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-K for the year ended December 31, 2023 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our Fourth Quarter 2023 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 2023 Highlights

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


		FOURTH QUARTER AND FULL YEAR COMPARISON
in millions, except per share amounts			Three Months Ended								Year Ended
			December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
			Amount		Per Diluted Share		Amount		Per Diluted Share		Amount		Per Diluted Share		Amount		Per Diluted Share
	Net income (loss) ⁽¹⁾		$	(32.6)	$	(0.35)	$	(18.6)	$	(0.17)	$	(80.0)	$	(0.78)	$	85.4	$	0.70
	FFO		$	33.9	$	0.35	$	31.1	$	0.27	$	140.4	$	1.33	$	156.0	$	1.31
	Core FFO		$	36.1	$	0.38	$	34.3	$	0.30	$	154.1	$	1.46	$	155.3	$	1.30

_____________

(1)

Includes impairment losses of $30.9 million and $90.2 million related to real estate assets recorded during the three months and year ended December 31, 2023, and impairment losses recorded by our unconsolidated real estate ventures, of which our proportionate share was $25.3 million and $3.9 million during the three months ended December 31, 2023 and 2022, and $28.6 million and $19.3 million during the years ended December 31, 2023 and 2022. Also includes gains on the sale of real estate of $37.7 million and $3.3 million during the three months ended December 31, 2023 and 2022, and $79.3 million and $161.9 million during the years ended December 31, 2023 and 2022.

Annualized Net Operating Income ("NOI") for the three months ended December 31, 2023 was $322.4 million, compared to $319.8 million for the three months ended September 30, 2023, at our share. Excluding the assets that were sold or recapitalized, Annualized NOI for the three months ended December 31, 2023 was $318.6 million, compared to $309.4 million for the three months ended September 30, 2023, at our share.
- The increase in Annualized NOI excluding the assets that were sold or recapitalized was substantially attributable to (i) an increase in our multifamily portfolio NOI due to lower concessions and lower operating expenses, and (ii) a decrease in our commercial portfolio NOI due to higher abatement and tenant expirations, partially offset by lower utilities due to seasonality.
Same Store NOI ("SSNOI") at our share increased 7.1% quarter-over-quarter to $80.3 million for the three months ended December 31, 2023. SSNOI at our share increased 1.6% year-over-year to $299.9 million for the year ended December 31, 2023.
- The increase in SSNOI for the three months ended December 31, 2023 was substantially attributable to (i) higher rents and occupancy, partially offset by higher operating expenses in our multifamily portfolio and (ii) burn off of rent abatements and lower operating expenses, partially offset by lower occupancy in our commercial portfolio.

Operating Portfolio

The operating multifamily portfolio was 96.0% leased and 94.7% occupied as of December 31, 2023, compared to 96.9% and 95.6% as of September 30, 2023, at our share.
Across our multifamily portfolio, we increased effective rents by 7.0% upon renewal for fourth quarter lease expirations while achieving a 56.0% renewal rate.
The operating commercial portfolio was 86.3% leased and 84.9% occupied as of December 31, 2023, compared to 85.6% and 84.4% as of September 30, 2023, at our share.
Executed approximately 170,000 square feet of office leases at our share during the three months ended December 31, 2023, comprising approximately 20,000 square feet of first-generation leases and approximately 150,000 square feet of second-generation leases, which generated a 3.5% rental rate increase on a cash basis and a 0.2% rental rate increase on a GAAP basis.
Executed approximately 927,000 square feet of office leases at our share during the year ended December 31, 2023, comprising approximately 70,000 square feet of first-generation leases and approximately 857,000 square feet of second-generation leases, which generated a 1.2% rental rate increase on a cash basis and a 2.1% rental rate increase on a GAAP basis.

Development Portfolio

Under-Construction

As of December 31, 2023, we had two multifamily assets under construction consisting of 1,583 units at our share.

Development Pipeline

As of December 31, 2023, we had 17 assets in the development pipeline consisting of 8.8 million square feet of estimated potential development density at our share.

