit facility | — | — | 4,806 | ||||||||||
Deferred financing costs, net - credit facility (included in other assets) | (4,806 | ) | |||||||||||
Unsecured term loan | 297,129 | ||||||||||||
Total Consolidated Indebtedness | $ | 2,130,704 | |||||||||||
![]() | Page 45 |
DEBT BY INSTRUMENT | DECEMBER 31, 2018 (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 | 18.0 | % | 12,802 | L + 1.90% | Swap | 3.52 | % | 01/01/20 | 01/01/20 | ||||
Galvan | 1.8 | % | 89,500 | L + 1.75% | Cap | 4.25 | % | 03/06/20 | 03/06/21 | ||||
Rosslyn Gateway - North, Rosslyn Gateway - South | 18.0 | % | 48,390 | L + 2.00% | Cap | 3.00 | % | 11/17/19 | 11/17/21 | ||||
The Foundry | 9.9 | % | 56,545 | L + 1.85% | Cap | 4.35 | % | 12/12/19 | 12/12/21 | ||||
L'Enfant Plaza Office - North, L'Enfant Plaza Office - East, L'Enfant Plaza Retail (4) | 49.0 | % | 213,162 | L + 3.65% | — | 6.46 | % | 05/08/19 | 05/08/22 | ||||
L'Enfant Plaza Office - Southeast | 49.0 | % | 54,497 | L + 3.75% | Cap | 6.25 | % | 05/08/20 | 05/08/22 | ||||
Atlantic Plumbing | 64.0 | % | 100,000 | L + 1.50% | Swap | 5.08 | % | 11/08/22 | 11/08/22 | ||||
Stonebridge at Potomac Town Center | 10.0 | % | 104,606 | L + 1.70% | Swap | 3.25 | % | 12/10/20 | 12/10/22 | ||||
The Alaire | 18.0 | % | 48,000 | L + 1.82% | Cap | 4.32 | % | 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 | % | 47,293 | L + 1.50% | Swap | 3.60 | % | 07/01/22 | 07/01/25 | ||||
7900 Wisconsin Avenue | 50.0 | % | — | 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 | % | 11/08/25 | 11/08/25 | |||
Wardman Park | 16.7 | % | 124,158 | 4.77% | Fixed | 4.77 | % | 02/01/23 | 02/01/28 | ||||
Total Unconsolidated Principal Balance | 1,127,366 | ||||||||||||
Deferred financing costs | (1,998 | ) | |||||||||||
Total Unconsolidated Indebtedness | $ | 1,125,368 | |||||||||||
Principal Balance at JBG SMITH Share | |||||||||||||
Consolidated principal balance at JBG SMITH share | $ | 2,144,652 | |||||||||||
Unconsolidated principal balance at JBG SMITH share | 299,390 | 2 | % | ||||||||||
Total Consolidated and Unconsolidated Principal Balance at JBG SMITH Share | $ | 2,444,042 | |||||||||||
Indebtedness at JBG SMITH Share (net of premium / (discount) and deferred financing costs) | |||||||||||||
Consolidated indebtedness at JBG SMITH Share | $ | 2,130,704 | |||||||||||
Unconsolidated indebtedness at JBG SMITH Share | 298,588 | ||||||||||||
Total Consolidated and Unconsolidated Indebtedness at JBG SMITH Share | $ | 2,429,292 | 2.43 |
(1) | December 31, 2018 one-month LIBOR of 2.50% 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) | The notional amount of the CEB Tower at Central Place interest rate swap as of December 31, 2018 was $107.5 million. |
(4) | The base rate for this loan is three-month LIBOR, which was 2.81% as of December 31, 2018. |
![]() | Page 46 |
CONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2018 (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, 2018, JBG SMITH's ownership interest was 88.1%. |
![]() | Page 47 |
UNCONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2018 (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 | % | 299,476 | |
L'Enfant Plaza Office - Southeast | Commercial | Washington, DC | Southwest | 49.0 | % | 215,185 | |
L'Enfant Plaza Retail | Commercial | Washington, DC | Southwest | 49.0 | % | 119,361 | |
