JBG SMITH Properties 10-Q

ITEM 1. Financial Statements JBG SMITH PROPERTIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except par value amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 December 31, 2024 ASSETS ​ ​ Real estate, at cost: ​ ​ Land and improvements ​ $ 1,026,236 ​ $ 1,109,172 Buildings and improvements ​ 4,035,802 ​ 4,083,937 Construction in progress, including land ​ 170,333 ​ 338,333 ​ ​ 5,232,371 ​ 5,531,442 Less: accumulated depreciation ​ ( 1,449,973 ) ​ ( 1,419,983 ) Real estate, net ​ 3,782,398 ​ 4,111,459 Cash and cash equivalents ​ 64,437 ​ 145,804 Restricted cash ​ 23,342 ​ 37,388 Tenant and other receivables ​ 23,797 ​ 23,478 Deferred rent receivable ​ 179,853 ​ 170,153 Investments in unconsolidated real estate ventures ​ 91,539 ​ 93,654 Deferred leasing costs, net ​ ​ 68,367 ​ ​ 69,821 Intangible assets, net ​ ​ 51,988 ​ ​ 47,000 Other assets, net ​ 131,382 ​ 131,318 Assets held for sale ​ — ​ 190,465 TOTAL ASSETS ​ $ 4,417,103 ​ $ 5,020,540 ​ ​ ​ ​ ​ ​ ​ LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY ​ Liabilities: ​ ​ Mortgage loans, net ​ $ 1,577,796 ​ $ 1,767,173 Revolving credit facility ​ 160,000 ​ 85,000 Term loans, net ​ 718,450 ​ 717,853 Accounts payable and accrued expenses ​ 79,385 ​ 101,096 Other liabilities, net ​ 124,691 ​ 115,827 Liabilities related to assets held for sale ​ — ​ 901 Total liabilities ​ 2,660,322 ​ 2,787,850 Commitments and contingencies ​ ​ Redeemable noncontrolling interests ​ 566,200 ​ 423,632 Shareholders' equity: ​ ​ Preferred shares, $ 0.01 par value - 200,000 shares authorized; none issued ​ — ​ — Common shares, $ 0.01 par value - 500,000 shares authorized; 59,302 and 84,500 shares issued and outstanding as of September 30, 2025 and December 31, 2024 ​ 594 ​ 846 Additional paid-in capital ​ 2,305,136 ​ 2,790,403 Accumulated deficit ​ ( 1,114,062 ) ​ ( 997,283 ) Accumulated other comprehensive income (loss) ​ ( 1,087 ) ​ 15,092 Total equity ​ 1,190,581 ​ 1,809,058 TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY ​ $ 4,417,103 ​ $ 5,020,540 ​ See accompanying notes to the condensed consolidated financial statements (unaudited). ​ 3 Table of Contents JBG SMITH PROPERTIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 2025 2024 REVENUE ​ ​ ​ ​ ​ Property rental ​ $ 103,981 ​ $ 113,349 ​ $ 311,989 ​ $ 348,521 Third-party real estate services, including reimbursements ​ 14,711 ​ 17,061 ​ 44,430 ​ 52,326 Other revenue ​ 5,178 ​ 5,616 ​ 14,616 ​ 15,683 Total revenue ​ 123,870 ​ 136,026 ​ 371,035 ​ 416,530 EXPENSES ​ ​ ​ ​ ​ Depreciation and amortization ​ 48,164 ​ 50,050 ​ 143,311 ​ 158,211 Property operating ​ 36,564 ​ 39,258 ​ 104,876 ​ 110,791 Real estate taxes ​ 12,284 ​ 11,812 ​ 37,107 ​ 40,006 General and administrative: ​ ​ ​ ​ ​ ​ Corporate and other ​ 13,214 ​ 11,881 ​ 45,491 ​ 43,855 Third-party real estate services ​ 14,058 ​ 16,088 ​ 43,691 ​ 57,065 Transaction and other costs ​ 494 ​ 667 ​ 5,251 ​ 3,005 Total expenses ​ 124,778 ​ 129,756 ​ 379,727 ​ 412,933 OTHER INCOME (EXPENSE) ​ ​ ​ ​ Income (loss) from unconsolidated real estate ventures, net ​ ( 664 ) ​ ( 745 ) ​ ( 165 ) ​ 4 Interest and other income, net ​ 2,378 ​ 4,573 ​ 3,601 ​ 10,105 Interest expense ​ ( 34,781 ) ​ ( 35,267 ) ​ ( 105,552 ) ​ ( 97,400 ) Gain (loss) on the sale of real estate, net ​ 4,660 ​ ( 5,352 ) ​ 47,029 ​ ( 5,066 ) Gain (loss) on the extinguishment of debt, net ​ — ​ 43 ​ ( 2,402 ) ​ 43 Impairment loss ​ ​ ( 4,771 ) ​ ​ — ​ ​ ( 45,067 ) ​ ​ ( 18,236 ) Total other income (expense) ​ ( 33,178 ) ​ ( 36,748 ) ​ ( 102,556 ) ​ ( 110,550 ) LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT ​ ( 34,086 ) ​ ​ ( 30,478 ) ​ ( 111,248 ) ​ ( 106,953 ) Income tax (expense) benefit ​ ( 926 ) ​ ( 831 ) ​ ( 643 ) ​ 40 NET LOSS ​ ( 35,012 ) ​ ( 31,309 ) ​ ( 111,891 ) ​ ( 106,913 ) Net loss attributable to redeemable noncontrolling interests ​ 6,457 ​ 4,365 ​ 18,375 ​ 12,353 Net (income) loss attributable to noncontrolling interests ​ — ​ ( 36 ) ​ — ​ 10,931 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS ​ $ ( 28,555 ) ​ $ ( 26,980 ) ​ $ ( 93,516 ) ​ $ ( 83,629 ) LOSS PER COMMON SHARE - BASIC AND DILUTED ​ $ ( 0.48 ) ​ $ ( 0.32 ) ​ $ ( 1.35 ) ​ $ ( 0.95 ) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED ​ 60,606 ​ 85,292 ​ 70,062 ​ 89,637 ​ See accompanying notes to the condensed consolidated financial statements (unaudited). ​ 4 Table of Contents JBG SMITH PROPERTIES Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 2025 2024 NET LOSS ​ $ ( 35,012 ) ​ $ ( 31,309 ) ​ $ ( 111,891 ) ​ $ ( 106,913 ) OTHER COMPREHENSIVE LOSS ​ ​ ​ ​ Change in fair value of derivative financial instruments ​ 980 ​ ( 27,624 ) ​ ( 11,632 ) ​ 5,236 Reclassification of net income on derivative financial instruments from accumulated other comprehensive income (loss) into interest expense ​ ( 1,844 ) ​ ( 8,629 ) ​ ( 8,174 ) ​ ( 29,521 ) Total other comprehensive loss ​ ( 864 ) ​ ( 36,253 ) ​ ( 19,806 ) ​ ( 24,285 ) COMPREHENSIVE LOSS ​ ( 35,876 ) ​ ( 67,562 ) ​ ( 131,697 ) ​ ( 131,198 ) Net loss attributable to redeemable noncontrolling interests ​ 6,457 ​ 4,365 ​ 18,375 ​ 12,353 Net (income) loss attributable to noncontrolling interests ​ ​ — ​ ​ ( 36 ) ​ ​ — ​ ​ 10,931 Other comprehensive loss attributable to redeemable noncontrolling interests ​ 181 ​ 5,595 ​ 3,627 ​ 4,003 Other comprehensive (income) loss attributable to noncontrolling interests ​ ​ — ​ ​ 1,351 ​ ​ — ​ ​ ( 237 ) COMPREHENSIVE LOSS ATTRIBUTABLE TO JBG SMITH PROPERTIES ​ $ ( 29,238 ) ​ $ ( 56,287 ) ​ $ ( 109,695 ) ​ $ ( 104,148 ) ​ See accompanying notes to the condensed consolidated financial statements (unaudited). ​ 5 Table of Contents JBG SMITH PROPERTIES Condensed Consolidated Statements of Equity (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ ​ Common Shares ​ Paid-In ​ Accumulated Comprehensive ​ Noncontrolling ​ Total ​ ​ Shares ​ Amount ​ Capital ​ Deficit Income (Loss) ​ Interests ​ Equity BALANCE AS OF JUNE 30, 2025 61,945 ​ $ 620 ​ $ 2,397,255 ​ $ ( 1,074,678 ) ​ $ ( 404 ) ​ $ — ​ $ 1,322,793 Net loss attributable to common shareholders — ​ — ​ — ​ ( 28,555 ) ​ — ​ — ​ ( 28,555 ) Redemption of common limited partnership units ("OP Units") for common shares 458 ​ 5 ​ 9,291 ​ — ​ — ​ — ​ 9,296 Common shares repurchased ​ ( 3,112 ) ​ ​ ( 31 ) ​ ​ ( 62,905 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 62,936 ) Common shares issued pursuant to employee incentive compensation plan and Employee Share Purchase Plan ("ESPP") ​ 11 ​ ​ — ​ ​ 392 ​ ​ — ​ ​ — ​ ​ — ​ ​ 392 Dividends declared on common shares ( $ 0.175 per common share) ​ — ​ ​ — ​ ​ — ​ ​ ( 10,829 ) ​ ​ — ​ ​ — ​ ​ ( 10,829 ) Redeemable noncontrolling interests redemption value adjustment and total other comprehensive loss allocation — ​ — ​ ( 38,897 ) ​ — ​ 181 ​ — ​ ( 38,716 ) Total other comprehensive loss — ​ — ​ — ​ — ​ ( 864 ) ​ — ​ ( 864 ) BALANCE AS OF SEPTEMBER 30, 2025 59,302 ​ $ 594 ​ $ 2,305,136 ​ $ ( 1,114,062 ) ​ $ ( 1,087 ) ​ $ — ​ $ 1,190,581 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ BALANCE AS OF JUNE 30, 2024 87,306 ​ $ 874 ​ $ 2,855,724 ​ $ ( 865,782 ) ​ $ 28,830 ​ $ 14,936 ​ $ 2,034,582 Net income (loss) attributable to common shareholders and noncontrolling interests — ​ — ​ — ​ ( 26,980 ) ​ — ​ 36 ​ ( 26,944 ) Redemption of OP Units for common shares 202 ​ 2 ​ 3,551 ​ — ​ — ​ — ​ 3,553 Common shares repurchased ​ ( 3,090 ) ​ ​ ( 31 ) ​ ​ ( 50,182 ) ​ ​ — ​ — ​ — ​ ​ ( 50,213 ) Common shares issued pursuant to employee incentive compensation plan and ESPP ​ 16 ​ ​ — ​ ​ 589 ​ ​ — ​ ​ — ​ ​ — ​ ​ 589 Dividends declared on common shares ($ 0.175 per common share) ​ — ​ ​ — ​ ​ — ​ ​ ( 15,015 ) ​ ​ — ​ ​ — ​ ​ ( 15,015 ) Distributions to noncontrolling interests, net — ​ — ​ — ​ — ​ — ​ ( 7 ) ​ ( 7 ) Redeemable noncontrolling interests redemption value adjustment and total other comprehensive loss allocation — ​ — ​ ( 20,235 ) ​ — ​ 5,595 ​ — ​ ( 14,640 ) Total other comprehensive loss — ​ — ​ — ​ — ​ ( 36,253 ) ​ — ​ ( 36,253 ) Other comprehensive loss attributable to noncontrolling interests ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,351 ​ ​ ( 1,351 ) ​ ​ — BALANCE AS OF SEPTEMBER 30, 2024 84,434 ​ $ 845 ​ $ 2,789,447 ​ $ ( 907,777 ) ​ $ ( 477 ) ​ $ 13,614 ​ $ 1,895,652 ​ See accompanying notes to the condensed consolidated financial statements (unaudited). ​ ​ 6 Table of Contents JBG SMITH PROPERTIES Condensed Consolidated Statements of Equity (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ ​ ​ ​ ​ ​ ​ Common Shares ​ Paid-In ​ Accumulated Comprehensive ​ Noncontrolling ​ Total ​ ​ Shares ​ Amount ​ Capital ​ Deficit Income (Loss) ​ Interests ​ Equity BALANCE AS OF DECEMBER 31, 2024 84,500 ​ $ 846 ​ $ 2,790,403 ​ $ ( 997,283 ) ​ $ 15,092 ​ $ — ​ $ 1,809,058 Net loss attributable to common shareholders — ​ — ​ — ​ ( 93,516 ) ​ — ​ — ​ ( 93,516 ) Redemption of OP Units for common shares 1,170 ​ 13 ​ 20,137 ​ — ​ — ​ — ​ 20,150 Common shares repurchased ​ ( 26,441 ) ​ ​ ( 265 ) ​ ​ ( 435,519 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 435,784 ) Common shares issued pursuant to employee incentive compensation plan and ESPP ​ 73 ​ ​ — ​ ​ 1,636 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,636 Dividends declared on common shares ( $ 0.35 per common share) ​ — ​ ​ — ​ ​ — ​ ​ ( 23,263 ) ​ ​ — ​ ​ — ​ ​ ( 23,263 ) Redeemable noncontrolling interests redemption value adjustment and total other comprehensive loss allocation — ​ — ​ ( 71,521 ) ​ — ​ 3,627 ​ — ​ ( 67,894 ) Total other comprehensive loss — ​ — ​ — ​ — ​ ( 19,806 ) ​ — ​ ( 19,806 ) BALANCE AS OF SEPTEMBER 30, 2025 59,302 ​ $ 594 ​ $ 2,305,136 ​ $ ( 1,114,062 ) ​ $ ( 1,087 ) ​ $ — ​ $ 1,190,581 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ BALANCE AS OF DECEMBER 31, 2023 94,309 ​ $ 944 ​ $ 2,978,852 ​ $ ( 776,962 ) ​ $ 20,042 ​ $ 28,973 ​ $ 2,251,849 Net loss attributable to common shareholders and noncontrolling interests — ​ — ​ — ​ ( 83,629 ) ​ — ​ ( 10,931 ) ​ ( 94,560 ) Redemption of OP Units for common shares 827 ​ 9 ​ 13,760 ​ — ​ — ​ — ​ 13,769 Common shares repurchased ​ ( 10,776 ) ​ ​ ( 108 ) ​ ​ ( 168,263 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 168,371 ) Common shares issued pursuant to employee incentive compensation plan and ESPP ​ 74 ​ ​ — ​ ​ 1,915 ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,915 Dividends declared on common shares ( $ 0.525 per common share) ​ — ​ ​ — ​ ​ — ​ ​ ( 47,186 ) ​ ​ — ​ ​ — ​ ​ ( 47,186 ) Acquisition of noncontrolling interests ​ — ​ ​ — ​ ​ ( 21,893 ) ​ ​ — ​ ​ — ​ ​ ( 4,693 ) ​ ​ ( 26,586 ) Contributions from noncontrolling interests, net — ​ — ​ — ​ — ​ — ​ 28 ​ 28 Redeemable noncontrolling interests redemption value adjustment and total other comprehensive loss allocation — ​ — ​ ( 14,924 ) ​ — ​ 4,003 ​ — ​ ( 10,921 ) Total other comprehensive loss — ​ — ​ — ​ — ​ ( 24,285 ) ​ — ​ ( 24,285 ) Other comprehensive income attributable to noncontrolling interests ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 237 ) ​ ​ 237 ​ ​ — BALANCE AS OF SEPTEMBER 30, 2024 84,434 ​ $ 845 ​ $ 2,789,447 ​ $ ( 907,777 ) ​ $ ( 477 ) ​ $ 13,614 ​ $ 1,895,652 ​ See accompanying notes to the condensed consolidated financial statements (unaudited). ​ 7 Table of Contents JBG SMITH PROPERTIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2025 2024 OPERATING ACTIVITIES ​ ​ Net loss ​ $ ( 111,891 ) ​ $ ( 106,913 ) Adjustments to reconcile net loss to net cash provided by operating activities: ​ ​ Share-based compensation expense ​ 19,854 ​ 26,158 Depreciation and amortization expense, including amortization of deferred financing costs ​ 148,834 ​ 163,190 Deferred rent ​ ( 9,653 ) ​ ( 14,140 ) (Income) loss from unconsolidated real estate ventures, net ​ 165 ​ ( 4 ) Amortization of market lease intangibles, net ​ 49 ​ 175 Amortization of lease incentives ​ 10,458 ​ 4,197 (Gain) loss on the extinguishment of debt, net ​ 5,053 ​ ( 43 ) Impairment loss ​ ​ 45,067 ​ ​ 18,236 (Gain) loss on the sale of real estate, net ​ ( 47,029 ) ​ 5,066 Loss on operating lease and other receivables ​ 1,096 ​ 2,053 Income from investments, net ​ ​ ( 1,600 ) ​ ​ ( 3,278 ) Return on capital from unconsolidated real estate ventures ​ 1,331 ​ 1,680 Other non-cash items ​ 3,446 ​ 4,626 Changes in operating assets and liabilities: ​ ​ ​ Tenant and other receivables ​ ( 1,415 ) ​ 11,466 Other assets, net ​ ( 13,328 ) ​ ( 13,337 ) Accounts payable and accrued expenses ​ ( 9,520 ) ​ ( 9,446 ) Other liabilities, net ​ ( 292 ) ​ ( 2,496 ) Net cash provided by operating activities ​ 40,625 ​ 87,190 INVESTING ACTIVITIES ​ ​ Development costs, construction in progress and real estate additions ​ ( 92,168 ) ​ ( 172,051 ) Acquisition of real estate ​ ( 40,267 ) ​ — Proceeds from the sale of real estate ​ 537,641 ​ 97,010 Proceeds from derivative financial instruments ​ ​ 7,376 ​ ​ 5,073 Payments on derivative financial instruments ​ ​ ( 12,960 ) ​ ​ ( 6,468 ) Distributions of capital from unconsolidated real estate ventures and other investments ​ 2,276 ​ 163,880 Investments in unconsolidated real estate ventures and other investments ​ ( 4,776 ) ​ ( 5,027 ) Net cash provided by investing activities ​ 397,122 ​ 82,417 FINANCING ACTIVITIES ​ ​ Borrowings under mortgage loans ​ 281,381 ​ 112,612 Borrowings under revolving credit facility ​ 766,000 ​ 223,000 Repayments of mortgage loans ​ ( 506,501 ) ​ ( 85,662 ) Repayments of revolving credit facility ​ ( 691,000 ) ​ ( 195,000 ) Proceeds from derivative financial instruments ​ ​ 7,835 ​ ​ — Payments on derivative financial instruments ​ ​ ( 3,209 ) ​ ​ ( 4,422 ) Debt issuance and modification costs ​ ( 5,207 ) ​ ( 359 ) Acquisition of noncontrolling interests ​ — ​ ( 26,569 ) Proceeds from common shares issued pursuant to ESPP ​ 653 ​ 792 Common shares repurchased ​ ​ ( 435,784 ) ​ ​ ( 168,371 ) Dividends paid to common shareholders ​ ( 38,050 ) ​ ( 47,186 ) Distributions to redeemable noncontrolling interests ​ ​ ( 9,278 ) ​ ​ ( 8,714 ) Proceeds from the sale of interest in consolidated real estate venture ​ 100,000 ​ — Distributions to noncontrolling interests ​ ​ — ​ ​ ( 25 ) Net cash used in financing activities ​ ( 533,160 ) ​ ( 199,904 ) ​ 8 Table of Contents JBG SMITH PROPERTIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2025 2024 Net decrease in cash and cash equivalents, and restricted cash ​ $ ( 95,413 ) ​ $ ( 30,297 ) Cash and cash equivalents, and restricted cash, beginning of period ​ 183,192 ​ 200,441 Cash and cash equivalents, and restricted cash, end of period ​ $ 87,779 ​ $ 170,144 ​ ​ ​ ​ ​ ​ ​ CASH AND CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD ​ Cash and cash equivalents ​ $ 64,437 ​ $ 136,983 Restricted cash ​ 23,342 ​ 33,161 Cash and cash equivalents, and restricted cash ​ $ 87,779 ​ $ 170,144 ​ ​ ​ ​ ​ ​ ​ SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON-CASH INFORMATION ​ Cash paid for interest (net of capitalized interest of $ 4,379 and $ 8,477 in 2025 and 2024) ​ $ 95,197 ​ $ 84,195 Accrued capital expenditures included in accounts payable and accrued expenses ​ 35,238 ​ 46,182 Write-off of fully depreciated assets ​ 27,968 ​ 28,617 Redemption of OP Units for common shares ​ 20,150 ​ 13,769 Redeemable noncontrolling interests redemption value adjustment ​ ​ 71,521 ​ ​ 14,924 Derecognition of operating lease right-of-use asset ​ ​ — ​ ​ 13,724 Derecognition of liabilities related to operating lease right-of-use asset ​ ​ — ​ ​ 13,724 Cash paid for amounts included in the measurement of lease liabilities for operating leases ​ 5,027 ​ 7,980 ​ ​ See accompanying notes to the condensed consolidated financial statements (unaudited). ​ 9 Table of Contents ​ ​ JBG SMITH PROPERTIES Notes to Condensed Consolidated Financial Statements (Unaudited) 1. Organization and Basis of Presentation Organization JBG SMITH Properties ("JBG SMITH"), a Maryland real estate investment trust, owns, operates and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, D.C., most notably National Landing, that we believe have long-term growth potential and appeal to residential, office and retail tenants. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, highly amenitized, walkable neighborhoods throughout the Washington, D.C. metropolitan area. Approximately 75.0 % of our holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon.com, Inc.'s headquarters; Virginia Tech's $ 1 billion Innovation Campus; proximity to the Pentagon; and our placemaking initiatives and public infrastructure improvements. In addition, our third-party real estate services business provides fee-based real estate services. Substantially all our assets are held by, and our operations are conducted through JBG SMITH Properties LP ("JBG SMITH LP"), our operating partnership. As of September 30, 2025, JBG SMITH, as its sole general partner, controlled JBG SMITH LP and owned 81.3 % of its OP Units, after giving effect to the conversion of certain vested long-term incentive partnership units ("LTIP Units") that are convertible into OP Units. JBG SMITH is referred to herein as "we," "us," "our" or other similar terms. References to "our share" refer to our ownership percentage of consolidated and unconsolidated assets in real estate ventures, but exclude our 10.0 % subordinated interest in one commercial building and our 33.5 % subordinated interest in four commercial buildings (the "Fortress Assets"), as well as the associated non-recourse