Company Announcements

JBG SMITH Announces Second Quarter 2021 Results

BETHESDA, Md.--(BUSINESS WIRE)--Aug. 3, 2021-- JBG SMITH (NYSE: JBGS), a leading owner and developer of high-growth, mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended June 30, 2021 and reported its financial results.

Additional information regarding our results of operations, properties and tenants can be found in our Second Quarter 2021 Investor Package and Investor Presentation, which are posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in those documents.

Second Quarter 2021 Highlights

  • For the three months ended June 30, 2021, net loss attributable to common shareholders of $0.03 per diluted share, Funds From Operations ("FFO") attributable to common shareholders of $0.29 per diluted share and Core Funds From Operations ("Core FFO") attributable to common shareholders of $0.34 per diluted share.

 

 

 

 

 

 

 

 

 

 

 

 

 

SECOND QUARTER COMPARISON

 

 

in millions, except per share amounts

 

Three Months Ended

Three Months Ended

 

 

 

 

June 30, 2021

June 30, 2020

 

 

 

 

Amount

Per Diluted Share

Amount

Per Diluted Share

 

 

Net loss

 

$

(3.0)

$

(0.03)

$

(36.8)

$

(0.28)

 

 

FFO

 

$

37.9

$

0.29

$

23.7

$

0.18

 

 

Core FFO

 

$

44.8

$

0.34

$

34.1

$

0.26

 


Note: All the above are attributable to common shareholders.

  • Annualized Net Operating Income ("NOI") for the three months ended June 30, 2021 was $330.7 million, compared to $322.2 million for the three months ended March 31, 2021, at our share.
  • Same Store Net Operating Income ("SSNOI") at our share increased 0.4% year-over-year to $76.5 million for the three months ended June 30, 2021.
    • The increase in SSNOI for the three months ended June 30, 2021 is largely attributable to lower reserves and rent deferrals, partially offset by lower occupancy in our commercial portfolio, and lower rents and higher concessions in our multifamily portfolio.
  • SSNOI at our share decreased 4.6% year-over-year to $152.2 million for the six months ended June 30, 2021.
    • We believe the decrease in SSNOI for the six months ended June 30, 2021 was substantially attributable to the COVID-19 pandemic, which commenced at the end of the first quarter of 2020, including (i) higher concessions, lower rents and higher operating costs in our multifamily portfolio and (ii) lower occupancy and a decline in parking revenue in our commercial portfolio. These declines were partially offset by the burn-off of rent abatement, a decrease in reserves and rent deferrals, and a decrease in cleaning expenses across our commercial portfolio.
  • NOI for our operating portfolio increased 9.7% year-over-year to $83.0 million, and Adjusted EBITDA increased 21.8% year-over-year to $70.8 million for the three months ended June 30, 2021.
    • We believe our financial results were negatively impacted by the COVID-19 pandemic and will continue to be in the short-term given the pandemic’s impact on certain income streams.
      • We have entered into or are negotiating agreements with certain tenants, many of which have been placed on the cash basis of accounting, resulting in the reserve, deferral to future periods, or abatement of $2.5 million of rent that had been contractually due in the second quarter of 2021. Revenue related to these executed or pending rent deferrals is not included in our second quarter NOI, Adjusted EBITDA or Core FFO. With 95% of our retail tenants now open for business, we expect the need to enter into additional deferrals to decrease as we enter the fall, unless new restrictions are imposed.
      • Although parking revenue remained relatively flat during the three months ended June 30, 2021 as compared to the same period in 2020, parking revenue in our commercial portfolio was approximately 50% of pre-pandemic levels of approximately $30 million annually.
      • SSNOI for our multifamily portfolio remained depressed compared to Q2 2020. However, we continued to see an improvement in fundamentals, with the in-service portfolio increasing to 95.0% leased and asking rents almost fully recovered, ending the quarter only 2.0% below March 2020 rents.

Operating Portfolio

  • The operating commercial portfolio was 85.9% leased and 84.4% occupied as of June 30, 2021, compared to 87.3% and 86.9% as of March 31, 2021, at our share.
  • The operating multifamily portfolio was 91.6% leased and 86.3% occupied as of June 30, 2021, compared to 91.0% and 85.9% as of March 31, 2021, at our share. Our operating in-service multifamily portfolio was 95.0% leased and 89.8% occupied as of June 30, 2021, compared to 92.3% and 88.4% as of March 31, 2021, at our share.
  • Executed approximately 715,000 square feet of office leases at our share during the three months ended June 30, 2021, comprising approximately 118,000 square feet of new leases and approximately 597,000 square feet of second-generation leases, which generated a 1.3% rental rate increase on a GAAP basis and a 2.1% rental rate increase on a cash basis.
  • Executed approximately 1.1 million square feet of office leases at our share during the six months ended June 30, 2021, comprising approximately 142,000 square feet of new leases and approximately 917,000 square feet of second-generation leases, which generated a 3.8% rental rate increase on a GAAP basis and a 0.3% rental rate increase on a cash basis.

