Core Viewpoint - JBG SMITH is set to report its third quarter 2025 financial results on October 28, 2025, with the investor package available on its website [1]. Company Overview - JBG SMITH specializes in owning, operating, and developing mixed-use properties in the Washington, DC area, particularly in the National Landing submarket, which is expected to have long-term growth potential [2]. - Approximately 75% of JBG SMITH's properties are located in the National Landing submarket, driven by key factors such as Amazon's headquarters, Virginia Tech's $1 billion Innovation Campus, proximity to the Pentagon, and various placemaking initiatives [2]. - The company's portfolio includes 12 million square feet of multifamily, office, and retail assets, with 98% being Metro-served [2]. - JBG SMITH has a development pipeline of 8.7 million square feet focused on mixed-use, primarily multifamily projects [2]. - The company is committed to developing green, smart, and healthy buildings, aiming for carbon-neutral operations annually [2].

Core Viewpoint - JBG SMITH Properties (NYSE: JBGS) has achieved a total return of 57% since the last analysis published on February 24, 2024, indicating strong performance and potential for further growth [1]. Group 1 - The total return of JBG SMITH Properties is significantly higher than the S&P index, suggesting a favorable investment environment for the company [1].

Core Viewpoint - Evercore ISI has reduced the price target for JBG Smith (JBGS) from $20 to $19, maintaining an Underperform rating on the shares, following adjustments made after a recent REIT conference [1] Summary by Category Price Target Adjustment - The price target for JBG Smith (JBGS) has been lowered to $19 from $20 [1] Rating - Evercore ISI continues to hold an Underperform rating on JBG Smith (JBGS) shares [1] Market Insights - The adjustments in the model were influenced by insights gained from company meetings and broader market conditions discussed at the recent REIT conference [1]

PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements and notes for periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's financial position (assets, liabilities, equity) as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (vs. Dec 31, 2024) | | :----------------------------- | :----------------------------- | :----------------------------- | :------------------------- | | Total Assets | $4,549,295 | $5,020,540 | -$471,245 (-9.4%) | | Total Liabilities | $2,683,299 | $2,787,850 | -$104,551 (-3.7%) | | Total Equity | $1,322,793 | $1,809,058 | -$486,265 (-26.9%) | | Real estate, net | $3,775,688 | $4,111,459 | -$335,771 (-8.2%) | | Cash and cash equivalents | $61,432 | $145,804 | -$84,372 (-57.9%) | | Mortgage loans, net | $1,540,670 | $1,767,173 | -$226,503 (-12.8%) | | Revolving credit facility | $226,000 | $85,000 | +$141,000 (+165.9%) | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Presents revenues, expenses, and net loss for the three and six months ended June 30, 2025, and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Total revenue | $126,479 | $135,320 | -6.5% | $247,165 | $280,504 | -11.9% | | Total expenses | $128,214 | $138,434 | -7.4% | $254,949 | $283,177 | -9.9% | | Net loss | $(23,181) | $(33,414) | +30.6% | $(76,879) | $(75,604) | -1.7% | | Net loss attributable to common shareholders | $(19,241) | $(24,373) | +21.1% | $(64,961) | $(56,649) | -14.7% | | Loss per common share - Basic and Diluted | $(0.29) | $(0.27) | -7.4% | $(0.87) | $(0.63) | -38.1% | | Gain on the sale of real estate, net | $41,832 | $89 | * | $42,369 | $286 | * | | Impairment loss | $(31,813) | $(1,025) | * | $(40,296) | $(18,236) | +121.0% | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Presents net loss and comprehensive loss for the three and six months ended June 30, 2025, and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Net loss | $(23,181) | $(33,414) | +30.6% | $(76,879) | $(75,604) | -1.7% | | Total other comprehensive income (loss) | $(8,115) | $(2,451) | -231.1% | $(18,942) | $11,968 | * | | Comprehensive loss attributable to JBG SMITH Properties | $(25,794) | $(26,895) | +4.1% | $(80,457) | $(47,861) | -68.1% | [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Outlines changes in total equity, including share repurchases and dividends, for the periods presented | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------- | :------------ | :---------------- | :------------------------ | | Total equity | $1,322,793 | $1,809,058 | -$486,265 (-26.9%) | | Common shares repurchased (6 months) | $(372,848) | $(118,158) (FY2024) | -215.5% | | Dividends declared on common shares (6 months) | $(12,434) | $(32,171) (FY2024) | +61.3% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :--------------------------- | :--------------------------- | :----------- | | Net cash provided by operating activities | $31,752 | $60,813 | -47.8% | | Net cash provided by investing activities | $270,724 | $61,992 | +336.7% | | Net cash used in financing activities | $(394,706) | $(117,344) | -236.4% | | Net increase (decrease) in cash and cash equivalents, and restricted cash | $(92,230) | $5,461 | * | | Cash and cash equivalents, and restricted cash, end of period | $90,962 | $205,902 | -55.8% | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Organization and Basis of Presentation](index=13&type=section&id=1.%20Organization%20and%20Basis%20of%20Presentation) This note describes the company's structure as a REIT and its primary business operations in the Washington, D.C. metropolitan area - JBG SMITH is a Maryland real estate investment trust (REIT) focused on owning, operating, and developing mixed-use properties in the Washington, D.C. metropolitan area, with approximately **75.0% of its holdings in the National Landing submarket**[23](index=23&type=chunk) - The company conducts substantially all its operations through JBG SMITH Properties LP, where it holds an **81.5% ownership interest** as of June 30, 2025[24](index=24&type=chunk) - As of June 30, 2025, the Operating Portfolio consisted of **38 operating assets** (15 multifamily, 21 commercial, 2 land assets) and **20 development assets** (1 under-construction multifamily, 19 in development pipeline)[25](index=25&type=chunk) [2. Summary of Significant Accounting Policies](index=15&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and policies applied in preparing the financial statements, including recent accounting pronouncements - There were no material changes to the significant accounting policies disclosed in the Annual Report[32](index=32&type=chunk) - The company is evaluating the potential impact of ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures," effective for annual periods beginning after December 15, 2026[34](index=34&type=chunk) - The company is evaluating the potential impact of ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," effective for annual periods beginning after December 1

[LETTER TO SHAREHOLDERS](index=3&type=section&id=SECTION%20ONE) JBG SMITH's Q2 2025 letter details a strategic pivot to office investments and share repurchases, funded by multifamily asset sales, aiming for long-term NAV per share growth [Shareholder Letter](index=3&type=section&id=LETTER%20TO%20SHAREHOLDERS) JBG SMITH commits to long-term NAV per share growth, strategically repositioning its portfolio from multifamily to office investments due to evolving DC real estate market conditions - Persistent macroeconomic and political uncertainties, with adverse impacts from federal spending cuts and headcount reductions, are shaping the DC real estate market[3](index=3&type=chunk) - The company is executing a deliberate pivot to reallocate capital from multifamily assets towards office investments, including opportunistic acquisitions and share repurchases[3](index=3&type=chunk) - This shift reflects the conviction that office now offers a more compelling risk-adjusted return profile due to **historically low office values**, while multifamily assets still command attractive pricing[3](index=3&type=chunk) [Capital Allocation](index=4&type=section&id=Capital%20Allocation) The company's capital allocation strategy focuses on maximizing long-term NAV per share growth by rotating across asset classes, monetizing multifamily assets to fund share repurchases and opportunistic office investments - Core objective is maximizing **long-term NAV per share growth** through disciplined capital allocation and asset rotation[9](index=9&type=chunk) - Monetizing liquid multifamily assets (e.g., WestEnd25, West Half interest, Capitol Point North, The Batley) at or above NAV provides efficient capital for share repurchases and opportunistic investments[10](index=10&type=chunk) - Repurchased **23.6 million shares for $376.9 million** year-to-date at an average price of **$15.98 per share**, totaling **$1.5 billion (80.4 million shares)** since 2020[11](index=11&type=chunk) - Acquired Tysons Dulles Plaza, a **491,500-square-foot office campus**, for **$42.3 million**, representing over a **20.0% in-place NOI capitalization rate**, with redevelopment potential[12](index=12&type=chunk) [Financial and Operating Metrics](index=5&type=section&id=Financial%20and%20Operating%20Metrics) For Q2 2025, JBG SMITH reported Core FFO of $12.7 million ($0.19 per diluted share) and a 3.0% decrease in portfolio Same Store NOI, operating at elevated leverage of 11.8x Net Debt to Annualized Adjusted EBITDA - Core FFO attributable to common shares for Q2 2025 was **$12.7 million**, or **$0.19 per diluted share**[14](index=14&type=chunk) - Annualized NOI totaled **$251.0 million** (excluding sold, recapitalized, and acquired assets), up **0.1%** quarter over quarter[14](index=14&type=chunk) - Portfolio Same Store NOI decreased **3.0%** for the three months ended June 30, 2025[14](index=14&type=chunk) - Net Debt to Annualized Adjusted EBITDA was **11.8x** as of June 30, 2025, indicating elevated leverage levels[15](index=15&type=chunk) - **84.4% of debt was fixed or hedged** as of the end of Q2 2025, with no other debt maturities until December 2026[16](index=16&type=chunk) [Operating Portfolio](index=5&type=section&id=Operating%20Portfolio) The operating portfolio showed mixed performance in Q2 2025, with slight declines in multifamily leased/occupied rates but positive rent growth, while office saw decreased rates and negative mark-to-market, offset by National Landing leasing activity - In-Service multifamily portfolio ended Q2 2025 at **94.8% leased** (down **0.9% QoQ**) and **92.9% occupied** (down **1.4% QoQ**)[17](index=17&type=chunk) - Same Store multifamily portfolio increased effective rents by **1.0%** for new leases and **8.9%** upon renewal, with a **49.0% renewal rate**[17](index=17&type=chunk) - Office portfolio ended Q2 2025 at **76.5% leased** (down **1.8% QoQ**) and **74.8% occupied** (down **1.6% QoQ**)[22](index=22&type=chunk) - Executed **208,000 square feet of office leases** with a weighted average lease term of **5.8 years**; second-generation leases had a **negative 6.1% rental rate mark-to-market**[6](index=6&type=chunk)[22](index=22&type=chunk) [Multifamily Trends](index=5&type=section&id=Multifamily%20Trends) The In-Service multifamily portfolio experienced slight declines in leased and occupied rates but maintained positive rent growth, with new assets like The Zoe showing strong initial demand - In-Service multifamily portfolio ended Q2 2025 at **94.8% leased** (down **0.9% QoQ**) and **92.9% occupied** (down **1.4% QoQ**)[17](index=17&type=chunk) Q2 2025 Change | Metric | Q2 2025 Change | | :--------------------- | :------------- | | New Leases Effective Rents | +1.0% | | Renewal Leases Effective Rents | +8.9% | | Renewal Rate | 49.0% | - The Zoe is **40.0% leased**, and The Grace and Reva are **83.5% leased** as of this week[6](index=6&type=chunk)[18](index=18&type=chunk) - A **30.0% increase** in Amazon employees living in the National Landing multifamily portfolio since January 2nd[18](index=18&type=chunk) [DC Metro Multifamily Trends](index=5&type=section&id=DC%20Metro%20Multifamily%20Trends) The DC metro multifamily market showed resilience in H1 2025 with 1.5% year-over-year rent growth, healthy occupancy, and constrained new supply, indicating robust future growth - Year-over-year rent growth in the DC metro multifamily market was **1.5%**, significantly above the US average of **-0.7%**[19](index=19&type=chunk) - Median absolute rents remain high with healthy occupancy levels just below **93.9%**[19](index=19&type=chunk) - New supply pipeline remains constrained with only **1.4% of total inventory** under construction, creating a robust environment for growth[21](index=21&type=chunk) [Office Trends](index=6&type=section&id=Office%20Trends) The office portfolio saw declines in leased/occupied rates and negative mark-to-market on second-generation leases, but National Landing leasing activity increased, driven by defense and technology tenants - Office portfolio ended Q2 2025 at **76.5% leased** (down **1.8% QoQ**) and **74.8% occupied** (down **1.6% QoQ**)[22](index=22&type=chunk) - Executed **208,000 square feet of leases** with a weighted average lease term of **5.8 years**; second-generation leases had a **negative 6.1% rental rate mark-to-market**[6](index=6&type=chunk)[22](index=22&type=chunk) - Leasing in National Landing is primarily driven by SCIF/secure facility users, technology-related tenants, and defense-related tenants, comprising approximately **93% of Q2 leasing activity**[23](index=23&type=chunk) - Over **1.0 million square feet of obsolete office space** has been taken out of service in National Landing for redevelopment or conversion[24](index=24&type=chunk) [Northern Virginia Office Trends](index=6&type=section&id=Northern%20Virginia%20Office%20Trends) Northern Virginia, especially National Landing, is expected to benefit from a $1.0 trillion defense budget, driving demand despite a sluggish first half, with long-term vacancy abatement anticipated from residential conversions - Historic **$1.0 trillion defense budget** expected to disproportionately benefit Northern Virginia, driving demand to National Landing[25](index=25&type=chunk) - Sluggish first half with net absorption essentially flat year-to-date, reflecting tenant caution[26](index=26&type=chunk) - A backlog of **4.3 million square feet** of active but not-yet-signed requirements and **12.4 million square feet** of office space slated for residential conversion suggest future vacancy abatement[26](index=26&type=chunk) - Market health is expected to return over a period of years, not quarters, given the **23.0% direct vacancy rate**[26](index=26&type=chunk) [Strategic Outlook](index=7&type=section&id=Strategic%20Outlook) JBG SMITH remains focused on long-term value creation through National Landing's transformation and portfolio enhancement, leveraging generational low office valuations and discounted shares for high-conviction investments - Strategy remains clear: focus on **long-term value creation**, not short-term noise[27](index=27&type=chunk) - Committed to enhancing the stability and enduring strength of both office and multifamily portfolios, with National Landing transformation as a testament to execution[27](index=27&type=chunk) - Office valuations at **generational lows** and shares trading at a **meaningful discount to NAV** present a rare window to deploy capital into high-conviction opportunities for substantial NAV per share growth[27](index=27&type=chunk) [Q2 2025 EARNINGS RELEASE](index=8&type=section&id=SECTION%20TWO) JBG SMITH reported a net loss of $19.2 million for Q2 2025, with Core FFO of $12.7 million ($0.19 per diluted share), continuing strategic capital allocation through asset dispositions, share repurchases, and an office acquisition, amidst mixed operating performance [Q2 2025 Earnings Release Highlights](index=9&type=section&id=Q2%202025%20EARNINGS%20RELEASE%20HIGHLIGHTS) JBG SMITH reported a net loss of $19.2 million and Core FFO of $12.7 million for Q2 2025, with Annualized NOI at $268.4 million and Same Store NOI decreasing by 3.0%, alongside significant asset sales, an office acquisition, and share repurchases Q2 2025 Financial Performance (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :------------------------------------ | :------------------------------- | :------------------------------ | | Net loss attributable to common shareholders | $(19,241) | $(65,000) | | Net loss per diluted share | $(0.29) | $(0.87) | | FFO | $10,000 | $3,700 | | FFO per diluted share | $0.15 | $0.05 | | Core FFO | $12,700 | $19,900 | | Core FFO per diluted share | $0.19 | $0.27 | Annualized Net Operating Income (Annualized NOI) (in millions) | Period | Annualized NOI (at share) | | :------------------------------------ | :------------------------ | | Three Months Ended June 30, 2025 | $268.4 million | | Three Months Ended March 31, 2025 | $270.1 million | | Annualized NOI (excluding sold/recapitalized/acquired assets) | $251.0 million (Q2 2025) vs $250.8 million (Q1 2025) | - Same Store NOI (SSNOI) decreased **3.0%** quarter-over-quarter to **$59.5 million** for Q2 2025, primarily due to lower occupancy and higher operating expenses in multifamily, and lower occupancy/recovery revenue in commercial[42](index=42&type=chunk) [Operating Portfolio (Earnings Release)](index=10&type=section&id=Operating%20Portfolio%20(Earnings%20Release)) The operating portfolio experienced declines in occupancy across both multifamily and commercial segments in Q2 2025, with Same Store NOI decreasing by 3.0%, despite positive rent increases for multifamily and significant office leasing activity - Same Store NOI (SSNOI) at JBG SMITH's share decreased **3.0%** quarter-over-quarter to **$59.5 million** for Q2 2025[42](index=42&type=chunk) Multifamily Occupancy Rates | Metric | June 30, 2025 | March 31, 2025 | | :-------------------------- | :------------ | :------------- | | Operating Multifamily Leased | 89.0% | 93.0% | | Operating Multifamily Occupied | 85.8% | 91.3% | | In-Service Multifamily Leased | 94.8% | 95.7% | | In-Service Multifamily Occupied | 92.9% | 94.3% | - In the Same Store multifamily portfolio, effective rents increased by **1.0%** for new leases and **8.9%** upon renewal, with a **49.0% renewal rate**[42](index=42&type=chunk) - The operating commercial portfolio was **76.5% leased** and **74.8% occupied** as of June 30, 2025 (down from **78.3%** and **76.4%** respectively in Q1 2025)[42](index=42&type=chunk) - Executed approximately **208,000 square feet of office leases** (**87,000 sq ft new leases**) in Q2 2025, with second-generation leases showing a **6.1% cash rental rate decrease** and a **4.8% GAAP rental rate decrease**[42](index=42&type=chunk) [Development Portfolio](index=10&type=section&id=Development%20Portfolio) As of June 30, 2025, JBG SMITH has one multifamily asset, Valen (355 units), under construction and a substantial development pipeline of 19 assets with 8.7 million square feet of estimated potential density - One multifamily asset, Valen (formerly 2000 South Bell Street), consisting of **355 units**, was under construction as of June 30, 2025[38](index=38&type=chunk) - The development pipeline includes **19 assets** with **8.7 million square feet** of estimated potential development density[39](index=39&type=chunk) [Third-Party Asset Management and Real Estate Services Business (Earnings Release)](index=10&type=section&id=Third-Party%20Asset%20Management%20and%20Real%20Estate%20Services%20Business%20(Earnings%20Release)) For Q2 2025, revenue from third-party real estate services, including reimbursements, totaled $14.8 million, with the core business generating $6.9 million primarily from property/asset management and leasing fees - Revenue from third-party real estate services, including reimbursements, was **$14.8 million** for Q2 2025[40](index=40&type=chunk) - Excluding reimbursements and service revenue from real estate ventures, revenue from the third-party asset management and real estate services business was **$6.9 million**[40](index=40&type=chunk) - This **$6.9 million** was 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**[40](index=40&type=chunk) [Balance Sheet (Earnings Release)](index=11&type=section&id=Balance%20Sheet%20(Earnings%20Release)) As of June 30, 2025, JBG SMITH's total enterprise value was approximately $3.8 billion, with Net Debt to Annualized Adjusted EBITDA at 11.8x, supported by $61.4 million in cash and $524.0 million in undrawn credit capacity, alongside significant asset dispositions and share repurchases - Total enterprise value was approximately **$3.8 billion** as of June 30, 2025[46](index=46&type=chunk) - Net Debt to annualized Adjusted EBITDA was **11.8x** as of June 30, 2025[46](index=46&type=chunk) - As of June 30, 2025, the company had **$61.4 million of cash and cash equivalents** and **$524.0 million of undrawn capacity** under its revolving credit facility[46](index=46&type=chunk) - Acquired Tysons Dulles Plaza for **$42.3 million** in May 2025[46](index=46&type=chunk) - Sold