Rosslyn Gateway - North | Commercial | Arlington, VA | Rosslyn | 18.0 | % | 143,676 | |
Rosslyn Gateway - South | Commercial | Arlington, VA | Rosslyn | 18.0 | % | 102,061 | |
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 | % | 266,497 | |
The Terano | Multifamily | Rockville, MD | Rockville Pike Corridor | 1.8 | % | 195,864 | |
NoBe II Land | Future Development | Rockville, MD | Rockville Pike Corridor | 18.0 | % | 589,000 | |
Rosslyn Gateway - 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 | % | — | |
4,402,968 | |||||||
CBREI Venture | |||||||
Stonebridge at Potomac Town Center | Commercial | Woodbridge, VA | Prince William County | 10.0 | % | 503,683 | |
Pickett Industrial Park | Commercial | Alexandria, VA | Eisenhower Avenue | 10.0 | % | 246,145 | |
The Foundry | Commercial | Washington, DC | Georgetown | 9.9 | % | 223,359 | |
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 | % | 232,700 | |
2,815,180 | |||||||
![]() | Page 48 |
UNCONSOLIDATED REAL ESTATE VENTURES | DECEMBER 31, 2018 (Unaudited) |
Asset Type | City | Submarket | % Ownership | Total Square Feet | |||
Canadian Pension Plan Investment Board | |||||||
1900 N Street (1) | Commercial | Washington, DC | CBD | 55.0 | % | 271,433 | |
1101 17th Street | Commercial | Washington, DC | CBD | 55.0 | % | 210,730 | |
482,163 | |||||||
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 | |||||||
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 | 9,307,436 | ||||||
(1) | Ownership percentage reflects expected dilution of JBG SMITH as contributions are funded during the construction of the asset. As of December 31, 2018, JBG SMITH's ownership interest was 68.5%. |
![]() | Page 49 |
DEFINITIONS | DECEMBER 31, 2018 |
![]() | Page 50 |
DEFINITIONS | DECEMBER 31, 2018 |
![]() | Page 51 |
DEFINITIONS | DECEMBER 31, 2018 |
![]() | Page 52 |
DEFINITIONS | DECEMBER 31, 2018 |
![]() | Page 53 |
APPENDIX - EBITDA, EBITDAre AND ADJUSTED EBITDA (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
Three Months Ended | ||||||||||||||||
dollars in thousands | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | |||||||||||
EBITDA, EBITDAre and Adjusted EBITDA | ||||||||||||||||
Net income (loss) | $ | 994 | $ | 26,382 | $ | 24,023 | $ | (4,786 | ) | $ | (18,752 | ) | ||||
Depreciation and amortization expense | 67,556 | 46,603 | 48,117 | 49,160 | 51,933 | |||||||||||
Interest expense (1) | 18,184 | 18,979 | 18,027 | 19,257 | 14,328 | |||||||||||
Income tax benefit (expense) | 698 | (841 | ) | 313 | (908 | ) | (9,595 | ) | ||||||||
Unconsolidated real estate ventures allocated share of above adjustments | 10,253 | 10,986 | 10,602 | 10,175 | 10,864 | |||||||||||
Allocated share of above adjustments to noncontrolling interests in consolidated real estate ventures | (182 | ) | — | 129 | — | — | ||||||||||
EBITDA | $ | 97,503 | $ | 102,109 | $ | 101,211 | $ | 72,898 | $ | 48,778 | ||||||
Gain on sale of real estate | (6,394 | ) | (11,938 | ) | (33,396 | ) | (455 | ) | — | |||||||
Gain on sale of unconsolidated real estate assets | (20,554 | ) | (15,488 | ) | — | — | — | |||||||||
EBITDAre | $ | 70,555 | $ | 74,683 | $ | 67,815 | $ | 72,443 | $ | 48,778 | ||||||
Transaction and other costs (2) | 15,572 | 4,126 | 3,787 | 4,221 | 12,566 | |||||||||||
