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8-K

JBG SMITH Properties (JBGS)

8-K 2022-05-09 For: 2022-05-09
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Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

May 9, 2022

Graphic

JBG SMITH PROPERTIES

(Exact name of Registrant as specified in its charter)

Maryland **** 001-37994 **** 81-4307010
(State or other jurisdiction of incorporation or organization) (Commission file number) (I.R.S. Employer Identification No.)
4747 Bethesda Avenue **** Bethesda **** MD<br><br>Suite 200 20814
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (240) 333-3600

Former name or former address, if changed since last report:

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares, par value $0.01 per share JBGS New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Item 7.01 Regulation FD Disclosure

On May 9, 2022, the Company posted an investor presentation to its website at www.jbgsmith.com on the “Investor Relations” page. A copy of the investor presentation is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein solely for purposes of this Item 7.01 disclosure.

The information contained in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liabilities of that section, nor incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01Financial Statements and Exhibits

(d) Exhibits

99.1       Investor Presentation – May 2022.

104 Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

JBG SMITH PROPERTIES
May 9, 2022 By: /s/ M. Moina Banerjee
M. Moina Banerjee
Chief Financial Officer
(Principal Financial Officer)

Exhibit 99.1

National Landing Skyline (rendering)<br>1<br>INVESTOR DAY<br>MAY 2022
DISCLOSURES<br>FORWARD<br>-<br>LOOKING STATEMENTS<br>Certain<br>statements<br>contained<br>herein<br>may<br>constitute<br>“forward<br>-<br>looking<br>statements”<br>as<br>such<br>term<br>is<br>defined<br>in<br>Section<br>27<br>A<br>of<br>the<br>Securities<br>Act<br>of<br>1933<br>,<br>as<br>amended,<br>and<br>Section<br>21<br>E<br>of<br>the<br>Securities<br>Exchange<br>Act<br>of<br>1934<br>,<br>as<br>amended<br>..<br>Forward<br>-<br>looking<br>statements<br>are<br>not<br>guarantees<br>of<br>performance<br>..<br>They<br>represent<br>our<br>intentions,<br>plans,<br>expectations<br>and<br>beliefs<br>and<br>are<br>subject<br>to<br>numerous<br>assumptions,<br>risks<br>and<br>uncertainties<br>..<br>Consequently,<br>the<br>future<br>results<br>of<br>JBG<br>SMITH<br>Properties<br>(“JBG<br>SMITH”,<br>the<br>“Company”,<br>“we”,<br>“us”,<br>“our”<br>or<br>similar<br>terms)<br>may<br>differ<br>materially<br>from<br>those<br>expressed<br>in<br>these<br>forward<br>-<br>looking<br>statements<br>..<br>You<br>can<br>find<br>many<br>of<br>these<br>statements<br>by<br>looking<br>for<br>words<br>such<br>as<br>“approximate”,<br>“hypothetical”,<br>“potential”,<br>“believes”,<br>“expects”,<br>“anticipates”,<br>“estimates”,<br>“intends”,<br>“plans”,<br>“would”,<br>“may”<br>or<br>similar<br>expressions<br>in<br>this<br>Investor<br>Presentation<br>..<br>Currently,<br>one<br>of<br>the<br>most<br>significant<br>factors<br>that<br>could<br>cause<br>actual<br>outcomes<br>to<br>differ<br>materially<br>from<br>our<br>forward<br>-<br>looking<br>statements<br>is<br>the<br>adverse<br>effect<br>of<br>the<br>current<br>pandemic<br>of<br>the<br>novel<br>coronavirus,<br>or<br>COVID<br>-<br>19<br>,<br>on<br>our<br>financial<br>condition,<br>results<br>of<br>operations,<br>cash<br>flows,<br>Liquidity,<br>performance,<br>tenants,<br>the<br>real<br>estate<br>market<br>and<br>the<br>global<br>economy<br>and<br>financial<br>markets<br>..<br>The<br>extent<br>to<br>which<br>the<br>COVID<br>-<br>19<br>pandemic<br>continues<br>to<br>impact<br>us<br>and<br>our<br>tenants<br>depends<br>on<br>future<br>developments,<br>many<br>of<br>which<br>are<br>highly<br>uncertain<br>and<br>cannot<br>be<br>predicted<br>with<br>confidence,<br>including<br>the<br>scope,<br>severity,<br>and<br>duration<br>of<br>the<br>pandemic,<br>the<br>actions<br>taken<br>to<br>contain<br>the<br>pandemic<br>or<br>mitigate<br>its<br>impact,<br>the<br>direct<br>and<br>indirect<br>economic<br>effects<br>of<br>the<br>pandemic<br>and<br>containment<br>measures,<br>and<br>whether<br>the<br>residential<br>market<br>in<br>the<br>Washington,<br>DC<br>region<br>and<br>any<br>of<br>our<br>properties<br>will<br>be<br>materially<br>impacted<br>by<br>the<br>expiration<br>of<br>various<br>moratoriums<br>on<br>residential<br>evictions,<br>among<br>others<br>..<br>Moreover,<br>investors<br>are<br>cautioned<br>to<br>interpret<br>many<br>of<br>the<br>risks<br>identified<br>under<br>the<br>section<br>titled<br>“Risk<br>Factors”<br>in<br>our<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>fiscal<br>year<br>ended<br>December<br>31<br>,<br>2021<br>as<br>being<br>heightened<br>as<br>a<br>result<br>of<br>the<br>ongoing<br>and<br>numerous<br>adverse<br>impacts<br>of<br>the<br>COVID<br>-<br>19<br>pandemic<br>..<br>We<br>also<br>note<br>the<br>following<br>may<br>impact<br>our<br>forward<br>-<br>looking<br>statements<br>:<br>the<br>risks<br>associated<br>with<br>the<br>failure<br>to<br>enter<br>into<br>and/or<br>complete<br>contemplated<br>acquisitions<br>or<br>dispositions<br>within<br>the<br>price<br>ranges<br>anticipated<br>and<br>on<br>the<br>terms<br>and<br>timing<br>anticipated,<br>or<br>at<br>all<br>;<br>the<br>impact<br>of<br>COVID<br>-<br>19<br>and<br>the<br>ensuing<br>economic<br>turmoil<br>on<br>our<br>Company,<br>net<br>operating<br>income,<br>same<br>store<br>net<br>operating<br>income,<br>net<br>asset<br>value,<br>stock<br>price,<br>occupancy<br>rates,<br>revenue<br>from<br>our<br>multifamily<br>and<br>commercial<br>portfolios,<br>operating<br>costs,<br>deferrals<br>of<br>rent,<br>uncollectible<br>operating<br>lease<br>receivables,<br>parking<br>revenue,<br>and<br>burn<br>-<br>off<br>of<br>rent<br>abatement<br>;<br>whether<br>the<br>recent<br>decline<br>in<br>demand<br>for<br>office<br>space<br>will<br>continue<br>or<br>accelerate<br>and<br>the<br>impact<br>of<br>such<br>decline<br>on<br>our<br>ability<br>to<br>renew<br>or<br>lease<br>-<br>up<br>expiring<br>office<br>space<br>;<br>whether<br>the<br>assumptions<br>on<br>which<br>our<br>“Estimated<br>NOI<br>Bridge”<br>is<br>based<br>will<br>be<br>realized<br>;<br>whether<br>we<br>would<br>be<br>successful<br>in<br>securing<br>the<br>proceeds<br>of<br>our<br>estimated<br>potential<br>multifamily<br>borrowing<br>capacity<br>on<br>attractive<br>terms<br>or<br>at<br>all<br>;<br>the<br>impact<br>of<br>disruptions<br>to<br>the<br>credit<br>and<br>capital<br>markets<br>on<br>our<br>ability<br>to<br>access<br>capital,<br>including<br>refinancing<br>maturing<br>debt<br>;<br>changes<br>to<br>the<br>amount<br>and<br>manner<br>in<br>which<br>tenants<br>use<br>space<br>;<br>whether<br>we<br>will<br>harvest<br>the<br>anticipated<br>value<br>of<br>our<br>development<br>pipeline<br>;<br>whether<br>we<br>incur<br>additional<br>costs<br>or<br>make<br>additional<br>concessions<br>or<br>offer<br>other<br>incentives<br>to<br>existing<br>or<br>prospective<br>tenants<br>to<br>reconfigure<br>space<br>;<br>whether<br>the<br>Washington,<br>DC<br>region<br>will<br>be<br>more<br>resilient<br>than<br>other<br>parts<br>of<br>the<br>country<br>in<br>any<br>recession<br>and<br>whether<br>DC<br>metro<br>asking<br>rents<br>will<br>be<br>more<br>resilient<br>than<br>those<br>in<br>other<br>gateway<br>markets<br>;<br>our<br>annual<br>dividend<br>per<br>share<br>and<br>dividend<br>yield<br>;<br>annualized<br>net<br>operating<br>income<br>;<br>whether<br>in<br>the<br>case<br>of<br>our<br>multifamily<br>portfolio,<br>our<br>anticipated<br>incremental<br>annualized<br>net<br>operating<br>income<br>will<br>be<br>realized<br>;<br>whether<br>our<br>future<br>capital<br>recycling<br>efforts<br>will<br>be<br>successful<br>and<br>will<br>be<br>at<br>or<br>above<br>NAV<br>;<br>whether<br>in<br>the<br>case<br>of<br>our<br>under<br>-<br>construction<br>assets,<br>estimated<br>square<br>feet,<br>estimated<br>number<br>of<br>units<br>and<br>in<br>the<br>case<br>of<br>our<br>near<br>-<br>term<br>and<br>future<br>development<br>assets,<br>estimated<br>potential<br>development<br>density<br>are<br>accurate<br>;<br>expected<br>key<br>Amazon<br>..<br>com,<br>Inc<br>..<br>(“Amazon“)<br>transaction<br>terms<br>and<br>timeframes<br>for<br>closing<br>the<br>Pen<br>Place<br>sale<br>;<br>the<br>amount<br>and<br>timing<br>of<br>planned<br>infrastructure<br>and<br>educational<br>improvements<br>in<br>National<br>Landing<br>related<br>to<br>Amazon’s<br>additional<br>headquarters<br>and<br>the<br>Virginia<br>Tech<br>Innovation<br>Campus<br>;<br>the<br>economic<br>impact,<br>job<br>growth<br>and<br>related<br>demand<br>for<br>multifamily<br>and<br>commercial<br>properties<br>of<br>Amazon’s<br>additional<br>headquarters<br>on<br>the<br>DC<br>region<br>and<br>National<br>Landing<br>and<br>the<br>speed<br>with<br>which<br>such<br>impact<br>occurs<br>and<br>Amazon’s<br>plans<br>for<br>accelerated<br>hiring<br>and<br>in<br>-<br>person<br>work<br>requirements<br>;<br>the<br>impact<br>of<br>our<br>role<br>as<br>the<br>exclusive<br>developer,<br>property<br>manager<br>and<br>retail<br>leasing<br>agent<br>in<br>connection<br>with<br>Amazon’s<br>new<br>headquarters<br>;<br>our<br>development<br>plans<br>related<br>to<br>Amazon’s<br>additional<br>headquarters<br>;<br>whether<br>National<br>Landing<br>will<br>benefit<br>economically<br>from<br>its<br>proximity<br>to<br>the<br>Department<br>of<br>Defense<br>and<br>elevated<br>defense<br>spending<br>;<br>whether<br>our<br>plans<br>related<br>to<br>our<br>investment<br>in<br>5<br>G<br>wireless<br>spectrum<br>across<br>National<br>Landing<br>will<br>be<br>a<br>significant<br>demand<br>catalyst<br>;<br>whether<br>our<br>target<br>markets<br>continue<br>to<br>be<br>fast<br>-<br>growing<br>;<br>whether<br>future<br>supply<br>or<br>construction<br>delays<br>will<br>inhibit<br>our<br>ability<br>to<br>time<br>new<br>multifamily<br>deliveries<br>to<br>meet<br>market<br>demand<br>;<br>whether<br>Amazon<br>will<br>have<br>a<br>similar<br>growth<br>impact<br>on<br>National<br>Landing<br>as<br>in<br>Seattle<br>;<br>whether<br>Seattle’s<br>South<br>Lake<br>Union<br>region<br>pre<br>-<br>pandemic<br>will<br>prove<br>to<br>be<br>an<br>appropriate<br>comparison<br>to<br>National<br>Landing<br>post<br>-<br>pandemic<br>including<br>respective<br>resident<br>preferences<br>regarding<br>housing,<br>office<br>location<br>and<br>commuting<br>;<br>whether<br>National<br>Landing<br>will<br>experience<br>the<br>“Major<br>Milestones“<br>on<br>the<br>timing<br>discussed<br>or<br>at<br>all<br>;<br>whether<br>anticipated<br>near<br>-<br>term<br>net<br>operating<br>income<br>contributions,<br>anticipated<br>resiliency<br>of<br>the<br>DC<br>area<br>and<br>our<br>contemplated<br>shift<br>to<br>multifamily<br>will<br>be<br>realized<br>and,<br>if<br>realized,<br>will<br>have<br>a<br>positive<br>impact<br>on<br>our<br>share<br>price<br>;<br>in<br>the<br>case<br>of<br>our<br>Under<br>Construction<br>and<br>Near<br>-<br>Term<br>Development<br>Pipeline,<br>the<br>estimated<br>completion<br>date,<br>stabilization<br>date,<br>estimated<br>incremental<br>investment,<br>total<br>investment,<br>projected<br>NOI,<br>targeted<br>NOI<br>yield,<br>estimated<br>stabilized<br>value<br>and<br>estimated<br>value<br>creation<br>;<br>whether<br>we<br>will<br>shift<br>to<br>majority<br>multifamily<br>on<br>the<br>timing<br>anticipated<br>or<br>at<br>all<br>;<br>whether<br>we<br>can<br>access<br>agency<br>debt<br>secured<br>by<br>our<br>currently<br>unencumbered<br>multifamily<br>assets<br>in<br>a<br>timely<br>manner,<br>in<br>the<br>amounts<br>we<br>estimate,<br>on<br>reasonable<br>terms<br>or<br>at<br>all<br>;<br>whether<br>our<br>contemplated<br>like<br>-<br>kind<br>exchange<br>of<br>The<br>Batley<br>will<br>occur<br>;<br>whether<br>1900<br>Crystal<br>Drive<br>and<br>2000<br>and<br>2001<br>South<br>Bell<br>Street<br>will<br>generate<br>the<br>stabilized<br>annualized<br>NOI<br>anticipated<br>;<br>whether<br>our<br>newly<br>delivered<br>assets<br>will<br>stabilize<br>on<br>the<br>timing<br>anticipated<br>and<br>deliver<br>the<br>expected<br>annualized<br>NOI<br>;<br>whether<br>we<br>will<br>succeed<br>in<br>our<br>contemplated<br>recycling<br>of<br>disposition<br>proceeds<br>into<br>acquisitions<br>yielding<br>the<br>anticipated<br>stabilized<br>capitalization<br>rates<br>;<br>and<br>whether<br>the<br>allocation<br>of<br>capital<br>to<br>our<br>share<br>repurchase<br>plan<br>has<br>any<br>impact<br>on<br>our<br>share<br>price<br>..<br>2
---
