JBG SMITH Announces Third Quarter 2025 Results

JBG SMITH Announces Third Quarter 2025 Results

BETHESDA, Md.–(BUSINESS WIRE)–
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 September 30, 2025 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our Third Quarter 2025 Investor Package, which is posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in that document.

Third Quarter 2025 Highlights

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

		THIRD QUARTER AND YEAR-TO-DATE COMPARISON
in millions, except per share amounts			Three Months Ended														Nine Months Ended
			September 30, 2025							September 30, 2024							September 30, 2025							September 30, 2024
			Amount			Per Diluted Share				Amount			Per Diluted Share				Amount			Per Diluted Share				Amount			Per Diluted Share
	Net loss (1)		$	(28.6	)	$	(0.48	)		$	(27.0	)	$	(0.32	)		$	(93.5	)	$	(1.35	)		$	(83.6	)	$	(0.95	)
	FFO (2)		$	10.1		$	0.17			$	19.5		$	0.23			$	13.9		$	0.20			$	44.5		$	0.50
	Core FFO		$	9.1		$	0.15			$	19.3		$	0.23			$	29.0		$	0.41			$	62.3		$	0.69

________________________
(1)		Includes gains on the sale of real estate of $4.7 million and $47.0 million for the three and nine months ended September 30, 2025. Includes losses on the sale of real estate of $5.4 million and $5.1 million for the three and nine months ended September 30, 2024. Includes impairment losses of $4.8 million and $45.1 million for the three and nine months ended September 30, 2025, and $18.2 million for the nine months ended September 30, 2024.
(2)		Includes impairment losses related to non-depreciable real estate assets of $8.5 million and $18.2 million for the nine months ended September 30, 2025 and 2024.

• Annualized Net Operating Income (“Annualized NOI”) for the three months ended September 30, 2025 was $242.3 million, compared to $268.4 million for the three months ended June 30, 2025, at our share. Excluding the assets that were sold, recapitalized and recently acquired, Annualized NOI for the three months ended September 30, 2025 was $232.9 million, compared to $242.2 million for the three months ended June 30, 2025, at our share.
  • The decrease in Annualized NOI, excluding the assets that were sold, recapitalized and recently acquired, was substantially attributable to (i) higher utilities expenses in our commercial portfolio, and (ii) higher operating expenses and higher concessions, partially offset by the continued lease up of the recently completed assets in our multifamily portfolio.

• Same Store NOI (“SSNOI”) at our share decreased 6.7% quarter-over-quarter to $54.1 million for the three months ended September 30, 2025.
  • The decrease in SSNOI was substantially attributable to (i) lower occupancy and lower parking revenue in our commercial portfolio and (ii) lower occupancy and higher operating expenses, partially offset by higher rents and lower concessions in our multifamily portfolio.

Operating Portfolio

• The operating multifamily portfolio was 89.1% leased and 87.2% occupied as of September 30, 2025, compared to 89.0% and 85.8% as of June 30, 2025. Our Same Store multifamily portfolio was 93.1% leased and 92.2% occupied as of September 30, 2025, compared to 94.7% and 92.8% as of June 30, 2025.

• In our Same Store multifamily portfolio, effective rents decreased by 0.8% for new leases and increased by 4.6% upon renewal while achieving a 56.3% renewal rate during the third quarter.

• The operating commercial portfolio was 77.6% leased and 75.7% occupied as of September 30, 2025, compared to 76.5% and 74.8% as of June 30, 2025, at our share.

• Executed approximately 182,000 square feet of office leases at our share during the three months ended September 30, 2025, including approximately 149,000 square feet of new leases. Second-generation leases generated an 11.1% rental rate increase on a cash basis and a 12.3% rental rate increase on a GAAP basis.

• Executed approximately 461,000 square feet of office leases at our share during the nine months ended September 30, 2025, including approximately 250,000 square feet of new leases. Second-generation leases generated a 0.1% rental rate decrease on a cash basis and a 1.1% rental rate increase on a GAAP basis.

