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Quarterly Investor Package

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JBGS Divider

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Management Letter

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November 1, 2022

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To Our Fellow Shareholders:

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We live for times like these. In normal and predictable environments indexing beats active management every time. This is as true in managing real estate as it is in any other asset class. Volatile and uncertain times are when we earn our keep, and it is precisely in these environments when our team’s experience matters most. Although the capital markets are dramatically less active than they were a mere six months ago, the fundamentals of our business remain strong. Physical office occupancies are consistently rising, apartment rents continue to post solid gains, and our underlying growth and demand drivers remain incredibly strong. Against that backdrop continued rate hikes and higher bank capital requirements have curbed lending and investment sales activity, and we expect this reduced level of activity to continue well into next year. We also know that downturns are ripe with opportunity for the well-prepared and well capitalized investor. Thanks to years of prudent, disciplined, and well-timed capital allocation and strategic decisions, our balance sheet and portfolio are positioned not only to weather the storm and protect against downside, but also to capitalize on these opportunities and deliver long-term NAV growth per share. Highlights of our accomplishments in pursuit of this objective follow:

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We completed $1 billion of dispositions well in advance of our year-end goal and before market conditions deteriorated. At the same time, we continued to capitalize on the disconnect between our share price and NAV, repurchasing 14.2 million shares year-to-date at a weighted average price per share of $25.49.

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We finance our business primarily with non-recourse asset-level financing and maintain a large pool of unencumbered multifamily assets, which serves as a valuable source of potential liquidity. We have a well-staggered debt maturity schedule, with limited near-term office exposure, and we have strategically maintained a pool of unencumbered multifamily assets, with estimated borrowing capacity of at least $500 million, providing a cycle-resistant source of liquidity. Additionally, in July, we successfully refinanced and upsized our Tranche A-2 Term Loan to $400 million at SOFR plus 125 basis points – pricing that would be difficult to achieve today.

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We locked in pricing for 1,583 multifamily units currently under construction in late 2020 and 2021, resulting in construction costs below 2019 levels. We are developing these units at an estimated 6% yield on cost and expect deliveries to commence in 2024. Today’s inflated construction pricing adversely impacts new development; accordingly, we intentionally delayed breaking ground on 410 multifamily units (205 units at share) in Potomac Yard, which we initially planned to commence in 2022. We continue to advance the design and entitlement of our land bank to maximize value and monetization opportunities. We expect our 8.6 million square foot Development Pipeline (excluding non-core assets) to be fully entitled by 2024. When costs normalize, we will be prepared with an extremely attractive portfolio of shovel-ready growth opportunities.

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Our portfolio is concentrated in the recession-resilient Washington, DC metro area. In addition to the region’s strength, most of our assets are located in, or near, National Landing which benefits from four powerful demand catalysts – Amazon HQ2 (mid-2023 expected delivery), Virginia Tech’s Innovation Campus (2024 expected delivery), the Department of Defense, and our digital infrastructure investments – all of which help position our portfolio to withstand a downturn. These catalysts have already started to manifest in robust leasing activity by

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defense and technology-related tenants seeking local tech talent, proximity to the Pentagon, and participation in the tech ecosystem we are building in National Landing.

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Against this backdrop, our core business performed exceptionally well in the third quarter. Same Store NOI increased 11.5% year-over-year. Our multifamily portfolio occupancy increased 140 basis points quarter-over-quarter to 93.7%, with rents increasing 6.7% upon renewal for third quarter lease expirations. And we executed 207,000 square feet of office leases, over 50% of which comprised new leases in National Landing. We provide more detail on our third quarter results below.

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Capital Allocation

While capital markets transaction activity remains muted, we have nevertheless positioned our balance sheet such that we can maintain flexibility and afford to be opportunistic, even in a recessionary environment. We furthered our multifamily growth strategy through three off-market partner buyouts within our multifamily portfolio for approximately $180 million, representing a weighted average stabilized capitalization rate of 4.5% to 5%. These buyouts include (i) the previously announced $55.7 million acquisition of the remaining 36% interest in Atlantic Plumbing; (ii) the $115 million acquisition of the remaining 50% interest in 8001 Woodmont; and (iii) the $9.5 million acquisition of an additional 3.7% interest in The Wren. Through these transactions we increased our multifamily exposure and deferred taxable gains through a like-kind exchange.

