JBG SMITH(JBGS) - 2025 Q2 - Quarterly Results

LETTER TO SHAREHOLDERS 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 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] - The company is executing a deliberate pivot to reallocate capital from multifamily assets towards office investments, including opportunistic acquisitions and share repurchases[3] - 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] Capital Allocation 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] - 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] - 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] - 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] Financial and Operating Metrics 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] - Annualized NOI totaled $251.0 million (excluding sold, recapitalized, and acquired assets), up 0.1% quarter over quarter[14] - Portfolio Same Store NOI decreased 3.0% for the three months ended June 30, 2025[14] - Net Debt to Annualized Adjusted EBITDA was 11.8x as of June 30, 2025, indicating elevated leverage levels[15] - 84.4% of debt was fixed or hedged as of the end of Q2 2025, with no other debt maturities until December 2026[16] Operating Portfolio 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] - 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] - Office portfolio ended Q2 2025 at 76.5% leased (down 1.8% QoQ) and 74.8% occupied (down 1.6% QoQ)[22] - 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][22] Multifamily Trends 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] 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][18] - A 30.0% increase in Amazon employees living in the National Landing multifamily portfolio since January 2nd[18] DC Metro Multifamily Trends 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] - Median absolute rents remain high with healthy occupancy levels just below 93.9%[19] - New supply pipeline remains constrained with only 1.4% of total inventory under construction, creating a robust environment for growth[21] Office Trends 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] - 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][22] - 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] - Over 1.0 million square feet of obsolete office space has been taken out of service in National Landing for redevelopment or conversion[24] Northern Virginia Office Trends 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] - Sluggish first half with net absorption essentially flat year-to-date, reflecting tenant caution[26] - 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] - Market health is expected to return over a period of years, not quarters, given the 23.0% direct vacancy rate[26] Strategic Outlook 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] - Committed to enhancing the stability and enduring strength of both office and multifamily portfolios, with National Landing transformation as a testament to execution[27] - 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] Q2 2025 EARNINGS RELEASE 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 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] Operating Portfolio (Earnings Release) 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] 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] - 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] - 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] Development Portfolio 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] - The development pipeline includes 19 assets with 8.7 million square feet of estimated potential development density[39] Third-Party Asset Management and Real Estate Services Business (Earnings Release) 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] - 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] - 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] Balance Sheet (Earnings Release) 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] - Net Debt to annualized Adjusted EBITDA was 11.8x as of June 30, 2025[46] - 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] - Acquired Tysons Dulles Plaza for $42.3 million in May 2025[46] - 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] - Repurchased and retired 11.2 million common shares for $184.9 million during Q2 2025[46] 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] - Payable on August 21, 2025, to shareholders of record as of August 7, 2025[44] About JBG SMITH 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] - 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] - Dynamic portfolio currently comprises 12.0 million square feet at share of multifamily, office, and retail assets, 98% of which are Metro-served[45][47] - Maintains a development pipeline encompassing 8.7 million square feet of mixed-use, primarily multifamily, development opportunities[47] - Committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually[47] Forward-Looking Statements 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] - 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] - The company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995[49] Pro Rata Information 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] - This 'at JBG SMITH Share' information is a non-GAAP presentation, believed to provide valuable information regarding economic interests in partially owned entities[51] - 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][53] - 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] Non-GAAP Financial Measures 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][56][57] - 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][60][61][63] - 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] - 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][66] - 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][63][65] 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] - Estimated Potential Development Density reflects management's estimate of developable gross square feet based on current business plans[68] - 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][73] - 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] - Same Store refers to assets that were In-Service for the entirety of both periods being compared, excluding significant redevelopment or renovation[72] - Transaction and Other Costs include costs related to completed, potential, and pursued transactions, demolition costs, and severance[75] - Under-Construction refers to assets that were under construction during the three months ended June 30, 2025[76] Condensed Consolidated Balance Sheets 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 