JBG SMITH Announces Second Quarter 2026 Results

View all news Company Release - 08/10/2026 JBG SMITH (NYSE: JBGS), a leading owner, operator, and developer of mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended June 30, 2026 and reported its financial results. Additional information regarding our results of operations, properties, and tenants can be found in our Second Quarter 2026 Investor Package, which is posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in that document. Second Quarter 2026 Highlights Net loss, Funds From Operations ("FFO"), and Core FFO attributable to common shareholders were: SECOND QUARTER AND YEAR-TO-DATE COMPARISON in millions, except per share amounts Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Amount Per Diluted Share Net loss(1) $ (59.2 ) $ (1.03 ) $ (19.2 ) $ (0.29 ) $ (77.9 ) $ (1.34 ) $ (65.0 ) $ (0.87 ) FFO $ 12.5 $ 0.21 $ 10.0 $ 0.15 $ 14.6 $ 0.25 $ 10.8 $ 0.14 Core FFO $ 10.4 $ 0.18 $ 12.7 $ 0.19 $ 20.3 $ 0.34 $ 19.9 $ 0.27 ____________________ (1) Includes gains on the sale of real estate of $41.8 million for the three months ended June 30, 2025, and $20.8 million and $42.4 million for the six months ended June 30, 2026 and 2025. Includes impairment losses of $44.1 million and $31.8 million for the three months ended June 30, 2026 and 2025, and $45.6 million and $40.3 million for the six months ended June 30, 2026 and 2025. Annualized Net Operating Income ("Annualized NOI") for the three months ended June 30, 2026 was $249.3 million, compared to $249.7 million for the three months ended March 31, 2026, at our share. Adjusting for assets that were recently sold and recapitalized, Annualized NOI for the three months ended June 30, 2026 was $249.2 million, compared to $246.1 million for the three months ended March 31, 2026, at our share.The increase in Annualized NOI, adjusting for assets that were recently sold and recapitalized, was substantially attributable to (i) higher occupancy and lower utilities expense, partially offset by higher repairs and maintenance expense in our multifamily portfolio; and (ii) lower utilities expense and higher parking revenue, partially offset by lower rental revenue in our commercial portfolio.Same Store NOI ("SSNOI") at our share decreased 4.0% to $54.8 million for the three months ended June 30, 2026 compared to June 30, 2025.The decrease in SSNOI was substantially attributable to (i) lower rental revenue and higher real estate taxes and utilities expense in our multifamily portfolio; and (ii) lower rental revenue, partially offset by lower real estate taxes in our commercial portfolio. Operating Portfolio The operating multifamily portfolio was 89.6% leased and 86.6% occupied as of June 30, 2026, compared to 86.8% and 84.5% as of March 31, 2026, at our share. Our Same Store multifamily portfolio was 94.3% leased and 92.0% occupied as of June 30, 2026, compared to 93.5% leased and 92.0% occupied as of March 31, 2026, at our share.In our Same Store multifamily portfolio, effective rents decreased by 9.5% for new leases and increased by 2.8% upon renewal while achieving a 55.9% renewal rate during the second quarter.The operating commercial portfolio was 78.0% leased and 75.4% occupied as of June 30, 2026, compared to 76.9% and 75.2% as of March 31, 2026, at our share.Executed approximately 151,000 square feet of office leases at our share during the three months ended June 30, 2026, including approximately 88,000 square feet of new leases. Second-generation leases generated a 2.0% rental rate decrease on a cash basis and a 4.2% rental rate increase on a GAAP basis.Executed approximately 483,000 square feet of office leases at our share during the six months ended June 30, 2026, including approximately 116,000 square feet of new leases. Second-generation leases generated a 5.7% rental rate decrease on a cash basis and a 1.0% rental rate increase on a GAAP basis. Development Portfolio Under-Construction In May 2026, we commenced construction on 2200 Crystal Drive in National Landing, an obsolete office building we contributed to a joint venture and are converting into a 195-unit multifamily asset, 59 units at our share. Development Pipeline As of June 30, 2026, our development pipeline consisted of 3.5 million square feet of estimated potential development density at our share. Third-Party Real Estate Services Business For the three months ended June 30, 2026, revenue from third-party real estate services, including reimbursements, was $17.0 million. Excluding reimbursements and service revenue from our interests in real estate ventures, revenue from our third-party real estate services business was $7.2 