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JBGS Divider

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Management Letter

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July 30, 2024

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Our Fellow Shareholders:

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For the first time in years, we have reason to believe the macroeconomic landscape surrounding our business is poised for recovery. Inflation has been slowing, and the likelihood the Fed will reduce interest rates this year is higher than at any point since rate hikes began. Recovery periods in the real estate cycle often take some time to build, but market sentiment would suggest that the bottom is here, if not behind us. With many NAV estimates having been cut in half over the past two years, it is reasonable to expect that cyclic recovery should bring considerable growth in NAVs off today’s market low. Against this backdrop, we continue our portfolio transformation to becoming a majority multifamily company with an office portfolio concentrated in National Landing. We believe the demand drivers in National Landing – our placemaking initiatives, Amazon’s new headquarters, the Virginia Tech Innovation Campus, and the Pentagon – will continue to drive the performance of both our multifamily and commercial portfolios. As many of you saw during our investor day in May, National Landing has undergone a remarkable transformation over the past several years with the repositioning of our office assets, the delivery of much-needed street-level retail, and the recent and upcoming completion of almost 1,600 new multifamily units. National Landing has become the model for exactly the type of urban-suburban amenity-rich environment our commercial and residential customers seek in a post-pandemic world.

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Below are highlights since last quarter:

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Completed construction on 1900 Crystal Drive, The Grace and Reva, and the pace of leasing continues to exceed our expectations. As of July 28, the two towers totaling 808 units were 49.5% leased and continue to lease faster than any of our other multifamily deliveries since 2017. Additionally, approximately 70% of the nearly 40,000 square feet of new retail space is committed with the first tenants opening this summer.

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Our multifamily portfolio continued to exhibit strong performance. Occupancy continues to climb as we capitalize on seasonality in the multifamily leasing business. We increased effective rents by 4.6% blended across new and renewal leases and 8.6% upon renewal while achieving a 50.9% renewal rate. Multifamily Same Store NOI for the quarter increased 3.4%.

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In our strongest quarter of new office leasing in three years, we executed 166,000 square feet of new office leases. Defense and technology tenants continue to drive leasing demand in National Landing, comprising 88% of this quarter’s 248,000 SF of total (new and renewal) leasing activity.

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National Landing public infrastructure projects achieved key milestones. Washington Metro Area Transit Authority broke ground on the new Crystal City Metro entrance along Crystal Drive and expects completion in 2027. Additionally, the Northern Virginia Transportation Authority formally allocated the capital for the pedestrian bridge to Reagan National Airport. This allows Arlington County to engage a design-build contractor in 2025, solidifying a timeline for the project.

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Capital Allocation

While investment sales activity remains slow across all asset types, we have seen a modest pick-up in multifamily transaction activity, especially in Northern Virginia, suggesting investor confidence in continued rental rate growth and an expectation of a stable, if not declining, interest rate environment. With respect to office, feedback from investment sales brokers indicates more investors are spending time underwriting office, and, for the right assets, that increased interest is translating into more bids. That said, debt remains scarce for office, transaction volume is still very limited, and pricing is soft as a result. We continue to seek opportunities to dispose of an additional $200 – $300 million of assets, with a focus on assets that have in-place, assumable debt or are financeable in today’s market.

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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. 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. Year-to-date, we have repurchased 8.6 million shares at a weighted average price of $15.37, totaling $132.1 million. Since the inception of our share repurchase program in 2020, we have repurchased 54.5 million shares, or approximately 36% of shares and OP units outstanding as of December 31, 2019, at a weighted average price per share of $20.01, totaling $1.1 billion.

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Finally, 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 pursue land sales, ground leases, or joint ventures.