a **40.0% interest in West Half for $100.0 million**, Capitol Point – North for **$11.0 million**, and WestEnd25 for **$186.0 million** in Q2 2025. Subsequent to quarter end, sold The Batley for **$155.0 million**[46](index=46&type=chunk) - Repurchased and retired **11.2 million common shares for $184.9 million** during Q2 2025[46](index=46&type=chunk) [Dividends](index=11&type=section&id=Dividends) On July 24, 2025, JBG SMITH's 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 - Quarterly dividend of **$0.175 per common share** declared on July 24, 2025[44](index=44&type=chunk) - Payable on August 21, 2025, to shareholders of record as of August 7, 2025[44](index=44&type=chunk) [About JBG SMITH](index=11&type=section&id=About%20JBG%20SMITH) JBG SMITH is a leading owner, operator, and developer of mixed-use properties in the Washington, DC market, with approximately 75.0% of its holdings in the National Landing submarket, anchored by Amazon and Virginia Tech - 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[45](index=45&type=chunk) - Approximately **75.0% of JBG SMITH's holdings** are in the National Landing submarket, anchored by Amazon's headquarters, Virginia Tech's **$1 billion Innovation Campus**, proximity to the Pentagon, and placemaking initiatives[45](index=45&type=chunk) - Dynamic portfolio currently comprises **12.0 million square feet** at share of multifamily, office, and retail assets, **98% of which are Metro-served**[45](index=45&type=chunk)[47](index=47&type=chunk) - Maintains a development pipeline encompassing **8.7 million square feet** of mixed-use, primarily multifamily, development opportunities[47](index=47&type=chunk) - Committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually[47](index=47&type=chunk) [Forward-Looking Statements](index=12&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements are not guarantees of performance, with future results potentially differing materially due to numerous assumptions, risks, and uncertainties, including economic conditions and federal spending - Forward-looking statements are not guarantees of performance and represent intentions, plans, expectations, and beliefs subject to numerous assumptions, risks, and uncertainties[48](index=48&type=chunk) - Factors that could materially affect outcomes include adverse economic conditions in the Washington, DC metropolitan area (e.g., federal government spending/headcount reductions), development timing/costs, supply chain disruptions, financing commitments, and competitive factors[49](index=49&type=chunk) - The company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995[49](index=49&type=chunk) [Pro Rata Information](index=12&type=section&id=Pro%20Rata%20Information) The company presents certain financial information 'at JBG SMITH Share' as a non-GAAP measure to reflect economic interests in real estate ventures, providing valuable insight but not substituting GAAP consolidated financial statements due to control limitations and co-venturer risks - Financial information is presented 'at JBG SMITH Share,' referring to the company's ownership percentage of consolidated and unconsolidated assets in real estate ventures[50](index=50&type=chunk) - This 'at JBG SMITH Share' information is a non-GAAP presentation, believed to provide valuable information regarding economic interests in partially owned entities[51](index=51&type=chunk) - Limitations include lack of control over unconsolidated ventures, no legal claim to co-venturers' shares, and exposure to economic risks or equity capital calls[52](index=52&type=chunk)[53](index=53&type=chunk) - Occupancy, non-GAAP financial measures, leverage metrics, and operating assets/metrics exclude certain subordinated interests where investment is zero and no near-term cash flow is anticipated[54](index=54&type=chunk) [Non-GAAP Financial Measures](index=13&type=section&id=Non-GAAP%20Financial%20Measures) This section defines various non-GAAP financial measures, including EBITDA, FFO, FAD, Net Debt, and NOI, used by management to assess operating performance, financial condition, and dividend funding ability, serving as supplemental information to GAAP - EBITDA, EBITDAre, and Adjusted EBITDA are non-GAAP measures used to evaluate operating performance by removing capital structure impact and non-cash expenses, with EBITDAre computed per Nareit definition[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - FFO, Core FFO, and FAD are non-GAAP measures useful for comparing levered operating performance and assessing dividend funding ability, with FFO computed per Nareit definition[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk) - Net Debt represents total consolidated and unconsolidated indebtedness less cash and cash equivalents at JBG SMITH's share, used to manage financial flexibility and leverage[64](index=64&type=chunk) - NOI, Same Store NOI, and Annualized NOI are non-GAAP measures used to assess asset performance, reflecting property-related revenue less operating expenses, excluding non-cash items[65](index=65&type=chunk)[66](index=66&type=chunk) - These non-GAAP measures are supplemental and should not be considered in isolation or as substitutes for GAAP net income (loss) or cash flow[58](index=58&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) [Definitions](index=16&type=section&id=Definitions) This section defines key terms like 'Development Pipeline,' 'Estimated Potential Development Density,' 'First-generation' and 'Second-generation' leases, 'In-Service,' 'Same Store,' and 'Under-Construction' to ensure consistent understanding of the financial report - Development Pipeline refers to assets with potential for construction, subject to entitlements, design, and market conditions[67](index=67&type=chunk) - Estimated Potential Development Density reflects management's estimate of developable gross square feet based on current business plans[68](index=68&type=chunk) - First-generation is a lease on space vacant for at least nine months or newly delivered space; Second-generation is a lease on space vacant for less than nine months[69](index=69&type=chunk)[73](index=73&type=chunk) - 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[71](index=71&type=chunk) - Same Store refers to assets that were In-Service for the entirety of both periods being compared, excluding significant redevelopment or renovation[72](index=72&type=chunk) - Transaction and Other Costs include costs related to completed, potential, and pursued transactions, demolition costs, and severance[75](index=75&type=chunk) - Under-Construction refers to assets that were under construction during the three months ended June 30, 2025[76](index=76&type=chunk) [Condensed Consolidated Balance Sheets](index=18&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) JBG SMITH's consolidated balance sheet as of June 30, 2025, shows total assets of $4.55 billion, a decrease from $5.02 billion at December 31, 2024, primarily due to reductions in real estate, cash, liabilities, and total equity Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total Assets | $4,549,295 | $5,020,540 | | Real estate, net | $3,775,688 | $4,111,459 | | Cash and cash equivalents | $61,432 | $145,804 | | Total Liabilities | $2,683,299 | $2,787,850 | | Mortgage loans, net | $1,540,670 | $1,767,173 | | Revolving credit facility | $226,000 | $85,000 | | Total Equity | $1,322,793 | $1,809,058 | [Condensed Consolidated Statements of Operations](index=19&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, JBG SMITH reported a net loss of $19.2 million, an improvement from Q2 2024, despite decreased total revenue, as a significant gain on real estate sales partially offset increased impairment losses and interest expense Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Total revenue | $126,479 | $135,320 | | Property rental | $106,509 | $112,536 | | Third-party real estate services, including reimbursements | $14,805 | $17,397 | | Total expenses | $128,214 | $138,434 | | Interest expense | $(35,571) | $(31,973) | | Gain on the sale of real estate, net | $41,832 | $89 | | Impairment loss | $(31,813) | $(1,025) | | Net loss attributable to common shareholders | $(19,241) | $(24,373) | | Loss per common share - diluted | $(0.29) | $(0.27) | [EBITDA, EBITDAre AND ADJUSTED EBITDA RECONCILIATIONS (NON-GAAP)](index=20&type=section&id=EBITDA%2C%20EBITDAre%20AND%20ADJUSTED%20EBITDA%20RECONCILIATIONS%20(NON-GAAP)) For Q2 2025, JBG SMITH reported EBITDA of $61.4 million, EBITDAre of $49.9 million, and Adjusted EBITDA of $52.7 million, with Net Debt to Annualized Adjusted EBITDA at 11.8x as of June 30, 2025 EBITDA, EBITDAre and Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | EBITDA | $61,432 | $52,292 | | EBITDAre | $49,913 | $52,203 | | Adjusted EBITDA | $52,710 | $52,980 | - Net Debt to Annualized Adjusted EBITDA was **11.8x** as of June 30, 2025, compared to **11.9x** in Q2 2024[84](index=84&type=chunk) - Net Debt (at JBG SMITH Share) was **$2,480,609 thousand** as of June 30, 2025, compared to **$2,522,604 thousand** in Q2 2024[84](index=84&type=chunk) [FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP)](index=21&type=section&id=FFO%2C%20CORE%20FFO%20AND%20FAD%20RECONCILIATIONS%20(NON-GAAP)) For Q2 2025, FFO attributable to common shareholders was $9.95 million ($0.15 per diluted share), Core FFO was $12.71 million ($0.19 per diluted share), and FAD available to OP Units was $18.21 million, with an 84.2% FAD Payout Ratio FFO, Core FFO and FAD (in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | FFO Attributable to Common Shareholders | $9,953 | $14,335 | | FFO per common share - diluted | $0.15 | $0.16 | | Core FFO Attributable to Common Shareholders | $12,714 | $16,058 | | Core FFO per common share - diluted | $0.19 | $0.18 | | FAD available to OP Units | $18,208 | $19,728 | | FAD Payout Ratio | 84.2% | 96.4% | - Weighted average shares - diluted (FFO and Core FFO) were **68,451 thousand** for Q2 2025, down from **91,154 thousand** in Q2 2024, reflecting share repurchases[89](index=89&type=chunk) [NOI RECONCILIATIONS (NON-GAAP)](index=23&type=section&id=NOI%20RECONCILIATIONS%20(NON-GAAP)) For Q2 2025, JBG SMITH's total NOI was $65.6 million, with Operating Portfolio NOI at $67.1 million and Same Store NOI at $59.5 million, representing a 3.0% decrease in Same Store NOI compared to Q2 2024 NOI Metrics (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | NOI | $65,633 | $69,253 | | Operating Portfolio NOI | $67,102 | $71,594 | | Same Store NOI | $59,527 | $61,340 | | Change in Same Store NOI | (3.0)% | N/A | - Key adjustments from net loss to NOI include adding back depreciation and amortization, general and administrative expenses, interest expense, and impairment loss, while subtracting third-party real estate services revenue and gain on sale of real estate[96](index=96&type=chunk) [Q2 2025 SUPPLEMENTAL INFORMATION](index=25&type=section&id=SECTION%20THREE) This section provides detailed supplemental information for Q2 2025, covering company overview, comprehensive financial data, leasing activity, property portfolio specifics, and debt structure, offering a granular view of JBG SMITH's operations and financial health [Overview](index=25&type=section&id=Overview) The overview provides foundational information about JBG SMITH, including disclosures, company profile, financial snapshot, and a high-level portfolio summary, emphasizing its focus on mixed-use properties in the Washington, DC market, particularly National Landing - JBG SMITH owns, operates, and develops mixed-use properties in amenity-rich, Metro-served submarkets in and around Washington, DC, with approximately **75.0% of its holdings in National Landing**[105](index=105&type=chunk) - National Landing is anchored by Amazon's headquarters, Virginia Tech's **$1 billion Innovation Campus**, proximity to the Pentagon, and placemaking initiatives[105](index=105&type=chunk) Company Snapshot as of June 30, 2025 | Metric | Value | | :------------------------------------ | :---------- | | Indicated annual dividend per share | $0.70 | | Dividend yield | 4.0 % | | Common share price | $17.30 | | Total market capitalization | $1.32 billion | | Total consolidated and unconsolidated indebtedness (at JBG SMITH Share) | $2.55 billion | | Net Debt | $2.48 billion | | Total Enterprise Value | $3.80 billion | | Net Debt / Total Enterprise Value | 65.3 % | Operating Portfolio Overview (at JBG SMITH Share) | Asset Type | Units / Square Feet | % Leased | % Occupied (1) | Annualized NOI (2) (in thousands) | | :-------------------- | :------------------ | :--------- | :---------- | :------------- | | Multifamily | 6,596 Units | 89.0% | 85.8% | $123,876 | | Commercial | 6,962,917 SF | 76.5% | 74.8% | $139,984 | | Ground Leases | — | — | — | $4,548 | | **Operating - Total** | **6,596 Units/ 6,962,917 SF** | **81.8%** | **79.5%** | **$268,408** | - Development portfolio includes one multifamily asset under construction (**355 units**) and **19 assets** in the development pipeline (**8.7 million SF** estimated potential density)[121](index=121&type=chunk) [Disclosures](index=26&type=section&id=Disclosures) This sub-section reiterates the forward-looking statements disclaimer and clarifies the basis of presentation for unaudited non-GAAP 'Pro Rata Information' (at JBG SMITH Share), highlighting its supplemental nature and associated limitations - Forward-looking statements are not guarantees of performance and are subject to numerous assumptions, risks, and uncertainties, with future results potentially differing materially[102](index=102&type=chunk)[103](index=103&type=chunk) - The Investor Package contains unaudited information and non-GAAP measures; 'at JBG SMITH Share' is a non-GAAP presentation reflecting economic interests in real estate ventures[106](index=106&type=chunk)[107](index=107&type=chunk) - The non-GAAP 'at JBG SMITH Share' information should not be considered in isolation or as a substitute for consolidated GAAP financial statements due to limitations in control and potential economic risks with co-venturers[109](index=109&type=chunk) - Occupancy, non-GAAP financial measures, leverage metrics, and operating assets/metrics exclude certain subordinated interests in commercial buildings where investment is zero and no near-term cash flow is anticipated[110](index=110&type=chunk) [Company Profile](index=29&type=section&id=Company%20Profile) JBG SMITH is a Maryland REIT focused on mixed-use properties in the Washington, DC metro area, particularly National Landing, with its executive leadership and a financial snapshot as of June 30, 2025, detailing market capitalization, debt, and enterprise value - Executive Officers include W. Matthew Kelly (CEO), M. Moina Banerjee (CFO), George L. Xanders (CIO), Steven A. Museles (CLO), and Evan Regan-Levine (CSO)[115](index=115&type=chunk) Company Snapshot as of June 30, 2025 | Metric | Value | | :------------------------------------ | :---------- | | Exchange/ticker | NYSE: JBGS | | Indicated annual dividend per share | $0.70 | | Dividend yield | 4.0 % | | Common share price | $17.30 | | Common shares and common limited partnership units ("OP Units") outstanding | 76.02 million | | Total consolidated and unconsolidated indebtedness at JBG SMITH Share | $2.55 billion | | Net Debt | $2.48 billion | | Total Enterprise Value | $3.80 billion | | Net Debt / Total Enterprise Value | 65.3 % | [Financial Highlights](index=30&type=section&id=Financial%20Highlights) For Q2 2025, JBG SMITH reported a net loss of $19.2 million and Core FFO of $15.7 million (attributable to OP Units), with a FAD payout ratio of 84.2% and Net Debt to annualized Adjusted EBITDA at 11.8x, with a total debt weighted average interest rate of 5.26% Summary Financial Results (dollars in thousands, except per share data) | Financial Highlights | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :------------------------------------ | :------------------------------- | :------------------------------ | | 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 | Debt Summary (at JBG SMITH Share, June 30, 2025) | Debt Summary | Value | | :------------------------------------ | :---------- | | Total consolidated indebtedness | $2,479,101 | | Total consolidated and unconsolidated indebtedness | $2,546,215 | | Weighted average interest rates (Total debt) | 5.26 % | | Cash and cash equivalents | $65,606 | | Net Debt / total enterprise value | 65.3 % | | Net Debt to annualized Adjusted EBITDA | 11.8 x | [Portfolio Overview](index=31&type=section&id=Portfolio%20Overview) As of June 30, 2025, JBG SMITH's operating portfolio (at JBG SMITH Share) consists of 6,596 multifamily units and 6.96 million commercial square feet, with overall leased and occupied rates of 81.8% and 79.5% respectively, and a development pipeline of 19 assets with 8.7 million square feet of potential density Operating Portfolio (at JBG SMITH Share, June 30, 2025) | Asset Type | Number of Assets | Units / Square Feet | % Leased | % Occupied (1) | Annualized Rent (in thousands) | Annualized NOI (2) (in thousands) | | :-------------------- | :--------------- | :------------------ | :--------- | :---------- | :-------------- | :------------- | | Multifamily In-Service | 12 | 5,368 Units | 94.8% | 92.9% | $145,639 | $110,944 | | Multifamily Recently Delivered | 3 | 1,228 Units | 63.7% | 57.5% | $26,786 | $12,932 | | Commercial | 21 | 6,962,917 SF | 76.5% | 74.8% | $223,661 | $139,984 | | Ground Leases | 2 | — | — | — | — | $4,548 | | **Operating - Total** | **38** | **6,596 Units/ 6,962,917 SF** | **81.8%** | **79.5%** | **$396,086** | **$268,408** | Development Portfolio (at JBG SMITH Share, June 30, 2025) | Category | Number of Assets | Units / Square Feet | | :-------------------- | :--------------- | :------------------ | | Under-Construction | 1 | 355 Units | | Development Pipeline | 19 | 8,672,800 SF | [Financial Information](index=32&type=section&id=Financial%20Information) This section provides detailed financial statements and non-GAAP reconciliations for JBG SMITH, including condensed consolidated balance sheets, statements of operations, and specific breakdowns for unconsolidated real estate ventures, offering a granular view of the company's financial performance and position [Condensed Consolidated Balance Sheets](index=32&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) JBG SMITH's consolidated balance sheet as of June 30, 2025, shows total assets of $4.55 billion, a decrease from $5.02 billion at December 31, 2024, primarily due to reductions in real estate, cash, liabilities, and total equity Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Total Assets | $4,549,295 | $5,020,540 | | Real estate, net | $3,775,688 | $4,111,459 | | Cash and cash equivalents | $61,432 | $145,804 | | Total Liabilities | $2,683,299 | $2,787,850 | | Mortgage loans, net | $1,540,670 | $1,767,173 | | Revolving credit facility | $226,000 | $85,000 | | Total Equity | $1,322,793 | $1,809,058 | [Condensed Consolidated Statements of Operations](index=33&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, JBG SMITH reported a net loss of $19.2 million, an improvement from Q2 2024, despite decreased total revenue, as a significant gain on real estate sales partially offset increased impairment losses and interest expense Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Total revenue | $126,479 | $135,320 | | Property rental | $106,509 | $112,536 | | Third-party real estate services, including reimbursements | $14,805 | $17,397 | | Total expenses | $128,214 | $138,434 | | Interest expense | $(35,571) | $(31,973) | | Gain on the sale of real estate, net | $41,832 | $89 | | Impairment loss | $(31,813) | $(1,025) | | Net loss attributable to common shareholders | $(19,241) | $(24,373) | | Loss per common share - diluted | $(0.29) | $(0.27) | [Unconsolidated Real Estate Ventures - Balance Sheet and Operating Information](index=34&type=section&id=Unconsolidated%20Real%20Estate%20Ventures%20-%20Balance%20Sheet%20and%20Operating%20Information) As of June 30, 2025, JBG SMITH's share of unconsolidated real estate ventures had total assets of $160.5 million and total liabilities of $77.7 million, generating $2.4 million in total revenue and $0.85 million in net income for Q2 2025 Balance Sheet Information (at JBG SMITH Share, in thousands) | Metric | June 30, 2025 | | :-------------------- | :------------ | | Total real estate, at cost | $161,542 | | Real estate, net | $144,020 | | Total assets | $160,481 | | Borrowings, net | $67,114 | | Total liabilities | $77,693 | Operating Information (at JBG SMITH Share, in thousands) | Metric | Three Months Ended June 30, 2025 | | :-------------------- | :------------------------------- | | Total revenue | $2,427 | | Total expenses | $2,055 | | Net income | $851 | | Income from unconsolidated real estate ventures, net | $1,091 | [Other Tangible Assets and Liabilities](index=35&type=section&id=Other%20Tangible%20Assets%20and%20Liabilities) As of June 30, 2025, JBG SMITH's share of other tangible assets, net, totaled $142.6 million, primarily from restricted cash and receivables, while other tangible liabilities, net, amounted to $162.4 million, mainly from accounts payable and other liabilities Other Tangible Assets, Net (at JBG SMITH Share, in thousands) | Asset | June 30, 2025 | | :------------------- | :------------ | | 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 (at JBG SMITH Share, in thousands) | Liability | June 30, 2025 | | :--------------------- | :------------ | | Accounts payable and accrued liabilities | $81,691 | | Other liabilities, net | $80,680 | | **Total Other Tangible Liabilities, Net** | **$162,371** | [EBITDA, EBITDAre and Adjusted EBITDA Reconciliations (Non-GAAP)](index=36&type=section&id=EBITDA%2C%20EBITDAre%20and%20Adjusted%20EBITDA%20Reconciliations%20(Non-GAAP)) For Q2 2025, JBG SMITH reported EBITDA of $61.4 million, EBITDAre of $49.9 million, and Adjusted EBITDA of $52.7 million, with Net Debt to Annualized Adjusted EBITDA at 11.8x, reflecting adjustments from net loss for depreciation, interest, and other non-recurring items EBITDA, EBITDAre and Adjusted EBITDA (dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | EBITDA | $61,432 | $52,292 | | EBITDAre | $49,913 | $52,203 | | Adjusted EBITDA | $52,710 | $52,980 | - Net Debt to Annualized Adjusted EBITDA was **11.8x** as of June 30, 2025 (vs. **11.9x** in Q2 2024)[133](index=133&type=chunk) - Net Debt (at JBG SMITH Share) was **$2,480,609 thousand** as of June 30, 2025 (vs. **$2,522,604 thousand** in Q2 2024)[133](index=133&type=chunk) [FFO, Core FFO and FAD Reconciliations (Non-GAAP)](index=37&type=section&id=FFO%2C%20Core%20FFO%20and%20FAD%20Reconciliations%20(Non-GAAP)) For Q2 2025, FFO attributable to OP Units was $12.3 million, Core FFO was $15.7 million, and FAD available to OP Units was $18.2 million, resulting in an 84.2% FAD Payout Ratio, reflecting a decrease in FFO/Core FFO but an improved FAD payout ratio compared to Q2 2024 FFO, Core FFO and FAD (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | | FFO Attributable to OP Units | $12,324 | $16,927 | | FFO Attributable to Common Shareholders | $9,953 | $14,335 | | Core FFO Attributable to OP Units | $15,743 | $18,962 | | Core FFO Attributable to Common Shareholders | $12,714 | $16,058 | | FAD available to OP Units | $18,208 | $19,728 | | FAD Payout Ratio | 84.2 % | 96.4 % | - Weighted average shares - diluted (FFO and Core FFO) were **68,451 thousand** for Q2 2025, down from **91,154 thousand** in Q2 2024[136](index=136&type=chunk) [Third-Party Asset Management and Real Estate Services Business (Non-GAAP)](index=39&type=section&id=Third-Party%20Asset%20Management%20and%20Real%20Estate%20Services%20Business%20(Non-GAAP)) For Q2 2025, JBG SMITH's third-party asset management and real estate services business generated $6.85 million in total service revenue (at JBG SMITH Share), primarily from property management, asset management, and leasing fees, resulting in $1.45 million in total services revenue less allocated expenses Third-Party Asset Mgmt and Real Estate Services Business (in thousands, at JBG SMITH Share) | Service Revenue Type | Three Months Ended June 30, 2025 | | :-------------------------- | :------------------------------- | | 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** | - Total Services Revenue Less Allocated General and Administrative Expenses was **$1,453 thousand** for Q2 2025[144](index=144&type=chunk) - Excludes **$7.9 million of reimbursement revenue** and **$0.1 million of service revenue** from economic interest in real estate ventures[144](index=144&type=chunk) [Pro Rata Adjusted General and Administrative Expenses (Non-GAAP)](index=40&type=section&id=Pro%20Rata%20Adjusted%20General%20and%20Administrative%20Expenses%20(Non-GAAP)) For Q2 2025, JBG SMITH's total general and administrative expenses were $30.28 million, which, after adjustments for reimbursed expenses and unconsolidated real estate ventures, resulted in Pro Rata Adjusted General and Administrative Expenses of $22.43 million Pro Rata Adjusted G&A (in thousands) | General and Administrative Expenses | Per Statement of Operations | Adjustments (A) | Adjustments (B) | Pro Rata Adjusted | | :-------------------------- | :------------------------ | :-------------- | :-------------- | :---------------- | | Corporate and other | $16,720 | $0 | $314 | $17,034 | | Third-party real estate services | $13,562 | $(7,851) | $(314) | $5,397 | | **Total** | **$30,282** | **$(7,851)** | **$0** | **$22,431** | - Adjustment A removes **$7.9 million of general and administrative expenses** reimbursed by third-party owners[145](index=145&type=chunk) - Adjustment B reflects an allocation of JBG SMITH's share of general and administrative expenses of unconsolidated real estate ventures[146](index=146&type=chunk) [Same Store NOI (Non-GAAP)](index=41&type=section&id=Same%20Store%20NOI%20(Non-GAAP)) For Q2 2025, JBG SMITH's total Same Store NOI decreased by 3.0% year-over-year to $59.5 million, with multifamily NOI decreasing by 1.5% due to higher expenses and commercial NOI decreasing by 4.6% due to lower revenue, while ground leases increased by 19.9% Same Store NOI (at JBG SMITH Share, in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :-------------------- | :------------------------------- | :------------------------------- | :------- | | Multifamily | $24,796 | $25,180 | (1.5)% | | Commercial | $33,594 | $35,212 | (4.6)% | | Ground Leases | $1,137 | $948 | 19.9% | | **Total Same Store NOI** | **$59,527** | **$61,340** | **(3.0)%** | - Multifamily revenue increased **1.4% YoY**, but expenses increased **5.7%**, leading to a **1.5% NOI decrease**[147](index=147&type=chunk) - Commercial revenue decreased **4.6% YoY**, and expenses decreased **4.5%**, resulting in a **4.6% NOI decrease**[147](index=147&type=chunk) [Summary NOI (Non-GAAP)](index=42&type=section&id=Summary%20NOI%20(Non-GAAP)) For Q2 2025, JBG SMITH's Operating Portfolio NOI (at JBG SMITH Share) was $67.1 million, with an annualized NOI of $268.4 million, an overall occupancy of 79.5%, and significant annualized free rent of $23.7 million Operating Portfolio NOI and Annualized NOI (at JBG SMITH Share, in thousands) | Category | Operating Portfolio NOI | Annualized NOI | | :-------------------- | :---------------------- | :------------- | | Multifamily | $30,969 | $123,876 | | Commercial | $34,996 | $139,984 | | Ground Leases | $1,137 | $4,548 | | **Total Operating Portfolio NOI** | **$67,102** | **$268,408** | - Overall **% occupied** (at JBG SMITH Share) was **79.5%**[149](index=149&type=chunk) - Annualized Free Rent (at JBG SMITH Share) was **$23,692 thousand**[149](index=149&type=chunk) - Annualized base rent of signed leases, not commenced (at JBG SMITH Share) was **$6,284 thousand**[149](index=149&type=chunk) [Summary NOI – Multifamily (Non-GAAP)](index=43&type=section&id=Summary%20NOI%20%E2%80%93%20Multifamily%20(Non-GAAP)) For Q2 2025, JBG SMITH's multifamily operating portfolio (at JBG SMITH Share) generated $31.0 million in NOI, with an annualized NOI of $123.9 million, 85.8% occupied, and $3.06 million in annualized free rent Multifamily Operating Portfolio NOI and Annualized NOI (at JBG SMITH Share, in thousands) | Region | Operating Portfolio NOI | Annualized NOI | | :-------------------- | :---------------------- | :------------- | | National Landing | $16,785 | $67,140 | | DC | $14,184 | $56,736 | | **Total Multifamily** | **$30,969** | **$123,876** | - Multifamily portfolio **% occupied** (at JBG SMITH Share) was **85.8%**[155](index=155&type=chunk) - Annualized Free Rent (at JBG SMITH Share) was **$3,056 thousand**[155](index=155&type=chunk) - Annualized base rent of signed leases, not commenced (at JBG SMITH Share) was **$420 thousand**[155](index=155&type=chunk) [Summary NOI – Commercial (Non-GAAP)](index=44&type=section&id=Summary%20NOI%20%E2%80%93%20Commercial%20(Non-GAAP)) For Q2 2025, JBG SMITH's commercial operating portfolio (at JBG SMITH Share) generated $35.0 million in NOI, with an annualized NOI of $139.98 million, 74.8% occupied, and $18.97 million in annualized free rent Commercial Operating Portfolio NOI and Annualized NOI (at JBG SMITH Share, in thousands) | Region | Operating Portfolio NOI | Annualized NOI | | :-------------------- | :---------------------- | :------------- | | National Landing | $30,387 | $121,548 | | Other | $4,609 | $18,436 | | **Total Commercial** | **$34,996** | **$139,984** | - Commercial portfolio **% occupied** (at JBG SMITH Share) was **74.8%**[160](index=160&type=chunk) - Annualized Free Rent (at JBG SMITH Share) was **$18,968 thousand**[160](index=160&type=chunk) - Annualized base rent of signed leases, not commenced (at JBG SMITH Share) was **$5,864 thousand**[160](index=160&type=chunk) [Leasing Activity](index=45&type=section&id=Leasing%20Activity) This section details JBG SMITH's multifamily and office leasing performance, including new and renewal lease rates, lease terms, mark-to-market changes, future lease expirations, and tenant/industry concentration, highlighting exposure to government, government contractors, and business services [Signed But Not Yet Commenced Leases](index=45&type=section&id=Signed%20But%20Not%20Yet%20Commenced%20Leases) As of June 30, 2025, JBG SMITH had $6.28 million in annualized estimated rent from signed but not yet commenced leases (at JBG SMITH Share), primarily from commercial operating leases, with expected commencement throughout 2025 and 2026 - Total annualized estimated rent from signed but not yet commenced leases (at JBG SMITH Share) was **$6,284 thousand**[164](index=164&type=chunk) Annualized Estimated Rent by Asset Type (at JBG SMITH Share, in thousands) | Asset Type | Annualized Estimated Rent | | :-------------------- | :------------------------ | | Multifamily Operating | $420 | | Commercial Operating | $5,864 | - Expected rent commencement is staggered, with significant portions in **Q4 2025 ($785k)**, **Q1 2026 ($1,455k)**, and **Q2 2026 ($1,466k)**[164](index=164&type=chunk) [Leasing Activity - Multifamily](index=46&type=section&id=Leasing%20Activity%20-%20Multifamily) For Q2 2025, JBG SMITH's multifamily portfolio (Same Store, at JBG SMITH Share) achieved effective new lease rates of 1.0% and effective renewal lease rates of 8.9%, with a blended rate of 5.0% and a renewal rate of 49.0%, consistent with Q2 2024 Multifamily Leasing Activity (Same Store, at JBG SMITH Share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | | Effective new lease rates | 1.0% | 1.0% | | Effective renewal lease