Management Letter - Form 8-K

Management Letter

April 30, 2024

Our Fellow Shareholders:

The most influential factor in our business continues to be inflation and the interest rate environment. As long as this remains uncertain and unpredictable, we should expect to see constrained lending, conservative valuations, and reluctance on the part of companies and developers to make significant new investments. We are well positioned for this environment and with our sale of Central Place Tower this quarter, again proved that we can access private capital in creative and constructive ways, even in a constrained capital markets environment. For a company in the midst of an important strategic transition with a sizeable development pipeline and trading at a meaningful discount to NAV, this access to capital is critically important. Many saw the news that Monumental Sports & Entertainment elected to keep the Wizards and Capitals in DC. While this outcome was a missed opportunity for us, the teams' desire to relocate to Potomac Yard put National Landing on the map for other potential anchors and highlighted - in a very visible way - the long-term attractiveness of the submarket. There will be other opportunities, and the process we undertook has only increased our likelihood of landing them. In recognition of our ongoing repositioning of National Landing and the projects that we delivered in 2023, JBG SMITH was named the Washington Business Journal Developer of the Year. We are extremely proud and grateful for this important recognition. It is a testament to the skill and determination of our very capable team and our many partners throughout the region that help us deliver every day.

Below are highlights since last quarter:

We closed $176.8 million of capital recycling transactions, representing an average capitalization rate of 4.0% after accounting for known and expected vacates. These transactions include the sale of Central Place Tower and North End Retail. Proceeds were used to deleverage our balance sheet and provide capacity for accretive investments.

Our multifamily portfolio continued to exhibit strong NOI and renewal lease rate growth. Multifamily Same Store NOI grew 11.1% in the first quarter, driven by higher market rents, higher occupancy, and lower concessions. Across the portfolio, we increased effective rents by 9.4% upon renewal while maintaining a 52.4% renewal rate.

Prospective office tenant tour activity in National Landing was over 2x the level we saw in the first quarter of 2023 and the highest we've seen since before the pandemic. We are very encouraged by the pipeline of tenants in the market looking for space that is well-located and proximate to amenities, just like the kind of amenity-rich environment we've created in National Landing.

The Washington Housing Initiative (WHI) Impact Pool surpassed its goal of financing 3,000 workforce housing units. Earlier this month, the WHI Impact Pool financed Montgomery Housing Partnership's acquisition of Franklin Apartments, a 185-unit age-restricted housing community in Takoma Park, MD. With the addition of this asset, the WHI Impact Pool has invested in 3,018 workforce housing units across five jurisdictions, exceeding its goal to finance 3,000 units by 2025.

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On Earth Day, we released our annual Sustainability Report, highlighting our accomplishments and progress made throughout 2023. We encourage you to access our Sustainability Report by visiting our website at https://www.jbgsmith.com/about/sustainability.

Capital Allocation

Though institutional capital remains largely sidelined, we continued to execute our plan to dispose of non-core assets, successfully closing $176.8 million of asset dispositions during the first quarter, including (i) Central Place Tower, a 550,000 square foot office tower in Arlington, Virginia, for $162.5 million at our 50% share (adjusting for credits as well as other payments made by the purchaser, the sale price equates to approximately $660 per square foot), and (ii) North End Retail, a 27,000 square foot retail asset in the U Street/Shaw submarket of Washington, DC, for $14.3 million. These sales represent a 4.0% average capitalization rate after accounting for known and expected vacates and an estimated 6.0% - 6.5% capitalization rate once re-stabilized.

We expect new investments, including development projects, acquisitions, and share repurchases, to be largely funded, whether up front or after the fact, by asset recycling. Since 2017, we have raised $3.9 billion of capital through dispositions and an equity issuance, and we have used those proceeds to match fund our $3.9 billion of investment in development, share repurchases, and multifamily acquisitions - furthering our transition to a majority multifamily company. We believe share repurchases continue to be the most accretive use of capital available to us given the material discount of our share price to NAV. Our strong balance sheet and ample liquidity afford us the ability to capitalize on this disconnect. As such, year-to-date, we have repurchased 3.0 million shares at a weighted average price of $16.50, totaling $49.4 million. Since the inception of our share repurchase program in 2020, we have repurchased 48.9 million shares, or approximately 33% of shares and OP units outstanding as of December 31, 2019, at a weighted average price per share of $20.61, totaling $1.0 billion.

