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Quarterly Investor Package

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JBGS Divider

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Management Letter

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November 2, 2021

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To Our Fellow Shareholders:

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There will come a time (hopefully soon) when this letter leads with something other than the pandemic. While the recovery that picked up in earnest in the second quarter continues, the Delta variant surge was an unwelcome headwind. Many employers delayed return-to-the-office plans, and some even pushed their target return dates to early 2022. As we make our way past the peak of this latest surge, we expect to see continued improvement of market fundamentals as the virus wanes and rising vaccination counts slow the spread of COVID-19 where we operate. Feedback from employers who have returned to the office is encouraging, with companies describing increased efficiency, creativity and strengthened appreciation of a unified workforce, all of which bode extremely well for the future of office utilization. The headlines for our business from this quarter align well with our focus on maximizing long term net asset value per share.

Amazon nearly doubled its workforce in National Landing in less than one year, with over 3,000 new hires and over 2,500 current open positions. Construction at Phase I of HQ2, Metropolitan Park, remains well underway, with 13 of the planned 22 stories currently above ground and an unchanged planned delivery in 2023.

Virginia Tech broke ground on the first building on its $1 billion Innovation Campus in National Landing, a planned 300,000 square foot, 11-story academic building. The University expects to occupy this first phase of owned space in 2024.

Our placemaking strategy in National Landing continued with an important lease executed at Dining in the Park with the award-winning local Chef from Seven Restaurant Group. Dining in the Park is a critically important element of our ongoing repositioning of National Landing and will be a first-of-its-kind dining experience located adjacent to the planned National Landing Rail Station and pedestrian bridge to Reagan National Airport.

We are under firm contract to acquire a 432-unit multifamily asset for approximately $205 million. We expect The Batley, a newly constructed asset located in DC’s Union Market, to generate stabilized annualized NOI of approximately $8 - $8.5 million, representing a stabilized capitalization rate of approximately 4%. Subject to customary closing conditions, we plan to close the acquisition by year end, and for it to be our like-kind exchange for the sale of Pen Place.

We closed on the sale of 500 L’Enfant Plaza, a 215,000 square foot trophy office asset, of which we owned 49%, for approximately $167 million ($774 PSF), representing a stabilized capitalization rate of approximately 5%. We have generated over $92 million of sale proceeds in 2021, which deleveraged our balance sheet and created capacity for future multifamily investment opportunities. Additionally, we are actively marketing over $500 million of non-core office and land assets.

We achieved carbon neutrality across our operating portfolio, the first step in our strategy of increased and differentiated portfolio sustainability. This is an important step among many that we have taken to improve the sustainable operations of our business, differentiating us from many of our competitors in a marketplace where customers increasingly value climate responsibility.

We provide more detail on each of these growth drivers below.

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JBG SMITH Overview

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We own and operate urban mixed-use properties concentrated in what we believe are the highest growth submarkets of the historically recession-resilient Washington, DC metro area.

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Our concentration in these submarkets, our substantial portfolio of operating and development opportunities, and our market-leading platform position us to capitalize on the significant growth we anticipate in our target submarkets.

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Over 50% of our holdings are in the National Landing submarket in Northern Virginia, directly across the Potomac River from Washington, DC, where Amazon’s new 5 million+ square foot headquarters and Virginia Tech’s under-construction $1 billion Innovation Campus are located.

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The Commonwealth of Virginia has incentivized Amazon to bring up to 38,000 new jobs to National Landing, which, based on data from the National Landing Business Improvement District, would increase the daytime population in the submarket from approximately 50,000 people today to nearly 90,000 people in the future, representing dramatic growth of more than 70%. Amazon recently amended its return-to-the-office plans, authorizing team leaders to establish the number of days their respective groups would be required to be physically present in the office. This revised and more relaxed policy aligns well with Amazon’s aggressive hiring in the current competitive job market. The company reiterated, however, that it expects employees to live locally and within commuting distance of the office for at least 11 months of the year.