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Financial and Operating Metrics

For the three months ended June 30, 2024, we reported Core FFO attributable to common shareholders of $16.1 million, or $0.18 per diluted share. Annualized NOI decreased 3.0% quarter-over-quarter, excluding assets that were sold or taken out of service. Our multifamily portfolio ended the quarter at 96.9% leased and 94.3% occupied. Our office portfolio ended the quarter at 82.3% leased and 80.6% occupied. Same Store NOI growth for the quarter was 3.2%.

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As of June 30, 2024, our Net Debt / Total Enterprise Value was 62.1%, and our Net Debt to Annualized Adjusted EBITDA was 11.9x. Based on the previously disclosed known tenant vacates, we expect continued downward pressure on our earnings and, specifically, Same Store NOI for the office portfolio. We expect this pressure to persist at least through the end of 2025. Interest expense will continue to increase as we deliver our under-construction assets and cease capitalizing interest on those assets. Between now and the completion of 2000/2001 South Bell Street (Valen and The Zoe), we expect upward pressure on our Net Debt to Annualized Adjusted EBITDA metric driven by the impact of tenant vacates and construction spend on our earnings and balance sheet. We expect these pressures will be lessened by: i) additional income from the delivery and stabilization of 1900 Crystal Drive and 2000/2001 South Bell Street; ii) rent growth in our existing multifamily portfolio given the limited multifamily supply pipeline in the DC metro area; and iii) office demand in National Landing from prospective tenants seeking proximity to the Pentagon, local tech talent, and the placemaking attractions we have delivered.

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Our floating rate exposure remains low, with 93.3% of our debt fixed or hedged as of the end of the second 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. We continue to be well-positioned with respect to our near-term debt maturities with a weighted average debt maturity of 3.2 years, after adjusting for by-right extension options. We have $121 million of debt maturing next month (4.4% of total debt), which is non-recourse asset-level financing related to a non-core office asset in DC — one of the highly levered

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assets we referenced in our investor day presentation. We are currently in discussions with the lender regarding this loan. Looking ahead to 2025, we have $424 million of maturities, after adjusting for by-right extension options, representing 15.6% of total debt; however, the majority of this debt is secured by multifamily assets which have proven to be readily financeable, even in challenging 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.

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Operating Portfolio

Multifamily Trends

Our multifamily portfolio ended the quarter at 96.9% leased, up 1.0% quarter-over-quarter, and 94.3% occupied, in line with last quarter. We increased effective rents by 4.6% blended across new and renewal leases, largely driven by our assets in National Landing, and 8.6% upon renewal while achieving a 50.9% renewal rate. Our multifamily portfolio generated 3.4% Same Store NOI growth for the three months ended June 30, 2024.

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We continue to make progress in the lease up of 1900 Crystal Drive which we delivered during the quarter. Move-ins commenced in February 2024, and the leasing pace continues to exceed all five of our other multifamily deliveries since 2017. As of quarter-end, 1900 Crystal Drive was approximately 38.5% leased, and as of July 28^th, it was 49.5% leased. It is worth noting that residents of 1900 Crystal Drive are primarily employed in three industries that make up a significant portion of the office tenant base in National Landing: professional services, defense, and technology. We believe the amenity-rich environment we have created in National Landing, coupled with the short commutes these buildings offer to employees, are driving forces in their positive lease-up to date. With this asset’s completion, the soon-to-follow delivery of 2000/2001 South Bell Street, and recent office sales, our transition to majority multifamily is almost complete.

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

The DC-area multifamily market is enjoying a period of strong performance relative to both the Sunbelt and traditional Gateway market competitors. In July, CoStar ranked the DC metro the top large market in the nation for year-over-year rent growth. Notably, CoStar called out Northern Virginia as the key driver of this outperformance. This ranking is directionally consistent with the strong growth we have realized in our own portfolio in Northern Virginia and is indicative of the typical countercyclical performance we have come to expect from the DC metro region. Apartment List data reinforces this conclusion, reporting that as of the end of June, the DC metro region saw 3.3% rent growth relative to just 0.5% in the other Gateway markets, with occupancy nearly equivalent at 94.9% and 95.1%, respectively.