Development Portfolio

Under-Construction

  • As of June 30, 2021, we had one multifamily asset under construction consisting of 808 units at our share.
  • In the second quarter, 8001 Woodmont (formerly known as 7900 Wisconsin Avenue) was placed into the operating multifamily portfolio as recently delivered.

Near-Term Development Pipeline

  • As of June 30, 2021, we had 11 near-term development pipeline assets consisting of 5.0 million square feet of estimated potential development density at our share.

Future Development Pipeline

  • As of June 30, 2021, we had 26 future development pipeline assets consisting of 11.9 million square feet of estimated potential development density at our share, including the 2.1 million square feet held for sale to Amazon.com, Inc. ("Amazon").

Third-Party Asset Management and Real Estate Services Business

  • For the three months ended June 30, 2021, revenue from third-party real estate services, including reimbursements, was $26.7 million. Excluding reimbursements and service revenue from our interests in consolidated and unconsolidated real estate ventures, revenue from our third-party asset management and real estate services business was $14.1 million, primarily driven by $6.4 million of property and asset management fees, $4.4 million of development fees, $1.6 million of other service revenue and $1.4 million of leasing fees.

Balance Sheet

  • As of June 30, 2021, our total enterprise value was approximately $6.7 billion, comprising 145.1 million common shares and units valued at $4.6 billion, and debt (net of premium / (discount) and deferred financing costs) at our share of $2.4 billion, less cash and cash equivalents at our share of $217.5 million.
  • As of June 30, 2021, we had $201.2 million of cash and cash equivalents ($217.5 million of cash and cash equivalents at our share), and $998.5 million of capacity under our credit facility.
  • Net debt to annualized Adjusted EBITDA at our share for the three months ended June 30, 2021 was 7.6x and our net debt / total enterprise value was 32.1% as of June 30, 2021.

Investing and Financing Activities

  • As previously announced, in April, we entered into a real estate venture with an institutional investor advised by J.P. Morgan Global Alternatives to design, develop, manage and own approximately 2.0 million square feet of new mixed-use development (1.1 million square feet of office and 900,000 square feet of multifamily) located in Potomac Yard, the southern portion of National Landing. Our venture partner contributed a land site that is entitled for 1.3 million square feet of development it controlled at Potomac Yard Landbay F, while we contributed the adjacent land with over 700,000 square feet of estimated development capacity at Potomac Yard Landbay G. In addition to our 50.0% ownership in the venture, we will act as pre-developer, developer, property manager and leasing agent for all future commercial and residential properties on the site. As a result of this transaction, our at share ownership of development rights in Potomac Yard increased by over 285,000 square feet, increasing our economic ownership interest in this emerging-growth submarket to 79% of all unencumbered future development pipeline density. We recognized an $11.3 million gain on the land contributed to the real estate venture, based on the cash received and the remeasurement of our retained interest in the asset.
  • In May 2021, we recognized an aggregate gain of $5.2 million from the sale of various assets by our unconsolidated real estate ventures.

Subsequent to June 30, 2021

  • In July 2021, we entered into a mortgage loan with a principal balance of $85.0 million, collateralized by 1225 S. Clark Street. The mortgage loan has a seven-year term and an interest rate of LIBOR plus 1.60% per annum.

Dividends

  • On July 29, 2021, our Board of Trustees declared a quarterly dividend of $0.225 per common share, payable on August 27, 2021 to shareholders of record as of August 13, 2021.

About JBG SMITH

JBG SMITH owns, operates, invests in and develops a dynamic portfolio of mixed-use properties in the high growth and high barrier-to-entry submarkets in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Over half of JBG SMITH’s holdings are in the National Landing submarket in Northern Virginia, where it serves as the exclusive developer for Amazon’s new headquarters, and where Virginia Tech’s planned new $1 billion Innovation Campus is located. JBG SMITH's portfolio currently comprises 17.2 million square feet of high-growth office, multifamily and retail assets at share, 98% of which are metro-served. It also maintains a development pipeline encompassing 17.0 million square feet of mixed-use development opportunities. For more information on JBG SMITH please visit www.jbgsmith.com.

