EX-99.1 2 jbgs-20250729xex99d1.htm EX-99.1

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Management Letter

July 29, 2025

Our Fellow Shareholders:

As we close the second quarter of 2025, we remain steadfast in our commitment to long-term NAV per share growth, even as macroeconomic and political uncertainties persist. The evolving federal landscape continues to shape the DC real estate market. Notably, the adverse impact of federal spending cuts and headcount reductions appears to be materializing. We continue to expect uncertain economic growth and a more cautious, though still active, leasing environment. In this context, we continue to lean into our role as disciplined capital allocators. Drawing on our deep expertise in mixed-use, urban infill real estate, we are strategically repositioning the portfolio to align with evolving market conditions. With office values at historically low levels and multifamily assets still commanding attractive pricing, we are executing a deliberate pivot: reallocating capital from multifamily assets toward office investments through both opportunistic acquisitions and share repurchases, reinforcing our focus on long-term NAV per share growth. This shift reflects our conviction that office now offers a more compelling risk-adjusted return profile.

The following are a few highlights since last quarter.

Sold $452.0 million of assets at a 4.6% capitalization rate (4.9% on the income-producing multifamily assets). We continue to dispose of select multifamily and land assets to match-fund, either before or after the fact, our share repurchases and other opportunistic investments.

Acquired Tysons Dulles Plaza, a three-building office campus in Tysons, Virginia for $42.3 million, representing over a 20% in-place capitalization rate. The three office buildings comprise approximately 491,500 square feet; we intend to redevelop one of the buildings into approximately 300,000 square feet (300 units) of new multifamily. Given our extremely low basis, we have the ability to offer attractive lease terms to incentivize external demand while maintaining the flexibility to relocate existing tenancy while we re-entitle one of the buildings for residential use.

Completed 208,000 square feet of office leases, and our multifamily portfolio continued to exhibit resilience. Our office leasing had a weighted average lease term of 5.8 years and included 82,000 square feet of new leases in National Landing. Our In-Service multifamily portfolio ended the quarter at 94.8% leased and 92.9% occupied. In our Same Store multifamily portfolio, we increased effective rents by 1.0% for new leases and 8.9% upon renewal while achieving a 49.0% renewal rate. We have also seen strong demand for our most recently completed asset, The Zoe, which was 40.0% leased as of this week.

LEO Impact Capital, our investment management platform focused on preserving affordability for middle-income residents, had an initial closing of its new multi-market fund, LEO Impact Housing Fund, totaling $64.5 million (including accordions). The LEO Impact Housing Fund will invest in high impact neighborhoods characterized by low rates of poverty, high levels of educational achievement, and access to jobs and good schools with a focus in Atlanta, Charlotte, DC, Nashville, and Raleigh. This milestone reflects growing investor confidence in

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our investment management platform and its mission. We are grateful to our investors – especially Bank of America and Truist – for their support in this endeavor.

Capital Allocation

Our capital allocation strategy remains anchored in our core objective: maximizing long-term NAV per share growth. With deep expertise in mixed-use, urban infill real estate, we have consistently rotated across asset classes based on relative value, cost of capital, and risk-adjusted return potential. In prior cycles, this meant selling low cap rate CBD office and investing in multifamily development. More recently, as our share price implied little to no value for our office portfolio, repurchasing our own discounted shares became the most accretive use of capital. Today, with office values at historically distressed levels, selling into this market would be value-destructive and likely will remain so for some time. By contrast, multifamily assets continue to command attractive pricing in the private market. Monetizing these more liquid assets – particularly where we can achieve premiums to NAV – provides the most efficient source of capital for share repurchases and other opportunistic investments. This disciplined approach allows us to recycle capital into opportunities that we believe offer the greatest potential for NAV per share growth.

During the second quarter, we sold: WestEnd25, a 283-unit multifamily asset in the West End submarket of Washington, DC, for $186.0 million; a 40% interest in West Half, a 465-unit multifamily asset in the Ballpark submarket of Washington, DC, for $100.0 million; and Capitol Point North, a development parcel in the NoMa submarket of Washington, DC, for $11.0 million. Subsequent to quarter end, we sold The Batley, a 432-unit multifamily asset in the Union Market neighborhood of Washington, DC, for $155.0 million. These sales represent an average capitalization rate of 4.9% on the income-producing multifamily assets and further advance our strategy to more highly concentrate our portfolio in National Landing and recycle capital out of assets that are most liquid in today’s capital markets at or above NAV and into high-conviction opportunities, including share repurchases and distressed office investments.

As always, we intend to pursue new investments that align with our strategy and competitive advantages. We expect to fund these investments primarily through asset recycling, either in advance or retrospectively. Given the substantial discount of our share price relative to NAV, we have allocated a significant amount of our capital to share repurchases. Our strong balance sheet and substantial liquidity enable us to take advantage of this disparity. So far this year, we have repurchased 23.6 million shares at an average price of $15.98 per share, totaling $376.9 million. Since launching our share repurchase program in 2020, we have repurchased 80.4 million shares, which is approximately 60% of the shares outstanding as of December 31, 2019, at an average price of $18.72 per share, totaling $1.5 billion.

In addition to share repurchases, we continue to explore opportunities to capitalize on distressed office pricing, monetize our land bank, and generate incremental fee revenue and carried interest income via joint ventures with third-party investors. During the second quarter, we acquired Tysons Dulles Plaza, a 491,500-square-foot, three-building office campus in Tysons, Virginia, with the opportunity to redevelop one of the buildings into approximately 300,000 square feet (300 units) of new multifamily, for $42.3 million. The acquisition represents a capitalization rate of over 20.0% on in-place NOI. We believe the current market distress is creating some of the most attractive office investment opportunities in nearly two decades. Our low basis enables us to offer competitive lease terms to attract new tenants while preserving the flexibility to relocate existing tenancy as we pursue re-entitlement of one of the buildings for residential use. We are actively evaluating additional investments with similar profiles – particularly where we can apply our proven mixed-use and development expertise to unlock long-term value.

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Financial and Operating Metrics

For the three months ended June 30, 2025, we reported Core FFO attributable to common shares of $12.7 million, or $0.19 per diluted share. Annualized NOI is up 0.1% quarter over quarter, totaling $251.0 million, excluding the assets that were sold, recapitalized, and acquired. Our multifamily portfolio ended the quarter at 89.0% leased and 85.8% occupied, and our In-Service multifamily portfolio was 94.8% leased and 92.9% occupied. Our office portfolio ended the quarter at 76.5% leased and 74.8% occupied. Our portfolio Same Store NOI decreased 3.0% for the three months ended June 30, 2025.

As of June 30, 2025, our Net Debt to Annualized Adjusted EBITDA was 11.8x. We are currently operating at elevated leverage levels as a result of an increase in interest expense as we complete our remaining under-construction asset and cease capitalizing interest on it. We expect the impact on our leverage will be lessened by: (i) additional income from the stabilization of our newly constructed multifamily assets (The Grace, Reva, The Zoe, and Valen); (ii) rent growth in our existing multifamily portfolio given the limited multifamily supply pipeline in the DC metro area; and (iii) office demand in National Landing from prospective tenants seeking proximity to the Pentagon, local tech talent, and the placemaking attractions we have delivered.

Our floating rate exposure remains low, with 84.4% of our debt fixed or hedged as of the end of the second quarter, after accounting for in-place interest rate swaps and caps. The floating rate exposure is tied to our revolving credit facility and assets where the business plan warrants preserving flexibility. We continue to be well positioned with respect to our near-term debt maturities. This year we have $33.0 million of debt maturing, representing 1.3% of total debt, which is non-recourse and secured by a DC office asset owned in a joint venture where we believe the outstanding principal balance of the mortgage collateralizing the asset exceeds the asset’s current value. Our remaining debt has a weighted average maturity of 3.4 years, after adjusting for by-right extension options, and we have no other debt maturities until December 2026. Our non-recourse asset-level financing strategy continues to be most valuable in an environment like today, providing a floor on our downside risk.

Operating Portfolio

Multifamily Trends

Our In-Service multifamily portfolio ended the quarter at 94.8% leased, down 0.9%, and 92.9% occupied, down 1.4% quarter over quarter. In our Same Store multifamily portfolio, we increased effective rents by 1.0% for new leases and 8.9% upon renewal while achieving a 49.0% renewal rate. Our multifamily portfolio Same Store NOI decreased 1.5% for the three months ended June 30, 2025.

We continue to make progress leasing The Grace and Reva, which are 83.5% leased as of this week, and The Zoe, which is 40.0% leased as of this week. Since Amazon brought their employees back to the office five days a week on January 2nd, we have seen a 30.0% increase in the number of Amazonians living in our National Landing multifamily portfolio. We believe that the amenity-rich environment we have developed in National Landing and proximity to transit are key factors contributing to the successful leasing performance.

DC Metro Multifamily Trends (based on CoStar, Apartment List, and regional data)

The DC metro multifamily market has demonstrated resilience during a period of tremendous federal uncertainty that characterized the first half of the year. Year-over-year rent growth of 1.5% did show some deceleration from earlier in the year but it remains significantly above the US average of -0.7% during the same period, according to data from Apartment List. Median absolute rents also remain at a high point with healthy occupancy levels of just below 93.9% – albeit a level slightly below the 94.5% reported at the end of last quarter while remaining above the US average. With the passage of a federal budget and the wind-down of most public federal bloodletting, it's likely that the market will also begin to settle through year end and even start to realize the benefits of an enhanced defense and homeland security budget and the continued record low level of new deliveries.

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On the topic of new supply, the story remains uniformly positive: the pipeline remains constrained with just 1.4% of total inventory under construction, underscoring the formidable barriers to new starts in the current high-cost and rate environment. We saw only one new start break ground during the second quarter – and that was for a wood frame job in the exurbs of the market. This trickle of new supply, coupled with strong employment fundamentals, should create a robust environment for growth.

Office Trends

Our office portfolio ended the quarter at 76.5% leased, down 1.8% quarter over quarter, and 74.8% occupied, down 1.6% quarter over quarter. In the second quarter, we executed 208,000 square feet of leases with a weighted average lease term of 5.8 years. For second generation leases, the rental rate mark-to-market was negative 6.1%.

Leasing activity picked up in the second quarter despite the overhang of continued uncertainty regarding federal government staffing and spending changes. Leasing in National Landing continues to be driven primarily by office users who fall into three categories: (i) companies who need SCIF/secure facility space; (ii) technology-related new tenants largely attracted by the recent delivery of our placemaking interventions; and (iii) defense-related tenants who have long called this submarket home. Approximately 93% of our second quarter leasing activity was with tenants in the defense and technology industries. Looking forward, we have modest lease roll in National Landing over the next five years, averaging approximately 6.2% per year, and we expect our retention rate to improve given approximately 70% of our tenancy in our National Landing portfolio comprises defense-tech tenants.

Our leasing efforts continue to focus on buildings with long-term potential, concentrating occupancy in areas of National Landing that we have enhanced through our placemaking initiatives and that are accessible via multi-modal transportation. In total, we will have taken over 1.0 million square feet of obsolete office space out of service in National Landing. Our rationale for reducing competitive stock in National Landing remains the same: to help foster a healthier long-term office market while repurposing older, underutilized buildings for redevelopment or conversion to multifamily housing, hospitality, or other complimentary uses that will support a vibrant mixed-use environment.

Northern Virginia Office Trends (based on JLL and CBRE data)

The biggest news in the office market was the recent passage of the “Big Beautiful Bill,” particularly the adoption of a historic $1.0 trillion defense budget which should disproportionately benefit Northern Virginia. We believe its focus on both innovative new technology and lethal systems will drive demand to National Landing given its massive concentration of contractors and proximity to the Pentagon, Amazon, and Virginia Tech. While there is likely to be broader market fallout from budget cuts elsewhere, we expect that those impacts will be most concentrated in Maryland and DC with their greater exposure to life sciences and other civilian functions of the federal government.

Notwithstanding the promise of greater defense funding to come, CBRE and JLL both reported a sluggish first half, with net absorption essentially flat year-to-date, largely reflective of tenant caution ahead of the federal budget process and the DOGE efforts – “unknowns” which have started to become much closer to “knowns” – both good and bad. That uncertainty created a backlog of demand, with CBRE reporting 4.3 million square feet of active but not-yet-signed requirements out in the Northern Virginia market. This backlog is positive for absorption through the balance of the year and coupled with the 12.4 million square feet of office space that JLL has identified as slated for residential conversion, it suggests that vacancy could begin to abate. As positive as these two data points are, they will take some time to meaningfully impact the market’s 23.0% direct vacancy rate. This makes us long-term believers in Northern Virginia office – particularly National Landing and other defense nodes – but we also recognize that health will come back to the market over a period of years and not quarters.

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* * *

Despite a constantly shifting landscape, our strategy remains clear: we are focused on long-term value creation, not short-term noise. Our transformation of National Landing is a testament to our ability to execute with vision and discipline, and we remain committed to enhancing the stability and enduring strength of both our office and multifamily portfolios. With office valuations at generational lows and our shares trading at a meaningful discount to NAV, we see a rare window to deploy capital into high-conviction opportunities that we believe will drive substantial NAV per share growth over time.

We appreciate your continued trust and partnership as we pursue opportunities that we believe will deliver enduring value for our shareholders.

Sincerely,

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W. Matthew Kelly

Chief Executive Officer

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GraphicSection Two – Earnings Release


FOR IMMEDIATE RELEASE

    

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Earnings Release

CONTACT

Kevin Connolly

Executive Vice President, Portfolio Management & Investor Relations

(240) 333-3837

kconnolly@jbgsmith.com

JBG SMITH ANNOUNCES SECOND QUARTER 2025 RESULTS

Bethesda, MD (July 29, 2025) - JBG SMITH (NYSE: JBGS), a leading owner, operator, and developer of mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended June 30, 2025 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our Second Quarter 2025 Investor Package, which is 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 that document.

Second Quarter 2025 Highlights

Net loss, Funds From Operations ("FFO") and Core FFO attributable to common shareholders were:

SECOND QUARTER AND YEAR-TO-DATE COMPARISON

in millions, except per share amounts

Three Months Ended

Six Months Ended

June 30, 2025

June 30, 2024

June 30, 2025

June 30, 2024

Amount

Per Diluted Share

Amount

Per Diluted Share

Amount

Per Diluted Share

Amount

Per Diluted Share

Net loss (1) (2)

$

(19.2)

$

(0.29)

$

(24.4)

$

(0.27)

$

(65.0)

$

(0.87)

$

(56.6)

$

(0.63)

FFO (2)

$

10.0

$

0.15

$

14.3

$

0.16

$

3.7

$

0.05

$

25.0

$

0.27

Core FFO

$

12.7

$

0.19

$

16.1

$

0.18

$

19.9

$

0.27

$

43.0

$

0.47

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(1)Includes gains on the sale of real estate of $41.8 million and $42.4 million for the three and six months ended June 30, 2025. Includes real estate impairment losses of $31.8 million for the three and six months ended June 30, 2025.
(2)Includes impairment losses related to non-depreciable real estate assets of $8.5 million and $18.2 million for the six months ended June 30, 2025 and 2024.
Annualized Net Operating Income ("Annualized NOI") for the three months ended June 30, 2025 was $268.4 million, compared to $270.1 million for the three months ended March 31, 2025, at our share. Excluding the assets that were sold, recapitalized, and acquired through June 30, 2025, Annualized NOI for the three months ended June 30, 2025 was $251.0 million, compared to $250.8 million for the three months ended March 31, 2025, at our share.

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Same Store NOI ("SSNOI") at our share decreased 3.0% quarter-over-quarter to $59.5 million for the three months ended June 30, 2025.
oThe decrease in SSNOI was substantially attributable to (i) lower occupancy and higher operating expenses, partially offset by higher rents in our multifamily portfolio and (ii) lower occupancy and recovery revenue, partially offset by lower real estate taxes in our commercial portfolio.

Operating Portfolio

The operating multifamily portfolio was 89.0% leased and 85.8% occupied as of June 30, 2025, compared to 93.0% and 91.3% as of March 31, 2025. Our operating In-Service multifamily portfolio was 94.8% leased and 92.9% occupied as of June 30, 2025, compared to 95.7% and 94.3% as of March 31, 2025.
In our Same Store multifamily portfolio, we increased effective rents by 1.0% for new leases and 8.9% upon renewal for second quarter lease expirations while achieving a 49.0% renewal rate.
The operating commercial portfolio was 76.5% leased and 74.8% occupied as of June 30, 2025, compared to 78.3% and 76.4% as of March 31, 2025, at our share.
Executed approximately 208,000 square feet of office leases at our share during the three months ended June 30, 2025, including approximately 87,000 square feet of new leases. Second-generation leases generated a 6.1% rental rate decrease on a cash basis and a 4.8% rental rate decrease on a GAAP basis.
Executed approximately 279,000 square feet of office leases at our share during the six months ended June 30, 2025, including approximately 101,000 square feet of new leases. Second-generation leases generated a 4.6% rental rate decrease on a cash basis and a 3.5% rental rate decrease on a GAAP basis.

Development Portfolio

Under-Construction

As of June 30, 2025, we had one multifamily asset under construction, Valen (formerly 2000 South Bell Street), consisting of 355 units at our share.

Development Pipeline

As of June 30, 2025, we had 19 assets in the development pipeline consisting of 8.7 million square feet of estimated potential development density at our share.

