Jbg Smith Properties · NYSE:JBGS
Jbg Smith Properties — Investor Presentation (May 2021)
33 slides from Jbg Smith Properties's investor presentation, May 4, 2021
Slide 1: Investor Presentation May 2021
1900 Crystal Drive Rendering (North Tower in Foreground) INVESTOR PRESENTATION MAY 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 PRO RATA INFORMATION We present certain financial information and metrics in this release “at JBG SMITH Share,” which refers to our ownership percentage of consolidated and unconsolidated assets and liabilities owned through real estate ventures (collectively, “real estate ventures”) as
Slide 4: Disclosures
DISCLOSURES an increase in the approved development density on the site. In February 2021, Amazon submitted for entitlement approvals the second phase of its new headquarters at Pen Place (2.8 million square feet of office, along with an iconic structure, known as The Helix). The sale of Pen Place t
Slide 5: Q1 2021 and Recent Updates
Q1 2021 AND RECENT UPDATES 5 2M+ SF development opportunity in Potomac Yard (JBG SMITH's development rights increased by over 285K SF at share) Commenced construction at 1900 Crystal Drive (808 units + 38K SF of retail) UNDER-CONSTRUCTION PORTFOLIO STRATEGIC JOINT VENTURE IN NATIONAL LANDING Deliver
Slide 6: Why JBG SMITH?
6 WHY JBG SMITH? JBG SMITH IS WELL POSITIONED TO MAXIMIZE LONG-TERM NAV PER SHARE GROWTH • Target markets represent approximately 18% of the DC metro market • Similar to the last four recessions, employment in the DC metro area during the COVID-19 pandemic has been more stable than in other gatewa
Slide 7: Who We Are: Concentrated in High-Growth Submarkets
WHO WE ARE: CONCENTRATED IN HIGH-GROWTH SUBMARKETS 7 MD VA Washington, DC 20 MINUTE COMMUTE TO NATIONAL LANDING Bethesda CBD Reston (O Map) DC Mature RB Corridor National Landing Amazon HQ2 Virginia Tech Innovation Campus Downtown Silver Spring Other MD (O Map) DC Emerging Note: Size of sphere bas
Slide 8: Recession Resilience vs. Other Gateway Markets
RECESSION RESILIENCE VS. OTHER GATEWAY MARKETS 8 -5.0% -4.0% -3.0% -2.0% -1.0% -10.0% -9.0% -8.0% -7.0% -6.0% 0.0% 1.0% Gateway Markets(3) DC Employment Growth (%) 2008-2009 Great Recession 2001-2002 Tech Crash 1990-1992 Recession 2020 COVID-19(2) FROM 2019-2020, FEWER JOB LOSSES IN DC THAN OTHER GA
Slide 9: Migration Trend vs. Other Gateway Markets
MIGRATION TREND VS. OTHER GATEWAY MARKETS 9 New York San Francisco Boston DC(2) Increase in Change of Address Requests from the Urban Core (%) 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% OUT-OF-CITY MIGRATION INCREASE (2019-2020)(1) 21.7% 105.4% Source: Goldman Sachs, USPS (1) Moves are defined as
Slide 10: Multifamily Recession Resilience vs. Other Gateway Markets
MULTIFAMILY RECESSION RESILIENCE VS. OTHER GATEWAY MARKETS 10 MORE MODEST DECLINES IN DC ASKING RENT THAN OTHER GATEWAYS, WHILE MAINTAINING OCCUPANCY CONSISTENT WITH PRE-PANDEMIC LEVELS (Q120) Rent Growth (%) Occupancy Change (%) -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% -12.0% 2.0% -10.0% -8.0% -6.0% -4.