Loss on extinguishment of debt | 617 | 79 | 4,457 | — | 12 | |||||||||||
Reduction of gain on bargain purchase | — | — | 7,606 | — | 3,395 | |||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 8,387 | 9,097 | 9,428 | 14,806 | |||||||||||
Distributions in excess of our net investment in unconsolidated real estate venture (3) | (7,374 | ) | (890 | ) | (5,412 | ) | — | — | ||||||||
Unconsolidated real estate ventures allocated share of above adjustments | 1,542 | — | — | 30 | — | |||||||||||
Lease liability adjustments | (7,422 | ) | (2,543 | ) | — | — | — | |||||||||
Allocated share of above adjustments to noncontrolling interests in consolidated real estate ventures | — | — | (124 | ) | — | — | ||||||||||
Adjusted EBITDA | $ | 82,608 | $ | 83,842 | $ | 87,226 | $ | 86,122 | $ | 79,557 | ||||||
Net Debt to Adjusted EBITDA | 6.5x | 6.7x | 6.3x | 6.9x | 7.1x | |||||||||||
December 31, 2018 | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | ||||||||||||
Net Debt (at JBG SMITH Share) | ||||||||||||||||
Consolidated indebtedness (4) | $ | 2,130,704 | $ | 2,103,589 | $ | 2,033,183 | $ | 2,185,461 | $ | 2,188,104 | ||||||
Unconsolidated indebtedness (4) | 298,588 | 442,669 | 440,177 | 419,476 | 395,117 | |||||||||||
Total consolidated and unconsolidated indebtedness | 2,429,292 | 2,546,258 | 2,473,360 | 2,604,937 | 2,583,221 | |||||||||||
Less: cash and cash equivalents | 273,611 | 284,012 | 276,629 | 238,519 | 328,918 | |||||||||||
Net Debt (at JBG SMITH Share) | $ | 2,155,681 | $ | 2,262,246 | $ | 2,196,731 | $ | 2,366,418 | $ | 2,254,303 |
(1) | Interest expense includes the amortization of deferred financing costs and the marking-to-market of interest rate swaps and caps, net of capitalized interest. |
(2) | Includes fees and expenses incurred in connection with the Formation Transaction (including transition services provided by our former parent, integration costs and severance costs), costs related to the pursuit of Amazon HQ2, and costs related to other completed, potential and pursued transactions. |
(3) | Related to our investment in the real estate venture that owns 1101 17th Street. In Q2 2018, the mortgage loan payable that was collateralized by 1101 17th Street was refinanced eliminating the principal guaranty provisions that had been included in the prior loan. At the time of refinancing, distributions and our share of the cumulative earnings of the venture exceeded our investment in the venture by $5.4 million, which resulted in a negative investment balance. After the elimination of the principal guaranty provisions in the prior mortgage loan, we recognized the $5.4 million negative investment balance as income within “Income from unconsolidated real estate ventures, net” in our statements of operations in Q2 2018, which results in a zero investment balance in the real estate venture that owns 1101 17th Street in our balance sheet as of December 31, 2018. We have also suspended the equity method of accounting for this venture and recognized as income in Q3 2018 and Q4 2018, $890,000 and $7.4 million related to cash distributions. |
(4) | Net of premium/discount and deferred financing costs. |
![]() | Page 54 |
APPENDIX - FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
Three Months Ended | |||||||||||||||