mortgage loans, held through unconsolidated real estate ventures; these interests and debt are excluded because 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. As of September 30, 2025, our Operating Portfolio consisted of 37 operating assets comprising 14 multifamily assets totaling 6,164 units ( 5,978 units at our share), 21 commercial assets totaling 7.0 million square feet ( 6.7 million square feet at our share) and two wholly owned land assets for which we are the ground lessor. Additionally, we have one under-construction multifamily asset with 355 units ( 355 units at our share) and 19 assets in the development pipeline totaling 10.7 million square feet ( 8.7 million square feet at our share) of estimated potential development density. We derive our revenue primarily from leases with multifamily and commercial tenants. Revenue under our multifamily leases is generally due on a monthly basis with terms of approximately one year or less, and may include income from utility recoveries, parking and other miscellaneous items. Our commercial leases include fixed and percentage rents, and reimbursements from tenants for certain expenses such as real estate taxes, property operating expenses, and repairs and maintenance. In addition, our third-party real estate services business provides fee-based real estate services. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not contain certain information required in annual financial statements and notes as required under GAAP. In our opinion, all adjustments considered necessary for a fair presentation have been included, and all such adjustments are of a normal recurring nature. All intercompany transactions and balances have been eliminated. The results of operations for the three and nine months ended September 30, 2025 and 2024 are not necessarily indicative of the results that may be expected for a full year. These condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ("SEC") on February 18, 2025 ("Annual Report"). 10 Table of Contents The accompanying condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries and consolidated variable interest entities ("VIEs"), including JBG SMITH LP. See Note 5 for additional information. The portions of the equity and net income (loss) of consolidated entities that are not attributable to us are presented separately as amounts attributable to noncontrolling interests in our condensed consolidated financial statements. References to our financial statements refer to our unaudited condensed consolidated financial statements as of September 30, 2025 and December 31, 2024, and for the three and nine months ended September 30, 2025 and 2024. References to our balance sheets refer to our condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024. References to our statements of operations refer to our condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024. References to our statements of comprehensive loss refer to our condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2025 and 2024. Income Taxes We have elected to be taxed as a real estate investment trust ("REIT") under sections 856-860 of the Internal Revenue Code of 1986, as amended (the "Code"). Under those sections, a REIT which distributes at least 90% of its REIT taxable income as dividends to its shareholders each year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders. We currently adhere and intend to continue to adhere to these requirements and to maintain our REIT status in future periods. We also participate in the activities conducted by our subsidiary entities that have elected to be treated as taxable REIT subsidiaries under the Code. As such, we are subject to federal, state and local taxes on the income from those activities. 2. Summary of Significant Accounting Policies Significant Accounting Policies There were no material changes to our significant accounting policies disclosed in our Annual Report. Use of Estimates The preparation of the financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. Recent Accounting Pronouncements Standards Not Yet Adopted Expense Disaggregation Disclosures In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." ASU 2024-03 requires expanded interim and annual disclosures of certain expense information in the notes to the financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The guidance can be applied on a prospective or retrospective basis. We are currently evaluating the potential impact of adopting this new guidance on our financial statement disclosures. Income Taxes In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." ASU 2023-09 modifies the rules on income tax disclosures to require entities to disclose (i) specific categories in the rate reconciliation, (ii) the income (loss) from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (iii) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 11 Table of Contents 2024. This guidance should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the potential impact of adopting this new guidance on our financial statement disclosures. 3. Acquisitions and Dispositions Acquisitions In September 2025, we acquired the remaining 45.0 % interest in the unconsolidated real estate venture that owned 1101 17 th Street, a 210,410 square-foot commercial asset in Washington D.C., for no consideration. We had discontinued applying the equity method of accounting on this investment in 2018 as we had received cumulative distributions in excess of our cumulative contributions and share of earnings, which reduced our investment to zero . 1101 17 th Street was consolidated as of the date of acquisition, and we recorded our investment in the asset at the net carryover basis of our previously held equity investment. We recorded assets of $ 32.3 million primarily consisting of land, and we recorded liabilities of $ 32.3 million primarily consisting of $ 30.4 million related to the estimated fair value of a $ 60.0 million non-recourse interest-only mortgage loan with a fixed interest rate of 3.40 % and a maturity date of July 14, 2026. In May 2025, we acquired Tysons Dulles Plaza, a 491,494 square-foot commercial asset in Tysons, Virginia, through a reverse like-kind exchange agreement pursuant to Section 1031 of the Code (a "Reverse 1031 Exchange") with a third-party intermediary, for $ 42.3 million, exclusive of $ 413,000 of transaction costs that were capitalized as part of the acquisition. See Note 5 for additional information. Dispositions The following summarizes activity for the nine months ended September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gain (Loss) ​ ​ ​ ​ ​ ​ Gross ​ Cash ​ on the Sale ​ ​ ​ ​ ​ ​ Sales ​ Proceeds ​ of Real Date Disposed Assets Segment Price from Sale Estate ​ ​ ​ ​ ​ ​ (In thousands) July 10, 2025 ​ The Batley ​ Multifamily ​ $ 155,000 ​ $ 150,053 ​ $ ( 39 ) June 25, 2025 ​ WestEnd25 (1) ​ Multifamily ​ ​ 186,000 ​ ​ 181,098 ​ ​ 42,309 June 20, 2025 ​ Development Parcel ​ Other ​ ​ 11,000 ​ ​ 10,355 ​ ​ ( 539 ) February 19, 2025 ​ 8001 Woodmont (2) ​ Multifamily ​ ​ 194,000 ​ ​ 188,779 ​ ​ ( 840 ) ​ ​ Other (3) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 6,138 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 47,029 ​ ​ ​ (1) In connection with the sale, we repaid the related $ 97.5 million mortgage loan and terminated the related interest rate swap resulting in a $ 2.2 million gain, which was included in "Gain (loss) on the extinguishment of debt, net" in our statement of operations for the nine months ended September 30, 2025. (2) In connection with the sale, we repaid the related $ 99.7 million mortgage loan. (3) Includes a $ 4.7 million gain related to permanent land easement transactions across various parcels in National Landing and a gain of $ 1.4 million related to prior year dispositions. In May 2025, we sold a 40.0 % noncontrolling interest in a real estate venture that owns West Half, a multifamily asset in Washington, D.C., for $ 100.0 million. See Note 9 for additional information. ​ ​ ​ ​ ​ 12 Table of Contents 4. Investments in Unconsolidated Real Estate Ventures The following summarizes the composition of our investments in unconsolidated real estate ventures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective ​ ​ ​ ​ ​ ​ ​ ​ Ownership ​ ​ Real Estate Venture Interest (1) September 30, 2025 December 31, 2024 ​ ​ ​ ​ (In thousands) J.P. Morgan Global Alternatives ("J.P. Morgan") (2) ​ 50.0 % ​ $ 74,428 ​ $ 74,188 4747 Bethesda Venture ​ 20.0 % ​ ​ 8,807 ​ ​ 10,813 Brandywine Realty Trust 30.0 % ​ 7,039 ​ 6,954 Other ​ ​ 1,265 ​ ​ 1,699 Total investments in unconsolidated real estate ventures (3) (4) ​ ​ ​ $ 91,539 ​ $ 93,654 (1) Reflects our effective ownership interests as of September 30, 2025. We have multiple investments with certain venture partners in the underlying real estate. (2) J.P. Morgan is the advisor for an institutional investor. (3) Excludes our 10.0 % subordinated interest in one commercial building and the Fortress Assets. See Note 1 for more information. Also, as of December 31, 2024, excluded our interest in an investment in the real estate venture that owned 1101 17th Street for which we had discontinued applying the equity method of accounting in 2018 as we had received cumulative distributions in excess of our cumulative contributions and share of earnings, which reduced our investment to zero ; further, we were not obligated to provide for losses, had not guaranteed its obligations or otherwise committed to provide financial support. In September 2025, we acquired the remaining 45.0 % interest in the unconsolidated real estate venture that owned 1101 17 th Street, which was consolidated as of the date of acquisition. See Note 3 for additional information. (4) As of September 30, 2025 and December 31, 2024, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $ 2.2 million and $ 10.6 million, resulting principally from our zero -investment balance in certain real estate ventures and capitalized interest . We provide leasing, property management and other real estate services to our unconsolidated real estate ventures. We recognized revenue, including expense reimbursements, of $ 2.8 million and $ 8.3 million for the three and nine months ended September 30, 2025, and $ 4.4 million and $ 13.0 million for the three and nine months ended September 30, 2024. The following summarizes the debt of our unconsolidated real estate ventures: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ Average Effective ​ ​ ​ Interest Rate (1) September 30, 2025 December 31, 2024 ​ ​ ​ ​ (In thousands) Variable rate (2) 5.48 % ​ $ 175,000 ​ $ 175,000 Fixed rate (3) — ​ — ​ 60,000 Mortgage loans ​ ​ ​ 175,000 ​ 235,000 Unamortized deferred financing costs and premium / discount, net ​ ​ ​ ( 3,758 ) ​ ( 5,795 ) Mortgage loans, net (4) ​ ​ ​ $ 171,242 ​ $ 229,205 (1) Weighted average effective interest rate as of September 30, 2025. (2) Includes variable rate mortgage loans with interest rate cap agreements. (3) Includes variable rate mortgage loans with interest rates fixed by interest rate swap agreements. The $ 60.0 million mortgage loan outstanding as of December 31, 2024 was assumed as part of our acquisition of the remaining 45.0 % interest in the unconsolidated real estate venture that owned 1101 17 th Street. See Note 3 for additional information. (4) See Note 17 for additional information on guarantees of the debt of our unconsolidated real estate ventures. 13 Table of Contents The following summarizes financial information for our unconsolidated real estate ventures: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 December 31, 2024 ​ (In thousands) Combined balance sheet information: (1) ​ ​ ​ ​ ​ ​ Real estate, net ​ $ 383,008 ​ $ 424,170 Other assets, net ​ 48,362 ​ 64,478 Total assets ​ $ 431,370 ​ $ 488,648 ​ ​ ​ ​ ​ ​ ​ Mortgage loans, net ​ $ 171,242 ​ $ 229,205 Other liabilities, net ​ 22,171 ​ 27,019 Total liabilities ​ 193,413 ​ 256,224 Total equity ​ 237,957 ​ 232,424 Total liabilities and equity ​ $ 431,370 ​ $ 488,648 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 ​ 2025 2024 ​ ​ (In thousands) Combined income statement information: (1) (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total revenue ​ $ 7,483 ​ $ 7,903 ​ $ 24,061 ​ $ 29,097 Operating income (3) ​ ​ 446 ​ ​ 776 ​ 7,094 ​ 6,714 Net loss (3) ​ ​ ( 3,612 ) ​ ​ ( 3,226 ) ​ ( 4,699 ) ​ ( 5,093 ) (1) Excludes amounts related to the Fortress Assets and one commercial building in which we have a 10.0 % subordinated interest. (2) Excludes amounts related to The Foundry and the L'Enfant Plaza assets as we discontinued applying the equity method of accounting after September 30, 2023 and September 30, 2022. In April 2024, the lender foreclosed on the mortgage loan secured by The Foundry and took possession of the property. In October 2024, the lender foreclosed on the mortgage loan secured by the L’Enfant Plaza assets and took possession of the properties. (3) Includes a $ 3.0 million gain for the nine months ended September 30, 2025 related to a prior year disposition. Includes the gain on the sale of Central Place Tower of $ 894,000 for the nine months ended September 30, 2024. ​ ​ ​ 5. Variable Interest Entities We hold various interests in entities deemed to be VIEs, which we evaluate at acquisition, formation, after a change in the ownership agreement, after a change in the entity's economics or after any other reconsideration event to determine if the VIE should be consolidated in our financial statements or should no longer be considered a VIE. An entity is a VIE because it is in the development stage and/or does not hold sufficient equity at risk or conducts substantially all its operations on behalf of an investor with disproportionately few voting rights. We will consolidate a VIE if we are the primary beneficiary of the VIE, which entails having the power to direct the activities that most significantly impact the VIE’s economic performance. Certain criteria we assess in determining whether we are the primary beneficiary of the VIE include our influence over significant business activities, our voting rights and any noncontrolling interest kick-out or participating rights. Unconsolidated VIEs As of September 30, 2025 and December 31, 2024, we had interests in entities deemed to be VIEs. Although we may be responsible for managing the day-to-day operations of these investees, we are not the primary beneficiary of these VIEs, as we do not hold unilateral power over activities that, when taken together, most significantly impact the respective VIE's economic performance. We account for our investment in these entities under the equity method. As of September 30, 2025 and December 31, 2024, the net carrying amounts of our investment in these entities were $ 82.3 million and $ 82.0 million, which were included in "Investments in unconsolidated real estate ventures" in our balance sheets. Our equity in the income of unconsolidated VIEs was included in "Income (loss) from unconsolidated real estate ventures, net" in our statements of 14 Table of Contents operations. Our maximum loss exposure in these entities is limited to our investments, construction commitments and debt guarantees. See Note 17 for additional information. Consolidated VIEs JBG SMITH LP is our most significant consolidated VIE. We hold 81.3 % of the limited partnership interest in JBG SMITH LP, act as the general partner and exercise full responsibility, discretion and control over its day-to-day management. The noncontrolling interests of JBG SMITH LP do not have substantive liquidation rights, substantive kick-out rights without cause or substantive participating rights that could be exercised by a simple majority of noncontrolling interest limited partners (including by such a limited partner unilaterally). Because the noncontrolling interest holders do not have these rights, JBG SMITH LP is a VIE. As general partner, we have the power to direct the activities of JBG SMITH LP that most significantly affect its economic performance, and through our majority interest, we have both the right to receive benefits from and the obligation to absorb losses of JBG SMITH LP. Accordingly, we are the primary beneficiary of JBG SMITH LP and consolidate it in our financial statements. Because we conduct our business through JBG SMITH LP, its total assets and liabilities comprise substantially all our consolidated assets and liabilities. In conjunction with the acquisition of Tysons Dulles Plaza in May 2025, we entered into a Reverse 1031 Exchange with a third-party intermediary, which was the legal owner of the entity that owned this asset. We determined that this entity was a VIE and that we were the primary beneficiary of the VIE. Accordingly, we consolidated the asset and its operations as of the acquisition date. Legal ownership of this entity was transferred to us by the third-party intermediary in July 2025. 