Slide 1: Investor Presentation November 2021
Waterpark (rendering) Investor Presentation November 2021
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 Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, including in relation to COVID-19,
Slide 4: Disclosures: Amazon
DISCLOSURES AMAZON In November 2018, Amazon announced it had selected sites that we own in National Landing as the location of an additional headquarters. In connection with Amazon's new headquarters in National Landing, in February 2019 the Commonwealth of Virginia enacted an incentives bill, which
Slide 5: JBG SMITH at a Glance
JBG SMITH AT A GLANCE (1) Total Enterprise Value is based on the closing price per share of $29.61 as of September 30, 2021. 5 OPERATING PORTFOLIO COMMERCIAL SF MULTIFAMILY UNITS 11.3M 6,125 Q3 2021 ANNUALIZED NOI $324.0M LEASED IN-SERVICE PORTFOLIO 88.1% WEIGHTED AVERAGE LEASE TERM (Portfolio Wide)
Slide 6: Q3 2021 and Recent Updates
Q3 2021 AND RECENT UPDATES 6 AMAZON NEARLY DOUBLED WORKFORCE IN NATIONAL LANDING IN LESS THAN ONE YEAR Over 3K new hires to date + over 2.5K open positions Phase I of HQ2 13 stories above ground ADVANCED OUR SUSTAINABILITY GOALS VIRGINIA TECH BROKE GROUND ON $1B INNOVATION CAMPUS CLOSED ON THE SALE
Slide 7: Why JBG SMITH?
WHY JBG SMITH? JBG SMITH IS WELL-POSITIONED TO MAXIMIZE LONG-TERM NAV PER SHARE GROWTH 7 HIGH-GROWTH, AMENITY-RICH SUBMARKETS IN DC METRO MARKET • Our target markets are fast-growing and amenity-rich, representing approximately 18% of the DC metro market SIGNIFICANT DEMAND CATALYSTS IN NATIONAL LAND
Slide 8: Who We Are: Concentrated in High-Growth Submarkets
Other MD (off map) 6% Bethesda CBD 2% Reston (off map) 10% RB Corridor 4% DC Mature 6% National Landing 54% 20-MINUTE COMMUTE TO NATIONAL LANDING WHO WE ARE: CONCENTRATED IN HIGH-GROWTH SUBMARKETS OUR TARGET MARKETS ARE FAST-GROWING AND AMENITY-RICH, REPRESENTING APPROXIMATELY 18% OF THE DC METRO MA
Slide 9: DC Metro Market Fundamentals on Path to Recovery
23.6% 31.8% -- 5% 10% 15% 20% 25% 30% 35% Q3 20 Q3 21 Physical Occupancy DC Metro Office Physical Occupancy (Q3 2020 vs Q3 2021) (1.61) (0.56) (2.00) (1.50) (1.00) (0.50) -- Q2 21 Q3 21 Quarterly Net Absorption (SF in M) DC Metro Office Net Absorption (Q2 2021 vs Q3 2021) 92.0% 95.7% 90.0% 91.0% 92.
Slide 10: Demand Catalysts in National Landing: Amazon HQ2 and Virginia Tech
DEMAND CATALYSTS IN NATIONAL LANDING: AMAZON HQ2 AND VIRGINIA TECH AMAZON HIRING INCENTIVES 38K JOBS EXPECTED INCREASE IN DAYTIME POPULATION 70% EXPECTED TOTAL PUBLIC AND PRIVATE INVESTMENT $12B JBGS DEVELOPMENT PIPELINE 7.3M SF 10 AMAZON HQ2 JBGS OPERATING JBGS DEVELOPMENT PIPELINE INFRASTRUCTURE/E
Slide 11: Demand Catalysts in National Landing: Anticipated Growth Timeline
DEMAND CATALYSTS IN NATIONAL LANDING: ANTICIPATED GROWTH TIMELINE POTENTIAL TO START UP TO 2,535 NEW MULTIFAMILY UNITS OVER THE NEXT THREE YEARS TO MEET MARKET DEMAND (1) Dates reflect JBG SMITH’s estimate of third-party investment and JBG SMITH’s actual and expected investment in National Landing.