in thousands, except per share data | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | ||||||||||
FFO and Core FFO | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | 710 | $ | 22,830 | $ | 20,574 | $ | (4,190 | ) | $ | (16,418 | ) | |||
Net income (loss) attributable to redeemable noncontrolling interests | 178 | 3,552 | 3,574 | (594 | ) | (2,331 | ) | ||||||||
Net income (loss) attributable to noncontrolling interests | 106 | — | (125 | ) | (2 | ) | (3 | ) | |||||||
Net income (loss) | 994 | 26,382 | 24,023 | (4,786 | ) | (18,752 | ) | ||||||||
Gain on sale of real estate | (6,394 | ) | (11,938 | ) | (33,396 | ) | (455 | ) | — | ||||||
Gain on sale of unconsolidated real estate assets | (20,554 | ) | (15,488 | ) | — | — | — | ||||||||
Real estate depreciation and amortization | 64,891 | 43,945 | 45,587 | 46,639 | 49,548 | ||||||||||
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures | 6,079 | 6,345 | 6,179 | 6,436 | 7,235 | ||||||||||
Net (income) attributable to noncontrolling interests in consolidated real estate ventures | (182 | ) | — | 129 | 2 | — | |||||||||
FFO Attributable to Operating Partnership Common Units | $ | 44,834 | $ | 49,246 | $ | 42,522 | $ | 47,836 | $ | 38,031 | |||||
FFO attributable to redeemable noncontrolling interests | (5,741 | ) | (6,631 | ) | (6,299 | ) | (7,127 | ) | (5,572 | ) | |||||
FFO attributable to common shareholders | $ | 39,093 | $ | 42,615 | $ | 36,223 | $ | 40,709 | $ | 32,459 | |||||
FFO attributable to the operating partnership common units | $ | 44,834 | $ | 49,246 | $ | 42,522 | $ | 47,836 | $ | 38,031 | |||||
Transaction and other costs, net of tax (1) | 14,509 | 3,586 | 3,394 | 4,136 | 6,709 | ||||||||||
Mark-to-market on derivative instruments | (542 | ) | 152 | (432 | ) | (1,119 | ) | (881 | ) | ||||||
Share of gain from mark-to-market on derivative instruments held by unconsolidated real estate ventures | 379 | (49 | ) | (90 | ) | (342 | ) | (507 | ) | ||||||
Loss on extinguishment of debt, net of noncontrolling interests | 2,159 | 79 | 4,333 | — | 12 | ||||||||||
Distributions in excess of our net investment in unconsolidated real estate venture (2) | (7,374 | ) | (890 | ) | (5,412 | ) | — | — | |||||||
Reduction of gain on bargain purchase | — | — | 7,606 | — | 3,395 | ||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 8,387 | 9,097 | 9,428 | 14,806 | ||||||||||
Lease liability adjustments | (7,422 | ) | (2,543 | ) | — | — | — | ||||||||
Amortization of management contracts intangible, net of tax | 1,287 | 1,288 | 1,287 | 1,286 | 161 | ||||||||||
Tax benefit associated with the 2017 Tax Act | — | — | — | — | (3,854 | ) | |||||||||
Core FFO Attributable to Operating Partnership Common Units | $ | 56,948 | $ | 59,256 | $ | 62,305 | $ | 61,225 | $ | 57,872 | |||||
Core FFO attributable to redeemable noncontrolling interests | (7,292 | ) | (7,978 | ) | (9,229 | ) | (9,037 | ) | (8,480 | ) | |||||
Core FFO attributable to common shareholders | $ | 49,656 | $ | 51,278 | $ | 53,076 | $ | 52,188 | $ | 49,392 | |||||
FFO per diluted common share | $ | 0.32 | $ | 0.36 | $ | 0.31 | $ | 0.35 | $ | 0.28 | |||||
Core FFO per diluted common share | $ | 0.41 | $ | 0.43 | $ | 0.45 | $ | 0.44 | $ | 0.42 | |||||
Weighted average diluted shares | 120,917 | 119,835 | 117,955 | 117,955 | 117,955 |