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) 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] - 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] FFO, CORE FFO AND FAD RECONCILIATIONS (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] NOI RECONCILIATIONS (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] Q2 2025 SUPPLEMENTAL INFORMATION 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 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] - National Landing is anchored by Amazon's headquarters, Virginia Tech's $1 billion Innovation Campus, proximity to the Pentagon, and placemaking initiatives[105] 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] 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][103] - 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][107] - 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] - 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] Company Profile 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] 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 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 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 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 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 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 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 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) 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] - 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] FFO, Core FFO and FAD Reconciliations (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] Third-Party Asset Management and Real Estate Services Business (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] - Excludes $7.9 million of reimbursement revenue and $0.1 million of service revenue from economic interest in real estate ventures[144] Pro Rata Adjusted General and Administrative Expenses (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] - Adjustment B reflects an allocation of JBG SMITH's share of general and administrative expenses of unconsolidated real estate ventures[146] Same Store NOI (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] - Commercial revenue decreased 4.6% YoY, and expenses decreased 4.5%, resulting in a 4.6% NOI decrease[147] Summary NOI (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] - Annualized Free Rent (at JBG SMITH Share) was $23,692 thousand[149] - Annualized base rent of signed leases, not commenced (at JBG SMITH Share) was $6,284 thousand[149] Summary NOI – Multifamily (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] - Annualized Free Rent (at JBG SMITH Share) was $3,056 thousand[155] - Annualized base rent of signed leases, not commenced (at JBG SMITH Share) was $420 thousand[155] Summary NOI – Commercial (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] - Annualized Free Rent (at JBG SMITH Share) was $18,968 thousand[160] - Annualized base rent of signed leases, not commenced (at JBG SMITH Share) was $5,864 thousand[160] Leasing Activity 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 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] 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 ($1,466k)[164] Leasing Activity - Multifamily For Q2 2025, JBG SMITH's multifamily portfolio (Same Store, at JBG SMITH Share) achieved effective new lease rates of 1.0% and effective renewal lease rates of 8.9%, with a blended rate of 5.0% and a renewal rate of 49.0%, consistent with Q2 2024 Multifamily Leasing Activity (Same Store, at JBG SMITH Share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | | Effective new lease rates | 1.0% | 1.0% | | Effective renewal lease rates | 8.9% | 9.0% | | Effective blended lease rates | 5.0% | 5.1% | | Renewal rate | 49.0% | 51.6% | Leasing Activity - Office For Q2 2025, JBG SMITH executed 208,000 square feet of office leases (at JBG SMITH Share), with a weighted average lease term of 5.8 years, and second-generation leases experiencing a (6.1)% cash rental rate decrease and a (4.8)% GAAP rental rate decrease Q2 2025 Office Leasing Activity (at JBG SMITH Share) | Metric | New Leasing | Renewal Leasing | Total Leasing | | :------------------------------------ | :---------- | :-------------- | :------------ | | Square feet leased (in thousands) | 87 | 121 | 208 | | Initial rent ($/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 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 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] - Total Annualized Rent (at JBG SMITH Share) was $234,549 thousand[175] Industry Diversity 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] Property Data 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 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][183] - 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][183] Property Tables: Commercial 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][185] - Portfolio reconciliation from Q1 2025 to Q2 2025 shows the acquisition of Tysons Dulles Plaza and minor re-measurements[185] Property Tables: Under-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 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] - Historical Cost at JBG SMITH Share for the development pipeline was $391,118 thousand[192] Disposition and Recapitalization Activity 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] 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 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] - Only $33,000 thousand (1.3%) of total debt is maturing in 2025[197] 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] Debt by Instrument 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] - Total Unconsolidated Principal Balance was $235,000 thousand[205] 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] 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] - EBITDA, EBITDAre, and Adjusted EBITDA are non-GAAP measures for operating performance, adjusted from net income, with EBITDAre following Nareit definition[212][213] - 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][221][222] - Net Debt represents total consolidated and unconsolidated indebtedness less cash and cash equivalents at JBG SMITH Share[229] - 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][231][232] - JBG SMITH Share refers to the company's ownership percentage of consolidated and unconsolidated assets, excluding certain subordinated interests[226] - 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] Appendix – Interest Expense, Transaction and Other Costs, and NOI Reconciliations (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 | |