JBG SMITH Announces Fourth Quarter and Full Year 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-K for the year ended December 31, 2025 and reported its financial results.

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

Fourth Quarter 2025 Highlights

FOURTH QUARTER AND FULL YEAR COMPARISON

in millions, except per share amounts

Three Months Ended

Year Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Amount

Per Diluted

Amount

Per Diluted

Amount

Per Diluted

Amount

Per Diluted

Net loss (1)

(45.5)

(0.78)

(59.9)

(0.72)

(139.1)

(2.09)

(143.5)

(1.65)

FFO (2)

(7.3)

(0.12)

11.1

0.13

6.6

0.10

55.6

0.63

Core FFO

9.9

0.17

11.6

0.14

38.9

0.58

73.9

0.83

_____________

(1)

Includes gains (losses) on the sale of real estate of $46.6 million and $(2.8) million for the years ended December 31, 2025 and 2024. Includes impairment losses of $20.8 million and $65.8 million for the three months and year ended December 31, 2025, and $37.2 million and $55.4 million for the three months and year ended December 31, 2024.

(2)

Includes impairment losses related to non-depreciable real estate and intangible assets, net of tax, of $20.5 million and $28.9 million for the three months and year ended December 31, 2025, and $6.8 million and $25.0 million for the three months and year ended December 31, 2024.

Operating Portfolio

Development Portfolio

Under-Construction

Development Pipeline

Third-Party Real Estate Services Business

Balance Sheet

Investing and Financing Activities

Subsequent to December 31, 2025

Dividends

About JBG SMITH

JBG SMITH owns, operates, and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, DC, most notably National Landing, where through our focus on placemaking, we cultivate vibrant, highly amenitized, walkable neighborhoods. JBG SMITH's portfolio comprises 12.0 million square feet at share of multifamily, office, and retail assets, and a 3.6 million square-foot development pipeline. For more information on JBG SMITH please visit www.jbgsmith.com.

Forward-Looking Statements

Certain statements contained herein may constitute "forward-looking statements" as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results, financial condition and business of JBG SMITH Properties ("JBG SMITH," the "Company," "we," "us," "our" or similar terms) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximate," "hypothetical," "potential," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or similar expressions in this earnings release. We also note the following forward-looking statement: whether the estimated square feet in our development pipeline is accurate.

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, including reductions in federal government spending, headcount, or leasing, trends in multifamily housing demand in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10‑K for the year ended December 31, 2025 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

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

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

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

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 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 and intangible assets, 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 and intangible assets, 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, lease incentive amortization, accretion of acquired below-market leases, net of amortization of acquired above-market leases, third-party lease liability assumption payments, recurring share-based compensation expense, amortization of debt issuance costs and other non-cash income and charges, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

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

"Net Debt" is a non-GAAP financial measurement. Net Debt represents our total consolidated and unconsolidated indebtedness less cash and cash equivalents at our share. Net Debt is an important component in the calculations of Net Debt to Annualized Adjusted EBITDA and Net Debt / total enterprise value. We believe that Net Debt is a meaningful non-GAAP financial measure useful to investors because we review Net Debt as part of the management of our overall financial flexibility, capital structure and leverage. We may utilize a considerable portion of our cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents at our share may not be solely controlled by us. The deduction of cash and cash equivalents at our share from consolidated and unconsolidated indebtedness in the calculation of Net Debt, therefore, should not be understood to mean that it is available exclusively for debt reduction at any given time.

Net Operating Income ("NOI"), "Same Store NOI" and "Annualized NOI" are non-GAAP financial measures management uses to assess an asset's performance. The most directly comparable GAAP measure is net income (loss) attributable to common shareholders. We use NOI internally as a performance measure and believe NOI, Same Store NOI and Annualized NOI provide useful information to investors regarding our financial condition and results of operations because it reflects only property related revenue (which includes base rent, tenant reimbursements and other operating revenue, net of Free Rent and payments associated with assumed lease liabilities) less operating expenses and ground rent for operating leases, if applicable. NOI excludes deferred (straight-line) rent, commercial lease termination revenue, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and the amortization of acquired above-market leases and below-market ground lease intangibles. Management uses NOI, which includes our proportionate share of revenue and expenses attributable to real estate ventures, as a supplemental performance measure and believes it provides useful information to investors because it reflects only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of NOI as a measure of the operating performance of our assets is limited. NOI presented by us may not be comparable to NOI reported by other real estate investment trusts that define these measures differently. We believe to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) attributable to common shareholders as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Annualized NOI represents NOI for the three months ended December 31, 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 owned and entitled land on which we have the potential to commence construction subject to completion of design and/or market conditions. Excludes unentitled land parcels and land parcels controlled through an option agreement.