Development Portfolio

Under-Construction

• During the quarter, we completed the construction of Valen, a 355-unit multifamily asset.

Development Pipeline

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

Third-Party Asset Management and Real Estate Services Business

• For the three months ended September 30, 2025, revenue from third-party real estate services, including reimbursements, was $14.7 million. Excluding reimbursements and service revenue from our interests in real estate ventures, revenue from our third-party asset management and real estate services business was $6.6 million, primarily driven by $4.4 million of property and asset management fees.

Balance Sheet

• As of September 30, 2025, our total enterprise value was approximately $4.0 billion, comprising 73.0 million common shares and units valued at $1.6 billion, and debt (net of premium / (discount) and deferred financing costs) at our share of $2.5 billion, less cash and cash equivalents at our share of $65.9 million.

• As of September 30, 2025, we had $64.4 million of cash and cash equivalents ($65.9 million of cash and cash equivalents at our share), and $585.2 million of undrawn capacity under our revolving credit facility.

• Net Debt to annualized Adjusted EBITDA at our share for the three months ended September 30, 2025 was 12.6x, and our Net Debt / total enterprise value was 59.8% as of September 30, 2025.

Investing and Financing Activities

• In July 2025, we sold The Batley, a multifamily asset with 432 units in Washington, DC, for $155.0 million.

• During the third quarter of 2025, we repurchased and retired 3.1 million common shares for $62.9 million, a weighted average purchase price per share of $20.21.

Subsequent to September 30, 2025

• Through October 24, 2025, we repurchased and retired 383,758 common shares for $7.9 million, a weighted average purchase price per share of $20.49, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

Dividends

• On October 23, 2025, our Board of Trustees declared a quarterly dividend of $0.175 per common share, payable on November 20, 2025 to shareholders of record as of November 6, 2025.

About JBG SMITH

JBG SMITH owns, operates, and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, DC, most notably National Landing, that we believe have long-term growth potential and appeal to residential, office, and retail tenants. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, highly amenitized, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH’s holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon’s headquarters; Virginia Tech’s $1 billion Innovation Campus; proximity to the Pentagon; and our placemaking initiatives and public infrastructure improvements. JBG SMITH’s dynamic portfolio currently comprises 11.8 million square feet at share of multifamily, office and retail assets, 98% of which are Metro-served. It also maintains a development pipeline encompassing 8.7 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings. For more information on JBG SMITH please visit www.jbgsmith.com.

Forward-Looking Statements

Certain statements contained herein may constitute “forward-looking statements” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results, financial condition and business of JBG SMITH Properties (“JBG SMITH,” the “Company,” “we,” “us,” “our” or similar terms) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximate,” “hypothetical,” “potential,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,” “may” or similar expressions in this earnings release. We also note the following forward-looking statements: whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet, estimated number of units and estimated potential development density are accurate; expected timing, completion, and delivery dates for the projects we are developing and the ability of any or all of our demand drivers to materialize and their effect on economic impact, job growth, expansion of public transportation and related demand in the National Landing submarket.

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, including reductions in federal government spending, headcount, or leasing and the impacts of the government shutdown, the timing of and costs associated with development and property improvements, tariffs and other trade barriers, supply chain disruptions, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Cautionary Statement Concerning Forward-Looking Statements in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2024 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

We present certain financial information and metrics in this release “at JBG SMITH Share,” which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, “real estate ventures”) as applied to these financial measures and metrics. Financial information “at JBG SMITH Share” is calculated on an asset-by-asset basis by applying our percentage economic interest to each applicable line item of that asset’s financial information. “At JBG SMITH Share” information, which we also refer to as being “at share,” “our pro rata share” or “our share,” is not, and is not intended to be, a presentation in accordance with GAAP. Given that a portion of our assets are held through real estate ventures, we believe this form of presentation, which presents our economic interests in the partially owned entities, provides investors valuable information regarding a significant component of our portfolio, its composition, performance and capitalization.

