The guy next door said he goes jogging every morning.

Literal

Next [of-の] man [topic-は] every-morning jogging [object-を] do-ている [quotative-と] said.

~と言った is the standard quotative of direct/indirect speech. ジョギング is the loanword for 'jogging,' using ~をする to form the verb phrase — a productive way to make any noun-action into a verb in Japanese. Natural conversational report.