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", the "Company", "we", "us", "our" or similar terms) 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", "hypothetical", "potential", "believes", "expects", "anticipates", "estimates", "intends", "plans", "would", "may" or similar expressions in this earnings release. One of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the adverse effect of the current pandemic of the novel coronavirus, or COVID-19, and the ensuing economic turmoil on the Company, our financial condition, results of operations, cash flows, performance, our tenants, the real estate market, and the global economy and financial markets. The extent to which COVID-19 continues to impact us and our tenants depends on future developments, many of which are highly uncertain and cannot be predicted with confidence. These developments include: the continued severity, duration, transmission rate and geographic spread of COVID-19 in the United States, the speed of the vaccine distribution, the effectiveness and willingness of people to take COVID-19 vaccines, the duration of associated immunity and vaccine efficacy against variants of COVID-19, the extent and effectiveness of other containment measures taken, and the response of the overall economy, the financial markets and the population, particularly in areas in which we operate, once the current containment measures are lifted and whether the residential market in the Washington, DC area and any of our properties will be materially impacted by the various moratoriums on residential evictions, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. We also note the following forward-looking statements: the impact of COVID-19 and the ensuing economic turmoil on our Company, NOI, SSNOI, net asset value, share price, occupancy rates, revenue from our multifamily and commercial portfolios, operating costs, deferrals of rent, uncollectable operating lease receivables, parking revenue, and burn-off of rent abatement; the impact of disruptions to the credit and capital markets on our ability to access capital, including refinancing maturing debt; changes to the amount and manner in which tenants use space; whether we incur additional costs or make additional concessions or offer other incentives to existing or prospective tenants to reconfigure space; whether the Washington, DC area will be more resilient than other parts of the country in any recession resulting from COVID-19; our annual dividend per share and dividend yield; annualized NOI; whether in the case of our under-construction and near-term development pipeline assets, estimated square feet, estimated number of units and in the case of our future development pipeline assets, estimated potential development density are accurate; expected key Amazon transaction terms and timeframes for closing any Amazon transactions not yet closed; planned infrastructure and educational improvements related to Amazon's additional headquarters and the Virginia Tech Innovation Campus; the economic impact, job growth, expansion of public transportation and related demand for multifamily and commercial properties of Amazon's additional headquarters on the DC area and National Landing and the speed with which such impact occurs and Amazon’s plans for accelerated hiring and in-person work requirements; the impact of our role as the exclusive developer, property manager and retail leasing agent in connection with Amazon's new headquarters; our development plans related to Amazon's additional headquarters; whether any of our tenants succeed in obtaining government assistance under the CARES Act and other programs and use any resulting proceeds to make lease payments owed to us; whether we can access agency debt secured by our currently unencumbered multifamily assets timely, on reasonable terms or at all; whether the delay in our planned 2020 discretionary operating asset capital expenditures had or will have any negative impact on our properties or our ability to generate revenue; and whether the allocation of capital to our share repurchase plan has any impact on our share price.

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, including in relation to COVID-19, 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," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10‑K for the year ended December 31, 2020 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 date hereof.

Pro Rata Information

We present certain financial information and metrics in this release "at JBG SMITH Share," which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, "real estate ventures") as applied to these financial 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.

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.

Non-GAAP Financial Measures

This release includes non-GAAP financial measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why JBG SMITH's management believes that the presentation of these measures provides useful information to investors regarding JBG SMITH's financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this earnings release. Our presentation of non-GAAP financial measures may not be comparable to similar non-GAAP measures used by other companies. In addition to "at share" financial information, the following non-GAAP measures are included in this release:

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre") and "Adjusted EBITDA" are non-GAAP financial measures. EBITDA and EBITDAre are used by management as supplemental operating performance measures, which we believe help investors and lenders meaningfully evaluate and compare our operating performance from period-to-period by removing from our operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps) and certain non-cash expenses (primarily depreciation and amortization on our assets). EBITDAre is computed in accordance with the definition established by the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expenses, gains and losses on sales of real estate and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments of unconsolidated real estate ventures. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. EBITDA and EBITDAre are not substitutes for net income (loss) (computed in accordance with GAAP) and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of right-of-use assets associated with leases in which we are a lessee,gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments and share-based compensation expense related to the Formation Transaction and special equity awards. We believe that adjusting such items not considered part of our comparable operations, provides a meaningful measure to evaluate and compare our performance from period-to-period.

Because EBITDA, EBITDAre and Adjusted EBITDA have limitations as analytical tools, we use EBITDA, EBITDAre and Adjusted EBITDA to supplement GAAP financial measures. Additionally, we believe that users of these measures should consider EBITDA, EBITDAre and Adjusted EBITDA in conjunction with net income (loss) and other GAAP measures in understanding our operating results.

Funds from Operations ("FFO"), "Core FFO" and Funds Available for Distribution ("FAD") are non-GAAP financial measures. FFO is computed in accordance with the definition established by NAREIT in the NAREIT FFO White Paper - 2018 Restatement. NAREIT defines FFO as net income (loss) (computed in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

Core FFO represents FFO adjusted to exclude items (net of tax) which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of right-of-use assets associated with leases in which we are a lessee, gains (or losses) on extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, share-based compensation expense related to the Formation Transaction and special equity awards, lease liability adjustments, amortization of the management contracts intangible and the mark-to-market of derivative instruments.

FAD represents Core FFO less recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption payments, recurring share-based compensation expense, accretion of acquired below-market leases, net of amortization of acquired above-market leases, amortization of debt issuance costs and other non-cash income and charges. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

We believe FFO, Core FFO and FAD are meaningful non‑GAAP financial measures useful in comparing our levered operating performance from period-to-period and as compared to similar real estate companies because these non‑GAAP measures exclude real estate depreciation and amortization expense and other non-comparable income and expenses, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions. FFO, Core FFO and FAD do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as a performance measure or cash flow as a liquidity measure. FFO, Core FFO and FAD may not be comparable to similarly titled measures used by other companies.