We believe that this strong performance is likely to continue given the slow pace of construction starts in our market. CoStar data for market rate projects currently under construction shows that just 4.3% of the DC metro region’s inventory is under construction versus an average of nearly 8.0% across Sunbelt markets. While new supply has slowed drastically in all markets as the result of elevated interest rates and construction costs, we believe that the DC metro region has an advantage going forward because of its smaller pipeline. Growth trends have also been working in our favor, with a spring Brookings demographics analysis pointing to the DC metro region outperforming other Gateway markets in terms of population growth based on U.S. Census data. Data from the Bureau of Labor Statistics also shows that the DC metro region had not only fully recovered from pandemic job losses by 2023 but is now at decade-high levels of employment. Northern Virginia, unsurprisingly, recovered its pandemic job losses even sooner in 2022 and has posted several consecutive years of strong growth. We believe these trends set up the DC metro region – and particularly defense and technology-driven Northern Virginia – for a strong year of multifamily growth.

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Office Trends

Our office portfolio ended the quarter at 82.3% leased, down 2.3% quarter-over-quarter, and 80.6% occupied, 2.5% down from the first quarter. In the second quarter, we executed 248,000 square feet of leases with a weighted average lease term of 7.3 years. This activity includes 166,000 square feet of new leasing, making this our strongest quarter of new leasing in three years. For second generation leases, the rental rate mark-to-market increased 2.0%. Leasing in National Landing continues to be active, driven primarily by office users who fall into three categories: (i) government contractors seeking growth and expansion; (ii) companies who need SCIF/secure facility space; and (iii) technology-related net new tenants largely attracted by the recent delivery of our years-long placemaking interventions. Further, we continue to see defense and technology tenants show their stickiness as office users in National Landing, with 100% of our renewal activity this year coming from tenants in those industries.

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Despite our exceptional leasing activity this quarter, 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. This year, Amazon vacated 1800 South Bell and 2100 Crystal Drive, and we subsequently took those buildings out of service. We have also commenced phasing 2200 Crystal Drive out of service as tenants in that building vacate. Moving these three buildings out of service reduces our office stock in the submarket 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.

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We anticipate approximately 485,000 square feet (approximately $22 million of annualized rent) in National Landing will be vacated in the second half of 2024 and 2025. After accounting for these known vacates, we have very modest lease roll over in the next five years and are left with a tenant base in National Landing that largely comprises very sticky defense-tech tenants. Over the last three years, we averaged approximately 150,000 square feet of new leasing per year excluding Amazon leases. Our current prospect pipeline is stronger than it has been in years and indicates a potential increase in new leasing activity. While we’ve already had success backfilling some space vacated in the second half of 2023 and first half of 2024, it is too early to tell how much of these known and expected vacates will be backfilled.

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

The broader DC metro office market continues to face challenges, with nearly net-zero demand (net absorption of 0.5% of total stock), leaving total vacancy for the region at 22.1%. This flat demand can largely be attributed to what appears to be a permanent change in tenant demand patterns. In Northern Virginia, for instance, CBRE noted in their second quarter report that overall leasing activity seems to have stabilized at 1.7 million square feet per quarter, down from the pre-pandemic long-term average of 2.7 million square feet. The same report notes that while 74.0% of tenant deals signed in the second quarter avoided contraction, large tenant consolidations ultimately led to slightly negative absorption overall. This trend suggests that while demand may eventually turn positive as consolidations wind down, a full return to historic levels of absorption is unlikely in the near term.

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The behavior of civilian GSA agencies also plays a significant role in shaping the market, particularly in downtown DC. Future givebacks of space could be driven by both physical utilization, which is reported to be sub-30% according to two government studies, and political pressure stemming from the upcoming election cycle. These potential givebacks are most likely to impact downtown DC but also create a demand headwind for the surrounding markets. However, Northern Virginia, and more specifically National Landing, stands out as a bright spot amid these broader market challenges. The defense, aerospace, and technology sectors continue to drive significant leasing activity in Northern Virginia. CBRE reported that these sectors accounted for 54.0% of leasing activity in the region

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during the second quarter, all of which was positive absorption. This demand also appears insulated from electoral politics, in contrast to the civilian GSA headwinds largely impacting downtown DC.

