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Section 1: 8-K (8-K)

Document


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
April 15, 2019

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JBG SMITH PROPERTIES
________________________________________________________________________________
(Exact name of Registrant as specified in its charter)
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:


_______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act o
 





Item 8.01    Other Events.

JBG SMITH Properties (the "Company") is filing this Current Report on Form 8-K to provide certain information about the Company, as set forth in Exhibit 99.1 attached hereto and incorporated herein by reference.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits
99.1     JBG SMITH Properties Information Q4 2018
        






SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
JBG SMITH PROPERTIES
 
April 15, 2019
 
By:
/s/ STEPHEN W. THERIOT
 
 
 
 
Name: Stephen W. Theriot
 
 
 
 
Title: Chief Financial Officer
 
         (Principal Financial and Accounting Officer)



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
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TABLE OF CONTENTS
DECEMBER 31, 2018


 
Page
Disclosures
3-4
Recent Developments
NOI Reconciliations (Non-GAAP)
EBITDA, EBITDAre and Adjusted EBITDA (Non-GAAP)
Portfolio Overview
Property Tables:
 
Commercial
9-12
Multifamily
13-15
Under Construction
Future Development
Lease Expirations
Debt Summary
Debt by Instrument
20-21
Definitions
22-24





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Page 2


DISCLOSURES

DECEMBER 31, 2018


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 not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results of JBG SMITH Properties (“JBG SMITH” or the “Company”) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximate”, “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans”, “would”, “may” or similar expressions in this document. We also note the following forward-looking statements: our annualized net operating income; in the case of our under construction and near-term development assets, estimated square feet, estimated number of units, the estimated completion date, estimated stabilization date, estimated incremental investment, estimated total investment, targeted net operating income yield and estimated stabilized net operating income; and in the case of our future development assets, estimated potential development density, estimated commercial SF/multifamily units to be replaced, estimated remaining acquisition cost, estimated capitalized cost and estimated total investment. We caution you not to place undue reliance on the targeted yields on incremental investment we present in this JBG SMITH Properties Information Package because they are based solely on our estimates, using data available to us in our development underwriting processes. Our estimated initial full year NOI, estimated property related revenue, estimated operating expenses and/or estimated incremental investment may differ substantially from our estimates due to various factors, including unanticipated capital expenditures and other expenses, delays in the estimated start and/or completion date and other contingencies, delays and/or difficulties in completing, leasing and stabilizing these assets, failure to obtain estimated occupancy and rental rates, inability to collect anticipated rental revenues, tenant bankruptcies and unanticipated expenses at these assets that we cannot pass on to tenants. We can provide no assurance that the initial yields on estimated incremental investment we present will be consistent with the targeted NOI yields on estimated incremental investment set forth in this JBG SMITH Properties Information Package. 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, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors.

For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see “Risk Factors” and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the issuance of this JBG SMITH Properties Information Package.

Organization and Basis of Presentation
JBG SMITH was formed by Vornado Realty Trust (“Vornado”) for the purpose of receiving via the spin-off on July 17, 2017, substantially all of the assets and liabilities of Vornado’s Washington, DC segment, which operated as Vornado / Charles E. Smith, (the “Vornado Included Assets”). On July 18, 2017, JBG SMITH acquired the management business and certain assets (the “JBG Assets”) of The JBG Companies (“JBG”). The spin-off from Vornado and combination with JBG are collectively referred to as the "Formation Transaction." The Vornado Included Assets are considered the accounting predecessor. As a result, the financial results of the JBG Assets are only included in the combined company’s financial statements from July 18, 2017 forward and are not reflected in the combined company’s historical financial statements for any prior period. Consequently, our results for the periods before and after the Formation Transaction are not directly comparable. We believe, however, that presenting certain supplemental adjusted financial and operational information at the property-level that is "adjusted" to include the results of the JBG Assets for periods prior to the acquisition date may be useful to investors. No other adjustments have been made to this supplemental adjusted information, which is purely informational and does not purport to be indicative of what would have happened had the acquisition of the JBG Assets occurred at the beginning of the periods presented.

The information contained in this JBG SMITH Properties Information Package does not purport to disclose all items required by the accounting principles generally accepted in the United States of America (“GAAP”) and is unaudited information, unless otherwise indicated.

Pro Rata Information
We present certain financial information and metrics in this JBG SMITH Properties Information Package “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 measures and metrics. Financial information “at JBG SMITH Share” is calculated on an asset-by-asset basis by applying our percentage economic interest to each applicable line item of that asset’s financial information. “At JBG SMITH Share” information, which we also refer to as being “at share,” “our pro rata share” or “our share,” is not, and is not intended to be, a presentation in accordance with GAAP. Given that a substantial portion of our assets are held through real estate ventures, we believe this form of presentation, which presents our economic interests in the partially owned entities, provides investors valuable information regarding a significant component of our portfolio, its composition, performance and capitalization.