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At the Seattle headquarters, approximately 20% of Amazon’s employees live within walking or biking distance to work, and Amazon provides a $350 monthly stipend for employees who bike to HQ2. Using Amazon’s Seattle employee patterns and preferences as proxies for behaviors that might be expected at HQ2, 20% of employees, or up to 7,600 Amazon employees, could be expected to live within the National Landing submarket. This potential influx of demand for additional multifamily units aligns well with our plans to deliver new multifamily supply to the submarket. In addition to the 808 units at 1900 Crystal Drive currently under construction, our Near-Term Development Pipeline has the potential to add as many as 2,535 new multifamily units.

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While we control 77% of the existing office supply and 79% of the unencumbered development density in National Landing, the balance of our portfolio is concentrated in what we believe are the highest growth submarkets in the Washington, DC metro region, the majority of which are within a 20-minute commute of the growing technology ecosystem in National Landing.

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We believe the strong technology sector tailwinds created by Amazon, the Virginia Tech Innovation Campus, and our National Landing Smart City initiative, including our 5G rollout and other connectivity enhancements with best-in-class partners, will drive substantial long-term NAV per share growth.

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Our successful track record and well-established platform position us to maximize the value of our Development Pipeline and to access attractively priced capital through opportunistic land sales, ground leases, and/or recapitalizations with private investors.

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As of the third quarter, we had one asset under construction – 1900 Crystal Drive, an 808-unit multifamily property located in the heart of National Landing. Upon stabilization, we expect this asset to generate approximately $23 million of annualized NOI, representing a 5.8% yield on cost. Since our formation in 2017, we have successfully delivered 2.8 million square feet of mixed-use development, with an estimated stabilized yield of 6.5% for multifamily assets and 7.0% for commercial assets.

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Over the past year, we advanced the design and entitlement of approximately 77% of our Development Pipeline, 60% of which is in National Landing. Our 14.6 million square foot Development Pipeline, 73% of which is multifamily, includes both a 5.1 million square foot Near-Term Development Pipeline and a 9.5 million square foot Future Development Pipeline. Our Near-Term Development Pipeline comprises what we believe to be the most accretive and strategic development opportunities in our growth pipeline – those which have the potential to commence construction over the next 36 months, subject to receipt of final entitlements, completion of design, and market conditions. Within our Future Development Pipeline, we have fully entitled 3.6 million square feet and are actively advancing design and entitlement on an additional 4.3 million square feet. We believe that advancing entitlement and design of these assets is the best way to maximize optionality and value, either through internal development, land sales, ground lease structures, and/or recapitalizations with third-party capital. The remaining 1.6 million square feet within our Future Development pipeline primarily includes encumbered assets that we are not currently entitling.

Our capital allocation strategy is to shift our portfolio to majority multifamily and concentrate our office portfolio in National Landing.

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We expect our portfolio shift to majority multifamily will occur through a combination of investing in multifamily assets and divesting non-core office assets. In addition to the sale of $1.7 billion of non-core, primarily office assets since our formation in 2017, we intend to opportunistically sell at least another $1.4 billion of non-core assets, including office assets outside of National Landing as well as land sites where ground lease or joint venture execution may represent the most attractive path to maximizing value.

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Q3 2021 and Recent Highlights

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The Batley

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We are under firm contract to acquire The Batley, a 432-unit, 300,000 square foot multifamily asset, for a purchase price of approximately $205 million. We expect to close on this newly constructed asset by year end, subject to customary closing conditions. The Batley is in DC’s Union Market, a vibrant entertainment and nightlife district with more than one million square feet of retail planned at full build-out including current anchors Union Market food hall, Trader Joe’s, Blue Bottle Coffee, La Cosecha Latin Market, and multiple award-winning restaurants including the Michelin-starred Masseria. The Batley is walking distance to the Metro’s red line and is adjacent to both Gallaudet University and our 840-unit Gallaudet Near-Term Development sites. The Batley is also centrally located and easily walkable from significant office tenants such as ByteDance (TikTok’s parent company) as well as the under-construction future home of the Securities and Exchange Commission (expected completion in early 2026). The Batley was 90.7% occupied as of September 30, 2021. Upon stabilization, we expect the asset to generate approximately $8 - $8.5 million of annualized NOI, representing a stabilized capitalization rate of approximately 4%. We intend to use the asset as a replacement property in a like-kind exchange for the proceeds from the sale of Pen Place to Amazon. While customary design changes have pushed the Pen Place entitlement approvals and resulting closing to Q2 2022, we expect to begin receiving income from The Batley this year.