Third-Party Asset Management and Real Estate Services Business

For the three months ended December 31, 2023, revenue from third-party real estate services, including reimbursements, was $22.5 million. Excluding reimbursements and service revenue from our interests in real estate ventures, revenue from our third-party asset management and real estate services business was $11.0 million, primarily driven by $6.3 million of property and asset management fees, $1.9 million of leasing fees, $1.2 million of development fees and $1.2 million of other service revenue.

Balance Sheet

As of December 31, 2023, our total enterprise value was approximately $4.3 billion, comprising 107.5 million common shares and units valued at $1.8 billion, 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 $171.6 million.
As of December 31, 2023, we had $164.8 million of cash and cash equivalents ($171.6 million of cash and cash equivalents at our share), and $687.5 million of availability under our revolving credit facility.
Net Debt to annualized Adjusted EBITDA at our share for the three months ended December 31, 2023 was 8.7x, and our Net Debt / total enterprise value was 57.2% as of December 31, 2023.

Investing and Financing Activities

On October 4, 2023, we sold 5 M Street Southwest, an asset in our development pipeline located in Washington, DC with an estimated potential development density of 664,700 square feet, for $29.5 million.
On November 14, 2023, one of our unconsolidated real estate ventures sold Rosslyn Gateway – North and South, commercial assets totaling 250,490 square feet, and related land parcels with estimated potential development density totaling 809,500 square feet in Arlington, Virginia, for $9.4 million at our 18.0% share.
On November 30, 2023, we sold Crystal City Marriott, a 345-key hotel in our commercial portfolio located in Arlington, Virginia, for $80.0 million.
On December 5, 2023, we sold Capitol Point – North – 75 New York Avenue, an asset in our development pipeline located in Washington, DC with an estimated potential development density of 286,900 square feet, for $11.5 million.
Borrowings under our revolving credit facility decreased by $30.0 million for the quarter.
We repurchased and retired 4.1 million common shares for $58.6 million, a weighted average purchase price per share of $14.17.

Subsequent to December 31, 2023

We repurchased and retired 2.7 million common shares for $45.4 million, a weighted average purchase price per share of $16.52, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.
We repaid all amounts outstanding under our revolving credit facility.
On January 22, 2024, we sold North End Retail, a multifamily asset with 27,355 square feet in Washington, DC, for $14.3 million.
On February 13, 2024, one of our unconsolidated real estate ventures sold Central Place Tower, a commercial asset with 551,594 square feet in Rosslyn, Virginia, for $162.5 million at our 50.0% share.

Dividends

On February 14, 2024, our Board of Trustees declared a quarterly dividend of $0.175 per common share, payable on March 15, 2024 to shareholders of record as of March 1, 2024.

About JBG SMITH

JBG SMITH owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC, most notably National Landing. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's new headquarters; Virginia Tech's under-construction $1 billion Innovation Campus; the submarket's proximity to the Pentagon; and JBG SMITH's deployment of 5G digital infrastructure. JBG SMITH's dynamic portfolio currently comprises 14.2 million square feet of high-growth office, multifamily, and retail assets at share, 99% of which are Metro-served. It also maintains a development pipeline encompassing 8.8 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually. For more information on JBG SMITH please visit www.jbgsmith.com.

Forward-Looking Statements

Certain statements contained herein may constitute "forward-looking statements" as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results, financial condition and business of JBG SMITH Properties ("JBG SMITH", the "Company", "we", "us", "our" or similar terms) may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximate", "hypothetical", "potential", "believes", "expects", "anticipates", "estimates", "intends", "plans", "would", "may" or similar expressions in this earnings release. We also note the following forward-looking statements: our annual dividend per share and dividend yield; whether in the case of our under-construction assets and assets in the development pipeline, estimated square feet, estimated number of units and estimated potential development density are accurate; expected timing, completion, modifications and delivery dates for the projects we are developing; the ability of any or all of our demand drivers to materialize and their effect on economic impact, job growth, expansion of public transportation and related demand in the National Landing submarket; planned infrastructure and educational improvements related to Amazon's additional headquarters and the Virginia Tech Innovation Campus; our development plans related to National Landing; whether we will be able to successfully shift the majority of our portfolio to multifamily; and whether the allocation of capital to our share repurchase plan has any impact on our share price.