We do not control the unconsolidated real estate ventures and do not have a legal claim to our co-venturers’ share of assets, liabilities, revenue and expenses. The operating agreements of the unconsolidated real estate ventures generally allow each co-venturer to receive cash distributions to the extent there is available cash from operations. The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions.

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Page 3


DISCLOSURES

DECEMBER 31, 2018



With respect to any such third-party arrangement, we would not be in a position to exercise sole decision-making authority regarding the property, real estate venture or other entity, and may, under certain circumstances, be exposed to economic risks not present were a third-party not involved. We and our respective co-venturers may each have the right to trigger a buy-sell or forced sale arrangement, which could cause us to sell our interest, or acquire our co-venturers’ interests, or to sell the underlying asset, either on unfavorable terms or at a time when we otherwise would not have initiated such a transaction. Our real estate ventures may be subject to debt, and the repayment or refinancing of such debt may require equity capital calls. To the extent our co-venturers do not meet their obligations to us or our real estate ventures or they act inconsistent with the interests of the real estate venture, we may be adversely affected. Because of these limitations, the non-GAAP “at JBG SMITH Share” financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP.

For complete financial statements, please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2018.



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Page 4


RECENT DEVELOPMENTS

DECEMBER 31, 2018


Amazon.com ("Amazon") has selected sites that we own in National Landing as the location of an additional headquarters ("Amazon HQ2"). Amazon has executed three initial leases totaling 537,000 square feet at three existing JBG SMITH office buildings in National Landing. The leases encompass approximately 88,000 square feet at 241 18th Street South, approximately 191,000 square feet at 1800 South Bell Street, and approximately 258,000 square feet at 1770 Crystal Drive. JBG SMITH expects Amazon to begin moving into 241 18th Street South and 1800 South Bell in 2019, and 1770 Crystal Drive by the end of 2020.

JBG SMITH and Amazon have also executed purchase and sale agreements for two of JBG SMITH’s National Landing development sites, Pen Place and Met 6, 7, and 8, which will serve as the initial phase of new construction associated with Amazon’s HQ2. Subject to customary closing conditions, Amazon will pay $294 million for the sites, or $72 per square foot based on their combined development potential of 4.1 million square feet. JBG SMITH expects to close on the Mets land sale as early as 2019 and on Pen Place as early as 2020.

In February 2019, the Commonwealth of Virginia enacted an incentives bill (the “Virginia Government Incentive Package”), which provides tax incentives to Amazon as it creates up to 37,850 full-time jobs with average salaries of $150,000 or higher in National Landing. As part of the incentive package, we expect $1.8 billion in infrastructure and education investments led by state and local governments.

Amazon has publicly stated that it intends to bring more than 25,000 knowledge worker positions to the area, with an average wage over $150,000 and plans to make a capital investment of approximately $2.5 billion in Amazon HQ2. The Virginia Government Incentive Package includes commitments to invest up to $295 million of non‑general fund money in transportation projects that will improve mobility in the region, including additional entrances to the Metro stations at Crystal Drive and the planned Potomac Yard station, improvements to Route 1, a connector bridge from National Landing to Washington National Airport, and a transitway expansion supporting National Landing. In addition, to the Commonwealth’s investments, Arlington County and the City of Alexandria have announced that they plan to fund over $570 million for transportation projects, including rail connections, transit facilities, multi‑modal streets, and corridor connectivity serving the site.
Virginia has also announced it will partner with university philanthropic funds to make performance‑based investments of up to $925 million over 20 years for degrees in computer science and related fields at George Mason University’s Arlington campus and for Virginia Tech to establish a new Innovation Campus in Alexandria.
The Company can provide no assurance that the selection of National Landing as an additional Amazon headquarters will result in the Company benefiting from the anticipated collateral financial effect associated with that selection. See “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.