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Virginia Tech Innovation Campus

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In September, Virginia Tech broke ground on the first of three academic buildings to be developed as part of its $1 billion Innovation Campus. The 11-story, 300,000-square foot building, which is expected to be completed and occupied in 2024, contemplates a gem-shaped education and research center to house instruction, research, office, and support spaces for master’s and doctoral graduate programs focused on computer science and computer engineering. Virginia Tech’s plans call for two additional campus buildings, measuring approximately 150,000

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square feet each, to be built in a later phase. While the University expects to occupy its first phase of owned space in 2024, Virginia Tech is currently leasing interim space adjacent to the under-construction Innovation Campus. JBG SMITH is serving as the master developer on behalf of both Virginia Tech and the entire 20-acre innovation district, adjacent to the currently under-construction Potomac Yard Metro station. Once complete, the innovation district is expected to include 1.9 million square feet of academic, office, retail, and residential development, as well as more than 6.6 acres of public open space.

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Near-Term Incremental NOI Update

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We believe we will generate significant near-term NOI growth from the following drivers:

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While these factors contribute to near-term NOI growth, our financial results may continue to be negatively impacted in the short-term by the COVID-19 pandemic. Despite improvements we saw in the third quarter, commercial parking income and NOI from our multifamily portfolio remain below pre-pandemic levels. Additionally, we believe the pandemic has delayed our ability to backfill some known 2021 and 2022 office vacates related to tenants’ pre-pandemic leasing decisions. While our office portfolio has exhibited strong leasing with 1.2 million square feet leased year-to-date, most of these leases comprise renewals (846,000 square feet). New leasing has been slow to recover over the past 18 months and will likely lag due to delayed return-to-the-office plans and decision-making related to future office utilization. We expect this lag to continue to impact our occupancy levels through 2022.

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Capital Allocation

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In the third quarter, we closed on the sale of 500 L’Enfant Plaza, a 215,000 square foot trophy office asset, of which we owned 49%, for approximately $167 million ($774 PSF), representing a stabilized capitalization rate of approximately 5%.  Year-to-date, we have generated over $92 million of sale proceeds which deleveraged our balance sheet and created capacity for future multifamily investment opportunities. 

Our capital allocation strategy includes an additional $1.4 billion of dispositions of non-core assets outside of National Landing. These dispositions include income-producing office assets, as well as non-core land holdings that will serve as a source of capital through sale, ground lease or joint venture. This basket of assets generated approximately $76 million of annualized NOI in the third quarter, adjusting for free rent, and, since our formation in 2017, required average annual capital expenditures of approximately $24 million. As we complete these dispositions, we expect to recycle approximately two-thirds of the proceeds into income-producing multifamily acquisitions, yielding stabilized capitalization rates in the 3.5% to 4.5% range, with the remaining one-third earmarked for deleveraging / funding our Near-Term Development Pipeline. For example, in the third quarter, we completed the design of 2000 and 2001 South Bell Street, two multifamily assets located in National Landing comprising 775 units. Construction is expected to commence at the beginning of 2022, subject to execution of a

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guaranteed maximum price contract, which we expect will be in-line with pricing achieved at 1900 Crystal Drive. Successful execution of this strategy will enable us to source funding at NAV from assets generating low cash yields to invest in new acquisitions with higher cash yields and growth, as well as in development projects with significant yield spreads and profit potential.

As the capital markets gradually reopen for office transactions, we are gaining increased visibility on pricing and liquidity. We are encouraged by the activity on the over $500 million of non-core assets that we are currently marketing. Barring any significant changes in market conditions or resurgence of the pandemic, we expect to market at least an additional $500 million of recycling transactions by year end 2022. We intend to pursue these recycling opportunities to accomplish our strategic objectives without delay while also ensuring the continued strength of our balance sheet as we pursue accretive investment opportunities.