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10‑K for the year ended December 31, 2023 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

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

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

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

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 10.0% subordinated interest in one commercial building, our 33.5% subordinated interest in four commercial buildings, our 49.0% interest in three commercial buildings and our 9.9% interest in one commercial building, as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures, as our investment in each real estate venture is zero, we do not anticipate receiving any near-term cash flow distributions from the real estate ventures, and we have not guaranteed their obligations or otherwise committed to providing financial support.

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 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 right-of-use assets associated with leases in which we are a lessee, 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 right-of-use assets associated with leases in which we are a lessee, 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 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, for all assets except Crystal City Marriott, represents NOI for the three months ended December 31, 2023 multiplied by four. Due to seasonality in the hospitality business, Annualized NOI for Crystal City Marriott represents the trailing 12-month NOI as of December 31, 2023. 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 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 December 31, 2023. 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 December 31, 2023.

"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, except for 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 December 31, 2023.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


	in thousands	December 31, 2023		December 31, 2022

	ASSETS
	Real estate, at cost:
	Land and improvements	$	1,194,737	$	1,302,569
	Buildings and improvements		4,021,322		4,310,821
	Construction in progress, including land		659,103		544,692
			5,875,162		6,158,082
	Less: accumulated depreciation		(1,338,403)		(1,335,000)
	Real estate, net		4,536,759		4,823,082
	Cash and cash equivalents		164,773		241,098
	Restricted cash		35,668		32,975
	Tenant and other receivables		44,231		56,304
	Deferred rent receivable		171,229		170,824
	Investments in unconsolidated real estate ventures		264,281		299,881
	Deferred leasing costs, net		81,477		94,069
	Intangible assets, net		56,616		68,177
	Other assets, net		163,481		117,028
	TOTAL ASSETS	$	5,518,515	$	5,903,438

	LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
	Liabilities:
	Mortgage loans, net	$	1,783,014	$	1,890,174
	Revolving credit facility		62,000		—
	Term loans, net		717,172		547,072
	Accounts payable and accrued expenses		124,874		138,060
	Other liabilities, net		138,869		132,710
	Total liabilities		2,825,929		2,708,016
	Commitments and contingencies
	Redeemable noncontrolling interests		440,737		481,310
	Total equity		2,251,849		2,714,112
	TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY	$	5,518,515	$	5,903,438

Note: For complete financial statements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2023.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)


in thousands, except per share data	Three Months Ended December 31,				Year Ended December 31,
	2023		2022		2023		2022
REVENUE
Property rental	$	118,240	$	123,293	$	483,159	$	491,738
Third-party real estate services, including reimbursements		22,463		21,050		92,051		89,022
Other revenue		6,876		6,397		28,988		25,064
Total revenue		147,579		150,740		604,198		605,824
EXPENSES
Depreciation and amortization		57,281		56,174		210,195		213,771
Property operating		34,937		37,535		144,049		150,004
Real estate taxes		13,607		14,297		57,668		62,167
General and administrative:
Corporate and other		12,376		15,611		54,838		58,280
Third-party real estate services		21,615		22,107		88,948		94,529
Share-based compensation related to Formation Transaction and special equity awards		152		1,022		549		5,391
Transaction and other costs		943		879		8,737		5,511
Total expenses		140,911		147,625		564,984		589,653
OTHER INCOME (EXPENSE)
Loss from unconsolidated real estate ventures, net		(25,679)		(4,600)		(26,999)		(17,429)
Interest and other income, net		1,649		1,715		15,781		18,617
Interest expense		(28,080)		(25,679)		(108,660)		(75,930)
Gain on the sale of real estate, net		37,729		3,263		79,335		161,894
Loss on the extinguishment of debt		—		—		(450)		(3,073)
Impairment loss		(30,919)		—		(90,226)		—
Total other income (expense)		(45,300)		(25,301)		(131,219)		84,079
INCOME (LOSS) BEFORE INCOME TAX (EXPENSE) BENEFIT		(38,632)		(22,186)		(92,005)		100,250
Income tax (expense) benefit		968		1,336		296		(1,264)
NET INCOME (LOSS)		(37,664)		(20,850)		(91,709)		98,986
Net (income) loss attributable to redeemable noncontrolling interests		4,635		2,468		10,596		(13,244)
Net (income) loss attributable to noncontrolling interests		432		(197)		1,135		(371)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(32,597)	$	(18,579)	$	(79,978)	$	85,371
EARNINGS (LOSS) PER COMMON SHARE - BASIC AND DILUTED	$	(0.35)	$	(0.17)	$	(0.78)	$	0.70
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED		95,434		113,854		105,095		119,005