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On a positive note, the DC metro market as a whole has just over 1.1 million square feet under construction. As many market watchers have noted, this low-level of new construction presents a challenge for tenants who are favoring a flight-to-quality. While the elevated cost environment and (for now) high interest rates have dampened speculative new construction, tenants consolidating their portfolios and seeking high-quality, centrally located space may drive new, pre-leased starts. Additionally, some of the better existing buildings are becoming viable alternatives to new construction after heavy repositioning and amenitization. The prevalence of office-to-residential conversions in Northern Virginia offers additional support. JLL reports that 10.1 million square feet of office buildings are slated for residential conversion. This reduction in office inventory is relatively rare and promises to help achieve a balanced market. If nothing else happens, these conversions alone would reduce vacancy from 23.1% to 17.8%.

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We see these trends playing out in our own portfolio, with tenants gravitating towards the amenities and interventions we are bringing to our existing properties. Our amenitization efforts and accessible transit options make National Landing particularly attractive. The area has become a focal point for future demand within Northern Virginia, driven by its proximity to the Pentagon and local tech talent. This favorable positioning is further supported by the lowest level of new construction pipeline in Northern Virginia ever reported by JLL, with only 539,000 square feet under construction. This constrained supply, combined with strong sector-specific demand, positions National Landing for continued growth and success.

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We have, for the first time in a while, real reason to believe that the macroeconomic landscape is on track to improve. Even if interest rates remain higher for longer, modest rate cuts and the prospect for further cooling in the economy should bring some return to higher asset valuations and recovery in NAVs. All of these factors should enhance the return on our substantial buyback program and further enable our continued transition to majority multifamily through the disposition of non-core assets and the monetization of our land bank. Continued recovery in the market for tenant demand and the slow but steady return to close-in, high-density, urban living plays directly into our strategy in National Landing. While all eyes will be on the presidential election in the coming months, our focus will be on the continued transformation of our portfolio and positioning of our business to capitalize on the many strong and building demand tailwinds blowing behind us.

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Finally, we appreciate those of you who attended our investor day (or downloaded the presentation) in National Landing on May 15^th. We value your strong support and investment of time and energy. You can find our presentation and management’s commentary on our website.

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

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Sincerely,

W. Matthew Kelly

Chief Executive Officer

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Section Two – Earnings Release

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Earnings Release

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CONTACT

Kevin Connolly

Executive Vice President, Portfolio Management & Investor Relations

(240) 333-3837

kconnolly@jbgsmith.com

JBG SMITH ANNOUNCES SECOND QUARTER 2024 RESULTS

Bethesda, MD (July 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 June 30, 2024 and reported its financial results.

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

Second Quarter 2024 Highlights

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Operating Portfolio

Development Portfolio

Under-Construction

Development Pipeline

Third-Party Asset Management and Real Estate Services Business

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Balance Sheet

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 our retail and digital placemaking initiatives and public infrastructure improvements. JBG SMITH's dynamic portfolio currently comprises 13.4 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,"

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"expects," "anticipates," "estimates," "intends," "plans," "would," "may" or similar expressions in this earnings release. We also note the following forward-looking statements: whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet, estimated number of units and estimated potential development density are accurate; expected timing, completion, 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; and our plans to maintain carbon neutral operations annually.

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 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 and our 49.0% interest in three 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 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 June 30, 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 June 30, 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 June 30, 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 June 30, 2024.

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CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

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Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

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Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.

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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.

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

(Unaudited)

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See footnotes on page 14.

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

(Unaudited)

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NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)