Third-Party Asset Management and Real Estate Services Business

For the three months ended June 30, 2025, revenue from third-party real estate services, including reimbursements, was $14.8 million. Excluding reimbursements and service revenue from our interests in real estate ventures, revenue from our third-party asset management and real estate services business was $6.9 million, primarily driven by $4.0 million of property and asset management fees, $1.1 million of leasing fees and $1.0 million of other service revenue.

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Balance Sheet

As of June 30, 2025, our total enterprise value was approximately $3.8 billion, comprising 76.0 million common shares and units valued at $1.3 billion, and debt (net of premium / (discount) and deferred financing costs) at our share of $2.5 billion, less cash and cash equivalents at our share of $65.6 million.
As of June 30, 2025, we had $61.4 million of cash and cash equivalents ($65.6 million of cash and cash equivalents at our share), and $524.0 million of undrawn capacity under our revolving credit facility.
Net Debt to annualized Adjusted EBITDA at our share for the three months ended June 30, 2025 was 11.8x, and our Net Debt / total enterprise value was 65.3% as of June 30, 2025.

Investing and Financing Activities

In May 2025, we acquired Tysons Dulles Plaza, a 491,494-square-foot three-building office campus in Tysons, Virginia, with the opportunity to redevelop one of the buildings into approximately 300,000 square feet (300 units) of new multifamily, for $42.3 million.
In May 2025, we a sold a 40.0% interest in a real estate venture that owns West Half, a multifamily asset with 465 units in Washington, DC, for $100.0 million.
In June 2025, we sold Capitol Point – North, a development parcel in Washington, DC, for $11.0 million.
In June 2025, we sold WestEnd25, a multifamily asset with 283 units in Washington, DC, for $186.0 million. In connection with the disposition, we repaid the related $97.5 million mortgage loan.
During the second quarter of 2025, we repurchased and retired 11.2 million common shares for $184.9 million, a weighted average purchase price per share of $16.54.

Subsequent to June 30, 2025

In July 2025, we sold The Batley, a multifamily asset with 432 units in Washington, DC, for $155.0 million.
Through July 25, 2025, we repurchased and retired 264,209 common shares for $4.6 million, a weighted average purchase price per share of $17.26, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

Dividends

On July 24, 2025, our Board of Trustees declared a quarterly dividend of $0.175 per common share, payable on August 21, 2025 to shareholders of record as of August 7, 2025.

About JBG SMITH

JBG SMITH owns, operates, and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, DC, most notably National Landing, that we believe have long-term growth potential and appeal to residential, office, and retail tenants. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, highly amenitized, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's headquarters; Virginia Tech's $1 billion Innovation Campus; proximity to the Pentagon; and our placemaking initiatives and public infrastructure improvements. JBG SMITH's dynamic portfolio currently comprises 12.0 million square feet at share of multifamily, office and retail assets, 98%

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of which are Metro-served. It also maintains a development pipeline encompassing 8.7 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually. 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, financial condition and business 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. We also note the following forward-looking statements: whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet, estimated number of units and estimated potential development density are accurate; expected timing, completion, and delivery dates for the projects we are developing and the ability of any or all of our demand drivers to materialize and their effect on economic impact, job growth, expansion of public transportation and related demand in the National Landing submarket.

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 reductions in federal government spending, headcount, or leasing, the timing of and costs associated with development and property improvements, tariffs and other trade barriers, supply chain disruptions, 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, 2024 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,"

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"our pro rata share" or "our share," is not, and is not intended to be, a presentation in accordance with GAAP. Given that a 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 consolidated financial statements as reported under GAAP.

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 10.0% subordinated interest in one commercial building and our 33.5% subordinated interest in four commercial buildings, as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures, as 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.

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

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operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps and caps) and certain non-cash expenses (primarily depreciation and amortization expense 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 expense, gains (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 for 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 non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, litigation costs and income from investments. 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 expense related to real estate, gains (losses) from the sale of certain real estate assets, gains (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 which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, litigation costs, income from investments, amortization of the management contracts intangible and the mark-to-market of derivative instruments, including our share of such adjustments for unconsolidated real estate ventures.

FAD represents Core FFO adjusted for recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption (payments) refunds, 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, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

7


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, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions, and other non-comparable income and expenses. 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"), "Same Store NOI" and "Annualized NOI" are non-GAAP financial measures management uses to assess an asset'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, Same Store NOI and Annualized NOI provide 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 for operating leases, if applicable. NOI excludes deferred (straight-line) rent, commercial lease termination revenue, 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, which includes our proportionate share of revenue and expenses attributable to real estate ventures, as a supplemental performance measure 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 expense 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 real estate investment trusts 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 consolidated 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

8


flows as a measure of liquidity or our ability to make distributions. Annualized NOI represents NOI for the three months ended June 30, 2025 multiplied by four. 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.

Definitions

"Development Pipeline" refers to assets that have the potential to commence construction subject to receipt of full entitlements, completion of design and/or market conditions where we (i) own land or control the land through a ground lease or (ii) are under a long-term conditional contract to purchase, or enter into, a leasehold interest with respect to land.

"Estimated Potential Development Density" reflects management's estimate of developable gross square feet based on our current business plans with respect to real estate owned or controlled as of June 30, 2025. Our current business plans may contemplate development of less than the maximum potential development density for individual assets. As market conditions change, our business plans, and therefore, the Estimated Potential Development Density, could change accordingly. Given timing, zoning requirements and other factors, we make no assurance that Estimated Potential Development Density amounts will become actual density to the extent we complete development of assets for which we have made such estimates.

"First-generation" is a lease on space that had been vacant for at least nine months or a lease on newly delivered space.

"Free Rent" means the amount of base rent and tenant reimbursements that are abated according to the applicable lease agreement(s).

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

"In-Service" refers to multifamily or commercial operating assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of June 30, 2025.

"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, excluding assets for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared.

"Second-generation" is a lease on space that had been vacant for less than nine months.

9


"Transaction and Other Costs" include costs related to completed, potential and pursued transactions, demolition costs, and severance and other costs.

"Under-Construction" refers to assets that were under construction during the three months ended June 30, 2025.

10


CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

in thousands

June 30, 2025

December 31, 2024

 

 

 

ASSETS

 

Real estate, at cost:

    

  

    

  

Land and improvements

$

995,504

$

1,109,172

Buildings and improvements

 

3,860,105

 

4,083,937

Construction in progress, including land

 

340,944

 

338,333

 

5,196,553

 

5,531,442

Less: accumulated depreciation

 

(1,420,865)

 

(1,419,983)

Real estate, net

 

3,775,688

 

4,111,459

Cash and cash equivalents

 

61,432

 

145,804

Restricted cash

 

29,530

 

37,388

Tenant and other receivables

 

21,372

 

23,478

Deferred rent receivable

 

175,709

 

170,153

Investments in unconsolidated real estate ventures

 

93,859

 

93,654

Deferred leasing costs, net

70,684

69,821

Intangible assets, net

52,863

47,000

Other assets, net

 

117,076

 

131,318

Assets held for sale

151,082

190,465

 

TOTAL ASSETS

$

4,549,295

$

5,020,540

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

  

 

  

Liabilities:

 

  

 

  

Mortgage loans, net

$

1,540,670

$

1,767,173

Revolving credit facility

 

226,000

 

85,000

Term loans, net

 

718,252

 

717,853

Accounts payable and accrued expenses

 

81,312

 

101,096

Other liabilities, net

 

116,109

 

115,827

Liabilities related to assets held for sale

 

956

 

901

Total liabilities

 

2,683,299

 

2,787,850

Commitments and contingencies

 

  

 

  

Redeemable noncontrolling interests

 

543,203

 

423,632

Total equity

 

1,322,793

 

1,809,058

 

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

$

4,549,295

$

5,020,540


Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

11


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

in thousands, except per share data

Three Months Ended June 30, 

Six Months Ended June 30, 

2025

2024

2025

2024

REVENUE

Property rental

    

$

106,509

    

$

112,536

$

208,008

    

$

235,172

Third-party real estate services, including reimbursements

 

14,805

 

17,397

 

29,719

 

35,265

Other revenue

 

5,165

 

5,387

 

9,438

 

10,067

Total revenue

 

126,479

 

135,320

 

247,165

 

280,504

EXPENSES

 

  

 

  

 

  

 

  

Depreciation and amortization

 

47,560

 

51,306

 

95,147

 

108,161

Property operating

 

34,875

 

36,254

 

68,312

 

71,533

Real estate taxes

 

12,651

 

14,399

 

24,823

 

28,194

General and administrative:

 

  

 

  

 

 

Corporate and other

 

16,720

 

17,001

 

32,277

 

31,974

Third-party real estate services

 

13,562

 

18,650

 

29,633

 

40,977

Transaction and other costs

 

2,846

 

824

 

4,757

 

2,338

Total expenses

 

128,214

 

138,434

 

254,949

 

283,177

OTHER INCOME (EXPENSE)

 

  

 

  

 

  

 

  

Income (loss) from unconsolidated real estate ventures, net

 

1,091

 

(226)

 

499

 

749

Interest and other income, net

 

698

 

3,432

 

1,223

 

5,532

Interest expense

 

(35,571)

 

(31,973)

 

(70,771)

 

(62,133)

Gain on the sale of real estate, net

 

41,832

 

89

 

42,369

 

286

Gain (loss) on the extinguishment of debt, net

 

2,234

 

 

(2,402)

 

Impairment loss

(31,813)

(1,025)

(40,296)

(18,236)

Total other income (expense)

 

(21,529)

 

(29,703)

 

(69,378)

 

(73,802)

LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT

 

(23,264)

 

(32,817)

 

(77,162)

 

(76,475)

Income tax (expense) benefit

 

83

 

(597)

 

283

 

871

NET LOSS

 

(23,181)

 

(33,414)

 

(76,879)

 

(75,604)

Net loss attributable to redeemable noncontrolling interests

 

3,940

 

3,454

 

11,918

 

7,988

Net loss attributable to noncontrolling interests

 

5,587

10,967

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

(19,241)

$

(24,373)

$

(64,961)

$

(56,649)

LOSS PER COMMON SHARE - BASIC AND DILUTED

$

(0.29)

$

(0.27)

$

(0.87)

$

(0.63)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED

 

68,287

 

91,030

 

74,867

 

91,832


Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

12


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

(Unaudited)

 

dollars in thousands

    

Three Months Ended June 30, 

Six Months Ended June 30, 

 

2025

2024

2025

2024

 

 

EBITDA, EBITDAre and Adjusted EBITDA

 

  

  

Net loss

$

(23,181)

$

(33,414)

$

(76,879)

$

(75,604)

Depreciation and amortization expense

47,560

51,306

95,147

108,161

Interest expense

35,571

31,973

70,771

62,133

Income tax expense (benefit)

(83)

597

(283)

(871)

Unconsolidated real estate ventures allocated share of above adjustments

1,835

1,830

3,617

4,382

EBITDA attributable to redeemable noncontrolling interests in consolidated real estate ventures

(270)

(270)

EBITDA

$

61,432

$

52,292

$

92,103

$

98,201

Gain on the sale of real estate, net

(41,832)

(89)

(42,369)

(286)

Pro rata share of gain on the sale of unconsolidated real estate assets

(1,500)

(1,500)

(480)

Real estate impairment loss

31,813

31,813

EBITDAre

$

49,913

$

52,203

$

80,047

$

97,435

Transaction and other costs (1)

2,846

824

4,757

2,338

Litigation costs (2)

2,500

2,500

(Income) loss from investments, net

(98)

(614)

278

(672)

Impairment loss related to non-depreciable real estate

1,025

8,483

18,236

(Gain) loss on the extinguishment of debt, net

(2,234)

2,402

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

(217)

(458)

(401)

(671)

Adjusted EBITDA

$

52,710

$

52,980

$

98,066

$

116,666

Net Debt to Annualized Adjusted EBITDA (3)

11.8

x

11.9

x

12.6

x

10.8

x

June 30, 2025

June 30, 2024

Net Debt (at JBG SMITH Share)

  

  

Consolidated indebtedness (4)

$

2,479,101

$

2,625,329

Unconsolidated indebtedness (4)

67,114

66,553

Total consolidated and unconsolidated indebtedness

2,546,215

2,691,882

Less: cash and cash equivalents

65,606

169,278

Net Debt (at JBG SMITH Share)

$

2,480,609

$

2,522,604


Note: All EBITDA measures as shown above are attributable to common limited partnership units ("OP Units") and certain fully vested incentive equity awards that may be convertible into OP Units.

(1)Includes costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(2)Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations.
(3)Quarterly Adjusted EBITDA is annualized by multiplying by four. Adjusted EBITDA for the six months ended June 30, 2025 and 2024 months is annualized by multiplying by two.
(4)Net of premium/discount and deferred financing costs.

13


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

(Unaudited)

 

in thousands, except per share data

Three Months Ended June 30, 

Six Months Ended June 30, 

 

2025

    

2024

XX

2025

    

2024

FFO and Core FFO

Net loss attributable to common shareholders

$

(19,241)

 

$

(24,373)

$

(64,961)

 

$

(56,649)

Net loss attributable to redeemable noncontrolling interests

 

(3,940)

 

(3,454)

 

(11,918)

 

(7,988)

Net loss attributable to noncontrolling interests

 

 

(5,587)

 

 

(10,967)

Net loss

 

(23,181)

 

(33,414)

 

(76,879)

 

(75,604)

Gain on the sale of real estate, net of tax

 

(41,832)

 

(89)

 

(42,369)

 

(1,498)

Pro rata share of gain on the sale of unconsolidated real estate assets

 

(1,500)

 

 

(1,500)

 

(480)

Real estate depreciation and amortization

 

46,508

 

49,631

 

92,469

 

104,818

Real estate impairment loss

31,813

31,813

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

 

786

 

799

 

1,565

 

2,290

FFO attributable to redeemable noncontrolling interests in consolidated real estate ventures

 

(270)

 

 

(270)

 

FFO Attributable to OP Units

$

12,324

 

$

16,927

$

4,829

 

$

29,526

FFO attributable to redeemable noncontrolling interests

 

(2,371)

 

(2,592)

 

(1,106)

 

(4,513)

FFO Attributable to Common Shareholders

$

9,953

 

$

14,335

$

3,723

 

$

25,013

FFO attributable to OP Units

$

12,324

 

$

16,927

$

4,829

 

$

29,526

Transaction and other costs, net of tax (1)

 

2,846

 

840

 

4,757

 

1,984

Litigation costs (2)

2,500

2,500

(Income) loss from investments, net of tax

(74)

(465)

211

(509)

Impairment loss related to non-depreciable real estate

1,025

8,483

18,236

(Gain) loss from mark-to-market on derivative instruments, net of noncontrolling interests

 

(24)

 

28

 

(56)

 

70

(Gain) loss on the extinguishment of debt, net

 

(2,234)

 

 

2,402

 

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

 

(217)

 

(458)

 

(401)

 

(671)

Amortization of management contracts intangible, net of tax

 

622

 

1,065

 

1,678

 

2,119

Core FFO Attributable to OP Units

$

15,743

 

$

18,962

$

24,403

 

$

50,755

Core FFO attributable to redeemable noncontrolling interests

 

(3,029)

 

(2,904)

 

(4,491)

 

(7,753)

Core FFO Attributable to Common Shareholders

$

12,714

 

$

16,058

$

19,912

 

$

43,002

FFO per common share - diluted

$

0.15

 

$

0.16

$

0.05

 

$

0.27

Core FFO per common share - diluted

$

0.19

 

$

0.18

$

0.27

 

$

0.47

Weighted average shares - diluted (FFO and Core FFO)

 

68,451

 

91,154

 

75,063

 

91,989

See footnotes on page 15.

14


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

(Unaudited)

 

in thousands, except per share data

Three Months Ended June 30, 

Six Months Ended June 30, 

 

    

2025

    

2024

2025

    

2024

FAD

Core FFO attributable to OP Units

    

$

15,743

    

$

18,962

$

24,403

    

$

50,755

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

 

(9,108)

 

(12,095)

 

(20,886)

 

(21,130)

Straight-line and other rent adjustments (4)

 

71

 

(2,509)

 

2,510

 

(3,939)

Third-party lease liability assumption (payments) refunds

 

 

(25)

 

 

(25)

Share-based compensation expense

 

7,345

 

10,864

 

13,877

 

20,243

Amortization of debt issuance costs

 

3,700

 

4,031

 

7,835

 

7,933

Unconsolidated real estate ventures allocated share of above adjustments

 

206

 

201

 

355

 

660

Non-real estate depreciation and amortization

 

251

 

299

 

509

 

593

FAD available to OP Units (A)

$

18,208

$

19,728

$

28,603

$

55,090

Distributions to common shareholders and unitholders (B)

$

15,332

$

19,012

$

32,942

$

38,010

FAD Payout Ratio (B÷A) (5)

 

84.2

%

 

96.4

%

 

115.2

%

 

69.0

%

Capital Expenditures

Maintenance and recurring capital expenditures

$

3,268

$

4,362

$

6,856

$

5,557

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

 

9

 

14

 

9

 

16

Second-generation tenant improvements and leasing commissions

 

5,818

 

7,719

 

13,764

 

15,536

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

 

13

 

 

257

 

21

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

 

9,108

 

12,095

 

20,886

 

21,130

Non-recurring capital expenditures

 

8,917

 

3,268

 

14,151

 

6,790

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

 

 

14

 

 

28

First-generation tenant improvements and leasing commissions

 

2,272

 

2,322

 

5,920

 

5,217

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

 

46

 

36

 

83

 

87

Non-recurring capital expenditures

 

11,235

 

5,640

 

20,154

 

12,122

Total JBG SMITH Share of Capital Expenditures

$

20,343

$

17,735

$

41,040

$

33,252


(1)Includes costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(2)Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations.
(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 the timing of capital expenditures, the commencement of new leases and the seasonality of our operations.

