Jbg Smith Properties · NYSE:JBGS
Jbg Smith Properties — Investor Day (May 2024)
82 slides from Jbg Smith Properties's investor day presentation, May 15, 2024
Slide 1: Investor Day May 2024
INVESTOR DAY MAY 2024 1900 CRYSTAL DRIVE, THE GRACE LOBBY
Slide 2: Disclosures: Forward-Looking Statements
DISCLOSURES FORWARD-LOOKING STATEMENTS Certain statements contained herein may constitute “forward-looking statements” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are
Slide 3: Disclosures: Pro Rata Information
DISCLOSURES PRO RATA INFORMATION We present certain financial information and metrics in this Investor Presentation "at JBG SMITH Share," which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, "real estate ventures") as applied to th
Slide 4: Table of Contents
TABLE OF CONTENTS 4 OVERVIEW & STRATEGY CAPITAL ALLOCATION BALANCE SHEET & COMPONENTS OF NOI CLOSING REMARKS NATIONAL LANDING 1 2 3 4 5 7 APPENDIX OPERATING PORTFOLIO HIGHLIGHTS 6
Slide 5: Speakers
SPEAKERS 5 Moina Banerjee Chief Financial Officer George Xanders Chief Investment Officer David Ritchey Chief Commercial Officer Evan Regan-Levine Chief Strategy Officer Matt Kelly Chief Executive Officer Michelle Tierce EVP, Asset Management
Slide 6: 6
6
Slide 7: Overview & Strategy
OVERVIEW & STRATEGY
Slide 8: Strategy
STRATEGY INVESTED IN THE BEST LOCATED SUBMARKETS IN THE DC REGION WHERE WE CAN LEVERAGE OUR SCALE AND PLACEMAKING EXPERTISE TO CREATE VIBRANT NEIGHBORHOODS 8 Concentrated in highly amenitized, Metro-served submarkets in the DC metro area Investment at scale in these neighborhoods allows us to levera
Slide 9: Maximizing Long-Term NAV Per Share
MAXIMIZING LONG-TERM NAV PER SHARE TRANSITIONING TO MAJORITY MULTIFAMILY AND CONCENTRATING OFFICE IN NATIONAL LANDING (1) Includes operating portfolio, under-construction assets, and development pipeline 9 3 Proven capital allocator with robust balance sheet 2 ~75% of the portfolio(1) is concentrate
Slide 10: Where We've Been
WHERE WE’VE BEEN SOLD 45% OF ASSETS HELD AT INCEPTION ALLOCATED 67% OF RECYCLED CAPITAL TO MULTIFAMILY 10 62% Multifamily 15 Assets 4.5M SF $2.4B Est. Total Investment 70% Office 55 Assets 13.1M SF $3.4B of Value 86% Multifamily 8 Assets 2.6M SF $0.6B of Value Dispositions Development Acquisitions U
Slide 11: Where We Are
WHERE WE ARE Note: As of March 31, 2024 11 OPERATING PORTFOLIO DEVELOPMENT PIPELINE 1900 Crystal Drive – Reva Lobby Rendering MULTIFAMILY COMMERCIAL UNDER-CONSTRUCTION 6,318 UNITS 7.2M SF 1,583 UNITS Q1 2024 ANNUALIZED NOI DEVELOPMENT PIPELINE $307M 7,715 UNITS 1.6M SF MULTIFAMILY COMMERCIAL OPERATI
Slide 12: Where We're Headed
WHERE WE’RE HEADED MAJORITY MULTIFAMILY, STABILIZED OFFICE IN NATIONAL LANDING, AND ACTIVATED DEVELOPMENT PIPELINE 12 INCEPTION (2017) TODAY(1) PRO FORMA(2) PORTFOLIO COMPOSITION 17.9M SF DEVELOPMENT PIPELINE 9.3M SF DEVELOPMENT PIPELINE 9.3M SF DEVELOPMENT PIPELINE Other Office 7% National Landing
Slide 13: Future Portfolio
FUTURE PORTFOLIO NATIONAL LANDING-FOCUSED, MAJORITY MUTLIFAMILY COMPANY CONCENTRATED IN METRO-SERVED, HIGHLY AMENITIZED, HIGH BARRIER-TO-ENTRY SUBMARKETS Note: Based on square feet; excludes the square footage of the commercial assets where we believe the outstanding principal balance of the mortgag
Slide 14: 2023 Accomplishments