We do not control the unconsolidated real estate ventures and do not have a legal claim to our co-venturers’ share of assets, liabilities, revenue and expenses. The operating agreements of the unconsolidated real estate ventures generally allow each co-venturer to receive cash distributions to the extent there is available cash from operations. The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions.

With respect to any such third-party arrangement, we would not be in a position to exercise sole decision-making authority regarding the property, real estate venture or other entity, and may, under certain circumstances, be exposed to economic risks not present were a third-party not involved. We and our respective co-venturers may each have the right to trigger a buy-sell or forced sale arrangement, which could cause us to sell our interest, or acquire our co-venturers’ interests, or to sell the underlying asset, either on unfavorable terms or at a time when we otherwise would not have initiated such a transaction. Our real estate ventures may be subject to debt, and the repayment or refinancing of such debt may require equity capital calls. To the extent our co-venturers do not meet their obligations to us or our real estate ventures or they act inconsistent with the interests of the real estate venture, we may be adversely affected. Because of these limitations, the non-GAAP “at JBG SMITH Share” financial information should not be considered in isolation or as a substitute for our consolidated financial statements as reported under GAAP.

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 10.0% subordinated interest in one commercial building and our 33.5% subordinated interest in four commercial buildings, as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures, as our investment in each real estate venture is zero, we do not anticipate receiving any near-term cash flow distributions from the real estate ventures, and we have not guaranteed their obligations or otherwise committed to providing financial support.

Non-GAAP Financial Measures

This release includes non-GAAP financial measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why JBG SMITH’s management believes that the presentation of these measures provides useful information to investors regarding JBG SMITH’s financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this earnings release. Our presentation of non-GAAP financial measures may not be comparable to similar non-GAAP measures used by other companies. In addition to “at share” financial information, the following non-GAAP measures are included in this release:

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), EBITDA for Real Estate (“EBITDAre”) and “Adjusted EBITDA” are non-GAAP financial measures. EBITDA and EBITDAre are used by management as supplemental operating performance measures, which we believe help investors and lenders meaningfully evaluate and compare our operating performance from period-to-period by removing from our operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps and caps) and certain non-cash expenses (primarily depreciation and amortization expense on our assets). EBITDAre is computed in accordance with the definition established by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expense, gains (losses) on sales of real estate and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. EBITDA and EBITDAre are not substitutes for net income (loss) (computed in accordance with GAAP) and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate,gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, litigation costs and income from investments. We believe that adjusting such items not considered part of our comparable operations provides a meaningful measure to evaluate and compare our performance from period-to-period.

Because EBITDA, EBITDAre and Adjusted EBITDA have limitations as analytical tools, we use EBITDA, EBITDAre and Adjusted EBITDA to supplement GAAP financial measures. Additionally, we believe that users of these measures should consider EBITDA, EBITDAre and Adjusted EBITDA in conjunction with net income (loss) and other GAAP measures in understanding our operating results.

Funds from Operations (“FFO”), “Core FFO” and Funds Available for Distribution (“FAD”) are non-GAAP financial measures. FFO is computed in accordance with the definition established by Nareit in the Nareit FFO White Paper – 2018 Restatement. Nareit defines FFO as net income (loss) (computed in accordance with GAAP), excluding depreciation and amortization expense related to real estate, gains (losses) from the sale of certain real estate assets, gains (losses) from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

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

FAD represents Core FFO adjusted for recurring capital expenditures and Second-generation tenant improvements and leasing commissions, net deferred rent activity, third-party lease liability assumption payments, recurring share-based compensation expense, accretion of acquired below-market leases, net of amortization of acquired above-market leases, amortization of debt issuance costs and other non-cash income and charges, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

We believe FFO, Core FFO and FAD are meaningful non‑GAAP financial measures useful in comparing our levered operating performance from period-to-period and as compared to similar real estate companies because these non‑GAAP measures exclude real estate depreciation and amortization expense, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions, and other non-comparable income and expenses. FFO, Core FFO and FAD do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as a performance measure or cash flow as a liquidity measure. FFO, Core FFO and FAD may not be comparable to similarly titled measures used by other companies.