"Net Debt" is a non-GAAP financial measurement. Net Debt represents our total consolidated and unconsolidated indebtedness less cash and cash equivalents at our share. Net Debt is an important component in the calculations of Net Debt to Annualized Adjusted EBITDA and Net Debt / total enterprise value. We believe that Net Debt is a meaningful non-GAAP financial measure useful to investors because we review Net Debt as part of the management of our overall financial flexibility, capital structure and leverage. We may utilize a considerable portion of our cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents at our share may not be solely controlled by us. The deduction of cash and cash equivalents at our share from consolidated and unconsolidated indebtedness in the calculation of Net Debt, therefore, should not be understood to mean that it is available exclusively for debt reduction at any given time.

Net Operating Income ("NOI") and "Annualized NOI" are non-GAAP financial measures management uses to assess a segment's performance. The most directly comparable GAAP measure is net income (loss) attributable to common shareholders. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only property related revenue (which includes base rent, tenant reimbursements and other operating revenue, net of Free Rent and payments associated with assumed lease liabilities) less operating expenses and ground rent, if applicable. NOI also excludes deferred rent, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and the amortization of acquired above-market leases and below-market ground lease intangibles. Management uses NOI as a supplemental performance measure of our assets and believes it provides useful information to investors because it reflects only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. However, because NOI excludes depreciation and amortization and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of NOI as a measure of the operating performance of our assets is limited. NOI presented by us may not be comparable to NOI reported by other REITs that define these measures differently. We believe to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) attributable to common shareholders as presented in our financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Annualized NOI, for all assets except Crystal City Marriott, represents NOI for the three months ended June 30, 2021 multiplied by four. Due to seasonality in the hospitality business, Annualized NOI for Crystal City Marriott represents the trailing 12‑month NOI as of June 30, 2021. Management believes Annualized NOI provides useful information in understanding our financial performance over a 12‑month period, however, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12‑month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this earnings release. There can be no assurance that the Annualized NOI shown will reflect our actual results of operations over any 12‑month period.

"Non-Same Store" refers to all operating assets excluded from the same store pool.

"Same Store" refers to the pool of assets that were in-service for the entirety of both periods being compared, which excludes assets for which significant redevelopment, renovation, or repositioning occurred during either of the periods being compared.

Definitions

"GAAP" refers to accounting principles generally accepted in the United States of America.

"In-Service" refers to commercial or multifamily assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of June 30, 2021.

"Formation Transaction" refers collectively to the spin-off on July 17, 2017 of substantially all of the assets and liabilities of Vornado Realty Trust's Washington, DC segment, which operated as Vornado / Charles E. Smith, and the acquisition of the management business and certain assets and liabilities of The JBG Companies.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 

 

 

 

 

 

 

 

 

 

in thousands

 

June 30, 2021

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Real estate, at cost:

 

 

 

 

 

 

 

 

Land and improvements

 

$

1,357,904

 

 

$

1,391,472

 

 

 

Buildings and improvements

 

 

4,355,187

 

 

 

4,341,103

 

 

 

Construction in progress, including land

 

 

273,542

 

 

 

268,056

 

 

 

 

 

 

5,986,633

 

 

 

6,000,631

 

 

 

Less accumulated depreciation

 

 

(1,297,406

)

 

 

(1,232,690

)

 

 

Real estate, net

 

 

4,689,227

 

 

 

4,767,941

 

 

 

Cash and cash equivalents

 

 

201,150

 

 

 

225,600

 

 

 

Restricted cash

 

 

37,543

 

 

 

37,736

 

 

 

Tenant and other receivables

 

 

43,724

 

 

 

55,903

 

 

 

Deferred rent receivable

 

 

182,565

 

 

 

170,547

 

 

 

Investments in unconsolidated real estate ventures

 

 

497,770

 

 

 

461,369

 

 

 

Other assets, net

 

 

282,356

 

 

 

286,575

 

 

 

Assets held for sale

 

 

73,876

 

 

 

73,876

 

 

 

TOTAL ASSETS

 

$

6,008,211

 

 

$

6,079,547

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgages payable, net

 

$

1,591,143

 

 

$

1,593,738

 

 

 

Revolving credit facility

 

 

 

 

 

 

 

 

Unsecured term loans, net

 

 

398,322

 

 

 

397,979

 

 

 

Accounts payable and accrued expenses

 

 

99,310

 

 

 

103,102

 

 

 

Other liabilities, net

 

 

201,556

 

 

 

247,774

 

 

 

Total liabilities

 

 

2,290,331

 

 

 

2,342,593

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 

544,639

 

 

 

530,748

 

 

 

Total equity

 

 

3,173,241

 

 

 

3,206,206

 

 

 

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

$

6,008,211

 

 

$

6,079,547

 

 


Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands, except per share data

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

Property rental

 

