JBG SMITH(JBGS) - 2024 Q3 - Quarterly Results

SECTION ONE: Letter to Shareholders This section presents the management's letter to shareholders, covering macroeconomic trends, operational highlights, capital allocation, financial performance, and debt position Management Letter The management letter highlights an improved real estate capital market sentiment following the first rate cut in four years. The company reported strong multifamily performance, successful capital recycling, and significant share repurchases, while also outlining its capital allocation strategy and current financial position Macroeconomic & Real Estate Market Sentiment This section discusses the improved real estate capital market sentiment and strengthening apartment and office market fundamentals - The first Federal Reserve rate cut in four years has improved real estate capital market sentiment among lenders and equity investors[4] - Apartment fundamentals have strengthened due to limited supply, and the office market has cleared its bottom with improved leasing fundamentals[4] - The five-day in-office workweek is making a comeback, with major employers like Amazon mandating it, at a time when office supply is diminishing due to conversions and teardowns[4] Q3 2024 Key Operational Highlights This section outlines the company's key operational achievements for Q3 2024, including successful asset sales, strong multifamily performance, and sustainability awards - Closed on the sale of Fort Totten Square for $86.8 million, contributing to $263.6 million in year-to-date capital recycling transactions at an average 4.8% capitalization rate[5] - Multifamily In-Service portfolio occupancy increased by 140 basis points to 95.7% and was 97.0% leased[6] - Same Store multifamily portfolio effective rents increased by 4.5% for new leases and 6.1% upon renewal, with a 60.0% renewal rate and 3.5% Same Store NOI growth[6] - The Grace and Reva, two new towers in National Landing, were 63.2% leased as of October 27th, exceeding the leasing performance of all five prior multifamily deliveries since 2017[7] - Received Nareit's Impact at Scale Award and maintained a 5-star GRESB ranking, recognized as Global Listed Sector Leader and Americas Regional Sector Leader for Diversified (Office and Residential) REITs[8] Capital Allocation Strategy This section details the company's approach to capital allocation, focusing on development opportunities, non-core asset dispositions, and share repurchases - Expects development opportunities to become more economically viable in a positive macroeconomic landscape, with 9.3 million square feet of Development Pipeline expected to be entitled by the end of 2025[9] - Continues to dispose of non-core assets, marketing over $200 million in combined value for sale, following $263.6 million in capital recycling year-to-date[11] - New investments, including developments, acquisitions, and share buybacks, will primarily be financed through asset recycling[12] - Repurchased 10.8 million shares for $168.3 million year-to-date at an average price of $15.61, totaling $1.1 billion since 2020 (56.6 million shares, ~38% of outstanding shares)[12] Financial and Operating Metrics Overview This section provides a summary of the company's key financial and operating metrics for Q3 2024, including FFO, NOI, and portfolio occupancy rates Q3 2024 Key Financial and Operating Metrics | Metric | Value | | :---------------------------------- | :------------------- | | Core FFO attributable to common shares | $19.3 million | | Core FFO per diluted share | $0.23 | | Annualized NOI (excluding sold/out-of-service assets) | In line with last quarter | | Multifamily portfolio leased | 92.7% | | Multifamily portfolio occupied | 90.6% | | In-Service multifamily portfolio leased | 97.0% | | In-Service multifamily portfolio occupied | 95.7% | | Office portfolio leased | 80.7% | | Office portfolio occupied | 79.1% | | Same Store NOI growth (QoQ) | 0.5% | Debt and Liquidity Position This section outlines the company's debt and liquidity profile, including leverage ratios, debt maturity, and anticipated earnings pressures - Net Debt to Annualized Adjusted EBITDA was 10.6x as of September 30, 2024[14] - Floating rate exposure remains low, with 91.4% of debt fixed or hedged, and a weighted average debt maturity of 3.1 years[15] - Repaid an $83.3 million mortgage loan and executed a one-year extension of the Tranche A-1 Term Loan[15] - Anticipates continued downward pressure on earnings and office Same Store NOI through 2025, and upward pressure on Net Debt to Annualized Adjusted EBITDA due to tenant vacates and construction spend[14] - Expected pressures will be lessened by income from new deliveries (The Grace, Reva, Valen, The Zoe), multifamily rent growth, and office demand in National Landing[14] Operating Portfolio Performance The operating portfolio showed strong multifamily performance with increased occupancy and rent growth, driven by new developments and limited market-wide supply. The office portfolio experienced a slight decrease in occupancy but saw improved leasing sentiment and activity, particularly in defense and technology sectors, with strategic repurposing of older assets Multifamily Portfolio Trends This section details the positive trends in the multifamily portfolio, including increased occupancy, rent growth, and strong leasing performance of new developments Multifamily Portfolio Performance (QoQ) | Metric | Q3 2024 | Change QoQ | | :---------------------------------- | :------ | :--------- | | In-Service Portfolio Leased | 97.0% | +0.1% | | In-Service Portfolio Occupied | 95.7% | +1.4% | | Same Store New Lease Effective Rents | +4.5% | N/A | | Same Store Renewal Lease Effective Rents | +6.1% | N/A | | Same Store Renewal Rate | 60.0% | N/A | | Same Store NOI Growth | +3.5% | N/A | - The Grace and Reva (808 units) were 60.7% leased by quarter-end and 63.2% leased by October 27th, exceeding the leasing pace of all five prior multifamily deliveries since 2017[17] - Market-wide (DC Metro) new multifamily starts are stalled (3,103 units under construction), pushing occupancy to 94.1% and rents to grow at 3.5%[18] - The DC metro region's 3.5% rent growth compares favorably to 0.6% in other Gateway markets, with a favorable supply picture[19] Office Portfolio Trends This section analyzes the office portfolio trends, noting a slight occupancy decrease, improved tenant sentiment, strategic asset repurposing, and a shift towards five-day in-office work Office Portfolio Performance (QoQ) | Metric | Q3 2024 | Change QoQ | | :---------------------------------- | :------ | :--------- | | Portfolio Leased | 80.7% | -1.5% | | Portfolio Occupied | 79.1% | -1.5% | | Square Feet Leased (Q3) | 150,000 SF | N/A | | Weighted Average Lease Term | 6.3 years | N/A | | Second-Generation Lease Rental Rate Mark-to-Market (Cash) | +1.2% | N/A | - Tenant surveys indicate higher engagement and a 25% YoY increase in intent to renew, with National Landing renewals averaging under $5 per square foot per annum in leasing costs[21] - Leasing in National