rates | 8.9% | 9.0% | | Effective blended lease rates | 5.0% | 5.1% | | Renewal rate | 49.0% | 51.6% | [Leasing Activity - Office](index=47&type=section&id=Leasing%20Activity%20-%20Office) For Q2 2025, JBG SMITH executed 208,000 square feet of office leases (at JBG SMITH Share), with a weighted average lease term of 5.8 years, and second-generation leases experiencing a (6.1)% cash rental rate decrease and a (4.8)% GAAP rental rate decrease Q2 2025 Office Leasing Activity (at JBG SMITH Share) | Metric | New Leasing | Renewal Leasing | Total Leasing | | :------------------------------------ | :---------- | :-------------- | :------------ | | Square feet leased (in thousands) | 87 | 121 | 208 | | Initial rent ($/SF) | $46.75 | $50.75 | $49.07 | | Weighted average lease term (years) | 7.5 | 4.5 | 5.8 | | Weighted average Free Rent period (months) | 4.2 | 4.9 | 4.6 | | Tenant improvements and leasing commissions per square foot per annum ($) | $12.01 | $2.76 | $7.80 | Mark-to-Market on Second-Generation Space (Q2 2025) | Basis | % change | | :---------- | :------- | | Cash basis | (6.1)% | | GAAP basis | (4.8)% | [Lease Expirations](index=48&type=section&id=Lease%20Expirations) As of June 30, 2025, JBG SMITH's office and retail operating portfolio has 5.23 million square feet of leases expiring, with a total annualized rent of $234.5 million and a weighted average remaining lease term of 5.5 years, with significant expirations projected for 2027 and 2031 Total Lease Expirations (at JBG SMITH Share, June 30, 2025) | Metric | Value | | :-------------------- | :---------------- | | Number of Leases | 393 | | Square Feet | 5,231,489 | | Annualized Rent (in thousands) | $234,549 | | Weighted Average Remaining Lease Term | 5.5 years | Lease Expiration Schedule (by year, % of Total Square Feet) | Year | % of Total Square Feet | | :--- | :--------------------- | | 2025 | 6.2 % | | 2026 | 6.7 % | | 2027 | 13.2 % | | 2028 | 7.9 % | | 2029 | 5.2 % | | 2030 | 10.9 % | | 2031 | 11.8 % | | 2032 | 12.5 % | | 2033 | 6.8 % | | Thereafter | 18.3 % | [Tenant Concentration](index=49&type=section&id=Tenant%20Concentration) As of June 30, 2025, JBG SMITH's operating office and retail portfolio (at JBG SMITH Share) shows significant tenant concentration, with the U.S. Government (GSA) as the largest tenant (23.5% of annualized rent) and Amazon as the second largest (7.1%), with the top 20 tenants contributing 56.7% of total annualized rent Top 2 Tenants by % of Total Annualized Rent (at JBG SMITH Share) | Tenant | % of Total Annualized Rent | | :-------------------------- | :------------------------- | | U.S. Government (GSA) | 23.5 % | | Amazon | 7.1 % | - Total annualized rent from the top 20 tenants is **$132,972 thousand**, representing **56.7% of the total annualized rent**[175](index=175&type=chunk) - Total Annualized Rent (at JBG SMITH Share) was **$234,549 thousand**[175](index=175&type=chunk) [Industry Diversity](index=50&type=section&id=Industry%20Diversity) As of June 30, 2025, JBG SMITH's operating office and retail portfolio (at JBG SMITH Share) demonstrates a diverse industry mix, with strong concentrations in Government Contractors (27.4% of annualized rent), Government (23.7%), and Business Services (14.9%), reflecting its Washington, DC market focus Top 3 Industries by % of Total Annualized Rent (at JBG SMITH Share) | Industry | % of Total Annualized Rent | | :-------------------- | :------------------------- | | Government Contractors | 27.4 % | | Government | 23.7 % | | Business Services | 14.9 % | - Total Annualized Rent (at JBG SMITH Share) was **$234,549 thousand**[177](index=177&type=chunk) [Property Data](index=51&type=section&id=Property%20Data) This section provides detailed tables for JBG SMITH's property portfolio, categorizing assets as multifamily, commercial, under-construction, and development pipeline, including metrics such as ownership, square footage/units, leased/occupied percentages, and annualized rent/NOI, offering a comprehensive view of the company's real estate holdings and development projects [Property Tables: Multifamily](index=51&type=section&id=Property%20Tables%3A%20Multifamily) JBG SMITH's multifamily portfolio (at 100% share) comprises 15 operating assets with 6,596 units, including 12 In-Service assets (94.7% leased, 92.8% occupied) and three recently delivered assets (63.7% leased, 57.5% occupied), with one asset, Valen, under construction Operating Multifamily Assets (at 100% Share, June 30, 2025) | Category | Number of Units | % Leased | % Occupied | Annualized Rent (in thousands) | | :-------------------- | :-------------- | :--------- | :---------- | :----------------------------- | | In-Service | 5,368 | 94.7% | 92.8% | $152,020 | | Recently Delivered | 1,228 | 63.7% | 57.5% | $26,786 | | **Total Operating** | **6,596** | **89.1%** | **85.9%** | **$178,806** | - Valen (formerly 2000 South Bell Street) is under construction with **355 units**[179](index=179&type=chunk)[183](index=183&type=chunk) - Portfolio reconciliation from Q1 2025 to Q2 2025 shows one asset (The Zoe) placed into service and one asset (The Batley) disposed, along with a recapitalization of West Half[181](index=181&type=chunk)[183](index=183&type=chunk) [Property Tables: Commercial](index=53&type=section&id=Property%20Tables%3A%20Commercial) JBG SMITH's commercial portfolio (at 100% share) consists of 21 operating assets totaling 6.96 million square feet, 77.4% leased and 75.7% occupied, generating $245.8 million in annualized rent, with the Tysons Dulles Plaza office campus acquired in Q2 2025 Operating Commercial Assets (at 100% Share, June 30, 2025) | Metric | Value | | :-------------------- | :---------------- | | Total Square Feet | 6,962,917 | | % Leased | 77.4% | | % Occupied | 75.7% | | Annualized Rent (in thousands) | $245,816 | | Office Annualized Rent Per Square Foot | $46.62 | | Retail Annualized Rent Per Square Foot | $44.57 | - Tysons Dulles Plaza, a **491,494-square-foot office campus**, was acquired on May 2, 2025[184](index=184&type=chunk)[185](index=185&type=chunk) - Portfolio reconciliation from Q1 2025 to Q2 2025 shows the acquisition of Tysons Dulles Plaza and minor re-measurements[185](index=185&type=chunk) [Property Tables: Under-Construction](index=55&type=section&id=Property%20Tables%3A%20Under-Construction) JBG SMITH has one multifamily asset, Valen, under construction in National Landing, comprising 355 units and 303,932 square feet, with an estimated completion in Q3 2025, stabilization in Q4 2026, and a projected NOI yield of 6.0% on total investment Under-Construction Asset (at 100% Share, June 30, 2025) | Asset | Submarket | Units | Square Feet | Estimated Completion Date | Estimated Stabilization Date | | :---- | :-------- | :---- | :---------- | :------------------------ | :------------------------- | | Valen | National Landing | 355 | 303,932 | Q3 2025 | Q4 2026 | Financial Projections (at JBG SMITH Share, in thousands) | Metric | Value | | :-------------------------- | :------------ | | Estimated Total Investment | $179,881 | | Estimated Incremental Investment | $13,027 | | Estimated Stabilized NOI (dollars in millions) | $10.7 | | Projected NOI Yield (Estimated Total Investment) | 6.0 % | | Projected NOI Yield (Estimated Incremental Investment) | 82.2 % | [Property Tables: Development Pipeline](index=56&type=section&id=Property%20Tables%3A%20Development%20Pipeline) JBG SMITH's development pipeline (at 100% share) consists of 19 assets with an estimated potential development density of 10.7 million square feet (8.3 million SF multifamily, 2.2 million SF office, 0.27 million SF retail), with 56% fully entitled Development Pipeline (at 100% Share, June 30, 2025) | Asset Type | Estimated Potential Development Density (SF) | Number of Units | | :-------------------- | :--------------------------------------- | :-------------- | | Multifamily | 8,264,600 | 7,685 | | Office | 2,184,300 | — | | Retail | 265,800 | — | | **Total** | **10,714,700** | **7,685** | Development Pipeline (at JBG SMITH Share, June 30, 2025) | Asset Type | Estimated Potential Development Density (SF) | Number of Units | | :-------------------- | :--------------------------------------- | :-------------- | | Multifamily | 7,649,800 | 7,155 | | Office | 806,000 | — | | Retail | 217,000 | — | | **Total** | **8,672,800** | **7,155** | - Approximately **56% (4,859,600 SF)** of the development pipeline (at JBG SMITH Share) is fully entitled, with the remaining **44% (3,813,200 SF)** in entitlement process[192](index=192&type=chunk) - Historical Cost at JBG SMITH Share for the development pipeline was **$391,118 thousand**[192](index=192&type=chunk) [Disposition and Recapitalization Activity](index=58&type=section&id=Disposition%20and%20Recapitalization%20Activity) JBG SMITH completed significant disposition and recapitalization activities in Q1, Q2, and Q3 2025 YTD, totaling $546.0 million in gross sales price (at JBG SMITH Share), including multifamily assets and a development parcel, and recapitalized a 40.0% interest in West Half for $100.0 million Disposition Activity (at JBG SMITH Share, in thousands) | Period | Asset | Asset Type | Gross Sales Price | | :-------------------- | :-------------------- | :-------------------- | :---------------- | | Q1 2025 | 8001 Woodmont | Multifamily | $194,000 | | Q2 2025 | Capitol Point - North | Development Pipeline | $11,000 | | Q2 2025 | WestEnd25 | Multifamily | $186,000 | | Q3 2025 To Date | The Batley | Multifamily | $155,000 | | **Total Gross Sales Price** | | | **$546,000** | - Recapitalized a **40.0% interest in West Half**, a **465-unit multifamily asset**, for **$100.0 million** on May 28, 2025[195](index=195&type=chunk) [Debt](index=59&type=section&id=Debt) This section provides a detailed overview of JBG SMITH's debt structure, including maturity schedules, interest rates, and credit facility information, with total consolidated and unconsolidated principal balance of $2.57 billion as of June 30, 2025, and 84.4% of its debt fixed or hedged [Debt Summary](index=59&type=section&id=Debt%20Summary) As of June 30, 2025, JBG SMITH's total consolidated and unconsolidated principal balance was $2.57 billion, with only 1.3% maturing in 2025, a total weighted average interest rate of 5.26%, and $524.0 million in undrawn revolving credit facility capacity - Total Consolidated and Unconsolidated Principal Balance (at JBG SMITH Share) was **$2,569,419 thousand**[197](index=197&type=chunk) - Only **$33,000 thousand (1.3%)** of total debt is maturing in 