JBG SMITH Properties 10-K

ITEM 2. PROPERTIES Note on presentation of "at share" information. We present certain financial information and metrics "at JBG SMITH Share," which is calculated on an entity-by-entity basis, but exclude our: (i) 10.0% subordinated interest in one commercial building, (ii) 33.5% subordinated interest in four commercial buildings and (iii) 49.0% interest in three commercial buildings, as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures; these interests and debt are excluded because our investment in each real estate venture is zero, we do not anticipate receiving any near-term cash flow distributions from the real estate ventures and we have not guaranteed their obligations or otherwise committed to providing financial support. "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. Because as of December 31, 2022, 8.8% of our assets, as measured by total square feet, was held through real estate ventures in which we own less than 100% of the ownership interest, we believe this form of presentation, which includes our economic interests in the unconsolidated real estate ventures, provides investors important information regarding a significant component of our portfolio, its composition, performance and capitalization. We classify our portfolio as "operating," "under-construction," or "development pipeline." The following tables provide information about each of our commercial, multifamily and development pipeline portfolios as of December 31, 2022. Many of our assets in the development pipeline are adjacent to or an integrated component of operating commercial or multifamily assets in our portfolio. A significant number of our assets included in the following tables are held through real estate ventures with third parties or are subject to ground leases. In addition to other information, the following tables indicate our percentage ownership, whether the asset is consolidated or unconsolidated, and whether the asset is subject to a ground lease. 36 Table of Contents Commercial Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ % ​ ​ ​ Same Store (2) : ​ Square ​ % ​ Office % ​ Retail % Commercial Assets ​ Ownership ​ C/U (1) ​ YTD 2021-2022 ​ Feet ​ Leased ​ Occupied ​ Occupied ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ National Landing ​ 1550 Crystal Drive (3) 100.0 % C Y 550,311 91.0% ​ 88.8% ​ 95.7% ​ 2121 Crystal Drive 100.0 % C Y 504,893 86.9% ​ 71.5% ​ - ​ 2345 Crystal Drive 100.0 % C Y 499,675 83.6% ​ 83.3% ​ 100.0% ​ 2231 Crystal Drive 100.0 % C Y 468,907 75.1% ​ 68.6% ​ 97.4% ​ 2011 Crystal Drive 100.0 % C Y 440,510 60.5% ​ 58.9% ​ 50.3% ​ 2451 Crystal Drive 100.0 % C Y 402,374 88.0% ​ 76.3% ​ 92.6% ​ 1235 S. Clark Street 100.0 % C Y 384,911 96.6% ​ 95.3% ​ 95.0% ​ 241 18th Street S. 100.0 % C Y 362,219 95.7% ​ 96.2% ​ 89.9% ​ 1215 S. Clark Street 100.0 % C Y 336,159 100.0% ​ 100.0% ​ 100.0% ​ 201 12th Street S. 100.0 % C Y 329,607 98.8% ​ 98.2% ​ 100.0% ​ 251 18th Street S. (3) 100.0 % C Y 317,374 96.2% ​ 99.0% ​ 61.1% ​ 2200 Crystal Drive 100.0 % C Y 283,608 