Landing is primarily driven by government contractors, secure facility needs, and technology-related tenants, accounting for approximately 80% of leasing activity this year[21] - Approximately 600,000 square feet were taken out of service this year, with an additional 143,000 square feet planned, to repurpose older buildings for redevelopment or conversion[22] - Anticipates approximately 475,000 square feet ($21.5 million annualized rent) of tenant vacates in National Landing by H1 2025, resulting in a pro forma occupancy of ~69% (excluding highly levered assets)[23] - Market-wide, there's a significant attitudinal shift towards five-day in-office work, with 79% of U.S. CEOs expecting this by 2027 (up from 34% earlier this year)[24] - Northern Virginia office market shows an uptick in leasing activity, with 60-80% of transactions being renewals, and 55% of quarterly leasing in defense, engineering, and technology sectors[26] - Limited new supply (210,000 SF under construction) and potential repurposing of over 10 million square feet of obsolete office buildings could significantly reduce the 23.5% vacancy rate[26] Conclusion and Outlook The company is encouraged by recent Federal Reserve actions, the apparent bottoming of the office market, and the return to five-day in-office work. Having largely completed its portfolio transformation to majority multifamily, JBG SMITH is well-positioned to capitalize on the next phase of the real estate cycle, with an active office leasing pipeline and shrinking office inventory - Encouraged by recent Federal Reserve action on interest rates, the apparent bottom in the office market, and the return of the five-day in-office workweek[27] - The company has largely completed its portfolio transformation, now being almost majority multifamily, and has successfully repositioned the National Landing submarket[27] - The office leasing pipeline is more active than at any time since 2020, and the office denominator continues to shrink[27] Personnel Update Kai Reynolds, Chief Development Officer, will be retiring at the end of the year, with gratitude expressed for his contributions - Chief Development Officer, Kai Reynolds, will be retiring at the end of this year[28] SECTION TWO: Q3 2024 Earnings Release This section provides a summary of JBG SMITH's third-quarter 2024 financial results, including net loss, FFO, NOI, operating portfolio performance, and balance sheet highlights Third Quarter 2024 Results Summary JBG SMITH reported a net loss for Q3 2024, with FFO and Core FFO also decreasing compared to the prior year. Annualized NOI saw a slight decrease, primarily due to tenant vacates, while Same Store NOI increased marginally, driven by multifamily performance Financial Performance (Net Loss, FFO, Core FFO) This section details the company's net loss, FFO, and Core FFO for Q3 2024, comparing performance against the prior year Q3 2024 vs. Q3 2023 Financial Performance | Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change | | :---------------------------------- | :-------------------- | :-------------------- | :----- | | Net loss attributable to common shareholders | $(27.0) | $(58.0) | +$31.0 | | Net loss per diluted share | $(0.32) | $(0.58) | +$0.26 | | FFO attributable to common shareholders | $19.5 | $40.1 | $(20.6) | | FFO per diluted share | $0.23 | $0.40 | $(0.17) | | Core FFO attributable to common shareholders | $19.3 | $41.0 | $(21.7) | | Core FFO per diluted share | $0.23 | $0.40 | $(0.17) | - The net loss for Q3 2024 improved compared to Q3 2023, which included a significant impairment loss of $59.3 million related to real estate assets[30] Annualized & Same Store NOI This section presents the Annualized and Same Store Net Operating Income (NOI) for Q3 2024, highlighting drivers of change Annualized NOI (at JBG SMITH Share) | Metric | Q3 2024 (in millions) | Q2 2024 (in millions) | Change | | :---------------------------------- | :-------------------- | :-------------------- | :----- | | Annualized NOI | $282.4 | $286.4 | $(4.0) | | Annualized NOI (excluding sold/out-of-service assets) | $278.1 | $278.4 | $(0.3) | - The decrease in Annualized NOI (excluding sold/out-of-service assets) was primarily due to tenant vacates and higher concessions at certain multifamily assets, partially offset by lower real estate tax expense[30][31] Same Store NOI (SSNOI) (at JBG SMITH Share) | Metric | Q3 2024 (in millions) | Change QoQ | | :---------------------------------- | :-------------------- | :--------- | | SSNOI | $68.6 | +0.5% | | SSNOI increase drivers | Higher rents and occupancy, lower concessions in multifamily; lower real estate taxes in commercial. | | SSNOI decrease drivers | Higher operating expenses in multifamily; lower occupancy and recovery revenue in commercial. | Operating Portfolio Highlights The operating multifamily portfolio saw a slight decrease in overall occupancy but the In-Service segment remained strong. The commercial portfolio experienced a modest decline in both leased and occupied rates, while office leasing activity included a mix of new and renewal leases with positive rental rate increases Operating Portfolio Occupancy & Leasing (QoQ) | Metric | As of Sep 30, 2024 | As of Jun 30, 2024 | Change | | :---------------------------------- | :----------------- | :----------------- | :----- | | Operating Multifamily Leased | 92.7% | 96.9% | -4.2% | | Operating Multifamily Occupied | 90.6% | 94.3% | -3.7% | | In-Service Multifamily Leased | 97.0% | 96.9% | +0.1% | | In-Service Multifamily Occupied | 95.7% | 94.3% | +1.4% | | Same Store Multifamily New Lease Effective Rents | +4.5% | N/A | N/A | | Same Store Multifamily Renewal Lease Effective Rents | +6.1% | N/A | N/A | | Same Store Multifamily Renewal Rate | 60.0% | N/A | N/A | | Operating Commercial Leased | 80.7% | 82.3% | -1.6% | | Operating Commercial Occupied | 79.1% | 80.6% | -1.5% | - Executed approximately 150,000 square feet of office leases in Q3 2024 (46,000 SF new leases) and 496,000 square feet year-to-date (241,000 SF new leases)[32] - Second-generation office leases generated a 1.2% rental rate increase on a cash basis for Q3 and a 1.5% increase year-to-date[32] Development Portfolio Overview The company has one multifamily asset with 775 units under construction. The Grace and Reva were recently placed into the operating portfolio. The development pipeline consists of 18 assets with 9.3 million square feet of estimated potential development density - One multifamily asset consisting of 775 units is currently under construction[33] - The Grace and Reva (formerly 1900 Crystal Drive) were placed into the operating multifamily portfolio in Q2 2024[33] - The development pipeline includes 18 assets with an estimated potential development density of 9.3 million square feet[33] Third-Party Asset Management and Real Estate Services Business Revenue from third-party real estate services, including reimbursements, was $17.1 million for Q3 2024. Excluding reimbursements and service revenue from real estate ventures, the business generated $8.3 million, primarily from