15


NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)

 

dollars in thousands

Three Months Ended June 30, 

Six Months Ended June 30, 

 

2025

2024

2025

2024

Net loss attributable to common shareholders

    

$

(19,241)

    

$

(24,373)

$

(64,961)

    

$

(56,649)

Net loss attributable to redeemable noncontrolling interests

 

(3,940)

 

(3,454)

 

(11,918)

 

(7,988)

Net loss attributable to noncontrolling interests

 

(5,587)

(10,967)

Net loss

(23,181)

(33,414)

(76,879)

(75,604)

Add:

 

  

 

  

 

  

 

  

Depreciation and amortization expense

 

47,560

 

51,306

 

95,147

 

108,161

General and administrative expense:

 

  

 

  

 

  

 

  

Corporate and other

 

16,720

 

17,001

 

32,277

 

31,974

Third-party real estate services

 

13,562

 

18,650

 

29,633

 

40,977

Transaction and other costs

 

2,846

 

824

 

4,757

 

2,338

Interest expense

 

35,571

 

31,973

 

70,771

 

62,133

(Gain) loss on the extinguishment of debt, net

 

(2,234)

 

 

2,402

 

Impairment loss

31,813

1,025

40,296

18,236

Income tax expense (benefit)

 

(83)

 

597

 

(283)

 

(871)

Less:

 

  

 

  

 

  

 

  

Third-party real estate services, including reimbursements revenue

 

14,805

 

17,397

 

29,719

 

35,265

Income (loss) from unconsolidated real estate ventures, net

 

1,091

 

(226)

 

499

 

749

Interest and other income, net

 

698

 

3,432

 

1,223

 

5,532

Gain on the sale of real estate, net

 

41,832

 

89

 

42,369

 

286

Adjustments:

NOI attributable to unconsolidated real estate ventures at our share

 

1,287

 

1,168

 

2,277

 

4,215

Real estate venture partner’s share of NOI attributable to consolidated real estate ventures

(272)

(272)

Non-cash rent adjustments (1)

 

71

 

(2,509)

 

2,510

 

(3,939)

Other adjustments (2)

 

399

 

3,324

 

2,092

 

(2,705)

Total adjustments

 

1,485

 

1,983

 

6,607

 

(2,429)

NOI

$

65,633

$

69,253

$

130,918

$

143,083

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

 

(1,469)

 

(2,341)

 

(3,696)

 

(5,374)

Operating Portfolio NOI

$

67,102

$

71,594

$

134,614

$

148,457

Non-Same Store NOI (4)

 

7,575

 

10,254

 

15,399

 

23,515

Same Store NOI (5)

$

59,527

$

61,340

$

119,215

$

124,942

Change in Same Store NOI

(3.0)

%

 

(4.6)

%

 

Number of properties in Same Store pool

34

 

34

 

  


(1)Adjustment to exclude deferred (straight-line) rent, above/below market lease amortization and lease incentive amortization.
(2)Adjustment to exclude commercial lease termination revenue, related party management fees and corporate entity activity.
(3)Includes the results of our Under-Construction assets and assets in the Development Pipeline.
(4)Includes the results of properties that were not In-Service for the entirety of both periods being compared, including disposed properties, 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.

16


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SEP

TABLE OF CONTENTS

JUNE 30, 2025

Table of Contents

Page

Overview

Disclosures

3-5

Company Profile

6

Financial Highlights

7

Portfolio Overview

8

Financial Information

Condensed Consolidated Balance Sheets

9

Condensed Consolidated Statements of Operations

10

Unconsolidated Real Estate Ventures - Balance Sheet and Operating Information

11

Other Tangible Assets and Liabilities

12

EBITDA, EBITDAre and Adjusted EBITDA Reconciliations (Non-GAAP)

13

FFO, Core FFO and FAD Reconciliations (Non-GAAP)

14-15

Third-Party Asset Management and Real Estate Services Business (Non-GAAP)

16

Pro Rata Adjusted General and Administrative Expenses (Non-GAAP)

17

Same Store NOI (Non-GAAP)

18

Summary NOI (Non-GAAP)

19

Summary NOI - Multifamily (Non-GAAP)

20

Summary NOI - Commercial (Non-GAAP)

21

Leasing Activity

Signed But Not Yet Commenced Leases

22

Leasing Activity - Multifamily

23

Leasing Activity - Office

24

Lease Expirations

25

Tenant Concentration

26

Industry Diversity

27

Property Data

Property Tables:

Multifamily

28-29

Commercial

30-31

Under-Construction

32

Development Pipeline

33-34

Disposition and Recapitalization Activity

35

Debt

Debt Summary

36

Debt by Instrument

37-38

Definitions

39-42

Appendix – Interest Expense, Transaction and Other Costs, and NOI Reconciliations (Non-GAAP)

43-45

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Page 2


DISCLOSURES

JUNE 30, 2025

Disclosures

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, financial condition and business 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 Investor Package. We also note the following forward-looking statements: the extent to which our portfolio of assets will be impacted by various actions of the current presidential administration, including ongoing efforts to reduce or adjust federal spending and headcount; the impacts of the federal government’s budget and tax priorities on leasing demand and growth in the Washington, DC metropolitan area; the impact of disruptions to the credit and capital markets on our ability to access capital, including refinancing maturing debt; our ability to maintain a strong capital base; potential Net Operating Income growth and the assumptions on which such growth is premised; our estimated future leverage (Net Debt/Annualized Adjusted EBITDA and Net Debt/total enterprise value) profile and potential offsets for expected increases to our Net Debt / Annualized Adjusted EBITDA; the economic impact, job growth, expansion of public transportation and related demand for multifamily and commercial properties of/from Amazon.com, Inc.'s ("Amazon") headquarters on/in the DC metropolitan area and National Landing and the speed with which such impact occurs; changes to the amount and manner in which tenants use space; long-term trends in demand for housing (including multifamily) and office space within major urban employment centers; whether we will be well-positioned to capitalize on rent growth, land sales, ground leases, and joint ventures; whether and the pace at which office property values and the macroeconomic landscape will improve; whether the construction and/or delivery of new infrastructure projects in and around National Landing will be completed at all or on the anticipated timeline; whether tenant vacates will occur on the timeline we anticipate; whether the industry mix of our office tenants and leasing performance of our office portfolio will shift as anticipated or at all; whether the strength of our prospective tenant pipeline will result in increases in new leasing activity; whether we will experience an improvement in retention rate of our office tenants in Northern Virginia (including National Landing); our ability to refinance debt secured by our multifamily assets; whether we will be able to successfully reposition certain buildings in our portfolio or acquire new properties on the expected timeline, or at all, and the impacts of those conversions and acquisitions, particularly in Northern Virginia (including National Landing); annualized Net Operating Income; adjusted annualized Net Operating Income; expected timing, completion, size, delivery dates and economic viability for the projects we are developing; the ability of any or all of our demand drivers, as well as increased in-person work requirements, to materialize and increase performance of, and foot traffic around, our multifamily and commercial portfolios at all or on the timeline anticipated and their effect on tenant retention rates, economic impact, job growth, expansion of public transportation and related demand in the Northern Virginia submarket (including National Landing); whether LEO Impact Capital will succeed in their plans to acquire, operate, and invest in multifamily housing in high impact neighborhoods to preserve affordability for middle-income residents; the impacts of removing certain assets in our portfolio from service; whether the value of our portfolio holdings will increase due to their location, demand drivers, our placemaking efforts and use diversification; whether we will be successful in our efforts to repurchase shares; whether we will succeed in recycling our assets to fund new investments, including development projects, acquisitions, distressed office investments and other opportunistic investments in partnership with third-party capital, and share repurchases; whether investments in partnership with third-party capital will allow us to monetize our land bank, take advantage of distressed office and multifamily opportunities, and generate additional fee revenue and carried interest income; whether our assets can be disposed of for values at or above NAV; whether in the case of our Under-Construction assets and assets in the Development Pipeline, estimated square feet, estimated number of units, earliest potential construction start, the estimated completion date, the estimated date of entitlements, estimated stabilization date, Estimated Incremental Investment, Estimated Total Investment, Projected NOI Yield, completion date, yield on cost, weighted average stabilization date, intended type of asset use and potential tenants, Estimated Potential Development Density, and Estimated Stabilized NOI are accurate; whether our Under-Construction assets will deliver the Annualized NOI that we anticipate; and whether the number of multifamily units and retailers in Northern Virginia (including National Landing) will increase to the levels anticipated or open on the timelines anticipated.

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 and political conditions in the Washington, DC metropolitan area, including reductions in federal government spending, headcount, or leasing, the timing of and costs associated with development and property improvements, tariffs and other trade barriers, supply chain disruptions, 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, 2024 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.

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Page 3


DISCLOSURES

JUNE 30, 2025

Organization and Basis of Presentation

JBG SMITH, a Maryland real estate investment trust, owns, operates and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, DC, most notably National Landing, that we believe have long-term growth potential and appeal to residential, office and retail tenants. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, highly amenitized, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's headquarters; Virginia Tech's $1 billion Innovation Campus; proximity to the Pentagon; and our placemaking initiatives and public infrastructure improvements. In addition, our third-party asset management and real estate services business provides fee-based real estate services.

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

Pro Rata Information

We present certain financial information and metrics in this Investor Package "at JBG SMITH Share," which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, "real estate ventures") as applied to these financial measures and metrics. Financial information "at JBG SMITH Share" is calculated on an asset-by-asset basis by applying our percentage economic interest to each applicable line item of that asset's financial information. "At JBG SMITH Share" information, which we also refer to as being "at share," "our pro rata share" or "our share," is not, and is not intended to be, a presentation in accordance with GAAP. Given that a 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 consolidated financial statements as reported under GAAP.

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in this Investor Package exclude our 10.0% subordinated interest in one commercial building and our 33.5% subordinated interest in four commercial buildings, as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures, as 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.

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Page 4


DISCLOSURES

JUNE 30, 2025

Definitions

See pages 39-42 for definitions of terms used in this Investor Package.

Non-GAAP Measures

This Investor Package includes non-GAAP measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why our management believes that the presentation of these measures provides useful information to investors regarding our financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this Investor Package. 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 Investor Package:

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")
EBITDA for Real Estate ("EBITDAre")
Adjusted EBITDA
Funds from Operations ("FFO")
Core FFO
Funds Available for Distribution ("FAD")
Third-Party Asset Management and Real Estate Services Business
Pro Rata Adjusted General and Administrative Expenses
Net Operating Income ("NOI")
Annualized NOI
Estimated Stabilized NOI
Projected NOI Yield
Same Store NOI
Consolidated and Unconsolidated Indebtedness
Consolidated and Unconsolidated Interest Expense
Net Debt
Historical Cost

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Page 5


COMPANY PROFILE

JUNE 30, 2025
(Unaudited)

Company Profile

Executive Officers

Company Snapshot as of June 30, 2025

W. Matthew Kelly

   

Chief Executive Officer and Trustee

    

Exchange/ticker

    

NYSE: JBGS

M. Moina Banerjee

 

Chief Financial Officer

 

Indicated annual dividend per share (1)

$

0.70

George L. Xanders

Chief Investment Officer

 

Dividend yield

 

4.0

% 

Steven A. Museles

 

Chief Legal Officer

 

  

 

  

Evan Regan-Levine

Chief Strategy Officer

 

Total Enterprise Value (dollars in billions, except share price)

 

  

 

Common share price

$

17.30

 

Common shares and common limited partnership units ("OP Units")
outstanding (in millions) (2)

 

76.02

 

Total market capitalization

$

1.32

 

Total consolidated and unconsolidated indebtedness at JBG SMITH Share

 

2.55

 

Less: cash and cash equivalents at JBG SMITH Share

 

(0.07)

 

Net Debt

$

2.48

 

Total Enterprise Value

$

3.80

 

  

 

Net Debt / Total Enterprise Value

 

65.3

% 


(1)Based on the latest dividend declaration.
(2)Includes certain fully vested incentive equity awards that may be convertible into OP Units.

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Page 6


FINANCIAL HIGHLIGHTS

JUNE 30, 2025
(Unaudited)

Financial Highlights

 

dollars in thousands, except per share data

    

Three Months Ended

Six Months Ended

June 30, 2025

June 30, 2025

 

Summary Financial Results

Total revenue

$

126,479

$

247,165

Net loss attributable to common shareholders

$

(19,241)

$

(64,961)

Per diluted common share

$

(0.29)

$

(0.87)

Operating portfolio NOI

$

67,102

$

134,614

FFO (1)

$

12,324

$

4,829

Core FFO (1)

$

15,743

$

24,403

FAD (1)

$

18,208

$

28,603

FAD payout ratio

 

84.2

%

 

115.2

%

EBITDA (1)

$

61,432

$

92,103

EBITDAre (1)

$

49,913

$

80,047

Adjusted EBITDA (1)

$

52,710

$

98,066

Net Debt / total enterprise value

 

65.3

% 

 

65.3

% 

Net Debt to annualized Adjusted EBITDA

 

11.8

x

 

12.6

x

June 30, 2025

Debt Summary (at JBG SMITH Share)

 

  

Total consolidated indebtedness (2)

$

2,479,101

Total consolidated and unconsolidated indebtedness (2)

$

2,546,215

Weighted average interest rates:

 

  

Variable rate debt (3)

 

5.65

Fixed rate debt

 

5.08

Total debt

 

5.26

Cash and cash equivalents

$

65,606


(1)Attributable to OP Units, which include units owned by JBG SMITH, and certain incentive equity awards that may be convertible into OP Units.
(2)Net of premium/discount and deferred financing costs.
(3)For floating rate loans with interest rate caps, the weighted average interest rate cap strike for consolidated debt and debt at JBG SMITH Share was 3.15%, and 3.25%, and the weighted average maturity date of the interest rate caps is in Q2 2026. The interest rate cap strike is exclusive of the credit spreads associated with the loans.

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Page 7


PORTFOLIO OVERVIEW

JUNE 30, 2025
(Unaudited)

Portfolio Overview

dollars in thousands

100% Share

At JBG SMITH Share

Number of

Units /

Units /

% 

%

Annualized

Annualized

 

Assets

Square Feet

Square Feet

Leased

Occupied (1)

Rent

NOI (2)

Operating

Multifamily (3)

 

  

 

  

 

  

 

  

 

  

 

  

 

  

National Landing

4

2,856

2,856

95.8%

94.0%

$

75,724

$

54,208

DC

8

2,512

2,326

93.5%

91.7%

69,915

56,736

In-Service

 

12

 

5,368

5,182

 

94.8%

92.9%

145,639

110,944

Recently Delivered

 

3

 

1,228

1,228

63.7%

57.5%

26,786

12,932

Multifamily – total / weighted average

 

15

 

6,596

 

6,410

 

89.0%

85.8%

$

172,425

$

123,876

Commercial

National Landing Unlevered

13

4,445,123

4,445,123

74.0%

71.6%

$

149,711

$

95,916

National Landing Levered

3

997,031

997,031

88.9%

88.7%

34,132

25,632

Other

5

1,520,763

1,185,695

75.4%

74.8%

39,818

18,436

Commercial - total / weighted average

    

21

    

6,962,917

    

6,627,849

    

76.5%

    

74.8%

    

$

223,661

    

$

139,984

Ground Leases (4)

2

$

$

4,548

 

Operating - In-service

 

35

 

5,368 Units/ 6,962,917 SF

 

5,182 Units/ 6,627,849 SF

 

83.4%

81.6%

$

369,300

$

255,476

Operating - Recently Delivered

3

1,228 Units

1,228 Units

63.7%

57.5%

$

26,786

$

12,932

Operating - Total / Weighted Average

38

6,596 Units/ 6,962,917 SF

6,410 Units/ 6,627,849 SF

81.8%

79.5%

$

396,086

$

268,408

Development (5)

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Under-Construction

 

1

 

355 Units

 

355 Units

 

  

 

 

  

Development Pipeline

 

19

 

10,714,700

 

8,672,800

 

  

 

  

 

  

 

  


(1)Percent Occupied excludes retail square footage.
(2)Annualized NOI includes $20.7 million from sold and recapitalized assets to date, including The Batley that was sold on July 10, 2025, $5.5 million from Tysons Dulles Plaza acquired on May 2, 2025, $2.3 million from 1101 17th Street, and $25.6 million from 1215, 1225 and 1235 S. Clark Street.
(3)2221 S. Clark Street - Residential and 900 W Street are excluded from Percent Leased, Percent Occupied and Annualized Rent metrics as they are operated as short-term rental properties.
(4)Assets for which we are the ground lessor (1700 M Street and 1831/1861 Wiehle Avenue) are excluded from Percent Leased, Percent Occupied and Annualized Rent metrics. See footnote (7) on page 19 for more information.
(5)Refer to pages 32 – 34 for detail on Under-Construction assets and assets in the Development Pipeline.