We continue to advance the design and entitlement of our land bank to maximize value and monetization opportunities. We expect our 9.3 million square foot Development Pipeline to be entitled by the end of 2025. When construction costs and interest rates normalize, we will be prepared with an attractive portfolio of shovel-ready growth opportunities, and plan to source joint venture capital as a means of funding these developments.

Financial and Operating Metrics

For the three months ended March 31, 2024, we reported Core FFO attributable to common shareholders of $26.9 million, or $0.29 per diluted share. Annualized NOI increased 0.6% quarter-over-quarter, excluding assets that were sold, recapitalized, or taken out of service. Our multifamily portfolio ended the quarter at 95.9% leased and 94.3% occupied. Our office portfolio ended the quarter at 84.6% leased and 83.1% occupied.

Based on known tenant vacates resulting from hybrid work trends and tenants seeking to repurpose space for flexibility, we expect downward pressure on our earnings. We expect this pressure to persist at least through the end of 2025. Additionally, interest expense will increase as we deliver our under-construction assets and cease capitalizing interest on those assets. We expect these pressures will be offset by additional income from the delivery and stabilization of 1900 Crystal Drive (The Grace and Reva) and 2000/2001 South Bell Street; rent growth in our existing multifamily portfolio given the limited multifamily supply pipeline in the DC metro area; and office demand in National Landing seeking proximity to the Pentagon, local tech talent, and the placemaking attractions we have delivered.

As of March 31, 2024, our Net Debt/total enterprise value was 58.4%, and our Net Debt/Annualized Adjusted EBITDA was 9.3x. Our floating rate exposure remains limited, with 94.6% of our debt fixed or hedged as of the end of the first quarter, after accounting for in-place interest rate swaps and caps. The remaining floating rate exposure is tied to our revolving credit facility and assets where the business plan warrants preserving flexibility.

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We continue to be well-positioned with respect to our near-term debt maturities with a weighted average debt maturity of 3.5 years, after adjusting for by-right extension options. We have $120.9 million of debt maturing by year-end 2024 (4.6% of total debt), which is non-recourse asset-level financing related to a non-core office asset in DC. Looking ahead to 2025, we have $424.0 million of maturities, after adjusting for by-right extension options, representing 16.2% of total debt; however, the majority of this debt is secured by multifamily assets which are readily refinanceable, even in today's debt capital markets. Our primarily non-recourse asset-level financing strategy continues to be most valuable in an environment like today, providing a floor on our downside risk.

Operating Portfolio

Multifamily Trends

Our multifamily portfolio ended the quarter at 95.9% leased and 94.3% occupied, in line with last quarter. Across our portfolio, we increased effective rents by 9.4% upon renewal for first quarter lease expirations while achieving a 52.4% renewal rate. Our multifamily portfolio generated 11.1% Same Store NOI growth for the three months ended March 31, 2024.

We believe our placemaking initiatives and the delivery of Amazon's new headquarters, which houses approximately 8,000 employees and has 1,000 open positions, will drive demand in the lease-up of 1900 Crystal Drive (The Grace and Reva) - two residential towers in the heart of National Landing totaling 808 units - which began leasing in January 2024. Move-ins commenced in February 2024, and we are seeing healthy levels of interest thus far, illustrated by a leasing pace that continues to exceed all five of our multifamily deliveries since 2017. As of quarter-end, 1900 Crystal Drive was approximately 16.0% leased, and as of April 28^th, it was 21.9% leased. With this asset's completion, the soon-to-follow delivery of 2000/2001 South Bell Street, and recent office asset sales, our transition to majority multifamily is almost complete.