property and asset management fees Q3 2024 Third-Party Real Estate Services Revenue | Revenue Type | Amount (in millions) | | :---------------------------------- | :------------------- | | Total revenue (including reimbursements) | $17.1 | | Revenue (excluding reimbursements and venture service revenue) | $8.3 | | Property and asset management fees | $5.0 | | Other service revenue | $1.6 | | Leasing fees | $1.0 | Balance Sheet & Capital Activities As of September 30, 2024, JBG SMITH's total enterprise value was approximately $4.3 billion, with Net Debt to annualized Adjusted EBITDA at 10.6x. The company engaged in asset dispositions, debt repayment, and share repurchases during the quarter Balance Sheet Metrics (as of Sep 30, 2024) | Metric | Value | | :---------------------------------- | :------------------- | | Total enterprise value | ~$4.3 billion | | Common shares and units outstanding | 98.4 million | | Common shares and units value | $1.7 billion | | Debt (net) at JBG SMITH share | $2.7 billion | | Cash and cash equivalents at JBG SMITH share | $141.7 million | | Net Debt to annualized Adjusted EBITDA | 10.6x | | Net Debt / total enterprise value | 59.6% | | Cash and cash equivalents | $137.0 million | | Availability under revolving credit facility | $644.3 million | - Sold Fort Totten Square for $86.8 million in September 2024[37] - Repaid an $83.3 million mortgage loan and extended the $200.0 million Tranche A-1 Term Loan by one year to January 2026[37] - Repurchased and retired 3.1 million common shares for $50.2 million at a weighted average price of $16.23 per share[37] Dividends The Board of Trustees declared a quarterly dividend of $0.175 per common share, payable in November 2024 - A quarterly dividend of $0.175 per common share was declared on October 24, 2024, payable on November 22, 2024[38] About JBG SMITH JBG SMITH is a leading owner, operator, investor, and developer of mixed-use properties in the Washington, DC market, with a significant concentration in National Landing. The company focuses on placemaking, green building, and maintaining carbon-neutral operations - JBG SMITH owns, operates, invests in, and develops mixed-use properties in high-growth, high-barrier-to-entry submarkets in and around Washington, DC, primarily National Landing[39] - Approximately 75.0% of JBG SMITH's holdings are in National Landing, anchored by Amazon's new headquarters, Virginia Tech's Innovation Campus, proximity to the Pentagon, and placemaking initiatives[39] - The portfolio comprises 13.1 million square feet of multifamily, office, and retail assets (at share), 98% of which are Metro-served, and a development pipeline of 9.3 million square feet, primarily multifamily[39] - Committed to green, smart, and healthy buildings, with plans to maintain carbon-neutral operations annually[39] Forward-Looking Statements This section provides a cautionary statement regarding forward-looking statements, highlighting that future results may differ materially due to numerous assumptions, risks, and uncertainties, and advises against undue reliance on these statements - Statements in the release may constitute 'forward-looking statements' subject to numerous assumptions, risks, and uncertainties, and future results may differ materially[40] - Factors influencing outcomes include adverse economic conditions, timing and costs of development, financing commitments, and competitive factors[40] - Investors are cautioned not to place undue reliance on forward-looking statements, and the company does not undertake to publicly release revisions[40] Pro Rata Information The company presents financial information 'at JBG SMITH Share' to reflect its economic interests in consolidated and unconsolidated real estate ventures, emphasizing that this non-GAAP presentation provides valuable insights into its portfolio's composition and performance, despite not representing GAAP-compliant control or legal claims to co-venturers' shares - Financial information is presented 'at JBG SMITH Share' (pro rata share) to reflect ownership percentage in consolidated and unconsolidated real estate ventures[41] - This non-GAAP presentation provides valuable information on the portfolio's composition, performance, and capitalization, as a significant portion of assets are held through real estate ventures[41][42] - The company does not control unconsolidated ventures and does not have legal claim to co-venturers' shares; this information should not be considered a substitute for GAAP financial statements[42] - Certain subordinated interests in commercial buildings and associated non-recourse mortgage loans are excluded from occupancy and non-GAAP metrics due to zero investment and no anticipated near-term cash flow distributions[42] Non-GAAP Financial Measures Explanation This section explains the calculation and utility of various non-GAAP financial measures, including EBITDA, EBITDAre, Adjusted EBITDA, FFO, Core FFO, FAD, Net Debt, and NOI. These measures are used by management to assess operating performance, financial flexibility, and dividend funding ability, providing supplemental insights beyond GAAP, but are not substitutes for GAAP measures - EBITDA, EBITDAre, and Adjusted EBITDA are non-GAAP measures used to evaluate operating performance by removing the impact of capital structure and certain non-cash expenses[43][44] - FFO, Core FFO, and FAD are non-GAAP measures useful for comparing levered operating performance and assessing the ability to fund dividends, by excluding real estate depreciation and other non-comparable items[44][45] - Net Debt is a non-GAAP measure representing total consolidated and unconsolidated indebtedness less cash and cash equivalents, used to manage financial flexibility and leverage[45] - NOI and Annualized NOI are non-GAAP measures used to assess asset performance by reflecting property-related revenue less operating expenses, excluding non-cash items and financing costs[45] - These non-GAAP measures are supplemental and should be considered in conjunction with GAAP financial statements, as they have limitations and may not be comparable to measures used by other companies[44][45] Definitions (Earnings Release) This section provides key definitions for terms used in the earnings release, including Development Pipeline, Estimated Potential Development Density, First-generation, Formation Transaction, Free Rent, GAAP, In-Service, Non-Same Store, and Same Store - Key terms defined include 'Development Pipeline' (assets with potential for construction), 'Estimated Potential Development Density' (management's estimate of developable square feet), and 'In-Service' (multifamily/commercial assets at or above 90% leased or operating for >12 months)[47] - Definitions also cover 'First-generation' (newly vacant or delivered space leases), 'Formation Transaction' (spin-off and acquisition events), 'Free Rent' (abated rent), 'GAAP' (accounting principles), 'Non-Same Store' (excluded from Same Store pool), and 'Same Store' (assets in-service for both comparison periods, excluding significant redevelopment)[47] Condensed