“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 September 30, 2025 multiplied by four. Management believes Annualized NOI provides useful information in understanding our financial performance over a 12‑month period, however, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12‑month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this earnings release. There can be no assurance that the Annualized NOI shown will reflect our actual results of operations over any 12‑month period.

Definitions

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

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

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

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

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

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

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

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

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

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

“Under-Construction” refers to assets that were under construction during the three months ended September 30, 2025.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	in thousands		September 30, 2025				December 31, 2024
	ASSETS
	Real estate, at cost:
	Land and improvements		$	1,026,236			$	1,109,172
	Buildings and improvements			4,035,802				4,083,937
	Construction in progress, including land			170,333				338,333
				5,232,371				5,531,442
	Less: accumulated depreciation			(1,449,973	)			(1,419,983	)
	Real estate, net			3,782,398				4,111,459
	Cash and cash equivalents			64,437				145,804
	Restricted cash			23,342				37,388
	Tenant and other receivables			23,797				23,478
	Deferred rent receivable			179,853				170,153
	Investments in unconsolidated real estate ventures			91,539				93,654
	Deferred leasing costs, net			68,367				69,821
	Intangible assets, net			51,988				47,000
	Other assets, net			131,382				131,318
	Assets held for sale			—				190,465
	TOTAL ASSETS		$	4,417,103			$	5,020,540
	LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
	Liabilities:
	Mortgage loans, net		$	1,577,796			$	1,767,173
	Revolving credit facility			160,000				85,000
	Term loans, net			718,450				717,853
	Accounts payable and accrued expenses			79,385				101,096
	Other liabilities, net			124,691				115,827
	Liabilities related to assets held for sale			—				901
	Total liabilities			2,660,322				2,787,850
	Commitments and contingencies
	Redeemable noncontrolling interests			566,200				423,632
	Total equity			1,190,581				1,809,058
	TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY		$	4,417,103			$	5,020,540

________________________

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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
in thousands, except per share data		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
REVENUE
Property rental		$	103,981			$	113,349			$	311,989			$	348,521
Third-party real estate services, including reimbursements			14,711				17,061				44,430				52,326
Other revenue			5,178				5,616				14,616				15,683
Total revenue			123,870				136,026				371,035				416,530
EXPENSES
Depreciation and amortization			48,164				50,050				143,311				158,211
Property operating			36,564				39,258				104,876				110,791
Real estate taxes			12,284				11,812				37,107				40,006
General and administrative:
Corporate and other			13,214				11,881				45,491				43,855
Third-party real estate services			14,058				16,088				43,691				57,065
Transaction and other costs			494				667				5,251				3,005
Total expenses			124,778				129,756				379,727				412,933
OTHER INCOME (EXPENSE)
Income (loss) from unconsolidated real estate ventures, net			(664	)			(745	)			(165	)			4
Interest and other income, net			2,378				4,573				3,601				10,105
Interest expense			(34,781	)			(35,267	)			(105,552	)			(97,400	)
Gain (loss) on the sale of real estate, net			4,660				(5,352	)			47,029				(5,066	)
Gain (loss) on the extinguishment of debt, net			—				43				(2,402	)			43
Impairment loss			(4,771	)			—				(45,067	)			(18,236	)
Total other income (expense)			(33,178	)			(36,748	)			(102,556	)			(110,550	)
LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT			(34,086	)			(30,478	)			(111,248	)			(106,953	)
Income tax (expense) benefit			(926	)			(831	)			(643	)			40
NET LOSS			(35,012	)			(31,309	)			(111,891	)			(106,913	)
Net loss attributable to redeemable noncontrolling interests			6,457				4,365				18,375				12,353
Net (income) loss attributable to noncontrolling interests			—				(36	)			—				10,931
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	(28,555	)		$	(26,980	)		$	(93,516	)		$	(83,629	)
LOSS PER COMMON SHARE – BASIC AND DILUTED		$	(0.48	)		$	(0.32	)		$	(1.35	)		$	(0.95	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC AND DILUTED			60,606				85,292				70,062				89,637