6. Other Assets, Net The following summarizes other assets, net: ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 December 31, 2024 ​ ​ (In thousands) Prepaid expenses ​ $ 20,477 ​ $ 10,834 Derivative financial instruments, at fair value ​ ​ 15,981 ​ ​ 25,682 Deferred financing costs, net ​ 5,091 ​ 7,280 Operating lease right-of-use assets ​ ​ 42,145 ​ ​ 44,034 Investments in funds (1) ​ ​ 31,498 ​ ​ 27,665 Other investments (2) ​ ​ 11,926 ​ ​ 11,343 Other ​ 4,264 ​ 4,480 Total other assets, net ​ $ 131,382 ​ $ 131,318 (1) Consists of investments in real estate-focused technology companies, which are recorded at their fair value based on their reported net asset value. The following summarizes unrealized and realized gains (losses), which were included in "Interest and other income, net" in our statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 ​ 2025 2024 ​ ​ (In thousands) Unrealized gains ​ $ 2,300 ​ $ 2,677 ​ $ 2,017 ​ $ 3,971 Realized losses ​ ​ ( 69 ) ​ ​ ( 143 ) ​ ​ ( 69 ) ​ ​ ( 765 ) ​ (2) Primarily consists of equity investments in the Washington Housing Initiative ("WHI") Impact Pool and the LEO Impact Housing Fund. See Note 18 for additional information . ​ ​ ​ 15 Table of Contents 7. Debt Mortgage Loans The following summarizes mortgage loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average ​ ​ ​ ​ ​ ​ ​ ​ Effective ​ ​ ​ Interest Rate (1) September 30, 2025 December 31, 2024 ​ ​ ​ ​ (In thousands) Variable rate (2) 5.46 % ​ $ 552,117 ​ $ 587,254 Fixed rate (3) 5.12 % ​ 1,069,052 ​ 1,196,479 Mortgage loans ​ ​ ​ 1,621,169 ​ 1,783,733 Unamortized deferred financing costs and premium / discount, net (4) ​ ​ ​ ( 43,373 ) ​ ( 16,560 ) Mortgage loans, net ​ ​ ​ $ 1,577,796 ​ $ 1,767,173 (1) Weighted average effective interest rate as of September 30, 2025. (2) Includes variable rate mortgage loans with interest rate cap agreements. For mortgage loans with interest rate caps, the weighted average interest rate cap strike was 3.17 % , and the weighted average maturity date of the interest rate caps is in the fourth quarter of 2026. The interest rate cap strike is exclusive of the credit spreads associated with the mortgage loans. As of September 30, 2025, one-month term Secured Overnight Financing Rate ("SOFR") was 4.13 % . (3) Includes variable rate mortgage loans with interest rates fixed by interest rate swap agreements. (4) As of September 30, 2025, includes a discount of $ 29.6 million related to the mortgage loan assumed in connection with the acquisition of 1101 17 th Street. See Note 3 for additional information. As of September 30, 2025 and December 31, 2024, the net carrying value of real estate collateralizing our mortgage loans totaled $ 1.7 billion and $ 2.1 billion. Our mortgage loans contain covenants that limit our ability to incur additional indebtedness on these properties and, in certain circumstances, require lender approval of tenant leases and/or yield maintenance upon repayment prior to maturity. In June 2025, in connection with the sale of WestEnd25, we repaid the related $ 97.5 million mortgage loan. In February 2025, in connection with the sale of 8001 Woodmont, we repaid the related $ 99.7 million mortgage loan. In September 2025, in connection with the acquisition of the remaining 45.0 % interest in the unconsolidated real estate venture that owned 1101 17 th Street, we assumed the related $ 60.0 million non-recourse interest-only mortgage loan with a fixed interest rate of 3.40 % and a maturity date of July 14, 2026, which was recorded at its estimated fair value of $ 30.4 million. See Note 3 for additional information. In March 2025, we entered into a five-year interest-only $ 258.9 million mortgage loan with a fixed interest rate of 5.03 % collateralized by the Ashley and Potomac buildings at RiverHouse Apartments and repaid the outstanding $ 307.7 million mortgage loan that was collateralized by the Ashley, Potomac and James buildings. As of September 30, 2025 and December 31, 2024, we had various interest rate swap and cap agreements on certain mortgage loans with an aggregate notional value of $ 802.6 million and $ 1.4 billion. See Note 15 for additional information. Revolving Credit Facility and Term Loans As of September 30, 2025 and December 31, 2024, our unsecured revolving credit facility and term loans totaling $ 1.5 billion consisted of a $ 750.0 million revolving credit facility maturing in June 2027, a $ 200.0 million term loan ("Tranche A-1 Term Loan") maturing in January 2026, a $ 400.0 million term loan ("Tranche A-2 Term Loan") maturing in January 2028 and a $ 120.0 million term loan ("2023 Term Loan") maturing in June 2028. The revolving credit facility has two six-month extension options, and the Tranche A-1 Term Loan has one remaining one-year extension option. The agreements for our unsecured revolving credit facility and term loans include customary restrictive covenants, that, among other things, restrict our ability to incur additional indebtedness, to engage in material asset sales, mergers, consolidations and acquisitions, and to make capital expenditures, and also include requirements to maintain financial ratios. Our ability to borrow is subject to compliance with these covenants, and failure to comply with our covenants could cause a default, and we may then be required to repay such debt. 16 Table of Contents The following summarizes amounts outstanding under the revolving credit facility and term loans: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective ​ ​ ​ Interest Rate (1) ​ September 30, 2025 December 31, 2024 ​ ​ ​ ​ (In thousands) Revolving credit facility (2) (3) 5.73 % ​ $ 160,000 ​ $ 85,000 ​ ​ ​ ​ ​ ​ ​ ​ ​ Tranche A-1 Term Loan (4) 5.34 % ​ $ 200,000 ​ $ 200,000 Tranche A-2 Term Loan (5) 4.20 % ​ 400,000 ​ 400,000 2023 Term Loan (6) ​ 5.41 % ​ ​ 120,000 ​ ​ 120,000 Term loans ​ 720,000 ​ 720,000 Unamortized deferred financing costs, net ​ ( 1,550 ) ​ ( 2,147 ) Term loans, net ​ $ 718,450 ​ $ 717,853 (1) Effective interest rate as of September 30, 2025. The interest rate for our revolving credit facility excludes a 0.20 % facility fee. (2) As of September 30, 2025, daily SOFR was 4.24 % . As of September 30, 2025 and December 31, 2024, letters of credit totaling $ 4.8 million and $ 15.2 million were outstanding under our revolving credit facility. (3) As of September 30, 2025 and December 31, 2024, excludes $ 5.1 million and $ 7.3 million of net deferred financing costs related to our revolving credit facility that were included in "Other assets, net" in our balance sheets. (4) The interest rate swaps fix SOFR at a weighted average interest rate of 4.00 % through the extended maturity date of January 2027. (5) The interest rate swaps fix SOFR at a weighted average interest rate of 2.81 % through the maturity date . (6) The interest rate swap fixes SOFR at an interest rate of 4.01 % through the maturity date. ​ ​ 8. Other Liabilities, Net The following summarizes other liabilities, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 December 31, 2024 ​ ​ (In thousands) Lease intangible liabilities, net ​ $ 1,892 ​ $ 1,283 Lease incentive liabilities ​ 9,253 ​ 2,590 Liabilities related to operating lease right-of-use assets ​ 41,639 ​ 44,430 Prepaid rent ​ 12,334 ​ 12,978 Security deposits ​ 13,285 ​ 11,167 Environmental liabilities ​ 17,468 ​ 17,468 Deferred tax liability, net ​ 4,420 ​ 3,917 Dividends payable ​ — ​ 17,611 Derivative financial instruments, at fair value ​ 13,234 ​ 2,395 Accrual for loss contingencies ​ ​ 2,500 ​ ​ — Other ​ 8,666 ​ 1,988 Total other liabilities, net ​ $ 124,691 ​ $ 115,827 ​ ​ ​ ​ 9. Redeemable Noncontrolling Interests JBG SMITH LP OP Units held by persons other than JBG SMITH are redeemable for cash or, at our election, our common shares, subject to certain limitations. Vested LTIP Units are convertible into OP Units. During the nine months ended September 30, 2025 and 2024, unitholders redeemed 1.2 million and 827,012 OP Units, which we elected to redeem for an equivalent number of our common shares. As of September 30, 2025, outstanding OP Units and convertible LTIP Units totaled 13.6 million, representing an 18.7 % ownership interest in JBG SMITH LP. Our OP Units and certain vested LTIP Units are presented at the higher of their redemption value or their carrying value, with adjustments to the redemption value recognized in "Additional paid-in capital" in our balance sheets. Redemption value per OP Unit is equivalent to the market value of one 17 Table of Contents common share at the end of the period. During the fourth quarter of 2025, through October 24, 2025, unitholders redeemed 262,641 OP Units and LTIP Units, which we elected to redeem for an equivalent number of our common shares. Consolidated Real Estate Venture In May 2025, we sold a 40.0 % noncontrolling interest in a real estate venture that owns West Half, a multifamily asset in Washington, D.C., for $ 100.0 million. Following this transaction, we retained a 60.0 % ownership interest and control of the venture. We accounted for this transaction as an equity transaction and will continue