Consolidated Financial Statements (Summary) This section provides a summary of the company's condensed consolidated financial statements, including balance sheets, statements of operations, and reconciliations for non-GAAP measures like EBITDA, FFO, and NOI. For detailed financial tables and comprehensive reconciliations, refer to the 'Detailed Financial Information' section in the Supplemental Information Condensed Consolidated Balance Sheets (Summary) This section summarizes the company's condensed consolidated balance sheets, presenting key assets, liabilities, and equity as of September 30, 2024, and December 31, 2023 Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability | Sep 30, 2024 | Dec 31, 2023 | | :---------------------------------- | :----------- | :----------- | | ASSETS: | | | | Real estate, net | $4,429,977 | $4,536,759 | | Cash and cash equivalents | $136,983 | $164,773 | | Investments in unconsolidated real estate ventures | $100,682 | $264,281 | | Total Assets | $5,182,477 | $5,518,515 | | LIABILITIES & EQUITY: | | | | Mortgage loans, net | $1,816,156 | $1,783,014 | | Revolving credit facility | $90,000 | $62,000 | | Term loans, net | $717,578 | $717,172 | | Total liabilities | $2,841,880 | $2,825,929 | | Total equity | $1,895,652 | $2,251,849 | | Total Liabilities, Redeemable Noncontrolling Interests and Equity | $5,182,477 | $5,518,515 | Condensed Consolidated Statements of Operations (Summary) This section provides a summary of the company's condensed consolidated statements of operations, detailing revenues, expenses, and net loss for Q3 2024 and Q3 2023 Condensed Consolidated Statements of Operations (in thousands, Q3 2024 vs. Q3 2023) | Item | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | Total revenue | $136,026 | $151,562 | | Total expenses | $129,756 | $136,793 | | Total other income (expense) | $(36,748) | $(80,793) | | Net loss | $(31,309) | $(66,101) | | Net loss attributable to common shareholders | $(26,980) | $(58,007) | | Loss per common share - diluted | $(0.32) | $(0.58) | EBITDA, EBITDAre and Adjusted EBITDA Reconciliations (Summary) This section summarizes the reconciliations for EBITDA, EBITDAre, and Adjusted EBITDA, along with the Net Debt to Annualized Adjusted EBITDA ratio for Q3 2024 and Q3 2023 EBITDA, EBITDAre and Adjusted EBITDA (in thousands, Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | Net loss | $(31,309) | $(66,101) | | EBITDA | $56,676 | $16,641 | | EBITDAre | $62,028 | $77,720 | | Adjusted EBITDA | $60,010 | $76,313 | | Net Debt to Annualized Adjusted EBITDA | 10.6x | 8.1x | FFO, Core FFO and FAD Reconciliations (Summary) This section summarizes the reconciliations for FFO, Core FFO, and FAD, including per share amounts and the FAD payout ratio for Q3 2024 and Q3 2023 FFO, Core FFO and FAD (in thousands, Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | FFO Attributable to Common Shareholders | $19,499 | $40,098 | | Core FFO Attributable to Common Shareholders | $19,292 | $41,040 | | FFO per common share - diluted | $0.23 | $0.40 | | Core FFO per common share - diluted | $0.23 | $0.40 | | FAD available to OP Units (A) | $18,450 | $43,909 | | Distributions to common shareholders and unitholders (B) | $17,891 | $26,801 | | FAD Payout Ratio (B÷A) | 97.0% | 61.0% | NOI Reconciliations (Summary) This section summarizes the reconciliations for Net Operating Income (NOI), including consolidated, unconsolidated, and Same Store NOI for Q3 2024 and Q3 2023 NOI Reconciliations (in thousands, Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | Consolidated NOI | $65,068 | $72,915 | | NOI attributable to unconsolidated real estate ventures at our share | $1,292 | $5,374 | | NOI | $68,336 | $78,866 | | Operating Portfolio NOI | $70,597 | $79,861 | | Same Store NOI | $68,585 | $68,254 | | Change in Same Store NOI | 0.5% | N/A | SECTION THREE: Q3 2024 Supplemental Information This section provides detailed supplemental information for Q3 2024, including overview disclosures, company profile, financial highlights, portfolio data, leasing activity, debt details, and comprehensive non-GAAP reconciliations Overview Disclosures This section provides essential disclosures, including detailed forward-looking statements, the company's organizational structure and basis of presentation, an explanation of pro rata financial reporting, and a list of all non-GAAP measures used in the investor package, along with a reference to comprehensive definitions Forward-Looking Statements This section provides detailed cautionary statements regarding forward-looking information, outlining potential impacts of market disruptions, NOI growth, and development timelines - Detailed cautionary statements regarding forward-looking information, including potential impacts of market disruptions, NOI growth, leverage profile, Amazon's headquarters, office market trends, and development timelines[62] - Highlights numerous factors beyond control that could affect outcomes, such as economic conditions, development costs, and financing[62] Organization and Basis of Presentation This section describes JBG SMITH's organizational structure as a Maryland REIT, its focus on mixed-use properties, and the unaudited nature of the Investor Package information - JBG SMITH is a Maryland real estate investment trust focused on mixed-use properties in the Washington, DC market, particularly National Landing[63] - The company also operates a third-party asset management and real estate services business for JBG Legacy Funds and other parties[63] - Information in the Investor Package is unaudited unless otherwise indicated and does not purport to disclose all GAAP-required items[63] Pro Rata Information This section explains the 'at JBG SMITH Share' financial presentation, a non-GAAP measure reflecting economic interests in real estate ventures, and its utility for investors - Financial information 'at JBG SMITH Share' is a non-GAAP presentation reflecting the company's economic interest in consolidated and unconsolidated real estate ventures[63] - This presentation provides valuable information on portfolio composition, performance, and capitalization, but is not a substitute for GAAP financial statements[63] - Certain subordinated interests and associated non-recourse mortgage loans in unconsolidated ventures are excluded from occupancy and non-GAAP measures due to zero investment and no anticipated cash flow[63] Definitions (Supplemental Information) This section directs readers to pages 39-43 for a comprehensive list of definitions pertinent to the Investor Package - Refers to pages 39-43 for a comprehensive list of definitions of terms used in the Investor Package[64] Non-GAAP Measures This section lists all non-GAAP financial measures used in the Investor Package, emphasizing their role as supplemental information for assessing financial condition and operations - Lists all non-GAAP financial measures included in the Investor Package, such as EBITDA, FFO, FAD, NOI, and their various adjusted forms[65] - These measures are explained as useful supplemental information