JBG Smith Announces Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

JBG SMITH (NYSE: JBGS) reported its Q4 and full-year 2024 financial results. The company posted a net loss of $59.9 million ($0.72 per share) in Q4 2024, compared to a $32.6 million loss in Q4 2023. Full-year 2024 net loss was $143.5 million.

The operating multifamily portfolio was 92.9% leased and 91.0% occupied as of December 31, 2024. The commercial portfolio showed 78.6% leased and 76.5% occupied rates. The company executed approximately 118,000 square feet of office leases in Q4 2024.

Notable transactions include the refinancing of The Grace and Reva mortgage with a $273.6 million five-year loan at 5.19%, and the sale of 2101 L Street for $110.1 million. The company maintained a quarterly dividend of $0.175 per share and continued its share repurchase program.

Positive

• Multifamily portfolio showing strong occupancy at 92.9% leased
• Successfully refinanced The Grace and Reva with $273.6M mortgage loan
• Completed sale of 2101 L Street for $110.1M
• Achieved 4.6% rent increase on multifamily renewals with 60% renewal rate

Negative

• Net loss increased to $59.9M in Q4 2024 from $32.6M in Q4 2023
• Same Store NOI decreased 6.5% quarter-over-quarter
• Commercial portfolio occupancy declined to 76.5% from 79.1% in previous quarter
• Office leases showed 3.0% rental rate decrease on cash basis
• High leverage with Net Debt to Adjusted EBITDA at 11.7x

Insights

Financial Analyst

The Q4 2024 results paint a challenging picture for JBG Smith, with several concerning financial metrics that warrant careful analysis. Core FFO per share dropped 63.2% year-over-year to $0.14, while the quarterly net loss widened to $59.9 million. The 6.5% decline in Same Store NOI signals fundamental weakness in the portfolio's performance.

The commercial portfolio shows significant stress with occupancy dropping 260 basis points to 76.5% in Q4. However, the 10.9% GAAP rental rate increase on new leases suggests some pricing power remains despite market headwinds. The multifamily segment demonstrates relative stability with 92.9% leasing levels and positive rent growth of 4.6% on renewals.

The refinancing of The Grace and Reva properties at 5.19% fixed rate provides important debt stability, though the overall leverage remains concerning at 11.7x Net Debt to Adjusted EBITDA. The sale of 2101 L Street, while resulting in a modest loss, demonstrates the company's commitment to portfolio optimization and debt reduction.

The aggressive share repurchase program, with 2.1 million shares bought post-quarter at $15.15 per share, suggests management views the stock as undervalued. Meanwhile, the maintenance of the quarterly dividend at $0.175 per share indicates confidence in maintaining shareholder returns despite operational challenges.

The 8.9 million square foot development pipeline provides future growth potential, though careful execution will be important given the current market environment. The third-party services business, generating $8.7 million in quarterly revenue, offers a stable income stream to partially offset property-level weakness.

BETHESDA, Md.--(BUSINESS WIRE)-- JBG SMITH (NYSE: JBGS), a leading owner, operator, 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, 2024 and reported its financial results.

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

Fourth Quarter 2024 Highlights

• Net 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, 2024							December 31, 2023							December 31, 2024							December 31, 2023
		Amount			Per Diluted Share				Amount			Per Diluted Share				Amount			Per Diluted Share				Amount			Per Diluted Share
Net loss (1) (2)		$	(59.9	)	$	(0.72	)		$	(32.6	)	$	(0.35	)		$	(143.5	)	$	(1.65	)		$	(80.0	)	$	(0.78	)
FFO (2)		$	11.1		$	0.13			$	33.9		$	0.35			$	55.6		$	0.63			$	140.4		$	1.33
Core FFO		$	11.6		$	0.14			$	36.1		$	0.38			$	73.9		$	0.83			$	154.1		$	1.46

_____________

(1)		Includes gain (loss) on the sale of real estate of $2.3 million and $(2.8) million for the three months and the year ended December 31, 2024. Includes gain on the sale of real estate of $37.7 million and $79.3 million for the three months and the year ended December 31, 2023. Includes impairment losses of $43.9 million and $62.2 million related to real estate assets for the three months and the year ended December 31, 2024. Includes impairment losses of $30.9 million and $90.2 million related to real estate assets for the three months and the year ended December 31, 2023.
(2)		Includes impairment losses of $6.7 million and $25.0 million related to non-depreciable real estate assets for the three months and year ended December 31, 2024.