57.0% ​ 57.0% ​ - ​ 1225 S. Clark Street 100.0 % C Y 276,155 97.1% ​ 97.0% ​ 100.0% ​ 1901 South Bell Street (3) 100.0 % C Y 274,912 92.1% ​ 92.1% ​ - ​ 1770 Crystal Drive ​ 100.0 % C ​ Y ​ 273,650 ​ 98.4% ​ 100.0% ​ 68.5% ​ Crystal City Marriott (345 Rooms) 100.0 % C Y 266,000 - ​ - ​ - ​ 2100 Crystal Drive 100.0 % C Y 253,437 100.0% ​ 100.0% ​ - ​ 1800 South Bell Street 100.0 % C Y 206,186 99.2% ​ 100.0% ​ 88.8% ​ 200 12th Street S. 100.0 % C Y 202,761 77.5% ​ 77.5% ​ - ​ Crystal City Shops at 2100 (3) 100.0 % C Y 43,241 100.0% ​ - ​ 100.0% ​ Crystal Drive Retail (3) 100.0 % C Y 42,938 100.0% ​ - ​ 100.0% ​ Central Place Tower (4) ​ 50.0 % U Y 551,608 99.3% ​ 99.2% ​ 100.0% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other VA ​ 800 North Glebe Road 100.0 % C Y 303,759 99.3% ​ 100.0% ​ 81.9% ​ Stonebridge at Potomac Town Center (5) 10.0 % U Y 504,327 100.0% ​ - ​ 95.6% ​ Rosslyn Gateway-North 18.0 % U Y 146,759 68.8% ​ 66.3% ​ 100.0% ​ Rosslyn Gateway-South 18.0 % U Y 103,444 64.6% ​ 68.9% ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ D.C. ​ 2101 L Street 100.0 % C Y 375,493 77.7% ​ 58.1% ​ 92.6% ​ The Foundry 9.9 % U Y 227,493 79.8% ​ 79.2% ​ 100.0% ​ 1101 17th Street 55.0 % U Y 209,407 89.1% ​ 84.6% ​ 82.8% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MD ​ 4747 Bethesda Avenue (6) ​ 100.0 % C ​ Y ​ 300,508 ​ 98.0% ​ 97.9% ​ 100.0% ​ One Democracy Plaza (4) (5) 100.0 % C Y 213,139 87.1% ​ 87.0% ​ 100.0% ​ Operating - Total / Weighted Average ​ ​ ​ ​ ​ ​ 9,655,765 88.7% ​ 85.0% ​ 93.5% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Totals at JBG SMITH Share ​ National Landing ​ ​ ​ ​ ​ ​ 6,995,632 88.3% ​ 85.5% ​ 93.0% ​ Other VA ​ ​ ​ ​ ​ ​ 399,229 95.8% ​ 95.7% ​ 89.5% ​ D.C. ​ ​ ​ ​ ​ ​ 513,165 80.4% ​ 65.2% ​ 91.3% ​ MD ​ ​ ​ ​ ​ ​ 513,647 93.5% ​ 93.2% 100.0% Operating - Total / Weighted Average ​ ​ ​ ​ ​ ​ ​ 8,421,673 ​ 88.5% ​ 85.1% ​ 92.6% ​ Note: At 100% share, unless otherwise noted. (1) "C" denotes a consolidated interest and "U" denotes an unconsolidated interest. (2) "Y" denotes an asset as same store and "N" denotes an asset as non-same store. (3) The following assets contain space that is held for development or not otherwise available for lease. This out-of-service square footage is excluded from square feet, leased and occupancy metrics in the above table. ​ ​ ​ ​ ​ ​ ​ ​ ​ Not Available Commercial Asset In-Service for Lease 1550 Crystal Drive 550,311 ​ 1,721 251 18th Street S. ​ 317,374 ​ 21,992 1901 South Bell Street ​ 274,912 ​ 1,924 Crystal City Shops at 2100 ​ 43,241 ​ 28,974 Crystal Drive Retail ​ 42,938 ​ 14,027 2221 S. Clark Street - Office ​ — ​ 35,182 (4) Asset is subject to a ground lease where we are the lessee. (5) Not Metro-served. (6) Includes our corporate office lease for approximately 84,400 square feet. 37 Table of Contents Multifamily Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number Total ​ ​ Multifamily ​ ​ ​ ​ ​ % ​ ​ ​ Same Store (2) : ​ of ​ Square ​ % ​ % ​ Retail % ​ Multifamily Assets ​ Ownership ​ C/U (1) ​ YTD 2021-2022 ​ Units ​ Feet ​ Leased ​ Occupied ​ Occupied ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ National Landing ​ ​ ​ RiverHouse Apartments 100.0 % C Y 1,676 1,327,551 96.1% ​ 95.5% ​ 100.0% ​ The Bartlett 100.0 % C Y 699 619,372 93.6% ​ 92.8% ​ 100.0% ​ 220 20th Street 100.0 % C Y 265 271,476 97.0% ​ 94.7% ​ 100.0% ​ 2221 S. Clark Street - Residential (3) 100.0 % C Y 216 96,948 90.2% ​ 86.9% ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ D.C. ​ ​ ​ West Half ​ 100.0 % C Y 465 385,516 89.3% ​ 89.2% ​ 83.2% ​ Fort Totten Square 100.0 % C Y 345 384,956 98.5% ​ 95.7% ​ 100.0% ​ The Wren (4) ​ 99.7 % C ​ N ​ 433 ​ 332,682 ​ 96.2% ​ 94.5% ​ 100.0% ​ The Batley ​ 100.0 % C ​ N ​ 432 ​ 300,388 ​ 93.1% ​ 91.7% ​ - ​ WestEnd25 100.0 % C Y 283 273,264 95.1% ​ 94.7% ​ - ​ F1RST Residences ​ 100.0 % C ​ Y ​ 325 ​ 270,928 ​ 94.9% ​ 93.2% ​ 88.8% ​ Atlantic Plumbing (5) 100.0 % C Y 310 245,143 97.1% ​ 95.8% ​ 77.0% ​ 1221 Van Street 100.0 % C Y 291 225,530 94.4% ​ 92.1% ​ 100.0% ​ 901 W Street ​ 100.0 % C ​ Y ​ 161 ​ 154,379 ​ 96.7% ​ 98.1% ​ 57.9% ​ 900 W Street (3) ​ 100.0 % C ​ Y ​ 95 ​ 71,050 ​ 64.2% ​ 50.5% ​ - ​ North End Retail 100.0 % C Y — 27,355 91.6% ​ - ​ 91.6% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MD ​ ​ ​ 8001 Woodmont (6) 100.0 % C N 322 363,979 83.3% ​ 81.1% ​ 95.1% ​ Falkland Chase-South & West 100.0 % C Y 268 222,754 97.4% ​ 97.4% ​ - ​ Falkland Chase-North ​ 100.0 % C ​ Y ​ 170 ​ 112,143 ​ 96.5% ​ 96.5% ​ - ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating - Total / Weighted Average (3) ​ ​ ​ ​ ​ ​ 6,756 5,685,414 94.5% ​ 93.6% ​ 93.4% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Under-Construction ​ ​ ​ National Landing ​ ​ ​ ​ ​ 1900 Crystal Drive (7) — ​ C ​ ​ 808 633,985 ​ ​ ​ ​ ​ ​ ​ 2000/2001 South Bell Street (7) ​ — ​ C ​ ​ ​ 775 ​ 580,966 ​ ​ ​ ​ ​ ​ ​ Under-Construction - Total ​ ​ ​ ​ ​ ​ 1,583 1,214,951 ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ 8,339 6,900,365 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Totals at JBG SMITH Share (3) ​ ​ ​ National Landing ​ ​ ​ ​ ​ ​ 2,856 2,315,347 95.5% ​ 94.7% ​ 100.0% ​ D.C. ​ ​ ​ ​ ​ ​ ​ 3,139 ​ 2,670,089 ​ 94.8% ​ 93.4% ​ 92.4% ​ MD ​ ​ ​ ​ ​ ​ 760 698,876 89.9% ​ 90.3% ​ 95.1% ​ Operating - Total / Weighted Average ​ ​ ​ ​ ​ ​ ​ 6,755 ​ 5,684,312 ​ 94.5% ​ 93.6% ​ 93.4% ​ Under-construction assets ​ ​ ​ ​ ​ ​ ​ 1,583 ​ 1,214,951 ​ ​ ​ ​ ​ ​ Note: At 100% share, unless otherwise noted. (1) "C" denotes a consolidated interest and "U" denotes an unconsolidated interest. (2) "Y" denotes an asset as same store and "N" denotes an asset as non-same store. (3) 2221 S. Clark Street - Residential and 900 W Street are excluded from percent leased and percent occupied metrics as they are operated as short-term rental properties . (4) In October 2022, we acquired an additional 3.7% ownership interest in The Wren, increasing our ownership interest to 99.7%. In February 2023, we acquired the remaining 0.3% ownership interest in The Wren, increasing our ownership interest to 100.0%. (5) In August 2022, we acquired the remaining 