for investors regarding financial condition and results of operations, with reconciliations provided[65] Company Profile As of September 30, 2024, JBG SMITH's company snapshot shows a total enterprise value of $4.26 billion, with Net Debt at $2.54 billion, representing 59.6% of total enterprise value. The indicated annual dividend per share is $0.70, yielding 4.0% Company Snapshot as of September 30, 2024 | Metric | Value | | :---------------------------------- | :------------------- | | Exchange/ticker | NYSE: JBGS | | Indicated annual dividend per share | $0.70 | | Dividend yield | 4.0% | | Common share price | $17.48 | | Common shares and OP Units outstanding (in millions) | 98.37 | | Total market capitalization (in billions) | $1.72 | | Total consolidated and unconsolidated indebtedness at JBG SMITH Share (in billions) | $2.68 | | Less: cash and cash equivalents at JBG SMITH Share (in billions) | $(0.14) | | Net Debt (in billions) | $2.54 | | Total Enterprise Value (in billions) | $4.26 | | Net Debt / Total Enterprise Value | 59.6% | Financial Highlights The financial highlights for Q3 2024 show total revenue of $136.0 million and a net loss attributable to common shareholders of $(27.0) million. Key non-GAAP metrics include Operating Portfolio NOI of $70.6 million, Core FFO of $23.0 million, and an FAD payout ratio of 97.0%. The Net Debt to annualized Adjusted EBITDA stood at 10.6x Summary Financial Results (Q3 2024) | Metric | Three Months Ended Sep 30, 2024 | | :---------------------------------- | :------------------------------ | | Total revenue | $136,026 | | Net loss attributable to common shareholders | $(26,980) | | Per diluted common share | $(0.32) | | Operating portfolio NOI | $70,597 | | FFO (attributable to OP Units) | $23,224 | | Core FFO (attributable to OP Units) | $22,977 | | FAD (attributable to OP Units) | $18,450 | | FAD payout ratio | 97.0% | | EBITDA (attributable to OP Units) | $56,676 | | EBITDAre (attributable to OP Units) | $62,028 | | Adjusted EBITDA (attributable to OP Units) | $60,010 | | Net Debt / total enterprise value | 59.6% | | Net Debt to annualized Adjusted EBITDA | 10.6x | Debt Summary (at JBG SMITH Share, as of Sep 30, 2024) | Metric | Value | | :---------------------------------- | :------------------- | | Total consolidated indebtedness | $2,615,724 | | Total consolidated and unconsolidated indebtedness | $2,682,417 | | Weighted average interest rates (Variable) | 6.07% | | Weighted average interest rates (Fixed) | 4.63% | | Weighted average interest rates (Total) | 5.08% | | Cash and cash equivalents | $141,669 | Portfolio Overview As of September 30, 2024, JBG SMITH's operating portfolio comprises 41 assets, with 6,781 multifamily units and 7.2 million commercial square feet. The total operating portfolio was 86.0% leased and 84.2% occupied, generating $282.4 million in annualized NOI. The development pipeline includes 18 assets with 9.3 million square feet of potential density Operating Portfolio Summary (at JBG SMITH Share, as of Sep 30, 2024) | Asset Type | Number of Assets | Units / Square Feet | % Leased | % Occupied | Annualized Rent (in thousands) | Annualized NOI (in thousands) | | :---------------------------------- | :--------------- | :------------------ | :------- | :--------- | :----------------------------- | :---------------------------- | | Multifamily (In-Service) | 14 | 5,973 Units | 97.0% | 95.7% | $180,530 | $125,288 | | Multifamily (Recently Delivered) | 2 | 808 Units | 60.7% | 55.1% | $17,499 | $3,740 | | Multifamily (Total) | 16 | 6,781 Units | 92.7% | 90.6% | $198,029 | $129,028 | | Commercial (Total) | 23 | 6,895,964 SF | 80.7% | 79.1% | $249,466 | $150,124 | | Ground Leases | 2 | — | — | — | — | $3,236 | | Operating (Total) | 41 | 6,781 Units / 6,895,964 SF | 86.0% | 84.2% | $447,495 | $282,388 | - The company has one multifamily asset with 775 units under construction and a development pipeline of 18 assets with 9.3 million square feet of estimated potential development density[70] Detailed Financial Information This section provides detailed financial statements and reconciliations, including consolidated balance sheets, statements of operations, and specific non-GAAP metrics for unconsolidated ventures, tangible assets/liabilities, EBITDA, FFO, FAD, third-party services, G&A expenses, and various NOI summaries, offering a comprehensive view of the company's financial position and performance Condensed Consolidated Balance Sheets This section presents the detailed condensed consolidated balance sheets, outlining the company's assets, liabilities, and equity as of September 30, 2024, and December 31, 2023 Condensed Consolidated Balance Sheets (in thousands) | Asset/Liability | Sep 30, 2024 | Dec 31, 2023 | | :---------------------------------- | :----------- | :----------- | | ASSETS: | | | | Real estate, net | $4,429,977 | $4,536,759 | | Cash and cash equivalents | $136,983 | $164,773 | | Investments in unconsolidated real estate ventures | $100,682 | $264,281 | | Total Assets | $5,182,477 | $5,518,515 | | LIABILITIES & EQUITY: | | | | Mortgage loans, net | $1,816,156 | $1,783,014 | | Revolving credit facility | $90,000 | $62,000 | | Term loans, net | $717,578 | $717,172 | | Total liabilities | $2,841,880 | $2,825,929 | | Total equity | $1,895,652 | $2,251,849 | | Total Liabilities, Redeemable Noncontrolling Interests and Equity | $5,182,477 | $5,518,515 | Condensed Consolidated Statements of Operations This section provides the detailed condensed consolidated statements of operations, showing revenues, expenses, and net loss for Q3 2024 and Q3 2023 Condensed Consolidated Statements of Operations (in thousands, Q3 2024 vs. Q3 2023) | Item | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | Total revenue | $136,026 | $151,562 | | Total expenses | $129,756 | $136,793 | | Total other income (expense) | $(36,748) | $(80,793) | | Net loss | $(31,309) | $(66,101) | | Net loss attributable to common shareholders | $(26,980) | $(58,007) | | Loss per common share - diluted | $(0.32) | $(0.58) | Unconsolidated Real Estate Ventures - Balance Sheet and Operating Information This section details the balance sheet and operating information for unconsolidated real estate ventures, reflecting JBG SMITH's share of assets, liabilities, revenues, and expenses Unconsolidated Real Estate Ventures (in thousands, at JBG SMITH Share) | Item | Sep 30, 2024 | | :---------------------------------- | :----------- | | BALANCE SHEET INFORMATION: | | | Total real estate, at cost | $167,752 | | Real estate, net | $151,774 | | Total assets | $168,902 | | Borrowings, net | $66,693 | | Total liabilities | $78,551 | | OPERATING INFORMATION (Q3 2024): | | | Total revenue | $2,286 | | Total expenses | $2,377 | | Interest expense | $(1,041) | | Net loss | $(1,108) | | Income (loss) from unconsolidated real estate ventures, net | $(745) | Other Tangible Assets and Liabilities This section outlines other tangible assets and liabilities at JBG SMITH's share, including restricted cash, receivables, payables, and other liabilities as of September 30, 