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Page 8


CONDENSED CONSOLIDATED BALANCE SHEETS

JUNE 30, 2025
(Unaudited)

Condensed Consolidated Balance Sheets

 

in thousands

June 30, 2025

December 31, 2024

 

 

  

ASSETS

Real estate, at cost:

    

  

    

  

Land and improvements

$

995,504

$

1,109,172

Buildings and improvements

 

3,860,105

 

4,083,937

Construction in progress, including land

 

340,944

 

338,333

 

5,196,553

 

5,531,442

Less: accumulated depreciation

 

(1,420,865)

 

(1,419,983)

Real estate, net

 

3,775,688

 

4,111,459

Cash and cash equivalents

 

61,432

 

145,804

Restricted cash

 

29,530

 

37,388

Tenant and other receivables

 

21,372

 

23,478

Deferred rent receivable

 

175,709

 

170,153

Investments in unconsolidated real estate ventures

 

93,859

 

93,654

Deferred leasing costs, net

70,684

69,821

Intangible assets, net

52,863

47,000

Other assets, net

 

117,076

 

131,318

Assets held for sale

151,082

190,465

TOTAL ASSETS

$

4,549,295

$

5,020,540

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

 

  

 

  

Liabilities:

 

  

 

  

Mortgage loans, net

$

1,540,670

$

1,767,173

Revolving credit facility

 

226,000

 

85,000

Term loans, net

 

718,252

 

717,853

Accounts payable and accrued expenses

 

81,312

 

101,096

Other liabilities, net

 

116,109

 

115,827

Liabilities related to assets held for sale

 

956

 

901

Total liabilities

 

2,683,299

 

2,787,850

Commitments and contingencies

 

  

 

  

Redeemable noncontrolling interests

 

543,203

 

423,632

Total equity

 

1,322,793

 

1,809,058

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

$

4,549,295

$

5,020,540


Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

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Page 9


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

JUNE 30, 2025
(Unaudited)

Condensed Consolidated Statements of Operations

in thousands, except per share data

Three Months Ended June 30, 

Six Months Ended June 30, 

 

2025

2024

2025

2024

 

REVENUE

Property rental

    

$

106,509

    

$

112,536

    

$

208,008

    

$

235,172

Third-party real estate services, including reimbursements

 

14,805

 

17,397

 

29,719

 

35,265

Other revenue

 

5,165

 

5,387

 

9,438

 

10,067

Total revenue

 

126,479

 

135,320

 

247,165

 

280,504

EXPENSES

 

  

 

  

 

  

 

  

Depreciation and amortization

 

47,560

 

51,306

 

95,147

 

108,161

Property operating

 

34,875

 

36,254

 

68,312

 

71,533

Real estate taxes

 

12,651

 

14,399

 

24,823

 

28,194

General and administrative:

 

 

 

 

Corporate and other

 

16,720

 

17,001

 

32,277

 

31,974

Third-party real estate services

 

13,562

 

18,650

 

29,633

 

40,977

Transaction and Other Costs

 

2,846

 

824

 

4,757

 

2,338

Total expenses

 

128,214

 

138,434

 

254,949

 

283,177

OTHER INCOME (EXPENSE)

 

  

 

  

 

  

 

  

Income (loss) from unconsolidated real estate ventures, net

 

1,091

 

(226)

 

499

 

749

Interest and other income, net

 

698

 

3,432

 

1,223

 

5,532

Interest expense

 

(35,571)

 

(31,973)

 

(70,771)

 

(62,133)

Gain on the sale of real estate, net

 

41,832

 

89

 

42,369

 

286

Gain (loss) on the extinguishment of debt, net

 

2,234

 

 

(2,402)

 

Impairment loss

(31,813)

 

(1,025)

 

(40,296)

 

(18,236)

Total other income (expense)

 

(21,529)

 

(29,703)

 

(69,378)

 

(73,802)

LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT

 

(23,264)

 

(32,817)

 

(77,162)

 

(76,475)

Income tax (expense) benefit

 

83

 

(597)

 

283

 

871

NET LOSS

 

(23,181)

 

(33,414)

 

(76,879)

 

(75,604)

Net loss attributable to redeemable noncontrolling interests

 

3,940

 

3,454

 

11,918

 

7,988

Net loss attributable to noncontrolling interests

5,587

 

10,967

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

(19,241)

$

(24,373)

$

(64,961)

$

(56,649)

LOSS PER COMMON SHARE - BASIC AND DILUTED

$

(0.29)

$

(0.27)

$

(0.87)

$

(0.63)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED

 

68,287

 

91,030

 

74,867

 

91,832


Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

Graphic

Page 10


UNCONSOLIDATED REAL ESTATE VENTURES

JUNE 30, 2025
(Unaudited)

Unconsolidated Real Estate Ventures

 

in thousands, at JBG SMITH Share

    

June 30, 2025

BALANCE SHEET INFORMATION

 

Total real estate, at cost

$

161,542

Less: accumulated depreciation

 

(17,522)

Real estate, net

 

144,020

Cash and cash equivalents

 

4,809

Other assets, net

 

11,652

Total assets

$

160,481

Borrowings, net

$

67,114

Other liabilities, net

 

10,579

Total liabilities

$

77,693

Three Months Ended

Six Months Ended

June 30, 2025

June 30, 2025

    

 

 

OPERATING INFORMATION

 

Total revenue

$

2,427

$

4,845

Expenses:

 

  

 

  

Depreciation and amortization

 

786

 

1,565

Property operating

 

843

 

1,872

Real estate taxes

 

426

 

874

Total expenses

 

2,055

 

4,311

Other income (expense):

 

  

 

  

Interest expense

 

(1,049)

 

(2,052)

Gain on the sale of real estate

 

1,500

 

1,500

Interest and other income, net

 

28

 

68

Net income

$

851

$

50

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

 

217

401

Other

 

23

 

48

Income from unconsolidated real estate ventures, net

$

1,091

$

499

Graphic

Page 11


OTHER TANGIBLE ASSETS AND LIABILITIES

JUNE 30, 2025
(Unaudited)

Other Tangible Assets and Liabilities

 

in thousands, at JBG SMITH Share

    

June 30, 2025

 

Other Tangible Assets, Net (1)

Restricted cash

$

30,955

Tenant and other receivables, net

 

21,587

Other assets, net

 

90,097

Total Other Tangible Assets, Net

$

142,639

Other Tangible Liabilities, Net (2)

 

  

Accounts payable and accrued liabilities

$

81,691

Other liabilities, net

 

80,680

Total Other Tangible Liabilities, Net

$

162,371


(1)Excludes cash and cash equivalents, and assets held for sale.
(2)Excludes liabilities related to assets held for sale.

Graphic

Page 12


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

JUNE 30, 2025
(Unaudited)

EBITDA, EBITDAre and Adjusted EBITDA

dollars in thousands

Three Months Ended June 30, 

Six Months Ended June 30, 

2025

2024

2025

2024

 

EBITDA, EBITDAre and Adjusted EBITDA

                    

                    

                    

                    

Net loss

    

$

(23,181)

    

$

(33,414)

    

$

(76,879)

    

$

(75,604)

  

Depreciation and amortization expense

47,560

51,306

95,147

108,161

Interest expense

35,571

31,973

70,771

62,133

Income tax expense (benefit)

(83)

597

(283)

(871)

Unconsolidated real estate ventures allocated share of above adjustments

1,835

1,830

3,617

4,382

EBITDA attributable to redeemable noncontrolling interests in consolidated real estate ventures

(270)

(270)

EBITDA

$

61,432

$

52,292

$

92,103

$

98,201

Gain on the sale of real estate, net

(41,832)

(89)

(42,369)

(286)

Pro rata share of gain on the sale of unconsolidated real estate assets

(1,500)

(1,500)

(480)

Real estate impairment loss

31,813

31,813

EBITDAre

$

49,913

$

52,203

$

80,047

$

97,435

Transaction and Other Costs (1)

2,846

824

4,757

2,338

Litigation costs (2)

2,500

2,500

(Income) loss from investments, net

(98)

(614)

278

(672)

Impairment loss related to non-depreciable real estate

1,025

8,483

18,236

(Gain) loss on the extinguishment of debt, net

(2,234)

2,402

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

(217)

(458)

(401)

(671)

Adjusted EBITDA

$

52,710

$

52,980

$

98,066

$

116,666

Net Debt to Annualized Adjusted EBITDA (3)

11.8

x

11.9

x

12.6

x

10.8

x

Net Debt (at JBG SMITH Share)

June 30, 2025

June 30, 2024

Consolidated indebtedness (4)

$

2,479,101

$

2,625,329

Unconsolidated indebtedness (4)

67,114

66,553

Total consolidated and unconsolidated indebtedness

2,546,215

2,691,882

Less: cash and cash equivalents

65,606

169,278

Net Debt (at JBG SMITH Share)

$

2,480,609

$

2,522,604


Note: All EBITDA measures as shown above are attributable to OP Units and certain fully vested incentive equity awards that may be convertible into OP Units.

(1)See page 44 for the components of Transaction and Other Costs.
(2)Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations.
(3)Quarterly Adjusted EBITDA is annualized by multiplying by four. Adjusted EBITDA for the six months ended June 30, 2025 and 2024 is annualized by multiplying by two.
(4)Net of premium/discount and deferred financing costs.

Graphic

Page 13


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

JUNE 30, 2025
(Unaudited)

FFO, Core FFO and FAD

in thousands, except per share data

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2025

    

2024

    

2025

    

2024

 

 

FFO and Core FFO

Net loss attributable to common shareholders

$

(19,241)

 

$

(24,373)

$

(64,961)

 

$

(56,649)

Net loss attributable to redeemable noncontrolling interests

 

(3,940)

 

(3,454)

 

(11,918)

 

(7,988)

Net loss attributable to noncontrolling interests

 

 

(5,587)

 

 

(10,967)

Net loss

 

(23,181)

 

(33,414)

 

(76,879)

 

(75,604)

Gain on the sale of real estate, net of tax

 

(41,832)

 

(89)

 

(42,369)

 

(1,498)

Pro rata share of gain on the sale of unconsolidated real estate assets

 

(1,500)

 

 

(1,500)

 

(480)

Real estate depreciation and amortization

 

46,508

 

49,631

 

92,469

 

104,818

Real estate impairment loss

31,813

 

 

31,813

 

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

 

786

 

799

 

1,565

 

2,290

FFO attributable to redeemable noncontrolling interests in consolidated real estate ventures

 

(270)

 

 

(270)

 

FFO Attributable to OP Units

$

12,324

 

$

16,927

$

4,829

 

$

29,526

FFO attributable to redeemable noncontrolling interests

 

(2,371)

 

(2,592)

 

(1,106)

 

(4,513)

FFO Attributable to Common Shareholders

$

9,953

 

$

14,335

$

3,723

 

$

25,013

FFO attributable to OP Units

$

12,324

 

$

16,927

$

4,829

 

$

29,526

Transaction and Other Costs, net of tax (1)

 

2,846

 

840

 

4,757

 

1,984

Litigation costs (2)

2,500

 

 

2,500

 

(Income) loss from investments, net of tax

(74)

 

(465)

 

211

 

(509)

Impairment loss related to non-depreciable real estate

1,025

8,483

18,236

(Gain) loss from mark-to-market on derivative instruments, net of noncontrolling interests

 

(24)

 

28

 

(56)

 

70

(Gain) loss on the extinguishment of debt, net

 

(2,234)

 

 

2,402

 

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

 

(217)

 

(458)

 

(401)

 

(671)

Amortization of management contracts intangible, net of tax

 

622

 

1,065

 

1,678

 

2,119

Core FFO Attributable to OP Units

$

15,743

 

$

18,962

$

24,403

 

$

50,755

Core FFO attributable to redeemable noncontrolling interests

 

(3,029)

 

(2,904)

 

(4,491)

 

(7,753)

Core FFO Attributable to Common Shareholders

$

12,714

 

$

16,058

$

19,912

 

$

43,002

FFO per common share - diluted

$

0.15

 

$

0.16

$

0.05

 

$

0.27

Core FFO per common share - diluted

$

0.19

 

$

0.18

$

0.27

 

$

0.47

Weighted average shares - diluted (FFO and Core FFO)

 

68,451

 

91,154

 

75,063

 

91,989

See footnotes on page 15.

Graphic

Page 14


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

JUNE 30, 2025
(Unaudited)

 

in thousands, except per share data

Three Months Ended June 30, 

Six Months Ended June 30, 

 

2025

2024

2025

2024

FAD

Core FFO attributable to OP Units

    

$

15,743

    

$

18,962

$

24,403

    

$

50,755

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

 

(9,108)

 

(12,095)

 

(20,886)

 

(21,130)

Straight-line and other rent adjustments (4)

 

71

 

(2,509)

 

2,510

 

(3,939)

Third-party lease liability assumption (payments) refunds

 

 

(25)

 

 

(25)

Share-based compensation expense

 

7,345

 

10,864

 

13,877

 

20,243

Amortization of debt issuance costs

 

3,700

 

4,031

 

7,835

 

7,933

Unconsolidated real estate ventures allocated share of above adjustments

 

206

 

201

 

355

 

660

Non-real estate depreciation and amortization

 

251

 

299

 

509

 

593

FAD available to OP Units (A)

$

18,208

$

19,728

$

28,603

$

55,090

Distributions to common shareholders and unitholders (B)

$

15,332

$

19,012

$

32,942

$

38,010

FAD Payout Ratio (B÷A) (5)

 

84.2

%

 

96.4

%

 

115.2

%

 

69.0

%

Capital Expenditures

Maintenance and recurring capital expenditures

$

3,268

$

4,362

$

6,856

$

5,557

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

 

9

 

14

 

9

 

16

Second-generation tenant improvements and leasing commissions

 

5,818

 

7,719

 

13,764

 

15,536

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

 

13

 

 

257

 

21

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

 

9,108

 

12,095

 

20,886

 

21,130

Non-recurring capital expenditures

 

8,917

 

3,268

 

14,151

 

6,790

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

 

 

14

 

 

28

First-generation tenant improvements and leasing commissions

 

2,272

 

2,322

 

5,920

 

5,217

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

 

46

 

36

 

83

 

87

Non-recurring capital expenditures

 

11,235

 

5,640

 

20,154

 

12,122

Total JBG SMITH Share of Capital Expenditures

$

20,343

$

17,735

$

41,040

$

33,252


(1)See page 44 for the components of Transaction and Other Costs.
(2)Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations.
(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 the timing of capital expenditures, the commencement of new leases and the seasonality of our operations.

Graphic

Page 15


THIRD-PARTY ASSET MANAGEMENT AND REAL ESTATE SERVICES BUSINESS (NON-GAAP)

JUNE 30, 2025
(Unaudited)

Third-Party Asset Mgmt and Real Estate Services Business

 

in thousands, at JBG SMITH Share

Three Months Ended June 30, 2025

  

Service Revenue

Property management fees

    

$

3,279

Asset management fees

 

706

Development fees

 

464

Leasing fees

 

1,099

Construction management fees

 

267

Other service revenue

 

1,035

Total Revenue (1)

$

6,850

Pro rata adjusted general and administrative expense: third-party real estate services (2)

 

(5,397)

Total Services Revenue Less Allocated General and Administrative Expenses (3)

$

1,453


(1)Service revenues from real estate ventures are calculated on an asset-by-asset basis by applying our real estate venture partners' respective economic interests to the fees we earned from each real estate venture. Included in "Third-party real estate services, including reimbursements" in our Condensed Consolidated Statement of Operations are $7.9 million of reimbursement revenue and $0.1 million of service revenue from our economic interest in real estate ventures that are excluded from this table.
(2)Our personnel perform services for wholly owned properties and properties we manage on behalf of third parties, real estate ventures and the legacy funds formerly organized by The JBG Companies (the "JBG Legacy Funds"). We allocate personnel and other costs to wholly owned properties (included in "Property operating expenses" and "General and administrative expense: corporate and other" in our Condensed Consolidated Statement of Operations) and to properties owned by the third parties, real estate ventures and the JBG Legacy Funds (included in "General and administrative expense: third-party real estate services" in our Condensed Consolidated Statement of Operations) using estimates of the time spent performing services related to properties in the respective portfolios and other allocation methodologies.

Allocated general and administrative expenses related to real estate ventures are calculated on an asset-by-asset basis by applying our real estate venture partners' respective economic interests to the total general and administrative expenses allocated to each asset. See "Pro Rata Adjusted General and Administrative Expenses" on the next page for a reconciliation of "General and administrative expenses: third-party real estate services" to "Pro Rata Adjusted General and Administrative Expenses."

(3)Services revenue, excluding reimbursement revenue and service revenue from our economic interest in real estate ventures, less allocated general and administrative expenses. Management uses this measure as a supplemental performance measure of its third-party asset management and real estate services business and believes it provides useful information to investors because it reflects only those revenue and expense items incurred by us and can be used to assess the profitability of the third-party asset management and real estate services business.

Graphic

Page 16


PRO RATA ADJUSTED GENERAL AND ADMINISTRATIVE EXPENSES
(NON-GAAP)

JUNE 30, 2025
(Unaudited)

Pro Rata Adjusted G&A

 

in thousands

Three Months Ended June 30, 2025

  

Adjustments (1)

 

Per Statement

Pro Rata

 

of Operations

A

B

Adjusted

 

General and Administrative Expenses

Corporate and other

    

$

16,720

    

$

    

$

314

    

$

17,034

Third-party real estate services

 

13,562

 

(7,851)

 

(314)

 

5,397

Total

$

30,282

$

(7,851)

$

$

22,431


(1)Adjustments:

-  Removes $7.9 million of general and administrative expenses reimbursed by third-party owners of real estate we manage related to revenue which has been excluded from Service Revenue on page 16. Revenue from reimbursements is included in "Third-party real estate services, including reimbursements" in our Condensed Consolidated Statement of Operations.