Market-Wide (DC Metro) Multifamily Trends (based on CoStar, UrbanTurf, RealPage, and Apartment List data)

The DC area's multifamily market is, as we expected, coming into its own. Supply remains extraordinarily depressed by historic standards in the submarkets we track with only two projects totaling just over 600 units getting underway during the first quarter. Consequently, our region's share of units under construction (~5% of existing inventory) remains low compared to nearly double-digit figures in parts of the Sunbelt where the pipeline built up dramatically before the change in the rate environment choked new starts nationally. While the supply picture continues to improve, rent growth today is robust - the metro region posted a 3.2% increase in asking rents compared to the first quarter of last year. This performance is particularly strong relative to the other Gateway markets, which saw just a 0.9% increase over the same period and compared to many Sunbelt markets which are beginning to experience negative rent growth. Occupancy in the region also improved over the same period, rising to 94.8% - essentially in line with the Gateway markets at 95% but with the benefit of growing rents. This strong relative performance is likely related to the DC metro region's population growth outperformance (0.7%) among the Gateway markets - the majority of which were negative from 2020 to 2023. National Landing has seen particularly strong fundamentals within the metro region, posting rent growth over the same period of 5.4%, bolstering our ability to lease up what we believe to be the best new product in the market with no opening concessions. Due to these positive fundaments, we continue to believe that our market will be an outperformer as the true impact of a frozen new supply environment begins to fully manifest over the next 24 months.

Office Trends

Our office portfolio ended the fourth quarter at 84.6% leased and 83.1% occupied. In the first quarter, we executed 99,000 square feet of leases with a weighted average lease term of 2.3 years. For second generation leases, the rental rate mark-to-market increased 0.4%. While our first quarter leasing was light, tour activity during the quarter was over 2x the level we saw in the first quarter of 2023 and the highest we've seen since before the pandemic. We believe the amenity-rich environment we've created in National Landing and its proximity to tech talent and the

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Pentagon is attracting these tenants. We expect Amazon's continued hiring to lure office tenants from all over the country who wish to mine this deep and growing vein of talent.

Defense and technology tenants in National Landing continue to show their stickiness as office users; our assets in National Landing, excluding buildings going out of service, have been reporting physical occupancy at approximately 87% on peak days. That level of physical occupancy is ahead of Austin, Texas - Kastle's peak-day occupancy champion - which reported a best-day of 73.5%, and it far outstrips peak days in cities like New York (62.5%) and DC (56.2%). Nonetheless, our efforts to re-lease certain spaces will be targeted toward buildings with long-term viability, concentrating occupancy in areas of National Landing that we amenitized and are near multi-modal transportation. Moving 1800 South Bell Street, 2100 Crystal Drive, and 2200 Crystal Drive out of service reduces our office stock by approximately 743,000 square feet, or 12%, which should allow us to curate a healthier, long-term office market in National Landing over the next few years. We expect to repurpose these older, obsolete, and under-leased buildings for redevelopment, conversion to multifamily, hospitality, or another specialty use, ultimately reducing cannibalistic competitive supply in National Landing.

Market-Wide (DC Metro) Office Trends (based on JLL, CBRE, and Kastle Systems data)