2023 ACCOMPLISHMENTS 14 Completed the 2.1 Million Square Foot Metropolitan Park, the First Phase of Amazon’s New Headquarters Doubled Crystal Drive Retail and Delivered Two Critical Placemaking Projects in National Landing Completed $444 Million of Dispositions at Attractive Valuations Addre
Slide 15: Awards and Accolades
AWARDS AND ACCOLADES 15 Nareit’s Diversified Leader in the Light Award (2021, 2023) Five-star rated (2020-2023) Regional Sector Leader (2023) – Development Pipeline Fitwel Viral Response Certification – Entity and Asset Levels Fitwel Champion Achieved Green Lease Leader’s Gold Award (202
Slide 16: National Landing Scale and Reach
NATIONAL LANDING SCALE AND REACH MASSIVE SCALE, CONTROL, AND DEMAND DRIVERS (1) Includes operating and under-construction assets; excludes 2221 S. Clark Street – Residential as it is operated as a short-term rental property (2) Excludes assets that we plan to take out of service: 2100 and 2200 Cryst
Slide 17: National Landing Demand Catalysts
NATIONAL LANDING DEMAND CATALYSTS POWERHOUSE CATALYSTS DRIVE DEMAND FOR THE SUBMARKET 17 Placemaking expertise maximizes value of real estate with retail interventions and physical and digital infrastructure improvements Amazon is incentivized to bring 38K new jobs to National Landing, which should
Slide 18: Placemaking: Retail Interventions
PLACEMAKING: RETAIL INTERVENTIONS SIGNIFICANT RETAIL INTERVENTIONS ARE SUBSTANTIALLY COMPLETE, BRINGING A NEW AMENITY BASE TO ATTRACT WORLD-CLASS TALENT 18 Transformative Retail 90% Committed 26 Retailers Open by 2024+ 3x Street-Level Retail 29 Open 74% Women- or Minority-Owned 55 New Retailers Good
Slide 19: Placemaking: Physical Infrastructure
PLACEMAKING: PHYSICAL INFRASTRUCTURE NEARLY $6B OF PUBLIC SPENDING IN NATIONAL LANDING INCLUSIVE OF TRANSFORMATIVE INFRASTRUCTURE INVESTMENTS Note: Representative sample of public infrastructure projects; all photos are renderings 19 Route 1 At Grade Estimated Delivery: 2027 Estimated Delivery: 2028
Slide 20: Placemaking: Digital Infrastructure
PLACEMAKING: DIGITAL INFRASTRUCTURE FIRST 5G CITY AT SCALE IN U.S. POWERS INNOVATIVE TENANCY Infrastructure Layer: Benefit: Ubiquitous Wi-Fi Allows for a “sofa-to-sidewalk” seamless Wi-Fi experience for residents, office workers, and visitors across the neighborhood Private 5G Ability to stand up se
Slide 21: Amazon: Incentivized to Bring 38K New Jobs
AMAZON: INCENTIVIZED TO BRING 38K NEW JOBS AMAZON'S INCENTIVE TO BRING 38K NEW JOBS TO NATIONAL LANDING IS DRIVING MULTIFAMILY AND OFFICE DEMAND (1) Average annual salary for each calendar year calculated based on $150,000 in 2019 escalated 1.5% per year (2) Washington Post article from April 16, 20
Slide 22: Virginia Tech: $1 Billion Innovation Campus
VIRGINIA TECH: $1 BILLION INNOVATION CAMPUS Sources: CoStar and McKinsey reports 22 Virginia Tech Innovation Campus Phase 1 expected to deliver in 2025 750 planned Master's degrees and 200 planned PhD students in STEM annually, supplying knowledge workers to National Landing Stated focus on pr
Slide 23: Pentagon: Defense Spending
PENTAGON: DEFENSE SPENDING Sources: U.S. Department of Defense, NATO 23 $817B FY 2023 DoD Budget Approved by Congress $841B FY 2024 DoD Budget Sent to Congress Spending by NATO Allies Grows at Fastest Pace in a Decade U.S. DEFENSE SPENDING APPROACHES $1 TRILLION WHILE NATO AND ALLIED SPENDING JUMPED
Slide 24: Pentagon: Defense Contractors