• Annualized Net Operating Income ("NOI") for the three months ended December 31, 2024 was $272.6 million, compared to $282.4 million for the three months ended September 30, 2024, at our share. Excluding the assets that were sold or taken out of service, Annualized NOI for the three months ended December 31, 2024 was $267.6 million, compared to $266.5 million for the three months ended September 30, 2024, at our share.
  • The slight increase in Annualized NOI excluding the assets that were sold or taken out of service was substantially attributable to (i) lower concessions in line with the seasonality of leasing in our multifamily portfolio as well as the continued lease-up of The Grace and Reva; almost entirely offset by (ii) lower occupancy in our commercial portfolio.
• Same Store NOI ("SSNOI") at our share decreased 6.5% quarter-over-quarter to $64.1 million for the three months ended December 31, 2024.
  • The decrease in SSNOI was substantially attributable to (i) lower occupancy in our commercial portfolio, and (ii) higher repair and maintenance expenses and lower occupancy, partially offset by higher rents in our multifamily portfolio.

Operating Portfolio

• The operating multifamily portfolio was 92.9% leased and 91.0% occupied as of December 31, 2024, compared to 92.7% and 90.6% as of September 30, 2024. Our operating In-Service multifamily portfolio was 96.2% leased and 94.8% occupied as of December 31, 2024, compared to 97.0% and 95.7% as of September 30, 2024.
• In our Same Store multifamily portfolio, we increased effective rents by 0.8% for new leases and 4.6% upon renewal for fourth quarter lease expirations while achieving a 60.0% renewal rate.
• The operating commercial portfolio was 78.6% leased and 76.5% occupied as of December 31, 2024, compared to 80.7% and 79.1% as of September 30, 2024, at our share.
• Executed approximately 118,000 square feet of office leases at our share during the three months ended December 31, 2024, including approximately 83,000 square feet of new leases. Second-generation leases generated a 3.0% rental rate decrease on a cash basis and a 10.9% rental rate increase on a GAAP basis.
• Executed approximately 614,000 square feet of office leases at our share during the year ended December 31, 2024, including approximately 324,000 square feet of new leases. Second-generation leases generated a 1.0% rental rate increase on a cash basis and a 9.8% rental rate increase on a GAAP basis.

Development Portfolio

Under-Construction

• As of December 31, 2024, we had one multifamily asset under construction consisting of 775 units at our share.

Development Pipeline

• As of December 31, 2024, we had 19 assets in the development pipeline consisting of 8.9 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, 2024, revenue from third-party real estate services, including reimbursements, was $17.1 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 $8.7 million, primarily driven by $5.0 million of property and asset management fees, $1.6 million of development fees and $1.2 million of other service revenue.

Balance Sheet

• As of December 31, 2024, our total enterprise value was approximately $4.0 billion, comprising 98.2 million common shares and units valued at $1.5 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 $150.8 million.
• As of December 31, 2024, we had $145.8 million of cash and cash equivalents ($150.8 million of cash and cash equivalents at our share), and $649.8 million of availability under our revolving credit facility.
• Net Debt to annualized Adjusted EBITDA at our share for the three months ended December 31, 2024 was 11.7x, and our Net Debt / total enterprise value was 62.1% as of December 31, 2024.

Investing and Financing Activities

• In November 2024, the mortgage loan collateralized by The Grace and Reva was refinanced with a five-year interest-only $273.6 million mortgage loan with a fixed interest rate of 5.19%.
• In December 2024, we sold 2101 L Street, a commercial asset with 375,493 square feet in Washington, DC, for $110.1 million. In connection with the disposition, the lender of the related $120.9 million mortgage loan accepted the proceeds from the sale as repayment of the mortgage loan.
• During the fourth quarter of 2024, we repurchased and retired 153,843 common shares for $2.4 million, a weighted average purchase price per share of $15.58.

Subsequent to December 31, 2024

• Through February 14, 2025, we repurchased and retired 2.1 million common shares for $32.3 million, a weighted average purchase price per share of $15.15, pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

Dividends

• On December 16, 2024, our Board of Trustees declared a quarterly dividend of $0.175 per common share, paid on January 14, 2025 to shareholders of record as of December 30, 2024.