We continue to seek investment opportunities with the highest potential risk-adjusted returns, which may include share repurchases.  During the third quarter, we repurchased 2.3 million shares at a weighted average price of $29.73, totaling $68.9 million.  Since we instituted our share repurchase plan in March 2020, we have repurchased 6.7 million shares at a weighted average price of $28.71, totaling $192.9 million.

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Financial and Operating Metrics

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For the three months ended September 30, 2021, we reported net income attributable to common shareholders of $0.9 million and Core FFO attributable to common shareholders of $42.5 million or $0.32 per diluted share. Same Store NOI for the quarter remained unchanged year-over-year at $72.7 million, while NOI for our operating portfolio and Adjusted EBITDA increased year-over-year by 12.6% and 6.7%, respectively. Our operating portfolio ended the quarter at 87.5% leased and 85.0% occupied. For second generation leases, the rental rate mark-to-market was negative 0.3%. As we have mentioned before, our mark-to-market will vary from quarter to quarter depending on the leases signed.

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As of September 30, 2021, our Net Debt/Total Enterprise Value was 34.3%. Our Net Debt/Annualized Adjusted EBITDA increased to 7.9x in the third quarter and remains higher than historical levels primarily due to the impact of COVID-19 on certain income streams. We believe our leverage levels will continue to be elevated in the short-term given the pandemic’s impact on these income streams. As income streams improve with an economic recovery, and our newly delivered assets lease-up and stabilize, we expect our leverage to decrease, potentially offset by increases during active development. Finally, because our like-kind exchange for the Pen Place land is contemplated as a reverse like-kind exchange, our leverage will increase temporarily as we fund the acquisition of The Batley this year prior to receiving the cash proceeds from the land sale, which we expect in the second quarter of 2022.

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Operating Portfolio

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Office Trends

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Our office portfolio performance remained relatively stable in the third quarter. While we experienced a significant uptick in the early summer, tour activity tapered off through the late summer and early fall and has yet to return to pre-pandemic levels. As a result, our quarterly leasing volume of 126,000 square feet was muted when compared to the strong volume we saw in the prior quarter. We believe this reduced volume is related both to the leasing seasonality we have historically observed in the summer months as well as the rise of COVID-19 Delta cases in July and August. Despite the slowdown, we are encouraged by a sizeable deal pipeline that we believe will lead to strong leasing in the upcoming quarters. Occupancy in our commercial portfolio declined by 180 bps quarter-over-quarter, the majority of which was related to pre-pandemic decision making.

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U.S. Government (GSA) Tenancy

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There has been significant discussion regarding the future of the GSA’s office utilization. Representing approximately 21% of our third quarter annualized rent, the GSA is our largest tenant. 84% of this tenancy operates in buildings that are included in our long-term hold (National Landing) portfolio, and we intend to reduce the remaining 16% through our capital recycling initiatives. While the GSA represents our largest tenant concentration, there is a clear dichotomy between the two types of agencies within this group: mission critical agencies, such as the Department of Defense, and civilian agencies, such as the Social Security Administration.

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Mission critical agencies represent 89% of our National Landing GSA tenancy, over 99% of which requires Sensitive Compartment Information Facilities (SCIF)/secure space or has high security requirements that cannot be transferred to a home office. The commitment to office-centric work is highlighted through Kastle Systems data, which reported monthly average key swipes by our mission critical National Landing GSA tenants at approximately 65% in the third quarter. We believe this tenant base will remain heavy office users and anticipate minimal reductions to square footage requirements over the long-term. Alternatively, the civilian agencies, which represent 11% of our National Landing GSA tenancy (approximately 218,000 square feet), carry a higher risk of post-pandemic contraction given the nature of their work and the ability to potentially transfer duties to a home office. While this is a risk, the civilian sector of our GSA tenancy in National Landing accounts for only 2% of our annualized office and retail rent (or approximately 1% of total annualized rent).