36.0% ownership interest in Atlantic Plumbing. See Note 3 to the consolidated financial statements for additional information. (6) In October 2022, we acquired the remaining 50.0% ownership interest in 8001 Woodmont. See Note 3 to the consolidated financial statements for additional information. (7) In 2021, we leased the land underlying 1900 Crystal Drive and 2000/2001 South Bell Street to a lessee. The assets are consolidated in our financial statements as they are owned through variable interest entities for which we are the primary beneficiary. See Note 6 to the consolidated financial statements for additional information. ​ 38 Table of Contents Development Pipeline ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ % ​ Estimated Potential Development Density (SF) ​ Number of Asset Ownership ​ Total Office Multifamily Retail ​ Units ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ National Landing ​ ​ ​ ​ ​ ​ ​ 3330 Exchange Avenue (1) ​ 50.0% ​ 239,800 ​ — ​ 216,400 ​ 23,400 ​ 240 3331 Exchange Avenue (1) ​ 50.0% ​ 180,600 ​ — ​ 164,300 ​ 16,300 ​ 170 Potomac Yard Landbay F/G/H (2) ​ 50.0% / 100.0% ​ 2,614,000 ​ 1,369,000 ​ 1,147,000 ​ 98,000 ​ 1,240 2250 Crystal Drive ​ 100.0% ​ 696,200 ​ — ​ 681,300 ​ 14,900 ​ 825 1415 S. Eads Street ​ 100.0% ​ 531,400 ​ — ​ 527,400 ​ 4,000 ​ 635 223 23rd Street ​ 100.0% ​ 492,100 ​ — ​ 484,100 ​ 8,000 ​ 610 101 12th Street S. ​ 100.0% ​ 239,600 ​ 234,400 ​ — ​ 5,200 ​ — RiverHouse Land ​ 100.0% ​ 1,988,400 ​ — ​ 1,960,600 ​ 27,800 ​ 1,665 2525 Crystal Drive ​ 100.0% ​ 373,000 ​ — ​ 370,000 ​ 3,000 ​ 370 1800 South Bell Street Land (3) ​ 100.0% ​ 255,000 ​ 245,000 ​ — ​ 10,000 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ D.C. ​ ​ Gallaudet Parcel 2-3 (4) (5) 100.0% ​ 819,100 ​ — ​ 758,200 ​ 60,900 ​ 820 5 M Street Southwest ​ 100.0% ​ 664,700 ​ — ​ 648,400 ​ 16,300 ​ 650 Capitol Point - North ​ 100.0% ​ 738,300 ​ — ​ 705,500 ​ 32,800 ​ 760 Gallaudet Parcel 4 (5) ​ 100.0% ​ 577,700 ​ — ​ 514,800 ​ 62,900 ​ 645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other Development Parcels (6) ​ ​ ​ 2,057,600 ​ 1,604,400 ​ 453,200 ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 12,467,500 3,452,800 8,631,200 383,500 8,630 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Totals at JBG SMITH Share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ National Landing ​ ​ ​ 6,593,000 ​ 1,313,900 ​ 5,137,300 ​ 141,800 ​ 5,280 D.C. ​ ​ ​ 2,992,100 ​ 149,600 ​ 2,669,600 ​ 172,900 ​ 2,875 Other ​ ​ ​ 145,700 ​ 89,700 ​ 56,000 ​ — ​ — ​ ​ ​ ​ 9,730,800 ​ 1,553,200 ​ 7,862,900 ​ 314,700 ​ 8,155 Note: At 100% share, unless otherwise noted. (1) Formerly referred to as Potomac Yard Landbay F – Block 19 and 15. (2) The ownership percentage for Potomac Yard Landbay F/G is 50.0%, and the ownership percentage for Potomac Yard Landbay H is 100.0%. (3) Currently encumbered by an operating commercial asset. (4) Formerly referred to as Gallaudet Parcel 1-3. (5) Controlled through an option to acquire a leasehold interest. As of December 31, 2022, the weighted average remaining term for the option is 1.8 years. (6) Comprises six assets in which we have a minority interest. 