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, that we believe have long-term growth potential and appeal to residential, office and retail tenants. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, highly amenitized, 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 headquarters; Virginia Tech's $1 billion Innovation Campus; proximity to the Pentagon; and our placemaking initiatives and public infrastructure improvements. JBG SMITH's dynamic portfolio currently comprises 12.5 million square feet of multifamily, office and retail assets at share, 98% of which are Metro-served. It also maintains a development pipeline encompassing 8.9 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: 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 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, 2024 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

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

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

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

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

Non-GAAP Financial Measures

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

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

Adjusted EBITDA represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, 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 (losses) from the sale of certain real estate assets, gains (losses) from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

Core FFO represents FFO adjusted to exclude items which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, 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"), "Same Store NOI" and "Annualized NOI" are non-GAAP financial measures management uses to assess an asset's performance. The most directly comparable GAAP measure is net income (loss) attributable to common shareholders. We use NOI internally as a performance measure and believe NOI, Same Store NOI and Annualized NOI provide useful information to investors regarding our financial condition and results of operations because it reflects only property related revenue (which includes base rent, tenant reimbursements and other operating revenue, net of Free Rent and payments associated with assumed lease liabilities) less operating expenses and ground rent for operating leases, if applicable. NOI excludes deferred (straight-line) rent, commercial lease termination revenue, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and the amortization of acquired above-market leases and below-market ground lease intangibles. Management uses NOI, which includes our proportionate share of revenue and expenses attributable to real estate ventures, as a supplemental performance measure and believes it provides useful information to investors because it reflects only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of NOI as a measure of the operating performance of our assets is limited. NOI presented by us may not be comparable to NOI reported by other 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 consolidated financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Annualized NOI represents NOI for the three months ended December 31, 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, 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/or 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, 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 December 31, 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 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, 2024.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
in thousands		December 31, 2024				December 31, 2023
ASSETS
Real estate, at cost:
Land and improvements		$	1,109,172			$	1,194,737
Buildings and improvements			4,083,937				4,021,322
Construction in progress, including land			338,333				659,103
			5,531,442				5,875,162
Less: accumulated depreciation			(1,419,983	)			(1,338,403	)
Real estate, net			4,111,459				4,536,759
Cash and cash equivalents			145,804				164,773
Restricted cash			37,388				35,668
Tenant and other receivables			23,478				44,231
Deferred rent receivable			170,153				171,229
Investments in unconsolidated real estate ventures			93,654				264,281
Deferred leasing costs, net			69,821				81,477
Intangible assets, net			47,000				56,616
Other assets, net			131,318				163,481
Assets held for sale			190,465				—
TOTAL ASSETS		$	5,020,540			$	5,518,515
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Liabilities:
Mortgage loans, net		$	1,767,173			$	1,783,014
Revolving credit facility			85,000				62,000
Term loans, net			717,853				717,172
Accounts payable and accrued expenses			101,096				124,874
Other liabilities, net			115,827				138,869
Liabilities related to assets held for sale			901				—
Total liabilities			2,787,850				2,825,929
Commitments and contingencies
Redeemable noncontrolling interests			423,632				440,737
Total equity			1,809,058				2,251,849
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY		$	5,020,540			$	5,518,515
Note: For complete financial statements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2024.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
in thousands, except per share data		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
REVENUE
Property rental		$	108,429			$	118,240			$	456,950			$	483,159
Third-party real estate services, including reimbursements			17,139				22,463				69,465				92,051
Other revenue			5,214				6,876				20,897				28,988
Total revenue			130,782				147,579				547,312				604,198
EXPENSES
Depreciation and amortization			49,969				57,281				208,180				210,195
Property operating			35,818				34,937				146,609				144,049
Real estate taxes			12,600				13,607				52,606				57,668
General and administrative:
Corporate and other			14,935				12,376				58,790				54,838
Third-party real estate services			17,199				21,615				74,264				88,948
Share-based compensation related to Formation Transaction and special equity awards			—				152				—				549
Transaction and other costs			2,312				943				5,317				8,737
Total expenses			132,833				140,911				545,766				564,984
OTHER INCOME (EXPENSE)
Loss from unconsolidated real estate ventures, net			(7,126	)			(25,679	)			(7,122	)			(26,999	)
Interest and other income, net			1,493				1,649				11,598				15,781
Interest expense			(36,668	)			(28,080	)			(134,068	)			(108,660	)
Gain (loss) on the sale of real estate, net			2,313				37,729				(2,753	)			79,335
Gain (loss) on the extinguishment of debt			9,192				—				9,235				(450	)
Impairment loss			(37,191	)			(30,919	)			(55,427	)			(90,226	)
Total other income (expense)			(67,987	)			(45,300	)			(178,537	)			(131,219	)
LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT			(70,038	)			(38,632	)			(176,991	)			(92,005	)
Income tax (expense) benefit			(802	)			968				(762	)			296
NET LOSS			(70,840	)			(37,664	)			(177,753	)			(91,709	)
Net loss attributable to redeemable noncontrolling interests			9,849				4,635				22,202				10,596
Net loss attributable to noncontrolling interests			1,094				432				12,025				1,135
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	(59,897	)		$	(32,597	)		$	(143,526	)		$	(79,978	)
LOSS PER COMMON SHARE - BASIC AND DILUTED		$	(0.72	)		$	(0.35	)		$	(1.65	)		$	(0.78	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED			84,441				95,434				88,330				105,095
Note: For complete financial statements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2024.