-  Reflects an adjustment to allocate our share of general and administrative expenses of unconsolidated real estate ventures from "Third-party real estate services" to "Corporate and other."

Graphic

Page 17


SAME STORE NOI (NON-GAAP)

JUNE 30, 2025
(Unaudited)

Summary & Same Store NOI

c

dollars in thousands, at JBG SMITH share

Three Months Ended June 30, 

Six Months Ended June 30, 

2025

2024

% Change

2025

2024

% Change

Same Store (1)

Multifamily

Revenue

$

42,698

$

42,119

1.4%

$

84,837

$

83,333

1.8%

Expenses

(17,902)

(16,939)

5.7%

(34,332)

(32,281)

6.4%

Same Store NOI

$

24,796

$

25,180

(1.5%)

$

50,505

$

51,052

(1.1%)

Commercial

Revenue

$

54,283

$

56,875

(4.6%)

$

107,726

$

113,612

(5.2%)

Expenses

(20,689)

(21,663)

(4.5%)

(41,296)

(41,998)

(1.7%)

Same Store NOI

$

33,594

$

35,212

(4.6%)

$

66,430

$

71,614

(7.2%)

Ground Leases

Same Store NOI

$

1,137

$

948

19.9%

$

2,280

$

2,276

0.2%

Total Same Store NOI

$

59,527

$

61,340

(3.0%)

$

119,215

$

124,942

(4.6%)

Non-Same Store NOI

7,575

10,254

(26.1%)

15,399

23,515

(34.5%)

Total Operating Portfolio NOI

$

67,102

$

71,594

(6.3%)

$

134,614

$

148,457

(9.3%)


(1)Same Store refers to the pool of assets that were owned, operated and In-Service for the entirety of both periods being compared, excluding assets for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared.

Graphic

Page 18


SUMMARY NOI (NON-GAAP)

JUNE 30, 2025
(Unaudited)

Summary NOI

 

dollars in thousands

NOI for the Three Months Ended June 30, 2025 at JBG SMITH Share

Consolidated

Unconsolidated

Multifamily

Commercial

Ground Leases (7)

Total

 

Number of operating assets

 

36

 

2

 

15

 

21

 

2

 

38

Property rental (1)

$

96,749

$

2,186

$

49,845

$

47,944

$

1,146

$

98,935

Tenant expense reimbursement

    

 

7,680

    

 

127

    

 

3,740

    

 

3,907

    

 

160

    

 

7,807

Other revenue

 

5,096

 

108

 

638

 

4,566

 

 

5,204

Total revenue

 

109,525

 

2,421

 

54,223

 

56,417

 

1,306

 

111,946

Operating expenses

 

(43,645)

 

(895)

 

(23,254)

 

(21,117)

 

(169)

 

(44,540)

Ground rent expense

 

(304)

 

 

 

(304)

 

 

(304)

Total expenses

 

(43,949)

 

(895)

 

(23,254)

 

(21,421)

 

(169)

 

(44,844)

Operating Portfolio NOI (2)

$

65,576

$

1,526

$

30,969

$

34,996

$

1,137

$

67,102

Annualized NOI (3)

$

262,304

$

6,104

$

123,876

$

139,984

$

4,548

$

268,408

Additional Information

 

  

 

  

 

  

 

  

 

  

 

  

Free Rent (at 100% share)

$

5,884

$

204

$

837

$

4,834

$

417

$

6,088

Free Rent (at JBG SMITH Share)

$

5,811

$

112

$

764

$

4,742

$

417

$

5,923

Annualized Free Rent (at JBG SMITH Share) (4)

$

23,244

$

448

$

3,056

$

18,968

$

1,668

$

23,692

% occupied (at JBG SMITH Share) (5)

 

79.4

%  

 

85.6

%  

 

85.8

%  

 

74.8

%  

 

 

79.5

% 

Annualized base rent of signed leases, not commenced (at 100% share) (6)

$

6,252

$

60

$

420

$

5,892

$

$

6,312

Annualized base rent of signed leases, not commenced (at JBG SMITH Share) (6)

$

6,252

$

32

$

420

$

5,864

$

$

6,284


(1)Property rental revenue excludes straight-line rent adjustments, commercial lease termination revenue and other non-cash GAAP adjustments, and includes payments associated with assumed lease liabilities.
(2)NOI excludes $3.1 million of related party management fees at JBG SMITH Share. See definition of NOI on page 41.
(3)Annualized NOI includes $20.7 million from sold and recapitalized assets to date, including The Batley that was sold on July 10, 2025, $5.5 million from Tysons Dulles Plaza acquired on May 2, 2025, $2.3 million from 1101 17th Street, and $25.6 million from 1215, 1225 and 1235 S. Clark Street.
(4)Represents JBG SMITH's share of Free Rent for the three months ended June 30, 2025 multiplied by four.
(5)Assets operated as short-term rental properties (2221 S. Clark Street – Residential and 900 W Street), and assets for which we are the ground lessor (1700 M Street and 1831/1861 Wiehle Avenue) are excluded from the Percent Occupied metric.
(6)Represents monthly base rent before Free Rent and straight-line rent adjustments, plus estimated tenant reimbursements for the month in which the lease commences, multiplied by 12. Includes only leases for office and retail spaces for which rent had not yet commenced as of June 30, 2025.
(7)Includes 1700 M Street and 1831/1861 Wiehle Avenue for which we are the ground lessor. The ground rent on 1700 M Street is currently $4.95 million per annum and includes market escalations and CPI resets. The ground lease expires on December 4, 2117. Ground rent on 1831/1861 Wiehle Avenue is currently $1.2 million per annum. The ground lease expires on April 29, 2121.

Graphic

Page 19


SUMMARY NOI - MULTIFAMILY (NON-GAAP)

JUNE 30, 2025
(Unaudited)

Summary NOI – Multifamily

dollars in thousands

NOI for the Three Months Ended June 30, 2025 at JBG SMITH Share

 

    

Consolidated

    

National Landing

    

DC

    

Total

  

 

Number of operating assets

 

15

 

7

 

8

 

15

Property rental (1)

$

49,845

$

27,419

$

22,426

$

49,845

Tenant expense reimbursement

 

3,740

 

1,618

 

2,122

 

3,740

Other revenue

 

638

 

196

 

442

 

638

Total revenue

 

54,223

 

29,233

 

24,990

 

54,223

Operating expenses

 

(23,254)

 

(12,448)

 

(10,806)

 

(23,254)

Ground rent expense

 

 

 

 

Total expenses

 

(23,254)

 

(12,448)

 

(10,806)

 

(23,254)

Operating Portfolio NOI (2)

$

30,969

$

16,785

$

14,184

$

30,969

Annualized NOI (3)

$

123,876

$

67,140

$

56,736

$

123,876

Additional Information

 

  

 

  

 

  

 

  

Free Rent (at 100% share)

$

837

$

66

$

771

$

837

Free Rent (at JBG SMITH Share)

$

764

$

66

$

698

$

764

Annualized Free Rent (at JBG SMITH Share) (4)

$

3,056

$

264

$

2,792

$

3,056

% occupied (at JBG SMITH Share) (5)

 

85.8

%  

 

82.4

%  

 

91.7

%  

 

85.8

% 

Annualized base rent of signed leases, not commenced (at 100% share) (6)

$

420

$

420

$

$

420

Annualized base rent of signed leases, not commenced (at JBG SMITH Share) (6)

$

420

$

420

$

$

420


(1)Property rental revenue excludes straight-line rent adjustments, retail lease termination revenue and other non-cash GAAP adjustments, and includes payments associated with assumed lease liabilities.
(2)NOI excludes $1.5 million of related party management fees at JBG SMITH Share. See definition of NOI on page 41.
(3)Annualized NOI includes $20.6 million from sold and recapitalized assets to date, including The Batley that was sold on July 10, 2025.
(4)Represents JBG SMITH's share of Free Rent for the three months ended June 30, 2025 multiplied by four.
(5)2221 S. Clark Street – Residential and 900 W Street are excluded from the Percent Occupied metric as they are operated as short-term rental properties.
(6)Represents monthly base rent before Free Rent and straight-line rent adjustments, plus estimated tenant reimbursements for the month in which the lease commences, multiplied by 12. Includes only leases for retail spaces for which rent had not yet commenced as of June 30, 2025.

Graphic

Page 20


SUMMARY NOI - COMMERCIAL (NON-GAAP)

JUNE 30, 2025
(Unaudited)

Summary NOI – Commercial

dollars in thousands

NOI for the Three Months Ended June 30, 2025 at JBG SMITH Share

 

    

Consolidated

    

Unconsolidated

    

National Landing

Other

Total

  

Number of operating assets

 

19

 

2

 

16

5

21

Property rental (1)

$

45,758

$

2,186

$

40,949

$

6,995

$

47,944

Tenant expense reimbursement

 

3,780

 

127

 

3,109

 

798

 

3,907

Other revenue

 

4,458

 

108

 

4,095

 

471

 

4,566

Total revenue

 

53,996

 

2,421

 

48,153

 

8,264

 

56,417

Operating expenses

 

(20,222)

 

(895)

 

(17,766)

 

(3,351)

 

(21,117)

Ground rent expense

 

(304)

 

 

 

(304)

 

(304)

Total expenses

 

(20,526)

 

(895)

 

(17,766)

 

(3,655)

 

(21,421)

Operating Portfolio NOI (2)

$

33,470

$

1,526

$

30,387

$

4,609

$

34,996

Annualized NOI (3)

$

133,880

$

6,104

$

121,548

$

18,436

$

139,984

Additional Information

 

  

 

  

 

 

 

  

Free Rent (at 100% share)

$

4,630

$

204

$

3,744

$

1,090

$

4,834

Free Rent (at JBG SMITH Share)

$

4,630

$

112

$

3,744

$

998

$

4,742

Annualized Free Rent (at JBG SMITH Share) (4)

$

18,520

$

448

$

14,976

$

3,992

$

18,968

% occupied (at JBG SMITH Share)

 

74.5

%  

 

85.6

%  

 

74.7

%

 

74.8

%

 

74.8

% 

Annualized base rent of signed leases, not commenced (at 100% share) (5)

$

5,832

$

60

$

5,832

$

60

$

5,892

Annualized base rent of signed leases, not commenced (at JBG SMITH Share) (5)

$

5,832

$

32

$

5,832

$

32

$

5,864


(1)Property rental revenue excludes straight-line rent adjustments, commercial lease termination revenue and other non-cash GAAP adjustments, and includes payments associated with assumed lease liabilities.
(2)NOI excludes $1.6 million of related party management fees at JBG SMITH Share. See definition of NOI on page 41.
(3)Annualized NOI includes $0.1 million from sold assets, $5.5 million from Tysons Dulles Plaza acquired on May 2, 2025, $2.3 million from 1101 17th Street, and $25.6 million from 1215, 1225 and 1235 S. Clark Street.
(4)Represents JBG SMITH's share of Free Rent for the three months ended June 30, 2025 multiplied by four.
(5)Represents monthly base rent before Free Rent and straight-line rent adjustments, plus estimated tenant reimbursements for the month in which the lease commences, multiplied by 12. Includes only leases for office and retail spaces for which rent had not yet commenced as of June 30, 2025.

Graphic

Page 21


SIGNED BUT NOT YET COMMENCED LEASES

JUNE 30, 2025
(Unaudited)

Signed But Not Yet Commenced Leases

 

in thousands, at JBG SMITH Share

Total 

 

Annualized

Estimated 

Estimated Rent (1) for the Quarter Ending

Assets

    

C/U (2)

    

Rent (3)

    

September 30, 2025

    

December 31, 2025

    

March 31, 2026

    

June 30, 2026

    

September 30, 2026

    

December 31, 2026

 

 

Multifamily

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Operating

C

$

420

$

$

20

$

105

$

105

$

105

$

105

Commercial

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Operating

 

C

$

5,832

$

101

$

102

$

102

$

785

$

1,452

$

1,458

Operating

U

32

3

8

Total

$

5,864

$

101

$

102

$

102

$

785

$

1,455

$

1,466

Total

$

6,284

$

101

$

122

$

207

$

890

$

1,560

$

1,571


Note: Includes only leases for office and retail spaces for which rent had not yet commenced as of June 30, 2025.

(1)Represents contractual monthly base rent before Free Rent, plus estimated tenant reimbursements for the month in which the lease is estimated to commence, multiplied by the applicable number of months for each quarter based on the lease's estimated commencement date.
(2)"C" denotes a consolidated interest. "U" denotes an unconsolidated interest.
(3)Represents contractual monthly base rent before Free Rent, plus estimated tenant reimbursements for the month in which the lease is expected to commence, multiplied by 12.

Graphic

Page 22


LEASING ACTIVITY - MULTIFAMILY

JUNE 30, 2025
(Unaudited)

Leasing Activity - Multifamily

Three Months Ended June 30, 

2025

2024

Effective new lease rates (1)

1.0%

1.0%

Effective renewal lease rates (1)

8.9%

9.0%

Effective blended lease rates (1)

5.0%

5.1%

Renewal rate

49.0%

51.6%


Note: At JBG SMITH Share. Includes assets that were In-Service for the entirety of both periods being compared, excluding assets for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. Excludes non-market units and assets which are operated as short-term rental properties (2221 S. Clark Street - Residential and 900 W Street).

(1)Average change in rent versus expiring rent, net of concessions. Excludes leases with lease terms less than nine months.

Graphic

Page 23


LEASING ACTIVITY - OFFICE

JUNE 30, 2025
(Unaudited)

Leasing Activity – Office

square feet in thousands, at JBG SMITH Share

    

Three Months Ended

Six Months Ended

 

June 30, 2025

June 30, 2025

 

New Leasing:

Square feet leased

87

101

Initial rent (1)

$

46.75

$

47.10

Straight-line rent (2)

$

49.06

$

49.52

Weighted average lease term (years)

7.5

6.7

Weighted average Free Rent period (months)

4.2

3.8

Tenant improvements and leasing commissions per square foot per annum

$

12.01

$

11.70

Renewal Leasing:

 

Square feet leased

121

178

Initial rent (1)

$

50.75

$

51.53

Straight-line rent (2)

$

45.80

$

47.85

Weighted average lease term (years)

4.5

3.6

Weighted average Free Rent period (months)

4.9

3.5

Tenant improvements and leasing commissions per square foot per annum

$

2.76

$

2.64

Total Leasing:

Square feet leased

208

279

Initial rent (1)

$

49.07

$

49.92

Straight-line rent (2)

$

47.16

$

48.46

Weighted average lease term (years)

5.8

4.7

Weighted average Free Rent period (months)

4.6

3.6

Tenant improvements and leasing commissions per square foot per annum

$

7.80

$

7.29

Mark-to-Market on second-generation space:

 

 

Square feet leased

198

255

Cash basis:

 

  

 

  

Initial rent (1)

$

49.53

$

50.34

Prior escalated rent

$

52.73

$

52.74

% change

 

(6.1)

%

 

(4.6)

%

GAAP basis:

 

  

 

  

Straight-line rent (2)

$

47.61

$

48.62

Prior straight-line rent

$

50.02

$

50.37

% change

 

(4.8)

%

 

(3.5)

%


Note: The leasing activity and related statistics are based on leases signed during the period and are not intended to coincide with the commencement of the recognition of property rental revenue in accordance with GAAP. Second-generation space represents square footage that was vacant for less than nine months. Weighted average lease term is weighted by square footage and weighted average Free Rent period is weighted by Annualized Rent. Percentage rent is excluded from the initial rent, straight-line rent, Free Rent, and mark-to-market metrics.

(1)Represents the cash basis weighted average starting rent per square foot, which is generally indicative of market rents. Triple net leases are converted to a gross basis by adding estimated tenant reimbursements to monthly base rent. Most leases include Free Rent and periodic step-ups in rent which are not included in the initial cash basis rent per square foot but are included in the GAAP basis rent per square foot.
(2)Represents the GAAP basis weighted average rent per square foot that is recognized over the term of the respective leases, including the effect of Free Rent and fixed step-ups in rent.

Graphic

Page 24


LEASE EXPIRATIONS

JUNE 30, 2025
(Unaudited)

Lease Expirations

At JBG SMITH Share

    

    

    

    

    

    

    

Estimated

 

% of

Annualized

 

% of

Annualized

Total

Annualized

Rent Per

 

Number

Total

Rent

Annualized

Rent Per

Square Foot at

 

 

Year of Lease Expiration

of Leases

Square Feet

Square Feet

(in thousands)

Rent

Square Foot

Expiration (1)

 

Month-to-Month

 

5

 

24,940

 

0.5

%  

$

835

 

0.4

%  

$

33.49

$

33.49

2025

 

39

 

325,213

 

6.2

%  

 

15,576

 

6.6

%  

 

47.90

 

47.29

2026

 

63

 

349,518

 

6.7

%  

 

17,064

 

7.3

%  

 

48.82

 

49.61

2027

 

50

 

690,222

 

13.2

%  

 

32,812

 

14.0

%  

 

47.54

 

49.90

2028

 

37

 

412,274

 

7.9

%  

 

19,171

 

8.2

%  

 

46.50

 

49.70

2029

 

34

 

271,658

 

5.2

%  

 

12,665

 

5.4

%  

 

46.62

 

51.39

2030

 

32

 

571,502

 

10.9

%  

 

27,155

 

11.6

%  

 

47.51

 

53.88

2031

 

35

 

614,735

 

11.8

%  

 

23,790

 

10.1

%  

 

38.70

 

41.96

2032

 

18

 

655,137

 

12.5

%  

 

26,460

 

11.3

%  

 

40.39

 

43.46

2033

 

27

 

355,516

 

6.8

%  

 

15,394

 

6.6

%  

 

48.66

 

59.93

Thereafter

 

53

 

960,774

 

18.3

%  

 

43,627

 

18.5

%  

 

45.41

 

58.66

Total / Weighted Average

 

393

 

5,231,489

 

100.0

%  

$

234,549

 

100.0

%  

$

45.17

$

50.62


Note: Includes all leases as of June 30, 2025 for which a tenant has taken occupancy 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 5.5 years.