![]() | Page 55 |
APPENDIX - FFO, CORE FFO AND FAD (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
Three Months Ended | |||||||||||||||
in thousands, except per share data | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | ||||||||||
FAD | |||||||||||||||
Core FFO attributable to the operating partnership common units | $ | 56,948 | $ | 59,256 | $ | 62,305 | $ | 61,225 | $ | 57,872 | |||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | (35,836 | ) | (19,123 | ) | (11,057 | ) | (6,097 | ) | (24,930 | ) | |||||
Straight-line and other rent adjustments (3) | (6,692 | ) | (1,368 | ) | (1,216 | ) | (1,075 | ) | 887 | ||||||
Share of straight-line rent from unconsolidated real estate ventures | 680 | 180 | 189 | 159 | 108 | ||||||||||
Third-party lease liability assumption payments | (1,130 | ) | (912 | ) | (619 | ) | (472 | ) | (1,059 | ) | |||||
Share of third party lease liability assumption payments for unconsolidated real estate ventures | — | — | — | (50 | ) | (312 | ) | ||||||||
Share-based compensation expense | 4,666 | 4,879 | 5,941 | 4,276 | 2,028 | ||||||||||
Amortization of debt issuance costs | 1,140 | 1,155 | 1,201 | 1,164 | 1,060 | ||||||||||
Share of amortization of debt issuance costs from unconsolidated real estate ventures | 67 | 66 | 66 | 69 | 54 | ||||||||||
Non-real estate depreciation and amortization | 893 | 886 | 758 | 749 | 928 | ||||||||||
FAD available to the Operating Partnership Common Units (A) (4) | $ | 20,736 | $ | 45,019 | $ | 57,568 | $ | 59,948 | $ | 36,636 | |||||
Distributions to common shareholders and unitholders (5) (B) | $ | 31,284 | $ | 31,196 | $ | 31,197 | $ | 31,423 | $ | 31,097 | |||||
FAD Payout Ratio (B÷A) | 150.9 | % | 69.3 | % | 54.2 | % | 52.4 | % | 84.9 | % |
Capital Expenditures | |||||||||||||||
Maintenance and recurring capital expenditures | $ | 14,445 | $ | 7,113 | $ | 3,989 | $ | 2,683 | $ | 19,054 | |||||
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures | 978 | 444 | 250 | 1,149 | 1,049 | ||||||||||
Second generation tenant improvements and leasing commissions | 19,211 | 10,603 | 6,273 | 1,893 | 3,925 | ||||||||||
Share of second generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 1,202 | 963 | 545 | 372 | 902 | ||||||||||
Recurring capital expenditures and second generation tenant improvements and leasing commissions | 35,836 | 19,123 | 11,057 | 6,097 | 24,930 | ||||||||||
First generation tenant improvements and leasing commissions | 8,215 | 4,443 | 6,676 | 4,185 | 7,584 | ||||||||||
Share of first generation tenant improvements and leasing commissions from unconsolidated real estate ventures | 17 | 169 | 1,391 | 995 | 1,285 | ||||||||||
Non-recurring capital expenditures | 15,375 | 2,895 | 3,765 | 3,366 | 3,593 | ||||||||||
Share of non-recurring capital expenditures from unconsolidated joint ventures | 112 | 300 | 142 | 620 | 1,029 | ||||||||||
Non-recurring capital expenditures | 23,719 | 7,807 | 11,974 | 9,166 | 13,491 | ||||||||||
Total JBG SMITH Share of Capital Expenditures | $ | 59,555 | $ | 26,930 | $ | 23,031 | $ | 15,263 | $ | 38,421 |
(1) | Includes fees and expenses incurred in connection with the Formation Transaction (including transition services provided by our former parent, integration costs, and severance costs), costs related to the pursuit of Amazon HQ2, and costs related to other completed, potential and pursued transactions. |