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During the third quarter we invested approximately $60 million in projects under construction in National Landing, including 1900 Crystal Drive and 2000/2001 South Bell Street, representing 1,583 new multifamily units being developed to an expected 6% yield on cost. As with all our development projects, we secured guaranteed maximum price contracts on these projects with construction costs below 2019 levels. We had planned to commence construction on 410 multifamily units (205 units at share) in Potomac Yard earlier this year. With costs having increased as much as 20% over the last year, however, today’s inflated construction pricing is not favorable for new development. With over 3,600 units in our Near-Term Development Pipeline, we continue to monitor construction costs and overall market conditions to ensure that we maintain our disciplined capital allocation standards.

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Finally, in the third quarter, we repurchased 2.3 million shares at a weighted average price per share of $23.35, totaling $54.0 million. These repurchases continue our strategy of averaging in throughout a fluctuating trading environment while maintaining a careful watch on liquidity, balance sheet strength, and attractively priced sources of capital for future opportunities.

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Financial and Operating Metrics

For the three months ended September 30, 2022, we reported Core FFO attributable to common shareholders of $41.2 million, or $0.36 per diluted share. Same Store NOI for the quarter increased 11.5% year-over-year to $78.1 million. Our multifamily portfolio ended the quarter at 95.5% leased and 93.7% occupied. Our office portfolio ended the quarter at 88.3% leased and 85.9% occupied. For second generation leases, the rental rate mark-to-market was negative 2.7%. As we have previously mentioned, our mark-to-market will vary from quarter-to-quarter depending on the leases signed.

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As of September 30, 2022, our Net Debt/Total Enterprise Value was 49.3% and our Net Debt/Annualized Adjusted

EBITDA was 7.9x. Net Debt to annualized Adjusted EBITDA would have been 7.7x, and Net Debt/Total Enterprise Value would have been 48.6%, after adjusting for acquisitions and dispositions that occurred during and subsequent to quarter end.

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Our floating rate exposure remains limited, with 85.8% of our debt fixed or hedged after accounting for in-place interest rate swaps and caps. The remaining floating rate exposure is tied to our non-core assets, or assets where the business plan warrants preserving flexibility. In August, we successfully closed a $97.5 million loan on WestEnd25 – a multifamily asset located in Washington, DC. The loan carries an interest rate of SOFR plus 145 basis points and matures in 2029. Additionally, as mentioned in our last letter, in July we upsized our Tranche A-2 Term Loan to $400 million, extending the maturity by 3.5 years, with no material change in our spread at SOFR plus 125 basis points.

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Our balance sheet remains strong, with $1.9 billion of liquidity from cash, capacity under our credit facility, and estimated unencumbered multifamily borrowing capacity. We are well-positioned with respect to our debt maturities in the near-to-medium term. In addition to limited near-term office exposure, we have strategically maintained a pool of unencumbered multifamily assets with estimated borrowing capacity of at least $500 million, affording us the flexibility to access capital for opportunistic investments, despite market cyclicality.

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Operating Portfolio

Multifamily Trends

Fundamentals across our multifamily portfolio improved throughout the third quarter. Our portfolio ended the quarter at 93.7% occupied, up 140 basis points quarter-over-quarter. Excluding 8001 Woodmont which remains in lease-up, our portfolio ended the quarter at 94.1% occupied. Strong market and portfolio rent growth has left us with in-place rents 8.4% below asking rents, supporting an embedded growth opportunity. Despite rising rents, we generated more applications this quarter than the same period in the prior year even with fewer available units, further affirming the unwavering flight to strategically located, high-quality assets like ours. Additionally, for third quarter lease expirations, we increased rents by 6.7% upon renewal while achieving a 57% renewal rate across our portfolio.