(1)Represents monthly base rent before Free Rent, plus tenant reimbursements, as of lease expiration multiplied by 12 and divided by square footage. Triple net leases are converted to a gross basis by adding tenant reimbursements to monthly base rent. Tenant reimbursements at lease expiration are estimated by escalating tenant reimbursements as of June 30, 2025, or management's estimate thereof, by 2.75% annually through the lease expiration year.

Graphic

Page 25


TENANT CONCENTRATION

JUNE 30, 2025
(Unaudited)

Tenant Concentration

 dollars in thousands

    

    

    

At JBG SMITH Share

 

Tenant

Number of Leases

Square Feet

% of Total Square Feet

Annualized 
Rent

% of Total Annualized Rent

 

1

U.S. Government (GSA)

30

1,390,703

26.6

%  

$

55,161

23.5

% 

2

 

Amazon

3

357,339

 

6.8

%  

16,538

 

7.1

%

3

 

Lockheed Martin Corporation

2

183,442

 

3.5

%  

9,145

 

3.9

%

4

 

Accenture Federal Services LLC

2

123,706

 

2.4

%  

5,726

 

2.4

%

5

 

Public Broadcasting Service

1

120,328

 

2.3

%  

5,120

 

2.2

%

6

 

Whole Foods Market Group Inc

3

98,625

 

1.9

%  

3,878

 

1.7

%

7

 

American Diabetes Association

1

80,998

 

1.5

%  

3,779

 

1.6

%

8

 

Booz Allen Hamilton Inc

2

69,328

 

1.3

%  

3,480

 

1.5

%

9

 

National Consumer Cooperative

1

65,736

 

1.3

%  

3,372

 

1.4

%

10

 

SAIC

3

62,963

 

1.2

%  

3,165

 

1.3

%

11

 

Na Ali'i Consulting & Sales LLC

2

66,952

 

1.3

%  

3,149

 

1.3

%

12

 

The Aerospace Corporation

2

63,529

 

1.2

%  

2,886

 

1.2

%

13

Technomics Inc

1

64,353

1.2

%  

2,841

1.2

%

14

 

DRS Tech Inc dba Finmeccanica

1

46,184

 

0.9

%  

2,283

 

1.0

%

15

 

Dixon Hughes Goodman LLP

1

49,036

 

0.9

%  

2,282

 

1.0

%

16

 

Nooks LLC

1

46,381

 

0.9

%  

2,237

 

1.0

%

17

 

Conservation International Foundation

1

43,483

 

0.8

%  

2,101

 

0.9

%

18

 

The Cadmus Group LLC

1

42,361

 

0.8

%  

1,949

 

0.8

%

19

 

Interstate Operating Company LP

1

35,073

 

0.7

%  

1,946

 

0.8

%

20

 

Alamo Drafthouse Cinemas

1

52,453

 

1.0

%  

1,935

 

0.8

%

 

Other

333

2,168,516

 

41.5

%  

101,577

 

43.4

%

 

Total

393

5,231,489

 

100.0

%  

$

234,549

 

100.0

%


Note: Includes all leases as of June 30, 2025 for which a tenant has taken occupancy for office and retail space within our operating portfolio.

Graphic

Page 26


INDUSTRY DIVERSITY

JUNE 30, 2025
(Unaudited)

Industry Diversity

  dollars in thousands

At JBG SMITH Share

 

    

    

Number of

    

    

% of Total

    

Annualized

    

% of Total

 

Industry

Leases

Square Feet

Square Feet

Rent

Annualized Rent

 

1

 

Government Contractors

 

88

 

1,332,171

 

25.5

%  

$

64,179

 

27.4

%

2

 

Government

 

33

 

1,399,218

 

26.7

%  

55,596

 

23.7

% 

3

 

Business Services

 

35

 

755,649

 

14.4

%  

 

35,054

 

14.9

%

4

 

Member Organizations

 

27

 

398,301

 

7.6

%  

 

20,332

 

8.7

%

5

 

Food and Beverage

 

55

 

166,385

 

3.2

%  

 

9,226

 

3.9

%

6

 

Communications

 

3

 

160,690

 

3.1

%  

 

7,066

 

3.0

%

7

 

Health Services

 

26

 

181,173

 

3.5

%  

 

6,489

 

2.8

%

8

 

Real Estate

 

22

 

147,440

 

2.8

%  

 

4,571

 

1.9

%

9

 

Legal Services

 

11

 

72,003

 

1.4

%  

 

3,333

 

1.4

%

10

 

Educational Services

 

5

 

48,486

 

0.9

%  

 

2,426

 

1.0

%

 

Other

 

88

 

569,973

 

10.9

%  

 

26,277

 

11.3

%

 

Total

 

393

 

5,231,489

 

100.0

%  

$

234,549

 

100.0

%


Note: Includes all leases as of June 30, 2025 for which a tenant has taken occupancy for office and retail space within our operating portfolio.

Graphic

Page 27


PROPERTY TABLE - MULTIFAMILY

JUNE 30, 2025
(Unaudited)

Property Table – Multifamily

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

Monthly

Monthly

Same Store (2):

Number

Total

Multifamily

Retail

Multifamily

Retail

Annualized

Rent

Rent Per

%

Q2 2024 2025 /

Year Built /

of

Square

Square

Square

%

%

Rent

Per

Square

Multifamily Assets

Submarket

Ownership

C/U (1)

YTD 2024 - 2025

Renovated

Units

Feet

Feet

Feet

% Leased

Occupied

Occupied

(in thousands)

Unit (3)

Foot (4)

National Landing

 

  

 

  

 

  

 

  

 

  

 

 

 

 

 

 

 

 

RiverHouse Apartments
(Ashley, James and Potomac)

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1960 / 2014

 

1,676

 

1,326,219

 

1,324,889

 

1,330

 

95.1%

93.5%

100.0%

$

40,307

$

2,142

$

2.71

The Bartlett

 

National Landing

 

100.0

%  

C

 

Y / Y

 

2016 / N/A

 

699

 

619,372

 

577,295

 

42,077

 

97.2%

94.8%

100.0%

 

26,176

 

3,086

 

3.74

220 20th Street

 

National Landing

 

100.0

%  

C

 

Y / Y

 

2009 / N/A

 

265

 

271,476

 

269,913

 

1,563

 

95.9%

94.7%

100.0%

 

9,241

 

3,045

 

2.99

2221 S. Clark Street-
Residential (5)

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1964 / 2016

 

216

 

96,948

 

96,948

 

 

92.2%

85.6%

 

4,957

 

2,234

 

4.82

DC

  

 

  

 

  

 

  

 

 

 

 

 

 

 

 

 

 

The Wren

U Street/Shaw

100.0

%

C

Y / Y

2020 / N/A

433

332,682

289,686

42,996

93.2%

90.1%

100.0%

$

11,781

$

2,236

$

3.35

The Batley (6)

Union Market

100.0

%  

C

Y / Y

2019 / N/A

432

300,388

300,388

96.5%

94.4%

12,552

2,564

3.69

F1RST Residences

 

Ballpark

 

100.0

%  

C

 

Y / Y

 

2017 / N/A

 

325

 

270,928

 

249,456

 

21,472

 

92.6%

91.1%

100.0%

 

10,485

 

2,511

 

3.26

Atlantic Plumbing

 

U Street/Shaw

 

100.0

%  

C

 

Y / Y

 

2015 / N/A

 

310

 

245,228

 

221,788

 

23,440

 

94.7%

92.6%

90.7%

 

10,414

 

2,724

 

3.81

1221 Van Street

 

Ballpark

 

100.0

%  

C

 

Y / Y

 

2018 / N/A

 

291

 

225,592

 

202,715

 

22,877

 

92.3%

90.0%

100.0%

 

9,188

 

2,491

 

3.56

901 W Street

U Street/Shaw

100.0

%  

C

Y / Y

2019 / N/A

161

154,379

135,499

18,880

92.5%

93.8%

74.5%

5,923

2,739

3.27

900 W Street (5)

U Street/Shaw

100.0

%  

C

Y / Y

2019 / N/A

95

71,050

71,050

88.4%

84.2%

4,524

4,712

6.21

West Half (6)

 

Ballpark

 

60.0

%  

C

 

Y / Y

 

2019 / N/A

 

465

 

385,372

 

343,089

 

42,283

 

91.9%

90.3%

90.7%

15,953

2,670

3.63

Total / Weighted Average (5)

 

  

 

  

 

  

 

  

 

  

 

5,368

 

4,299,634

 

4,082,716

 

216,918

 

94.7%

92.8%

95.0%

$

152,020

$

2,513

$

3.24

Recently Delivered

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

  

 

  

 

  

 

  

National Landing

Reva

National Landing

100.0

%

C

N/N

2024 / N/A

471

324,188

310,417

13,771

74.2%

72.0%

38.5%

$

11,420

$

2,721

$

4.13

The Grace

National Landing

100.0

%

C

N/N

2024 / N/A

337

311,903

287,229

24,674

81.3%

77.2%

81.8%

12,067

3,539

4.18

The Zoe (7)

National Landing

100.0

%

C

N/N

2025 / N/A

420

274,995

266,879

8,116

31.4%

25.5%

3,299

2,570

4.31

Total / Weighted Average

 

  

 

  

 

  

 

1,228

 

911,086

 

864,525

 

46,561

63.7%

57.5%

54.8%

$

26,786

$

3,000

$

4.17

Operating - Total / Weighted Average (5)

 

  

 

  

 

  

 

  

 

6,596

 

5,210,720

 

4,947,241

 

263,479

 

89.1%

85.9%

87.8%

$

178,806

$

2,576

$

3.36

Under-Construction

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

National Landing

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Valen (7)

National Landing

100.0

%

C

355

303,932

292,962

10,970

Total

 

  

 

  

 

  

 

  

 

  

 

6,951

 

5,514,652

 

5,240,203

 

274,449

 

  

 

  

 

  

 

  

 

  

 

  

Graphic

Page 28


PROPERTY TABLE - MULTIFAMILY

JUNE 30, 2025
(Unaudited)

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

Monthly

Monthly

Same Store (2):

Number

Total

Multifamily

Retail

Multifamily

Retail

Annualized

Rent

Rent Per

%

Q2 2024 2025 /

Year Built /

of

Square

Square

Square

%

%

Rent

Per

Square

Multifamily Assets

Submarket

Ownership

C/U (1)

YTD 2024 - 2025

Renovated

Units

Feet

Feet

Feet

% Leased

Occupied

Occupied

(in thousands)

Unit (3)

Foot (4)

Totals at JBG SMITH Share (5)

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

National Landing

2,856

2,314,015

2,269,045

44,970

95.8%

94.0%

100.0%

$

75,724

$

2,485

$

3.02

DC

2,326

1,831,470

1,676,435

155,035

93.5%

91.7%

94.0%

69,915

2,533

3.52

In-Service assets

 

  

 

  

 

  

 

  

 

  

 

5,182

 

4,145,485

 

3,945,480

 

200,005

 

94.8%

92.9%

95.3%

$

145,639

$

2,507

$

3.23

Recently Delivered assets

 

  

 

  

 

  

 

  

 

  

 

1,228

911,086

864,525

46,561

63.7%

57.5%

54.8%

26,786

3,000

4.17

Operating - Total/Weighted Average

 

  

 

  

 

  

 

  

 

6,410

 

5,056,571

 

4,810,005

 

246,566

 

89.0%

85.8%

87.7%

$

172,425

$

2,573

$

3.35

Under-Construction assets

 

  

 

  

 

  

 

  

 

  

 

355

 

303,932

 

292,962

 

10,970

 

 

  

 

  

 

  

 

  

Number of Assets and Total Square Feet/Units Reconciliation

 

Number of

At 100% Share

At JBG SMITH Share

 

 

Operating Assets

    

Assets

    

Square Feet/Units

    

Square Feet/Units

  

Q1 2025

 

15

 

5,208,989 SF/
6,459 Units

 

5,208,989 SF/
6,459 Units

Acquisitions

 

 

 

Placed into service (7)

 

1

 

274,995 SF/
420 Units

 

274,995 SF/
420 Units

Dispositions (6)

(1)

 

(273,264) SF /
(283) Units

 

(427,413) SF /
(469) Units

Out-of-service adjustment

 

Portfolio reclassification

Building re-measurements

 

 

Q2 2025

 

15

 

5,210,720 SF/
6,596 Units

 

5,056,571 SF/
6,410 Units


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)Represents multifamily rent divided by occupied multifamily units; retail rent is excluded from this metric. Occupied units may differ from leased units because leased units include leases that have been signed but the tenant has not yet taken occupancy (not yet included in Percent Occupied metrics).
(4)Represents multifamily rent divided by occupied multifamily square footage; retail rent and retail square footage are excluded from this metric. Occupied multifamily square footage may differ from leased multifamily square footage because leased multifamily square footage includes space for leases that have been signed but the tenant has not yet taken occupancy (not yet included in Percent Occupied metrics).
(5)2221 S. Clark Street – Residential and 900 W Street are excluded from Percent Leased, Percent Occupied, Annualized Rent, Monthly Rent Per Unit and Monthly Rent per Square Foot metrics as they are operated as short-term rental properties.
(6)See "Disposition and Recapitalization Activity" on page 35.
(7)In Q1 2025, we completed the construction of 2001 South Bell Street, which was rebranded as The Zoe and placed into service in Q2 2025. 2000 South Bell Street, which is under construction, was rebranded as Valen.

Graphic

Page 29


PROPERTY TABLE - COMMERCIAL

JUNE 30, 2025
(Unaudited)

Property Table – Commercial

    

    

    

    

    

    

    

    

    

    

    

    

    

Office

 

Annualized

Retail

 

Same Store (2):

Annualized

Rent Per

Annualized

 

%

Q2 2024 2025 /

Year Built /

Total

Office

Retail

%

Office %

Retail %

Rent

Square

Rent Per

 

Commercial Assets

Submarket

Ownership

C/U (1)

YTD 2024 - 2025

Renovated

Square Feet

Square Feet

Square Feet

Leased

Occupied

Occupied

(in thousands)

Foot (3)

Square Foot (4)

 

National Landing

 

  

 

  

 

  

 

  

 

 

 

 

 

 

1550 Crystal Drive (5)

National Landing

 

100.0

%  

C

 

Y / Y

 

1980 / 2020

 

555,173

 

449,873

105,300

88.7%

86.1%

99.5%

$

22,884

$

46.27

$

47.31

2121 Crystal Drive

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1985 / 2006

 

509,869

 

504,282

5,587

64.0%

63.6%

100.0%

 

16,090

 

50.00

 

9.79

2345 Crystal Drive

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1988 / 2019

 

499,635

 

489,010

10,625

33.3%

32.4%

74.3%

 

7,847

 

49.45

 

2231 Crystal Drive

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1987 / 2009

 

468,731

 

416,804

51,927

73.6%

70.6%

97.4%

 

16,256

 

48.53

 

39.10

2011 Crystal Drive

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1984 / 2006

 

441,797

 

435,035

6,762

67.9%

57.0%

 

12,445

 

50.22

 

2451 Crystal Drive

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1990 / 2019

 

402,276

 

390,219

12,057

85.4%

85.2%

92.6%

 

15,070

 

49.59

 

47.41

241 18th Street S. (5)

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1977 / 2013

 

338,414

 

334,095

4,319

87.7%

86.9%

100.0%

 

13,006

 

44.36

 

30.27

201 12th Street S.

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1987 / 2014

 

329,692

 

317,479

12,213

70.1%

69.0%

100.0%

 

9,318

 

40.00

 

45.81

251 18th Street S. (5)

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1975 / 2013

 

301,072

 

297,534

3,538

98.0%

99.0%

15.1%

 

14,026

 

47.52

 

57.86

1770 Crystal Drive

National Landing

100.0

%  

C

Y / Y

2020 / N/A

273,787

259,651

14,136

98.3%

100.0%

67.8%

12,622

46.24

64.16

200 12th Street S.