"Estimated Potential Development Density" reflects management's estimate of developable gross square feet based on our current business plans with respect to real estate owned as of December 31, 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 December 31, 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 period.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

in thousands

December 31, 2025

December 31, 2024

ASSETS

Real estate, at cost:

Land and improvements

1,019,967

1,109,172

Buildings and improvements

3,973,514

4,083,937

Construction in progress, including land

175,673

338,333

5,169,154

5,531,442

Less: accumulated depreciation

(1,408,641

)

(1,419,983

)

Real estate, net

3,760,513

4,111,459

Cash and cash equivalents

75,270

145,804

Restricted cash

28,020

37,388

Tenant and other receivables

21,810

23,478

Deferred rent receivable

182,891

170,153

Investments in unconsolidated real estate ventures

105,711

93,654

Deferred leasing costs, net

66,356

69,821

Intangible assets, net

30,333

47,000

Other assets, net

117,287

131,318

Assets held for sale

—

190,465

TOTAL ASSETS

4,388,191

5,020,540

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

Liabilities:

Mortgage loans, net

1,579,158

1,767,173

Revolving credit facility

205,000

85,000

Term loans, net

718,408

717,853

Accounts payable and accrued expenses

84,748

101,096

Other liabilities, net

131,945

115,827

Liabilities related to assets held for sale

—

901

Total liabilities

2,719,259

2,787,850

Commitments and contingencies

Redeemable noncontrolling interests

511,342

423,632

Total equity

1,157,590

1,809,058

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY

4,388,191

5,020,540

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

in thousands, except per share data

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

REVENUE

Property rental

104,812

108,429

416,801

456,950

Third-party real estate services, including reimbursements

17,797

17,139

62,227

69,465

Other revenue

4,954

5,214

19,570

20,897

Total revenue

127,563

130,782

498,598

547,312

EXPENSES

Depreciation and amortization

46,753

49,969

190,064

208,180

Property operating

36,838

35,818

141,714

146,609

Real estate taxes

11,756

12,600

48,863

52,606

General and administrative:

Corporate and other

13,678

14,935

59,169

58,790

Third-party real estate services

16,903

17,199

60,594

74,264

Transaction and other costs

972

2,312

6,223

5,317

Total expenses

126,900

132,833

506,627

545,766

OTHER INCOME (EXPENSE)

Loss from unconsolidated real estate ventures, net

(4,255

)

(7,126

)

(4,420

)

(7,122

)

Interest and other income, net

610

1,493

4,211

11,598

Interest expense

(36,485

)

(36,668

)

(142,037

)

(134,068

)

Gain (loss) on the sale of real estate, net

(396

)

2,313

46,633

(2,753

)

Gain (loss) on the extinguishment of debt, net

—

9,192

(2,402

)

9,235

Impairment loss

(20,780

)

(37,191

)

(65,847

)

(55,427

)

Total other income (expense)

(61,306

)

(67,987

)

(163,862

)

(178,537

)

LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT

(60,643

)

(70,038

)

(171,891

)

(176,991

)

Income tax (expense) benefit

4,473

(802

)

3,830

(762

)

NET LOSS

(56,170

)

(70,840

)

(168,061

)

(177,753

)

Net loss attributable to redeemable noncontrolling interests

10,623

9,849

28,998

22,202

Net loss attributable to noncontrolling interests

—

1,094

—

12,025

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

(45,547

)

(59,897

)

(139,063

)

(143,526

)

LOSS PER COMMON SHARE - BASIC AND DILUTED

(0.78

)

(0.72

)

(2.09

)

(1.65

)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED

59,346

84,441

67,361

88,330

Note: For complete financial statements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2025.

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

(Unaudited)

dollars in thousands

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

EBITDA, EBITDAre and Adjusted EBITDA

Net loss

(56,170

)

(70,840

)

(168,061

)

(177,753

)

Depreciation and amortization expense

46,753

49,969

190,064

208,180

Interest expense

36,485

36,668

142,037

134,068

Income tax expense (benefit)

(4,473

)

802

(3,830

)

762

Unconsolidated real estate ventures allocated share of above adjustments

1,639

1,947

7,109

8,166

EBITDA attributable to redeemable noncontrolling interests in consolidated real estate ventures

(611

)

—

(1,786

)

—

EBITDA

23,623

18,546

165,533

173,423

(Gain) loss on the sale of real estate, net

396

(2,313

)

(46,633

)

2,753

Pro rata share of gain on the sale of unconsolidated real estate assets

(93

)

—

(1,593

)

(480

)

Real estate impairment loss

—

37,191

36,584

37,191

EBITDAre

23,926

53,424

153,891

212,887

Transaction and other costs (1)