2024 Other Tangible Assets and Liabilities (in thousands, at JBG SMITH Share, as of Sep 30, 2024) | Item | Amount | | :---------------------------------- | :----- | | Other Tangible Assets, Net: | | | Restricted cash | $34,117 | | Tenant and other receivables, net | $31,339 | | Other assets, net | $108,147 | | Total Other Tangible Assets, Net | $173,603 | | Other Tangible Liabilities, Net: | | | Accounts payable and accrued liabilities | $100,643 | | Other liabilities, net | $82,686 | EBITDA, EBITDAre and Adjusted EBITDA Reconciliations (Non-GAAP) This section provides detailed non-GAAP reconciliations for EBITDA, EBITDAre, and Adjusted EBITDA, along with the Net Debt to Annualized Adjusted EBITDA ratio for Q3 2024 and Q3 2023 EBITDA, EBITDAre and Adjusted EBITDA (in thousands, Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | Net loss | $(31,309) | $(66,101) | | EBITDA | $56,676 | $16,641 | | EBITDAre | $62,028 | $77,720 | | Adjusted EBITDA | $60,010 | $76,313 | | Net Debt to Annualized Adjusted EBITDA | 10.6x | 8.1x | | Total consolidated and unconsolidated indebtedness | $2,682,417 | $2,603,346 | FFO, Core FFO and FAD Reconciliations (Non-GAAP) This section presents detailed non-GAAP reconciliations for FFO, Core FFO, and FAD, including per share amounts and the FAD payout ratio for Q3 2024 and Q3 2023 FFO, Core FFO and FAD (in thousands, Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | FFO Attributable to Common Shareholders | $19,499 | $40,098 | | Core FFO Attributable to Common Shareholders | $19,292 | $41,040 | | FFO per common share - diluted | $0.23 | $0.40 | | Core FFO per common share - diluted | $0.23 | $0.40 | | FAD available to OP Units (A) | $18,450 | $43,909 | | Distributions to common shareholders and unitholders (B) | $17,891 | $26,801 | | FAD Payout Ratio (B÷A) | 97.0% | 61.0% | Third-Party Asset Management and Real Estate Services Business (Non-GAAP) This section details the non-GAAP financial performance of the third-party asset management and real estate services business, including revenue breakdown and adjusted general and administrative expenses for Q3 2024 Third-Party Asset Management and Real Estate Services Business (in thousands, Q3 2024) | Service Revenue Type | Amount | | :---------------------------------- | :----- | | Property management fees | $3,903 | | Asset management fees | $1,139 | | Development fees | $323 | | Leasing fees | $998 | | Construction management fees | $342 | | Other service revenue | $1,551 | | Total Revenue | $8,256 | | Pro rata adjusted general and administrative expense: third-party real estate services | $(7,166) | | Total Services Revenue Less Allocated General and Administrative Expenses | $1,090 | Pro Rata Adjusted General and Administrative Expenses (Non-GAAP) This section provides a non-GAAP reconciliation of pro rata adjusted general and administrative expenses, detailing corporate and third-party service allocations for Q3 2024 Pro Rata Adjusted General and Administrative Expenses (in thousands, Q3 2024) | Item | Statement of Operations | Adjustments (A) | Adjustments (B) | Pro Rata Adjusted | | :---------------------------------- | :---------------------- | :-------------- | :-------------- | :---------------- | | Corporate and other | $11,881 | — | $334 | $12,215 | | Third-party real estate services | $16,088 | $(8,588) | $(334) | $7,166 | | Total | $27,969 | $(8,588) | — | $19,381 | Same Store NOI (Non-GAAP) This section presents the non-GAAP Same Store NOI for multifamily, commercial, and ground leases, detailing revenue, expenses, and percentage change for Q3 2024 versus Q3 2023 Same Store NOI (in thousands, at JBG SMITH share, Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | % Change | | :---------------------------------- | :------ | :------ | :------- | | Multifamily: | | | | | Revenue | $50,668 | $49,016 | 3.4% | | Expenses | $(20,430) | $(19,790) | 3.2% | | Same Store NOI | $30,238 | $29,226 | 3.5% | | Commercial: | | | | | Revenue | $60,311 | $63,266 | (4.7%) | | Expenses | $(22,773) | $(24,831) | (8.3%) | | Same Store NOI | $37,538 | $38,435 | (2.3%) | | Ground Leases: | | | | | Same Store NOI | $809 | $593 | 36.4% | | Total Same Store NOI | $68,585 | $68,254 | 0.5% | | Non-Same Store NOI | $2,012 | $11,607 | (82.7%) | | Total Operating Portfolio NOI | $70,597 | $79,861 | (11.6%) | Summary NOI (Non-GAAP) This section provides a non-GAAP summary of Net Operating Income (NOI) across consolidated, unconsolidated, multifamily, commercial, and ground lease segments for Q3 2024 Summary NOI (in thousands, Q3 2024) | Item | Consolidated | Unconsolidated | Multifamily | Commercial | Ground Leases | Total at JBG SMITH Share | | :---------------------------------- | :----------- | :------------- | :---------- | :--------- | :------------ | :----------------------- | | Number of operating assets | 39 | 2 | 16 | 23 | 2 | 41 | | Total revenue | $115,191 | $2,420 | $56,479 | $60,311 | $821 | $117,611 | | Total expenses | $(46,094) | $(920) | $(24,222) | $(22,780) | $(12) | $(47,014) | | Operating Portfolio NOI | $69,097 | $1,500 | $32,257 | $37,531 | $809 | $70,597 | | Annualized NOI | $276,388 | $6,000 | $129,028 | $150,124 | $3,236 | $282,388 | | Annualized Free Rent (at JBG SMITH Share) | $37,196 | $128 | $8,156 | $27,500 | $1,668 | $37,324 | | % occupied (at JBG SMITH Share) | 84.2% | 86.0% | 90.6% | 79.1% | — | 84.2% | Summary NOI - Multifamily (Non-GAAP) This section details the non-GAAP Summary NOI for the multifamily portfolio, broken down by submarket (National Landing, DC, MD) for Q3 2024 Summary NOI – Multifamily (in thousands, Q3 2024, at JBG SMITH Share) | Item | Total | National Landing | DC | MD | | :---------------------------------- | :---- | :--------------- | :-- | :-- | | Number of operating assets | 16 | 6 | 9 | 1 | | Total revenue | $56,479 | $25,484 | $27,332 | $3,663 | | Total expenses | $(24,222) | $(11,339) | $(12,120) | $(763) | | Operating Portfolio NOI | $32,257 | $14,145 | $15,212 | $2,900 | | Annualized NOI | $129,028 | $56,580 | $60,848 | $11,600 | | % occupied | 90.6% | 86.7% | 95.1% | 94.1% | Summary NOI - Commercial (Non-GAAP) This section provides the non-GAAP Summary NOI for the commercial portfolio, categorized by consolidated, unconsolidated, National Landing, and other segments for Q3 2024 Summary NOI – Commercial (in thousands, Q3 2024, at JBG SMITH Share) | Item | Consolidated | Unconsolidated | National Landing | Other | Total | | :---------------------------------- | :----------- | :------------- | :--------------- | :---- | :---- | | Number of operating assets | 21 | 2 | 18 | 5 | 23 | | Total revenue | $57,891 | $2,420 | $51,547 | $8,764 | $60,311 | | Total expenses | $(21,860) | $(920) | $(19,331) | $(3,449) | $(22,780) | | Operating Portfolio NOI | $36,031 | $1,500 | $32,216 | $5,315 | $37,531 | | Annualized NOI | $144,124 | $6,000 | $128,864 | $21,260 | $150,124 | | % occupied | 78.9% | 86.0% | 78.3% | 83.4% | 79.1% | Leasing Activity Details This section provides detailed insights into leasing activities, including signed but not yet commenced leases for multifamily and