________________________

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

EBITDA, EBITDAre AND ADJUSTED EBITDA RECONCILIATIONS (NON-GAAP)
(Unaudited)
	dollars in thousands		Three Months Ended September 30,								Nine Months Ended September 30,
			2025				2024				2025				2024
	EBITDA, EBITDAre and Adjusted EBITDA
	Net loss		$	(35,012	)		$	(31,309	)		$	(111,891	)		$	(106,913	)
	Depreciation and amortization expense			48,164				50,050				143,311				158,211
	Interest expense			34,781				35,267				105,552				97,400
	Income tax expense (benefit)			926				831				643				(40	)
	Unconsolidated real estate ventures allocated share of above adjustments			1,853				1,837				5,470				6,219
	EBITDA attributable to redeemable noncontrolling interests in consolidated real estate ventures			(905	)			—				(1,175	)			—
	EBITDA		$	49,807			$	56,676			$	141,910			$	154,877
	(Gain) loss on the sale of real estate, net			(4,660	)			5,352				(47,029	)			5,066
	Pro rata share of gain on the sale of unconsolidated real estate assets			—				—				(1,500	)			(480	)
	Real estate impairment loss			4,771				—				36,584				—
	EBITDAre		$	49,918			$	62,028			$	129,965			$	159,463
	Transaction and other costs (1)			494				667				5,251				3,005
	Litigation costs (2)			—				—				2,500				—
	Income from investments, net			(2,232	)			(2,534	)			(1,954	)			(3,206	)
	Impairment loss related to non-depreciable real estate			—				—				8,483				18,236
	(Gain) loss on the extinguishment of debt, net			—				(43	)			2,402				(43	)
	Earnings and distributions in excess of our investment in unconsolidated real estate venture			(173	)			(335	)			(574	)			(1,006	)
	Unconsolidated real estate ventures allocated share of above adjustments			—				227				—				227
	Adjusted EBITDA		$	48,007			$	60,010			$	146,073			$	176,676
	Net Debt to Annualized Adjusted EBITDA (3)			12.6		x		10.6		x		12.4		x		10.8		x
											September 30, 2025				September 30, 2024
	Net Debt (at JBG SMITH Share)
	Consolidated indebtedness (4)										$	2,451,155			$	2,615,724
	Unconsolidated indebtedness (4)											34,248				66,693
	Total consolidated and unconsolidated indebtedness											2,485,403				2,682,417
	Less: cash and cash equivalents											65,859				141,669
	Net Debt (at JBG SMITH Share)										$	2,419,544			$	2,540,748