The office market across the region remained relatively flat from a statistical perspective through the first quarter, with just over 1.0 million square feet of negative absorption and continued elevated vacancy rates of approximately 20% across DC, Maryland, and Virginia. Thematically, the flight to quality and location coupled with a static or shrinking footprint remain the most prevalent and defining characteristics of the current environment. These phenomena should provide a boost for the best-located and highest-quality second-generation assets with the right physical characteristics or repositioning plans. As a result of this bifurcation in the market, the headline vacancy statistics and average rents become less meaningful indicators of market health or trends. One indicator that is important is the delta between leasing activity and net absorption. In Northern Virginia, for example, leasing activity in the first quarter was just below 2.0 million square feet while net absorption was negative approximately 370,000 square feet. These data points speak to downsizing and consolidations, but also to the opportunity for capturing new activity even with reduced footprints; the market is thawing, and companies are finally making decisions. Interestingly, when CBRE analyzed net absorption for the quarter, they found that significant growth in tech and defense was offset by shrinkage in the government and professional services spaces. Our focus in National Landing is capturing demand from these growth sectors that align well with our existing tenancy and locational advantages. As we look to the future, we also continue to track inventory coming offline for residential conversion. In Virginia, these conversions have reached 9.3 million square feet of current office inventory which should soon be subtracted from vacancy and inventory - potentially needle moving for the market - especially when combined with a large swath of the market that may be underwater and unable to compete. Taken together, headline vacancy seems like even less of a true indicator of market health.

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The next two years are lining up to be among the most eventful in our company history. We will deliver and stabilize 1,583 apartment units in National Landing, expanding our growing multifamily portfolio by 25%. We will undertake the repositioning and re-leasing of many of our commercial office assets. We will continue to deliver and open the balance of our retail placemaking in National Landing. We expect to complete the entitlement of our 9.3 million square foot land bank. We will continue the expansion of our growing workforce housing business. All of this progress amidst a very challenging capital markets environment, the silver lining of which is constrained new supply of all product types, notably housing in the DC metro area. Where other markets struggle through the indigestion of oversupply, our markets seem headed for a period of constrained supply, continued population and job growth, and the growing rents that come with it. Indeed, the DC area is responding true to form with muted volatility and relative calm where turmoil elsewhere abounds. Our team remains committed to work impatiently and diligently to maximize long term value and every opportunity before us.

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For your continued support, trust and confidence, we remain deeply appreciative.

Sincerely,

W. Matthew Kelly

Chief Executive Officer

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Earnings Release

CONTACT

Kevin Connolly

Executive Vice President, Portfolio Management & Investor Relations

(240) 333-3837

[email protected]

JBG SMITH ANNOUNCES FIRST QUARTER 2024 RESULTS

Bethesda, MD (April 30, 2024) - JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended March 31, 2024 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our First Quarter 2024 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.

First Quarter 2024 Highlights

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(1) Includes gain on the sale of real estate totaling $197,000 and $40.7 million during the three months ended March 31, 2024 and 2023. Includes impairment loss of $17.2 million related to non-depreciable real estate assets recorded during the three months ended March 31, 2024.

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Operating Portfolio

Development Portfolio

Under-Construction

Development Pipeline

Third-Party Asset Management and Real Estate Services Business

Balance Sheet

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Investing and Financing Activities

Dividends

About JBG SMITH

JBG SMITH owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC, most notably National Landing. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, 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 new headquarters; Virginia Tech's under-construction $1 billion Innovation Campus; the submarket's proximity to the Pentagon; and JBG SMITH's deployment of 5G digital infrastructure. JBG SMITH's dynamic portfolio currently comprises 13.7 million square feet of high-growth multifamily, office and retail assets at share, 98% of which are Metro-served. It also maintains a development pipeline encompassing 9.3 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 and plans to maintain carbon neutral operations annually. 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

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release. We also note the following forward-looking statements: our annual dividend per share and dividend yield; 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, modifications and delivery dates for the projects we are developing; 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; planned infrastructure and educational improvements related to Amazon's additional headquarters and the Virginia Tech Innovation Campus; our development plans related to National Landing; whether we will be able to successfully shift the majority of our portfolio to multifamily; and whether the allocation of capital to our share repurchase plan has any impact on our share price.

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, 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, 2023 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 substantial 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.