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1985 / 2013

 

202,761

 

202,761

52.8%

52.8%

 

4,937

 

46.08

 

1901 South Bell Street (5)

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1968 / 2008

 

77,788

 

77,788

100.0%

100.0%

 

3,039

 

39.07

 

Crystal Drive Retail (5)

 

National Landing

 

100.0

%  

C

 

Y / Y

 

2003 / 2004

 

44,128

 

44,128

90.3%

90.3%

 

2,171

 

 

54.45

1235 S. Clark Street

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1981 / 2007

 

384,688

 

336,342

48,346

72.4%

68.7%

97.8%

 

11,132

 

43.32

 

23.72

1215 S. Clark Street

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1983 / 2016

 

336,159

 

333,546

2,613

99.6%

100.0%

44.5%

 

11,546

 

34.49

 

34.28

1225 S. Clark Street

 

National Landing

 

100.0

%  

C

 

Y / Y

 

1982 / 2013

 

276,184

 

263,334

12,850

99.1%

100.0%

80.9%

 

11,455

 

42.72

 

19.82

 Other

 

  

 

  

 

  

 

  

 

 

 

 

 

 

Tysons Dulles Plaza (6)

Tysons

100.0

%

C

N/N

1988 / 2020

491,494

450,721

40,773

65.9%

65.5%

70.1%

$

13,988

$

43.63

$

38.75

800 North Glebe Road

 

Ballston

 

100.0

%  

C

 

Y / Y

 

2012 / N/A

 

305,006

 

278,644

26,362

73.9%

72.1%

92.4%

10,723

47.39

49.15

One Democracy Plaza (7) (8)

 

Bethesda- Rock Spring

 

100.0

%  

C

 

Y / Y

 

1987 / 2013

 

213,417

 

211,249

2,168

89.9%

89.8%

100.0%

5,586

29.23

19.02

4747 Bethesda Avenue (9)

Bethesda CBD

20.0

%

U

Y / Y

2019 / N/A

300,535

286,226

14,309

100.0%

100.0%

100.0%

22,570

72.73

122.41

1101 17th Street

 

DC CBD

 

55.0

%  

U

 

Y / Y

 

1964 / 1999

 

210,311

 

200,557

9,754

80.3%

78.2%

82.8%

 

9,105

 

54.45

 

70.35

 Operating - Total / Weighted Average

 

  

 

  

 

  

 

  

 

6,962,917

 

6,535,150

427,767

77.4%

75.7%

89.5%

$

245,816

$

46.62

$

44.57

 Total at JBG SMITH Share

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

National Landing Unlevered

 

  

 

  

 

  

 

  

 

  

 

4,445,123

 

4,174,531

270,592

74.0%

71.6%

91.1%

$

149,711

$

47.01

$

44.73

National Landing Levered

997,031

933,222

63,809

88.9%

88.7%

92.2%

34,132

39.57

23.24

Other

1,185,695

1,108,166

77,530

75.4%

74.8%

80.5%

39,818

44.38

48.21

 Operating - Total / Weighted Average

 

  

 

  

 

  

 

  

 

6,627,849

 

6,215,919

411,931

76.5%

74.8%

89.3%

$

223,661

$

45.20

$

41.88

Graphic

Page 30


PROPERTY TABLE - COMMERCIAL

JUNE 30, 2025
(Unaudited)

 

Number of Assets and Total Square Feet Reconciliation

 

    

Number of

    

At 100% Share

    

At JBG SMITH Share

 

Operating Assets

Assets

Square Feet

Square Feet

 

Q1 2025

 

20

 

6,471,783

 

6,136,795

Acquisitions (6)

1

491,494

491,494

Placed into service

 

 

 

Dispositions

 

 

 

Out-of-service adjustment

 

 

(1,853)

 

(1,853)

Portfolio reclassification

 

 

Building re-measurements

 

 

1,493

 

1,413

Other

Q2 2025

 

21

 

6,962,917

 

6,627,849


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)Represents annualized office rent divided by occupied office square footage; annualized retail rent and retail square footage are excluded from this metric. Annualized Rent and Annualized Rent per Square Foot exclude percentage rent and the square footage of tenants that only pay percentage rent. Occupied office square footage may differ from leased office square footage because leased office square footage includes space for leases that have been signed but the tenant has not yet taken occupancy (not yet included in Percent Occupied metrics).
(4)Represents annualized retail rent divided by occupied retail square footage. Annualized Rent and Annualized Rent per Square Foot exclude percentage rent and the square footage of tenants that only pay percentage rent. Occupied retail square footage may differ from leased retail square footage because leased retail square footage includes space for leases that have been signed but the tenant has not yet taken occupancy (not yet included in Percent Occupied metrics).
(5)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.

Not Available

 

Commercial Asset

    

In-Service

    

for Lease

 

1550 Crystal Drive

555,173

4,281

241 18th Street S.

338,414

25,249

251 18th Street S.

301,072

38,678

1901 South Bell Street

77,788

197,124

Crystal Drive Retail

44,128

85,052

2221 S. Clark Street - Office

-

35,182

(6)On May 2, 2025, we acquired Tysons Dulles Plaza for $42.3 million.
(7)Subject to a ground lease with an expiration date of 11/17/2084.
(8)Not Metro-Served.
(9)Includes JBG SMITH's corporate office lease for approximately 84,400 SF.

Graphic

Page 31


PROPERTY TABLE – UNDER-CONSTRUCTION

JUNE 30, 2025
(Unaudited)

Property Table – Under Construction

dollars in thousands

 

Schedule

At JBG SMITH Share

Estimated

Estimated

Estimated

Estimated

Estimated

Estimated

 

%

Square

Number of

Construction

Completion

Stabilization

Historical

Incremental

Total

  

 

Asset

    

Submarket

    

Ownership

Feet

Units

Start Date

Date

Date

    

Cost (1)

Investment

Investment

Multifamily

National Landing

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Valen (2)

National Landing

100.0

%

303,932

355

Q1 2022

Q3 2025

Q4 2026

$

166,854

$

13,027

$

179,881

Weighted average Projected NOI Yield at JBG SMITH Share:

    

Multifamily

Estimated Total Investment

 

6.0

%  

Estimated Incremental Investment

 

82.2

%  

Estimated Stabilized NOI at JBG SMITH Share (dollars in millions)

$

10.7


Note: At 100% share, unless otherwise noted.

(1)Historical Cost excludes certain GAAP adjustments such as capitalized interest and ground lease costs. See definition of Historical Cost on page 40.
(2)Formerly known as 2000 South Bell Street.

Graphic

Page 32


PROPERTY TABLE – DEVELOPMENT PIPELINE

JUNE 30, 2025
(Unaudited)

Property Table – Development

dollars in thousands

 

 

Earliest

 

Potential

Estimated

%

Construction

Estimated Potential Development Density (SF)

Number of

Asset

 

Submarket

Ownership

Start Date (1)

Total

 

Multifamily

Office

 

Retail

Units

 

National Landing

 

  

 

 

  

  

 

  

 

2100/2200 Crystal Drive Land

National Landing

100.0%

2025

576,800

576,800

540

1415 S. Eads Street

National Landing

100.0%

2025

538,000

533,800

4,200

570

3330 Exchange Avenue

National Landing

50.0%

2025

239,800

216,400

23,400

240

3331 Exchange Avenue

National Landing

50.0%

2025

180,600

164,300

16,300

170

RiverHouse Land

National Landing

100.0%

2026

2,046,900

2,020,500

26,400

1,515

Potomac Yard Landbay F/G/H

National Landing

50.0% / 100.0%

2026

1,846,000

944,000

844,000

58,000

765

2250 Crystal Drive

National Landing

100.0%

2026

696,200

681,300

14,900

825

223 23rd Street

National Landing

100.0%

2026

492,100

484,100

8,000

610

1901 South Bell Street Land (2)

National Landing

100.0%

2026

265,600

265,600

185

101 12th Street S.

National Landing

100.0%

2026

239,600

234,400

5,200

2525 Crystal Drive

National Landing

100.0%

2027

373,000

370,000

3,000

370

1800 South Bell Street

National Landing

100.0%

2027

208,700

202,200

6,500

130

DC

 

  

 

  

 

  

  

 

  

 

Gallaudet Parcel 2-3 (3)

Union Market

100.0%

2026

819,100

758,200

60,900

820

Gallaudet Parcel 4 (3)

Union Market

100.0%

2027

644,200

605,200

39,000

645

Other VA

Tysons Dulles Plaza Land (2)

Tysons

100.0%

2028

300,000

300,000

300

Other Development Parcels (4)

1,248,100

142,200

1,105,900

Total

 

 

10,714,700

 

8,264,600

2,184,300

 

265,800

 

7,685

Totals at JBG SMITH Share

National Landing

6,717,200

5,943,700

656,400

117,100

5,390

DC

1,655,600

1,406,100

149,600

99,900

1,465

Other VA

300,000

300,000

300

8,672,800

7,649,800

806,000

217,000

7,155

Fully Entitled

4,859,600

3,872,500

806,000

181,100

4,215

Entitlement In Process

3,813,200

3,777,300

35,900

2,940

8,672,800

7,649,800

806,000

217,000

7,155

Historical Cost at JBG SMITH Share (5)

 

$ 391,118

See footnotes on page 34.

Graphic

Page 33


PROPERTY TABLE – DEVELOPMENT PIPELINE

JUNE 30, 2025
(Unaudited)

Footnotes

Note: At 100% share, unless otherwise noted.

(1)Represents the earliest potential year in which construction could commence, subject to receipt of full entitlements, completion of design and market conditions. Office developments are pre-lease dependent.
(2)Currently encumbered by an operating commercial asset.
(3)Controlled through an option to acquire a leasehold interest with estimated stabilized annual ground rent payments totaling approximately $3.6 million. As of June 30, 2025, the weighted average remaining term for the option is 1.9 years.
(4)Comprises four assets in which we have a minority interest.
(5)Historical Cost includes certain intangible assets, such as option and transferable density rights values; and excludes certain GAAP adjustments, such as capitalized interest and ground lease costs. See definition of Historical Cost on page 40.

Graphic

Page 34


DISPOSITION AND RECAPITALIZATION ACTIVITY

JUNE 30, 2025
(Unaudited)

Disposition Activity

dollars in thousands, at JBG SMITH Share

Units /

Gross Sales

 

Assets

% Ownership

Asset Type

Location

Date Disposed

Total Square Feet

Price

 

Q1 2025

8001 Woodmont

100.0%

Multifamily

Bethesda, MD

February 19, 2025

322 Units /
19,542 Retail SF

$

194,000

Q2 2025

Capitol Point - North

100.0%

Development Pipeline

Washington, DC

June 20, 2025

451,400 SF

(1)

11,000

WestEnd25

100.0%

Multifamily

Washington, DC

June 25, 2025

283 Units

186,000

Subtotal

$

197,000

Q3 2025 To Date

The Batley

100.0%

Multifamily

Washington, DC

July 10, 2025

432 Units

$

155,000

Total

 

  

 

  

 

  

 

  

 

$

546,000


(1)Square footage represents estimated potential development density.

Recapitalization Activity:

On May 28, 2025, we sold a 40.0% interest in a real estate venture that owns West Half, a multifamily asset with 465 units in Washington, DC, for $100.0 million.

Graphic

Page 35


DEBT SUMMARY

JUNE 30, 2025
(Unaudited)

Debt Summary

dollars in thousands, at JBG SMITH Share

    

2025

    

2026

    

2027

    

2028

    

2029

    

Thereafter

    

Total

 

 

Consolidated and Unconsolidated Principal Balance

Unsecured Debt:

Revolving credit facility ($750 million commitment) (1)

$

$

$

226,000

$

$

$

$

226,000

Term loans ($720 million commitment)

 

 

200,000

 

 

520,000

 

 

 

720,000

Total unsecured debt

 

 

200,000

 

226,000

 

520,000

 

 

 

946,000

Secured Debt:

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Consolidated principal balance

 

 

105,000

 

260,360

 

85,000

 

273,620

 

831,439

 

1,555,419

Unconsolidated principal balance

 

33,000

 

 

35,000

 

 

 

 

68,000

Total secured debt

 

33,000

 

105,000

 

295,360

 

85,000

 

273,620

 

831,439

 

1,623,419

Total Consolidated and Unconsolidated Principal Balance

$

33,000

$

305,000

$

521,360

$

605,000

$

273,620

$

831,439

$

2,569,419

% of total debt maturing

 

1.3

%  

 

11.9

%  

 

20.3

%  

 

23.5

%  

 

10.6

%  

 

32.4

%  

 

100.0

% 

% floating rate (2)

 

100.0

%  

 

18.9

%  

 

85.7

%  

 

14.0

%  

 

 

26.2

%  

 

32.7

%

% fixed rate (3)

 

 

81.1

%  

 

14.3

%  

 

86.0

%  

 

100.0

%  

 

73.8

%  

 

67.3

%

Weighted Average Interest Rates

 

  

 

  

 

  

 

  

 

  

 

  

 

  

Variable rate (4)

 

5.63

%

 

4.89

%

 

6.23

%

 

6.02

%

 

 

4.50

%  

 

5.65

%

Fixed rate

 

 

5.34

%  

 

3.94

%  

 

4.58

%

 

5.19

%

 

5.49

%  

 

5.08

%

Total Weighted Average Interest Rates

 

5.63

%  

 

5.25

%  

 

5.91

%  

 

4.78

%  

 

5.19

%  

 

5.23

%  

 

5.26

%

Revolving Credit Facility and Term Loans

    

Revolving

    

    

    

    

Total/

Credit

Tranche A1

Tranche A2

2023

Weighted

Facility (1)

Term Loan

Term Loan

Term Loan

Average

Credit limit

$

750,000

$

200,000

$

400,000

$

120,000

$

1,470,000

Outstanding principal balance

$

226,000

$

200,000

$

400,000

$

120,000

$

946,000

Letters of credit

$

$

$

$

$

Undrawn capacity

$

524,000

$

$

$

$

524,000

Interest rate spread (5)

1.59

%

1.44

%

1.49

%

1.50

%

1.50

%

All-In interest rate (6)

6.04

%

5.44

%

4.30

%

5.51

%

5.11

%

Initial maturity date

Jun‑27

Jan‑26

Jan‑28

Jun‑28


Note: Amounts shown based on initial maturity date.

(1)In July 2025, we repaid $146.0 million under the revolving credit facility.
(2)Floating rate debt includes floating rate loans with interest rate caps.
(3)Fixed rate debt includes floating rate loans with interest rate swaps. Including interest rate caps, 84.4% of our debt is fixed or hedged.
(4)For floating rate loans with interest rate caps, the weighted average interest rate cap strike for consolidated debt and debt at JBG SMITH Share was 3.15% and 3.25%, and the weighted average maturity date of the interest rate caps is in Q2 2026. The interest rate cap strike is exclusive of the credit spreads associated with the loans.
(5)The interest rate for the revolving credit facility excludes a 0.20% facility fee.
(6)The all-in interest rate is inclusive of interest rate swaps. As of June 30, 2025, we had interest rates swaps for the Tranche A-1 Term Loan, the Tranche A-2 Term Loan and the 2023 Term Loan.

Graphic

Page 36


DEBT BY INSTRUMENT

JUNE 30, 2025
(Unaudited)

Debt by Instrument

dollars in thousands

Stated

Interest

Current

Initial

Extended

%

Principal

Interest

Rate

Annual

Maturity

Maturity

 

 

Asset

Ownership

Balance

 Rate

Hedge (1)

 

Interest Rate (2)

Date

Date (3)

 

Consolidated

1215 S. Clark Street (4)

100.0

%

$

105,000

S + 1.35

%

Swap

4.89

%  

12/22/26

12/22/26

Tranche A‑1 Term Loan

 

100.0

%  

200,000

 

S + 1.44

%  

Swap

 

5.44

%  

01/14/26

01/14/27

The Zoe and Valen (5)

100.0

%

185,947

S + 2.25

%

Cap

6.57

%  

01/22/27

01/22/27

1235 S. Clark Street

 

100.0

%  

 

74,413

 

3.94

%  

Fixed

 

3.94

%  

11/01/27

11/01/27

Tranche A‑2 Term Loan

 

100.0

%  

 

400,000

 

S + 1.49

%  

Swap

 

4.30

%  

01/13/28

01/13/28

Revolving Credit Facility (6)

 

100.0

%  

 

226,000

 

S + 1.59

%  

 

6.04

%  

06/29/27

06/29/28

2023 Term Loan

100.0

%  

120,000

S + 1.50

%  

Swap

5.51

%  

06/29/28

06/29/28

1225 S. Clark Street

 

100.0

%  

 

85,000

 

S + 1.70

%  

 

6.02

%  

07/27/28

07/27/28

The Grace and Reva

100.0

%  

273,620

5.19

%  

Fixed

5.19

%  

12/01/29

12/01/29

Multifamily Credit Facility (The Wren and F1RST Residences)

100.0

%  

187,557

5.13

%

Fixed

5.13

%

02/01/30

02/01/30

RiverHouse Apartments (Ashley and Potomac)

 

100.0

%  

258,936

 

5.03

%  

Fixed

 

5.03

%  

04/01/30

04/01/30

1221 Van Street

100.0

%  

87,253

S + 2.62

%  

Swap

6.59

%  

08/01/30

08/01/30

220 20th Street

100.0

%  

80,240

S + 2.62

%  

Swap

6.60

%  

08/01/30

08/01/30

The Bartlett (7)

100.0

%  

217,453

S + 2.62

%  

Cap

4.50

%  

08/01/30

08/01/30

Total Consolidated Principal Balance

 

 

2,501,419

 

  

 

  

 

  

 

  

 

  

Deferred financing costs and premium / (discount) - mortgage loans

 

 

(14,749)

 

  

 

  

 

  

 

  

Deferred financing costs - revolving credit facility and term loans

 

 

(7,569)

 

  

 

  

 

  

 

  

Total Consolidated Indebtedness

$

2,479,101

 