(2) | Related to our investment in the real estate venture that owns 1101 17th Street. In Q2 2018, the mortgage loan payable that was collateralized by 1101 17th Street was refinanced eliminating the principal guaranty provisions that had been included in the prior loan. At the time of refinancing, distributions and our share of the cumulative earnings of the venture exceeded our investment in the venture by $5.4 million, which resulted in a negative investment balance. After the elimination of the principal guaranty provisions in the prior mortgage loan, we recognized the $5.4 million negative investment balance as income within “Income from unconsolidated real estate ventures, net” in our statements of operations in Q2 2018, which results in a zero investment balance in the real estate venture that owns 1101 17th Street in our balance sheet as of December 31, 2018. We have also suspended the equity method of accounting for this venture and recognized as income in Q3 2018 and Q4 2018, $890,000 and $7.4 million related to cash distributions. |
(3) | Includes straight-line rent, above/below market lease amortization and lease incentive amortization. |
(4) | The fourth quarter decline in FAD available to the Operating Partnership Units was attributable to a significant increase in second generation tenant improvements and leasing commissions from the early renewal of several leases during the quarter and an increase in recurring capital expenditures, which is consistent with historical seasonality trends. |
(5) | In December 2018, our Board of Trustees declared regular quarterly dividends of $0.225 per common share and a special dividend of $0.10 per common share, both of which were paid in January 2019. |
![]() | Page 56 |
APPENDIX - NOI RECONCILIATIONS (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
dollars in thousands | Three Months Ended | ||||||||||||||
Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | |||||||||||
Net income (loss) attributable to common shareholders | $ | 710 | $ | 22,830 | $ | 20,574 | $ | (4,190 | ) | $ | (16,418 | ) | |||
Add: | |||||||||||||||
Depreciation and amortization expense | 67,556 | 46,603 | 48,117 | 49,160 | 51,933 | ||||||||||
General and administrative expense: | |||||||||||||||
Corporate and other | 8,512 | 12,415 | 12,651 | 12,711 | 11,595 | ||||||||||
Third-party real estate services | 25,274 | 20,754 | 21,189 | 22,609 | 21,557 | ||||||||||
Share-based compensation related to Formation Transaction and special equity awards | 9,118 | 8,387 | 9,097 | 9,428 | 14,806 | ||||||||||
Transaction and other costs | 15,572 | 4,126 | 3,787 | 4,221 | 12,566 | ||||||||||
Interest expense | 18,184 | 18,979 | 18,027 | 19,257 | 14,328 | ||||||||||
Loss on extinguishment of debt | 617 | 79 | 4,457 | — | 12 | ||||||||||
Reduction of gain on bargain purchase | — | — | 7,606 | — | 3,395 | ||||||||||
Income tax expense (benefit) | 698 | (841 | ) | 313 | (908 | ) | (9,595 | ) | |||||||
Net (income) loss attributable to redeemable noncontrolling interests | 178 | 3,552 | 3,574 | (594 | ) | (2,331 | ) | ||||||||
Less: | |||||||||||||||