EBITDA, EBITDAre AND ADJUSTED EBITDA RECONCILIATIONS (NON-GAAP) (Unaudited)
dollars in thousands		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
EBITDA, EBITDAre and Adjusted EBITDA
Net loss		$	(70,840	)		$	(37,664	)		$	(177,753	)		$	(91,709	)
Depreciation and amortization expense			49,969				57,281				208,180				210,195
Interest expense			36,668				28,080				134,068				108,660
Income tax expense (benefit)			802				(968	)			762				(296	)
Unconsolidated real estate ventures allocated share of above adjustments			1,947				3,892				8,166				16,673
EBITDA attributable to noncontrolling interests			—				32				—				28
EBITDA		$	18,546			$	50,653			$	173,423			$	243,551
(Gain) loss on the sale of real estate, net			(2,313	)			(37,729	)			2,753				(79,335	)
(Gain) loss on the sale of unconsolidated real estate assets			—				230				(480	)			(411	)
Real estate impairment loss			37,191				30,919				37,191				90,226
Impairment loss related to unconsolidated real estate ventures (1)			—				25,279				—				28,598
EBITDAre		$	53,424			$	69,352			$	212,887			$	282,629
Transaction and other costs, net of noncontrolling interests (2)			2,312				943				5,317				8,737
Litigation settlement proceeds, net			—				—				—				(3,455	)
(Income) loss from investments, net			(64	)			182				(3,270	)			(932	)
Impairment loss related to non-depreciable real estate (3)			6,748				—				24,984				—
(Gain) loss on the extinguishment of debt			(9,192	)			—				(9,235	)			450
Share-based compensation related to Formation Transaction and special equity awards			—				152				—				549
Earnings and distributions in excess of our investment in unconsolidated real estate venture			(309	)			(118	)			(1,315	)			(706	)
Lease liability adjustments			—				6				—				(148	)
Unconsolidated real estate ventures allocated share of above adjustments			—				27				227				60
Adjusted EBITDA		$	52,919			$	70,544			$	229,595			$	287,184
Net Debt to Annualized Adjusted EBITDA (4)			11.7				8.7				10.8				8.5
										December 31, 2024				December 31, 2023
Net Debt (at JBG SMITH Share)
Consolidated indebtedness (5)										$	2,562,746			$	2,551,987
Unconsolidated indebtedness (5)											66,834				66,271
Total consolidated and unconsolidated indebtedness											2,629,580				2,618,258
Less: cash and cash equivalents											150,813				171,631
Net Debt (at JBG SMITH Share)										$	2,478,767			$	2,446,627

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 costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(3)	Includes our proportionate share of impairment losses of $6.7 million related to unconsolidated real estate ventures for the three months and year ended December 31, 2024.
(4)	Quarterly Adjusted EBITDA is annualized by multiplying by four.
(5)	Net of premium/discount and deferred financing costs.