million, primarily driven by $4.7 million of property and asset management fees, and $1.4 million of other service revenue. Balance Sheet As of June 30, 2026, our total enterprise value was approximately $3.5 billion, comprising 71.4 million common shares and units valued at $1.0 billion, and debt (net of premium / (discount) and deferred financing costs) at our share of $2.6 billion, less cash and cash equivalents at our share of $74.6 million.As of June 30, 2026, we had $74.8 million of cash and cash equivalents ($74.6 million of cash and cash equivalents at our share), and $526.2 million of undrawn capacity under our revolving credit facility.Net Debt to annualized Adjusted EBITDA at our share for the three months ended June 30, 2026 was 12.4x, and our Net Debt / total enterprise value was 70.3% as of June 30, 2026. Investing and Financing Activities In April 2026, we formed a real estate venture to recapitalize Tysons Dulles Plaza, a 491,494-square-foot commercial asset in Tysons, Virginia, in which we retained a 50.0% interest. In connection with the transaction, the real estate venture entered into a three-year, interest-only $37.9 million mortgage loan with an interest rate of SOFR plus 2.10%, of which $20.0 million was drawn at closing. We retained management of the asset and continue to account for the asset on a consolidated basis.In May 2026, we formed an unconsolidated real estate venture to recapitalize 2200 Crystal Drive, an office building in Arlington, Virginia, which the venture is converting into a 195-unit multifamily asset. We contributed 2200 Crystal Drive to the real estate venture, and our venture partner has committed to contribute the equity required to fund the construction for a 70.0% interest, which is expected to reduce our ownership interest from 100.0% at the formation of the real estate venture to 30.0% when all contributions are funded. We are the developer and the property manager of the asset. In connection with the transaction, the real estate venture entered into a four-year mortgage loan with a maximum principal balance of $55.0 million and an interest rate of SOFR plus 2.00%. Dividends On July 30, 2026, our Board of Trustees declared a quarterly dividend of $0.175 per common share, which will be paid on August 27, 2026 to shareholders of record as of August 13, 2026. Wardman Tower Litigation We, along with multiple other parties, are named defendants in a lawsuit arising out of a condominium development project known as Wardman Tower in Washington, DC. The lawsuit was filed by the Wardman Tower Residential Condominium Unit Owners Association in the Superior Court of the District of Columbia on November 25, 2020. The lawsuit seeks damages resulting primarily from alleged construction and design deficiencies, and alleged misrepresentations and omissions, including claims under the DC Consumer Protection Procedures Act ("CPPA"). The Wardman Tower project was designed and constructed by other parties and was substantially complete prior to our formation. We have never had any ownership interest in the project. One of our subsidiary entities, which was only made a defendant in the litigation during the trial, had acted under a project management agreement with the project owner. The lawsuit sought compensatory damages and asked that those damages be trebled under the CPPA, plus attorneys' fees. The bench trial began on November 10, 2025, and the last witness testified on March 5, 2026. On July 31, 2026, the Court entered judgment in favor of Wardman Tower Residential Condominium Unit Owners Association, found damages in the amount of $118.7 million, and ordered the defendants, which include us, to pay treble that amount, or approximately $356.1 million in damages, plus attorneys’ fees in an amount to be determined. We believe the judgment against us, including its conclusion that we are liable for acts of employees of a subsidiary providing services under a project management agreement between the project owner and another subsidiary, is not supported by the facts of the case or applicable law regarding corporate separateness. We believe there are substantial grounds to challenge both the liability findings against us and the size and trebling of the award, and intend to appeal the judgment promptly, and continue to defend ourselves vigorously in this matter. The timing and success of any appeal is uncertain, and we cannot be certain of the ultimate outcome of the case. We anticipate that one or more bonds will be posted by the defendants to stay enforcement of the judgment pending the expected appeal, and to the extent we are required to collateralize any portion of the