2025[197](index=197&type=chunk) Debt Type Distribution (at JBG SMITH Share) | Type | % of total debt maturing | | :---------- | :----------------------- | | Floating rate | 32.7 % | | Fixed rate | 67.3 % | Weighted Average Interest Rates (at JBG SMITH Share) | Type | Rate | | :---------- | :----- | | Variable rate | 5.65 % | | Fixed rate | 5.08 % | | Total debt | 5.26 % | - Revolving credit facility has a **$750 million commitment**, **$226 million outstanding principal balance**, and **$524 million undrawn capacity**[199](index=199&type=chunk) [Debt by Instrument](index=60&type=section&id=Debt%20by%20Instrument) This section details JBG SMITH's consolidated and unconsolidated debt by instrument as of June 30, 2025, including term loans and mortgage loans, with 84.4% of the debt fixed or hedged and a weighted average interest rate of 5.26% - Total Consolidated Principal Balance was **$2,501,419 thousand**[204](index=204&type=chunk) - Total Unconsolidated Principal Balance was **$235,000 thousand**[205](index=205&type=chunk) Key Consolidated Debt Instruments (June 30, 2025, in thousands) | Instrument | Principal Balance | Current Annual Interest Rate | Initial Maturity Date | | :------------------------------------ | :---------------- | :--------------------------- | :-------------------- | | Tranche A‑1 Term Loan | $200,000 | 5.44 % | 01/14/26 | | Tranche A‑2 Term Loan | $400,000 | 4.30 % | 01/13/28 | | Revolving Credit Facility | $226,000 | 6.04 % | 06/29/27 | | The Grace and Reva | $273,620 | 5.19 % | 12/01/29 | Key Unconsolidated Debt Instruments (June 30, 2025, in thousands) | Instrument | Principal Balance | Current Annual Interest Rate | Initial Maturity Date | | :-------------------- | :---------------- | :--------------------------- | :-------------------- | | 1101 17th Street | $60,000 | 5.63 % | 07/14/25 | | 4747 Bethesda Avenue | $175,000 | 5.67 % | 02/20/27 | - Including interest rate caps, **84.4% of the company's debt is fixed or hedged**[200](index=200&type=chunk) [Definitions](index=62&type=section&id=Definitions) This section provides comprehensive definitions for various financial and operational terms used throughout the Supplemental Information, including 'Annualized Rent,' 'Development Pipeline,' 'EBITDA,' 'FFO,' 'FAD,' 'Net Debt,' 'NOI,' 'Same Store,' and 'Under-Construction,' clarifying non-GAAP methodologies and forward-looking estimate limitations - Annualized Rent is the in-place monthly base rent (plus tenant reimbursements for commercial) multiplied by 12, excluding signed but not commenced leases and percentage rent[209](index=209&type=chunk) - EBITDA, EBITDAre, and Adjusted EBITDA are non-GAAP measures for operating performance, adjusted from net income, with EBITDAre following Nareit definition[212](index=212&type=chunk)[213](index=213&type=chunk) - FFO, Core FFO, and FAD are non-GAAP measures for levered operating performance and dividend funding ability, adjusted from net income, with FFO following Nareit definition[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk) - Net Debt represents total consolidated and unconsolidated indebtedness less cash and cash equivalents at JBG SMITH Share[229](index=229&type=chunk) - NOI, Same Store NOI, Annualized NOI, Estimated Stabilized NOI, and Projected NOI Yield are non-GAAP measures for asset performance, reflecting property-related revenue less operating expenses[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk) - JBG SMITH Share refers to the company's ownership percentage of consolidated and unconsolidated assets, excluding certain subordinated interests[226](index=226&type=chunk) - Reconciliations for non-GAAP estimates on a future basis (e.g., Estimated Stabilized NOI) are not provided due to the inherent difficulty of forecasting and the potential for misleading precision[234](index=234&type=chunk) [Appendix – Interest Expense, Transaction and Other Costs, and NOI Reconciliations (Non-GAAP)](index=66&type=section&id=Appendix%20%E2%80%93%20Interest%20Expense%2C%20Transaction%20and%20Other%20Costs%2C%20and%20NOI%20Reconciliations%20(Non-GAAP)) This appendix provides detailed reconciliations for interest expense, transaction and other costs, and net operating income (NOI) for Q2 2025 and YTD, breaking down interest expense, itemizing transaction costs, and offering a comprehensive reconciliation from net loss to NOI, including adjustments for unconsolidated real estate ventures and non-cash items Interest Expense (at JBG SMITH Share, in thousands) | Component | Three Months Ended June 30, 2025 | | :------------------------------------ | :------------------------------- | | Interest expense before capitalized interest | $35,161 | | Amortization of deferred financing costs | $3,872 | | Capitalized interest | $(2,390) | | **Total** | **$36,620** | Transaction and Other Costs (in thousands) | Component | Three Months Ended June 30, 2025 | |

Core Insights - Office REITs experienced significant losses during the recent REIT earnings season, as reported by Hoya Capital, a leading source for sector-level REIT analysis [1] - Following a strong performance in Q4, office leasing volumes for Q1 2025 were disappointing, indicating a potential downturn in the sector [1] Summary by Category Industry Performance - Office REITs were identified as one of the main losers in the REIT earnings season, highlighting challenges within the sector [1] Leasing Activity - The office leasing volumes for Q1 2025 fell short of expectations after a robust Q4, suggesting a decline in demand for office space [1]

Portfolio Overview - As of March 31, 2025, the operating portfolio consisted of 37 assets, including 15 multifamily assets totaling 6,459 units and 20 commercial assets totaling 6.5 million square feet[142]. - The company delivered The Grace and Reva with 808 multifamily units and approximately 38,000 square feet of retail space in 2024[143]. - The company expects to deliver Valen, a 355-unit multifamily tower, later in 2025[143]. Financial Performance - The net loss attributable to common shareholders for Q1 2025 was $45.7 million, or $0.56 per diluted common share, compared to a net loss of $32.3 million, or $0.36 per diluted common share in Q1 2024[150]. - Same store net operating income (NOI) decreased by 5.5% to $63.1 million for Q1 2025 compared to $66.8 million in Q1 2024[150]. - Property rental revenue decreased by approximately $21.1 million, or 17.2%, to $101.5 million in Q1 2025 from $122.6 million in Q1 2024, primarily due to a $25.0 million decrease in revenue from commercial assets[158]. - Third-party real estate services revenue decreased by approximately $3.0 million, or 16.5%, to $14.9 million in Q1 2025 from $17.9 million in Q1 2024[159]. - Same store NOI decreased by $3.7 million, or 5.5%, to $63.1 million for Q1 2025 from $66.8 million for Q1 2024, attributed to lower occupancy and higher utilities expense[173]. - Net loss attributable to common shareholders increased to $45.72 million in Q1 2025 from $32.28 million in Q1 2024, representing a 41.7% increase[175]. - Multifamily property revenue increased by $2.8 million, or 5.3%, to $55.2 million in Q1 2025 from $52.4 million in Q1 2024[181]. - Commercial property revenue decreased by $13.9 million, or 20.7%, to $53.5 million in Q1 2025 from $67.4 million in Q1 2024[182]. Occupancy Rates - The in-service multifamily portfolio was 94.3% occupied as of March 31, 2025, a decrease of 50 basis points from December 31, 2024[147]. - The office portfolio occupancy was 76.4% as of March 31, 2025, a decrease of 10 basis points from December 31, 2024[148]. Expenses and Costs - Depreciation and amortization expense decreased by approximately $9.3 million, or 16.3%, to $47.6 million in Q1 2025 from $56.9 million in Q1 2024[160]. - Interest expense increased by approximately $5.0 million, or 16.7%, to $35.2 million in Q1 2025 from $30.2 million in Q1 2024[165]. - Total property expenses for multifamily and commercial segments increased to $21.71 million and $20.62 million respectively in Q1 2025[180]. - Impairment loss was $8.5 million in Q1 2025, down from $17.2 million in Q1 2024, related to a development parcel[166]. Shareholder Actions - The company has a share repurchase plan with a capacity of $684.1 million as of March 31, 2025[146]. - The company repurchased and retired 12.2 million common shares for $187.5 million, at a weighted average purchase price of $15.43 per share[156]. - The Board of Trustees increased the common share repurchase authorization to $2.0 billion, with 12.2 million shares repurchased for $187.5 million at an average price of $15.43 during Q1 2025[198]. - The company paid dividends totaling $14.8 million and distributions to redeemable noncontrolling interests of $2.8 million[156]. Cash Flow and Debt - Net cash provided by operating activities was $12.9 million for Q1 2025, down from $37.0 million in Q1 2024[203]. - Cash and cash equivalents decreased by $62.9 million to $120.3 million as of March 31, 2025, primarily due to $237.1 million used in financing activities[204]. - Net cash provided by investing activities was $161.3 million, mainly from $188.8 million in real estate sales[206]. - Outstanding debt was $2.5 billion as of March 31, 2025, down from $2.6 billion at the end of 2024[204]. - The company’s mortgage loans totaled $1.64 billion as of March 31, 2025, down from $1.78 billion at the end of 2024[186]. - The company anticipates that cash flows from continuing operations will be adequate to fund business operations and debt service[185]. - As of March 31, 2025, the company had material cash requirements totaling $338.0 million due in 2025 and 2026 for debt service obligations[200]. Interest Rate Management - The effective interest rate for the revolving credit facility was 5.90% as of March 31, 2025[195]. - The company had variable rate mortgage loans totaling $535,457 thousand with a weighted average effective interest rate of 5.55% as of March 31, 2025[225]. - Interest rate swap and cap agreements had an aggregate notional value of $1.4 billion as of March 31, 2025, down from $2.0 billion as of December 31, 2024[230]. - The fair value of interest rate swaps and caps designated as effective hedges was $14.5 million in assets and $4.3 million in liabilities as of March 31, 2025[230]. - The company follows established risk management policies to hedge interest rate risk using derivative financial instruments[228]. - The company assesses the effectiveness of its hedges both at inception and on an ongoing basis, impacting expenses and net income[229].