PENTAGON: DEFENSE CONTRACTORS BECAUSE OF ITS PROXIMITY TO THE PENTAGON, NATIONAL LANDING APPEALS TO COMPANIES BENEFITING FROM U.S. AND NATO DEFENSE SPENDING Source: Defense and Security Monitor 24 7 of the 10 Largest Defense Contractors Have a Presence in National Landing FY 2023 Top 10 U.S. Defense
Slide 25: Pentagon: Defense Contractors
PENTAGON: DEFENSE CONTRACTORS DEFENSE AND TECH TENANTS COMPRISE ~60% OF OUR NATIONAL LANDING TENANCY AND ~86% OF OUR LEASING ACTIVITY OVER THE PAST 24 MONTHS 25 PENTAGON <1 MILE <1 MILE
Slide 26: National Landing: Intersection of Defense and Technology
NATIONAL LANDING: THE INTERSECTION OF DEFENSE AND TECHNOLOGY IS A GROWTH NEXUS PRIVATE VC INVESTMENT IN DEFENSE TECHNOLOGY IS GROWING RAPIDLY, WITH MANY RECIPIENTS OF THOSE DOLLARS LOCATING NEAR THE PENTAGON (CUSTOMER) AND PRIME CONTRACTORS (PARTNERS) Sources: McKinsey, Semafor, Naval Technology, Pi
Slide 27: National Landing: Growing Defense Technology Ecosystem
NATIONAL LANDING: A GROWING DEFENSE TECHNOLOGY ECOSYSTEM NATIONAL LANDING TENANTS MAKE UP THE REQUISITE ELEMENTS OF A THRIVING DEFENSE TECHNOLOGY ECOSYSTEM 27 EDUCATIONAL INSTITUTIONS SUPPORT SERVICES INCUBATORS AND VENTURE CAPITAL GROWTH COMPANIES DEFENSE PRIME CONTRACTORS ESTABLISHED TECH COMPANIE
Slide 28: Operating Portfolio Highlights
OPERATING PORTFOLIO HIGHLIGHTS
Slide 29: Operating Portfolio Highlights: Multifamily
OPERATING PORTFOLIO HIGHLIGHTS: MULTIFAMILY LOCATED IN TRANSIT-ORIENTED, MIXED-USE, AMENITY-RICH SUBMARKETS WHERE WE HAVE SIGNIFICANT SCALE Note: As of Q1 2024, includes signed but not yet commenced lease revenue and excludes NOI from sold or recapitalized assets; ground lease NOI is included with m
Slide 30: Operating Portfolio Highlights: Multifamily
OPERATING PORTFOLIO HIGHLIGHTS: MULTIFAMILY CONCENTRATED IN HIGHLY AMENITIZED, METRO-SERVED SUBMARKETS Note: Bubble sizes and weighted averages based on number of units; includes under-construction multifamily: 1900 Crystal Drive and 2000 / 2001 South Bell Street (1) Excludes under-construction mult
Slide 31: Multifamily: DC Metro vs. Sunbelt
MULTIFAMILY: DC METRO VS. SUNBELT DC RENT GROWTH OUTPACED SUNBELT OVER THE PAST YEAR, AND A LIMITED SUPPLY PIPELINE SHOULD LEAD TO ACCELERATED FUTURE RENT GROWTH Source: CoStar (1) Sunbelt consists of Atlanta, Austin, Charlotte, Dallas, Durham, Nashville, Orlando, Raleigh, and Tampa 31 Sunbelt(1) Su
Slide 32: Multifamily: National Landing vs. the DC Metro
MULTIFAMILY: NATIONAL LANDING VS. THE DC METRO NATIONAL LANDING BENEFITS FROM ROBUST AND GROWING DEMAND DRIVERS WHICH CONTRIBUTE TO PAST AND FUTURE OUTPERFORMANCE Source: CoStar 32 5.5% 2.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% National Landing DC Metro 1-Year CAGR (Q1 2023-Q1 2024) 94.2% 92.9% 88.0%
Slide 33: 1900 Crystal Drive: The Grace and Reva Case Study
1900 CRYSTAL DRIVE: THE GRACE AND REVA CASE STUDY LEASING PACE THROUGH APRIL REFLECTS HEALTHY DEMAND FOR NEW PRODUCT IN NATIONAL LANDING Note: April Percent Leased as of April 28, 2024; all photos are renderings 33 22 42 83 106 12 41 71 3% 7% 15% 22% 0% 5% 10% 15% 20% 25% 0 50 100 150 200 January Fe
Slide 34: Operating Portfolio Highlights: Office
OPERATING PORTFOLIO HIGHLIGHTS: OFFICE POISED TO BENEFIT FROM NATIONAL LANDING GROWTH CATALYSTS Note: As of Q1 2024, includes signed but not yet commenced lease revenue and excludes NOI from sold or recapitalized assets; ground lease NOI is included with multifamily 34 Total Size Wtd Avg Lease Term