bonds, it may impact our liquidity. As of June 30, 2026, we have concluded that a loss attributable to us from this case is not probable at this time and, therefore, a liability has not been recorded with respect to this case. Please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 for additional information. About JBG SMITH JBG SMITH owns, operates, and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, DC, most notably National Landing, where through our focus on placemaking, we cultivate vibrant, highly amenitized, walkable neighborhoods. JBG SMITH's portfolio comprises 11.8 million square feet at share of multifamily, office, and retail assets, and a 3.5 million square-foot development pipeline. For more information on JBG SMITH please visit www.jbgsmith.com. Forward-Looking Statements Certain statements contained herein may constitute "forward-looking statements" as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results, financial condition and business of JBG SMITH Properties ("JBG SMITH," the "Company," "we," "us," "our" or similar terms) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximate," "hypothetical," "potential," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or similar expressions in this earnings release. We also note the following forward-looking statements: the impacts and ultimate outcome of the Wardman Tower litigation; the potential need for one or more bonds to be posted by the defendants and the extent to which we would be required to collateralize any portion of such bonds; whether our current ownership in the 2200 Crystal Drive real estate venture will reduce on the terms and timing anticipated or at all; whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet and estimated number of units are accurate; whether expected timing, completion, and delivery dates for our under-construction assets are accurate; and whether expected equity contributions of venture partners will be realized. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, including reductions in federal government spending, headcount, or leasing, trends in multifamily housing demand in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10‑K for the year ended December 31, 2025 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof. Pro Rata Information We present certain financial information and metrics in this release "at JBG SMITH Share," which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, "real estate ventures") as applied to these financial measures and metrics. Financial information "at JBG SMITH Share" is calculated on an asset-by-asset basis by applying our percentage economic interest to each applicable line item of that asset's financial information. "At JBG SMITH Share" information, which we also refer to as being "at share," "our pro rata share" or "our share," is not, and is not intended to be, a presentation in accordance with GAAP. Given that a portion of our assets are held through real estate ventures, we believe this form of presentation, which presents our economic interests in the partially owned entities, provides investors valuable information regarding a significant component of our portfolio, its composition, performance and capitalization. We do not control the unconsolidated real estate ventures and do not have a legal claim to our co-venturers' share of assets, liabilities, revenue and expenses. The operating agreements of the unconsolidated real estate ventures generally allow each co-venturer to receive cash distributions to the extent there is available cash from operations. The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions. With respect to any such third-party arrangement, we would not be in a position to exercise sole decision-making authority regarding the property, real estate venture or other entity, and may, under certain circumstances, be exposed to economic risks not present were a third-party not involved. We and our respective co-venturers may each have the right to trigger a buy-sell or forced sale arrangement, which could cause us to sell our interest, or acquire our co-venturers' interests, or to sell the underlying asset, either on unfavorable terms or at a time when we otherwise would not have initiated such a transaction. Our real estate ventures may be subject to debt, and the repayment or refinancing of such debt may require equity capital calls. To the extent our co-venturers do not meet their obligations to us or our real estate ventures or they act inconsistent with the interests of the real estate venture, we may be adversely affected. Because of these limitations, the non-GAAP "at JBG SMITH Share" financial information should not be considered in isolation or as a substitute for our consolidated financial statements as reported under GAAP. Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 33.5% subordinated interest in four commercial buildings, as well as the associated non-recourse mortgage loans, held through an unconsolidated real estate venture, as our investment in the real estate venture is zero, we do not anticipate receiving any near-term cash flow distributions from the real estate venture, and we have not guaranteed its obligations or otherwise committed to providing financial support. Non-GAAP Financial Measures This release includes non-GAAP financial measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why JBG SMITH's management believes that the presentation of these measures provides useful information to investors regarding JBG SMITH's financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this earnings release. Our presentation of non-GAAP financial measures may not be comparable to similar non-GAAP measures used by other companies. In addition to "at share" financial information, the following non-GAAP measures are included in this release: Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre") and "Adjusted EBITDA" are non-GAAP financial measures. EBITDA and EBITDAre are used by management as supplemental operating performance measures, which we believe help investors and lenders meaningfully evaluate and compare our operating performance from period-to-period by removing from our operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps and caps) and certain non-cash expenses (primarily depreciation and amortization expense on our assets). EBITDAre is computed in accordance with the definition established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expense, gains (losses) on sales of real estate and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. EBITDA and EBITDAre are not substitutes for net income (loss) (computed in accordance with GAAP) and may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as Transaction and Other Costs, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, litigation costs and income (loss) from investments. We believe that adjusting such items not considered part of our comparable operations provides a meaningful measure to evaluate and compare our performance from period-to-period. Because EBITDA, EBITDAre and Adjusted EBITDA have limitations as analytical tools, we use EBITDA, EBITDAre and Adjusted EBITDA to supplement GAAP financial measures. Additionally, we believe that users of these measures should consider EBITDA, EBITDAre and Adjusted EBITDA in conjunction with net income (loss) and other GAAP measures in understanding our operating results. Funds from Operations ("FFO"), "Core FFO" and Funds Available for Distribution ("FAD") are non-GAAP financial measures. FFO is computed in accordance with the definition established by Nareit in the Nareit FFO White Paper - 2018 Restatement. Nareit defines FFO as net income (loss) (computed in accordance with GAAP), excluding depreciation and amortization expense related to real estate, gains (losses) from the sale of certain real estate assets, gains (losses) from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures. Core FFO represents FFO adjusted to exclude items which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, litigation costs, income (loss) from investments, amortization of the management contracts intangible and the mark-to-market of derivative instruments, including our share of such adjustments for unconsolidated real estate ventures. FAD represents Core FFO adjusted for recurring capital expenditures and Second-generation tenant improvements and leasing commissions, net deferred rent activity, lease incentive amortization, accretion of acquired below-market leases, amortization of acquired above-market leases, recurring share-based compensation expense, amortization of debt issuance costs and other non-cash income and charges, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends. We believe FFO, Core FFO and FAD are meaningful non‑GAAP financial measures useful in comparing our levered operating performance from period-to-period and as compared to similar real estate companies because these non‑GAAP measures exclude real estate depreciation and amortization expense, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions, and other non-comparable income and expenses. FFO, Core FFO and FAD do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as a performance measure or cash flow as a liquidity measure. FFO, Core FFO and FAD may not be comparable to similarly