DISCLOSURES<br>Many<br>of<br>the<br>factors<br>that<br>will<br>determine<br>the<br>outcome<br>of<br>these<br>and<br>our<br>other<br>forward<br>-<br>looking<br>statements<br>are<br>beyond<br>our<br>ability<br>to<br>control<br>or<br>predict<br>..<br>These<br>factors<br>include,<br>among<br>others<br>:<br>adverse<br>economic<br>conditions<br>in<br>the<br>Washington,<br>DC<br>metropolitan<br>area,<br>including<br>in<br>relation<br>to<br>COVID<br>-<br>19<br>,<br>the<br>timing<br>of<br>and<br>costs<br>associated<br>with<br>development<br>and<br>property<br>improvements,<br>financing<br>commitments,<br>and<br>general<br>competitive<br>factors<br>..<br>For<br>further<br>discussion<br>of<br>factors<br>that<br>could<br>materially<br>affect<br>the<br>outcome<br>of<br>our<br>forward<br>-<br>looking<br>statements<br>and<br>other<br>risks<br>and<br>uncertainties,<br>see<br>“Risk<br>Factors,”<br>“Management’s<br>Discussion<br>and<br>Analysis<br>of<br>Financial<br>Condition<br>and<br>Results<br>of<br>Operations”<br>and<br>the<br>Cautionary<br>Statement<br>Concerning<br>Forward<br>-<br>Looking<br>Statements<br>in<br>the<br>Company’s<br>Annual<br>Report<br>on<br>Form<br>10<br>-<br>K<br>for<br>the<br>year<br>ended<br>December<br>31<br>,<br>2021<br>and<br>other<br>periodic<br>reports<br>the<br>Company<br>files<br>with<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>..<br>For<br>these<br>statements,<br>we<br>claim<br>the<br>protection<br>of<br>the<br>safe<br>harbor<br>for<br>forward<br>-<br>looking<br>statements<br>contained<br>in<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>..<br>You<br>are<br>cautioned<br>not<br>to<br>place<br>undue<br>reliance<br>on<br>our<br>forward<br>-<br>looking<br>statements<br>..<br>All<br>subsequent<br>written<br>and<br>oral<br>forward<br>-<br>looking<br>statements<br>attributable<br>to<br>us<br>or<br>any<br>person<br>acting<br>on<br>our<br>behalf<br>are<br>expressly<br>qualified<br>in<br>their<br>entirety<br>by<br>the<br>cautionary<br>statements<br>contained<br>or<br>referred<br>to<br>in<br>this<br>section<br>..<br>We<br>do<br>not<br>undertake<br>any<br>obligation<br>to<br>release<br>publicly<br>any<br>revisions<br>to<br>our<br>forward<br>-<br>looking<br>statements<br>to<br>reflect<br>events<br>or<br>circumstances<br>occurring<br>after<br>the<br>date<br>hereof<br>..<br>PRO RATA INFORMATION<br>We<br>present<br>certain<br>financial<br>information<br>and<br>metrics<br>in<br>this<br>release<br>"at<br>JBG<br>SMITH<br>Share,"<br>which<br>refers<br>to<br>our<br>ownership<br>percentage<br>of<br>consolidated<br>and<br>unconsolidated<br>assets<br>in<br>real<br>estate<br>ventures<br>(collectively,<br>"real<br>estate<br>ventures")<br>as<br>applied<br>to<br>these<br>financial<br>measures<br>and<br>metrics<br>..<br>Financial<br>information<br>"at<br>JBG<br>SMITH<br>Share"<br>is<br>calculated<br>on<br>an<br>asset<br>-<br>by<br>-<br>asset<br>basis<br>by<br>applying<br>our<br>percentage<br>economic<br>interest<br>to<br>each<br>applicable<br>line<br>item<br>of<br>that<br>asset's<br>financial<br>information<br>..<br>"At<br>JBG<br>SMITH<br>Share"<br>information,<br>which<br>we<br>also<br>refer<br>to<br>as<br>being<br>"at<br>share,"<br>"our<br>pro<br>rata<br>share"<br>or<br>"our<br>share,"<br>is<br>not,<br>and<br>is<br>not<br>intended<br>to<br>be,<br>a<br>presentation<br>in<br>accordance<br>with<br>GAAP<br>..<br>Given<br>that<br>a<br>substantial<br>portion<br>of<br>our<br>assets<br>are<br>held<br>through<br>real<br>estate<br>ventures,<br>we<br>believe<br>this<br>form<br>of<br>presentation,<br>which<br>presents<br>our<br>economic<br>interests<br>in<br>the<br>partially<br>owned<br>entities,<br>provides<br>investors<br>valuable<br>information<br>regarding<br>a<br>significant<br>component<br>of<br>our<br>portfolio,<br>its<br>composition,<br>performance<br>and<br>capitalization<br>..<br>We<br>do<br>not<br>control<br>the<br>unconsolidated<br>real<br>estate<br>ventures<br>and<br>do<br>not<br>have<br>a<br>legal<br>claim<br>to<br>our<br>co<br>-<br>venturers'<br>share<br>of<br>assets,<br>liabilities,<br>revenue<br>and<br>expenses<br>..<br>The<br>operating<br>agreements<br>of<br>the<br>unconsolidated<br>real<br>estate<br>ventures<br>generally<br>allow<br>each<br>co<br>-<br>venturer<br>to<br>receive<br>cash<br>distributions<br>to<br>the<br>extent<br>there<br>is<br>available<br>cash<br>from<br>operations<br>..<br>The<br>amount<br>of<br>cash<br>each<br>investor<br>receives<br>is<br>based<br>upon<br>specific<br>provisions<br>of<br>each<br>operating<br>agreement<br>and<br>varies<br>depending<br>on<br>certain<br>factors<br>including<br>the<br>amount<br>of<br>capital<br>contributed<br>by<br>each<br>investor<br>and<br>whether<br>any<br>investors<br>are<br>entitled<br>to<br>preferential<br>distributions<br>..<br>With<br>respect<br>to<br>any<br>such<br>third<br>-<br>party<br>arrangement,<br>we<br>would<br>not<br>be<br>in<br>a<br>position<br>to<br>exercise<br>sole<br>decision<br>-<br>making<br>authority<br>regarding<br>the<br>property,<br>real<br>estate<br>venture<br>or<br>other<br>entity,<br>and<br>may,<br>under<br>certain<br>circumstances,<br>be<br>exposed<br>to<br>economic<br>risks<br>not<br>present<br>were<br>a<br>third<br>-<br>party<br>not<br>involved<br>..<br>We<br>and<br>our<br>respective<br>co<br>-<br>venturers<br>may<br>each<br>have<br>the<br>right<br>to<br>trigger<br>a<br>buy<br>-<br>sell<br>or<br>forced<br>sale<br>arrangement,<br>which<br>could<br>cause<br>us<br>to<br>sell<br>our<br>interest,<br>or<br>acquire<br>our<br>co<br>-<br>venturers'<br>interests,<br>or<br>to<br>sell<br>the<br>underlying<br>asset,<br>either<br>on<br>unfavorable<br>terms<br>or<br>at<br>a<br>time<br>when<br>we<br>otherwise<br>would<br>not<br>have<br>initiated<br>such<br>a<br>transaction<br>..<br>Our<br>real<br>estate<br>ventures<br>may<br>be<br>subject<br>to<br>debt,<br>and<br>the<br>repayment<br>or<br>refinancing<br>of<br>such<br>debt<br>may<br>require<br>equity<br>capital<br>calls<br>..<br>To<br>the<br>extent<br>our<br>co<br>-<br>venturers<br>do<br>not<br>meet<br>their<br>obligations<br>to<br>us<br>or<br>our<br>real<br>estate<br>ventures<br>or<br>they<br>act<br>inconsistent<br>with<br>the<br>interests<br>of<br>the<br>real<br>estate<br>venture,<br>we<br>may<br>be<br>adversely<br>affected<br>..<br>Because<br>of<br>these<br>limitations,<br>the<br>non<br>-<br>GAAP<br>"at<br>JBG<br>SMITH<br>Share"<br>financial<br>information<br>should<br>not<br>be<br>considered<br>in<br>isolation<br>or<br>as<br>a<br>substitute<br>for<br>our<br>financial<br>statements<br>as<br>reported<br>under<br>GAAP<br>..<br>MARKET DATA<br>Market<br>data<br>and<br>industry<br>forecasts<br>are<br>used<br>in<br>this<br>Investor<br>Presentation,<br>including<br>data<br>obtained<br>from<br>publicly<br>available<br>sources<br>..<br>These<br>sources<br>generally<br>state<br>that<br>the<br>information<br>they<br>provide<br>has<br>been<br>obtained<br>from<br>sources<br>believed<br>to<br>be<br>reliable,<br>but<br>the<br>accuracy<br>and<br>completeness<br>of<br>the<br>information<br>is<br>not<br>assured<br>..<br>We<br>have<br>not<br>independently<br>verified<br>any<br>such<br>information<br>..<br>3
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DISCLOSURES<br>AMAZON<br>In<br>November<br>2018<br>,<br>Amazon<br>announced<br>it<br>had<br>selected<br>sites<br>in<br>National<br>Landing<br>as<br>the<br>location<br>of<br>its<br>new<br>headquarters<br>..<br>We<br>currently<br>have<br>leases<br>with<br>Amazon<br>totaling<br>1<br>..<br>0<br>million<br>square<br>feet<br>at<br>six<br>office<br>buildings<br>in<br>National<br>Landing<br>..<br>In<br>March<br>2019<br>,<br>we<br>executed<br>purchase<br>and<br>sale<br>agreements<br>with<br>Amazon<br>for<br>two<br>of<br>our<br>National<br>Landing<br>development<br>sites,<br>Metropolitan<br>Park<br>and<br>Pen<br>Place,<br>on<br>which<br>Amazon<br>is<br>constructing<br>its<br>new<br>headquarters<br>..<br>We<br>are<br>currently<br>constructing<br>two<br>new<br>office<br>buildings<br>for<br>Amazon<br>on<br>Metropolitan<br>Park,<br>totaling<br>2<br>..<br>1<br>million<br>square<br>feet,<br>inclusive<br>of<br>over<br>50<br>,<br>000<br>square<br>feet<br>of<br>street<br>-<br>level<br>retail<br>with<br>new<br>shops<br>and<br>restaurants<br>..<br>In<br>December<br>2021<br>,<br>we<br>finalized<br>the<br>agreement<br>for<br>the<br>sale<br>of<br>Pen<br>Place<br>to<br>Amazon<br>for<br>$<br>198<br>..<br>0<br>million,<br>which<br>represents<br>a<br>$<br>48<br>..<br>1<br>million<br>increase<br>over<br>the<br>previously<br>estimated<br>contract<br>value<br>..<br>The<br>sale<br>of<br>Pen<br>Place<br>to<br>Amazon<br>is<br>expected<br>to<br>close,<br>subject<br>to<br>customary<br>closing<br>conditions,<br>during<br>the<br>second<br>quarter<br>of<br>2022<br>..<br>We<br>are<br>the<br>developer,<br>property<br>manager<br>and<br>retail<br>leasing<br>agent<br>for<br>Amazon's<br>new<br>headquarters<br>at<br>National<br>Landing<br>..<br>In<br>connection<br>with<br>Amazon's<br>new<br>headquarters<br>in<br>National<br>Landing,<br>the<br>Commonwealth<br>of<br>Virginia<br>enacted<br>an<br>incentives<br>bill,<br>which<br>provides<br>tax<br>incentives<br>to<br>Amazon<br>to<br>create<br>a<br>minimum<br>of<br>25<br>,<br>000<br>new<br>full<br>-<br>time<br>jobs<br>and<br>potentially<br>37<br>,<br>850<br>full<br>-<br>time<br>jobs<br>in<br>National<br>Landing<br>with<br>average<br>annual<br>wage<br>targets<br>for<br>each<br>calendar<br>year,<br>starting<br>with<br>$<br>150<br>,<br>000<br>in<br>2019<br>,<br>and<br>escalating<br>1<br>..<br>5<br>%<br>per<br>year<br>..<br>JBG<br>SMITH,<br>alongside<br>Amazon,<br>Virginia<br>Tech,<br>and<br>federal,<br>state<br>and<br>local<br>governments<br>plan<br>to<br>invest<br>more<br>than<br>$<br>12<br>..<br>4<br>billion,<br>including<br>infrastructure<br>investments,<br>that<br>will<br>directly<br>benefit<br>National<br>Landing<br>..<br>This<br>includes<br>approximately<br>$<br>6<br>billion<br>of<br>infrastructure<br>investments<br>planned<br>by<br>state<br>and<br>local<br>governments,<br>which<br>is<br>fully<br>committed,<br>including<br>:<br>lowering<br>of<br>elevated<br>sections<br>of<br>U<br>..<br>S<br>..<br>Route<br>1<br>that<br>currently<br>divide<br>parts<br>of<br>National<br>Landing<br>to<br>create<br>better<br>multimodal<br>access<br>and<br>walkability<br>;<br>two<br>new<br>Metro<br>entrances<br>(Crystal<br>Drive<br>and<br>Potomac<br>Yard)<br>;<br>a<br>pedestrian<br>bridge<br>to<br>Reagan<br>National<br>Airport<br>;<br>a<br>new<br>commuter<br>rail<br>station<br>located<br>between<br>two<br>of<br>our<br>Crystal<br>Drive<br>office<br>assets<br>;<br>and<br>Long<br>Bridge,<br>the<br>planned<br>two<br>-<br>track<br>rail<br>connection<br>between<br>Washington,<br>DC<br>and<br>National<br>Landing<br>..<br>We<br>include<br>certain<br>statistics<br>in<br>the<br>following<br>slides<br>as<br>outlined<br>in<br>the<br>Memorandum<br>of<br>Understanding<br>(MOU)<br>between<br>Amazon<br>and<br>the<br>Commonwealth<br>of<br>Virginia,<br>executed<br>on<br>November<br>12<br>,<br>2018<br>,<br>and<br>that<br>identify<br>the<br>proximity<br>of<br>our<br>portfolio<br>to<br>National<br>Landing<br>:<br>specifically,<br>96<br>%<br>of<br>our<br>portfolio,<br>excluding<br>non<br>-<br>core<br>assets,<br>is<br>within<br>a<br>20<br>-<br>minute<br>commute<br>of<br>National<br>Landing,<br>as<br>calculated<br>on<br>a<br>pre<br>-<br>COVID<br>-<br>19<br>Monday<br>morning<br>..<br>We<br>include<br>references<br>to<br>the<br>percentage<br>of<br>Amazon<br>employees<br>who<br>elected<br>to<br>live<br>within<br>walking<br>or<br>biking<br>distance<br>to<br>Amazon’s<br>headquarters<br>in<br>Seattle,<br>as<br>well<br>as<br>the<br>percentage<br>of<br>our<br>portfolio<br>that<br>is<br>within<br>a<br>20<br>-<br>minute<br>commute<br>of<br>National<br>Landing<br>..<br>These<br>percentages<br>are<br>based<br>on<br>pre<br>-<br>COVID<br>-<br>19<br>data<br>..<br>Due<br>to<br>Amazon’s<br>recently<br>announced<br>policies<br>regarding<br>remote<br>work,<br>the<br>pre<br>-<br>pandemic<br>nature<br>of<br>the<br>Seattle<br>data<br>and<br>other<br>factors,<br>we<br>can<br>make<br>no<br>assurance<br>that<br>these<br>data<br>will<br>be<br>comparable<br>for<br>employees<br>who<br>work<br>at<br>Amazon’s<br>HQ<br>2<br>in<br>National<br>Landing<br>..<br>VIRGINIA TECH<br>In<br>the<br>fall<br>of<br>2020<br>,<br>Virginia<br>Tech<br>virtually<br>launched<br>the<br>inaugural<br>academic<br>year<br>of<br>its<br>currently<br>under<br>construction<br>$<br>1<br>billion<br>Innovation<br>Campus<br>in<br>National<br>Landing<br>..<br>This<br>expected<br>powerful<br>demand<br>driver<br>sits<br>adjacent<br>to<br>2<br>..<br>0<br>million<br>square<br>feet<br>of<br>development<br>density<br>we<br>own<br>in<br>National<br>Landing<br>and<br>a<br>new,<br>under<br>-<br>construction<br>Potomac<br>Yard<br>Metro<br>station,<br>all<br>approximately<br>one<br>mile<br>south<br>of<br>Amazon's<br>new<br>headquarters<br>..<br>The<br>campus<br>is<br>part<br>of<br>a<br>20<br>-<br>acre<br>innovation<br>district,<br>of<br>which<br>the<br>fully<br>entitled<br>first<br>phase<br>encompasses<br>approximately<br>1<br>..<br>7<br>million<br>square<br>feet<br>of<br>space,<br>including<br>four<br>office<br>towers<br>and<br>two<br>residential<br>buildings,<br>with<br>ground<br>-<br>level<br>retail<br>..<br>On<br>this<br>campus,<br>Virginia<br>Tech<br>intends<br>to<br>create<br>an<br>innovation<br>ecosystem<br>by<br>co<br>-<br>locating<br>academic<br>and<br>private<br>sector<br>uses<br>to<br>accelerate<br>research<br>and<br>development<br>spending,<br>as<br>well<br>as<br>the<br>commercialization<br>of<br>technology<br>..<br>When<br>the<br>Innovation<br>Campus<br>is<br>fully<br>operational,<br>Virginia<br>Tech<br>plans<br>to<br>annually<br>graduate<br>approximately<br>750<br>master<br>students<br>and<br>150<br>PhD<br>students<br>in<br>STEM<br>fields<br>..<br>Virginia<br>Tech,<br>which<br>is<br>expected<br>to<br>occupy<br>675<br>,<br>000<br>square<br>feet<br>in<br>the<br>Innovation<br>Campus,<br>is<br>also<br>attracting<br>funding<br>from<br>STEM<br>employers<br>(technology,<br>defense<br>and<br>aerospace),<br>including<br>over<br>$<br>65<br>million<br>publicly<br>announced<br>to<br>date<br>from<br>Amazon,<br>Boeing<br>and<br>Northrop<br>Grumman<br>..<br>4