Slide 35: National Landing Office Portfolio
(“OOS”)(1) NATIONAL LANDING OFFICE PORTFOLIO TAKING ~800K SF OUT OF SERVICE TO REDUCE OFFICE STOCK, CREATING A HEALTHIER, LONG-TERM OFFICE MARKET IN NATIONAL LANDING (1) As of March 31, 2024, our National Landing office portfolio totaled 6.1M SF, net of 0.4M SF already taken out of service; we plan
Slide 36: National Landing Lease Expirations
NATIONAL LANDING LEASE EXPIRATIONS AFTER ADJUSTING FOR KNOWN VACATES, DRIVEN BY AMAZON AND NON-DEFENSE GSA TENANTS, PORTFOLIO HAS MINIMAL LEASE ROLL OVER THE NEXT FIVE YEARS Note: 2024 includes month-to-month leases 36 31% 5% 6% 3% 9% 8% 38% 0% 10% 20% 30% 40% Vacant 2024 2025 2026 2027 2028 Thereaf
Slide 37: National Landing Leasing Activity and Physical Occupancy
NATIONAL LANDING LEASING ACTIVITY AND PHYSICAL OCCUPANCY ~86% OF LEASING ACTIVITY OVER THE PAST 24 MONTHS WAS WITH DEFENSE AND TECH TENANTS WHO HAVE BOTH RELOCATED TO AND EXPANDED WITHIN THE SUBMARKET AND FAVOR IN-PERSON WORK Source: Kastle Systems, March and April 2024 data Note: New demand and ren
Slide 38: Case Study: Special Competitive Studies Project
CASE STUDY: SPECIAL COMPETITIVE STUDIES PROJECT (“SCSP”) SCSP IDENTIFIED NATIONAL LANDING AS A STRATEGIC LOCATION WHERE IT CAN IMMERSE ITSELF IN A DEFENSE-TECH AND INNOVATION ECOSYSTEM Source: Special Competitive Studies Project 38 Non-profit founded in 2021, seeking to expand on the work of the N
Slide 39: Advancing Entitlements to Unlock Value in Development Pipeline
Total Est. Potential Development Density National Landing Density 100% Expected to be Entitled by Historical Cost at JBG SMITH Share 9.3M SF 7.2M SF 2025 $380M Development Pipeline Composition Development Pipeline Entitlement Status ADVANCING ENTITLEMENTS IS CRITICAL TO UNLOCKING VALUE IN DEVELOPMEN
Slide 40: Capital Allocation
+ * a | | “FP , 4 << | 2 CAPITAL ALLOCATION
Slide 41: Proven Capital Allocator
PROVEN CAPITAL ALLOCATOR RAISED $3.9B OF CAPITAL AT A 4.1% YIELD AND REINVESTED AN EQUAL AMOUNT AT A 6.8% YIELD, CREATING ~$8 PER SHARE OF NAV GROWTH Note: Statistics are since inception (1) Based on average repurchase price of share repurchase activity through March 31, 2024 41 $3.4B Assets sold or
Slide 42: Proven Capital Allocator: Sourcing Capital from Low-Growth Assets
Sold 55 assets for $3.4B through 43 transactions PROVEN CAPITAL ALLOCATOR STRONG TRACK RECORD OF SOURCING CAPITAL FROM LOW-GROWTH ASSETS Note: Statistics are since inception 42 $1.7 $1.0 $0.4 $0.2 $0.0B $1.0B $2.0B $3.0B $4.0B Ground Leases Land Sales Joint Ventures Asset Sales Dispositions Since 20
Slide 43: Office Dispositions
OFFICE DISPOSITIONS SINCE INCEPTION, SOLD $2.4B OF OFFICE ASSETS AT BLENDED 5.2% CAP RATE Note: Statistics are since inception 43 Suburban Commerce Executive $733M of Value $325 PSF 5.9% Cap Rate Central Business District Bowen Building $829M of Value $520 PSF 5.4% Cap Rate New Construction 4747 Bet
Slide 44: Land Dispositions
LAND DISPOSITIONS SINCE INCEPTION, SOLD $720M OF LAND AT A BLENDED $97 PSF Note: Statistics are since inception 44 Land Sale Ground Lease Joint Venture Pen Place Helix Rendering 1700 M Street Rendering 1900 N Street $435M of Value 5.6M SF $77 PSF $184M of Value 1.5M SF $122 PSF $101M of Value 0.3M S
