JBG SMITH Announces Third Quarter 2026 Results

BETHESDA, Md.--(BUSINESS WIRE)--JBG SMITH (NYSE: JBGS), a leading owner, operator, and developer of mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended September 30, 2026 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our Third Quarter 2026 Investor Package, which is posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in that document.

Third Quarter 2026 Highlights

• Net loss, Funds from Operations ("FFO"), and Core FFO attributable to common shareholders were:

• Annualized Net Operating Income ("Annualized NOI") for the three months ended September 30, 2026 was $256.4 million, compared to $249.3 million for the three months ended June 30, 2026, at our share.
  • The increase in Annualized NOI was substantially attributable to (i) higher occupancy and lower real estate taxes, partially offset by higher concessions and utilities expense in our multifamily portfolio; and (ii) abatement burn off and lower real estate taxes in our commercial portfolio.
• Same Store NOI ("SSNOI") at our share increased 3.3% to $60.8 million for the three months ended September 30, 2026 compared to September 30, 2025.
  • The increase in our commercial portfolio SSNOI was substantially attributable to higher rental revenue and lower real estate taxes, partially offset by higher utilities expense, and the decrease in our multifamily portfolio SSNOI was substantially attributable to lower rental revenue.

Operating Portfolio

• The operating multifamily portfolio was 92.9% leased and 91.5% occupied as of September 30, 2026, compared to 89.6% and 86.6% as of June 30, 2026, at our share. Our Same Store multifamily portfolio was 94.4% leased and 93.1% occupied as of September 30, 2026, compared to 93.5% leased and 90.4% occupied as of June 30, 2026, at our share.
• In our Same Store multifamily portfolio, effective rents decreased by 9.6% for new leases and increased by 2.7% upon renewal while achieving a 56.8% renewal rate during the third quarter.
• The operating commercial portfolio was 78.5% leased and 76.8% occupied as of September 30, 2026, compared to 78.0% and 75.4% as of June 30, 2026, at our share.
• Executed approximately 193,000 square feet of office leases at our share during the three months ended September 30, 2026, including approximately 74,000 square feet of new leases. Second-generation leases generated a 1.9% rental rate decrease on a cash basis and a 1.6% rental rate increase on a GAAP basis.
• Executed approximately 674,000 square feet of office leases at our share during the nine months ended September 30, 2026, including approximately 189,000 square feet of new leases. Second-generation leases generated a 4.7% rental rate decrease on a cash basis and a 1.1% rental rate increase on a GAAP basis.

Development Portfolio

Under-Construction

• As of September 30, 2026, one asset was under construction, 2200 Crystal Drive in National Landing, an obsolete office building that is being converted into a 195-unit multifamily asset, 59 units at our share.

Development Pipeline

• As of September 30, 2026, our development pipeline consisted of 3.5 million square feet of Estimated Potential Development Density at our share.

Third-Party Real Estate Services Business

• For the three months ended September 30, 2026, revenue from third-party real estate services, including reimbursements, was $18.3 million. Excluding reimbursements and service revenue from our interests in real estate ventures, revenue from our third-party real estate services business was $8.0 million, primarily driven by $4.6 million of property and asset management fees, and $1.7 million of other service revenue.

Balance Sheet

• As of September 30, 2026, our total enterprise value was approximately $3.2 billion, comprising 71.5 million common shares and units valued at $718.2 million, and debt (net of premium / (discount) and deferred financing costs) at our share of $2.6 billion, less cash and cash equivalents at our share of $77.7 million.
• As of September 30, 2026, we had $78.5 million of cash and cash equivalents ($77.7 million of cash and cash equivalents at our share), and $454.2 million of undrawn capacity under our revolving credit facility.
• Net Debt to Annualized Adjusted EBITDA at our share for the three months ended September 30, 2026 was 11.6x.

Investing and Financing Activities

• In August 2026, we amended and extended the revolving credit facility from June 2027 to August 2030 with two six-month extension options, which may extend the maturity to August 2031. The amended facility provides for aggregate commitments of $690.0 million.
• In August 2026, our Tranche A‑2 Term Loan was amended to increase its borrowing capacity by $15.0 million to $415.0 million and extend $243.9 million of the term loan to August 2028 with three 12-month extension options that may extend the maturity to August 2031. The remaining $171.1 million of the term loan will mature in January 2028.

Dividends

• On October 29, 2026, our Board of Trustees declared a quarterly dividend of $0.175 per common share, which will be paid on November 25, 2026 to shareholders of record as of November 12, 2026.

Subsequent to September 30, 2026

• In October 2026, we formed a real estate venture to recapitalize 800 North Glebe Road, a 306,210-square-foot commercial asset in Arlington, Virginia, in which we sold a 90.0% interest. In connection with the transaction, the real estate venture entered into a three-year, interest-only $61.3 million mortgage loan with an interest rate of SOFR plus 3.70%, of which $52.7 million was drawn at closing. We retained management and leasing of the asset and will account for the asset as an unconsolidated real estate venture.
• In October 2026, we formed a real estate venture to recapitalize our interest in Dulles View, a 360,482-square-foot commercial asset in Dulles, Virginia, in which we retained a 30.0% interest. Additionally, the real estate venture entered into a three-year, interest-only $40.9 million mortgage loan with an interest rate of SOFR plus 3.35%, of which $17.4 million was drawn at closing.
• In October 2026, we repaid $67.0 million under the revolving credit facility.
• Through October 30, 2026, we repurchased and retired 1.0 million common shares for $11.5 million, a weighted average purchase price per share of $11.07, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

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 at share comprises 11.8 million square feet of multifamily, office, and retail assets, and a 3.5 million square-foot development pipeline. For more information on JBG SMITH please visit www.jbgsmith.com.

Forward-Looking Statements

Certain statements contained herein may constitute "forward-looking statements" as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results, financial condition and business of JBG SMITH Properties ("JBG SMITH," the "Company," "we," "us," "our" or similar terms) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximate," "hypothetical," "potential," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or similar expressions in this earnings release. We also note the following forward-looking statements: whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet and estimated number of units are accurate; and whether expected timing, completion, and delivery dates for our under-construction assets are 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 impacts and ultimate outcome of the Wardman Tower litigation, the potential need for one or more bonds to be posted by the defendants and the extent to which we would be required to collateralize any portion of such bonds in connection with the Wardman Tower litigation, 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 this release and our Investor Package exclude our 33.5% subordinated interest in four commercial buildings, as well as the associated non-recourse mortgage loans, held through an unconsolidated real estate venture, as our investment in the real estate venture is zero, we do not anticipate receiving any near-term cash flow distributions from the real estate venture, and we have not guaranteed its obligations or otherwise committed to providing financial support.

Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

"Net Debt" is a non-GAAP financial measurement. Net Debt represents our total consolidated and unconsolidated indebtedness less cash and cash equivalents at our share. Net Debt is an important component in the calculation of Net Debt to Annualized Adjusted EBITDA. 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) 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.

Kevin Connolly
Executive Vice President, Portfolio Management & Investor Relations
(240) 333‑3837
kconnolly@jbgsmith.com