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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 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, our 33.5% subordinated interest in four commercial buildings, our 49.0% interest in three commercial buildings and our 9.9% interest in one commercial building, 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 obligationsor 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 and 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 of 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

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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, income from investments, business interruption insurance proceeds, litigation settlement proceeds and share-based compensation expense related to the Formation Transaction and special equity awards. 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 and losses from the sale of certain real estate assets, gains and 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, share-based compensation expense related to the Formation Transaction and special equity awards, lease liability adjustments, income from investments, business interruption insurance proceeds, litigation settlement proceeds, 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 tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption (payments) refunds, 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

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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") 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 provides 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 also excludes deferred rent, 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 as a supplemental performance measure of our assets 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 REITs 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 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 March 31, 2024 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,

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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 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 March 31, 2024. 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.

"Formation Transaction" refers collectively to the spin-off on July 17, 2017 of substantially all of the assets and liabilities of Vornado Realty Trust's Washington, DC segment, which operated as Vornado / Charles E. Smith, and the acquisition of the management business and certain assets and liabilities of The JBG Companies.

"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 March 31, 2024.

"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 pursuit costs related to completed, potential and pursued transactions, demolition costs, and severance and other costs.

"Under-Construction" refers to assets that were under construction during the three months ended March 31, 2024.

9

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

10

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

11

EBITDA, EBITDAre AND ADJUSTED EBITDA RECONCILIATIONS (NON-GAAP)

(Unaudited)

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.

12

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP)

(Unaudited)

See footnotes on page 14.

13

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP)

(Unaudited)

14

NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)

15

Table of Contents

Disclosures

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 Investor Package. We also note the following forward-looking statements: the impact of disruptions to the credit and capital markets on our ability to access capital, including refinancing maturing debt; potential Net Operating Income growth and the assumptions on which such growth is premised; our estimated future leverage (Net Debt/Annualized Adjusted EBITDA and Net Debt/total enterprise value) profile; the economic impact, job growth, expansion of public transportation and related demand for multifamily and commercial properties of Amazon.com, Inc.'s ("Amazon") additional headquarters on the Washington, DC metropolitan area and National Landing and the speed with which such impact occurs and Amazon's plans for accelerated hiring and in-person work requirements; our ability to capitalize on future opportunities in Potomac Yard; changes to the amount and manner in which tenants use space; long-term trends in demand for housing (including multifamily) within major urban employment centers; whether National Landing will benefit economically from its proximity to the Pentagon and Virginia Tech's Innovation Campus; the anticipated growth of our target submarkets, including whether the Washington, DC area will outperform other parts of the country in light of anticipated supply trends; whether the real estate market will continue to see constrained lending, conservative valuations, and decreased development activities; whether downward pressure on our earnings will continue through the end of 2025; whether we will be able to offset increased interest expense with income from the delivery and stabilization of 1900 Crystal Drive and 2000/2001 South Bell Street; whether there will be increased demand for best located and highest quality second-generation assets; whether we will be able to successfully repurpose certain buildings in our portfolio and the impacts of those conversions, particularly in National Landing; whether our placemaking interventions and the delivery of Amazon's new headquarters will drive demand in the lease up of 1900 Crystal Drive and other assets; our annual dividend per share and dividend yield; annualized Net Operating Income; adjusted annualized Net Operating Income; expected timing, completion, modifications and delivery dates for the projects we are developing; the ability of any or all of our demand drivers to materialize at all or on the timeline anticipated and their effect on economic impact, job growth, expansion of public transportation and related demand in the National Landing submarket; the impacts of removing certain assets in our portfolio from service; the financial impacts of delivering 1900 Crystal Drive and 2000/2001 South Bell Street; the impact of our role as the developer, property manager and retail leasing agent in connection with Amazon's new headquarters; whether we will succeed in recycling our assets to fund new investments, including development projects, acquisitions, and share repurchases; whether we can successfully activate our land bank in National Landing by investing our own or raising third-party capital; whether we will succeed in re-leasing or otherwise strategically utilizing vacant properties; whether the allocation of capital to our share repurchase plan is the most accretive use of capital and whether share repurchases will allow us to capitalize on the disconnect between our share price and our net asset value; whether in the case of our Under-Construction assets and assets in the Development Pipeline, estimated square feet, estimated number of units, earliest potential construction start, the estimated completion date, the estimated date of entitlements, estimated stabilization date, Estimated Incremental Investment, Estimated Total Investment, Projected NOI Yield, weighted average Projected NOI Yield, weighted average completion date, yield on cost, weighted average stabilization date, intended type of asset use and potential tenants, Estimated Potential Development Density, and Estimated Stabilized NOI are accurate; whether our Under-Construction assets will deliver the Annualized NOI that we anticipate; whether the number of multifamily units and retailers in National Landing will increase to the levels anticipated or open on the timelines anticipated; whether we will be able to capitalize on our Development Pipeline when costs and rates normalize; and whether we will be able to successfully shift the majority of our portfolio to multifamily and concentrate our office portfolio in National Landing.