  

 

  

 

  

 

  

Total Consolidated Indebtedness (net of premium / (discount) and deferred financing costs)

 

  

 

  

 

  

 

  

 

  

 

  

Mortgage loans

$

1,540,670

 

  

 

  

 

  

 

  

 

  

Revolving credit facility

 

226,000

 

 

  

 

  

 

  

 

  

Deferred financing costs, net (included in other assets)

 

(5,821)

 

  

 

 

  

 

  

 

  

Term loans

 

718,252

 

  

 

 

  

 

  

 

  

Total Consolidated Indebtedness

$

2,479,101

 

  

 

  

 

  

 

  

 

  

Graphic

Page 37


DEBT BY INSTRUMENT

JUNE 30, 2025
(Unaudited)

dollars in thousands

Stated

Interest

Current

Initial

Extended

 

%

Principal

Interest

Rate

Annual

Maturity

Maturity

Asset

Ownership

Balance

 Rate

Hedge (1)

 

Interest Rate (2)

Date

Date (3)

 

Unconsolidated

1101 17th Street (8)

55.0

%  

$

60,000

S + 1.31

%  

 

5.63

%  

07/14/25

07/14/25

4747 Bethesda Avenue (9)

20.0

%  

175,000

S + 1.35

%  

Cap

5.67

%  

02/20/27

02/20/27

Total Unconsolidated Principal Balance

 

235,000

 

  

 

  

 

  

 

  

Deferred financing costs and premium / (discount) - mortgage loans

 

(4,431)

 

  

 

  

 

  

 

  

Total Unconsolidated Indebtedness

$

230,569

Principal Balance at JBG SMITH Share

 

 

 

  

 

  

 

  

 

  

 

  

Consolidated principal balance at JBG SMITH Share

 

$

2,501,419

 

  

 

  

 

  

 

  

 

  

Unconsolidated principal balance at JBG SMITH Share

 

68,000

 

 

  

 

 

  

 

  

Total Consolidated and Unconsolidated Principal Balance at JBG SMITH Share

$

2,569,419

 

  

 

  

 

  

 

  

 

  

Indebtedness at JBG SMITH Share (net of premium / (discount) and deferred financing costs)

 

  

 

  

 

  

 

  

 

  

Consolidated indebtedness at JBG SMITH Share

 

$

2,479,101

 

 

  

 

  

 

  

 

  

Unconsolidated indebtedness at JBG SMITH Share

67,114

Total Consolidated and Unconsolidated Indebtedness at JBG SMITH Share

$

2,546,215


(1)For floating rate loans with interest rate caps, the weighted average interest rate cap strike for consolidated debt and debt at JBG SMITH Share was 3.15% and 3.25%, and the weighted average maturity date of the interest rate caps is in Q2 2026. The interest rate cap strike is exclusive of the credit spreads associated with the loans.
(2)June 30, 2025 one-month term SOFR of 4.32% applied to loans which are denoted as floating (no swap) or floating with a cap, except as otherwise noted.
(3)Represents the maturity date based on execution of all extension options. Many of these extensions are subject to lender covenant tests.
(4)The notional value of the 1215 S. Clark Street interest rate swap was $47.5 million as of June 30, 2025.
(5)The maximum principal balance of this loan is $208.5 million. Formerly known as 2000/2001 South Bell Street. The cap strike rate for this loan is 4.50%.
(6)June 30, 2025 daily SOFR of 4.45% applied to the revolving credit facility. In July 2025, we repaid $146.0 million under the revolving credit facility.
(7)The cap strike rate for this loan was 1.99%.
(8)The borrower and lender entered into a forbearance agreement through August 14, 2025.
(9)The cap strike rate for this loan is 4.38%.

Graphic

Page 38


DEFINITIONS

JUNE 30, 2025

Definitions

"Annualized Rent" is defined as (i) for multifamily assets, or the multifamily component of a mixed-use asset, the in-place monthly base rent before Free Rent as of June 30, 2025, multiplied by 12, and (ii) for commercial assets, or the retail component of a mixed-use asset, the in-place monthly base rent before Free Rent, plus tenant reimbursements as of June 30, 2025, multiplied by 12. Annualized Rent excludes rent from leases that have been signed but the tenant has not yet taken occupancy (not yet included in Percent Occupied metrics) and percentage rent.

"Annualized Rent per Square Foot" is defined as (i) for multifamily assets, in-place monthly base rent before Free Rent divided by occupied multifamily square feet; annualized retail rent and retail square feet are excluded from this metric and (ii) for commercial assets, annualized office rent divided by occupied office square feet and annualized retail rent divided by occupied retail square feet. Excludes percentage rent and the square footage of tenants that only pay percentage rent. Occupied square footage may differ from leased square footage because leased square footage includes leases that have been signed but the tenant has not yet taken occupancy (not yet included in Percent Occupied metrics).

"Development Pipeline" refers to assets that have the potential to commence construction subject to receipt of full entitlements, completion of design and/or market conditions where we (i) own land or control the land through a ground lease or (ii) are under a long-term conditional contract to purchase, or enter into, a leasehold interest with respect to land.

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 caps) and certain non-cash expenses (primarily depreciation and amortization expense on our assets). EBITDAre is computed in accordance with the definition established by Nareit. Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expense, gains (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 for 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 non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, litigation costs and income from investments. 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. A reconciliation of net income (loss) to EBITDA, EBITDAre and Adjusted EBITDA is presented on page 13.

"Estimated Incremental Investment" means management's estimate of the remaining cost to be incurred in connection with the development of an asset as of June 30, 2025, including all remaining acquisition costs, hard costs, soft costs, tenant improvements (excluding Free Rent converted to tenant improvement allowances), leasing costs and other similar costs to develop and stabilize the asset but excluding any financing costs and ground rent expenses. Actual incremental investment may differ substantially from our estimates due to numerous factors, including unanticipated expenses, delays in the estimated start and/or completion date, changes in design and other contingencies.

"Estimated Potential Development Density" reflects management's estimate of developable gross square feet based on our current business plans with respect to real estate owned or controlled as of June 30, 2025. Our current business plans may contemplate development of less than the maximum potential development density for individual assets. As market conditions change, our business plans, and therefore, the Estimated Potential Development Density, could change accordingly. Given timing, zoning requirements and other factors, we make no assurance that Estimated Potential Development Density amounts will become actual density to the extent we complete development of assets for which we have made such estimates.

Graphic

Page 39


DEFINITIONS

JUNE 30, 2025

"Estimated Total Investment" means, with respect to the development of an asset, the sum of the Historical Cost in such asset and the Estimated Incremental Investment for such asset. Actual total investment may differ substantially from our estimates due to numerous factors, including unanticipated expenses, delays in the estimated start and/or completion date, changes in design and other contingencies.

"First-generation" is a lease on space that had been vacant for at least nine months or a lease on newly delivered space.

"Free Rent" means the amount of base rent and tenant reimbursements that are abated according to the applicable lease agreement(s).

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 expense related to real estate, gains (losses) from the sale of certain real estate assets, gains (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 which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, litigation costs, income from investments, amortization of the management contracts intangible and the mark-to-market of derivative instruments, including our share of such adjustments for unconsolidated real estate ventures.

FAD represents Core FFO adjusted for recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption (payments) refunds, 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, including our share of such adjustments for unconsolidated real estate ventures. 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, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions, and other non-comparable income and expenses. 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. A reconciliation of net income (loss) to FFO, Core FFO and FAD is presented on pages 14-15.

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

"Historical Cost" is a non-GAAP measure which includes the total Historical Cost incurred by JBG SMITH with respect to the development of an asset, including any acquisition costs, hard costs, soft costs, tenant improvements (excluding Free Rent converted to tenant improvement allowances), leasing costs and other similar costs, but excluding any financing costs and ground rent expenses incurred as of June 30, 2025.

"In-Service" refers to multifamily or commercial operating assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of June 30, 2025.

"JBG SMITH Share" or "our share" refer to our ownership percentage of consolidated and unconsolidated assets in real estate ventures, but exclude our 10.0% subordinated interest in one commercial building and our 33.5% subordinated interest in four 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.

Graphic

Page 40


DEFINITIONS

JUNE 30, 2025

"Metro-Served" means locations, submarkets or assets that are within 0.5 miles of an existing or planned Metro station.

"Monthly Rent Per Unit" represents multifamily rent for the month ended June 30, 2025 divided by occupied units; retail rent is excluded from this metric.

"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"),"Same Store NOI", "Annualized NOI," "Estimated Stabilized NOI" and "Projected NOI Yield" are non-GAAP financial measures management uses to assess an asset'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, Same Store NOI, Annualized NOI, Estimated Stabilized NOI and Projected NOI Yield provide 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 for operating leases, if applicable. NOI excludes deferred (straight-line) rent, commercial lease termination revenue, 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, which includes our proportionate share of revenue and expenses attributable to real estate ventures, as a supplemental performance measure 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 expense 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 real estate investment trusts 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 consolidated 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 represents NOI for the three months ended June 30, 2025 multiplied by four. 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 Investor Package. There can be no assurance that the Annualized NOI shown will reflect our actual results of operations over any 12-month period.

This Investor Package also contains management's estimate of stabilized NOI and projections of NOI yield for Under-Construction assets, which are based on management's estimates of property-related revenue and operating expenses for each asset. These estimates are inherently uncertain and represent management's plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. The property-related revenues and operating expenses for our assets may differ materially from the estimates included in this Investor Package. Management's projections of NOI yield are not projections of our overall financial performance or cash flow, and there can be no assurance that the Projected NOI Yield set forth in this Investor Package will be achieved.

Projected NOI Yield means our Estimated Stabilized NOI reported as a percentage of (i) Estimated Total Investment and (ii) Estimated Incremental Investment. Actual initial full year stabilized NOI yield may vary from the Projected NOI Yield based on the actual incremental investment to complete the asset and its actual initial full year stabilized NOI, and there can be no assurance that we will achieve the Projected NOI Yields described in this Investor Package.

Graphic

Page 41


DEFINITIONS

JUNE 30, 2025

We do not provide reconciliations for non-GAAP estimates on a future basis, including Estimated Stabilized NOI and expected Annualized NOI because we are unable to provide a meaningful or accurate calculation or estimate of reconciling items and the information is not available without unreasonable effort. This inability is due to the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income (loss). Additionally, no reconciliation of Projected NOI Yield to the most directly comparable GAAP measure is included in this Investor Package because we are unable to quantify certain amounts that would be required to be included in the comparable GAAP financial measures without unreasonable efforts because such data is not currently available or cannot be currently estimated with confidence. Accordingly, we believe such reconciliations would imply a degree of precision that would be confusing or misleading to investors.

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

"Percent Leased" is based on leases signed as of June 30, 2025, and is calculated as total rentable square feet less rentable square feet available for lease divided by total rentable square feet expressed as a percentage. Out-of-service square feet are excluded from this calculation.

"Percent Occupied" is based on occupied rentable square feet/units as of June 30, 2025, and is calculated as (i) for multifamily space, total units less unoccupied units divided by total units, expressed as a percentage and (ii) for office and retail space, total rentable square feet less unoccupied square feet divided by total rentable square feet. Out-of-service square feet and units are excluded from this calculation.

"Pro Rata Adjusted General and Administrative Expenses," a non-GAAP financial measure, represents general and administrative expenses adjusted for the general and administrative expenses of our third-party asset management and real estate services business that are directly reimbursed. We believe that adjusting such items not considered part of our comparable operations provides a meaningful measure to assess our general and administrative expenses as compared to similar real estate companies and in general.

"Recently Delivered" refers to multifamily and commercial assets that are below 90% leased and have been delivered within the 12 months ended June 30, 2025.

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

"Second-generation" is a lease on space that had been vacant for less than nine months.

"Signed But Not Yet Commenced Leases" means leases that, as of June 30, 2025, have been executed but for which rent has not commenced.

"SOFR" means the Secured Overnight Financing Rate.

"Square Feet" or "SF" refers to the area that can be rented to tenants, defined as (i) for multifamily assets, management's estimate of approximate rentable square feet, (ii) for commercial assets, rentable square footage defined in the current lease and for vacant space the rentable square footage defined in the previous lease for that space, (iii) for Under-Construction assets, management's estimate of approximate rentable square feet based on current design plans as of June 30, 2025, and (iv) for assets in the Development Pipeline, management's estimate of developable gross square feet based on current business plans with respect to real estate owned or controlled as of June 30, 2025.

"Transaction and Other Costs" include costs related to completed, potential and pursued transactions, demolition costs, and severance and other costs.

"Under-Construction" refers to assets that were under construction during the three months ended June 30, 2025.

.

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Page 42


APPENDIX – INTEREST EXPENSE

JUNE 30, 2025
(Unaudited)

  

Appendix – Interest Expense

Three Months Ended June 30, 2025

in thousands

    

Consolidated

    

Unconsolidated Real Estate Ventures (1)

X

Total

Interest Expense

 

  

 

  

Interest expense before capitalized interest

$

34,285

$

876

$

35,161

Amortization of deferred financing costs

3,699

173

3,872

Net unrealized gain on non-designated derivatives (2)

(23)

(23)

Capitalized interest

(2,390)

(2,390)

Total

$

35,571

$

1,049

$

36,620

Six Months Ended June 30, 2025

in thousands

    

Consolidated

    

Unconsolidated Real Estate Ventures (1)

X

Total

Interest Expense

 

  

 

  

Interest expense before capitalized interest

$

67,773

$

1,704

$

69,477

Amortization of deferred financing costs

7,845

348

8,193

Net unrealized gain on non-designated derivatives (2)

(55)

(55)

Capitalized interest

(4,792)

(4,792)

Total

$

70,771

$

2,052

$

72,823


(1)At JBG SMITH Share.
(2)Non-designated derivatives refer to certain derivative financial instruments, consisting of interest rate cap agreements, that do not meet the accounting requirements to be classified as hedging instruments. These derivatives are carried at their estimated fair value with realized and unrealized gains (losses) recorded in "Interest expense" in our Condensed Consolidated Statements of Operations.

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APPENDIX – TRANSACTION AND OTHER COSTS

JUNE 30, 2025
(Unaudited)

Appendix – Transaction and Other Costs

Three Months Ended June 30, 

Six Months Ended June 30, 

in thousands

    

2025

    

2024

X

2025

    

2024

Transaction and Other Costs

 

  

 

  

  

  

Completed, potential and pursued transaction expenses

$

1,888

$

34

$

2,562

$

1,541

Severance and other costs

 

705

 

505

 

1,779

 

512

Demolition costs

253

285

416

285

Total

$

2,846

$

824

$

4,757

$

2,338

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APPENDIX – NOI RECONCILIATIONS (NON-GAAP)

JUNE 30, 2025
(Unaudited)

Appendix - NOI Reconciliations

 

dollars in thousands

Three Months Ended June 30, 

Six Months Ended June 30, 

 

    

2025

    

2024

2025

    

2024

Net loss attributable to common shareholders

$

(19,241)

$

(24,373)

$

(64,961)

$

(56,649)

Net loss attributable to redeemable noncontrolling interests

(3,940)

(3,454)

(11,918)

(7,988)

Net loss attributable to noncontrolling interests

(5,587)

(10,967)

Net loss

(23,181)

(33,414)

(76,879)

(75,604)

Add:

  

  

  

  

Depreciation and amortization expense

47,560

51,306

95,147

108,161

General and administrative expense:

  

  

  

  

Corporate and other

16,720

17,001

32,277

31,974

Third-party real estate services

13,562

18,650

29,633

40,977

Transaction and Other Costs

2,846

824

4,757

2,338

Interest expense

35,571

31,973

70,771

62,133

(Gain) loss on the extinguishment of debt, net

(2,234)

2,402

Impairment loss

31,813

1,025

40,296

18,236

Income tax expense (benefit)

(83)

597

(283)

(871)

Less:

  

  

  

  

Third-party real estate services, including reimbursements revenue

14,805

17,397

29,719

35,265

Income (loss) from unconsolidated real estate ventures, net

1,091

(226)

499

749

Interest and other income, net

698

3,432

1,223

5,532

Gain on the sale of real estate, net

41,832

89

42,369

286

Adjustments:

NOI attributable to unconsolidated real estate ventures at our share

1,287

1,168

2,277

4,215

Real estate venture partner’s share of NOI attributable to consolidated real estate ventures

(272)

(272)

Non-cash rent adjustments (1)

71

(2,509)

2,510

(3,939)

Other adjustments (2)

399

3,324

2,092

(2,705)

Total adjustments

1,485

1,983

6,607

(2,429)

NOI

$

65,633

$

69,253

$

130,918

$

143,083

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

(1,469)

(2,341)

(3,696)

(5,374)

Operating Portfolio NOI

$

67,102

$

71,594

$

134,614

$

148,457

Non-Same Store NOI (4)

7,575

10,254

15,399

23,515

Same Store NOI (5)

$

59,527

$

61,340

$

119,215

$

124,942

Change in Same Store NOI

(3.0)

%

(4.6)

%

Number of properties in Same Store pool

34

34


(1)Adjustment to exclude deferred (straight-line) rent, above/below market lease amortization and lease incentive amortization.
(2)Adjustment to exclude commercial lease termination revenue, related party management fees and corporate entity activity.
(3)Includes the results of our Under-Construction assets and assets in the Development Pipeline.
(4)Includes the results of properties that were not In-Service for the entirety of both periods being compared, including disposed properties, 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.

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