to account for the asset on a consolidated basis. Pursuant to the terms of the venture agreement: (i) operating distributions are made in accordance with ownership percentages and liquidity event distributions are made pursuant to a waterfall structure whereby our venture partner is entitled to a priority return; (ii) we are required to fund all cash flow deficits; (iii) we have the right to cause a sale of the property as long as the proceeds from the sale are sufficient to cover our venture partner’s interest and required return; and (iv) our venture partner has the right, but not the obligation, to cause a sale of the property after the second-year anniversary of closing upon which we can either acquire our venture partner’s interest or market the asset for sale. Given these rights held by our venture partner, we account for its interest in the venture as a redeemable noncontrolling interest. The carrying amount of the redeemable noncontrolling interest is adjusted at the end of each reporting period to reflect the greater of (i) the initial carrying amount, increased or decreased for the noncontrolling interest’s share of net income (loss) and distributions, or (ii) the redemption value at the balance sheet date. Any adjustments to the carrying amount are recognized in "Additional paid-in capital" in our balance sheets. The following summarizes the activity of redeemable noncontrolling interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2025 ​ 2024 ​ ​ ​ ​ Consolidated ​ ​ ​ ​ ​ ​ ​ JBG ​ Real Estate ​ ​ ​ ​ JBG ​ SMITH LP Venture Total SMITH LP ​ (In thousands) Balance, beginning of period $ 429,203 ​ $ 114,000 ​ $ 543,203 ​ $ 436,673 Redemptions ( 9,296 ) ​ — ​ ( 9,296 ) ​ ( 3,553 ) Net income (loss) ( 6,541 ) ​ 84 ​ ( 6,457 ) ​ ( 4,365 ) Other comprehensive loss ( 181 ) ​ — ​ ( 181 ) ​ ( 5,595 ) Contributions (distributions), net ( 2,883 ) ​ ( 674 ) ​ ( 3,557 ) ​ ( 2,874 ) Share-based compensation expense 3,591 ​ — ​ 3,591 ​ 4,424 Adjustment to redemption value 38,455 ​ 442 ​ 38,897 ​ 20,235 Balance, end of period $ 452,348 ​ $ 113,852 ​ $ 566,200 ​ $ 444,945 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2025 ​ 2024 ​ ​ ​ ​ Consolidated ​ ​ ​ ​ ​ ​ ​ JBG ​ Real Estate ​ ​ ​ ​ JBG ​ SMITH LP Venture Total SMITH LP ​ (In thousands) Balance, beginning of period $ 423,632 ​ $ — ​ $ 423,632 ​ $ 440,737 Redemptions ( 20,150 ) ​ — ​ ( 20,150 ) ​ ( 13,769 ) LTIP Units issued in lieu of cash compensation (1) 3,048 ​ — ​ 3,048 ​ 3,836 Net income (loss) ( 18,481 ) ​ 106 ​ ( 18,375 ) ​ ( 12,353 ) Other comprehensive loss ( 3,627 ) ​ — ​ ( 3,627 ) ​ ( 4,003 ) Contributions (distributions), net ( 5,781 ) ​ 99,326 ​ 93,545 ​ ( 8,714 ) Share-based compensation expense 16,606 ​ — ​ 16,606 ​ 24,287 Adjustment to redemption value 57,101 ​ 14,420 ​ 71,521 ​ 14,924 Balance, end of period $ 452,348 ​ $ 113,852 ​ $ 566,200 ​ $ 444,945 (1) See Note 11 for additional information. 18 Table of Contents 10. Property Rental Revenue The following summarizes property rental revenue from our non-cancellable leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 ​ 2025 2024 ​ ​ (In thousands) Fixed ​ $ 95,965 ​ $ 105,015 ​ $ 288,857 ​ $ 321,594 Variable ​ ​ 8,016 ​ ​ 8,334 ​ ​ 23,132 ​ ​ 26,927 Property rental revenue ​ $ 103,981 ​ $ 113,349 ​ $ 311,989 ​ $ 348,521 ​ ​ 11. Share-Based Payments LTIP Units and Time-Based LTIP Units During the nine months ended September 30, 2025, we granted to certain employees 739,391 LTIP Units with time-based vesting requirements ("Time-Based LTIP Units") and a weighted average grant-date fair value of $ 13.59 per unit that vest ratably over four years subject to continued employment and require a three-year post vesting hold for named executive officers. Compensation expense for these units is primarily recognized over a four-year period. In January 2025, we granted 162,301 fully vested LTIP Units to certain employees who elected to receive all or a portion of their cash bonuses related to 2024 service as LTIP Units. The LTIP Units had a grant-date fair value of $ 12.77 per unit. Compensation expense totaling $ 2.1 million for these LTIP Units was recognized in 2024. In April 2025, as part of their annual compensation, we granted to non-employee trustees a total of 160,713 fully vested LTIP Units with a grant-date fair value of $ 11.66 per unit, which includes LTIP Units elected in lieu of cash retainers. The LTIP Units may not be sold while a trustee is serving on the Board of Trustees. The aggregate grant-date fair value of the Time-Based LTIP Units and the LTIP Units granted during the nine months ended September 30, 2025 was $ 14.0 million. The Time-Based LTIP Units and the LTIP Units were valued based on the closing common share price on the grant date, less a discount for post-grant restrictions. The discount was determined using Monte Carlo simulations based on the following significant assumptions: ​ ​ ​ ​ Expected volatility 30.0 % to 36.0 % Risk-free interest rate 3.9 % to 4.4 % Post-grant restriction periods 2 to 7 years ​ Appreciation-Only LTIP Units ("AO LTIP Units") In January 2025, we granted to certain employees 549,292 performance-based AO LTIP Units with a grant-date fair value of $ 2.69 per unit. The AO LTIP Units provide for a share of appreciation determined by the increase in the value of a common share at the time of conversion over the participation threshold of $ 16.98 . The AO LTIP Units are subject to a TSR modifier whereby the number of AO LTIP Units that will ultimately be earned will be increased or reduced by 25 %. The AO LTIP Units have a three-year performance period with 50 % of the AO LTIP Units earned vesting at the end of the three-year performance period and the remaining 50 % vesting on the fourth anniversary of the grant date, subject to continued employment. The AO LTIP Units expire on the fifth anniversary of their grant date. The aggregate grant-date fair value of the AO LTIP Units granted during the nine months ended September 30, 2025 was $ 1.5 million, valued using Monte Carlo simulations based on the following significant assumptions: ​ ​ ​ ​ Expected volatility 32.0 % Dividend yield 3.9 % Risk-free interest rate 4.4 % ​ 19 Table of Contents Performance-Based LTIP Units In January 2025, we issued 957,000 LTIP Units with performance-based vesting requirements ("Performance-Based LTIP Units") to certain employees. The Performance-Based LTIP Units vest at the end of a three-year performance period contingent on our achievement of net operating income ("NOI") targets set and measured annually by the Compensation Committee and subject to continued employment. While the targets are set and measured annually, the awards vest and the related compensation expense is expected to be recognized in 2027 based on the average of the actual performance achieved during the prior three years . Achievement levels for the Performance-Based LTIP Units are set for threshold, at which 25 % of the awards may be earned, target, at which 50 % of the awards may be earned and maximum performance, at which all the awards are earned. As the performance goals for subsequent years are not set at the time of issuance, the awards are not considered granted for accounting purposes and therefore do not have a grant-date fair value. Accordingly, the total unrecognized compensation expense related to unvested share-based payment arrangements disclosed below excludes the Performance-Based LTIP Units issued in 2025. Restricted Share Units ("RSUs") In January 2025, we granted to certain non-executive employees 98,029 time-based RSUs with a grant-date fair value of $ 15.44 per unit. Vesting requirements and compensation expense recognition for the RSUs are primarily consistent with those of the Time-Based LTIP Units granted in 2025. The aggregate grant-date fair value of the RSUs was $ 1.5 million. The RSUs were valued based on the closing common share price on the date of grant. ESPP Pursuant to the ESPP, employees purchased 48,017 common shares for $ 653,000 during the nine months ended September 30, 2025, valued using the Black-Scholes model based on the following significant assumptions: ​ ​ ​ ​ Expected volatility 32.0 % to 37.0 % Dividend yield 4.1 % to 4.7 % Risk-free interest rate 4.4 % Expected life ​ 3 months ​ Share-Based Compensation Expense The following summarizes share-based compensation expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 X 2025 2024 ​ (In thousands) Time-Based LTIP Units ​ $ 2,602 ​ $ 3,191 ​ $ 12,031 ​ $ 14,548 AO LTIP Units and Performance-Based LTIP Units ​ 989 ​ 1,233 ​ 3,675 ​ 8,187 LTIP Units ​ — ​ — ​ 900 ​ 1,552 Other equity awards (1) ​ 1,590 ​ 1,082 ​ 4,093 ​ 3,294 Total share-based compensation expense ​ 5,181 ​ 5,506 ​ 20,699 ​ 27,581 Less: amount capitalized ​ ( 214 ) ​ ( 377 ) ​ ( 845 ) ​ ( 1,423 ) Share-based compensation expense ​ $ 4,967 ​ $ 5,129 ​ $ 19,854 ​ $ 26,158 (1) Primarily comprising compensation expense for: (i) fully vested LTIP Units issued to certain employees in lieu of all or a portion of any cash bonuses earned, (ii) RSUs and (iii) shares issued under our ESPP. As of September 30, 2025, we had $ 17.3 million of total unrecognized compensation expense related to unvested share-based payment arrangements, which is expected to be recognized over a weighted average period of 1.8 years. 