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, 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, 2023 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.

Organization and Basis of Presentation

JBG SMITH, a Maryland real estate investment trust, owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC, most notably National Landing. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, 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 new headquarters; Virginia Tech's under-construction $1 billion Innovation Campus; the submarket's proximity to the Pentagon; and JBG SMITH's deployment of 5G digital infrastructure. In addition, our third-party asset management and real estate services business provides fee-based real estate services to the legacy funds formerly organized by The JBG Companies (the "JBG Legacy Funds") and other third parties.

The information contained in this Investor Package does not purport to disclose all items required by the accounting principles generally accepted in the United States of America ("GAAP") and is unaudited information, unless otherwise indicated.

Pro Rata Information

We present certain financial information and metrics in this Investor Package "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 substantial 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 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, our 33.5% subordinated interest in four commercial buildings, our 49.0% interest in three commercial buildings and our 9.9% interest in one commercial building, 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.

Definitions

See pages 41-45 for definitions of terms used in this Investor Package.

Non-GAAP Measures

This Investor Package includes non-GAAP measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why our management believes that the presentation of these measures provides useful information to investors regarding our financial condition and results of operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this Investor Package. 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 Investor Package:

Company Profile

Financial Highlights

Portfolio Overview

Condensed Consolidated Balance Sheets

Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

Condensed Consolidated Statements of Operations

Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

Unconsolidated Real Estate Ventures

Other Tangible Assets and Liabilities

EBITDA, EBITDAre and Adjusted EBITDA

Note: All EBITDA measures as shown above are attributable to OP Units and certain fully vested incentive equity awards that may be convertible into OP Units.

FFO, Core FFO and FAD

See footnotes on page 15.

Third-Party Asset Mgmt and Real Estate Services Business

We allocate personnel and other costs to wholly owned properties (included in "Property operating expenses" and "General and administrative expense: corporate and other" in our consolidated statement of operations) and to properties owned by the third parties, real estate ventures and the JBG Legacy Funds (included in "General and administrative expense: third-party real estate services" in our consolidated statement of operations) using estimates of the time spent performing services related to properties in the respective portfolios and other allocation methodologies.

Allocated general and administrative expenses related to real estate ventures are calculated on an asset-by-asset basis by applying our real estate venture partners' respective economic interests to the total general and administrative expenses allocated to each asset. See "Pro Rata Adjusted General and Administrative Expenses" on the next page for a reconciliation of "General and administrative expenses: third-party real estate services" to "Pro Rata Adjusted General and Administrative Expenses."

Pro Rata Adjusted G&A

A - Removes $9.9 million of general and administrative expenses reimbursed by third-party owners of real estate we manage related to revenue which has been excluded from Service Revenue on page 16. Revenue from reimbursements is included in "Third-party real estate services, including reimbursements" in our consolidated statement of operations.

B - Reflects an adjustment to allocate our share of general and administrative expenses of unconsolidated real estate ventures from "Third-party real estate services" to "Corporate and other" and our consolidated real estate venture partners' share of general and administrative expenses from "Corporate and other" to "Third-party real estate services."

Summary & Sale Store NOI

Summary NOI

Summary NOI - Multifamily

Summary NOI - Commercial

NOI Reconciliations

Signed But Not Yet Commenced Leases