Slide 45: Unlocking Value Through Development
UNLOCKING VALUE THROUGH DEVELOPMENT ACCELERATED TRANSITION TO MULTIFAMILY AND MONETIZED OFFICE DEVELOPMENT ASSETS AT A 30% PROFIT MARGIN Note: Statistics are since inception; for office development assets sold, profit margin represents sales price divided by Estimated Total Investment 45 Multifamily
Slide 46: 1,583 Multifamily Units Under Construction
1,583 MULTIFAMILY UNITS UNDER CONSTRUCTION Note: Percent Leased as of April 28, 2024 (1) Historical cost includes $22.6M of design costs, the majority of which were incurred prior to inception and are not related to the current planned development; these costs are excluded from the Weighted Average
Slide 47: Multifamily Acquisitions
MULTIFAMILY ACQUISITIONS ACQUIRED $547M OF MULTIFAMILY ASSETS, PRIMARILY FUNDED THROUGH $450M OF LIKE-KIND EXCHANGES Note: Statistics are since inception 47 Partner Buyouts Acquisitions The Wren Atlantic Plumbing 8001 Woodmont F1RST Residences The Batley Like-Kind Exchanges Three assets were acqui
Slide 48: Share Repurchases
SHARE REPURCHASES SINCE 2020, WE HAVE REDUCED OUR SHARE COUNT BY 49M SHARES, OR APPROXIMATELY 33% OF SHARES AND OP UNITS OUTSTANDING, AT AN AVERAGE PRICE OF $20.61 PER SHARE Note: Share repurchases through March 31, 2024; sell-side NAV per share in each year calculated using weighted average value o
Slide 49: Balance Sheet & Components of NOI
BALANCE SHEET & COMPONENTS OF NOI
Slide 50: Strong Balance Sheet to Fund Future Growth
STRONG BALANCE SHEET TO FUND FUTURE GROWTH SIGNIFICANT ACCESS TO MULTIPLE SOURCES OF CAPITAL LEVERAGE WILL FLUCTUATE DURING PERIODS OF ACTIVE DEVELOPMENT (1) Total Enterprise Value (“TEV”) is based on $16.05 closing share price as of March 29, 2024 and 104.8M fully diluted shares outstanding as of M
Slide 51: Debt Maturity Schedule
Office(2) DEBT MATURITY SCHEDULE WELL-STAGGERED DEBT MATURITY SCHEDULE WITH PRIMARILY NON-RECOURSE SECURED DEBT Note: Represents the maturity date based on execution of all by-right extension options (1) For floating rate loans with interest rate caps, the weighted average cap strike is 3.41% for co
Slide 52: Components of NOI
Known Vacates(2) Highly Levered Assets(3) Today(1) COMPONENTS OF NOI EXPECTED TENANT VACATES WILL NEGATIVELY IMPACT NOI, OFFSET BY THE STABILIZATION OF OUR OPERATING PORTFOLIO 52 $137 $44 $181 $172 -$45 -$32 $45 $140 $0M $50M $100M $150M $200M $250M $300M $350M Today Known Vacates Highly Levered Ass
Slide 53: Closing Remarks
CLOSING REMARKS _ ag
Slide 54: Hypothetical Valuation of Portfolio Components
Note: This is a hypothetical valuation of components of our portfolio based on certain assumptions; while we believe our assumptions to be reasonable, we can provide no assurance that such assumptions are accurate nor that our office portfolio is undervalued to the extent that our assumptions sugges
Slide 55: National Landing
+ 1 F , NATIONAL LAND
Slide 56: National Landing
NATIONAL LANDING aS sonata and (no Maem
Slide 57: National Landing Scale and Reach
NATIONAL LANDING SCALE AND REACH MASSIVE SCALE, CONTROL, AND DEMAND DRIVERS (1) Includes operating and under-construction assets; excludes 2221 S. Clark Street – Residential as it is operated as a short-term rental property (2) Excludes assets that we plan to take out of service: 2100 and 2200 Cryst