Third-party real estate services, including reimbursements | 26,421 | 23,788 | 24,160 | 24,330 | 24,355 | ||||||||||
Other income | 1,454 | 1,708 | 2,080 | 1,116 | 1,466 | ||||||||||
Income (loss) from unconsolidated real estate ventures, net | 23,991 | 13,484 | 3,836 | (1,902 | ) | (2,778 | ) | ||||||||
Interest and other income, net | 9,991 | 4,091 | 513 | 573 | 422 | ||||||||||
Gain on sale of real estate | 6,394 | 11,938 | 33,396 | 455 | — | ||||||||||
Net (income) loss attributable to noncontrolling interests | (106 | ) | — | 125 | 2 | 3 | |||||||||
Consolidated NOI | 78,274 | 81,875 | 85,282 | 87,120 | 78,380 | ||||||||||
Proportionate NOI attributable to unconsolidated real estate ventures | 8,847 | 9,722 | 9,011 | 9,207 | 8,644 | ||||||||||
Non-cash rent adjustments (1) | (6,691 | ) | (1,369 | ) | (1,237 | ) | (1,096 | ) | 887 | ||||||
Other adjustments (2) | 5,110 | 4,897 | 5,627 | 1,889 | 7,064 | ||||||||||
Total adjustments | 7,266 | 13,250 | 13,401 | 10,000 | 16,595 | ||||||||||
NOI | $ | 85,540 | $ | 95,125 | $ | 98,683 | $ | 97,120 | $ | 94,975 | |||||
Non-same store NOI (3) | 8,742 | 20,910 | 24,449 | 21,419 | 19,205 | ||||||||||
Same store NOI (4) | $ | 76,798 | $ | 74,215 | $ | 74,234 | $ | 75,701 | $ | 75,770 | |||||
(1) | Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization. |
(2) | Adjustment to include other income and payments associated with assumed lease liabilities related to operating properties, and exclude incidental income generated by development assets and commercial lease termination revenue. Includes property management fees of $4.1 million, $4.2 million, $4.0 million, $4.3 million and $4.2 million for the three months ended Q4 2018, Q3 2018, Q2 2018, Q1 2018 and Q4 2017. |
(3) | Includes the results for properties that were not owned, operated and in service for the entirety of both periods being compared and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. |
(4) | Includes the results of the properties that are owned, operated and in service for the entirety of both periods being compared except for properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. |
![]() | Page 57 |
APPENDIX - NOI RECONCILIATIONS (NON-GAAP) | DECEMBER 31, 2018 (Unaudited) |
![]() | Page 58 |
]3*I#G<+ZBMJ8[+2;/SJ;'RCO1MJ@*[+362K=M,"!H\4W9D
M\U9VTC(* 96\L4^UC@^U1_:ED:VW?O/)(#[>^W/&?K3]OY4A3%,5BJR@.=N<
M9XW=<4UDZU:V\CBF-'NR*JY-BKM]:?###)',9IC$RIF-0F[>V1\N>W&>?:GM
M&:8R^U%Q%5X0>1Q4+(>N*N[33&C%6I 4MM-9?SJR\?I3-IK2X$"J,\\TUEJ;
M;R::<].U4!#MIA7/-3\ 85.&C<@,".HST./>J*I+% "#6C\)_B,/ %]:W2M=6DUNYB,!3[39.A!)
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M*M1+]T5*M2S!BU-_%4-3?Q5DR&25(OWA4=2+]X5DS)DM.7I3:9;^0:1J FU QQI'"TJV5Z&"-NV[CY4F .H=2=PPM745X.,_
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MAVIB*S+[5$T?%6F4GZ4QEZ\59"TW*NWU%1E?QJZMN\D
E:! E>6V.OZG
MH4
%/
MA1KEEI5FMK%)H5XTC+EI)G/!>1C\SL>['FN0UGXZVDFEG3/!]LOB+4A:60:\
MR5L+-E5<^=)W(; V+D\]L5FZDIQM276U_N^X:BV]3:M_%&D^#;CQOJFLW\5A
M81^+0TDLO_7K'P .6/L 3R*\\\3:QXI^+GB3PG'H\5]X7\.76KS):7TKB*^E
M
=>)/'A\27=G:>%8/[1GBU9/)U&=66Q,C"
M7"[\9?"Y8[?SKO;#P#H=YX:EEUFQE\6^)X+N)KC4]0):WM5$L9(M;8?+&I!
M9F!8XZUO/]VH_P!?U^?D*$>:]SR_6O$VE^,/%6EO;/YEK?6T\<27*F'[0JR1
MY*@\XX)&>3C@51L[O5?A-X@B\B>2:U6?]^BL?*N8W02&-EZ$E6QS2_M Z0NH
M>)8'MY5MKJWA>6WN.A1@T0XQ6_\ !G6=+^)OAG5O"NO>5;^(WE:2VDE3&_9&
MD2A3G /^/ITX\5+DC*HU>-E=?-:_+^O+TL+%3481=I7=G\GH