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Page 5


NOI RECONCILIATIONS (NON-GAAP)
DECEMBER 31, 2018
(Unaudited)





dollars in thousands
Three Months Ended December 31, 2018
 
Year Ended December 31, 2018
 
 
Net income attributable to common shareholders
$
710

 
$
39,924

Add:
 
 
 
Depreciation and amortization expense
67,556

 
211,436

General and administrative expense:
 
 
 
Corporate and other
8,512

 
33,728

Third-party real estate services
25,274

 
89,826

Share-based compensation related to Formation Transaction and
special equity awards
9,118

 
36,030

Transaction and other costs
15,572

 
27,706

Interest expense
18,184

 
74,447

Loss on extinguishment of debt
617

 
5,153

Reduction of gain on bargain purchase

 
7,606

Income tax expense (benefit)
698

 
(738
)
Net loss attributable to redeemable noncontrolling interests
178

 
6,710

Less:
 
 
 
Third-party real estate services, including reimbursements
26,421

 
98,699

Other income
1,454

 
6,358

Income from unconsolidated real estate ventures, net
23,991

 
39,409

Interest and other income, net
9,991

 
15,168

Gain on sale of real estate
6,394

 
52,183

Net (income) loss attributable to noncontrolling interests
(106
)
 
21

Consolidated NOI
78,274

 
319,990

NOI attributable to consolidated JBG Assets (1)

 

Proportionate NOI attributable to unconsolidated JBG Assets (1)

 

Proportionate NOI attributable to unconsolidated real estate ventures
8,847

 
36,824

Non-cash rent adjustments (2)
(6,691
)
 
(10,349
)
Other adjustments (3)
5,110

 
19,638

Total adjustments
7,266

 
46,113

NOI
$
85,540

 
$
366,103

Non-same store NOI (4)
8,742

 
115,801

Same store NOI (5)
$
76,798

 
$
250,302

 
 
 
 
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 for the three months ended December 31, 2018 and $16.6 million for the year ended December 31, 2018.
(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.

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Page 6


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

 
 
$

 
 
____________________
(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.

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Page 7


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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In service
 
45

 
12,381,927

 
10,741,949

 
89.4
%
 
85.1
%
 
$
387,182

 
$
43.43

Recently delivered
 
1

 
552,540

 
552,540

 
93.0
%
 
92.6
%
 
30,780

 
61.39

Total / weighted average
 
46

 
12,934,467

 
11,294,489

 
89.6
%
 
85.5
%
 
$
417,962

 
$
44.44

Multifamily
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In service
 
15

 
6,024

 
4,240

 
96.5
%
 
94.9
%
 
$
106,349

 
$
2,123

Recently delivered
 
1

 
291

 
291

 
83.1
%
 
80.4
%
 
7,649

 
2,392

Total / weighted average
 
16

 
6,315

 
4,531

 
95.7
%
 
93.9
%
 
$
113,998

 
$
2,138

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 16-17 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.


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Page 8


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. (9)
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


397528677_logoverticaltransbluea03.jpg
 
Page 9


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) (9)
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
































397528677_logoverticaltransbluea03.jpg
 
Page 10


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) (10)
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 (9) (11)
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 (12)
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 (13)
 
(2
)
 
(733,137
)
 
(470,583
)
Out-of-service adjustment (14)
 
(2
)
 
(93,394
)
 
(60,728
)
Building re-measurements
 

 
(2,975
)
 
(3,066
)
Q4 2018
 
46

 
12,934,467

 
11,294,489




See footnotes on page 12.

397528677_logoverticaltransbluea03.jpg
 
Page 11


PROPERTY TABLE - COMMERCIAL
DECEMBER 31, 2018
(Unaudited)



Footnotes
Note: At 100% share, unless otherwise noted. Excludes our 10% subordinated interest in three commercial buildings held through a real estate venture in which we have no economic interest.
* Not Metro-Served.

(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
* We have an option to purchase the ground lease at a fixed price.
** Only a portion of the asset is subject to a ground lease.
(6)
In December 2018, we sold a 99-year term leasehold interest in 1700 M Street. 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)
Amazon is expected to lease approximately 88,000 square feet at 241 18th Street S and approximately 191,000 at 1800 South Bell Street. Together with the expected lease of approximately 258,000 square feet at 1770 Crystal Drive, these expected leases total approximately 537,000 square feet and are expected to generate a combined net effective rent of approximately $35 per square foot.
(10)
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%.
(11)
Amazon has executed a lease for 258,299 square feet at 1770 Crystal Drive. With this lease, the asset is 97.8% pre-leased, and the pre-leased status of our total under construction portfolio is 75.8% (77.4% at our share).
(12)
Includes JBG SMITH’s lease for approximately 84,400 square feet.
(13)
In October 2018, we sold 1233 20th Street for $65.0 million. In December 2018, our unconsolidated real estate venture sold The Warner for a sales price of $376.5 million.
(14)
Wiehle Avenue Office Building and NoBe II Office were taken out of service in Q4 2018.

397528677_logoverticaltransbluea03.jpg
 
Page 12


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

 
 
 
 
 
 

397528677_logoverticaltransbluea03.jpg
 
Page 13


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