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP) (Unaudited)
in thousands, except per share data	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
FFO and Core FFO
Net loss attributable to common shareholders	$	(59,897	)		$	(32,597	)		$	(143,526	)		$	(79,978	)
Net loss attributable to redeemable noncontrolling interests		(9,849	)			(4,635	)			(22,202	)			(10,596	)
Net loss attributable to noncontrolling interests		(1,094	)			(432	)			(12,025	)			(1,135	)
Net loss		(70,840	)			(37,664	)			(177,753	)			(91,709	)
(Gain) loss on the sale of real estate, net of tax		(2,313	)			(37,729	)			1,541				(79,335	)
(Gain) loss on the sale of unconsolidated real estate assets		—				230				(480	)			(411	)
Real estate depreciation and amortization		48,307				55,588				201,510				203,269
Real estate impairment loss		37,191				30,919				37,191				90,226
Impairment loss related to unconsolidated real estate ventures (1)		—				25,279				—				28,598
Pro rata share of real estate depreciation and amortization from unconsolidated real estate ventures		892				2,690				3,978				11,545
FFO attributable to noncontrolling interests		—				321				—				1,024
FFO Attributable to OP Units	$	13,237			$	39,634			$	65,987			$	163,207
FFO attributable to redeemable noncontrolling interests		(2,123	)			(5,770	)			(10,361	)			(22,820	)
FFO Attributable to Common Shareholders	$	11,114			$	33,864			$	55,626			$	140,387
FFO attributable to OP Units	$	13,237			$	39,634			$	65,987			$	163,207
Transaction and other costs, net of tax and noncontrolling interests (2)		2,306				969				5,044				8,434
Litigation settlement proceeds, net		—				—				—				(3,455	)
(Income) loss from investments, net of tax		(48	)			137				(2,476	)			(699	)
Impairment loss related to non-depreciable real estate (3)		6,748				—				24,984				—
Loss from mark-to-market on derivative instruments, net of noncontrolling interests		6				439				83				7,153
(Gain) loss on the extinguishment of debt		(9,192	)			—				(9,235	)			450
Earnings and distributions in excess of our investment in unconsolidated real estate venture		(309	)			(118	)			(1,315	)			(706	)
Share-based compensation related to Formation Transaction and special equity awards		—				152				—				549
Lease liability adjustments		—				6				—				(148	)
Amortization of management contracts intangible, net of tax		1,058				1,032				4,236				4,193
Unconsolidated real estate ventures allocated share of above adjustments		(3	)			26				227				130
Core FFO Attributable to OP Units	$	13,803			$	42,277			$	87,535			$	179,108
Core FFO attributable to redeemable noncontrolling interests		(2,214	)			(6,155	)			(13,652	)			(25,013	)
Core FFO Attributable to Common Shareholders	$	11,589			$	36,122			$	73,883			$	154,095
FFO per common share - diluted	$	0.13			$	0.35			$	0.63			$	1.33
Core FFO per common share - diluted	$	0.14			$	0.38			$	0.83			$	1.46
Weighted average shares - diluted (FFO and Core FFO)		84,594				95,545				88,500				105,195
See footnotes on page 15.

FFO, CORE FFO AND FAD RECONCILIATIONS (NON-GAAP) (Unaudited)
in thousands, except per share data		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
FAD
Core FFO attributable to OP Units		$	13,803			$	42,277			$	87,535			$	179,108
Recurring capital expenditures and Second-generation tenant improvements and leasing commissions (4)			(12,527	)			(12,055	)			(43,878	)			(40,676	)
Straight-line and other rent adjustments (5)			(1,726	)			(3,568	)			(9,482	)			(23,482	)
Third-party lease liability assumption (payments) refunds			—				—				(25	)			70
Share-based compensation expense			3,261				4,887				28,314				29,367
Amortization of debt issuance costs			4,182				3,755				16,145				9,777
Unconsolidated real estate ventures allocated share of above adjustments			209				932				1,250				2,850
Non-real estate depreciation and amortization			287				318				1,170				1,337
FAD available to OP Units (A)		$	7,489			$	36,546			$	81,029			$	158,351
Distributions to common shareholders and unitholders (B)		$	35,281			$	25,216			$	91,182			$	109,320
FAD Payout Ratio (B÷A) (6)			471.1	%			69.0	%			112.5	%			69.0	%
Capital Expenditures
Maintenance and recurring capital expenditures		$	5,965			$	7,151			$	16,330			$	18,795
Share of maintenance and recurring capital expenditures from unconsolidated real estate ventures			5				17				21				62
Second-generation tenant improvements and leasing commissions			6,367				4,747				27,316				21,516
Share of Second-generation tenant improvements and leasing commissions from unconsolidated real estate ventures			190				140				211				303
Recurring capital expenditures and Second-generation tenant improvements and leasing commissions			12,527				12,055				43,878				40,676
Non-recurring capital expenditures			6,965				2,595				15,473				33,614
Share of non-recurring capital expenditures from unconsolidated real estate ventures			—				5				28				10
First-generation tenant improvements and leasing commissions			3,530				3,046				10,114				17,633
Share of First-generation tenant improvements and leasing commissions from unconsolidated real estate ventures			40				479				145				1,126
Non-recurring capital expenditures			10,535				6,125				25,760				52,383
Total JBG SMITH Share of Capital Expenditures		$	23,062			$	18,180			$	69,638			$	93,059

(1)		Related to decreases in the value of the underlying real estate assets.
(2)		Includes costs related to completed, potential and pursued transactions, demolition costs, severance and other costs.
(3)		Includes our proportionate share of impairment losses of $6.7 million related to unconsolidated real estate ventures for the three months and year ended December 31, 2024.
(4)		Includes amounts, at JBG SMITH Share, related to unconsolidated real estate ventures.
(5)		Includes straight-line rent, above/below market lease amortization and lease incentive amortization.
(6)		The quarterly FAD payout ratio is not necessarily indicative of an amount for the full year due to fluctuation in the timing of capital expenditures, the commencement of new leases and the seasonality of our operations.