commercial properties, effective lease rates and renewal rates for multifamily, and comprehensive office leasing statistics. It also covers lease expiration schedules and the concentration and diversity of tenants across the portfolio Signed But Not Yet Commenced Leases This section details the annualized total estimated rent for signed but not yet commenced leases across multifamily and commercial properties as of September 30, 2024 Signed But Not Yet Commenced Leases (in thousands, at JBG SMITH Share, as of Sep 30, 2024) | Asset Type | Annualized Total Estimated Rent | | :---------------------------------- | :------------------------------ | | Multifamily (Operating) | $1,588 | | Commercial (Operating, Consolidated) | $2,440 | | Commercial (Operating, Unconsolidated) | $80 | | Total | $4,108 | Leasing Activity - Multifamily This section presents multifamily leasing activity, including effective new and renewal lease rates, blended rates, and renewal rates for Q3 2024 versus Q3 2023 Multifamily Leasing Activity (Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | | :---------------------------------- | :------ | :------ | | Effective new lease rates | 4.5% | 3.2% | | Effective renewal lease rates | 6.1% | 5.0% | | Effective blended lease rates | 5.4% | 4.1% | | Renewal rate | 60.0% | 56.3% | Leasing Activity - Office This section details office leasing activity, including square footage leased, breakdown by new and renewal leases, weighted average lease terms, and rental rate changes for Q3 2024 and YTD 2024 Office Leasing Activity (Q3 2024 vs. YTD 2024) | Metric | Q3 2024 | YTD 2024 | | :---------------------------------- | :------ | :------- | | Square feet leased (at JBG SMITH Share) | 150,000 | 496,000 | | First-generation space: New | 5,000 | 51,000 | | Second-generation space: New | 41,000 | 190,000 | | Second-generation space: Renewal | 104,000 | 255,000 | | Weighted average lease term | 6.3 years | 6.0 years | | Weighted average Free Rent period | 4.0 months | 4.6 months | | Second-generation space cash basis % change | 1.2% | 1.5% | | Second-generation space GAAP basis % change | 8.4% | 9.6% | Lease Expirations This section provides a schedule of lease expirations, detailing the number of leases, square footage, and annualized rent by year, along with the weighted average remaining lease term Lease Expirations (as of Sep 30, 2024, at JBG SMITH Share) | Year of Lease Expiration | Number of Leases | Square Feet | % of Total Square Feet | Annualized Rent (in thousands) | % of Total Annualized Rent | | :---------------------------------- | :--------------- | :---------- | :--------------------- | :----------------------------- | :------------------------- | | Month-to-Month | 35 | 184,317 | 3.2% | $6,239 | 2.4% | | 2024 | 31 | 413,200 | 7.2% | $18,707 | 7.1% | | 2025 | 62 | 502,192 | 8.7% | $23,500 | 9.0% | | 2026 | 43 | 225,446 | 3.9% | $11,146 | 4.2% | | 2027 | 39 | 594,998 | 10.3% | $28,756 | 11.0% | | 2028 | 32 | 389,858 | 6.8% | $17,991 | 6.9% | | 2029 | 31 | 249,274 | 4.3% | $11,774 | 4.5% | | 2030 | 23 | 621,682 | 10.8% | $30,619 | 11.7% | | 2031 | 26 | 560,031 | 9.7% | $21,546 | 8.2% | | 2032 | 18 | 630,083 | 10.9% | $25,499 | 9.7% | | Thereafter | 75 | 1,400,343 | 24.2% | $66,520 | 25.3% | | Total / Weighted Average | 415 | 5,771,424 | 100.0% | $262,297 | 100.0% | - The weighted average remaining lease term for the entire portfolio (office and retail) is 5.6 years[94] Tenant Concentration This section identifies the top five tenant concentrations, detailing their number of leases, square footage, and contribution to total annualized rent as of September 30, 2024 Top 5 Tenant Concentration (as of Sep 30, 2024, at JBG SMITH Share) | Rank | Tenant | Number of Leases | Square Feet | % of Total Square Feet | Annualized Rent (in thousands) | % of Total Annualized Rent | | :--- | :---------------------------------- | :--------------- | :---------- | :--------------------- | :----------------------------- | :------------------------- | | 1 | U.S. Government (GSA) | 35 | 1,697,058 | 29.4% | $67,577 | 25.8% | | 2 | Amazon | 3 | 357,339 | 6.2% | $16,317 | 6.2% | | 3 | Lockheed Martin Corporation | 2 | 207,095 | 3.6% | $10,275 | 3.9% | | 4 | Public Broadcasting Service | 1 | 120,328 | 2.1% | $4,962 | 1.9% | | 5 | Accenture LLP | 2 | 102,756 | 1.8% | $4,942 | 1.9% | Industry Diversity This section outlines the top five industry diversity segments, detailing their number of leases, square footage, and contribution to total annualized rent as of September 30, 2024 Top 5 Industry Diversity (as of Sep 30, 2024, at JBG SMITH Share) | Rank | Industry | Number of Leases | Square Feet | % of Total Square Feet | Annualized Rent (in thousands) | % of Total Annualized Rent | | :--- | :---------------------------------- | :--------------- | :---------- | :--------------------- | :----------------------------- | :------------------------- | | 1 | Government | 39 | 1,706,415 | 29.6% | $68,051 | 25.9% | | 2 | Government Contractors | 89 | 1,364,599 | 23.6% | $65,510 | 25.0% | | 3 | Business Services | 26 | 693,959 | 12.0% | $33,107 | 12.6% | | 4 | Member Organizations | 35 | 489,105 | 8.5% | $24,533 | 9.4% | | 5 | Health Services | 26 | 244,267 | 4.2% | $10,991 | 4.2% | Property Data Tables This section provides detailed property tables for multifamily, commercial, under-construction, and development pipeline assets. It includes information on ownership, square footage, units, leasing and occupancy rates, annualized rent, and development schedules, offering a granular view of the company's real estate portfolio Property Table - Multifamily This section presents detailed data for multifamily assets, including in-service, recently delivered, and under-construction properties, with units, leasing/occupancy rates, and annualized rent by submarket Multifamily Assets (at JBG SMITH Share, as of Sep 30, 2024) | Submarket | Number of Units | Multifamily % Leased | Multifamily % Occupied | Annualized Rent (in thousands) | | :---------------------------------- | :-------------- | :------------------- | :--------------------- | :----------------------------- | | In-Service assets: | | | | | | National Landing | 2,856 | 97.5% | 96.4% | $75,837 | | DC | 2,795 | 96.8% | 95.1% | $90,971 | | MD | 322 | 95.0% | 94.1% | $13,722 | | Total In-Service | 5,973 | 97.0% | 95.7% | $180,530 | | Recently Delivered assets: | | | | | | Total Recently Delivered | 808 | 60.7% | 55.1% | $17,499 | | Operating - Total/Weighted Average | 6,781 | 92.7% | 90.6% | $198,029 | | Under-Construction assets: | | | | | | Total Under-Construction | 775 | N/A | N/A | N/A | Property Table - Commercial This section provides detailed data for commercial assets, including office and retail properties, with leasing/occupancy rates and annualized rent by submarket Commercial Assets (at JBG SMITH Share, as of Sep 30, 2024) | Submarket | Office % Leased | Office % Occupied | Retail % Occupied | Annualized Rent (in thousands) | | :---------------------------------- | :-------------- | :---------------- | :---------------- | :----------------------------- | | National