Slide 58: We've Transformed National Landing
WE’VE TRANSFORMED NATIONAL LANDING THROUGH PLACEMAKING AND DEVELOPMENT EFFORTS 58 At Inception National Landing 2017
Slide 59: We've Transformed National Landing
WE’VE TRANSFORMED NATIONAL LANDING THROUGH PLACEMAKING AND DEVELOPMENT EFFORTS 59 Transformation in Progress National Landing Rendering
Slide 60: We've Transformed National Landing
WE’VE TRANSFORMED NATIONAL LANDING THROUGH PLACEMAKING AND DEVELOPMENT EFFORTS 60 At Inception Transformed Central District Retail Water Park Central District Retail Water Park Surreal Surreal 1900 Crystal Drive 1900 Crystal Drive
Slide 61: We've Transformed National Landing
WE’VE TRANSFORMED NATIONAL LANDING THROUGH PLACEMAKING AND DEVELOPMENT EFFORTS 61 At Inception Transformed 1550 Crystal Drive Lobby 251 18th Street S. | 241 18th Metropolitan Park 1770 Crystal Drive Street S. Metropolitan Park 1550 Crystal Drive Lobby 1770 Crystal Drive 251 18th Street S. | 241 18th
Slide 62: Placemaking: Physical Infrastructure
PLACEMAKING: PHYSICAL INFRASTRUCTURE NEARLY $6B OF PUBLIC SPENDING IN NATIONAL LANDING INCLUSIVE OF TRANSFORMATIVE INFRASTRUCTURE INVESTMENTS Note: Representative sample of public infrastructure projects; all photos are renderings 62 Route 1 At Grade Estimated Delivery: 2027 Estimated Delivery: 2028
Slide 63: National Landing Multifamily
63 NATIONAL LANDING MULTIFAMILY OPERATING, UNDER CONSTRUCTION & DEVELOPMENT PIPELINE
Slide 64: National Landing Multifamily
NATIONAL LANDING MULTIFAMILY 64 Multifamily Portfolio National Landing 56% DC & MD 44% Representative Assets 2000 South Bell Street – Valen Rendering 1900 Crystal Drive – The Grace 1900 Crystal Drive – Reva 2001 South Bell Street – The Zoe Rendering 220 20th The Bartlett Street 2 3 5 6 7 8 By Unit C
Slide 65: National Landing Multifamily Development Pipeline
NATIONAL LANDING MULTIFAMILY DEVELOPMENT PIPELINE Note: All photos are renderings 65 Estimated Number of Units: 3,590 RiverHouse Land North 2200 Crystal Drive (Conversion Opportunity) 223 23rd Street 1415 S. Eads Street (Americana) 2250 Crystal Drive 2525 Crystal Drive 9 10 12 11 13 14
Slide 66: Dramatically Repositioned National Landing
DRAMATICALLY REPOSITIONED NATIONAL LANDING NATIONAL LANDING POSITIONED TO BE A PREMIER LIVE-WORK-PLAY DESTINATION 66 1900 Crystal Drive Woonerf Rendering 55 new retailers, 90% committed, tripling the number of street-level retailers 1,583 units delivering over the next year, balancing the neighb
Slide 67: National Landing Office
67 NATIONAL LANDING OFFICE OPERATING & DEVELOPMENT PIPELINE
Slide 68: National Landing Office Portfolio
(“OOS”)(1) NATIONAL LANDING OFFICE PORTFOLIO TAKING ~800K SF OUT OF SERVICE TO REDUCE OFFICE STOCK, CREATING A HEALTHIER, LONG-TERM OFFICE MARKET IN NATIONAL LANDING (1) As of March 31, 2024, our National Landing office portfolio totaled 6.1M SF, net of 0.4M SF already taken out of service; we plan
Slide 69: National Landing Office Operating – Primary
NATIONAL LANDING OFFICE OPERATING – PRIMARY Note: All percent leased and WALT statistics are calculated after removing tenants known or expected to be vacating in 2024 and 2025 69 Strategy Concentrate leasing capital in fewer assets where incremental investment to stabilize is highest ROI Focus
Slide 70: National Landing Office Operating – Secondary