Financial Performance - JBG SMITH reported a net loss of $45.7 million for Q1 2025, compared to a net loss of $32.3 million in Q1 2024, representing an increase in loss of 41.9% year-over-year [45]. - Funds From Operations (FFO) for Q1 2025 was $(6.2) million, down from $10.7 million in Q1 2024, indicating a significant decline in operational profitability [45]. - Core FFO for Q1 2025 was $7.2 million, down from $26.9 million in Q1 2024, reflecting a decrease of 73.3% year-over-year [45]. - Total revenue for Q1 2025 was $120,686, a decrease of 17.0% from $145,184 in Q1 2024 [93]. - EBITDA for Q1 2025 was $30,671, down 33.2% from $45,909 in Q1 2024 [96]. - Adjusted EBITDA decreased to $45,356 in Q1 2025, a decline of 28.5% from $63,686 in Q1 2024 [99]. - The FAD Payout Ratio for Q1 2025 was 169.4%, significantly higher than 53.7% in Q1 2024 [103]. - Net loss attributable to common shareholders was $45,720 in Q1 2025, compared to a net loss of $32,276 in Q1 2024, representing a 41.7% increase in losses [100]. Portfolio Performance - The multifamily portfolio ended the quarter at 95.7% leased and 94.3% occupied, with Same Store multifamily portfolio effective rents increasing by 1.5% for new leases and 5.6% upon renewal [11][23]. - The office portfolio ended the quarter at 78.3% leased and 76.4% occupied, with a negative 5.5% Same Store NOI growth for the three months ended March 31, 2025 [20][28]. - The operating multifamily portfolio was 93.0% leased and 91.3% occupied as of March 31, 2025, showing slight improvements from 92.9% and 91.0% respectively in Q4 2024 [55]. - Same Store NOI decreased by 5.5% quarter-over-quarter to $63.1 million for Q1 2025, primarily due to lower occupancy and higher utilities expenses [55]. - The total annualized rent across all leases as of March 31, 2025, is $223,874 million, with a weighted average rent per square foot of $45.37 [185]. - The total annualized estimated rent for multifamily operating assets is projected to reach $1,068 million by June 30, 2026, with a steady increase from $768 million as of March 31, 2025 [174]. Debt and Liquidity - A total of 12.2 million shares were repurchased at an average price of $15.43 per share, totaling $187.5 million in 2025, with a cumulative repurchase of 69.0 million shares since 2020 [16]. - The company refinanced RiverHouse Apartments with a $258.9 million loan at a favorable 5.03% rate, enhancing balance sheet flexibility [13]. - The floating rate exposure remains low, with 88.3% of debt fixed or hedged, and only $33.0 million of debt maturing this year, representing 1.3% of total debt [22]. - The company reported a decrease in total equity from $1,809,058 thousand to $1,570,992 thousand, a decline of approximately 13.2% [90]. - The company has a revolving credit facility that increased from $85,000 thousand to $162,000 thousand, indicating a strategic move to enhance liquidity [90]. Market Trends and Outlook - The DC metro area saw year-over-year rent growth of 3.2%, with vacancy rates at 5.5%, indicating resilience despite economic disruptions [25][26]. - The company anticipates continued decreases in earnings and increases in Net Debt to Annualized Adjusted EBITDA through mid-2025, but expects stabilization from newly constructed multifamily assets [21]. - Future growth is anticipated to be influenced by economic factors, including job growth and public transportation expansion in the Washington, DC metropolitan area [114]. - The company is positioned to capitalize on land sales, ground leases, and joint ventures to enhance its portfolio [114]. Development and Construction - JBG SMITH has a development pipeline of 19 assets, representing 8.9 million square feet of estimated potential development density [51]. - The company has 775 units under construction, totaling 580,966 square feet, which will contribute to future revenue growth [191]. - The company has a multifamily project under construction at 2000/2001 South Bell Street, with an estimated total investment of $343.435 million and projected NOI yield of 6.2% [199]. - The completed construction of The Zoe, a 420-unit tower, contributes to the multifamily segment's growth [200]. Asset Management - The company is actively involved in third-party asset management and real estate services, providing fee-based services [117]. - Approximately 75.0% of JBG SMITH's holdings are located in the National Landing submarket, which is driven by key demand factors including Amazon's headquarters and Virginia Tech's $1 billion Innovation Campus [117]. - The company emphasizes the importance of non-GAAP measures like EBITDA and Adjusted EBITDA for evaluating operating performance, although specific figures were not provided in the extracted content [69][70].

Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1]

Debt and Financial Instruments - As of December 31, 2024, the total debt balance was $1.78 billion, with a weighted average interest rate of 5.58% for variable rate debt and 4.79% for fixed rate debt [378]. - The estimated fair value of consolidated debt was $2.6 billion as of December 31, 2024, compared to $2.5 billion in 2023 [381]. - The company had interest rate swap and cap agreements with an aggregate notional value of $2.0 billion designated as effective hedges as of December 31, 2024 [384]. - The company reported a variable rate mortgage loan balance of $587.25 million with an effective interest rate of 5.58% as of December 31, 2024 [378]. - The fair value of non-designated derivatives, specifically interest rate cap agreements, was $2.3 million in assets and $2.3 million in liabilities as of December 31, 2024 [385]. - The company’s revolving credit facility had an outstanding balance of $85 million with an effective interest rate of 5.98% as of December 31, 2024 [378]. - The Tranche A-1 Term Loan had a balance of $200 million with a fixed interest rate of 5.34% as of December 31, 2024 [378]. - The company’s interest rate swaps fixed SOFR at a weighted average interest rate of 4.00% for the Tranche A-1 Term Loan as of December 31, 2024 [386]. - The company’s variable rate mortgage loans included interest rate cap agreements with a weighted average interest rate cap strike of 3.36% [378]. - The company’s pro rata share of debt of unconsolidated real estate ventures was $68 million, with a variable rate of 5.68% [378]. Revenue and Income - Total revenue for 2024 was $547.3 million, a decrease of 9.4% from $604.2 million in 2023 [406]. - Property rental revenue decreased to $457.0 million in 2024, down 5.2% from $483.2 million in 2023 [406]. - Net loss attributable to common shareholders for 2024 was $143.5 million, compared to a net loss of $80.0 million in 2023 [406]. - Net income for 2024 was $(177,753) thousand, a decline from $(91,709) thousand in 2023, compared to a profit of $98,986 thousand in 2022 [407]. - Comprehensive loss attributable to JBG Smith Properties was $(148,476) thousand in 2024, compared to $(105,580) thousand in 2023, and a profit of $146,965 thousand in 2022 [407]. - Total revenue from U.S. federal government leases increased to $64.958 million in 2024, accounting for 11.9% of total revenue, up from 10.7% in 2023 [422][423]. Assets and Liabilities - Total assets decreased to $5.02 billion in 2024 from $5.52 billion in 2023, a decline of 9.1% [403]. - Total liabilities decreased slightly to $2.79 billion in 2024 from $2.83 billion in 2023 [404]. - The company’s total shareholders' equity decreased to $1.81 billion in 2024 from $2.22 billion in 2023, a decline of 18.6% [404]. - Cash and cash equivalents decreased to $145.8 million in 2024 from $164.8 million in 2023 [403]. - The balance of common shares as of December 31, 2024, was 84,500 thousand, a decrease from 94,309 thousand in 2023 [410]. - The total assets of unconsolidated real estate ventures decreased to $488.6 million from $867.6 million in 2023, a decline of approximately 43.6% [513]. - The total equity of unconsolidated real estate ventures decreased to $232.4 million in 2024 from $593.8 million in 2023, a decline of approximately 60.8% [513]. Impairment and Losses - The company reported an impairment loss of $55.4 million in 2024, compared to $90.2 million in 2023 [406]. - The company recorded impairment losses of $6.7 million related to development parcels in its unconsolidated real estate ventures for the year ended December 31, 2024 [499]. - The company recognized an impairment loss of $3.3 million related to The Foundry, included in "Loss from unconsolidated real estate ventures, net" for the year ended December 31, 2023 [507]. Cash Flow and Financing Activities - Net cash provided by operating activities decreased to $129.393 million in 2024 from $183.372 million in 2023, reflecting a decline of approximately 29.4% [412]. - The company reported a net cash used in financing activities of $290.797 million in 2024, compared to $158.825 million in 2023, indicating a significant increase in cash outflows [412]. - The company had a net cash provided by investing activities of $144.155 million in 2024, contrasting with a net cash used of $98.179 million in 2023 [412]. - The company repurchased common shares worth $(170,770) thousand in 2024, compared to $(335,313) thousand in 2023 [410]. Shareholder Information - Dividends declared on common shares were $0.875 per share in 2024, compared to $0.675 per share in 2023 [410]. - The weighted average number of common shares outstanding decreased to 88.3 million in 2024 from 105.1 million in 2023 [406]. Real Estate and Development - Development costs and real estate additions amounted to $218.029 million in 2024, a decrease from $333.744 million in 2023 [412]. - The total investments in unconsolidated real estate ventures decreased to $93.7 million in 2024 from $264.3 million in 2023, a decline of 64.6% [498]. - The company recognized revenue of $16.3 million for leasing and property management services provided to unconsolidated real estate ventures in 2024 [503]. - The company acquired a 50% ownership interest in 8001 Woodmont for $115.0 million, including the assumption of a $51.9 million mortgage loan [489]. Accounting and Reporting - The company has adopted ASU 2023-07 for segment reporting, enhancing disclosures of significant segment expenses without impacting consolidated financial statements [482]. - The SEC's new climate-related disclosure rules, effective for annual reports starting December 31, 2025, will require disclosures on climate-related risks and governance [484]. - The fair value hierarchy prioritizes Level 1 inputs (quoted prices in active markets) over Level 3 inputs (unobservable inputs), ensuring a robust valuation process [466]. - Derivative financial instruments are recognized at fair value, with cash flows classified as operating cash flows unless they contain a financing element [457]. Miscellaneous - The company formed an unconsolidated real estate venture with Fortress in April 2022, contributing $66.1 million for a 33.5% interest [509]. - The company acquired the ground lessee's interest in 1900 Crystal Drive for $26.6 million in June 2024 [517].