Slide 12: Demand Catalysts in National Landing: Seattle Case Study
DEMAND CATALYSTS IN NATIONAL LANDING: SEATTLE CASE STUDY NATIONAL LANDING POISED TO BENEFIT FROM DRAMATIC OFFICE AND MULTIFAMILY RENT GROWTH, SIMILAR TO SOUTH LAKE UNION Note: Reflects data from Q4 2010 to Q1 2020. (1) Source: JLL; reflects market performance in South Lake Union. (2) Average direct
Slide 13: Demand Catalysts: Amazon's Potential Impact in National Landing
~6M SF of Amazon owned / leased space(1) + 4M+ SF of estimated follow- on tech demand(2) x 20% of employees walk or bike to work(3) = 7,600 new residents vs. ~3,350 units in JBGS Development Pipeline(4) Average wage of $162K(5) x Affordable rent of 25% of pre- tax income = Affordable rent of $3,375
Slide 14: Demand Catalysts: Virginia Tech Innovation Campus
DEMAND CATALYSTS IN NATIONAL LANDING: VIRGINIA TECH INNOVATION CAMPUS FIRST VIRTUAL CLASSES 2020 EXPECTED PHASE I OCCUPANCY 2024 ANTICIPATED VIRGINIA TECH INVESTMENT AT BUILDOUT $1B VIRGINIA TECH PLANNED FOOTPRINT 675K SF EXPECTED ANNUAL STEM MASTER'S DEGREES 750 14 2 VIRGINIA TECH BROKE GROUND ON T
Slide 15: Substantial Growth Opportunity: Operating Portfolio
SUBSTANTIAL GROWTH OPPORTUNITY: OPERATING PORTFOLIO EXISTING OPERATING PORTFOLIO POISED TO BENEFIT FROM NATIONAL LANDING GROWTH CATALYSTS 15 MD 7% DC 23% Other VA 14% National Landing 56% National Landing 56% Commercial 76% Multifamily 24% Q3 2021 NOI BY REGION Q3 2021 NOI BY USE 3 Q3 OPERATING PORT
Slide 16: Substantial Growth Opportunity: Newly Developed Assets in Lease-Up
SUBSTANTIAL GROWTH OPPORTUNITY: NEWLY DEVELOPED ASSETS IN LEASE-UP INCREMENTAL NOI OF $27M ANTICIPATED BY YEAR END 2022, DRIVEN BY EXPECTED STABILIZATION OF 7 NEWLY DEVELOPED ASSETS 16 MULTIFAMILY WEIGHTED AVG. % LEASED: 79.9% West Half 900 and 901 W Street The Wren 8001 Woodmont SUBMARKET: Ballpark
Slide 17: Substantial Growth Opportunity: Acquisition of The Batley
SUBSTANTIAL GROWTH OPPORTUNITY: ACQUISITION OF THE BATLEY IN DC’S UNION MARKET 17 MULTIFAMILY UNITS PURCHASE PRICE ESTIMATED CLOSING ESTIMATED STABILIZED NOI OCCUPANCY (Q3 2021) 432 $205M Q4 2021 $8-$8.5M 90.7% 3 THE BATLEY IS ANTICIPATED TO BE THE REPLACEMENT PROPERTY IN A LIKE-KIND EXCHANGE FOR TH
Slide 18: Extensive Development Pipeline: 1900 Crystal Drive
EXTENSIVE DEVELOPMENT PIPELINE: 1900 CRYSTAL DRIVE (UNDER-CONSTRUCTION) 18 MULTIFAMILY UNITS IN TWO BUILDINGS NEW AMENITY RETAIL ESTIMATED INCREMENTAL INVESTMENT ESTIMATED STABILIZED NOI ESTIMATED INITIAL COMPLETION DATE 808 38K+ SF $320M $23M 1H 2024 4
Slide 19: Extensive Development Pipeline
EXTENSIVE DEVELOPMENT PIPELINE EXTENSIVE 14.6M SF DEVELOPMENT PIPELINE — 73% MULTIFAMILY 19 IN ADDITION TO DEVELOPMENT, WE MAY UNLOCK VALUE THROUGH OPPORTUNISTIC ASSET SALES, GROUND LEASES, AND RECAPITALIZATIONS DEVELOPMENT PIPELINE COMPOSITION HOW ARE WE HARVESTING VALUE? 5.1M SF Near-Term Developm
Slide 20: Proven Capital Allocator: Shifting Portfolio Mix Opportunistically
PROVEN CAPITAL ALLOCATOR: SHIFTING PORTFOLIO MIX OPPORTUNISTICALLY SHIFTING PORTFOLIO TO MAJORITY MULTIFAMILY WITH REMAINING OFFICE PORTFOLIO CONCENTRATED IN NATIONAL LANDING 20 Sell or recapitalize an additional $1.4B of non-core assets, including plans to pursue recycling transactions of $1B by ye
Slide 21: Proven Capital Allocator: Robust Balance Sheet
PROVEN CAPITAL ALLOCATOR: ROBUST BALANCE SHEET $1.7B OF LIQUIDITY TO CAPITALIZE ON INVESTMENT OPPORTUNITIES (1) Total Enterprise Value is based on closing price per share of $29.61 as of September 30, 2021. 21 DEBT MATURITY SCHEDULE Weighted Avg. Cost of Debt: 3.1% Weighted Avg. Debt Maturity: 4.0 y
Slide 22: Appendix
APPENDIX
Slide 23: JBG SMITH's Mission Critical GSA Tenancy
JBG SMITH’S MISSION CRITICAL GSA TENANCY ANTICIPATE GSA TENANCY TO REMAIN LONG-TERM OFFICE USERS GIVEN THE CRITICAL NATURE OF WORK THAT CANNOT BE COMPLETED REMOTELY 23 Q3 TENANT CONCENTRATION (based on annualized rent) GSA TENANCY BREAKDOWN (in Long-Term Hold portfolio) 84% of GSA tenancy in Long-Te
Slide 24: Definitions
DEFINITIONS DEVELOPMENT PIPELINE "Development Pipeline" refers to the Near-Term Development and Future Development Pipelines. EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA"), EBITDA FOR REAL ESTATE ("EBITDAre") AND "ADJUSTED EBITDA" “EBITDA“, "EBITDAre" and "Adjusted EBITDA
Slide 25: Definitions: Formation Transaction
DEFINITIONS FORMATION TRANSACTION "Formation Transaction" refers collectively to the spin-off on July 17, 2017 of substantially all of the assets and liabilities of Vornado Realty Trust's Washington, DC segment, which operated as Vornado / Charles E. Smith, and the acquisition of the management busi
Slide 26: Definitions: NOI
DEFINITIONS NET OPERATING INCOME ("NOI"), "ANNUALIZED NOI", "ESTIMATED STABILIZED NOI" AND "PROJECTED NOI YIELD" Net Operating Income ("NOI"), "Annualized NOI", "Estimated Stabilized NOI" and "Projected NOI Yield" are non-GAAP financial measures management uses to assess a segment's performance. The
Slide 27: Definitions: Non-Same Store
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 September 30, 2021, and is calculated as total rentable square feet less rentable square feet available for lease divided by t
Slide 28: 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”). (1) Related to decreases in the value of the underlying assets (2) Includes demolition costs, integration and severance costs, pursu
Slide 29: 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 exclu
Slide 30: JBG SMITH
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