Slide 11: Office Recession Resilience vs. Other Gateway Markets
OFFICE RECESSION RESILIENCE VS. OTHER GATEWAY MARKETS 11 Rent Growth (%) Occupancy Change (%) -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% Gateway Markets(1) DC Rent Growth (%) Occupancy Change (%) -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% -10.0% -8.0% -6.0% -4.0%
Slide 12: Demand Catalysts in National Landing: Amazon HQ2 and Virginia Tech
12 DEMAND CATALYSTS IN NATIONAL LANDING: AMAZON HQ2 AND VIRGINIA TECH AMAZON HIRING INCENTIVES EXPECTED INCREASE IN DAYTIME POPULATION TOTAL PUBLIC AND PRIVATE INVESTMENT JBGS DEVELOPMENT PIPELINE 38K JOBS 70% $12B 7.2M SF WASHINGTON HOUSING CONSERVANCY + AMAZON New Metro Entrance New Metro Station
Slide 13: Demand Catalysts in National Landing: Growth Timeline
DEMAND CATALYSTS IN NATIONAL LANDING: GROWTH TIMELINE 13 AMAZON JOB GROWTH AND MAJOR MILESTONES(1) Amazon Hiring Ramp (3) Year End 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 2019 2020 2018 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 POTENTIAL TO START UP TO 2,
Slide 14: Demand Catalysts in National Landing: Seattle Case Study
DEMAND CATALYSTS IN NATIONAL LANDING: SEATTLE CASE STUDY 14 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. Rent growth is calculated quarterly then annualized. (1) Source: JLL; reflects mar
Slide 15: Demand Catalysts in National Landing: Virginia Tech Innovation Campus
15 DEMAND CATALYSTS IN NATIONAL LANDING: VIRGINIA TECH INNOVATION CAMPUS FIRST VIRTUAL CLASSES EXPECTED PHASE I OCCUPANCY ANTICIPATED VIRGINIA TECH INVESTMENT AT BUILDOUT INITIAL SF DEDICATED TO VIRGINIA TECH EXPECTED ANNUAL STEM MASTER'S DEGREES 2020 2024 $1B 675K SF 750 Potomac Yard Landbay G and
Slide 16: Demand Catalysts in National Landing: Smart City Initiative
DEMAND CATALYSTS IN NATIONAL LANDING: SMART CITY INITIATIVE 16 ACCELERATE 5G ROLLOUT AND OTHER CONNECTIVITY ENHANCEMENTS WITH BEST-IN-CLASS TECHNICAL PARTNERS
Slide 17: Substantial Growth Opportunity: Operating Portfolio
SUBSTANTIAL GROWTH OPPORTUNITY: OPERATING PORTFOLIO 17 EXISTING OPERATING PORTFOLIO POISED TO BENEFIT FROM NATIONAL LANDING GROWTH CATALYSTS OPERATING PORTFOLIO HIGHLIGHTS commercial portfolio 11.4M SF multifamily portfolio 5,999 units weighted average lease term (5.0 years in National Landing) 5.9
Slide 18: Substantial Growth Opportunity: Newly Developed Assets in Lease-Up
SUBSTANTIAL GROWTH OPPORTUNITY: NEWLY DEVELOPED ASSETS IN LEASE-UP 18 (1) Excludes 7900 Wisconsin Avenue. (2) To be rebranded as 8001 Woodmont. SUBMARKET: COMPLETION: OWNERSHIP: LEASED %: 7900 Wisconsin Avenue(2) Bethesda CBD Q1 2021 50.0% N/A 900 and 901 W Street U Street/ Shaw Q4 2019 100% 60.1% 1
Slide 19: Substantial Growth Opportunity: 1900 Crystal Drive
19 SUBSTANTIAL GROWTH OPPORTUNITY: 1900 CRYSTAL DRIVE MULTIFAMILY UNITS IN TWO BUILDINGS NEW AMENITY RETAIL ESTIMATED INCREMENTAL INVESTMENT ESTIMATED STABILIZED NOI ESTIMATED INITIAL COMPLETION DATE 808 38K+ SF $346M $23M 1H 2024
Slide 20: Substantial Growth Opportunity: Joint Venture in National Landing
20 SUBSTANTIAL GROWTH OPPORTUNITY: JOINT VENTURE IN NATIONAL LANDING AS A RESULT OF THIS VENTURE, WE CONTROL 2M+ SF OF MIXED-USE DEVELOPMENT ADJACENT TO VIRGINA TECH'S INNOVATION CAMPUS Potomac Yard Landbay G (JBGS Contribution) Potomac River REAGAN NATIONAL AIRPORT New Metro Station ARLINGTON ALEXA