$

122,819

 

 

$

115,459

 

 

$

245,060

 

 

$

235,839

 

Third-party real estate services, including reimbursements

 

 

26,745

 

 

 

27,167

 

 

 

64,852

 

 

 

56,883

 

Other revenue

 

 

5,080

 

 

 

2,326

 

 

 

10,021

 

 

 

10,337

 

Total revenue

 

 

154,644

 

 

 

144,952

 

 

 

319,933

 

 

 

303,059

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

56,678

 

 

 

52,616

 

 

 

121,404

 

 

 

101,105

 

Property operating

 

 

35,000

 

 

 

33,792

 

 

 

69,731

 

 

 

68,295

 

Real estate taxes

 

 

18,558

 

 

 

17,869

 

 

 

36,868

 

 

 

36,068

 

General and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and other

 

 

13,895

 

 

 

13,216

 

 

 

26,370

 

 

 

26,392

 

Third-party real estate services

 

 

25,557

 

 

 

29,239

 

 

 

54,493

 

 

 

58,053

 

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

 

 

4,441

 

 

 

8,858

 

 

 

9,386

 

 

 

18,299

 

Transaction and Other Costs

 

 

2,270

 

 

 

1,372

 

 

 

5,960

 

 

 

6,681

 

Total expenses

 

 

156,399

 

 

 

156,962

 

 

 

324,212

 

 

 

314,893

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from unconsolidated real estate ventures, net

 

 

3,953

 

 

 

(13,485

)

 

 

3,010

 

 

 

(16,177

)

Interest and other income (loss), net

 

 

(38

)

 

 

114

 

 

 

(29

)

 

 

1,021

 

Interest expense

 

 

(16,773

)

 

 

(15,770

)

 

 

(33,069

)

 

 

(27,775

)

Gain on sale of real estate

 

 

11,290

 

 

 

 

 

 

11,290

 

 

 

59,477

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

(33

)

Total other income (expense)

 

 

(1,568

)

 

 

(29,141

)

 

 

(18,798

)

 

 

16,513

 

INCOME (LOSS) BEFORE INCOME TAX (EXPENSE) BENEFIT

 

 

(3,323

)

 

 

(41,151

)

 

 

(23,077

)

 

 

4,679

 

Income tax (expense) benefit

 

 

5

 

 

 

888

 

 

 

(4,310

)

 

 

3,233

 

NET INCOME (LOSS)

 

 

(3,318

)

 

 

(40,263

)

 

 

(27,387

)

 

 

7,912

 

Net (income) loss attributable to redeemable noncontrolling interests

 

 

345

 

 

 

3,483

 

 

 

2,575

 

 

 

(1,767

)

Net loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

1,108

 

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

 

$

(2,973

)

 

$

(36,780

)

 

$

(23,704

)

 

$

6,145

 

EARNINGS (LOSS) PER COMMON SHARE - BASIC AND DILUTED

 

$

(0.03

)

 

$

(0.28

)

 

$

(0.19

)

 

$

0.04

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED

 

 

131,480

 

 

 

133,613

 

 

 

131,510

 

 

 

134,078

 


Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2021.

EBITDA, EBITDAre AND ADJUSTED EBITDA (NON-GAAP)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA, EBITDAre and Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(3,318

)

 

$

(40,263

)

 

$

(27,387

)

 

$

7,912

 

 

 

Depreciation and amortization expense

 

 

56,678

 

 

 

52,616

 

 

 

121,404

 

 

 

101,105

 

 

 

Interest expense (1)

 

 

16,773

 

 

 

15,770

 

 

 

33,069

 

 

 

27,775

 

 

 

Income tax expense (benefit)

 

 

(5

)

 

 

(888

)

 

 

4,310

 

 

 

(3,233

)

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

 

10,581

 

 

 

10,692

 

 

 

20,745

 

 

 

21,529

 

 

 

EBITDA attributable to noncontrolling interests

 

 

(41

)

 

 

(6

)

 

 

1,030

 

 

 

(3

)

 

 

EBITDA

 

$

80,668

 

 

$

37,921

 

 

$

153,171

 

 

$

155,085

 

 

 

Gain on sale of real estate

 

 

(11,290

)

 

 

 

 

 

(11,290

)

 

 

(59,477

)

 

 

(Gain) loss on sale of unconsolidated real estate assets

 

 

(5,189

)

 

 

2,952

 

 

 

(5,189

)

 

 

2,952

 

 

 

Impairment of investment in unconsolidated real estate venture (2)

 

 

 

 

 

6,522

 

 

 

 

 

 

6,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAre

 

$

64,189

 

 

$

47,395

 

 

$

136,692

 

 

$

105,082

 

 

 

Transaction and Other Costs (3)

 

 

2,270

 

 

 

1,372

 

 

 

4,852

 

 

 

6,681

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

33

 

 

 

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

 

 

4,441

 

 

 

8,858

 

 

 

9,386

 

 

 

18,299

 

 

 

