Jbg Smith Properties · NYSE:JBGS
Jbg Smith Properties — Q2 2021 Earnings Presentation
29 slides from Jbg Smith Properties's earnings presentation, Aug 3, 2021
Slide 1: Investor Presentation August 2021
Investor presentation August 2021 2001 South Bell Street Rendering
Slide 2: 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: 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 in real estate ventures (collectively, "real estate ventures") as applied to these financial
Slide 4: Disclosures
disclosures of up to approximately 4.1 million square feet. In December 2019, Arlington County approved the plans submitted by Amazon to construct two new office buildings, totaling 2.1 million square feet, inclusive of over 50,000 square feet of street-level retail with new shops and restaurants, o
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 $31.51 as of June 30, 2021. 5 OPERATING PORTFOLIO COMMERCIAL SF MULTIFAMILY UNITS 11.4M 6,125 Q2 2021 ANNUALIZED NOI $330.7M LEASED IN-SERVICE PORTFOLIO 88.6% WEIGHTED AVERAGE LEASE TERM (Portfolio Wide) 6.1
Slide 6: Q2 2021 and Recent Highlights
PARTNERS FIBER OUTDOOR 5G INDOOR 5G EDGE DATA CENTERS CBRS SPECTRUM q2 2021 and recent highlights 6 FURTHERED ENTITLEMENTS OF NEAR-TERM DEVELOPMENT PIPELINE ADVANCED SMART CITY INITIATIVE THROUGH STRATEGIC PARTNERSHIPS 100% of our 5.0M SF Near-Term Development Pipeline is either fully entitled or ha
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 LANDIN
Slide 8: 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 53% 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 Showing Early Signs of Recovery
dc metro market fundamentals SHOWING EARLY SIGNS OF A RECOVERY Source: Apartment List (DC Metro) and JLL (DC Metro). (1) Pre-pandemic levels represent March 2020 levels. 9 1 MULTIFAMILY ASKING RENTS GREW 2.0% YOY AND RETURNED TO PRE-PANDEMIC LEVELS(1) AND OCCUPANCY INCREASED 2.3% DURING THE SAME TIM
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% TOTAL PUBLIC AND PRIVATE INVESTMENT $12B JBGS DEVELOPMENT PIPELINE 7.2M SF 10 AMAZON HQ2 JBGS OPERATING JBGS DEVELOPMENT PIPELINE INFRASTRUCTURE/EDUCATION
Slide 11: Demand Catalysts in National Landing: Growth Timeline
DEMAND CATALYSTS IN NATIONAL LANDING: GROWTH TIMELINE Potential to start up to 2,545 new multifamily units over the next three years to meet market demand (1) Dates reflect JBG SMITH’s estimate of third-party investment in National Landing. (2) The office component of 1770 Crystal Drive is 100% leas
Slide 12: Demand Catalysts: 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: 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 pipeline(4) Average wage of $162K(5) x Affordable rent of 25% of pre-tax income = Affordable rent of $3,375 / month vs. $2
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 INITIAL SF DEDICATED TO VIRGINIA TECH 675K SF EXPECTED ANNUAL STEM MASTER'S DEGREES 750 14 2 JOINT VENTURE AGREEMENT E
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 25% Other VA 14% National Landing 54% National Landing 54% Commercial 77% Multifamily 23% Q2 2021 NOI BY REGION Q2 2021 NOI BY USE 3 Q2 OPERATING PORT
Slide 16: Substantial Growth Opportunity: Newly Developed Assets in Lease-Up
SUBSTANTIAL GROWTH OPPORTUNITY: NEWLY DEVELOPED ASSETS IN LEASE-UP SIGNIFICANT NEAR-TERM NOI GROWTH ANTICIPATED BY Year end 2022, DRIVEN BY STABILIZATION OF 7 NEWLY DEVELOPED ASSETS (1) Formerly known as 7900 Wisconsin Avenue. 16 MULTIFAMILY WEIGHTED AVG. % LEASED: 72.9% West Half 900 and 901 W Stre
Slide 17: Extensive Development Pipeline: 1900 Crystal Drive
EXTENSIVE DEVELOPMENT PIPELINE: 1900 CRYSTAL DRIVE (UNDER CONSTRUCTION) 17 MULTIFAMILY UNITS IN TWO BUILDINGS NEW AMENITY RETAIL ESTIMATED INCREMENTAL INVESTMENT ESTIMATED STABILIZED NOI ESTIMATED INITIAL COMPLETION DATE 808 38K+ SF $331M $23M 1H 2024 4
Slide 18: Extensive 14.9M SF Development Pipeline
EXTENSIVE DEVELOPMENT PIPELINE EXTENSIVE 14.9M SF DEVELOPMENT PIPELINE — 73% MULTIFAMILY 18 IN ADDITION TO DEVELOPMENT, WE MAY UNLOCK VALUE THROUGH OPPORTUNISTIC ASSET SALES, GROUND LEASES, AND RECAPITALIZATIONS DEVELOPMENT PIPELINE COMPOSITION HOW ARE WE HARVESTING VALUE? 5.0M SF Near-Term Developm
Slide 19: Proven Capital Allocator: Shifting Portfolio Mix
PROVEN CAPITAL ALLOCATOR: SHIFTING PORTFOLIO MIX Opportunistically shift portfolio to majority Multifamily over time 19 Sell or recapitalize at least $1.5B of non-core assets Proven track record with $1.6B assets sold at or above NAV since inception Embedded growth via our 14.9M SF Development Pipel
Slide 20: 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 $31.51 as of June 30, 2021. 20 DEBT MATURITY SCHEDULE Weighted Avg. Cost of Debt: 3.2% Weighted Avg. Debt Maturity: 4.1 years
Slide 21: 2020 ESG Report Highlights
2020 Esg report highlights focusing on environmental, social, and governance issues that impact our business IS ESSENTIAL TO maximizing long-term NAV per share (1) Data compares 2020 metrics versus 2019. Note, that the COVID-19 pandemic caused a significant reduction of activity in our buildings in
Slide 22: Appendix
Appendix
Slide 23: 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 and EBITDAre are used by managemen
Slide 24: Definitions
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 25: 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 26: 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 June 30, 2021, and is calculated as total rentable square feet less rentable square feet available for lease divided by total
Slide 27: 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”). Interest expense includes the amortization of deferred financing costs and the ineffective portion of any interest rate swaps or cap
Slide 28: NOI Reconciliations (Non-GAAP)
NOI RECONCILIATIONS (NON-GAAP) (Unaudited) Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization. Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude comme
Slide 29: JBG SMITH
o) JBG SMITH