20 Table of Contents 12. Transaction and Other Costs The following summarizes transaction and other costs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 X 2025 2024 ​ (In thousands) Completed, potential and pursued transaction expenses (1) ​ $ 141 ​ $ 104 ​ $ 2,703 ​ $ 1,645 Severance and other costs ​ 325 ​ 563 ​ 2,104 ​ 1,075 Demolition costs ​ ​ 28 ​ ​ — ​ ​ 444 ​ ​ 285 Transaction and other costs ​ $ 494 ​ $ 667 ​ $ 5,251 ​ $ 3,005 (1) Primarily consists of deal costs and legal costs related to pursued transactions. 13. Interest Expense The following summarizes interest expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 X 2025 2024 ​ (In thousands) Interest expense before capitalized interest ​ $ 32,501 ​ $ 35,142 ​ $ 100,274 ​ $ 97,216 Amortization of deferred financing costs ​ 3,565 ​ 4,081 ​ 11,410 ​ 12,163 Net unrealized (gain) loss on non-designated derivatives ​ ( 4 ) ​ 8 ​ ( 59 ) ​ 77 Capitalized interest ​ ( 1,281 ) ​ ( 3,964 ) ​ ( 6,073 ) ​ ( 12,056 ) Interest expense ​ $ 34,781 ​ $ 35,267 ​ $ 105,552 ​ $ 97,400 ​ 14. Shareholders' Equity and Loss Per Common Share Common Shares Repurchased Our Board of Trustees has authorized the repurchase of up to $ 2.0 billion of our outstanding common shares. During the three and nine months ended September 30, 2025, we repurchased and retired 3.1 million and 26.4 million common shares for $ 62.9 million and $ 435.3 million, a weighted average purchase price per share of $ 20.21 and $ 16.46 . During the three and nine months ended September 30, 2024, we repurchased and retired 3.1 million and 10.8 million common shares for $ 50.2 million and $ 168.1 million, a weighted average purchase price per share of $ 16.23 and $ 15.61 . Since we began the share repurchase program through September 30, 2025, we have repurchased and retired 83.2 million common shares for $ 1.6 billion, a weighted average purchase price per share of $ 18.78 . During the fourth quarter of 2025, through October 24, 2025, we repurchased and retired 383,758 common shares for $ 7.9 million, a weighted average purchase price per share of $ 20.49 , pursuant to a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Loss Per Common Share Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average common shares outstanding during the period. Unvested share-based compensation awards that entitle holders to receive non-forfeitable distributions are considered participating securities. Consequently, we are required to apply the two-class method of computing basic and diluted earnings (loss) that would otherwise have been available to common shareholders. Under the two-class method, earnings for the period are allocated between common shareholders and participating securities based on their respective rights to receive dividends. During periods of net loss, losses are allocated only to the extent the participating securities are required to absorb their share of such losses. Distributions to participating securities in excess of their allocated income or loss are shown as a reduction to net income (loss) attributable 21 Table of Contents to common shareholders. Diluted earnings (loss) per common share reflects the potential dilution of the assumed exchange of various unit and share-based compensation awards into common shares to the extent they are dilutive. The following summarizes the calculation of basic and diluted loss per common share and reconciles net loss to the amounts of net loss available to common shareholders used in calculating basic and diluted loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2025 2024 X 2025 2024 ​ ​ (In thousands, except per share amounts) Net loss ​ $ ( 35,012 ) ​ $ ( 31,309 ) ​ $ ( 111,891 ) ​ $ ( 106,913 ) Net loss attributable to redeemable noncontrolling interests ​ ​ 6,457 ​ 4,365 ​ 18,375 ​ 12,353 Net (income) loss attributable to noncontrolling interests ​ ​ — ​ ( 36 ) ​ — ​ 10,931 Net loss attributable to common shareholders ​ ​ ( 28,555 ) ​ ​ ( 26,980 ) ​ ​ ( 93,516 ) ​ ​ ( 83,629 ) Distributions to participating securities ​ ​ ( 449 ) ​ ​ ( 439 ) ​ ( 903 ) ​ ( 1,596 ) Net loss available to common shareholders - basic and diluted ​ $ ( 29,004 ) ​ $ ( 27,419 ) ​ $ ( 94,419 ) ​ $ ( 85,225 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of common shares outstanding - basic and diluted ​ ​ 60,606 ​ ​ 85,292 ​ 70,062 ​ 89,637 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss per common share - basic and diluted ​ $ ( 0.48 ) ​ $ ( 0.32 ) ​ $ ( 1.35 ) ​ $ ( 0.95 ) ​ The effect of the redemption of OP Units, Time-Based LTIP Units, fully vested LTIP Units and special equity awards that were outstanding as of September 30, 2025 and 2024 is excluded in the computation of diluted loss per common share as the assumed redemption of such units for common shares on a one-for-one basis was antidilutive (the assumed redemption of these units would have no impact on the determination of diluted loss per share). Since OP Units, Time-Based LTIP Units, LTIP Units and special equity awards, which are held by noncontrolling interests, are attributed gains at an identical proportion to the common shareholders, the gains attributable and their equivalent weighted average impact are excluded from loss available to common shareholders and from the weighted average number of common shares outstanding in calculating diluted loss per common share. AO LTIP Units, Performance-Based LTIP Units, formation awards and RSUs, which totaled 7.9 million and 8.0 million for the three and nine months ended September 30, 2025, and 7.9 million for three and nine months ended September 30, 2024, were excluded from the calculation of diluted loss per common share as they were antidilutive, but could be dilutive in the future. ​ Dividends Declared in October 2025 On October 23, 2025 , our Board of Trustees declared a quarterly dividend of $ 0.175 per common share, payable on November 20, 2025 to shareholders of record as of November 6, 2025 . Issuance of Class B Common Shares ("Class B Shares") Effective October 27, 2025, 30.0 million authorized but unissued common shares were reclassified as Class B common shares, and on October 27, 2025, we issued 13.9 million Class B Shares, with a par value of $ 0.01 per share, to certain LTIP Unit and OP Unit holders. Holders of Class B Shares will be entitled to vote on all matters submitted to our shareholders, with common shares and Class B Shares voting as a single class. Class B Shares will be automatically cancelled and redeemed upon the redemption of each corresponding OP Unit. Class B Shares will not be listed on any national securities exchange, and do not have any economic rights or rights to any dividends, distributions or proceeds upon our liquidation. Similarly, the Class B shares will be excluded from the calculation of earnings (loss) per common share as they do not participate in profits or losses. 15. Fair Value Measurements Fair Value Measurements on a Recurring Basis To manage or hedge our exposure to interest rate risk, we follow established risk management policies and procedures, including the use of a variety of derivative financial instruments. 