Earnings (losses) and distributions in excess of our investment in unconsolidated real estate venture

 

 

(92

)

 

 

(245

)

 

 

(422

)

 

 

129

 

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

 

9

 

 

 

747

 

 

 

40

 

 

 

1,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

70,817

 

 

$

58,127

 

 

$

150,548

 

 

$

131,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Debt to Annualized Adjusted EBITDA (4)

 

 

7.6

x

 

8.1

x

 

7.2

x

 

7.2

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2021

 

June 30, 2020

 

 

Net Debt (at JBG SMITH Share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated indebtedness (5)

 

 

 

 

 

 

 

$

1,979,494

 

 

$

2,202,667

 

 

 

Unconsolidated indebtedness (5)

 

 

 

 

 

 

 

 

399,262

 

 

 

411,599

 

 

 

Total consolidated and unconsolidated indebtedness

 

 

 

 

 

 

 

 

2,378,756

 

 

 

2,614,266

 

 

 

Less: cash and cash equivalents

 

 

 

 

 

 

 

 

217,543

 

 

 

724,246

 

 

 

Net Debt (at JBG SMITH Share)

 

 

 

 

 

 

 

$

2,161,213

 

 

$

1,890,020

 

 


Note: All EBITDA measures as shown above are attributable to common limited partnership units ("OP Units").

(1)

Interest expense includes the amortization of deferred financing costs and the ineffective portion of any interest rate swaps or caps, net of capitalized interest.

(2)

During the second quarter of 2020, we determined that our investment in the venture that owned The Marriott Wardman Park hotel was impaired due to a decline in the fair value of the underlying asset and recorded an impairment loss of $6.5 million, which reduced the net book value of our investment to zero, and we suspended equity loss recognition for the venture after June 30, 2020. On October 1, 2020, we transferred our interest in this venture to our former venture partner.

(3)

Includes demolition costs, integration and severance costs, pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. For the six months ended June 30, 2021, excludes $1.1 million of transaction costs attributable to noncontrolling interests. For the six months ended June 30, 2020, includes a charitable commitment of $4.0 million to the Washington Housing Conservancy, a non-profit that acquires and owns affordable workforce housing in the Washington, DC metropolitan area.

(4)

Calculated using the Net Debt below. Quarterly Adjusted EBITDA is annualized by multiplying by four. Adjusted EBITDA for the six months ended June 30, 2021 and 2020 is annualized by multiplying by two.

(5)

Net of premium/discount and deferred financing costs.

 

FFO, CORE FFO AND FAD (NON-GAAP)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands, except per share data

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO and Core FFO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders

 

$

(2,973

)

 

$

(36,780

)

 

$

(23,704

)

 

$

6,145

 

 

 

Net income (loss) attributable to redeemable noncontrolling interests

 

 

(345

)

 

 

(3,483

)

 

 

(2,575

)

 

 

1,767

 

 

 

Net loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

(1,108

)

 

 

 

 

 

Net income (loss)

 

 

(3,318

)

 

 

(40,263

)

 

 

(27,387

)

 

 

7,912

 

 

 

Gain on sale of real estate

 

 

(11,290

)

 

 

 

 

 

(11,290

)

 

 

(59,477

)

 

 

(Gain) loss on sale from unconsolidated real estate ventures

 

 

(5,189

)

 

 

2,952

 

 

 

(5,189

)

 

 

2,952

 

 

 

Real estate depreciation and amortization

 

 

54,475

 

 

 

49,924

 

 

 

116,975

 

 

 

95,586

 

 

 

Impairment of investment in unconsolidated real estate venture (1)

 

 

 

 

 

6,522

 

 

 

 

 

 

6,522

 

 

 

Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures

 

 

7,277

 

 

 

7,498

 

 

 

14,588

 

 

 

14,380

 

 

 

FFO attributable to noncontrolling interests

 

 

(41

)

 

 

(6

)

 

 

1,030

 

 

 

(3

)

 

 

FFO Attributable to OP Units

 

$

41,914

 

 

$

26,627

 

 

$

88,727

 

 

$

67,872

 

 

 

FFO attributable to redeemable noncontrolling interests

 

 

(4,054

)

 

 

(2,911

)

 

 

(8,539

)

 

 

(7,408

)

 

 

FFO attributable to common shareholders

 

$

37,860

 

 

$

23,716

 

 

$

80,188

 

 

$

60,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO attributable to OP Units

 

$

41,914

 

 

$

26,627

 

 

$

88,727

 

 

$

67,872

 

 

 

Transaction and Other Costs, net of tax (2)

 

 

2,241

 

 

 

1,212

 

 

 

4,793

 

 

 

6,378

 

 

 

(Gain) loss from mark-to-market on derivative instruments

 

 

46

 

 

 

17

 

 

 

(87

)

 

 

(30

)

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

33

 

 

 

Earnings (losses) and distributions in excess of our investment in unconsolidated real estate venture

 

 

(92

)

 

 

(245

)

 

 

(422

)

 

 

129

 

 

 

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

 