titled measures used by other companies. "Net Debt" is a non-GAAP financial measurement. Net Debt represents our total consolidated and unconsolidated indebtedness less cash and cash equivalents at our share. Net Debt is an important component in the calculations of Net Debt to Annualized Adjusted EBITDA and Net Debt / total enterprise value. We believe that Net Debt is a meaningful non-GAAP financial measure useful to investors because we review Net Debt as part of the management of our overall financial flexibility, capital structure and leverage. We may utilize a considerable portion of our cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents at our share may not be solely controlled by us. The deduction of cash and cash equivalents at our share from consolidated and unconsolidated indebtedness in the calculation of Net Debt, therefore, should not be understood to mean that it is available exclusively for debt reduction at any given time. Net Operating Income ("NOI"), "Same Store NOI" and "Annualized NOI" are non-GAAP financial measures management uses to assess an asset's performance. The most directly comparable GAAP measure is net income (loss) attributable to common shareholders. We use NOI internally as a performance measure and believe NOI, Same Store NOI and Annualized NOI provide useful information to investors regarding our financial condition and results of operations because it reflects only property related revenue (which includes base rent, tenant reimbursements and other operating revenue, net of Free Rent and payments associated with assumed lease liabilities) less operating expenses and ground rent for operating leases, if applicable. NOI excludes deferred (straight-line) rent, commercial lease termination revenue, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and the amortization of acquired above-market leases and below-market ground lease intangibles. Management uses NOI, which includes our proportionate share of revenue and expenses attributable to real estate ventures, as a supplemental performance measure and believes it provides useful information to investors because it reflects only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of NOI as a measure of the operating performance of our assets is limited. NOI presented by us may not be comparable to NOI reported by other real estate investment trusts that define these measures differently. We believe to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) attributable to common shareholders as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Annualized NOI represents NOI for the three months ended June 30, 2026 multiplied by four. Management believes Annualized NOI provides useful information in understanding our financial performance over a 12‑month period, however, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12‑month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this earnings release. There can be no assurance that the Annualized NOI shown will reflect our actual results of operations over any 12‑month period. Definitions "Development Pipeline" refers to owned and entitled land on which we have the potential to commence construction subject to completion of design and/or market conditions. Excludes unentitled land parcels and land parcels controlled through an option agreement. "Estimated Potential Development Density" reflects management's estimate of developable gross square feet based on our current business plans with respect to real estate owned as of June 30, 2026. Our current business plans may contemplate development of less than the maximum potential development density for individual assets. As market conditions change, our business plans, and therefore, the Estimated Potential Development Density, could change accordingly. Given timing, zoning requirements and other factors, we make no assurance that Estimated Potential Development Density amounts will become actual density to the extent we complete development of assets for which we have made such estimates. "First-generation" is a lease on space that had been vacant for at least nine months or a lease on newly delivered space. "Free Rent" means the amount of base rent and tenant reimbursements that are abated according to the applicable lease agreement(s). "GAAP" means accounting principles generally accepted in the United States of America. "In-Service" refers to multifamily or commercial operating assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of June 30, 2026. "Non-Same Store" refers to all operating assets excluded from the Same Store pool. "Same Store" refers to the pool of assets that were In-Service for the entirety of both periods being compared, excluding assets for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. "Second-generation" is a lease on space that had been vacant for less than nine months. "Transaction and Other Costs" include costs related to completed, potential and pursued transactions, and other costs. "Under-Construction" refers to assets that were under construction during the period. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) in thousands June 30, 2026 December 31, 2025 ASSETS Real estate, at cost: Land and improvements $ 987,802 $ 1,019,967 Buildings and improvements 4,016,401 3,973,514 Construction in progress, including land 111,275 175,673 5,115,478 5,169,154 Less: accumulated depreciation (1,478,008 ) (1,408,641 ) Real estate, net 3,637,470 3,760,513 Cash and cash equivalents 74,803 75,270 Restricted cash 33,264 28,020 Tenant and other receivables 25,141 21,810 Deferred rent receivable 187,747 182,891 Investments in unconsolidated real estate ventures 115,603 105,711 Deferred leasing costs, net 63,246 66,356 Intangible assets, net 11,497 30,333 Other assets, net 112,064 117,287 TOTAL ASSETS $ 4,260,835 $ 4,388,191 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Liabilities: Mortgage loans, net $ 1,601,618 $ 1,579,158 Revolving credit facility 210,000 205,000 Term loans, net 718,832 718,408 Accounts payable and accrued expenses 65,630 84,748 Other liabilities, net 94,057 131,945 Total liabilities 2,690,137 2,719,259 Commitments and contingencies Redeemable noncontrolling interests 492,712 511,342 Total equity 1,077,986 1,157,590 TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY $ 4,260,835 $ 4,388,191 ____________________ Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) in thousands, except per share data Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 REVENUE Property rental $ 106,632 $ 106,509 $ 212,488 $ 208,008 Third-party real estate services, including reimbursements 17,002 14,805 34,210 29,719 Other revenue 5,741 5,165 10,279 9,438 Total revenue 129,375 126,479 256,977 247,165 EXPENSES Depreciation and amortization 44,791 47,560 90,096 95,147 Property operating 35,964 34,875 72,182 68,312 Real estate taxes 12,309 12,651 24,355 24,823 General and administrative: Corporate and other 15,404 16,720 30,691 32,277 Third-party real estate services 16,364 13,562 33,362 29,633 Transaction and other costs 685 2,846 10,526 4,757 Total expenses 125,517 128,214 261,212 254,949 OTHER INCOME (EXPENSE) Income (loss) from unconsolidated real estate ventures, net (586 ) 1,091 (960 ) 499 Interest and other income, net 4,658 698 6,058 1,223 Interest expense (36,029 ) (35,571 ) (71,577 ) (70,771 ) Gain (loss) on the sale of real estate, net (285 ) 41,832 20,790 42,369 Gain (loss) on the extinguishment of debt, net — 2,234 — (2,402 ) Impairment loss (44,065 ) (31,813 ) (45,565 ) (40,296 ) Total other income (expense) (76,307 ) (21,529 ) (91,254 ) (69,378 ) LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT (72,449 ) (23,264 ) (95,489 ) (77,162 ) Income tax (expense) benefit — 83 (7 ) 283 NET LOSS (72,449 ) (23,181 ) (95,496 ) (76,879 ) Net loss attributable to redeemable noncontrolling interests 13,381 3,940 17,731 11,918 Net income attributable to noncontrolling interests (87 ) — (87 ) — NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (59,155 ) $ (19,241 ) $ (77,852 ) $ (64,961 ) LOSS PER COMMON SHARE - BASIC AND DILUTED $ (1.03 ) $ (0.29 ) $ (1.34 ) $ (0.87 ) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED 58,284 68,287 58,676 74,867 ____________________ Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. EBITDA, EBITDAre AND ADJUSTED EBITDA RECONCILIATIONS (NON-GAAP) (Unaudited) dollars in thousands Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 EBITDA, EBITDAre and Adjusted EBITDA Net loss $ (72,449 ) $ (23,181 ) $ (95,496 ) $ (76,879 ) Depreciation and amortization expense 44,791 47,560 90,096 95,147 Interest expense 36,029 35,571 71,577 70,771 Income tax expense (benefit) — (83 ) 7 (283 ) Unconsolidated real estate ventures allocated share of above adjustments 1,549 1,835 3,122 3,617 EBITDA attributable to noncontrolling interests in consolidated real estate ventures (1,545 ) (270 ) (2,303 ) (270 ) EBITDA $ 8,375 $ 61,432 $ 67,003 $ 92,103 (Gain) loss on the sale of real estate, net 285 (41,832 ) (20,790 ) (42,369 ) Pro rata share of (gain) loss on the sale of unconsolidated real estate assets 4 (1,500 ) 39 (1,500 ) Impairment loss related to real estate 44,065 31,813 45,565 40,296 EBITDAre $ 52,729 $ 49,913 $ 91,817 $ 88,530 Transaction and other costs, net of noncontrolling interests(1) 551 2,846 10,392 4,757 Litigation costs(2) 680 