Landing | 80.2% | 78.3% | 95.3% | $203,225 | | Other | 83.6% | 83.4% | 85.7% | $46,241 | | Total at JBG SMITH Share | 80.7% | 79.1% | 94.8% | $249,466 | - Reconciliation of operating assets shows 23 commercial assets totaling 7,230,808 SF at 100% share and 6,895,964 SF at JBG SMITH Share as of Q3 2024[104] - Certain commercial assets contain space held for development or not available for lease, which is excluded from square footage, leased, and occupancy metrics[105][106] Property Table - Under-Construction This section details the under-construction property, 2000/2001 South Bell Street, including its estimated construction schedule, units, square footage, and stabilized NOI Under-Construction Property (at JBG SMITH Share, as of Sep 30, 2024) | Asset | Submarket | Square Feet | Number of Units | Estimated Construction Start Date | Estimated Completion Date | Estimated Stabilization Date | Estimated Stabilized NOI (in millions) | | :---------------------------------- | :---------- | :---------- | :-------------- | :------------------------------ | :------------------------ | :--------------------------- | :------------------------------------- | | 2000/2001 South Bell Street | National Landing | 580,966 | 775 | Q1 2022 | Q1 2025 - Q3 2025 | Q4 2026 | $21.1 | - JBG SMITH is the development manager and master lessee for 2000/2001 South Bell Street, which is consolidated as a variable interest entity (VIE)[108] Property Table - Development Pipeline This section outlines the development pipeline, listing 18 assets with estimated potential development density and units, along with earliest potential construction start dates Development Pipeline (at JBG SMITH Share, as of Sep 30, 2024) | Location | Estimated Potential Development Density (SF) | Estimated Number of Units | | :---------------------------------- | :----------------------------------------- | :------------------------ | | National Landing | 7,224,100 | 5,565 | | DC | 2,107,000 | 1,935 | | Total | 9,331,100 | 7,500 | | Fully Entitled | 4,734,200 | 4,145 | - The pipeline includes 18 assets, with earliest potential construction start dates ranging from 2024 to 2026, subject to entitlements, design, and market conditions[109][110] - Office developments are pre-lease dependent, and some assets are controlled through options to acquire leasehold interests[110] Disposition Activity JBG SMITH completed $263.6 million in disposition activity year-to-date 2024. This includes the sale of North End Retail for $14.3 million and Central Place Tower for $162.5 million in Q1, and Fort Totten Square for $86.8 million in Q3 Disposition Activity (in thousands, at JBG SMITH Share, YTD 2024) | Asset | Asset Type | Location | Date Disposed | Total Square Feet / Units | Gross Sales Price | | :---------------------------------- | :--------- | :--------- | :------------ | :------------------------ | :---------------- | | North End Retail | Multifamily | Washington, DC | Jan 22, 2024 | 27,355 SF | $14,250 | | Central Place Tower | Commercial | Arlington, VA | Feb 13, 2024 | 275,797 SF | $162,500 | | Fort Totten Square | Multifamily | Washington, DC | Sep 17, 2024 | 345 Units / 130,664 Retail SF | $86,800 | | Total | | | | | $263,550 | Debt Details As of September 30, 2024, JBG SMITH's total consolidated and unconsolidated principal balance was $2.71 billion. The debt portfolio is 68.6% fixed rate and 31.4% floating rate, with a weighted average interest rate of 5.08%. The company has $644.3 million in undrawn capacity under its revolving credit facility Debt Summary This section summarizes the company's debt profile by type and maturity, including principal balances, interest rates, and fixed/floating rate percentages as of September 30, 2024 Debt Summary (in thousands, at JBG SMITH Share, as of Sep 30, 2024) | Debt Type | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | | :---------------------------------- | :--- | :--- | :--- | :--- | :--- | :--------- | :---------- | | Unsecured Debt | — | — | $200,000 | $90,000 | $520,000 | — | $810,000 | | Secured Debt | $120,933 | $340,710 | $321,976 | $358,301 | $85,000 | $670,003 | $1,896,923 | | Total Principal Balance | $120,933 | $340,710 | $521,976 | $448,301 | $605,000 | $670,003 | $2,706,923 | | % of total debt maturing | 4.5% | 12.6% | 19.3% | 16.6% | 22.4% | 24.6% | 100.0% | | % floating rate | — | — | 52.6% | 60.8% | 14.0% | 32.5% | 31.4% | | % fixed rate | 100.0% | 100.0% | 47.4% | 39.2% | 86.0% | 67.5% | 68.6% | | Total Weighted Average Interest Rates | 3.97% | 3.61% | 6.05% | 5.71% | 4.77% | 5.15% | 5.08% | Revolving Credit Facility and Term Loans (in thousands) | Facility | Credit Limit | Outstanding Principal Balance | Undrawn Capacity | All-In Interest Rate | | :---------------------------------- | :----------- | :---------------------------- | :--------------- | :------------------- | | Revolving Credit Facility | $750,000 | $90,000 | $644,333 | 6.46% | | Tranche A-1 Term Loan | $200,000 | $200,000 | — | 5.34% | | Tranche A-2 Term Loan | $400,000 | $400,000 | — | 4.20% | | 2023 Term Loan | $120,000 | $120,000 | — | 5.41% | | Total / Weighted Average | $1,470,000 | $810,000 | $644,333 | 4.91% | Debt by Instrument This section provides a detailed breakdown of consolidated and unconsolidated debt by individual instrument, including principal balance, interest rates, and maturity dates as of September 30, 2024 Consolidated Debt by Instrument (in thousands, as of Sep 30, 2024) | Asset | Principal Balance | Stated Interest Rate | Interest Rate Hedge | Current Annual Interest Rate | Initial Maturity Date | Extended Maturity Date | | :---------------------------------- | :---------------- | :------------------- | :------------------ | :--------------------------- | :-------------------- | :--------------------- | | 2101 L Street | $120,933 | 3.97% | Fixed | 3.97% | 11/15/24 | 11/15/24 | | RiverHouse Apartments | $307,710 | S + 1.39% | Swap | 3.55% | 04/01/25 | 04/01/25 | | The Grace and Reva | $216,976 | S + 2.61% | Cap | 7.11% | 04/25/26 | 04/25/26 | | 1215 S. Clark Street | $105,000 | S + 1.35% | Swap | 5.17% | 12/22/26 | 12/22/26 | | Tranche A-1 Term Loan | $200,000 | S + 1.34% | Swap | 5.34% | 01/14/26 | 01/14/27 | | 8001 Woodmont | $100,414 | 4.82% | Fixed | 4.82% | 01/15/27 | 01/15/27 | | 2000/2001 South Bell Street | $147,388 | S + 2.25% | Cap | 6.77% | 01/22/27 | 01/22/27 | | 1235 S. Clark Street | $75,499 | 3.94% | Fixed | 3.94% | 11/01/27 | 11/01/27 | | Tranche A-2 Term Loan | $400,000 | S + 1.39% | Swap | 4.20% | 01/13/28 | 01/13/28 | | Revolving Credit Facility | $90,000 | S + 1.50% | — | 6.46% | 06/29/27 | 06/29/28 | | 2023 Term Loan | $120,000 | S + 1.40% | Swap | 5.41% | 06/29/28 | 06/29/28 | | 1225 S. Clark Street | $85,000 | S + 1.70% | — | 6.55% | 07/27/28 | 07/27/28 | | WestEnd25 | $97,500 | S + 1.45% | Swap | 4.16% | 08/05/29 | 08/05/29 | | Multifamily Credit Facility | $187,557 | 5.13% | Fixed | 5.13% | 02/01/30 | 02/01/30 | | 1221 Van Street | $87,253 | S + 2.62% | Swap | 6.59% | 08/01/30 | 08/01/30 | | 220 20th Street | $80,240 | S + 2.62% | Swap | 6.60% | 08/01/30 | 08/01/30