Note: For complete financial statements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2023.

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

dollars in thousands		Three Months Ended December 31,						Year Ended December 31,
		2023			2022			2023			2022

EBITDA, EBITDAre and Adjusted EBITDA
	Net income (loss)	$	(37,664)		$	(20,850)		$	(91,709)		$	98,986
	Depreciation and amortization expense		57,281			56,174			210,195			213,771
	Interest expense		28,080			25,679			108,660			75,930
	Income tax expense (benefit)		(968)			(1,336)			(296)			1,264
	Unconsolidated real estate ventures allocated share of above adjustments		3,892			3,738			16,673			30,786
	EBITDA attributable to noncontrolling interests		32			22			28			(79)
EBITDA		$	50,653		$	63,427		$	243,551		$	420,658
	Gain on the sale of real estate, net		(37,729)			(3,263)			(79,335)			(161,894)
	(Gain) loss on the sale of unconsolidated real estate assets		230			(618)			(411)			(6,797)
	Real estate impairment loss		30,919			—			90,226			—
	Impairment related to unconsolidated real estate ventures ⁽¹⁾		25,279			3,885			28,598			19,286

EBITDAre		$	69,352		$	63,431		$	282,629		$	271,253
	Transaction and other costs, net of noncontrolling interests ⁽²⁾		943			879			8,737			5,477
	Litigation settlement proceeds, net		—			—			(3,455)			—
	(Income) loss from investments, net		182			298			(932)			(14,423)
	Loss on the extinguishment of debt		—			—			450			3,073
	Share-based compensation related to Formation Transaction and special equity awards		152			1,022			549			5,391
	Earnings and distributions in excess of our investment in unconsolidated real estate venture		(118)			(405)			(706)			(988)
	Lease liability adjustments		6			—			(148)			—
	Unconsolidated real estate ventures allocated share of above adjustments		27			26			60			2,105

Adjusted EBITDA		$	70,544		$	65,251		$	287,184		$	271,888

Net Debt to Annualized Adjusted EBITDA ⁽³⁾			8.7	x		8.6	x		8.5	x		8.2	x

								December 31, 2023			December 31, 2022
Net Debt (at JBG SMITH Share)
	Consolidated indebtedness ⁽⁴⁾							$	2,551,987		$	2,431,730
	Unconsolidated indebtedness ⁽⁴⁾								66,271			54,975
	Total consolidated and unconsolidated indebtedness								2,618,258			2,486,705
	Less: cash and cash equivalents								171,631			253,698
Net Debt (at JBG SMITH Share)								$	2,446,627		$	2,233,007

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) Related to decreases in the value of the underlying real estate assets.

(2) Includes pursuit costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.

(3) Quarterly Adjusted EBITDA is annualized by multiplying by four.