972

2,312

6,223

5,317

Litigation costs (2)

—

2,500

—

(Income) loss from investments, net

(64

)

(1,934

)

(3,270

)

Impairment loss related to non-depreciable real estate and intangible assets (3)

23,963

6,748

32,446

24,984

(Gain) loss on the extinguishment of debt, net

—

(9,192

)

2,402

(9,235

)

Earnings and distributions in excess of our investment in unconsolidated real estate venture

—

(309

)

(574

)

(1,315

)

Unconsolidated real estate ventures allocated share of above adjustments

182

—

182

227

Adjusted EBITDA

49,063

52,919

195,136

229,595

Net Debt to Annualized Adjusted EBITDA (4)

12.5

11.7

12.6

10.8

December 31, 2025

December 31, 2024

Net Debt (at JBG SMITH Share)

Consolidated indebtedness (5)

2,498,204

2,562,746

Unconsolidated indebtedness (5)

34,383

66,834

Total consolidated and unconsolidated indebtedness

2,532,587

2,629,580

Less: cash and cash equivalents

76,794

150,813

Net Debt (at JBG SMITH Share)

2,455,793

2,478,767

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)

Includes a $20.8 million impairment loss related to our wireless spectrum licenses for the three months and year ended December 31, 2025. Includes our proportionate share of impairment losses of $3.2 million related to unconsolidated real estate ventures for the three months and year ended December 31, 2025, and $6.7 million for the three months and year ended December 31, 2024.

(4)

Quarterly Adjusted EBITDA is annualized by multiplying by four.

(5)

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 December 31,

Year Ended December 31,

2025

2024

2025

2024

FFO and Core FFO

Net loss attributable to common shareholders

(45,547

)

(59,897

)

(139,063

)

(143,526

)

Net loss attributable to redeemable noncontrolling interests

(10,623

)

(9,849

)

(28,998

)

(22,202

)

Net loss attributable to noncontrolling interests

—

(1,094

)

—

(12,025

)

Net loss

(56,170

)

(70,840

)

(168,061

)

(177,753

)

(Gain) loss on the sale of real estate, net of tax

396

(2,313

)

(46,633

)

1,541

Pro rata share of gain on the sale of unconsolidated real estate assets, net of tax

(70

)

—

(1,570

)

(480

)

Real estate depreciation and amortization

46,302

48,307

186,608

201,510

Real estate impairment loss

—

37,191

36,584

37,191

Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures

984

892

3,326

3,978

FFO attributable to redeemable noncontrolling interests in consolidated real estate ventures

(611

)

—

(1,786

)

—

FFO Attributable to OP Units

(9,169

)

13,237

8,468

65,987

FFO attributable to redeemable noncontrolling interests

1,892

(2,123

)

(1,893

)

(10,361

)

FFO Attributable to Common Shareholders

(7,277

)

11,114

6,575

55,626

FFO attributable to OP Units

(9,169

)

13,237

8,468

65,987

Transaction and other costs, net of tax (1)

972

2,306

6,223

5,044

Litigation costs (2)

—

2,500

—

(Income) loss from investments, net of tax

(48

)

(1,463

)

(2,476

)

Impairment loss related to non-depreciable real estate and intangible assets, net of tax (3)

20,451

6,748

28,934

24,984

(Gain) loss from mark-to-market on derivative instruments, net of noncontrolling interests

(28

)

(87

)

(Gain) loss on the extinguishment of debt, net

—

(9,192

)

2,402

(9,235

)

Earnings and distributions in excess of our investment in unconsolidated real estate venture

—

(309

)

(574

)

(1,315

)

Amortization of management contracts intangible, net of tax

1,058

1,825

4,236

Unconsolidated real estate ventures allocated share of above adjustments

185

)

183

227

Core FFO Attributable to OP Units

12,501

13,803

48,411

87,535

Core FFO attributable to redeemable noncontrolling interests

(2,580

)

(2,214

)

(9,478

)

(13,652

)

Core FFO Attributable to Common Shareholders

9,921

11,589

38,933

73,883

FFO per common share - diluted

(0.12

)

0.13

0.10

0.63

Core FFO per common share - diluted

0.17

0.14

0.58

0.83

Weighted average shares - diluted (FFO and Core FFO)

59,571

84,594

67,574

88,500

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

(Unaudited)

in thousands, except per share data

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

FAD

Core FFO attributable to OP Units

12,501

13,803

48,411

87,535

Recurring capital expenditures and Second-generation tenant improvements and leasing commissions (4)

(6,994

)

(12,527

)

(37,731

)

(43,878

)

Straight-line and other rent adjustments (5)