 

4,441

 

 

 

8,858

 

 

 

9,386

 

 

 

18,299

 

 

 

Amortization of management contracts intangible, net of tax

 

 

1,073

 

 

 

1,073

 

 

 

2,145

 

 

 

2,216

 

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

 

6

 

 

 

727

 

 

 

(4

)

 

 

1,903

 

 

 

Core FFO Attributable to OP Units

 

$

49,629

 

 

$

38,269

 

 

$

104,538

 

 

$

96,800

 

 

 

Core FFO attributable to redeemable noncontrolling interests

 

 

(4,800

)

 

 

(4,184

)

 

 

(10,060

)

 

 

(10,566

)

 

 

Core FFO attributable to common shareholders

 

$

44,829

 

 

$

34,085

 

 

$

94,478

 

 

$

86,234

 

 

 

FFO per common share - diluted

 

$

0.29

 

 

$

0.18

 

 

$

0.61

 

 

$

0.45

 

 

 

Core FFO per common share - diluted

 

$

0.34

 

 

$

0.26

 

 

$

0.72

 

 

$

0.64

 

 

 

Weighted average shares - diluted (FFO and Core FFO)

 

 

131,485

 

 

 

133,613

 

 

 

131,513

 

 

 

134,078

 

 

See footnotes under table below.

FFO, CORE FFO AND FAD (NON-GAAP)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in thousands, except per share data

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FAD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core FFO attributable to OP Units

 

$

49,629

 

 

$

38,269

 

 

$

104,538

 

 

$

96,800

 

 

 

Recurring capital expenditures and second-generation tenant improvements and leasing commissions (3)

 

 

(12,226

)

 

 

(12,889

)

 

 

(22,657

)

 

 

(22,694

)

 

 

Straight-line and other rent adjustments (4)

 

 

(4,088

)

 

 

(1,418

)

 

 

(8,853

)

 

 

(4,963

)

 

 

Third-party lease liability assumption payments

 

 

(703

)

 

 

(780

)

 

 

(1,381

)

 

 

(2,240

)

 

 

Share-based compensation expense

 

 

9,045

 

 

 

11,757

 

 

 

17,115

 

 

 

19,487

 

 

 

Amortization of debt issuance costs

 

 

1,096

 

 

 

673

 

 

 

2,201

 

 

 

1,295

 

 

 

Unconsolidated real estate ventures allocated share of above adjustments

 

 

(1,333

)

 

 

(695

)

 

 

(2,659

)

 

 

(2,193

)

 

 

Non-real estate depreciation and amortization

 

 

727

 

 

 

1,215

 

 

 

1,477

 

 

 

2,469

 

 

 

FAD available to OP Units (A)

 

$

42,147

 

 

$

36,132

 

 

$

89,781

 

 

$

87,961

 

 

 

Distributions to common shareholders and unitholders(B)

 

$

33,511

 

 

$

33,970

 

 

$

68,946

 

 

$

67,981

 

 

 

FAD Payout Ratio (B÷A) (5)

 

 

79.5

%

 

94.0

%

 

76.8

%

 

77.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maintenance and recurring capital expenditures

 

$

4,376

 

 

$

6,541

 

 

$

8,302

 

 

$

9,099

 

 

 

Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures

 

 

324

 

 

 

360

 

 

 

371

 

 

 

509

 

 

 

Second-generation tenant improvements and leasing commissions

 

 

7,454

 

 

 

5,613

 

 

 

13,518

 

 

 

12,556

 

 

 

Share of second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures

 

 

72

 

 

 

375

 

 

 

466

 

 

 

530

 

 

 

Recurring capital expenditures and second-generation tenant improvements and leasing commissions

 

 

12,226

 

 

 

12,889

 

 

 

22,657

 

 

 

22,694

 

 

 

Non-recurring capital expenditures

 

 

4,352

 

 

 

6,240

 

 

 

7,188

 

 

 

12,427

 

 

 

Share of non-recurring capital expenditures from unconsolidated real estate ventures

 

 

56

 

 

 

238

 

 

 

107

 

 

 

340

 

 

 

First-generation tenant improvements and leasing commissions

 

 

1,703

 

 

 

11,853

 

 

 

2,538

 

 

 

23,700

 

 

 

Share of first-generation tenant improvements and leasing commissions from unconsolidated real estate ventures

 

 

199

 

 

 

217

 

 

 

1,391

 

 

 

987

 

 

 

Non-recurring capital expenditures

 

 

6,310

 

 

 

18,548

 

 

 

11,224

 

 

 

37,454

 

 

 

Total JBG SMITH Share of Capital Expenditures

 

$

18,536

 

 

$

31,437

 

 

$

33,881

 

 

$

60,148

 

 

 


(1)

During the second quarter of 2020, we determined that our investment in the venture that owned The Marriott Wardman Park hotel was impaired due to a decline in the fair value of the underlying asset and recorded an impairment loss of $6.5 million, which reduced the net book value of our investment to zero, and we suspended equity loss recognition for the venture after June 30, 2020. On October 1, 2020, we transferred our interest in this venture to our former venture partner.