NOI RECONCILIATIONS (NON-GAAP) (Unaudited)
dollars in thousands		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net loss attributable to common shareholders		$	(59,897	)		$	(32,597	)		$	(143,526	)		$	(79,978	)
Net loss attributable to redeemable noncontrolling interests			(9,849	)			(4,635	)			(22,202	)			(10,596	)
Net loss attributable to noncontrolling interests			(1,094	)			(432	)			(12,025	)			(1,135	)
Net loss			(70,840	)			(37,664	)			(177,753	)			(91,709	)
Add:
Depreciation and amortization expense			49,969				57,281				208,180				210,195
General and administrative expense:
Corporate and other			14,935				12,376				58,790				54,838
Third-party real estate services			17,199				21,615				74,264				88,948
Share-based compensation related to Formation Transaction and special equity awards			—				152				—				549
Transaction and other costs			2,312				943				5,317				8,737
Interest expense			36,668				28,080				134,068				108,660
(Gain) loss on the extinguishment of debt			(9,192	)			—				(9,235	)			450
Impairment loss			37,191				30,919				55,427				90,226
Income tax expense (benefit)			802				(968	)			762				(296	)
Less:
Third-party real estate services, including reimbursements revenue			17,139				22,463				69,465				92,051
Loss from unconsolidated real estate ventures, net			(7,126	)			(25,679	)			(7,122	)			(26,999	)
Interest and other income, net			1,493				1,649				11,598				15,781
Gain (loss) on the sale of real estate, net			2,313				37,729				(2,753	)			79,335
Adjustments:
NOI attributable to unconsolidated real estate ventures at our share			1,302				4,475				6,808				19,452
Non-cash rent adjustments (1)			(1,726	)			(3,568	)			(9,482	)			(23,482	)
Other adjustments (2)			1,053				2,550				1,321				12,092
Total adjustments			629				3,457				(1,353	)			8,062
NOI		$	65,854			$	80,029			$	277,279			$	318,492
Less: out-of-service NOI loss (3)			(2,289	)			(905	)			(9,922	)			(3,512	)
Operating Portfolio NOI		$	68,143			$	80,934			$	287,201			$	322,004
Non-Same Store NOI (4)			4,073				12,424				19,537				57,799
Same Store NOI (5)		$	64,070			$	68,510			$	267,664			$	264,205
Change in Same Store NOI			(6.5	)%							1.3	%
Number of properties in Same Store pool			36								36

(1)		Adjustment to exclude deferred (straight-line) rent, above/below market lease amortization and lease incentive amortization.
(2)		Adjustment to exclude commercial lease termination revenue, related party management fees and corporate entity activity.
(3)		Includes the results of our Under-Construction assets and assets in the Development Pipeline.
(4)		Includes the results of properties that were not In-Service for the entirety of both periods being compared, including disposed properties, and properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared.
(5)		Includes the results of the properties that are owned, operated and In-Service for the entirety of both periods being compared.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250218378403/en/

Kevin Connolly

Executive Vice President, Portfolio Management & Investor Relations

(240) 333‑3837

kconnolly@jbgsmith.com

Source: JBG SMITH

FAQ

What was JBG SMITH's (JBGS) net loss in Q4 2024?

JBG SMITH reported a net loss of $59.9 million ($0.72 per share) in Q4 2024.

What is the occupancy rate of JBGS's multifamily portfolio as of December 2024?

The operating multifamily portfolio was 92.9% leased and 91.0% occupied as of December 31, 2024.

How much office space did JBGS lease in Q4 2024?

JBGS executed approximately 118,000 square feet of office leases in Q4 2024, including about 83,000 square feet of new leases.

What was the sale price of JBGS's 2101 L Street property in December 2024?

JBGS sold 2101 L Street, a commercial asset in Washington, DC, for $110.1 million in December 2024.

What is JBGS's current quarterly dividend per share?

JBGS declared a quarterly dividend of $0.175 per common share, paid on January 14, 2025.