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DISCLOSURES<br>DISPOSITION AND RECAPITALIZATION ACTIVITY SUBSEQUENT TO MARCH 31<br>, 2022<br>–<br>ADJUSTMENT OF CALCULATIONS<br>On<br>April<br>1<br>,<br>2022<br>,<br>we<br>sold<br>the<br>Universal<br>Buildings,<br>commercial<br>assets<br>located<br>in<br>Washington<br>DC,<br>for<br>$<br>228<br>..<br>0<br>million<br>..<br>On<br>April<br>13<br>,<br>2022<br>,<br>we<br>formed<br>an<br>unconsolidated<br>real<br>estate<br>venture<br>with<br>affiliates<br>of<br>Fortress<br>Investment<br>Group<br>LLC<br>(“Fortress”)<br>to<br>recapitalize<br>a<br>1<br>..<br>6<br>million<br>square<br>foot<br>office<br>portfolio<br>and<br>land<br>parcels<br>valued<br>at<br>$<br>580<br>..<br>0<br>million<br>comprising<br>four<br>wholly<br>owned<br>commercial<br>assets<br>(<br>7200<br>Wisconsin<br>Avenue,<br>1730<br>M<br>Street,<br>RTC<br>-<br>West/RTC<br>-<br>West<br>Trophy<br>Office/RTC<br>-<br>West<br>Land<br>and<br>Courthouse<br>Plaza<br>1<br>and<br>2<br>),<br>which<br>were<br>classified<br>as<br>assets<br>held<br>for<br>sale<br>as<br>of<br>March<br>31<br>,<br>2022<br>..<br>Fortress<br>contributed<br>$<br>131<br>..<br>0<br>million<br>for<br>a<br>66<br>..<br>5<br>%<br>interest<br>in<br>the<br>venture<br>..<br>In<br>connection<br>with<br>the<br>transaction,<br>the<br>real<br>estate<br>venture<br>obtained<br>mortgage<br>loans<br>totaling<br>$<br>458<br>..<br>0<br>million<br>secured<br>by<br>the<br>properties,<br>of<br>which<br>$<br>402<br>..<br>0<br>million<br>was<br>drawn<br>at<br>closing<br>..<br>We<br>will<br>provide<br>asset<br>management,<br>property<br>management<br>and<br>leasing<br>services<br>to<br>the<br>venture<br>..<br>Because<br>our<br>interest<br>in<br>the<br>venture<br>is<br>subordinated<br>to<br>a<br>15<br>%<br>preferred<br>return<br>to<br>Fortress,<br>we<br>do<br>not<br>anticipate<br>receiving<br>any<br>near<br>-<br>term<br>cash<br>flow<br>distributions<br>from<br>it<br>..<br>Where<br>noted<br>and<br>going<br>forward,<br>these<br>assets<br>will<br>be<br>excluded<br>from<br>the<br>occupancy,<br>non<br>-<br>GAAP<br>financial<br>measures,<br>and<br>leverage<br>metrics<br>presented<br>in<br>our<br>presentation<br>..<br>On<br>April<br>29<br>,<br>2022<br>,<br>we<br>sold<br>a<br>99<br>-<br>year<br>term<br>leasehold<br>interest<br>in<br>a<br>future<br>development<br>asset<br>located<br>in<br>Reston,<br>VA<br>..<br>DEFINITIONS AND RECONCILIATIONS<br>For<br>certain<br>definitions<br>and<br>reconciliations<br>see<br>pages<br>52<br>–<br>58<br>..<br>5
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AGENDA<br>6<br>1<br>2<br>3<br>4<br>5<br>JBG SMITH TRANSFORMATION<br>OPERATING PORTFOLIO HIGHLIGHTS<br>GROWTH AND CAPITALIZATION<br>NOI BRIDGE AND LIQUIDITY<br>Q&A<br>6<br>APPENDIX
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JBG SMITH TRANSFORMATION
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MAXIMIZING LONG<br>-<br>TERM NAV PER SHARE GROWTH<br>TRANSITIONING TO MAJORITY MULTIFAMILY AND CONCENTRATING OFFICE I<br>N NATIONAL LANDING<br>(1) Includes operating portfolio, under<br>-<br>construction assets and Development Pipeline and excludes non<br>-<br>core assets in light of ou<br>r plans to dispose them.<br>(2) Excludes non<br>-<br>core land assets in light of our plans to dispose them.<br>8<br>70%+<br>of portfolio to be concentrated in National Landing<br>(1)<br>, home to high<br>-<br>growth, future<br>-<br>proof, and mission critical tech demand drivers<br>1<br>2<br>3<br>4<br>8.6M SF Development Pipeline<br>(2)<br>(28% fully entitled remaining 72% expected<br>to be fully entitled by 2024), providing significant growth and monetization<br>opportunities<br>$101M of potential incremental annualized NOI by year<br>-<br>end 2026 (7.6% CAGR).<br>$15M expected by year<br>-<br>end 2022 from multifamily portfolio.<br>Proven capital allocator with a robust balance sheet, led by a seasoned team<br>4747 Bethesda Avenue (Bethesda, MD)<br>5<br>A leader in ESG
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LEADING ON ESG<br>9<br>•<br>Achieved Carbon Neutral<br>operations<br>•<br>5<br>-<br>star rating (2020<br>-<br>2021)<br>•<br>Global Sector Leader (2021)<br>•<br>Leader in the Light Award (2021)<br>•<br>Fitwel Viral Response<br>Certification<br>•<br>Fitwel Champion<br>•<br>“Best ESG Investment Fund: Real Estate” by ESG<br>Investing (2022)<br>•<br>JBGS<br>-<br>managed Impact Pool financed 1,750<br>affordable workforce housing units<br>•<br>Published inaugural D&I report<br>•<br>Founding member of Nareit’s Dividends Through<br>Diversity, Equity & Inclusion CEO council<br>•<br>Diverse Board of Trustees<br>•<br>Newsweek’s America’s Most Responsible<br>Companies (2020<br>-<br>2022)<br>•<br>The Washington Post Top Workplaces (2020)<br>DIVERSITY &<br>INCLUSION
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PORTFOLIO TRANSFORMATION WELL UNDERWAY<br>OPPORTUNISTICALLY SHIFTING TO MAJORITY MULTIFAMILY AND CONCENTRA<br>TING<br>OFFICE IN NATIONAL LANDING<br>10<br>PORTFOLIO COMPOSITION<br>FORMATION<br>TODAY<br>(1)<br>FUTURE<br>(2)<br>INVESTED IN THE BEST<br>-<br>LOCATED AND FASTEST<br>-<br>GROWING URBAN/SUBURBAN SUBMARKETS<br>IN THE DC METRO AREA<br>Note: Portfolio composition percentages based on square feet. Pie charts include operating portfolio and under<br>-<br>construction asse<br>ts. National Landing concentration includes operating portfolio, under<br>-<br>construction assets and Development Pipeline.<br>(1) As of Q1 2022, adjusting for assets sold or recapitalized year<br>-<br>to<br>-<br>date and those that are under firm contract.<br>(2) Achieving estimated future portfolio composition of 50%+ multifamily assumes all non<br>-<br>core assets are sold or recapitalized,<br>in light of our plans to dispose them.<br>NL<br>Commercial<br>36%<br>Other<br>Commercial<br>38%<br>Multifamily<br>26%<br>NL<br>Commercial<br>45%<br>Other<br>Commercial<br>13%<br>Multifamily<br>42%<br>NL<br>Commercial<br>50%<br>Multifamily<br>50%<br>+<br>49% NATIONAL LANDING<br>68% NATIONAL LANDING<br>70%+ NATIONAL LANDING<br>17.9M SF DEVELOPMENT PIPELINE<br>9.6M SF DEVELOPMENT PIPELINE<br>8.6M SF DEVELOPMENT PIPELINE
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DRAMATIC REPOSITIONING OF NATIONAL LANDING<br>NATIONAL LANDING POSITIONED TO BE THE NATION’S PREMIER LIVE<br>-<br>WORK<br>-<br>PLAY DESTINATION<br>11<br>1,583<br>units under construction and potential to start<br>2,150+<br>units over the<br>next 3 years,<br>balancing neighborhood towards multifamily<br>✓<br>55<br>new retailers under construction, including new anchor tenants and local and<br>minority<br>-<br>owned businesses,<br>tripling the number of street<br>-<br>level retailers<br>✓<br>Establishing National Landing as the first<br>5G<br>-<br>enabled connected city<br>at scale<br>in the country<br>✓<br>✓<br>$6B<br>in physical infrastructure initiatives (fully committed)<br>✓<br>Expanded technology ecosystem anchored by<br>Amazon HQ2<br>and<br>Virginia Tech<br>Water Park<br>(rendering)<br>1900 Crystal Drive<br>(rendering)<br>Amazon HQ2<br>(rendering)
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12<br>NATIONAL LANDING SHOULD<br>BENEFIT FROM NOT ONLY<br>AMAZON AND FOLLOW<br>-<br>ON<br>DEMAND, BUT ALSO FROM<br>OTHER PROXIMATE CATALYSTS<br>FOLLOW<br>-<br>ON TECH DEMAND<br>Digital Infrastructure<br>+<br>1 MI. RADIUS<br>1 MILE RADIUS<br>THE PENTAGON<br>AMAZON HQ2<br>VIRGINIA TECH<br>+<br>+<br>The Pentagon + Department of Defense<br>+<br>N<br>Amazon
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POWERFUL TECH DEMAND CATALYSTS IN NATIONAL LANDING<br>(1) Based on data from the National Landing Business Improvement District as of November 2018.<br>(2) Based on trends observed at Amazon’s Seattle headquarters, where 20% of Amazon’s employees live within walking or biking<br>dis<br>tance to work.<br>(3) Source: CBRE Research July 2021. Based on 4.1M SF of new tech leasing in South Lake Union, home of Amazon’s Seattle headq<br>uar<br>ters, and adjacent markets from 2009<br>–<br>2019.<br>13<br>•<br>5,000 employees hired, surpassing 2022 target for incentives, with<br>~4,000 current job openings<br>◦<br>10K+ new hires by 2024<br>◦<br>38K+ new hires incentivized by 2034<br>•<br>Amazon anticipated to increase submarket daytime population by<br>up to 80%<br>(1)<br>•<br>7,600 new Amazon residents expected in the submarket<br>(2)<br>•<br>4M+ SF of anticipated follow<br>-<br>on technology demand<br>(3)<br>Metropolitan Park Amazon HQ2<br>(2023 completion)<br>AMAZON<br>VIRGINIA TECH<br>INNOVATION CAMPUS<br>THE PENTAGON AND<br>THE DEPARTMENT OF DEFENSE<br>DIGITAL INFRASTRUCTURE<br>AMAZON’S INCENTIVE TO BRING 38K+ NEW JOBS AND OCCUPY ~6M SF OF OFFICE IN<br>NATIONAL LANDING IS LIKELY TO DRIVE SIGNIFICANT MULTIFAMILY AND OFFICE DEMAND
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AMAZON IMPACT COMPARISON<br>(1) Source: JLL; reflects market performance in Lake Union from Q4 2010 to Q1 2020.<br>(2) Source: CoStar; based on 1.0<br>-<br>mile radius around Amazon HQ in South Lake Union. Reflects data from Q4 2010 to Q1 2020.<br>14<br>SOUTH LAKE UNION<br>NATIONAL LANDING<br>(Potential)<br>AMAZON JOBS<br>50,000<br>38,000<br>FOLLOW<br>-<br>ON TECH JOBS:<br>(AT ~35%)<br>17,000<br>13,000<br>OFFICE RENT<br>GROWTH<br>(1)<br>71% Total<br>6% CAGR<br>Similar Growth<br>MULTIFAMILY RENT<br>GROWTH<br>(2)<br>45%+ Total<br>4%+ CAGR<br>Similar Growth<br>Helix at Amazon HQ2<br>(rendering)
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15<br>17K<br>Jobs at 240 SF/job =<br>~35%<br>AMAZON AND FOLLOW<br>-<br>ON GROWTH BY<br>OTHER TECH COMPANIES DROVE<br>SIGNIFICANT OFFICE DEMAND IN<br>SOUTH LAKE UNION (2010<br>-<br>2020)<br>15<br>Cumulative Follow<br>-<br>On Tech<br>Demand<br>(2)<br>15<br>71%<br>Overall rent growth<br>(3)<br>6%<br>CAGR<br>(3)<br>13%<br>Increase in occupancy<br>(3)<br>0.1<br>0.1<br>0.3<br>0.4<br>0.5<br>0.7<br>1.3<br>2.6<br>2.9<br>3.4<br>4.1<br>0.0<br>1.0<br>2.0<br>3.0<br>4.0<br>5.0<br>'09<br>'10<br>'11<br>'12<br>'13<br>'14<br>'15<br>'16<br>'17<br>'18<br>'19<br>SF leased (M)<br>Years<br>50K<br>Amazon jobs<br>(1) Source: CBRE.<br>(2) Source: CBRE Research July 2021. Based on 4.1M SF of new tech leasing in South Lake Union<br>and adjacent markets from 2009<br>–<br>2019.<br>(3) Source: JLL; reflects market performance in Lake Union.<br>4.1M<br>SF follow<br>-<br>on tech leasing<br>(2)<br>~12M<br>SF Amazon owned/leased<br>(1)<br>Amazon<br>Follow<br>-<br>on Tech Leasing<br>1 MILE RADIUS
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16<br>DEMAND FOR MULTIFAMILY WALKABLE TO<br>AMAZON AND OTHER TECH COMPANIES<br>WAS SIGNIFICANT, DRIVING RENTS AND<br>NEW SUPPLY (2010<br>-<br>2020)<br>10,000<br>14,800<br>3,400<br>0<br>5,000<br>10,000<br>15,000<br>Demand<br>Supply<br>Renters/Units<br>45%+<br>Total growth in<br>market rents<br>(3)<br>4%+<br>Annual growth in<br>market rents<br>(3)<br>50K<br>67K<br>17K<br>+<br>=<br>Amazon jobs<br>Jobs at<br>~35%<br>Total jobs<br>x<br>20%<br>Walk or bike to work<br>(1)<br>New Multifamily Supply<br>(2)<br>Follow<br>-<br>on Tech Renters<br>Amazon Renters<br>(1) Based on Seattle trends, where Amazon’s first headquarters is located, ~20% of<br>Amazon’s employees elected to live within walking or biking distance to work. See<br>Amazon’s blog post for further detail:<br>https://www.aboutamazon.com/news/workplace/amazon<br>-<br>encourages<br>-<br>employees<br>-<br>to<br>-<br>bike<br>-<br>to<br>-<br>work<br>-<br>with<br>-<br>a<br>-<br>new<br>-<br>perk<br>.. (2) Source: CoStar. (3) Source: CoStar, based on 1.0<br>-<br>mile radius<br>around Amazon HQ in South Lake Union.<br>N<br>Amazon<br>Follow<br>-<br>on Tech Leasing<br>Multifamily Inventory / Development<br>1 MILE RADIUS