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

Market asking rents ended the third quarter up 5.8% year-over-year. As a result of this robust growth, trade-outs will likely remain strong across the market as the remainder of COVID-era low lease rates expire. Occupancy remained strong in the region at 95%, signaling continued robust demand for apartment product. While concessions have not burned off entirely, they have materially decreased since pandemic-era peaks.

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New starts increased in the third quarter, with over 3,000 units getting underway in our submarkets. We believe these new starts are attributable to a lag between securing financing and locking in construction pricing, meaning projects getting underway in the third quarter were generally not impacted by present spikes in interest rates or double-digit construction price increases. While we forecast a healthy delivery average of 8,000 units per year over the next three years, new starts should begin to materially decline as the impact of rates and pricing are realized.

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Office Trends

Our office portfolio ended the third quarter at 88.3% leased and 85.9% occupied. Momentum continued with 207,000 square feet leased, approximately 57% of which represented new leasing with a weighted average lease term of 10.7 years. National Landing led our new leasing success, headlined by several sizable new leases with terms exceeding 10 years. This activity includes Federated Wireless, a private wireless networking company, relocating its corporate headquarters to the submarket with a 36,000 square foot lease, and HII, a technology defense contractor, leasing approximately 37,000 square feet. These new tenants to our National Landing portfolio speak to the importance of demand drivers like digital infrastructure and Pentagon proximity. Other defense contractors (including users with secure space requirements) interested in establishing a presence near the

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Pentagon amidst a historically high defense budget, as well as other technology-oriented tenants seeking digital capabilities that are currently being rolled out in the submarket drove additional new leasing in the submarket.

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With respect to renewal activity across our National Landing office portfolio, tenants who renewed over the last 12 months maintained approximately 90% of their expiring square footage – a testament to the importance of in-person work by our office tenants. As we have mentioned in the past, in today’s hybrid work environment, we believe peak occupancy, which generally occurs on Tuesday, Wednesday, and Thursday, is one of the best barometers in gauging true utilization of office space. Recent Kastle data reported daily physical occupancy in our National Landing portfolio continuing to increase over the last several months, with the most recent data in October showing peak days averaging over 65%, more than double the lows of January.

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Market-Wide (DC Metro) Office Trends (based on JLL, CoStar and Kastle Systems Q3 2022 reporting)

Third quarter net absorption market-wide remained flat with nearly 893,000 square feet of space (0.3% of inventory) given back year-to-date, driving the total vacancy rate to 20.7%. Of note, physical occupancy grew to 44.3% market-wide. The limited absorption and growing physical occupancy may represent at least a modest recovery in the office sector, but the recovery is far from evenly distributed across submarkets and asset classes.

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Downtown DC absorption, like the market at large, was essentially flat. This market-level data point, however, masks tenant moves to mixed-use, amenity rich neighborhoods, like Southwest (DC Wharf), Dupont-Logan-Shaw, and Ballpark neighborhoods, with corresponding losses in the traditional CBD which continues to bleed tenancy. This movement signals not just a flight-to-quality but also a flight-to-amenities – all with corresponding rent savings. The fact that quality matters is evidenced by the fact that nearly all the move-outs in DC are occurring in Class B buildings which face an uncertain future as their largely association and non-profit tenant bases appear among the least likely to return to offices, the buildings require significant capital to modernize, and high construction costs and rates may put a damper on residential conversions.

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Northern Virginia was also flat from a total net absorption perspective, but the vacancy rate across the board remains relatively high at over 22%, inclusive of sublease availability. As is the case with DC, one of the main market themes is rightsizing with a significant flight-to-quality. Despite seemingly positive signs from a physical occupancy perspective, the level of large leasing activity is declining significantly, suggesting that tenants are rightsizing their footprints or postponing large lease decisions. Retention rates among deals over 10,000 SF have shrunk from a peak of 78% in Q2 2021 to 52% today, highlighting that the decline in activity is driven by a lack of growth, not renewal levels. Even with the prospect of an overall pool of demand shrinking, JLL and CBRE note that the majority of leasing that occurred through the year has come from the technology sector, with much of what is categorized as technology likely being defense and government contracting-related. We believe this trend disproportionately benefits National Landing given the unique demand drivers in the submarket.