(2)

Includes demolition costs, integration and severance costs, pursuit costs related to other completed, potential and pursued transactions, as well as other expenses. For the six months ended June 30, 2021, excludes $1.1 million of transaction costs attributable to noncontrolling interests. For the six months ended June 30, 2020, includes a charitable commitment of $4.0 million to the Washington Housing Conservancy, a non-profit that acquires and owns affordable workforce housing in the Washington, DC metropolitan area.

(3)

Includes amounts, at JBG SMITH Share, related to unconsolidated real estate ventures.

(4)

Includes straight-line rent, above/below market lease amortization and lease incentive amortization.

(5)

The quarterly FAD payout ratio is not necessarily indicative of an amount for the full year due to fluctuation in timing of capital expenditures, the commencement of new leases and the seasonality of our operations. 

NOI RECONCILIATIONS (NON-GAAP)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

dollars in thousands

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common shareholders

 

$

(2,973

)

 

$

(36,780

)

 

$

(23,704

)

 

$

6,145

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

56,678

 

 

 

52,616

 

 

 

121,404

 

 

 

101,105

 

 

 

General and administrative expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and other

 

 

13,895

 

 

 

13,216

 

 

 

26,370

 

 

 

26,392

 

 

 

Third-party real estate services

 

 

25,557

 

 

 

29,239

 

 

 

54,493

 

 

 

58,053

 

 

 

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

 

 

4,441

 

 

 

8,858

 

 

 

9,386

 

 

 

18,299

 

 

 

Transaction and Other Costs

 

 

2,270

 

 

 

1,372

 

 

 

5,960

 

 

 

6,681

 

 

 

Interest expense

 

 

16,773

 

 

 

15,770

 

 

 

33,069

 

 

 

27,775

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

33

 

 

 

Income tax expense (benefit)

 

 

(5

)

 

 

(888

)

 

 

4,310

 

 

 

(3,233

)

 

 

Net income (loss) attributable to redeemable noncontrolling interests

 

 

(345

)

 

 

(3,483

)

 

 

(2,575

)

 

 

1,767

 

 

 

Net loss attributable to noncontrolling interests

 

 

 

 

 

 

 

 

(1,108

)

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party real estate services, including reimbursements revenue

 

 

26,745

 

 

 

27,167

 

 

 

64,852

 

 

 

56,883

 

 

 

Other revenue

 

 

1,904

 

 

 

1,516

 

 

 

4,090

 

 

 

3,146

 

 

 

Income (loss) from unconsolidated real estate ventures, net

 

 

3,953

 

 

 

(13,485

)

 

 

3,010

 

 

 

(16,177

)

 

 

Interest and other income (loss), net

 

 

(38

)

 

 

114

 

 

 

(29

)

 

 

1,021

 

 

 

Gain on sale of real estate

 

 

11,290

 

 

 

 

 

 

11,290

 

 

 

59,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated NOI

 

 

72,437

 

 

 

64,608

 

 

 

144,392

 

 

 

138,667

 

 

 

NOI attributable to unconsolidated real estate ventures at our share

 

 

8,109

 

 

 

7,495

 

 

 

15,613

 

 

 

16,073

 

 

 

Non-cash rent adjustments (1)

 

 

(4,088

)

 

 

(1,419

)

 

 

(8,853

)

 

 

(4,964

)

 

 

Other adjustments (2)

 

 

5,191

 

 

 

3,516

 

 

 

9,933

 

 

 

6,330

 

 

 

Total adjustments

 

 

9,212

 

 

 

9,592

 

 

 

16,693

 

 

 

17,439

 

 

 

NOI

 

$

81,649

 

 

$

74,200

 

 

$

161,085

 

 

$

156,106

 

 

 

Less: out-of-service NOI loss (3)

 

 

(1,329

)

 

 

(1,475

)

 

 

(2,619

)

 

 

(2,857

)

 

 

Operating Portfolio NOI

 

$

82,978

 

 

$

75,675

 

 

$

163,704

 

 

$

158,963

 

 

 

Non-Same Store NOI (4)

 

 

6,527

 

 

 

(440

)

 

 

11,490

 

 

 

(567

)

 

 

Same Store NOI (5)

 

$

76,451

 

 

$

76,115

 

 

$

152,214

 

 

$

159,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Same Store NOI

 

 

0.4

%

 

 

 

 

(4.6

)%

 

 

 

 

Number of properties in Same Store pool

 

 

56

 

 

 

 

 

 

56

 

 

 

 

 


(1)

Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization.

(2)

Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue and allocated corporate general and administrative expenses to operating properties.

(3)

Includes the results of our Under-Construction assets, and Near-Term and Future Development Pipelines.

(4)

Includes the results of properties that were not 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.

 

Barbat Rodgers
Senior Vice President, Investor Relations
(240) 333‑3805
brodgers@jbgsmith.com

Source: JBG SMITH

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