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17<br>4.1<br>1.7<br>1<br>..0<br>0.0<br>1.0<br>2.0<br>3.0<br>4.0<br>5.0<br>Expected Demand<br>Expected Supply<br>Office SF (M)<br>Expected Supply and Demand<br>for New Office<br>~6M<br>SF Amazon owned/leased<br>38K<br>Amazon jobs<br>IF TECH COMPANIES FOLLOW AMAZON THE<br>SAME WAY THEY DID IN SEATTLE, OFFICE<br>DEMAND COULD OUTSTRIP SUPPLY<br>~4M<br>SF follow<br>-<br>on tech leasing<br>13K<br>Jobs at<br>~35%<br>Potential New Supply<br>(2)<br>Current Excess Vacancy<br>(3)<br>Expected Follow<br>-<br>On Tech<br>Demand<br>(1)<br>(1) Source: CBRE Research July 2021. Based on 4.1M SF of new tech leasing in South Lake Union<br>and adjacent markets from 2009<br>–<br>2019.<br>(2) Source: CoStar and National Landing Business Improvement District.<br>(3) Source: JLL.<br>N<br>Amazon<br>1 MILE RADIUS
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18<br>7,600<br>6,000<br>2,600<br>2,200<br>0<br>5,000<br>10,000<br>Expected Demand<br>Expected Supply<br>Expected Renters / Units<br>THE DEMAND FOR WALKABLE AND<br>BIKEABLE HOUSING COULD ALSO<br>OUTSTRIP SUPPLY<br>38K<br>51K<br>13K<br>+<br>=<br>Amazon jobs<br>Jobs at<br>~35%<br>Total jobs<br>JBG SMITH Supply<br>Expected Follow<br>-<br>On<br>Amazon<br>Non<br>-<br>JBG SMITH Supply<br>(2)<br>x<br>20%<br>Walk or bike to work<br>(1)<br>(1) Based on Seattle trends, where Amazon’s first headquarters is located, ~20% of Amazon’s<br>employees elected to live within walking or biking distance to work. See Amazon’s blog post<br>for further detail:<br>https://www.aboutamazon.com/news/workplace/amazon<br>-<br>encourages<br>-<br>employees<br>-<br>to<br>-<br>bike<br>-<br>to<br>-<br>work<br>-<br>with<br>-<br>a<br>-<br>new<br>-<br>perk<br>..<br>(2) Source: CoStar and National Landing Business Improvement District.<br>N<br>Amazon<br>Office Locations for Potential Follow<br>-<br>On<br>Non<br>-<br>JBGS<br>SMITH Supply<br>JBG SMITH Supply<br>1 MILE RADIUS
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POWERFUL TECH DEMAND CATALYSTS IN NATIONAL LANDING<br>(1) Source: CoStar and McKinsey report.<br>19<br>•<br>750 planned Master's degrees in STEM annually, supplying knowledge<br>workers to National Landing<br>•<br>Attracting funding from STEM employers (technology, defense and<br>aerospace), including over $65M to date from Amazon, Boeing and<br>Northrop Grumman<br>•<br>Innovation districts typically command a 10% premium in office rents<br>and a 12% premium in residential rents relative to adjacent central<br>business districts<br>(1)<br>•<br>JBGS controls approximately 2.0M SF of estimated development density<br>immediately adjacent to the campus<br>Virginia Tech Innovation Campus rendering<br>(2024 completion)<br>VIRGINIA TECH’S $1B INNOVATION CAMPUS EXPECTED TO ATTRACT A STEADY STREAM OF TECH<br>TALENT AND TENANTS<br>AMAZON<br>VIRGINIA TECH<br>INNOVATION CAMPUS<br>THE PENTAGON AND<br>THE DEPARTMENT OF DEFENSE<br>DIGITAL INFRASTRUCTURE
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$6.4<br>$6.6<br>$6.9<br>$8.0<br>$10.6<br>$12.7<br>$21.5<br>$22.6<br>$27.4<br>$74.2<br>L3Harris<br>BAE Systems<br>Humana<br>Huntington Ingalls<br>ANSER<br>Northrop Grumman<br>Boeing<br>General Dynamics<br>Raytheon<br>Lockheed Martin<br>FY 2020 CONTRACT<br>OBLIGATIONS ($B)<br>POWERFUL TECH DEMAND CATALYSTS IN NATIONAL LANDING<br>Sources: Federal Reserve/Bureau of Economic Affairs, NATO, Wall Street Journal, Nasdaq, DeutscheWelt, Bloomberg Government.<br>20<br>AMAZON<br>VIRGINIA TECH<br>INNOVATION CAMPUS<br>THE PENTAGON AND<br>THE DEPARTMENT OF DEFENSE<br>DIGITAL INFRASTRUCTURE<br>0.0<br>2.0<br>4.0<br>6.0<br>8.0<br>10.0<br>12.0<br>14.0<br>16.0<br>18.0<br>1950<br>1952<br>1954<br>1956<br>1958<br>1960<br>1962<br>1964<br>1966<br>1968<br>1970<br>1972<br>1974<br>1976<br>1978<br>1980<br>1982<br>1984<br>1986<br>1988<br>1990<br>1992<br>1994<br>1996<br>1998<br>2000<br>2002<br>2004<br>2006<br>2008<br>2010<br>2012<br>2014<br>2016<br>2018<br>2020<br>% of GDP<br>DEFENSE SPENDING<br>(SHARE OF US GDP SINCE 1950)<br>3.9%<br>in 2021<br>COLD WAR: 9.3%<br>VIETNAM<br>WAR: 9.4%<br>WAR ON<br>TERROR: 4.9%<br>REAGAN<br>ERA: 7.3%<br>Defense spending (% of GDP) was historically low in 2021 but is slated<br>to<br>increase ~6% in 2022<br>to $782B with $743B allocated to the DoD.<br>While NATO countries have increased defense spending since 2015,<br>spending only averages 1.6% of GDP<br>, although that is changing.<br>Presence in National Landing<br>Increases in the U.S. and NATO defense<br>budget<br>benefits National Landing tenants<br>..<br>COUNTRY<br>2021<br>DEFENSE<br>(% OF GDP)<br>2022 UPDATE<br>Germany<br>1.5%<br>Committed to 2% for 2022<br>U.K.<br>2.3%<br>25% increase suggested by<br>Parliament<br>France<br>2.0%<br>Increase TBD, but committed<br>to by Pres. Macron<br>Italy<br>1.4%<br>Increase suggested by P.M.<br>Draghi<br>Spain<br>1.0%<br>Committed to 2% but unclear<br>timeframe<br>DEFENSE SPENDING AMONG TOP 5 NATO ECONOMIES<br>Germany recently<br>committed €100B to<br>defense<br>modernization and, in<br>March, ordered 35<br>Lockheed F<br>-<br>35s worth<br>€4B.<br>Poland, committed to<br>raise defense<br>spending to 3% of<br>GDP and is replacing<br>its Russian tanks with<br>U.S. General<br>Dynamics models<br>worth $6B.
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POWERFUL TECH DEMAND CATALYSTS IN NATIONAL LANDING<br>Sources: Department of Defense, GAO, Breaking Defense, Congressional Research Office, Federal Times, Breaking Defense, Deltek<br>, A<br>EI, NOTE: Defense spending shows DoD budget request vs. 2022 Omnibus Appropriations Bill DoD (Line 051).<br>21<br>AMAZON<br>VIRGINIA TECH<br>INNOVATION CAMPUS<br>THE PENTAGON AND<br>THE DEPARTMENT OF DEFENSE<br>DIGITAL INFRASTRUCTURE<br>NATIONAL LANDING’S TECH TALENT, DIGITAL INFRASTRUCTURE, AND LOCATION UNIQUELY POSITION IT TO BENEFIT<br>FROM THE CONFLUENCE OF SECURITY AND TECHNOLOGY IN A TIME OF ANTICIPATED ELEVATED DEFENSE SPENDING<br>Technology and defense increasingly rely on the<br>same talent pool.<br>Lockheed’s F<br>-<br>35 Joint Strike<br>Fighter, which is<br>the most<br>expensive<br>weapons system in DoD<br>history,<br>features<br>24 million<br>lines of software code.<br>The DoD budget is growing and, with it, spending on “Science<br>& Technology” that benefit from Digital Infrastructure.<br>$715B<br>FY2022 DoD Budget Request<br>$743B+<br>Approved by Congress<br>$14.7B<br>in Science &<br>Technology<br>Spending<br>$5.6B<br>for Cyber Security including<br>$981M<br>for cryptology<br>modernization<br>$874M<br>for Artificial Intelligence<br>$398M<br>for 5G Communications<br>including<br>It’s not just research.<br>Implementing<br>new technologies across the DoD<br>has significant costs<br>–<br>and goes beyond traditional contractors.<br>$55B<br>Annual Pentagon IT<br>Spending<br>A recent analysis of the Pentagon IT budget<br>identified<br>5G, IoT, and artificial<br>intelligence<br>as the drivers of budget<br>priorities.<br>The latest Joint Cloud bidding pool has no<br>traditional defense contractors:
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POWERFUL TECH DEMAND CATALYSTS IN NATIONAL LANDING<br>22<br>AMAZON<br>VIRGINIA TECH<br>INNOVATION CAMPUS<br>THE PENTAGON AND<br>THE DEPARTMENT OF DEFENSE<br>DIGITAL INFRASTRUCTURE<br>Cloud & Edge<br>Fortune 500<br>Artificial Intelligence<br>Fortune 500<br>Quantum<br>Publicly Traded<br>5G & Wi<br>-<br>Fi Public Networks<br>Fortune 500<br>Cloud & Edge<br>Fortune 500<br>Cybersecurity & Wi<br>-<br>Fi<br>Fortune 500<br>5G Private Networks<br>Growth<br>–<br>Series D<br>Quantum Cybersecurity<br>Publicly Traded<br>Extended Reality<br>Growth<br>–<br>Series A<br>5G & Artificial Intelligence<br>Growth<br>–<br>Series A<br>Autonomous Vehicles<br>Research Institution<br>Ethical Artificial Intelligence<br>Research Institution<br>Note: We are in discussions or negotiations with the companies represented on this page. Companies represented on this page d<br>o n<br>ot represent an exhaustive list of ecosystem participants.<br>NATIONAL LANDING CONTEMPLATED TO BE THE UNITED STATES’ FIRST 5G<br>-<br>ENABLED CONNECTED<br>CITY AT SCALE, STIMULATING A TECH INNOVATION ECOSYSTEM<br>INITIAL 5G<br>-<br>ROLLOUT, INCLUDING 18 SITES, TO BE<br>COMPLETED BY YEAR<br>-<br>END 2022<br>CBRS SPECTRUM<br>UBIQUITOUS WIFI<br>UBIQUITOUS 5G<br>EDGE DATA CENTERS<br>FIBER<br>~$60M ESTIMATED JBG SMITH INVESTMENT<br>DIRECT RETURN: 10%<br>-<br>15% YIELD ON COST<br>INDIRECT RETURN: HIGH<br>-<br>GROWTH TENANCY
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OPERATING PORTFOLIO HIGHLIGHTS
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OPERATING PORTFOLIO HIGHLIGHTS<br>EXISTING OPERATING PORTFOLIO POISED TO BENEFIT FROM<br>NATIONAL LANDING GROWTH CATALYSTS<br>(1) As of Q1 2022, excluding assets sold or recapitalized year<br>-<br>to<br>-<br>date and those that are under firm contract.<br>(2) Multifamily % leased and % occupied metrics represents In<br>-<br>Service portfolio excluding newly developed and acquired assets (W<br>est Half, The Wren, The<br>Batley<br>and 901 W Street). Including these assets, the multifamily In<br>-<br>Service<br>portfolio was 95.5% leased and 92.9% occupied.<br>24<br>National Landing<br>65%<br>Commercial<br>62%<br>Multifamily<br>38%<br>Q1 2022 SQUARE FEET<br>BY USE<br>(1)<br>9.0M SF<br>commercial portfolio<br>87.0%<br>leased <br>85.5%<br>occupied<br>5.9<br>-<br>year<br>WALT<br>OPERATING PORTFOLIO HIGHLIGHTS<br>(1)(2)<br>6,496 units<br>multifamily portfolio<br>96.7%<br>leased <br>94.6%<br>occupied
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NATIONAL LANDING COMMERCIAL PORTFOLIO HIGHLIGHTS<br>WORK FROM HOME HEADWINDS ARE REAL,<br>BUT STRATEGICALLY LOCATED AMENITY<br>-<br>RICH LOCATIONS WILL OUTPERFORM<br>25<br>NOTABLE TECH / CONTRACTOR LEASING<br>TRANSACTIONS SINCE Q2 2020<br>•<br>1.8M SF leases executed since<br>Q2 2020, including:<br>•<br>589K SF of tech and contractor<br>leases<br>•<br>743K SF of government leases<br>•<br>447K SF of Amazon leases<br>•<br>Daily physical occupancy at 49%<br>on peak days in April, up 68%<br>since the low in January 2022<br>(1)<br>(RENEWAL)<br>(RENEWAL)<br>(EXPANSION)<br>(EXPANSION)<br>(EXPANSION)<br>(1) In today’s hybrid work environment, we believe peak occupancy, which generally occurs on Tuesday, Wednesday, and Thursday<br>, i<br>s one of the best barometers in gauging true utilization of office space.<br>(NEW)
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NATIONAL LANDING COMMERCIAL GROWTH DRIVERS<br>$42M OF POTENTIAL<br>NOI<br>GROWTH BY YEAR<br>-<br>END 2026 EMBEDDED IN OUR NATIONAL LANDING<br>COMMERCIAL PORTFOLIO<br>26<br>COMMERCIAL DRIVERS<br>$20M of NOI anticipated from lease<br>-<br>up and stabilization of operating<br>portfolio<br>•<br>Strong leasing pipeline driven by digital infrastructure rollout<br>•<br>Anticipated Amazon and Virginia Tech follow<br>-<br>on demand<br>$22M of potential NOI from 2.5%<br>anticipated market rent growth,<br>annual lease escalations, and the stabilization of parking revenue<br>•<br>Significant potential mark<br>-<br>to<br>-<br>market opportunities on GSA lease roll<br>2<br>1<br>1550 Crystal Drive Lobby (National Landing)<br>INCLUDES APPROXIMATELY $80M OF PLANNED CAPITAL IMPROVEMENTS
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MULTIFAMILY GROWTH DRIVERS<br>$83M OF POTENTIAL NOI GROWTH BY YEAR<br>-<br>END 2026 EMBEDDED IN OUR MU<br>LTIFAMILY PORTFOLIO,<br>$15M OF WHICH IS NEAR<br>-<br>TERM<br>27<br>MULTIFAMILY DRIVERS<br>$15M of potential annualized NOI growth from rent recovery<br>and lease<br>-<br>up anticipated by year<br>-<br>end 2022<br>•<br>In<br>-<br>place portfolio rents 8.5% below today’s asking rents<br>•<br>Stabilization of five newly delivered assets<br>◦<br>West Half, 900 and 901 W Street, The Wren, 8001 Woodmont<br>◦<br>85.4% leased 81.8% occupied<br>$24M of potential annualized NOI from rent growth<br>$44M of potential annualized<br>NOI<br>from stabilization of 1,583<br>multifamily units currently under construction<br>West Half (Ballpark)<br>2<br>1<br>3
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GROWTH AND CAPITALIZATION
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A PROVEN CAPITAL ALLOCATOR<br>(1) Investments include acquisitions and committed development spending. Dispositions include assets sold and under firm cont<br>rac<br>t.<br>(2) Includes assets under firm contract.<br>(3) Represents weighted average per share price of repurchases through April 29, 2022.<br>29<br>INVESTMENTS / DISPOSITIONS<br>(1)<br>(SINCE FORMATION)<br>$2.6B<br>office and land assets sold /<br>recapitalized<br>at or above NAV<br>(2)<br>$1.5B<br>development completed at 6.5%<br>-<br>7%<br>yields<br>$366M<br>multifamily assets acquired at 4.3%<br>stabilized yield<br>$480M<br>11.5M shares issued at $42.00<br>$375M<br>13.2M shares repurchased at $28.40<br>(3)<br>CAPITAL ALLOCATION HIGHLIGHTS<br>(SINCE FORMATION)<br>$1,535M<br>$1,082M<br>$(1,575M)<br>$(1,015M)<br> $(2,000M)<br> $(1,500M)<br> $(1,000M)<br> $(500M)<br> $-<br> $500M<br> $1,000M<br> $1,500M<br> $2,000M<br>2H 2017<br>-<br>2019<br>2020<br>-<br>1H 2022<br>Investment<br>Dispositions