809,500 SF is currently encumbered by two operating commercial assets. Major Tenants The following table sets forth information for our 10 largest tenants by annualized rent for the year ended December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At JBG SMITH Share ​ ​ ​ ​ ​ ​ ​ ​ Annualized ​ % of Total ​ ​ Number of Square % of Total Rent Annualized Tenant ​ Leases ​ Feet ​ Square Feet ​ (In thousands) ​ Rent GSA 40 1,940,799 26.4 % $ 77,585 23.2 % Amazon 8 1,035,347 14.1 % 44,927 13.4 % Gartner, Inc 1 174,424 2.4 % 12,442 3.7 % Lockheed Martin Corporation 2 207,095 2.8 % 9,734 2.9 % Booz Allen Hamilton Inc 3 159,610 2.2 % 8,020 2.4 % Accenture LLP 2 116,736 1.6 % 5,987 1.8 % Public Broadcasting Service 1 120,328 1.6 % 4,866 1.5 % Evolent Health LLC 1 90,905 1.2 % 4,693 1.4 % Greenberg Traurig LLP 1 64,090 0.9 % 4,595 1.4 % The International Justice Mission 1 74,833 1.0 % 4,348 1.3 % Total 60 3,984,167 54.2 % $ 177,197 53.0 % ​ Note: Includes all in-place leases as of December 31, 2022 for which a tenant has taken occupancy for office and retail space within our Operating Portfolio. 39 Table of Contents Lease Expirations The following table sets forth as of December 31, 2022 the scheduled expirations of tenant leases in our Operating Portfolio for each year from 2023 through 2031 and thereafter, assuming no exercise of renewal options or early termination rights: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At JBG SMITH Share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of ​ ​ ​ ​ ​ ​ ​ ​ ​ % of ​ Annualized ​ Total ​ Annualized ​ ​ Number of ​ Square ​ Total ​ Rent (1) ​ Annualized ​ Rent Per Year of Lease Expiration ​ Leases ​ Feet ​ Square Feet ​ (in thousands) ​ Rent ​ Square Foot (1) Month-to-Month 41 91,420 1.2 % $ 1,263 0.4 % $ 13.81 2023 99 797,097 10.8 % 34,846 10.4 % 43.72 2024 70 1,424,593 19.4 % 65,051 19.4 % 45.66 2025 73 730,947 9.9 % 32,397 9.7 % 44.32 2026 51 229,012 3.1 % 11,299 3.4 % 49.34 2027 38 511,561 7.0 % 24,037 7.2 % 46.99 2028 55 416,369 5.7 % 20,268 6.0 % 48.68 2029 22 145,570 2.0 % 6,809 2.0 % 46.78 2030 28 393,117 5.3 % 22,182 6.6 % 56.43 2031 26 597,762 8.1 % 21,548 6.4 % 36.05 Thereafter 77 2,018,208 27.5 % 95,435 28.5 % 48.22 Total / Weighted Average 580 7,355,656 100.0 % $ 335,135 100.0 % $ 45.81 Note: Includes all in-place leases as of December 31, 2022 for office and retail space within our Operating Portfolio and assuming no exercise of renewal options or early termination rights. The weighted average remaining lease term for the entire portfolio is 5.7 years. (1) Annualized rent and annualized rent per square foot exclude percentage rent and the square footage of tenants that only pay percentage rent. ​ ITEM 3. LEGAL PROCEEDINGS We are, from time to time, involved in legal actions arising in the ordinary course of business. In our opinion, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows. ​ ITEM 4. MINE SAFETY DISCLOSURES Not applicable. ​ PART II