Slide 21: Substantial Growth Opportunity: Development Pipeline
SUBSTANTIAL GROWTH OPPORTUNITY: DEVELOPMENT PIPELINE 21 EXTENSIVE 15M SF DEVELOPMENT PIPELINE — 73% MULTIFAMILY IN ADDITION TO DEVELOPMENT, WE MAY UNLOCK VALUE THROUGH OPPORTUNISTIC ASSET SALES, GROUND LEASES, AND RECAPITALIZATIONS O ce 27% Near-Term Development 5.0M SF Multifamily 73% DEVELOPMENT P
Slide 22: Substantial Growth Opportunity: Shifting Portfolio Mix
SUBSTANTIAL GROWTH OPPORTUNITY: SHIFTING PORTFOLIO MIX 22 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 July 2017 Q3 2020 Square Footage Operating Commercial Operating Multifamily OPPORTUNISTICALLY SHIFT PORTFOLIO TO MAJORITY MULTIFAMILY OVER TIME 3
Slide 23: Capital Allocation
CAPITAL ALLOCATION 23 SINCE INCEPTION, WE HAVE SOLD OR RECAPITALIZED NEARLY $1.6B OF ASSETS AT OR ABOVE NAV 3 New investments will be balanced with maintaining liquidity and prudent leverage Continued focus on office dispositions and monetizing land through ground leases to third parties 2 1 Planned
Slide 24: Robust Balance Sheet
ROBUST BALANCE SHEET 24 $1.7B OF LIQUIDITY TO WITHSTAND HEADWINDS AND CAPITALIZE ON INVESTMENT OPPORTUNITIES (1) In April 2021, the mortgage loan secured by L’Enfant Plaza, our only 2021 maturity, was extended to 2023. (2) Total Enterprise Value is based on closing price per share of $31.79 as of Ma
Slide 25: Attractive Entry Point into JBG SMITH
ATTRACTIVE ENTRY POINT INTO JBG SMITH 25 (17.7%) (23.8%) 14.3% JBG Smith Share Price Performance vs. Oce and Multifamily Sector Peers From November 13, 2018 – March [XX], 2021 Cumulative Performance vs. Oce and Multifamily Peers Notes: 1. Includes BXP, DEI, ESRT, KRC, PGRE, SLG, VNO, WRE 2. Includ
Slide 26: Appendix
o) APPENDIX
Slide 27: Disclosures: Definitions
DISCLOSURES 27 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" Earnings Before Interest,
Slide 28: Disclosures: Definitions
DISCLOSURES 28 DEFINITIONS ESTIMATED TOTAL PROJECT COST "Estimated total project cost" is estimated total investment excluding purchase price allocation adjustments recognized as a result of the Formation Transaction. Actual total project cost may differ substantially from our estimates due to numer
Slide 29: Definitions
DEFINITIONS 29 NEAR-TERM DEVELOPMENT PIPELINE "Near-term Development Pipeline" refers to select assets that have the potential to commence construction over the next three years, subject to receipt of full entitlements, completion of design and market conditions. NET OPERATING INCOME ("NOI"), "ANNUA
Slide 30: Definitions
DEFINITIONS 30 directly comparable GAAP measure is included in this Investor Package because we are unable to quantify certain amounts that would be required to be included in the comparable GAAP financial measures without unreasonable efforts because such data is not currently available or cannot b
Slide 31: EBITDA, EBITDAre and Adjusted EBITDA (Non-GAAP)
DISCLOSURES 31 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) Interest expense includes the amortization of deferred financing costs and the ineffective portion of any interes
Slide 32: NOI Reconciliations (Non-GAAP)
DISCLOSURES 32 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 properti
Slide 33: JBG SMITH
Oo JBG SMITH
JBG SMITH Properties — Investor Presentation (May 2021) on 6ix