(4) 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,
		2023		2022		2023		2022

FFO and Core FFO
	Net income (loss) attributable to common shareholders	$	(32,597)	$	(18,579)	$	(79,978)	$	85,371
	Net income (loss) attributable to redeemable noncontrolling interests		(4,635)		(2,468)		(10,596)		13,244
	Net income (loss) attributable to noncontrolling interests		(432)		197		(1,135)		371
	Net income (loss)		(37,664)		(20,850)		(91,709)		98,986
	Gain on the sale of real estate, net of tax		(37,729)		(3,263)		(79,335)		(158,769)
	(Gain) loss on the sale of unconsolidated real estate assets		230		(618)		(411)		(6,797)
	Real estate depreciation and amortization		55,588		54,153		203,269		204,752
	Real estate impairment loss		30,919		—		90,226		—
	Impairment related to unconsolidated real estate ventures ⁽¹⁾		25,279		3,885		28,598		19,286
	Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures		2,690		2,884		11,545		21,169
	FFO attributable to noncontrolling interests		321		(326)		1,024		(735)
FFO Attributable to OP Units		$	39,634	$	35,865	$	163,207	$	177,892
	FFO attributable to redeemable noncontrolling interests		(5,770)		(4,776)		(22,820)		(21,846)
FFO Attributable to Common Shareholders		$	33,864	$	31,089	$	140,387	$	156,046

	FFO attributable to OP Units	$	39,634	$	35,865	$	163,207	$	177,892
	Transaction and other costs, net of tax and noncontrolling interests ⁽²⁾		969		981		8,434		5,313
	Litigation settlement proceeds, net		—		—		(3,455)		—
	(Income) loss from investments, net of tax		137		109		(699)		(10,819)
	(Gain) loss from mark-to-market on derivative instruments, net of noncontrolling interests		439		1,487		7,153		(6,686)
	Loss on the extinguishment of debt		—		—		450		3,073
	Earnings and distributions in excess of our investment in unconsolidated real estate venture		(118)		(405)		(706)		(988)
	Share-based compensation related to Formation Transaction and special equity awards		152		1,022		549		5,391
	Lease liability adjustments		6		—		(148)		—
	Amortization of management contracts intangible, net of tax		1,032		1,106		4,193		4,422
	Unconsolidated real estate ventures allocated share of above adjustments		26		21		130		1,150
Core FFO Attributable to OP Units		$	42,277	$	40,186	$	179,108	$	178,748
	Core FFO attributable to redeemable noncontrolling interests		(6,155)		(5,883)		(25,013)		(23,424)
Core FFO Attributable to Common Shareholders		$	36,122	$	34,303	$	154,095	$	155,324
	FFO per common share - diluted	$	0.35	$	0.27	$	1.33	$	1.31
	Core FFO per common share - diluted	$	0.38	$	0.30	$	1.46	$	1.30
	Weighted average shares - diluted (FFO and Core FFO)		95,545		113,917		105,195		119,036

See footnotes under table below.

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

in thousands, except per share data		Three Months Ended December 31,						Year Ended December 31,
		2023			2022			2023			2022

FAD
	Core FFO attributable to OP Units	$	42,277		$	40,186		$	179,108		$	178,748
	Recurring capital expenditures and Second-generation tenant improvements and leasing commissions ⁽³⁾		(12,055)			(16,780)			(40,676)			(53,876)
	Straight-line and other rent adjustments ⁽⁴⁾		(3,568)			(7,655)			(23,482)			(17,442)
	Third-party lease liability assumption (payments) refunds		—			—			70			(25)
	Share-based compensation expense		4,887			8,084			29,367			34,462
	Amortization of debt issuance costs		3,755			1,162			9,777			4,595
	Unconsolidated real estate ventures allocated share of above adjustments		932			2,315			2,850			(1,240)
	Non-real estate depreciation and amortization		318			546			1,337			3,114
FAD available to OP Units (A)		$	36,546		$	27,858		$	158,351		$	148,336
	Distributions to common shareholders and unitholders(B)	$	25,216		$	29,625		$	109,320		$	123,829
	FAD Payout Ratio (B÷A) ⁽⁵⁾		69.0	%		106.3	%		69.0	%		83.5	%