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Closed<br>Incremental 2022 Marketing<br>Total 2022<br>EXPECT TO MEET OR EXCEED $1B CAPITAL RECYCLING GOAL IN 2022<br>SOURCING CAPITAL AT FULL NAV FROM LOW<br>-<br>GROWTH, NON<br>-<br>CORE ASSETS<br>30<br>2022 CAPITAL RECYCLING<br>$845M<br>WE CONTINUE TO SEEK OPPORTUNITIES TO SELL OR RECAPITALIZE OUR RE<br>MAINING NON<br>-<br>CORE<br>ASSETS AT OR ABOVE NAV<br>$845M<br>(1)<br>closed in 2022<br>•<br>5.1% average cap rate<br>•<br>5.8% average cap rate on<br>commercial assets<br>•<br>$33 PSF on 2.5M SF of land<br>$400M+<br>of additional non<br>-<br>core<br>assets to be marketed in 2022,<br>subject to market conditions<br>$1.2B+<br>$400M+<br>(1) The $198M of proceeds from the sale of Pen Place to Amazon is not included in these amounts as it was contracted prior to<br>20<br>21. We expect that transaction to close in Q2 2022.
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ACCRETIVE INVESTMENT OPPORTUNITIES<br>REINVESTING CAPITAL INTO HIGH<br>-<br>MARGIN, HIGH<br>-<br>GROWTH OPPORTUNITIES<br>(1) Represents weighted average per share price of repurchases through April 29, 2022.<br>31<br>DEVELOPMENT<br>MULTIFAMILY<br>ACQUISITIONS<br>SHARE<br>REPURCHASES<br>•<br>Multifamily<br>–<br>6.5% historical average stabilized NOI yield<br>•<br>Office<br>–<br>7% historical average stabilized NOI yield; pre<br>-<br>lease dependent<br>•<br>13.2M shares repurchased at $28.40<br>(1)<br>totaling $375M<br>•<br>Targeting 3.75%<br>-<br>4.25% stabilized capitalization rates (3.5%<br>-<br>4.0% economic capitalization<br>rates)
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$780M<br>$1,075M<br>$705M<br>$950M<br>Estimated Total Project Cost<br>Estimated Realized Value<br>UNLOCKING VALUE THROUGH DEVELOPMENT SINCE FORMATION<br>MULTIFAMILY<br>DELIVERED<br>1,589 UNITS<br>MULTIFAMILY<br>WEIGHTED AVERAGE STABILIZED YIELD<br>6.5%<br>COMMERCIAL<br>DELIVERED<br>1.4M SF<br>COMMERCIAL<br>WEIGHTED AVERAGE STABILIZED YIELD<br>7.0%<br>(1) Represents Estimated Total Project Cost reported as of the quarter prior to delivery.<br>(2) Represents sales price for sold assets and assets under firm contract; reflects estimated market value based on comparabl<br>e s<br>ales for all other assets.<br>32<br>2.7M SF OF MIXED<br>-<br>USE DEVELOPMENT DELIVERED,<br>GENERATING OVER $500M OF VALUE CREATION<br>$1.5B<br>Commercial<br>Multifamily<br>(1)<br>(2)<br>$2.0B<br>4747 Bethesda Avenue (Delivered 2019)<br>1770 Crystal Drive (Delivered 2020)<br>901 W Street (Delivered 2019)<br>West Half (Delivered 2019)<br>VALUE CREATION
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1,583<br>-<br>UNIT MULTIFAMILY PIPELINE UNDER CONSTRUCTION IN NATIONAL L<br>ANDING<br>ESTIMATED TOTAL<br>INVESTMENT<br>(1)<br>$743M<br>ESTIMATED INCREMENTAL<br>INVESTMENT<br>$569M<br>WEIGHTED AVERAGE<br>PROJECTED NOI YIELD<br>(2)<br>6.0%<br>ESTIMATED<br>STABILIZED NOI<br>$44M<br>WEIGHTED AVERAGE<br>STABILIZATION DATE<br>2H 2026<br>(1) Estimated Total Investment for 1900 Crystal Drive excludes $22.6M of design costs, the majority of which were incurred pr<br>ior<br>to the Formation Transaction, that are not related to the current planned development.<br>(2) Yield based on Estimated Total Investment,<br>excluding $22.6M of design costs related to 1900 Crystal Drive, the majority of which were incurred prior to the Formation Tr<br>ans<br>action, that are not related to the current planned development<br>..<br>(3) Assumes under<br>-<br>construction assets generates a 6.0% stabilized NOI yield and the resulting NOI is valued at a forward market<br>capitalization rate of 4.5%.<br>33<br>1900 Crystal Drive<br>2000/2001 South<br>Bell Street<br>UNITS<br>808 units<br>775 units<br>RETAIL SF<br>38K+ SF<br>19K+ SF<br>ESTIMATED<br>COMPLETION<br>Q1 2024<br>–<br>Q3 2024<br>Q1 2025<br>–<br>Q3 2025<br>ESTIMATED<br>STABILIZATION<br>Q1 2026<br>Q4 2026<br>UNDER<br>-<br>CONSTRUCTION PIPELINE REPRESENTS A SIGNIFICANT SOURCE OF FUTURE NAV GROWTH<br>Estimated Total Investment<br>Estimated Stabilized Value<br>$743M<br>$983M<br>DEVELOPMENT UNDER CONSTRUCTION<br>ILLUSTRATIVE VALUE CREATION<br>(1)<br>(3)
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STRONG TRACK RECORD OF UNLOCKING VALUE THROUGH VARIOUS MONETIZAT<br>ION ALTERNATIVES<br>(1) Represents Historical Cost reported as of the quarter prior to sale or ground lease execution. If asset has not yet been<br>sol<br>d, reflects Historical Cost as of 3/31/2022. For Joint Ventures, represents JBG SMITH's basis in the land prior to<br>recapitalization multiplied by the percent recapitalized.<br>(2) Represents sales price for land sales, contract price for land sales that are under firm contract, estimated value for gr<br>oun<br>d leases, and estimated land value for joint ventures.<br>34<br>VALUE CREATION SINCE FORMATION<br>$222M<br>$429M<br>$36M<br>$42M<br>$95M<br>$184M<br>Historical Cost<br>Realized Value<br>(1)<br>(2)<br>Land Sale<br>Joint Venture<br>Ground Lease<br>$353M<br>$655M<br>Metropolitan Park and<br>Pen Place (<br>Helix rendering)<br>1900 N Street<br>1700 M Street<br>(rendering)<br>LAND SALE<br>JOINT VENTURE<br>GROUND LEASE<br>SELECT MONETIZATION ALTERNATIVES<br>EXECUTED SINCE FORMATION<br>OVER $300M OF VALUE CREATED SINCE FORMATION<br>THROUGH LAND SALES, JOINT VENTURES AND GROUND LEASES
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ADVANCING THE ENTITLEMENTS OF OUR DEVELOPMENT PIPELINE IS CRITIC<br>AL TO UNLOCKING AND MONETIZING VALUE<br>35<br>IN ADDITION TO DEVELOPMENT, WE CAN MONETIZE OUR LAND BANK THROUGH OPPORTUNISTIC<br>LAND SALES, GROUND LEASES AND/OR RECAPITALIZATIONS<br>Note: Excludes non<br>-<br>core land assets<br>in light of our plans to dispose them<br>..<br>(1) We expect our Development Pipeline to be 100% entitled by 2024.<br>TOTAL<br>DENSITY<br>8.6M SF<br>NATIONAL LANDING<br>DENSITY<br>6.5M SF<br>MULTIFAMILY<br>CONCENTRATION<br>84%<br>% ENTITLED<br>BY 2024<br>(1)<br>100%<br>Near<br>-<br>Term<br>Development<br>3.5M SF<br>Office<br>16%<br>Multifamily<br>84%<br>DEVELOPMENT PIPELINE<br>COMPOSITION<br>DEVELOPMENT PIPELINE<br>ENTITLEMENT STATUS<br>Fully Entitled<br>28%<br>Entitlement in<br>Process<br>72%
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NOI BRIDGE AND LIQUIDITY
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Q1 2022 Annualized NOI<br>2022 Capital Recycling<br>Growth from Operating<br>Portfolio<br>Growth from Under-<br>Construction Assets<br>Q4 2026 Annualized NOI<br>ESTIMATED NOI BRIDGE<br>~$101M OF INCREMENTAL ANNUALIZED<br>NOI<br>BY YEAR<br>-<br>END 2026, EXCLUDING VALUE CREATION FROM<br>MONETIZATION OF 8.6M SF DEVELOPMENT PIPELINE<br>Note: This is a hypothetical presentation of potential near<br>-<br>term NOI from the delivery and stabilization of our Under<br>-<br>Constructi<br>on assets and the stabilization of our Operating Portfolio and is dependent on numerous assumptions, which may<br>not be accurate. Actual future NOI may differ materially from this hypothetical potential near<br>-<br>term NOI. Please see the forward<br>-<br>looking statements disclaimer in this presentation for a discussion of some of the risks that could cause actual<br>results to differ materially from any projected or estimated results.<br>(1) As of Q1 2022, adjusting for assets sold or recapitalized year<br>-<br>to<br>-<br>date.<br>(2) Includes two multifamily assets currently under construction (1900 Crystal Drive and 2000/2001 South Bell Street).<br>37<br>Q4 2026E<br>Total Portfolio CAGR<br>7.6%<br>Operating Portfolio NOI CAGR<br>5.2%<br>Weighted Average Mark<br>-<br>to<br>-<br>Market on Office Rents<br>5.0%<br>Office Occupancy<br>93.0%<br>Multifamily Occupancy<br>95.0%<br>Market Rent CAGR<br>2.5%<br>ASSUMPTIONS<br>(1)<br>(2)<br>ASSUMES<br>$15M<br>from multifamily lease up and in<br>-<br>place rent recovery by YE 2022<br>$20M<br>from lease up of office portfolio<br>$46M<br>from rental revenue growth<br>$324M<br>($24M)<br>$81M<br>$44M<br>$425M<br>Multifamily<br>Office
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STRONG BALANCE SHEET TO FUND FUTURE GROWTH<br>ACCESS TO MULTIPLE SOURCES OF CAPITAL<br>(1) Adjusted for mortgages repaid and net proceeds from the sales and recapitalizations which closed subsequent to quarter en<br>d,<br>and $198M of gross proceeds from the sale of Pen Place that is expected to close in Q2 2022.<br>(2) Total Enterprise Value is based on closing price per share of $29.22 as of March 31, 2022.<br>(3) Adjusted for the repayment of $210M on our revolving credit facility in April 2022.<br>(4) Adjusted for interest rate caps, where applicable, on floating rate debt. Excluding the interest rate caps, our Fixed Ra<br>te<br>Debt Ratio was 55%.<br>38<br>SIGNIFICANT ACCESS TO CAPITAL<br>2<br>Secured and Unsecured Debt<br>3<br>Strategic Capital Recycling<br>4<br>Selective Joint Ventures<br>$1.5B of Liquidity<br>1<br>Net Debt<br>30.1%<br>Equity<br>69.9%<br>LEVERAGE METRICS<br>(1)<br>Net Debt/Total Enterprise Value: 30.1%<br>(2)<br>Net Debt/Annualized Adjusted EBITDA: 7.6x<br>Fixed Rate Debt: 85.7%<br>(3)(4)<br>Secured Debt: 80.2%<br>(3)<br>$1.5B TOTAL LIQUIDITY<br>Cash: $208M<br>Undrawn Credit Facility: $700M<br>Estimated Multifamily Borrowing Capacity: ~$640M<br>CAPITAL STRUCTURE<br>(1)
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$64M<br>$169M<br>$127M<br>$391M<br>$105M<br>$130M<br>$85M<br>$385M<br>$130M<br>$110M<br>$116M<br>$175M<br>$200M<br>$200M<br>$90M<br>2022<br>2023<br>2024<br>2025<br>2026<br>2027<br>2028<br>2029+<br>LEVERAGE PROFILE SUPPORTS LONG<br>-<br>TERM VALUE CREATION<br>LEVERAGE LEVELS WILL FLUCTUATE AS NEWLY DELIVERED ASSETS LEASE<br>-<br>U<br>P AND STABILIZE, AND<br>DEVELOPMENT ACTIVITY INCREASES<br>(1) Adjusted for the mortgages repaid due to sales and recapitalizations and $210M repayment on our revolving credit facility<br>su<br>bsequent to quarter end.<br>(2) For floating rate loans with interest rate caps, the weighted average cap strike is 2.51% for consolidated debt, and 2.70<br>% f<br>or all debt. The interest rate cap strike is exclusive of the credit spreads associated with the loans.<br>39<br>WELL<br>-<br>STAGGERED DEBT MATURITY<br>SCHEDULE<br>(1)<br>Secured Debt (Non<br>-<br>Core)<br>Secured Debt (Core)<br>Term Loans<br>Weighted Avg. Cost of Debt: 3.2%<br>(2)<br>Weighted Avg. Debt Maturity: 3.7 years<br>•<br>Our long<br>-<br>term leverage targets remain unchanged:<br>◦<br>25% to 35% Net Debt/Total Enterprise Value<br>◦<br>6x to 7x Net Debt/ Annualized Adjusted EBITDA<br>•<br>Leverage levels may increase during periods of active<br>development, with peak levels in the mid<br>-<br>8x’s<br>•<br>Proceeds from ongoing capital recycling may be used<br>to de<br>-<br>lever<br>Credit Facility ($910M available)
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WHAT’S NEXT FOR JBG SMITH?<br>40<br>Complete capital recycling of non<br>-<br>core office and land assets<br>1<br>2<br>4<br>5<br>Complete repositioning of National Landing, including digital infrastructure rollout<br>3<br>Lease<br>-<br>up operating portfolio, capitalizing on technology<br>-<br>driven tailwinds from National Landing<br>demand catalysts<br>Deliver and stabilize multifamily development in National Landing<br>Continue to lead our industry in ESG
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APPENDIX
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JBG SMITH TODAY<br>Note: Data is as of Q1 2022, adjusting for assets sold or recapitalized year<br>-<br>to<br>-<br>date.<br>(1) Based on In<br>-<br>Service portfolio excluding newly developed and acquired assets.<br>(2) Total Enterprise Value is based on closing price per share of $29.22 as of March 31, 2022.<br>(3) Net debt to total enterprise value and net debt to annualized Adjusted EBITDA adjusted for net proceeds from the sales an<br>d r<br>ecapitalizations which closed subsequent to quarter end and $198M of gross proceeds from the sale of Pen Place that<br>is expected to close in Q2 2022.<br>42<br>OPERATING PORTFOLIO<br>COMMERCIAL SF<br>MULTIFAMILY UNITS<br>9.0M<br>6,502<br>Q1 2022<br>ANNUALIZED NOI<br>$323.8M<br>LEASED IN<br>-<br>SERVICE PORTFOLIO<br>DEVELOPMENT PIPELINE<br>UNDER<br>-<br>CONSTRUCTION<br>1,583 UNITS<br>NEAR<br>-<br>TERM DEVELOPMENT PIPELINE<br>0.2M<br>FUTURE<br>DEVELOPMENT PIPELINE<br>6.3M SF<br>3,605<br>COMMERCIAL SF<br>MULTIFAMILY UNITS<br>BALANCE SHEET<br>NET DEBT/TOTAL<br>ENTERPRISE VALUE<br>(2)(3)<br>30.1%<br>Water Park rendering (National Landing)<br>96.7%<br>WEIGHTED AVERAGE<br>LEASE TERM<br>5.9 YEARS<br>NET DEBT/ANNUALIZED<br>ADJUSTED EBITDA<br>(3)<br>7.6x<br>COMMERCIAL<br>MULTIFAMILY<br>(1)<br>87.0%