________________________
Note: All EBITDA measures as shown above are attributable to common limited partnership units (“OP Units”) and certain fully vested incentive equity awards that may be convertible into OP Units.
(1)		Includes costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(2)		Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations.
(3)		Quarterly Adjusted EBITDA is annualized by multiplying by four. Adjusted EBITDA for the nine months ended September 30, 2025 and 2024 is annualized by multiplying by 1.33.
(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 September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
	FFO and Core FFO
	Net loss attributable to common shareholders	$	(28,555	)		$	(26,980	)		$	(93,516	)		$	(83,629	)
	Net loss attributable to redeemable noncontrolling interests		(6,457	)			(4,365	)			(18,375	)			(12,353	)
	Net income (loss) attributable to noncontrolling interests		—				36				—				(10,931	)
	Net loss		(35,012	)			(31,309	)			(111,891	)			(106,913	)
	(Gain) loss on the sale of real estate, net of tax		(4,660	)			5,352				(47,029	)			3,854
	Pro rata share of gain on the sale of unconsolidated real estate assets		—				—				(1,500	)			(480	)
	Real estate depreciation and amortization		47,837				48,385				140,306				153,203
	Real estate impairment loss		4,771				—				36,584				—
	Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures		777				796				2,342				3,086
	FFO attributable to redeemable noncontrolling interests in consolidated real estate ventures		(905	)			—				(1,175	)			—
	FFO Attributable to OP Units	$	12,808			$	23,224			$	17,637			$	52,750
	FFO attributable to redeemable noncontrolling interests		(2,679	)			(3,725	)			(3,785	)			(8,238	)
	FFO Attributable to Common Shareholders	$	10,129			$	19,499			$	13,852			$	44,512
	FFO attributable to OP Units	$	12,808			$	23,224			$	17,637			$	52,750
	Transaction and other costs, net of tax (1)		494				754				5,251				2,738
	Litigation costs (2)		—				—				2,500				—
	Income from investments, net of tax		(1,691	)			(1,919	)			(1,480	)			(2,428	)
	Impairment loss related to non-depreciable real estate		—				—				8,483				18,236
	(Gain) loss from mark-to-market on derivative instruments, net of noncontrolling interests		(3	)			7				(59	)			77
	(Gain) loss on the extinguishment of debt, net		—				(43	)			2,402				(43	)
	Earnings and distributions in excess of our investment in unconsolidated real estate venture		(173	)			(335	)			(574	)			(1,006	)
	Amortization of management contracts intangible, net of tax		74				1,059				1,752				3,178
	Unconsolidated real estate ventures allocated share of above adjustments		(2	)			230				(2	)			230
	Core FFO Attributable to OP Units	$	11,507			$	22,977			$	35,910			$	73,732
	Core FFO attributable to redeemable noncontrolling interests		(2,407	)			(3,685	)			(6,898	)			(11,438	)
	Core FFO Attributable to Common Shareholders	$	9,100			$	19,292			$	29,012			$	62,294
	FFO per common share – diluted	$	0.17			$	0.23			$	0.20			$	0.50
	Core FFO per common share – diluted	$	0.15			$	0.23			$	0.41			$	0.69
	Weighted average shares – diluted (FFO and Core FFO)		60,965				85,446				70,272				89,806
	See footnotes on page 14.

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP)
(Unaudited)
	in thousands, except per share data		Three Months Ended September 30,								Nine Months Ended September 30,
			2025				2024				2025				2024
	FAD
	Core FFO attributable to OP Units		$	11,507			$	22,977			$	35,910			$	73,732
	Recurring capital expenditures and Second-generation tenant improvements and leasing commissions (3)			(9,851	)			(10,221	)			(30,737	)			(31,351	)
	Straight-line and other rent adjustments (4)			1,561				(3,817	)			4,071				(7,756	)
	Third-party lease liability assumption payments			—				—				—				(25	)
	Share-based compensation expense			4,808				4,810				18,685				25,053
	Amortization of debt issuance costs			3,554				4,030				11,389				11,963
	Unconsolidated real estate ventures allocated share of above adjustments			321				381				676				1,041
	Non-real estate depreciation and amortization			250				290				759				883
	FAD Available to OP Units (A)		$	12,150			$	18,450			$	40,753			$	73,540
	Distributions to common shareholders and unitholders(B)		$	13,712			$	17,891			$	46,654			$	55,901
	FAD Payout Ratio (B÷A) (5)			112.9		%		97.0		%		114.5		%		76.0		%
	Capital Expenditures
	Maintenance and recurring capital expenditures		$	4,059			$	4,808			$	10,915			$	10,365
	Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures			9				—				18				16
	Second-generation tenant improvements and leasing commissions			5,646				5,413				19,410				20,949
	Share of Second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures			137				—				394				21
	Recurring capital expenditures and Second-generation tenant improvements and leasing commissions			9,851				10,221				30,737				31,351
	Non-recurring capital expenditures			11,487				1,718				25,638				8,508
	Share of non-recurring capital expenditures from unconsolidated real estate ventures			8				—				8				28
	First-generation tenant improvements and leasing commissions			1,660				1,367				7,580				6,584
	Share of First-generation tenant improvements and leasing commissions from unconsolidated real estate ventures			136				18				219				105
	Non-recurring capital expenditures			13,291				3,103				33,445				15,225
	Total JBG SMITH Share of Capital Expenditures		$	23,142			$	13,324			$	64,182			$	46,576