2,500 680 2,500 (Income) loss from investments, net (4,136 ) (98 ) (4,199 ) 278 (Gain) loss on the extinguishment of debt, net — (2,234 ) — 2,402 Earnings and distributions in excess of our investment in unconsolidated real estate venture — (217 ) — (401 ) Unconsolidated real estate ventures allocated share of above adjustments 199 — 217 — Adjusted EBITDA $ 50,023 $ 52,710 $ 98,907 $ 98,066 Net Debt to Annualized Adjusted EBITDA(3) 12.4 x 11.8 x 12.5 x 12.6 x June 30, 2026 June 30, 2025 Net Debt (at JBG SMITH Share) Consolidated indebtedness(4) $ 2,517,952 $ 2,479,101 Unconsolidated indebtedness(4) 33,605 67,114 Total consolidated and unconsolidated indebtedness 2,551,557 2,546,215 Less: cash and cash equivalents 74,552 65,606 Net Debt (at JBG SMITH Share) $ 2,477,005 $ 2,480,609 ____________________ Note: All EBITDA measures as shown above are attributable to common limited partnership units ("OP Units") and certain fully vested incentive equity awards that may be convertible into OP Units. The prior year EBITDAre amounts have been restated to conform to the current year presentation. There was no change to EBITDA or Adjusted EBITDA. (1) Includes costs related to completed, potential and pursued transactions, and other costs. (2) Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations. (3) Quarterly Adjusted EBITDA is annualized by multiplying by four. Adjusted EBITDA for the six months ended June 30, 2026 and 2025 is annualized by multiplying by two. (4) Net of premium/discount and deferred financing costs. FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP) (Unaudited) in thousands, except per share data Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 FFO and Core FFO Net loss attributable to common shareholders $ (59,155 ) $ (19,241 ) $ (77,852 ) $ (64,961 ) Net loss attributable to redeemable noncontrolling interests (13,381 ) (3,940 ) (17,731 ) (11,918 ) Net income attributable to noncontrolling interests 87 — 87 — Net loss (72,449 ) (23,181 ) (95,496 ) (76,879 ) (Gain) loss on the sale of real estate, net 285 (41,832 ) (20,790 ) (42,369 ) Pro rata share of (gain) loss on the sale of unconsolidated real estate assets 4 (1,500 ) 39 (1,500 ) Real estate depreciation and amortization 44,509 46,508 89,527 92,469 Impairment loss related to real estate 44,065 31,813 45,565 40,296 Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures 970 786 1,949 1,565 FFO attributable to noncontrolling interests in consolidated real estate ventures (1,422 ) (270 ) (2,180 ) (270 ) FFO Attributable to OP Units $ 15,962 $ 12,324 $ 18,614 $ 13,312 FFO attributable to redeemable noncontrolling interests (3,445 ) (2,371 ) (4,018 ) (2,538 ) FFO Attributable to Common Shareholders $ 12,517 $ 9,953 $ 14,596 $ 10,774 FFO attributable to OP Units $ 15,962 $ 12,324 $ 18,614 $ 13,312 Transaction and other costs, net of noncontrolling interests(1) 551 2,846 10,392 4,757 Litigation costs(2) 680 2,500 680 2,500 (Income) loss from investments, net of tax (4,136 ) (74 ) (4,199 ) 211 Gain from mark-to-market on derivative instruments (16 ) (24 ) (16 ) (56 ) (Gain) loss on the extinguishment of debt, net — (2,234 ) — 2,402 Earnings and distributions in excess of our investment in unconsolidated real estate venture — (217 ) — (401 ) Amortization of management contracts intangible, net of tax 74 622 147 1,678 Unconsolidated real estate ventures allocated share of above adjustments 199 — 217 — Core FFO Attributable to OP Units $ 13,314 $ 15,743 $ 25,835 $ 24,403 Core FFO attributable to redeemable noncontrolling interests (2,874 ) (3,029 ) (5,580 ) (4,491 ) Core FFO Attributable to Common Shareholders $ 10,440 $ 12,714 $ 20,255 $ 19,912 FFO per common share - diluted $ 0.21 $ 0.15 $ 0.25 $ 0.14 Core FFO per common share - diluted $ 0.18 $ 0.19 $ 0.34 $ 0.27 Weighted average shares - diluted (FFO and Core FFO) 58,449 68,451 58,882 75,063 See footnotes under table below. FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP) (Unaudited) in thousands, except per share data Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 FAD Core FFO attributable to OP Units $ 13,314 $ 15,743 $ 25,835 $ 24,403 Recurring capital expenditures and Second-generation tenant improvements and leasing commissions, at share (5,078 ) (9,108 ) (9,107 ) (20,886 ) Straight-line and other rent adjustments(3) (2,925 ) 71 (4,645 ) 2,510 Share-based compensation expense 9,033 7,345 16,777 13,877 Amortization of debt issuance costs 3,114 3,700 6,167 7,835 Unconsolidated real estate ventures allocated share of above adjustments 75 206 171 355 Non-real estate depreciation and amortization 209 251 422 509 FAD Available to OP Units (A) $ 17,742 $ 18,208 $ 