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NATIONAL LANDING<br>Amazon<br>Commercial Operating<br>Development Pipeline<br>Multifamily Operating<br>and Under<br>-<br>Construction<br>PENTAGON + DEPARTMENT<br>OF DEFENSE<br>VIRGINIA TECH<br>AMAZON HQ2<br>56%<br>Control of commercial operating<br>(1)<br>6.2M<br>SF of commercial operating<br>29%<br>Control of multifamily operating<br>and under construction<br>(2)<br>4.2K<br>Units of multifamily operating<br>and under construction<br>77%<br>Control of developable land<br>(3)<br>7.5M<br>SF of developable land<br>JBG SMITH SCALE AND REACH<br>(1) Source: CoStar.<br>(2) Source: CoStar.<br>(3) Source: National Landing Business Improvement District.<br>43
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JBG<br>SMITH CONCENTRATED IN NATIONAL LANDING<br>A NATIONAL LANDING<br>-<br>FOCUSED COMPANY WITH MULTIFAMILY CONCENTRATED<br>IN HIGH<br>-<br>GROWTH,<br>AMENITY<br>-<br>RICH, PROXIMATE SUBMARKETS<br>44<br>(1) Represents “Future” state and includes operating portfolio, under<br>-<br>construction assets and Development Pipeline and excludes<br>all non<br>-<br>core assets, in light of our plans to dispose them.<br>Note: Size of spheres based on square footage.<br>FUTURE JBGS PORTFOLIO<br>(1)<br>70%+<br>CONCENTRATED IN NATIONAL LANDING<br>96%<br>WITHIN A<br>20<br>-<br>MINUTE COMMUTE OF<br>NATIONAL LANDING<br>100%<br>METRO<br>-<br>SERVED<br>87<br>WALK SCORE<br>Multifamily<br>Commercial
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TRANSFORMATIVE RETAIL PLACEMAKING ADVANCEMENTS PLANNED IN NATION<br>AL LANDING<br>45<br>PLANNED RETAIL DELIVERIES OVER THE NEXT THREE YEARS WILL ALMOST<br>TRIPLE THE NUMBER OF STREET<br>-<br>LEVEL RETAILERS<br>✓<br>55<br>new street<br>-<br>level retailers<br>in National Landing<br>◦<br>65%+<br>open in next 12 months<br>◦<br>100%<br>open by year<br>-<br>end 2024<br>✓<br>Approximately<br>40 new restaurants and bars<br>, in addition to<br>2 new grocers<br>and<br>a<br>theater<br>✓<br>Over<br>60% women<br>-<br>and minority<br>-<br>owned<br>CENTRAL DISTRICT<br>RETAIL<br>(COMPLETED)<br>DINING IN THE PARK<br>RENDERING<br>(2023 DELIVERY)<br>WATER PARK<br>RENDERING<br>(2023 DELIVERY)<br>1900 CRYSTAL DRIVE<br>RENDERING<br>(2024 DELIVERY)<br>METROPOLITAN PARK<br>RENDERING<br>(2023 DELIVERY)
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NATIONAL LANDING PHYSICAL INFRASTRUCTURE PROJECTS<br>Note: Delivery dates reflect JBG SMITH’s estimate and are subject to change.<br>46<br>$6B OF FULLY COMMITTED PHYSICAL INFRASTRUCTURE PROJECTS PLANNED BY STATE AND LOCAL<br>GOVERNMENTS<br>MULTI<br>-<br>MODAL TRANSIT HUB<br>(2025 DELIVERY)<br>ROUTE 1 AT GRADE<br>(2028 DELIVERY)<br>POTOMAC YARD METRO STATION SOUTH ENTRANCE<br>(2022 DELIVERY)<br>LONG BRIDGE EXPANSION<br>(2030 DELIVERY)<br>CRYSTAL CITY METRO STATION EAST ENTRANCE<br>(2025 DELIVERY)<br>PEDESTRIAN BRIDGE TO DCA<br>(2028 DELIVERY)
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NATIONAL LANDING MARKET RESEARCH: ANTICIPATED RENT GROWTH<br>47<br>(AS OF APRIL 2022)<br>(AS OF APRIL 2022)<br>(AS OF APRIL 2022)<br>(AS OF<br>MAY<br>2022)<br>SOURCE<br>ANNUALIZED OFFICE<br>MARKET RENT GROWTH<br>(Q1 2022<br>–<br>Q4 2026)<br>ANNUALIZED MULTIFAMILY<br>MARKET RENT GROWTH<br>(Q1 2022<br>–<br>Q4 2026)<br>2.5%<br>2.5%<br>3.5%<br>--<br>2.6%<br>--<br>2.4%<br>3.6%<br>--<br>3.0%
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EXECUTIVE TEAM<br>48<br>Executive Vice Presidents<br>Management<br>Tiffany Butcher<br>Residential and<br>Retail Asset<br>Management<br>Bryan Moll<br>Development<br>Evan Regan<br>-<br>Levine<br>Strategic Innovation<br>and Research<br>Donna Wagner<br>Tax<br>AJ Jackson<br>Social Impact<br>Investing<br>Edward Chaglassian<br>Acquisitions<br>Anthony Greenberg<br>Development<br>David Ritchey<br>Commercial Leasing<br>and Asset<br>Management<br>Jeremy Poteet<br>Technology and<br>Information<br>David P. Paul<br>President and Chief<br>Operating Officer<br>Matt Kelly<br>Chief Executive<br>Officer<br>Kai Reynolds<br>Chief Development<br>Officer<br>Moina Banerjee<br>Chief Financial<br>Officer<br>Steven A. Museles<br>Chief Legal<br>Officer<br>George Xanders<br>Chief Investment<br>Officer<br>Patrick Tyrrell<br>Chief Administrative<br>Officer<br>Angela Valdes<br>Chief Accounting<br>Officer<br>Carey Goldberg<br>Chief Human<br>Resources Officer<br>Kristi Smith<br>Development
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NATIONAL LANDING DEVELOPMENT PIPELINE
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NATIONAL LANDING NEAR<br>-<br>TERM DEVELOPMENT PIPELINE<br>Amazon<br>Virginia Tech Innovation Campus<br>Development Pipeline<br>5<br>6<br>2<br>3<br>4<br>1<br>Property<br>Use Type<br>Density (SF)<br>Ownership %<br>Entitled?<br>101 12<br>th<br>Street<br>Office<br>240K<br>100%<br>Fully Entitled<br>2250 Crystal Drive<br>Multifamily<br>677K<br>100%<br>In<br>-<br>Process<br>223 23<br>rd<br>Street<br>Multifamily<br>513K<br>100%<br>In<br>-<br>Process<br>2525 Crystal Drive<br>Multifamily<br>370K<br>100%<br>In<br>-<br>Process<br>1<br>2<br>3<br>4<br>Property<br>Use Type<br>Density (SF)<br>Ownership %<br>Entitled?<br>Potomac Yard LBF<br>Block 15<br>Multifamily<br>91K<br>50%<br>Fully Entitled<br>Potomac Yard LBF<br>Block 19<br>Multifamily<br>119K<br>50%<br>Fully Entitled<br>5<br>6<br>50
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NATIONAL LANDING FUTURE DEVELOPMENT PIPELINE<br>Amazon<br>Virginia Tech Innovation Campus<br>Development Pipeline<br>1<br>1<br>2<br>3<br>4<br>5<br>6<br>7<br>8<br>4<br>Property<br>Use Type<br>Density (SF)<br>Ownership %<br>Entitled?<br>RiverHouse Land<br>Multifamily<br>1.9M<br>100%<br>In<br>-<br>Process<br>1800 South Bell St. Land<br>Office<br>245K<br>100%<br>In<br>-<br>Process<br>Americana Site<br>Multifamily<br>550K<br>100%<br>In<br>-<br>Process<br>Potomac Yard LBG & H<br>Office<br>Multifamily<br>418K<br>939K<br>LBG<br>–<br>50%<br>LBH<br>–<br>100%<br>In<br>-<br>Process<br>1<br>2<br>3<br>4<br>Property<br>Use Type<br>Density (SF)<br>Ownership %<br>Entitled?<br>Potomac Yard LBF<br>Block 10<br>Office<br>138K<br>50%<br>Fully Entitled<br>Potomac Yard LBF<br>Block 14<br>Office<br>138K<br>50%<br>Fully Entitled<br>Potomac Yard LBF<br>Block 18<br>Office<br>91K<br>50%<br>Fully Entitled<br>Potomac Yard LBF<br>Block 20<br>Office<br>84K<br>50%<br>Fully Entitled<br>5<br>6<br>7<br>8<br>51
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DEFINITIONS<br>CARBON NEUTRAL<br>“Carbon Neutral” means that any Scope 1 or Scope 2 carbon emissions released into the atmosphere from JBG SMITH’s building op<br>era<br>tions is balanced by an equivalent amount being removed. Scope 1<br>emissions represent natural gas consumed on<br>-<br>site by operating assets. Scope 2 emissions represent purchased electricity consumed<br>on<br>-<br>site by operating assets. To date, our Carbon Neutral achievement has<br>been met via verified carbon offsets and Green<br>-<br>e Certified renewable energy credits purchased and retired.<br>DEVELOPMENT PIPELINE<br>"Development Pipeline" refers collectively to the Near<br>-<br>Term Development and Future Development Pipelines.<br>EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (<br>"EBITDA"), EBITDA FOR REAL ESTATE ("EBITDARE")<br>AND "ADJUSTED EBITDA"<br>Earnings<br>Before<br>Interest,<br>Taxes,<br>Depreciation<br>and<br>Amortization<br>("EBITDA"),<br>EBITDA<br>for<br>Real<br>Estate<br>("EBITDAre")<br>and<br>"Adjusted<br>EBITDA"<br>are<br>non<br>-<br>GAAP<br>financial<br>measures<br>..<br>EBITDA<br>and<br>EBITDAre<br>are<br>used<br>by<br>management<br>as<br>supplemental<br>operating<br>performance<br>measures,<br>which<br>we<br>believe<br>help<br>investors<br>and<br>lenders<br>meaningfully<br>evaluate<br>and<br>compare<br>our<br>operating<br>performance<br>from<br>period<br>-<br>to<br>-<br>period<br>by<br>removing<br>from<br>our<br>operating<br>results<br>the<br>impact<br>of<br>our<br>capital<br>structure<br>(primarily<br>interest<br>charges<br>from<br>our<br>outstanding<br>debt<br>and<br>the<br>impact<br>of<br>our<br>interest<br>rate<br>swaps)<br>and<br>certain<br>non<br>-<br>cash<br>expenses<br>(primarily<br>depreciation<br>and<br>amortization<br>on<br>our<br>assets)<br>..<br>EBITDAre<br>is<br>computed<br>in<br>accordance<br>with<br>the<br>definition<br>established<br>by<br>Nareit<br>..<br>Nareit<br>defines<br>EBITDAre<br>as<br>GAAP<br>net<br>income<br>(loss)<br>adjusted<br>to<br>exclude<br>interest<br>expense,<br>income<br>taxes,<br>depreciation<br>and<br>amortization<br>expenses,<br>gains<br>and<br>losses<br>on<br>sales<br>of<br>real<br>estate<br>and<br>impairment<br>write<br>-<br>downs<br>of<br>certain<br>real<br>estate<br>assets<br>and<br>investments<br>in<br>entities<br>when<br>the<br>impairment<br>is<br>directly<br>attributable<br>to<br>decreases<br>in<br>the<br>value<br>of<br>depreciable<br>real<br>estate<br>held<br>by<br>the<br>entity,<br>including<br>our<br>share<br>of<br>such<br>adjustments<br>of<br>unconsolidated<br>real<br>estate<br>ventures<br>..<br>These<br>supplemental<br>measures<br>may<br>help<br>investors<br>and<br>lenders<br>understand<br>our<br>ability<br>to<br>incur<br>and<br>service<br>debt<br>and<br>to<br>make<br>capital<br>expenditures<br>..<br>EBITDA<br>and<br>EBITDAre<br>are<br>not<br>substitutes<br>for<br>net<br>income<br>(loss)<br>(computed<br>in<br>accordance<br>with<br>GAAP)<br>and<br>may<br>not<br>be<br>comparable<br>to<br>similarly<br>titled<br>measures<br>used<br>by<br>other<br>companies<br>..<br>Adjusted<br>EBITDA<br>represents<br>EBITDAre<br>adjusted<br>for<br>items<br>we<br>believe<br>are<br>not<br>representative<br>of<br>ongoing<br>operating<br>results,<br>such<br>as<br>Transaction<br>and<br>Other<br>Costs,<br>impairment<br>write<br>-<br>downs<br>of<br>right<br>-<br>of<br>-<br>use<br>assets<br>associated<br>with<br>leases<br>in<br>which<br>we<br>are<br>a<br>lessee,<br>gain<br>(loss)<br>on<br>the<br>extinguishment<br>of<br>debt,<br>earnings<br>(losses)<br>and<br>distributions<br>in<br>excess<br>of<br>our<br>investment<br>in<br>unconsolidated<br>real<br>estate<br>ventures,<br>lease<br>liability<br>adjustments,<br>income<br>from<br>investments,<br>business<br>interruption<br>insurance<br>proceeds<br>and<br>share<br>-<br>based<br>compensation<br>expense<br>related<br>to<br>the<br>Formation<br>Transaction<br>and<br>special<br>equity<br>awards<br>..<br>We<br>believe<br>that<br>adjusting<br>such<br>items<br>not<br>considered<br>part<br>of<br>our<br>comparable<br>operations,<br>provides<br>a<br>meaningful<br>measure<br>to<br>evaluate<br>and<br>compare<br>our<br>performance<br>from<br>period<br>-<br>to<br>-<br>period<br>..<br>Because<br>EBITDA,<br>EBITDAre<br>and<br>Adjusted<br>EBITDA<br>have<br>limitations<br>as<br>analytical<br>tools,<br>we<br>use<br>EBITDA,<br>EBITDAre<br>and<br>Adjusted<br>EBITDA<br>to<br>supplement<br>GAAP<br>financial<br>measures<br>..<br>Additionally,<br>we<br>believe<br>that<br>users<br>of<br>these<br>measures<br>should<br>consider<br>EBITDA,<br>EBITDAre<br>and<br>Adjusted<br>EBITDA<br>in<br>conjunction<br>with<br>net<br>income<br>(loss)<br>and<br>other<br>GAAP<br>measures<br>in<br>understanding<br>our<br>operating<br>results<br>..<br>A<br>reconciliation<br>of<br>net<br>income<br>(loss)<br>to<br>EBITDA,<br>EBITDAre<br>and<br>Adjusted<br>EBITDA<br>is<br>presented<br>on<br>page<br>57<br>..<br>ESTIMATED INCREMENTAL INVESTMENT<br>"Estimated<br>Incremental<br>Investment"<br>means<br>management's<br>estimate<br>of<br>the<br>remaining<br>cost<br>to<br>be<br>incurred<br>in<br>connection<br>with<br>the<br>development<br>of<br>an<br>asset<br>as<br>of<br>March<br>31<br>,<br>2022<br>,<br>including<br>all<br>remaining<br>acquisition<br>costs,<br>hard<br>costs,<br>soft<br>costs,<br>tenant<br>improvements<br>(excluding<br>Free<br>Rent<br>converted<br>to<br>tenant<br>improvement<br>allowances),<br>leasing<br>costs<br>and<br>other<br>similar<br>costs<br>to<br>develop<br>and<br>stabilize<br>the<br>asset<br>but<br>excluding<br>any<br>financing<br>costs<br>and<br>ground<br>rent<br>expenses<br>..<br>Actual<br>incremental<br>investment<br>may<br>differ<br>substantially<br>from<br>our<br>estimates<br>due<br>to<br>numerous<br>factors,<br>including<br>unanticipated<br>expenses,<br>delays<br>in<br>the<br>estimated<br>start<br>and/or<br>completion<br>date,<br>changes<br>in<br>design<br>and<br>other<br>contingencies<br>..<br>ESTIMATED POTENTIAL DEVELOPMENT DENSITY<br>"Estimated<br>Potential<br>Development<br>Density"<br>reflects<br>management's<br>estimate<br>of<br>developable<br>gross<br>square<br>feet<br>based<br>on<br>our<br>current<br>business<br>plans<br>with<br>respect<br>to<br>real<br>estate<br>owned<br>or<br>controlled<br>as<br>of<br>March<br>31<br>,<br>2022<br>..<br>Our<br>current<br>business<br>plans<br>may<br>contemplate<br>development<br>of<br>less<br>than<br>the<br>maximum<br>potential<br>development<br>density<br>for<br>individual<br>assets<br>..<br>As<br>market<br>conditions<br>change,<br>our<br>business<br>plans,<br>and<br>therefore,<br>the<br>Estimated<br>Potential<br>Development<br>Density,<br>could<br>change<br>accordingly<br>..<br>Given<br>timing,<br>zoning<br>requirements<br>and<br>other<br>factors,<br>we<br>make<br>no<br>assurance<br>that<br>Estimated<br>Potential<br>Development<br>Density<br>amounts<br>will<br>become<br>actual<br>density<br>to<br>the<br>extent<br>we<br>complete<br>development<br>of<br>assets<br>for<br>which<br>we<br>have<br>made<br>such<br>estimates<br>..<br>52