________________________
(1)		Includes costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(2)		Represents accrual for loss contingencies related to unresolved legal matters. Included in “Corporate and other general and administrative expense” in the Condensed Consolidated Statements of Operations.
(3)		Includes amounts, at JBG SMITH Share, related to unconsolidated real estate ventures.
(4)		Includes straight-line rent, above/below market lease amortization and lease incentive amortization.
(5)		The quarterly FAD payout ratio is not necessarily indicative of an amount for the full year due to fluctuation in the timing of capital expenditures, the commencement of new leases and the seasonality of our operations.

NOI RECONCILIATIONS (NON-GAAP)
(Unaudited)
	dollars in thousands		Three Months Ended September 30,								Nine Months Ended September 30,
			2025				2024				2025				2024
	Net loss attributable to common shareholders		$	(28,555	)		$	(26,980	)		$	(93,516	)		$	(83,629	)
	Net loss attributable to redeemable noncontrolling interests			(6,457	)			(4,365	)			(18,375	)			(12,353	)
	Net income (loss) attributable to noncontrolling interests			—				36				—				(10,931	)
	Net loss			(35,012	)			(31,309	)			(111,891	)			(106,913	)
	Add:
	Depreciation and amortization expense			48,164				50,050				143,311				158,211
	General and administrative expense:
	Corporate and other			13,214				11,881				45,491				43,855
	Third-party real estate services			14,058				16,088				43,691				57,065
	Transaction and other costs			494				667				5,251				3,005
	Interest expense			34,781				35,267				105,552				97,400
	(Gain) loss on the extinguishment of debt, net			—				(43	)			2,402				(43	)
	Impairment loss			4,771				—				45,067				18,236
	Income tax expense (benefit)			926				831				643				(40	)
	Less:
	Third-party real estate services, including reimbursements revenue			14,711				17,061				44,430				52,326
	Income (loss) from unconsolidated real estate ventures, net			(664	)			(745	)			(165	)			4
	Interest and other income, net			2,378				4,573				3,601				10,105
	Gain (loss) on the sale of real estate, net			4,660				(5,352	)			47,029				(5,066	)
	Adjustments:
	NOI attributable to unconsolidated real estate ventures at our share			1,012				1,292				3,289				5,506
	Real estate venture partner’s share of NOI attributable to consolidated real estate ventures			(915	)			—				(1,187	)			—
	Non-cash rent adjustments (1)			1,561				(3,817	)			4,071				(7,756	)
	Other adjustments (2)			(3,083	)			2,966				(984	)			270
	Total adjustments			(1,425	)			441				5,189				(1,980	)
	NOI		$	58,886			$	68,336			$	189,811			$	211,427
	Less: out-of-service NOI loss (3)			(1,677	)			(2,261	)			(5,366	)			(7,632	)
	Operating Portfolio NOI		$	60,563			$	70,597			$	195,177			$	219,059
	Non-Same Store NOI (4)			6,507				12,672				26,457				40,704
	Same Store NOI (5)		$	54,056			$	57,925			$	168,720			$	178,355
	Change in Same Store NOI			(6.7	)	%						(5.4	)	%
	Number of properties in Same Store pool			33								33

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

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251028840321/en/

Kevin Connolly

Executive Vice President, Portfolio Management & Investor Relations

(240) 333‑3837

[email protected]

KEYWORDS: District of Columbia Maryland United States North America

INDUSTRY KEYWORDS: Professional Services Other Construction & Property Residential Building & Real Estate Commercial Building & Real Estate Finance Construction & Property REIT

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