Capital Expenditures
	Maintenance and recurring capital expenditures	$	7,151		$	6,282		$	18,795		$	22,137
	Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures		17			72			62			550
	Second-generation tenant improvements and leasing commissions		4,747			10,276			21,516			30,621
	Share of Second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures		140			150			303			568
	Recurring capital expenditures and Second-generation tenant improvements and leasing commissions		12,055			16,780			40,676			53,876
	Non-recurring capital expenditures		2,595			11,822			33,614			52,016
	Share of non-recurring capital expenditures from unconsolidated real estate ventures		5			5			10			63
	First-generation tenant improvements and leasing commissions		3,046			5,075			17,633			27,349
	Share of First-generation tenant improvements and leasing commissions from unconsolidated real estate ventures		479			229			1,126			1,267
	Non-recurring capital expenditures		6,125			17,131			52,383			80,695
Total JBG SMITH Share of Capital Expenditures		$	18,180		$	33,911		$	93,059		$	134,571

(1)		Related to decreases in the value of the underlying real estate assets.
(2)		Includes pursuit costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(3)		Includes amounts, at JBG SMITH Share, related to unconsolidated real estate ventures.
(4)		Includes straight-line rent, above/below market lease amortization and lease incentive amortization.
(5)		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,
		2023			2022		2023			2022

Net income (loss) attributable to common shareholders		$	(32,597)		$	(18,579)	$	(79,978)		$	85,371
Add:
	Depreciation and amortization expense		57,281			56,174		210,195			213,771
	General and administrative expense:
	Corporate and other		12,376			15,611		54,838			58,280
	Third-party real estate services		21,615			22,107		88,948			94,529
	Share-based compensation related to Formation Transaction and special equity awards		152			1,022		549			5,391
	Transaction and other costs		943			879		8,737			5,511
	Interest expense		28,080			25,679		108,660			75,930
	Loss on the extinguishment of debt		—			—		450			3,073
	Impairment loss		30,919			—		90,226			—
	Income tax expense (benefit)		(968)			(1,336)		(296)			1,264
	Net income (loss) attributable to redeemable noncontrolling interests		(4,635)			(2,468)		(10,596)			13,244
	Net income (loss) attributable to noncontrolling interests		(432)			197		(1,135)			371
Less:
	Third-party real estate services, including reimbursements revenue		22,463			21,050		92,051			89,022
	Other revenue		2,624			1,663		10,902			7,421
	Loss from unconsolidated real estate ventures, net		(25,679)			(4,600)		(26,999)			(17,429)
	Interest and other income, net		1,649			1,715		15,781			18,617
	Gain on the sale of real estate, net		37,729			3,263		79,335			161,894

Consolidated NOI			73,948			76,195		299,528			297,210
	NOI attributable to unconsolidated real estate ventures at our share		4,475			4,483		19,452			26,861
	Non-cash rent adjustments ⁽¹⁾		(3,568)			(7,655)		(23,482)			(17,442)
	Other adjustments ⁽²⁾		5,174			7,069		22,994			27,739
	Total adjustments		6,081			3,897		18,964			37,158
NOI		$	80,029		$	80,092	$	318,492		$	334,368
	Less: out-of-service NOI loss ⁽³⁾		(905)			(805)		(3,512)			(4,849)
Operating Portfolio NOI		$	80,934		$	80,897	$	322,004		$	339,217
	Non-Same Store NOI ⁽⁴⁾		618			5,889		22,125			44,174
Same Store NOI ⁽⁵⁾		$	80,316		$	75,008	$	299,879		$	295,043

	Change in Same Store NOI		7.1	%				1.6	%
	Number of properties in Same Store pool		44					42

(1)		Adjustment to exclude straight-line rent, above/below market lease amortization and lease incentive amortization.
(2)		Adjustment to include other revenue and payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue and related party management fees.
(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.

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JBG Smith Announces Fourth Quarter and Full Year 2023 Results