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DEFINITIONS<br>ESTIMATED TOTAL INVESTMENT<br>"Estimated<br>Total<br>Investment"<br>means,<br>with<br>respect<br>to<br>the<br>development<br>of<br>an<br>asset,<br>the<br>sum<br>of<br>the<br>Historical<br>Cost<br>in<br>such<br>asset<br>and<br>the<br>Estimated<br>Incremental<br>Investment<br>for<br>such<br>asset<br>..<br>Actual<br>total<br>investment<br>may<br>differ<br>substantially<br>from<br>our<br>estimates<br>due<br>to<br>numerous<br>factors,<br>including<br>unanticipated<br>expenses,<br>delays<br>in<br>the<br>estimated<br>start<br>and/or<br>completion<br>date,<br>changes<br>in<br>design<br>and<br>other<br>contingencies<br>..<br>For<br>Future<br>Development<br>assets,<br>Estimated<br>Total<br>Investment<br>represents<br>historical<br>cost<br>plus<br>incremental<br>costs<br>to<br>access<br>the<br>Estimated<br>Potential<br>Development<br>Density,<br>but<br>does<br>not<br>include<br>potential<br>entitlement<br>costs<br>or<br>infrastructure<br>costs<br>..<br>ESTIMATED TOTAL PROJECT COST<br>"Estimated Total Project Cost" is estimated total investment excluding purchase price allocation adjustments recognized as a<br>res<br>ult of the Formation Transaction. Actual Total Project Cost may differ<br>substantially from our estimates due to numerous factors, including unanticipated expenses, delays in the estimated start and<br>/or<br>completion date, changes in design and other contingencies.<br>FORMATION TRANSACTION<br>"Formation Transaction" refers collectively to the spin<br>-<br>off on July 17, 2017 of substantially all of the assets and liabilities<br>of Vornado Realty Trust's Washington, DC segment, which operated as Vornado / Charles<br>E. Smith, and the acquisition of the management business and certain assets and liabilities of The JBG Companies.<br>FREE RENT<br>“Free rent” means the amount of base rent and tenant reimbursements that are abated according to the applicable lease agreeme<br>nt(<br>s).<br>FUTURE DEVELOPMENT PIPELINE<br>"Future Development Pipeline" refers to assets that are development opportunities on which we do not intend to commence const<br>ruc<br>tion within the next three years where we (i) own land or control the land<br>through a ground lease or (ii) are under a long<br>-<br>term conditional contract to purchase, or enter into, a leasehold interest with<br>respect to land.<br>GAAP<br>"GAAP" means accounting principles generally accepted in the United States.<br>HISTORICAL COST<br>"Historical Cost" is a non<br>-<br>GAAP measure which includes the total Historical Cost incurred by JBG SMITH with respect to the devel<br>opment of an asset, including any acquisition costs, hard costs, soft costs, tenant<br>improvements (excluding Free Rent converted to tenant improvement allowances), leasing costs and other similar costs, but exc<br>lud<br>ing any financing costs and ground rent expenses incurred as of March 31,<br>2022.<br>IN<br>-<br>SERVICE<br>"In<br>-<br>Service" refers to commercial or multifamily operating assets that are at or above 90% leased or have been operating and col<br>lecting rent for more than 12 months as of March 31, 2022.<br>JBG SMITH SHARE<br>"JBG SMITH Share" or "our share" refers to our ownership percentage of consolidated and unconsolidated assets in real estate<br>ven<br>tures.<br>53
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DEFINITIONS<br>LIQUIDITY<br>“Liquidity”<br>refers<br>to<br>the<br>sum<br>of<br>cash,<br>undrawn<br>amounts<br>available<br>under<br>our<br>credit<br>facility<br>and<br>management’s<br>estimated<br>borrowing<br>capacity<br>on<br>our<br>unencumbered<br>multifamily<br>assets<br>..<br>We<br>can<br>provide<br>no<br>assurance<br>that<br>we<br>would<br>be<br>successful<br>in<br>securing<br>the<br>proceeds<br>of<br>such<br>potential<br>borrowing<br>capacity<br>on<br>attractive<br>terms<br>or<br>at<br>all<br>..<br>The<br>way<br>we<br>calculate<br>liquidity<br>is<br>not<br>comparable<br>to<br>the<br>liquidity<br>measures<br>presented<br>by<br>other<br>companies<br>..<br>METRO<br>-<br>SERVED<br>"Metro<br>-<br>Served" means locations, submarkets or assets that are within 0.5 miles of an existing or planned Metro station.<br>NEAR<br>-<br>TERM DEVELOPMENT PIPELINE<br>"Near<br>-<br>Term<br>Development<br>Pipeline"<br>refers<br>to<br>select<br>assets<br>that<br>have<br>the<br>potential<br>to<br>commence<br>construction<br>over<br>the<br>next<br>three<br>years,<br>subject<br>to<br>receipt<br>of<br>full<br>entitlements,<br>completion<br>of<br>design<br>and<br>market<br>conditions<br>..<br>NET DEBT<br>"Net<br>Debt"<br>is<br>a<br>non<br>-<br>GAAP<br>financial<br>measurement<br>..<br>Net<br>Debt<br>represents<br>our<br>total<br>consolidated<br>and<br>unconsolidated<br>indebtedness<br>less<br>cash<br>and<br>cash<br>equivalents<br>at<br>our<br>share<br>..<br>Net<br>Debt<br>is<br>an<br>important<br>component<br>in<br>the<br>calculations<br>of<br>Net<br>Debt<br>to<br>Annualized<br>Adjusted<br>EBITDA<br>and<br>Net<br>Debt<br>/<br>total<br>enterprise<br>value<br>..<br>We<br>believe<br>that<br>Net<br>Debt<br>is<br>a<br>meaningful<br>non<br>-<br>GAAP<br>financial<br>measure<br>useful<br>to<br>investors<br>because<br>we<br>review<br>Net<br>Debt<br>as<br>part<br>of<br>the<br>management<br>of<br>our<br>overall<br>financial<br>flexibility,<br>capital<br>structure<br>and<br>leverage<br>..<br>We<br>may<br>utilize<br>a<br>considerable<br>portion<br>of<br>our<br>cash<br>and<br>cash<br>equivalents<br>at<br>any<br>given<br>time<br>for<br>purposes<br>other<br>than<br>debt<br>reduction<br>..<br>In<br>addition,<br>cash<br>and<br>cash<br>equivalents<br>at<br>our<br>share<br>may<br>not<br>be<br>solely<br>controlled<br>by<br>us<br>..<br>The<br>deduction<br>of<br>cash<br>and<br>cash<br>equivalents<br>at<br>our<br>share<br>from<br>consolidated<br>and<br>unconsolidated<br>indebtedness<br>in<br>the<br>calculation<br>of<br>Net<br>Debt,<br>therefore,<br>should<br>not<br>be<br>understood<br>to<br>mean<br>that<br>it<br>is<br>available<br>exclusively<br>for<br>debt<br>reduction<br>at<br>any<br>given<br>time<br>..<br>See<br>“Disposition<br>and<br>Recapitalization<br>Activity<br>Subsequent<br>to<br>March<br>31<br>,<br>2022<br>–<br>Adjustment<br>of<br>Calculations”<br>for<br>an<br>explanation<br>of<br>a<br>current<br>adjustment<br>to<br>our<br>Net<br>Debt<br>calculation<br>..<br>54
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DEFINITIONS<br>NET OPERATING INCOME ("NOI"), "ANNUALIZED NOI", "ESTIMATED STABI<br>LIZED NOI" AND "PROJECTED NOI YIELD"<br>Net<br>Operating<br>Income<br>("NOI"),<br>"Annualized<br>NOI",<br>"Estimated<br>Stabilized<br>NOI"<br>and<br>"Projected<br>NOI<br>Yield"<br>are<br>non<br>-<br>GAAP<br>financial<br>measures<br>management<br>uses<br>to<br>assess<br>a<br>segment's<br>performance<br>..<br>The<br>most<br>directly<br>comparable<br>GAAP<br>measure<br>is<br>net<br>income<br>(loss)<br>attributable<br>to<br>common<br>shareholders<br>..<br>We<br>use<br>NOI<br>internally<br>as<br>a<br>performance<br>measure<br>and<br>believe<br>NOI<br>provides<br>useful<br>information<br>to<br>investors<br>regarding<br>our<br>financial<br>condition<br>and<br>results<br>of<br>operations<br>because<br>it<br>reflects<br>only<br>property<br>related<br>revenue<br>(which<br>includes<br>base<br>rent,<br>tenant<br>reimbursements<br>and<br>other<br>operating<br>revenue,<br>net<br>of<br>Free<br>Rent<br>and<br>payments<br>associated<br>with<br>assumed<br>lease<br>liabilities)<br>less<br>operating<br>expenses<br>and<br>ground<br>rent<br>for<br>operating<br>leases,<br>if<br>applicable<br>..<br>NOI<br>also<br>excludes<br>deferred<br>rent,<br>related<br>party<br>management<br>fees,<br>interest<br>expense,<br>and<br>certain<br>other<br>non<br>-<br>cash<br>adjustments,<br>including<br>the<br>accretion<br>of<br>acquired<br>below<br>-<br>market<br>leases<br>and<br>the<br>amortization<br>of<br>acquired<br>above<br>-<br>market<br>leases<br>and<br>below<br>-<br>market<br>ground<br>lease<br>intangibles<br>..<br>Management<br>uses<br>NOI<br>as<br>a<br>supplemental<br>performance<br>measure<br>of<br>our<br>assets<br>and<br>believes<br>it<br>provides<br>useful<br>information<br>to<br>investors<br>because<br>it<br>reflects<br>only<br>those<br>revenue<br>and<br>expense<br>items<br>that<br>are<br>incurred<br>at<br>the<br>asset<br>level,<br>excluding<br>non<br>-<br>cash<br>items<br>..<br>In<br>addition,<br>NOI<br>is<br>considered<br>by<br>many<br>in<br>the<br>real<br>estate<br>industry<br>to<br>be<br>a<br>useful<br>starting<br>point<br>for<br>determining<br>the<br>value<br>of<br>a<br>real<br>estate<br>asset<br>or<br>group<br>of<br>assets<br>..<br>However,<br>because<br>NOI<br>excludes<br>depreciation<br>and<br>amortization<br>and<br>captures<br>neither<br>the<br>changes<br>in<br>the<br>value<br>of<br>our<br>assets<br>that<br>result<br>from<br>use<br>or<br>market<br>conditions,<br>nor<br>the<br>level<br>of<br>capital<br>expenditures<br>and<br>capitalized<br>leasing<br>commissions<br>necessary<br>to<br>maintain<br>the<br>operating<br>performance<br>of<br>our<br>assets,<br>all<br>of<br>which<br>have<br>real<br>economic<br>effect<br>and<br>could<br>materially<br>impact<br>the<br>financial<br>performance<br>of<br>our<br>assets,<br>the<br>utility<br>of<br>NOI<br>as<br>a<br>measure<br>of<br>the<br>operating<br>performance<br>of<br>our<br>assets<br>is<br>limited<br>..<br>NOI<br>presented<br>by<br>us<br>may<br>not<br>be<br>comparable<br>to<br>NOI<br>reported<br>by<br>other<br>REITs<br>that<br>define<br>these<br>measures<br>differently<br>..<br>We<br>believe<br>to<br>facilitate<br>a<br>clear<br>understanding<br>of<br>our<br>operating<br>results,<br>NOI<br>should<br>be<br>examined<br>in<br>conjunction<br>with<br>net<br>income<br>(loss)<br>attributable<br>to<br>common<br>shareholders<br>as<br>presented<br>in<br>our<br>financial<br>statements<br>..<br>NOI<br>should<br>not<br>be<br>considered<br>as<br>an<br>alternative<br>to<br>net<br>income<br>(loss)<br>attributable<br>to<br>common<br>shareholders<br>as<br>an<br>indication<br>of<br>our<br>performance<br>or<br>to<br>cash<br>flows<br>as<br>a<br>measure<br>of<br>liquidity<br>or<br>our<br>ability<br>to<br>make<br>distributions<br>..<br>Annualized<br>NOI,<br>for<br>all<br>assets<br>except<br>Crystal<br>City<br>Marriott,<br>represents<br>NOI<br>for<br>the<br>three<br>months<br>ended<br>March<br>31<br>,<br>2022<br>multiplied<br>by<br>four<br>..<br>Due<br>to<br>seasonality<br>in<br>the<br>hospitality<br>business,<br>Annualized<br>NOI<br>for<br>Crystal<br>City<br>Marriott<br>represents<br>the<br>trailing<br>12<br>-<br>month<br>NOI<br>as<br>of<br>March<br>31<br>,<br>2022<br>..<br>Management<br>believes<br>Annualized<br>NOI<br>provides<br>useful<br>information<br>in<br>understanding<br>our<br>financial<br>performance<br>over<br>a<br>12<br>-<br>month<br>period,<br>however,<br>investors<br>and<br>other<br>users<br>are<br>cautioned<br>against<br>attributing<br>undue<br>certainty<br>to<br>our<br>calculation<br>of<br>Annualized<br>NOI<br>..<br>Actual<br>NOI<br>for<br>any<br>12<br>-<br>month<br>period<br>will<br>depend<br>on<br>a<br>number<br>of<br>factors<br>beyond<br>our<br>ability<br>to<br>control<br>or<br>predict,<br>including<br>general<br>capital<br>markets<br>and<br>economic<br>conditions,<br>any<br>bankruptcy,<br>insolvency,<br>default<br>or<br>other<br>failure<br>to<br>pay<br>rent<br>by<br>one<br>or<br>more<br>of<br>our<br>tenants<br>and<br>the<br>destruction<br>of<br>one<br>or<br>more<br>of<br>our<br>assets<br>due<br>to<br>terrorist<br>attack,<br>natural<br>disaster<br>or<br>other<br>casualty,<br>among<br>others<br>..<br>We<br>do<br>not<br>undertake<br>any<br>obligation<br>to<br>update<br>our<br>calculation<br>to<br>reflect<br>events<br>or<br>circumstances<br>occurring<br>after<br>the<br>date<br>of<br>this<br>earnings<br>release<br>..<br>There<br>can<br>be<br>no<br>assurance<br>that<br>the<br>Annualized<br>NOI<br>shown<br>will<br>reflect<br>our<br>actual<br>results<br>of<br>operations<br>over<br>any<br>12<br>-<br>month<br>period<br>..