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Environmental, Social, and Governance

In October, we received a 5-star rating in the GRESB Assessment for our operating portfolio and development pipeline, ranking first in our sector as a U.S. | Diversified Office/Residential company and first in our sector in the U.S. and Americas under the development assessment. We are proud to have achieved the highest available rating within the 2022 Real Estate Assessment and for being honored as a Global Sector Leader for our operating portfolio and a Global Sector Leader and Regional Sector Leader for our development pipeline. Our GRESB Public Disclosure Report Level for 2022 is an “A” and ranked first in the comparison group of U.S. Office.

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The business units across our organization continue to prepare for new SEC regulations surrounding Annual Report/10-K filings, looking to formulate clear, repeatable processes that can be audited at the same level as our financial statements. Getting ahead of this regulatory change ensures optimal reporting and industry leading ESG transparency with our shareholders. These efforts are spearheaded by our ESG Committee, a cross-functional group that supports JBG SMITH’s ongoing commitment to improving our environmental impact, health, and safety protocols, corporate social responsibility, human capital uses, corporate governance, and other public policy matters relevant to ESG.

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In August, we released our second annual Diversity & Inclusion report highlighting some notable accomplishments including increasing diversity in our new employee talent pool by more than 50%, implementing more equitable practices across the organization, and building a more inclusive culture. You can access this report by visiting our website at https://www.jbgsmith.com/about/diversity-inclusion.

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When capital markets are constrained, liquidity and balance sheet strength matter most. We owe the strength of our position to the strategic decisions we made over the past several years, both before and during the worst of the pandemic. When recession looms large, the historic resilience of the Washington, DC market and the fundamentals of our unique demand drivers offer shelter from the storm. The majority of our portfolio benefits directly from the strength of the expanding defense technology sector and the Amazon and Virginia Tech anchored National Landing innovation district. Its urban-suburban location and the dramatic repositioning (now almost complete) of its amenity offering has enabled us to capture a disproportionate share of market demand. This is a trend that we believe will continue even in the face of a potential recession and that will strengthen as residents and tenants alike increasingly demand best-in-class environments in which to live, work, and recreate.

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Downturns always present unique challenges, but they are also when the best investment opportunities present themselves, whether they be in the form of lower asset acquisition prices, lower construction costs or more attractive share repurchases. We approach this landscape vigilant in maintaining our strong balance sheet and mindful that things often get worse before they get better. This approach demands discipline, patience, and a belief that prudent averaging in throughout the lows of the cycle will be where some of our best capital allocation decisions are made.

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Thank you for your continued trust and confidence.

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Sincerely,

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W. Matthew Kelly

Chief Executive Officer

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JBG SMITH Overview

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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68% of our holdings are located directly across the Potomac River from Washington, DC in Northern Virginia’s National Landing submarket, where Amazon’s new headquarters and Virginia Tech’s $1 billion Innovation Campus are under construction.

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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 provided in November 2018, would increase the daytime population in the submarket from approximately 50,000 people to nearly 90,000 people in the future, representing dramatic growth of nearly 80%. Additionally, in late 2021, Amazon announced its hybrid return-to-the-office policy, requiring employees to live locally and within commuting distance of the office for at least 11 months of the year.

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At its Seattle headquarters, approximately 20% of Amazon’s employees live within walking or biking distance to work, and Amazon provides $350 monthly stipends to 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 1,583 units currently under construction in National Landing, our Near-Term Development Pipeline could add as many as 2,150 new multifamily units to National Landing.

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While we control most of the existing office supply and 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, national/international defense and security needs, and our National Landing digital infrastructure initiatives, including our 5G rollout and other connectivity enhancements with best-in-class partners, will drive substantial long-term net asset value 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 through development, opportunistic land sales, ground leases, and/or recapitalizations with private investors.

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As of the end of the third quarter, we had two multifamily developments under construction in National Landing –1900 Crystal Drive (808 units) and 2000/2001 South Bell Street (775 units). Since our formation in 2017, we have successfully delivered 2.8 million square feet of mixed-use development, with estimated stabilized yields 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 100% of our Development Pipeline, over 70% of which is in National Landing. Our 8.6 million square foot Development Pipeline (excluding non-core assets), 84% of

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which is multifamily, includes both a 3.5 million square foot Near-Term Development Pipeline and a 5.1 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 0.5 million square feet and are actively advancing design and entitlement on an additional 4.6 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 parties.