(1,233

)

(1,726

)

2,838

(9,482

)

Third-party lease liability assumption payments

—

(25

)

Share-based compensation expense

4,834

3,261

23,519

28,314

Amortization of debt issuance costs

3,215

4,182

14,604

16,145

Unconsolidated real estate ventures allocated share of above adjustments

155

209

831

1,250

Non-real estate depreciation and amortization

379

287

1,138

1,170

FAD Available to OP Units (A)

12,857

7,489

53,610

81,029

Distributions to common shareholders and unitholders (B)

13,121

17,671

59,775

73,572

FAD Payout Ratio (B÷A) (6)

102.1

236.0

111.5

90.8

Capital Expenditures

Maintenance and recurring capital expenditures

5,927

5,965

16,842

16,330

Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures

Second-generation tenant improvements and leasing commissions

1,060

6,367

20,470

27,316

Share of Second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures

—

190

394

211

Recurring capital expenditures and Second-generation tenant improvements and leasing commissions

6,994

12,527

37,731

43,878

Non-recurring capital expenditures

13,444

6,965

39,082

15,473

Share of non-recurring capital expenditures from unconsolidated real estate ventures

—

First-generation tenant improvements and leasing commissions

6,018

3,530

13,598

10,114

Share of First-generation tenant improvements and leasing commissions from unconsolidated real estate ventures

—

219

145

Non-recurring capital expenditures

19,462

10,535

52,907

25,760

Total JBG SMITH Share of Capital Expenditures

26,456

23,062

90,638

69,638

(1)

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

(2)

(3)

Includes a $17.3 million impairment loss, net of tax, related to our wireless spectrum licenses for the three months and year ended December 31, 2025. Includes our proportionate share of impairment losses of $3.2 million related to unconsolidated real estate ventures for the three months and year ended December 31, 2025, and $6.7 million for the three months and year ended December 31, 2024.

(4)

Includes amounts, at JBG SMITH Share, related to unconsolidated real estate ventures.

(5)

Includes straight-line rent, above/below market lease amortization/accretion and lease incentive amortization.

(6)

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 December 31,

Year Ended December 31,

2025

2024

2025

2024

Net loss attributable to common shareholders

(45,547

)

(59,897

)

(139,063

)

(143,526

)

Net loss attributable to redeemable noncontrolling interests

(10,623

)

(9,849

)

(28,998

)

(22,202

)

Net loss attributable to noncontrolling interests

—

(1,094

)

—

(12,025

)

Net loss

(56,170

)

(70,840

)

(168,061

)

(177,753

)

Add:

Depreciation and amortization expense

46,753

49,969

190,064

208,180

General and administrative expense:

Corporate and other

13,678

14,935

59,169

58,790

Third-party real estate services

16,903

17,199

60,594

74,264

Transaction and other costs

972

2,312

6,223

5,317

Interest expense

36,485

36,668

142,037

134,068

(Gain) loss on the extinguishment of debt, net

—

(9,192

)

2,402

(9,235

)

Impairment loss

20,780

37,191

65,847

55,427

Income tax expense (benefit)

(4,473

)

802

(3,830

)

762

Less:

Third-party real estate services, including reimbursements revenue

17,797

17,139

62,227

69,465

Loss from unconsolidated real estate ventures, net

(4,255

)

(7,126

)

(4,420

)

(7,122

)

Interest and other income, net

610

1,493

4,211

11,598

Gain (loss) on the sale of real estate, net

(396

)

2,313

46,633

(2,753

)

Adjustments:

NOI attributable to unconsolidated real estate ventures at our share

873

1,302

4,162

6,808

Real estate venture partner’s share of NOI attributable to consolidated real estate ventures

(788

)

—

(1,975

)

—

Non-cash rent adjustments (1)

(1,233

)

(1,726

)

2,838

(9,482

)

Other adjustments (2)

304

1,053

(687

)

1,321

Total adjustments

(844

)

629

4,338

(1,353

)

NOI

60,328

65,854

250,132

277,279

Less: out-of-service NOI loss (3)

(1,003

)

(2,289

)

(6,368

)

(9,922

)

Operating Portfolio NOI

61,331

68,143

256,500

287,201

Non-Same Store NOI (4)

7,685

12,171

34,140

52,871

Same Store NOI (5)

53,646

55,972

222,360

234,330

Change in Same Store NOI

(4.2

(5.1

Number of properties in Same Store pool

(1)

Adjustment to exclude deferred (straight-line) rent, above/below market lease amortization/accretion and lease incentive amortization.

(2)

Adjustment to exclude commercial lease termination revenue, related party management fees and corporate entity activity.

(3)

Includes the results of our Under-Construction assets 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.