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Market-Wide Trends (based on JLL reports)

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Like what we observed in our own portfolio, tour activity across the region remained relatively slow through the third quarter. Nonetheless, the market has shown signs of bottoming with rates of negative absorption slowing, particularly in Northern Virginia. The DC metro region experienced negative net absorption of just 559,000 square feet in the third quarter, which is approximately 1 million square feet less than last quarter’s 1.6 million square feet of losses. Although the 20.8% vacancy rate was relatively unchanged, we believe this is a sign that the market has bottomed, after nearly 6 million square feet of negative absorption reported year-to-date. Northern Virginia saw an even more pronounced slowdown in space givebacks than DC itself, a positive indicator for a return of net growth in the market. It’s uncertain what that recovery will look like, but since JLL has seen disproportionate losses among older assets in the District and non-Metro, non-amenitized locations in the suburbs, the data suggest that the recovery will come first for high-quality buildings in amenity-rich, transit-oriented markets.

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Multifamily Trends

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Our multifamily portfolio performance continues to improve. We experienced strong leasing during the third quarter due to customers returning to urban environments at a faster pace than we anticipated. Our portfolio ended the quarter at 90.2% occupied, up 390 basis points quarter-over-quarter, and 92.9% leased. Additionally, our portfolio asking rents more than fully rebounded to 2% above pre-pandemic (March 2020) levels, after declining 15% from March 2020 to December 2020. This trend is led by our National Landing and Maryland submarkets, with DC expected to further improve as supply is absorbed. With demand remaining strong and our portfolio in-place rents still approximately 9% below asking rents, our residential portfolio has significant embedded growth. We have also seen a dramatic burn-off in pandemic-driven concession packages, with concessions burning off entirely in some of our key submarkets.

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As in our portfolio, multifamily market fundamentals have improved in the region and across other gateway markets from Q3 2020 through Q3 2021. Data from Apartment List show that the DC metro region saw 9.9% asking rent growth during this time while other gateway markets including New York, San Francisco, and Boston saw 11.3%.

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We believe our region saw slower growth from Q3 2020 through Q3 2021 because the DC region’s multifamily market was more resilient throughout the pandemic than in those other regions. Asking rents in the DC metro declined 3.4% from Q1 2020 through Q3 2020, compared to a decline of 6.2% in other gateway markets. As such, asking rents at the end of the third quarter were 6.2% higher than pre-pandemic levels (Q1 2020) in our region compared to just 4.4% in other gateway markets. According to the same Apartment List data set, occupancy across both the DC region and other gateway markets has stabilized around 96%.

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According to data compiled from CoStar and UrbanTurf on supply, positive sentiment around the apartment market’s performance has driven approximately 300 units starting construction in the third quarter. Despite the new starts, the data still indicate average projected annual deliveries of 5,900 units from 2021 through 2023 – compared to an average of over 9,000 units from 2010 through 2019. With continued strong demand for multifamily, this level of deliveries should create a favorable environment for continued rent growth.

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Retail Trends

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Despite the surge in COVID-19 cases through the summer months, retail tenants are back in full force and looking for opportunities to capitalize on pent-up demand. With 15 transactions totaling over 34,000 square feet, our retail portfolio experienced its strongest leasing quarter since the onset of the pandemic. September represented our highest monthly leasing volume since December 2019 and accounted for over 32% of our retail leasing volume year-to-date.

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In National Landing, we continue to make progress on the retail placemaking front. As mentioned last quarter, our Crystal Drive retail repositioning, a project largely constructed and leased during the pandemic, is nearly 100% leased or committed with approximately 20% of the tenants open for business and the remainder under construction or in the final building permitting process. Additionally, we recently advanced our Dining in the Park project – a unique, urban indoor/outdoor dining experience located immediately adjacent to the planned National Landing rail station and pedestrian bridge to Reagan National Airport. We signed a lease for a new restaurant concept with the award-winning Chef from Seven Restaurant Group (operator of two critically acclaimed restaurants in DC), which further reinforces National Landing as an outstanding experiential retail destination. We expect construction for Dining in the Park to begin this year with delivery in 2023. Finally, as the retail leasing partner for Amazon’s HQ2, we have made strong progress with several tenants for the ground floor retail space at the under-construction Metropolitan Park. We view all of these projects as important investments in our broader submarket repositioning strategy, serving as a foundation of anchor amenities that will enable future phases of placemaking development across the submarket. When combining JBG SMITH’s and Amazon’s planned retail deliveries in the submarket, the square footage of street-level retail in our National Landing portfolio will triple in just the next few years.