35,620 $ 28,603 Distributions to common shareholders and unitholders (B) $ 13,158 $ 15,332 $ 26,281 $ 32,942 FAD Payout Ratio (B÷A)(4) 74.2 % 84.2 % 73.8 % 115.2 % Capital Expenditures Maintenance and recurring capital expenditures $ 4,123 $ 3,268 $ 5,750 $ 6,856 Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures 2 9 4 9 Second-generation tenant improvements and leasing commissions 953 5,818 3,353 13,764 Share of Second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures — 13 — 257 Recurring capital expenditures and Second-generation tenant improvements and leasing commissions 5,078 9,108 9,107 20,886 Non-recurring capital expenditures 5,615 8,917 11,399 14,151 First-generation tenant improvements and leasing commissions 5,786 2,272 10,356 5,920 Share of First-generation tenant improvements and leasing commissions from unconsolidated real estate ventures — 46 73 83 Non-recurring capital expenditures and First-generation tenant improvements and leasing commissions 11,401 11,235 21,828 20,154 Total JBG SMITH Share of Capital Expenditures $ 16,479 $ 20,343 $ 30,935 $ 41,040 ____________________ Note: The prior year FFO amounts have been restated to conform to the current year presentation. There was no change to Core FFO. (1) Includes costs related to completed, potential and pursued transactions, and other costs. (2) Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations. (3) Includes straight-line rent, above/below market lease amortization/accretion and lease incentive amortization. (4) The quarterly FAD payout ratio is not necessarily indicative of an amount for the full year due to fluctuation in the timing of capital expenditures, the commencement of new leases and the seasonality of our operations. NOI RECONCILIATIONS (NON-GAAP) (Unaudited) dollars in thousands Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss attributable to common shareholders $ (59,155 ) $ (19,241 ) $ (77,852 ) $ (64,961 ) Net loss attributable to redeemable noncontrolling interests (13,381 ) (3,940 ) (17,731 ) (11,918 ) Net income attributable to noncontrolling interests 87 — 87 — Net loss (72,449 ) (23,181 ) (95,496 ) (76,879 ) Add: Depreciation and amortization expense 44,791 47,560 90,096 95,147 General and administrative expense: Corporate and other 15,404 16,720 30,691 32,277 Third-party real estate services 16,364 13,562 33,362 29,633 Transaction and other costs 685 2,846 10,526 4,757 Interest expense 36,029 35,571 71,577 70,771 (Gain) loss on the extinguishment of debt, net — (2,234 ) — 2,402 Impairment loss 44,065 31,813 45,565 40,296 Income tax expense (benefit) — (83 ) 7 (283 ) Less: Third-party real estate services, including reimbursements revenue 17,002 14,805 34,210 29,719 Income (loss) from unconsolidated real estate ventures, net (586 ) 1,091 (960 ) 499 Interest and other income, net 4,658 698 6,058 1,223 Gain (loss) on the sale of real estate, net (285 ) 41,832 20,790 42,369 Adjustments: NOI attributable to unconsolidated real estate ventures at our share 1,172 1,287 2,397 2,277 Real estate venture partner’s share of NOI attributable to consolidated real estate ventures (1,822 ) (272 ) (2,623 ) (272 ) Non-cash rent adjustments(1) (2,925 ) 71 (4,645 ) 2,510 Other adjustments(2) 552 399 639 2,092 Total adjustments (3,023 ) 1,485 (4,232 ) 6,607 NOI $ 61,077 $ 65,633 $ 121,998 $ 130,918 Less: out-of-service NOI loss(3) (1,241 ) (1,469 ) (2,753 ) (3,696 ) Operating Portfolio NOI $ 62,318 $ 67,102 $ 124,751 $ 134,614 Non-Same Store NOI(4) 7,555 10,085 15,662 20,549 Same Store NOI(5) $ 54,763 $ 57,017 $ 109,089 $ 114,065 Change in Same Store NOI (4.0 ) % (4.4 ) % Number of properties in Same Store pool 32 32 ____________________ (1) Adjustment to exclude deferred (straight-line) rent, above/below market lease amortization/accretion and lease incentive amortization. (2) Adjustment to exclude commercial lease termination revenue, related party management fees and corporate entity activity. (3) Includes the results of our Under-Construction assets, assets in the Development Pipeline, and other land assets. (4) Includes the results of properties that were not In-Service for the entirety of both periods being compared, including disposed properties, and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. (5) Includes the results of the properties that are owned, operated and In-Service for the entirety of both periods being compared. Kevin Connolly Executive Vice President, Portfolio Management & Investor Relations (240) 333‑3837 kconnolly@jbgsmith.com Source: JBG SMITH View all news IR Contact Information Kevin Connolly EVP, Portfolio Management & Investor Relations kconnolly@jbgsmith.com 240-333-3837