<br>This<br>Investor<br>Presentation<br>also<br>contains<br>management's<br>estimate<br>of<br>stabilized<br>NOI<br>and<br>projections<br>of<br>NOI<br>yield<br>for<br>Under<br>-<br>Construction<br>and<br>Near<br>-<br>Term<br>Development<br>Pipeline<br>assets,<br>which<br>are<br>based<br>on<br>management's<br>estimates<br>of<br>property<br>-<br>related<br>revenue<br>and<br>operating<br>expenses<br>for<br>each<br>asset<br>..<br>These<br>estimates<br>are<br>inherently<br>uncertain<br>and<br>represent<br>management's<br>plans,<br>expectations<br>and<br>beliefs<br>and<br>are<br>subject<br>to<br>numerous<br>assumptions,<br>risks<br>and<br>uncertainties<br>..<br>The<br>property<br>-<br>related<br>revenues<br>and<br>operating<br>expenses<br>for<br>our<br>assets<br>may<br>differ<br>materially<br>from<br>the<br>estimates<br>included<br>in<br>this<br>Investor<br>Presentation<br>..<br>Management's<br>projections<br>of<br>NOI<br>yield<br>are<br>not<br>projections<br>of<br>our<br>overall<br>financial<br>performance<br>or<br>cash<br>flow,<br>and<br>there<br>can<br>be<br>no<br>assurance<br>that<br>the<br>Projected<br>NOI<br>Yield<br>set<br>forth<br>in<br>this<br>Investor<br>Presentation<br>will<br>be<br>achieved<br>..<br>Projected<br>NOI<br>Yield<br>means<br>our<br>Estimated<br>Stabilized<br>NOI<br>reported<br>as<br>a<br>percentage<br>of<br>(i)<br>Estimated<br>Total<br>Investment<br>and<br>(ii)<br>Estimated<br>Incremental<br>Investment<br>..<br>Actual<br>initial<br>full<br>year<br>stabilized<br>NOI<br>yield<br>may<br>vary<br>from<br>the<br>Projected<br>NOI<br>Yield<br>based<br>on<br>the<br>actual<br>incremental<br>investment<br>to<br>complete<br>the<br>asset<br>and<br>its<br>actual<br>initial<br>full<br>year<br>stabilized<br>NOI,<br>and<br>there<br>can<br>be<br>no<br>assurance<br>that<br>we<br>will<br>achieve<br>the<br>Projected<br>NOI<br>Yields<br>described<br>in<br>this<br>Investor<br>Presentation<br>..<br>We<br>do<br>not<br>provide<br>reconciliations<br>for<br>non<br>-<br>GAAP<br>estimates<br>on<br>a<br>future<br>basis,<br>including<br>Estimated<br>Stabilized<br>NOI<br>and<br>expected<br>annualized<br>NOI<br>because<br>we<br>are<br>unable<br>to<br>provide<br>a<br>meaningful<br>or<br>accurate<br>calculation<br>or<br>estimate<br>of<br>reconciling<br>items<br>and<br>the<br>information<br>is<br>not<br>available<br>without<br>unreasonable<br>effort<br>..<br>This<br>inability<br>is<br>due<br>to<br>the<br>inherent<br>difficulty<br>of<br>forecasting<br>the<br>timing<br>and/or<br>amounts<br>of<br>various<br>items<br>that<br>would<br>impact<br>net<br>income<br>(loss)<br>..<br>Additionally,<br>no<br>reconciliation<br>of<br>Projected<br>NOI<br>Yield<br>to<br>the<br>most<br>directly<br>comparable<br>GAAP<br>measure<br>is<br>included<br>in<br>this<br>Investor<br>Presentation<br>because<br>we<br>are<br>unable<br>to<br>quantify<br>certain<br>amounts<br>that<br>would<br>be<br>required<br>to<br>be<br>included<br>in<br>the<br>comparable<br>GAAP<br>financial<br>measures<br>without<br>unreasonable<br>efforts<br>because<br>such<br>data<br>is<br>not<br>currently<br>available<br>or<br>cannot<br>be<br>currently<br>estimated<br>with<br>confidence<br>..<br>Accordingly,<br>we<br>believe<br>such<br>reconciliations<br>would<br>imply<br>a<br>degree<br>of<br>precision<br>that<br>would<br>be<br>confusing<br>or<br>misleading<br>to<br>investors<br>..<br>NON<br>-<br>SAME STORE<br>“Non<br>-<br>same store” refers to all operating assets excluded from the same store pool.<br>55
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DEFINITIONS<br>PERCENT LEASED<br>"Percent<br>Leased"<br>is<br>based<br>on<br>leases<br>signed<br>as<br>of<br>March<br>31<br>,<br>2022<br>,<br>and<br>is<br>calculated<br>as<br>total<br>rentable<br>square<br>feet<br>less<br>rentable<br>square<br>feet<br>available<br>for<br>lease<br>divided<br>by<br>total<br>rentable<br>square<br>feet<br>expressed<br>as<br>a<br>percentage<br>..<br>Out<br>-<br>of<br>-<br>service<br>square<br>feet<br>are<br>excluded<br>from<br>this<br>calculation<br>..<br>PERCENT OCCUPIED<br>"Percent<br>Occupied"<br>is<br>based<br>on<br>occupied<br>rentable<br>square<br>feet/units<br>as<br>of<br>March<br>31<br>,<br>2022<br>,<br>and<br>is<br>calculated<br>as<br>(i)<br>for<br>office<br>and<br>retail<br>space,<br>total<br>rentable<br>square<br>feet<br>less<br>unoccupied<br>square<br>feet<br>divided<br>by<br>total<br>rentable<br>square<br>feet,<br>(ii)<br>for<br>multifamily<br>space,<br>total<br>units<br>less<br>unoccupied<br>units<br>divided<br>by<br>total<br>units,<br>expressed<br>as<br>a<br>percentage<br>..<br>Out<br>-<br>of<br>-<br>service<br>square<br>feet<br>and<br>units<br>are<br>excluded<br>from<br>this<br>calculation<br>..<br>RECENTLY DELIVERED<br>"Recently Delivered" refers to commercial and multifamily assets that are below 90% leased and have been delivered within the<br>12<br>months ended March 31, 2022.<br>SAME STORE<br>"Same<br>Store"<br>refers<br>to<br>the<br>pool<br>of<br>assets<br>that<br>were<br>In<br>-<br>Service<br>for<br>the<br>entirety<br>of<br>both<br>periods<br>being<br>compared,<br>except<br>for<br>assets<br>for<br>which<br>significant<br>redevelopment,<br>renovation,<br>or<br>repositioning<br>occurred<br>during<br>either<br>of<br>the<br>periods<br>being<br>compared<br>..<br>SQUARE FEET OR "SF"<br>"Square<br>Feet"<br>or<br>"SF"<br>refers<br>to<br>the<br>area<br>that<br>can<br>be<br>rented<br>to<br>tenants,<br>defined<br>as<br>(i)<br>for<br>commercial<br>assets,<br>rentable<br>square<br>footage<br>defined<br>in<br>the<br>current<br>lease<br>and<br>for<br>vacant<br>space<br>the<br>rentable<br>square<br>footage<br>defined<br>in<br>the<br>previous<br>lease<br>for<br>that<br>space,<br>(ii)<br>for<br>multifamily<br>assets,<br>management's<br>estimate<br>of<br>approximate<br>rentable<br>square<br>feet,<br>(iii)<br>for<br>Under<br>-<br>Construction<br>assets,<br>management's<br>estimate<br>of<br>approximate<br>rentable<br>square<br>feet<br>based<br>on<br>current<br>design<br>plans<br>as<br>of<br>March<br>31<br>,<br>2022<br>,<br>and<br>(iv)<br>for<br>Near<br>-<br>Term<br>and<br>Future<br>Development<br>Pipeline<br>assets,<br>management's<br>estimate<br>of<br>developable<br>gross<br>square<br>feet<br>based<br>on<br>current<br>business<br>plans<br>with<br>respect<br>to<br>real<br>estate<br>owned<br>or<br>controlled<br>as<br>of<br>March<br>31<br>,<br>2022<br>..<br>TRANSACTION AND OTHER COSTS<br>"Transaction<br>and<br>Other<br>Costs"<br>include<br>demolition<br>costs,<br>integration<br>and<br>severance<br>costs,<br>pursuit<br>costs<br>related<br>to<br>other<br>completed,<br>potential<br>and<br>pursued<br>transactions,<br>as<br>well<br>as<br>other<br>expenses<br>..<br>UNDER<br>-<br>CONSTRUCTION<br>"Under<br>-<br>Construction" refers to assets that were under construction during the three months ended March 31, 2022.<br>WEIGHTED AVERAGE MARK<br>-<br>TO<br>-<br>MARKET<br>“Weighted Average Mark<br>-<br>to<br>-<br>Market” represents the expected increase in base rent plus tenant reimbursements from second generatio<br>n leases signed during the period over the base rent plus tenant<br>reimbursements from the recently expired lease on that space.<br>56
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EBITDA, EBITDARE AND ADJUSTED EBITDA (NON<br>-<br>GAAP) (UNAUDITED)<br>Note: All EBITDA measures as shown above are attributable to common limited partnership units.<br>(1)<br>Includes demolition costs, integration and severance costs, pursuit costs related to other completed, potential and pursued t<br>ran<br>sactions, as well as other expenses. For the three months ended March 31, 2022 and 2021, excludes $34,000<br>and $1.1 million of transaction costs attributable to noncontrolling interests.<br>(2)<br>Calculated using the Net Debt below. Quarterly Adjusted EBITDA is annualized by multiplying by four. Net debt to annualized A<br>dju<br>sted EBITDA for the three months ended March 31, 2022 would have been 7.6x after adjusting for net<br>proceeds from the sales and recapitalizations which closed subsequent to quarter end, and $198.0 million of gross proceeds fr<br>om<br>the sale of Pen Place that is expected to close in the second quarter of 2022.<br>(3)<br>Net of premium/discount and deferred financing costs.<br>57<br>dollars in thousands<br>Three Months Ended March<br>31,<br>2022<br>2021<br>EBITDA, EBITDAre and Adjusted EBITDA<br>Net loss<br>$<br>(77)<br>$<br>(24,069)<br>Depreciation and amortization expense<br>58,062<br>64,726<br>Interest expense<br>16,278<br>16,296<br>Income tax expense (benefit)<br>(471)<br>4,315<br>Unconsolidated real estate ventures allocated share of above adjustments<br>9,829<br>10,164<br>EBITDA attributable to noncontrolling interests<br>(26)<br>1,071<br>EBITDA<br>$<br>83,595<br>$<br>72,503<br>Loss on the sale of real estate<br>136<br>—<br>Gain on the sale of unconsolidated real estate assets<br>(5,243)<br>—<br>EBITDAre<br>$<br>78,488<br>$<br>72,503<br>Transaction and other costs<br>(1)<br>865<br>2,582<br>Income from investments, net<br>(14,071)<br>—<br>Loss on the extinguishment of debt<br>591<br>—<br>Share<br>-<br>based compensation related to Formation Transaction and special equity awards<br>2,244<br>4,945<br>Earnings and distributions in excess of our investment in unconsolidated real estate venture<br>(441)<br>(330)<br>Unconsolidated real estate ventures allocated share of above adjustments<br>204<br>31<br>Adjusted EBITDA<br>$<br>67,880<br>$<br>79,731<br>Net Debt to Annualized Adjusted EBITDA<br>(2)<br>9.6<br>x<br>6.8<br>x<br>March<br>31,<br>2022<br>March<br>31,<br>2021<br>Net Debt (at JBG SMITH Share)<br>Consolidated indebtedness<br>(3)<br>$<br>2,464,640<br>$<br>1,979,208<br>Unconsolidated indebtedness<br>(3)<br>362,861<br>401,389<br>Total consolidated and unconsolidated indebtedness<br>2,827,501<br>2,380,597<br>Less: cash and cash equivalents<br>207,568<br>223,142<br>Net Debt (at JBG SMITH Share)<br>$<br>2,619,933<br>$<br>2,157,455
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NOI RECONCILIATIONS (NON<br>-<br>GAAP) (UNAUDITED)<br>(1)<br>Adjustment to exclude straight<br>-<br>line rent, above/below market lease amortization and lease incentive amortization.<br>(2)<br>Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties an<br>d t<br>o exclude commercial lease termination revenue and allocated corporate general and administrative<br>expenses to operating properties.<br>(3)<br>Includes the results of our Under<br>-<br>Construction assets, and Near<br>-<br>Term and Future Development Pipelines.<br>(4)<br>Includes the results of properties that were not In<br>-<br>Service for the entirety of both periods being compared and properties for w<br>hich significant redevelopment, renovation or repositioning occurred during either of the periods being<br>compared.<br>(5)<br>Includes the results of the properties that are owned, operated and In<br>-<br>Service for the entirety of both periods being compared.<br>58<br>dollars in thousands<br>Three Months Ended March<br>31,<br>2022<br>2021<br>Net loss attributable to common shareholders<br>$<br>(32)<br>$<br>(20,731)<br>Add:<br>Depreciation and amortization expense<br>58,062<br>64,726<br>General and administrative expense:<br>Corporate and other<br>15,815<br>12,475<br>Third<br>-<br>party real estate services<br>27,049<br>28,936<br>Share<br>-<br>based compensation related to Formation Transaction and special equity awards<br>2,244<br>4,945<br>Transaction and Other Costs<br>899<br>3,690<br>Interest expense<br>16,278<br>16,296<br>Loss on the extinguishment of debt<br>591<br>—<br>Income tax expense (benefit)<br>(471)<br>4,315<br>Net income (loss) attributable to redeemable noncontrolling interests<br>10<br>(2,230)<br>Net loss attributable to noncontrolling interests<br>(55)<br>(1,108)<br>Less:<br>Third<br>-<br>party real estate services, including reimbursements revenue<br>23,970<br>38,107<br>Other revenue<br>2,196<br>2,186<br>Income (loss) from unconsolidated real estate ventures, net<br>3,145<br>(943)<br>Interest and other income, net<br>14,246<br>9<br>Loss on the sale of real estate<br>(136)<br>—<br>Consolidated NOI<br>76,969<br>71,955<br>NOI attributable to unconsolidated real estate ventures at our share<br>6,967<br>7,512<br>Non<br>-<br>cash rent adjustments<br>(1)<br>(1,791)<br>(4,765)<br>Other adjustments<br>(2)<br>8,760<br>4,738<br>Total adjustments<br>13,936<br>7,485<br>NOI<br>$<br>90,905<br>$<br>79,440<br>Less: out<br>-<br>of<br>-<br>service NOI loss<br>(3)<br>(1,448)<br>(1,361)<br>Operating Portfolio NOI<br>$<br>92,353<br>$<br>80,801<br>Non<br>-<br>Same Store NOI<br>(4)<br>3,814<br>1,767<br>Same Store NOI<br>(5)<br>$<br>88,539<br>$<br>79,034<br>Change in Same Store NOI<br>12.0%<br>Number of properties<br>in Same Store<br>pool<br>59
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