JBG SMITH Properties (JBGS) investor relations material

Executive summary

• Net loss attributable to common shareholders was $19.2 million ($0.29/share) for Q2 2025 and $65.0 million ($0.87/share) for the first half, compared to $24.4 million ($0.27/share) and $56.6 million ($0.63/share) in 2024.

• Strategic pivot from multifamily to office investments due to distressed office valuations and attractive multifamily pricing, with a focus on long-term NAV per share growth.

• Sold $452 million of assets at a 4.6% cap rate and acquired Tysons Dulles Plaza for $42.3 million at a >20% in-place cap rate, with plans for multifamily redevelopment.

• Multifamily property revenue increased due to lease-up of new assets and higher rents, but was offset by asset sales; commercial property revenue and NOI declined due to asset dispositions and lower occupancy.

• Share repurchases totaled 23.3 million shares for $372.4 million in the first half, with $499.2 million remaining under the repurchase plan.

Financial highlights

• Q2 2025 property rental revenue: $106.5 million (down 5.4% YoY); six months: $208.0 million (down 11.6%).

• Q2 2025 net loss: $19.2 million ($0.29/share); Core FFO: $12.7 million ($0.19/share); FFO attributable to common shareholders: $9.95 million; six months: $25.0 million.

• Annualized NOI was $268.4 million, down from $270.1 million in Q1; Same Store NOI decreased 3.0% quarter-over-quarter.

• Interest expense increased 11.3% in Q2 and 13.9% in the first half due to higher debt balances and lower capitalized interest.

• Impairment losses of $31.8 million in Q2 and $40.3 million in the first half, mainly related to The Batley and a development parcel.

Outlook and guidance

• Focus remains on asset recycling, share repurchases, and capital allocation to maximize long-term NAV per share.

• New investments expected to be funded by asset sales; multifamily assets are being marketed for sale.

• Office market headwinds persist, with plans to repurpose underutilized office assets; office market recovery in Northern Virginia projected to be gradual, with long-term benefits from increased defense spending.

• In-service multifamily portfolio was 92.9% occupied at June 30, 2025, down 140 bps from March 31, 2025; effective rents up 1.0% for new leases and 8.9% on renewals.