NATIONAL LANDING OFFICE OPERATING – SECONDARY Note: All percent leased and WALT statistics are calculated after removing tenants known or expected to be vacating in 2024 and 2025 70 Strategy Pursue large tenants seeking full or nearly full building leasing opportunities In parallel, defer invest
Slide 71: National Landing Office Development Pipeline
NATIONAL LANDING OFFICE DEVELOPMENT PIPELINE Note: All photos are renderings 71 Strategy Notwithstanding market softness, trophy vacancy in the region is ~10%, driving the most quality selective tenants to explore new construction options Whether through lease or sale, we offer two of the fastes
Slide 72: National Landing Other Use Development Pipeline
72 NATIONAL LANDING OTHER USE DEVELOPMENT PIPELINE
Slide 73: National Landing Other Use Development Pipeline
NATIONAL LANDING OTHER USE DEVELOPMENT PIPELINE Note: All photos are renderings 73 Strategy Pursue land sales, ground leases, or ventures with third-party developers Accelerates monetization of land bank with uses that don’t compete with our multifamily and office assets Introduces complimenta
Slide 74: Appendix
APPENDIX
Slide 75: 2011 Crystal Drive Repositioning
2011 CRYSTAL DRIVE REPOSITIONING 75 Our research focused on addressing the needs of tenants in the market who were downsizing their footprint but seeking to upgrade their employee experience to support return-to-work. We learned that flexible conferencing including the ability to hold large ~300
Slide 76: Definitions
DEFINITIONS ANNUALIZED RENT "Annualized Rent" is defined as (i) for multifamily assets, or the multifamily component of a mixed-use asset, the in-place monthly base rent before Free Rent as of March 31, 2024, multiplied by 12, and (ii) for commercial assets, or the retail component of a mixed-use as
Slide 77: Definitions
DEFINITIONS ESTIMATED POTENTIAL DEVELOPMENT DENSITY "Estimated Potential Development Density" reflects management's estimate of developable gross square feet based on our current business plans with respect to real estate owned or controlled as of March 31, 2024. Our current business plans may conte
Slide 78: Definitions
DEFINITIONS MONTHLY RENT PER UNIT "Monthly Rent Per Unit" represents multifamily rent for the month ended March 31, 2024 divided by occupied units; retail rent is excluded from this metric. NET DEBT "Net Debt" is a non-GAAP financial measurement. Net Debt represents our total consolidated and uncons
Slide 79: Definitions
DEFINITIONS NON-SAME STORE "Non-Same Store" refers to all operating assets excluded from the Same Store pool. PERCENT LEASED "Percent Leased" is based on leases signed as of March 31, 2024, and is calculated as total rentable square feet less rentable square feet available for lease divided by total
Slide 80: EBITDA, EBITDAre and Adjusted EBITDA (Non-GAAP)
EBITDA, EBITDAre AND ADJUSTED EBITDA (NON-GAAP) (UNAUDITED) Note: All EBITDA measures as shown above are attributable to common limited partnership units ("OP Units") and certain fully vested incentive equity awards that may be convertible into OP Units (1) Includes pursuit costs related to complete
Slide 81: NOI Reconciliations (Non-GAAP)
NOI RECONCILIATIONS (NON-GAAP) (UNAUDITED) (1) Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization (2) Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclud
Slide 82: JBG SMITH
o) JBG SMITH