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

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Our capital allocation strategy is grounded in our primary goal of maximizing long-term net asset value per share. This strategy entails two key elements: repositioning our portfolio to concentrate our office in National Landing; and transitioning to a majority multifamily portfolio that continues to expand in high-growth, amenity-rich DC metro submarkets through acquisitions and development. Opportunistic dispositions of income-producing office assets outside of National Landing, as well as the sale, ground lease, or joint venture of non-core land holdings, serve as important sources of NAV-priced capital to fund our strategy. Allocating capital away from non-core office and land uses allows us to invest in higher growth opportunities, including multifamily acquisitions and development, and to return capital through share repurchases, especially when our shares trade at a material discount to NAV.

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Since our formation, we have sold $2.7 billion of non-core assets and invested $546 million into multifamily acquisitions, $889 million into the development of multifamily assets, and committed an additional $468 million to multifamily assets currently under construction.

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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 2022 RESULTS

Bethesda, MD (November 1, 2022) - 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, 2022 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our Third Quarter 2022 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 2022 Highlights

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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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Subsequent to September 30, 2022:

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 developer for Amazon's new headquarters, and where Virginia Tech's $1 billion Innovation Campus is under construction. JBG SMITH's portfolio currently comprises 15.6 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 9.8 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

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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. 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, 2021 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, uncollectible 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; whether we will recognize currently estimated unrecognized development fee revenue on the anticipated timing or at all; our annual dividend per share and dividend yield; 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 timing, completion, modifications and delivery dates for the projects we are developing for Amazon; 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 developer, property manager and retail leasing agent in connection with Amazon's new headquarters; our development plans related to National Landing; our ability to satisfy environmental, social or governance standards set by various constituencies; and whether we can access agency debt secured by our currently unencumbered multifamily assets timely, on reasonable terms or at all; whether our estimated borrowing capacity is accurate; 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, 2021 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

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attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

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

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

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

Occupancy, non-GAAP financial measures, leverage metrics, operating assets and operating metrics presented in our investor package exclude our 10.0% subordinated interest in one commercial building and our 33.5% subordinated interest in four commercial buildings, as well as the associated non-recourse mortgages payable, 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.

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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 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, income from investments, business interruption insurance 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 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

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investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

Core FFO represents FFO adjusted to exclude items which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of right-of-use assets associated with leases in which we are a lessee, gains (or losses) 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, 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 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, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

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

"Net Debt" is a non-GAAP financial measurement. Net Debt represents our total consolidated and unconsolidated indebtedness less cash and cash equivalents at our share. Net Debt is an important component in the calculations of Net Debt to Annualized Adjusted EBITDA and Net Debt / total enterprise value. We believe that Net Debt is a meaningful non-GAAP financial measure useful to investors because we review Net Debt as part of the management of our overall financial flexibility, capital structure and leverage. We may utilize a considerable portion of our cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents at our share may not be solely controlled by us. The deduction of cash and cash equivalents at our share from consolidated and unconsolidated indebtedness in the calculation of Net Debt, therefore, should not be understood to mean that it is available exclusively for debt reduction at any given time.

Net Operating Income ("NOI") and "Annualized NOI" are non-GAAP financial measures management uses to assess 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 for operating leases, if applicable. NOI also excludes deferred rent, related party management fees, interest expense, and certain

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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 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, 2022 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, 2022. 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 the Near-Term Development and Future Development Pipelines.

"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 September 30, 2022. 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.

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"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).

"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, 2022.

"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.

"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.

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

"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, 2022.

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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, 2022.

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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, 2022.

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

(Unaudited)

Note: All EBITDA measures as shown above are attributable to common limited partnership units ("OP Units") and certain fully-vested incentive equity awards that are convertible into OP Units.

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

(Unaudited)

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See footnotes on page 16.

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

(Unaudited)

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NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)