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Environmental, Social, and Governance

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In October, we received a 5-star rating in the GRESB Assessment for our operating portfolio and development pipeline, ranking second in our sector as a listed U.S. | Diversified Office/Residential company, and ranking first in our sector in the U.S. and Americas under the development assessment. We are proud to have achieved the highest rating available within the 2021 Real Estate Assessment and for being honored as a Global Sector Leader for our operating portfolio and a Global Sector Leader and Overall Regional Sector leader for our development pipeline.

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In September, we achieved carbon neutrality across our operating portfolio. Building on this milestone, we intend to maintain carbon neutral operations at our properties going forward, allowing us to reduce our environmental footprint while also supporting the development of renewable energy technologies that prevent carbon from entering

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the atmosphere. Our planned next step toward long-term sustainability includes the development and execution of an offsite renewable energy strategy, which is expected to replace a significant portion of annual renewable energy credit purchases and bring additional renewables to the national electrical grid.

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In July, we achieved Fitwel Viral Response Certification for all our office REIT assets, building on our entity level certification earlier this year, and became a Fitwel Champion – a status reached by organizations that have committed to integrate health-promoting designs and operations strategies throughout a portfolio.

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Lastly, in August, the Washington Housing Initiative (WHI) Impact Pool provided $9 million in financing to the Washington Housing Conservancy (WHC) and the National Housing Trust (NHT), a non-profit organization engaged in housing preservation, for their acquisition of Hamilton Manor, a 245-unit multifamily building located in Hyattsville, Maryland. With the addition of this asset, the WHI Impact Pool has now financed approximately 1,400 affordable workforce housing units across three jurisdictions, including one with Amazon, all of which are managed by JBG SMITH.

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The late summer surge of the pandemic delayed, but did not alter, our plans and expectations for the future. Recovery in the commercial leasing market and the overall economy is very much tied to certainty and confidence, and ongoing pandemic uncertainty has resulted in what we believe is a short-term plateau along a continued upward trajectory. Even if January or next Spring proves to be the “new September”, we will remain focused on executing our recycling objectives, preparing our rich set of growth opportunities for new investment, and maintaining our strong capital base. We are incredibly energized by the path ahead and our ability to thrive in a post-pandemic environment, and we appreciate your continued trust and confidence.

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Thank you and stay healthy,

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W. Matthew Kelly

Chief Executive Officer

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Section Two – Earnings Release

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Earnings Release

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CONTACT

Barbat Rodgers

Senior Vice President, Investor Relations

(240) 333-3805

brodgers@jbgsmith.com

JBG SMITH ANNOUNCES THIRD QUARTER 2021 RESULTS

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Bethesda, MD (November 2, 2021) - JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended September 30, 2021 and reported its financial results.

Additional information regarding our results of operations, properties and tenants can be found in our Third Quarter 2021 Investor Package and Investor Presentation, which are 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 those documents.

Third Quarter 2021 Highlights

Note: All the above are attributable to common shareholders.

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Operating Portfolio

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Development Portfolio

Under-Construction

Near-Term Development Pipeline

Future Development Pipeline

Third-Party Asset Management and Real Estate Services Business

Balance Sheet

Investing and Financing Activities

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Dividends

About JBG SMITH

JBG SMITH owns, operates, invests in and develops a dynamic portfolio of mixed-use properties in the high growth and high barrier-to-entry submarkets in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Over half of JBG SMITH’s holdings are in the National Landing submarket in Northern Virginia, where it serves as the exclusive developer for Amazon’s new headquarters, and where Virginia Tech’s under-construction $1 billion Innovation Campus is located. JBG SMITH's portfolio currently comprises 17.1 million square feet of high-growth office, multifamily and retail assets at share, 98% of which are metro-served. It also maintains a development pipeline encompassing 16.6 million square feet of mixed-use 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 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. One of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the adverse effect of the current pandemic of the novel coronavirus, or COVID-19, and the ensuing economic turmoil on the Company, our financial condition, results of operations, cash flows, performance, our tenants, the real estate market, and the global economy and financial markets. The extent to which COVID-19 continues to impact us and our tenants depends on future developments, many of which are highly uncertain and cannot be predicted with confidence. These developments include: the continued severity, duration, transmission rate and geographic spread of COVID-19 in the United States, the speed of the vaccine distribution, the effectiveness and willingness of people to take COVID-19 vaccines, the duration of associated immunity and vaccine efficacy against variants of COVID-19, the extent and effectiveness of other containment measures taken, and the response of the overall economy, the financial markets and the population, particularly in areas in which we operate, once the current containment measures are lifted and whether the residential market in the Washington, DC area and any of our properties will be

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materially impacted by the various moratoriums on residential evictions, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. We also note the following forward-looking statements: the impact of COVID-19 and the ensuing economic turmoil on our Company, NOI, SSNOI, net asset value, share price, occupancy rates, revenue from our multifamily and commercial portfolios, operating costs, deferrals of rent, uncollectable operating lease receivables, parking revenue, and burn-off of rent abatement; the impact of disruptions to the credit and capital markets on our ability to access capital, including refinancing maturing debt; changes to the amount and manner in which tenants use space; whether we incur additional costs or make additional concessions or offer other incentives to existing or prospective tenants to reconfigure space; whether the Washington, DC area will be more resilient than other parts of the country in any recession resulting from COVID-19; our annual dividend per share and dividend yield; annualized NOI; whether in the case of our under-construction and near-term development pipeline assets, estimated square feet, estimated number of units and in the case of our future development pipeline assets, estimated potential development density are accurate; expected key Amazon transaction terms and timeframes for closing any Amazon transactions not yet closed; planned infrastructure and educational improvements related to Amazon's additional headquarters and the Virginia Tech Innovation Campus; the economic impact, job growth, expansion of public transportation and related demand for multifamily and commercial properties of Amazon's additional headquarters on the DC area and National Landing and the speed with which such impact occurs and Amazon’s plans for accelerated hiring and in-person work requirements; the impact of our role as the exclusive developer, property manager and retail leasing agent in connection with Amazon's new headquarters; our development plans related to Amazon's additional headquarters; whether any of our tenants succeed in obtaining government assistance under the CARES Act and other programs and use any resulting proceeds to make lease payments owed to us; whether we can access agency debt secured by our currently unencumbered multifamily assets timely, on reasonable terms or at all; whether the acquisition of The Batley will close on time or at all and whether our contemplated like-kind exchange for the sale of Pen Place will occur; 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, including in relation to COVID-19, 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, 2020 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.

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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.

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

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operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps) and certain non-cash expenses (primarily depreciation and amortization 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 expenses, 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 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 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 (net of tax) 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, gains (or losses) on 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, amortization of the management contracts intangible and the mark-to-market of derivative instruments.

FAD represents Core FFO less recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption payments, 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. FAD is presented solely as a

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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 and other non-comparable income and expenses, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions. 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 a segment'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, 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 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

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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 September 30, 2021 multiplied by four. Due to seasonality in the hospitality business, Annualized NOI for Crystal City Marriott represents the trailing 12-month NOI as of September 30, 2021. 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.

"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, which excludes assets for which significant redevelopment, renovation, or repositioning occurred during either of the periods being compared.

Definitions

“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.

"Future Development Pipeline" refers to assets that are development opportunities on which we do not intend to commence construction within the next three years 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.

"GAAP" refers to accounting principles generally accepted in the United States of America.

"In-Service" refers to commercial or multifamily assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of September 30, 2021.

"JBG Legacy Funds" refers to the legacy funds formerly organized by The JBG Companies.

"Near-Term Development Pipeline" refers to select assets that have the potential to commence construction over the next three years, subject to receipt of full entitlements, completion of design and market conditions.

"Second-Generation" is a lease on space that had been vacant for less than nine months.

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"Transaction and Other Costs" include demolition costs, integration and severance costs, pursuit costs related to other completed, potential and pursued transactions, as well as other expenses.

"Under-Construction" refers to assets that were under construction during the three months ended September 30, 2021.

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CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

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Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

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Note: For complete financial statements, please refer to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.

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

(Unaudited)

Note: All EBITDA measures as shown above are attributable to common limited partnership units ("OP Units").

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

(Unaudited)

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See footnotes on page 16.

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

(Unaudited)

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NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)