22 Table of Contents As of September 30, 2025 and December 31, 2024, we had various derivative financial instruments consisting of interest rate swap and cap agreements that are measured at fair value on a recurring basis. The net unrealized gain (loss) on our derivative financial instruments designated as effective hedges was ($ 2.9 ) million and $ 17.2 million as of September 30, 2025 and December 31, 2024 and was recorded in "Accumulated other comprehensive income (loss)" in our balance sheets, of which a portion was allocated to "Redeemable noncontrolling interests." Within the next 12 months, we expect to reclassify $ 371,000 of the net unrealized gain as a decrease to interest expense. Accounting Standards Codification 820 ("Topic 820"), Fair Value Measurement and Disclosures, defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 — quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 — observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 — unobservable inputs that are used when little or no market data is available. The fair values of the derivative financial instruments are based on the estimated amounts we would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and observable inputs. The derivative financial instruments are classified within Level 2 of the valuation hierarchy. The following summarizes assets and liabilities measured at fair value on a recurring basis: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurements ​ Total Level 1 Level 2 Level 3 ​ ​ (In thousands) September 30, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative financial instruments designated as effective hedges: ​ ​ ​ ​ Classified as assets in "Other assets, net" ​ $ 9,042 ​ ​ — ​ $ 9,042 ​ ​ — Classified as liabilities in "Other liabilities, net" ​ ​ 6,418 ​ — ​ ​ 6,418 ​ — Non-designated derivatives: ​ ​ ​ ​ Classified as assets in "Other assets, net" ​ 6,939 ​ — ​ 6,939 ​ — Classified as liabilities in "Other liabilities, net" ​ 6,816 ​ — ​ 6,816 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ ​ ​ Derivative financial instruments designated as effective hedges: ​ ​ ​ ​ Classified as assets in "Other assets, net" ​ $ 23,367 ​ ​ — ​ $ 23,367 ​ ​ — Classified as liabilities in "Other liabilities, net" ​ ​ 90 ​ — ​ ​ 90 ​ — Non-designated derivatives: ​ ​ ​ ​ Classified as assets in "Other assets, net" ​ 2,315 ​ — ​ 2,315 ​ — Classified as liabilities in "Other liabilities, net" ​ 2,305 ​ — ​ 2,305 ​ — ​ The fair values of our derivative financial instruments were determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of the derivative financial instrument. This analysis reflected the contractual terms of the derivative, including the period to maturity, and used observable market-based inputs, including interest rate market data and implied volatilities in such interest rates. While it was determined that the majority of the inputs used to value the derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the derivatives also utilized Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default. However, as of September 30, 2025 and December 31, 2024, the significance of the impact of the credit valuation adjustments on the overall valuation of the derivative financial instruments was assessed, and it was determined that these adjustments were not significant to the overall valuation of the derivative financial instruments. As a result, it was determined that the derivative financial instruments in their entirety should be classified in Level 2 of the fair value hierarchy. The net unrealized gains (losses) included in "Other comprehensive income (loss)" in our statements of comprehensive loss for the three and nine months ended September 30, 2025 and 2024 were attributable to the net change in unrealized gains (losses) related to effective derivative financial instruments that were outstanding during those periods, 23 Table of Contents none of which were reported in our statements of operations as the derivative financial instruments were documented and qualified as hedging instruments. Realized and unrealized gains (losses) related to non-designated hedges are included in "Interest expense" in our statements of operations. Fair Value Measurements on a Nonrecurring Basis Our real estate assets are reviewed for impairment whenever there are changes in circumstances or indicators that the carrying amount of the assets may not be recoverable. Real estate held for sale is carried at the lower of carrying amounts or estimated fair value less disposal costs. During the nine months ended September 30, 2025, this assessment resulted in the impairment of The Batley, 2200 Crystal Drive and a development parcel, which had an estimated fair value totaling $ 172.5 million based on a market approach and were classified as Level 2 in the fair value hierarchy. Impairment losses totaled $ 4.8 million and $ 45.1 million for the three and nine months ended September 30, 2025, which were included in "Impairment loss" in our statements of operations. The Batley was sold in July 2025. Financial Assets and Liabilities Not Measured at Fair Value As of September 30, 2025 and December 31, 2024, all financial assets and liabilities were reflected in our balance sheets at amounts which, in our estimation, reasonably approximated their fair values, except for the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ December 31, 2024 ​ Carrying ​ Carrying ​ ​ ​ Amount (1) ​ Fair Value ​ Amount (1) ​ Fair Value ​ (In thousands) Financial liabilities: ​ ​ ​ ​ Mortgage loans ​ $ 1,621,169 ​ $ 1,614,099 ​ $ 1,783,733 ​ $ 1,749,904 Revolving credit facility ​ 160,000 ​ 160,098 ​ 85,000 ​ 84,886 Term loans ​ 720,000 ​ 719,769 ​ 720,000 ​ 715,929 (1) The carrying amount consists of principal only. The fair values of the mortgage loans, revolving credit facility and term loans were determined using Level 2 inputs of the fair value hierarchy. The fair value of our mortgage loans is estimated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit profiles based on market sources. The fair value of our revolving credit facility and term loans is calculated based on the net present value of payments over the term of the facilities using estimated market rates for similar notes and remaining terms. 16. Segment Information We own, operate and develop mixed-use properties concentrated in and around Washington, D.C. We derive our revenue primarily from leases with multifamily and commercial tenants. In addition, our third-party real estate services business provides fee-based real estate services. Our operating segments are aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker ("CODM"), makes key operating decisions, evaluates financial results, allocates resources and manages our business. Accordingly, our three operating and reportable segments are multifamily, commercial and third-party real estate services. The CODM measures and evaluates the performance of our operating segments based on only the following measures at our share pertaining to each of our segments: ● NOI (multifamily and commercial) - which includes our proportionate share of revenue and expenses attributable to real estate ventures. NOI includes property rental revenue and other property revenue, and deducts property expenses. NOI excludes deferred rent, commercial lease termination revenue, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and the amortization of acquired above-market leases and below-market ground lease intangibles. 24 Table of Contents ● Net third-party real estate services, excluding reimbursements - which includes revenue streams generated by this segment, excluding reimbursement revenue, as well as the expenses attributable to this segment at our proportionate share, calculated by excluding real estate services revenue from our interests in real estate ventures. The CODM uses these measures predominantly in the annual budget and forecasting process as well as in his review of our quarterly financial results when making decisions about the allocation of operating and capital resources to each segment. We have included disclosure of NOI and the results of our third-party real estate services business at our share to align with our internal reporting and the information used by our CODM. The following summarizes NOI at our share for our multifamily and commercial segments, including a reconciliation to our total NOI at our share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2025 ​ Multifamily Commercial Total ​ (In thousands, at our share) Property rental revenue ​ $ 47,450 ​ $ 52,587 ​ $ 100,037 Other property revenue ​ ​ 845 ​ ​ 4,183 ​ ​ 5,028 Total property revenue ​ 48,295 ​ 56,770 ​ 105,065 Property expense: ​ ​ ​ ​ ​ Real estate taxes ​ 5,484 ​ 5,902 ​ 11,386 Payroll ​ ​ 3,553 ​ ​ 3,197 ​ ​ 6,750 Utilities ​ ​ 4,115 ​ ​ 4,342 ​ ​ 8,457 Repairs and maintenance ​ ​ 5,909 ​ ​ 5,300 ​ ​ 11,209 Other property operating ​ ​ 3,054 ​ ​ 4,774 ​ ​ 7,828 Total property expense ​ 22,115 ​ 23,515 ​ 45,630 NOI from reportable segments ​ $ 26,180 ​ $ 33,255 ​ ​ 59,435 Other NOI (1) ​ ​ ​ ​ ​ ​ ​ ​ ( 549 ) NOI ​ ​ ​ ​ ​ ​ ​ $ 58,886 ​ ​ Three Months Ended September 30, 2024 ​ Multifamily Commercial Total ​ (In thousands, at our share) Property rental revenue ​ $ 55,425 ​ $ 55,688 ​ $ 111,113 Other property revenue ​ ​ 1,085 ​ ​ 4,620 ​ ​ 5,705 Total property revenue ​ 56,510 ​ 60,308 ​ 116,818 Property expense: ​ ​ ​ ​ Real estate taxes ​ 5,861 ​ 5,031 ​ 10,892 Payroll ​ ​ 4,040 ​ ​ 3,257 ​ ​ 7,297 Utilities ​ ​ 4,440 ​ ​ 4,518 ​ ​ 8,958 Repairs and maintenance ​ ​ 6,369 ​ ​ 5,464 ​ ​ 11,833 Other property operating ​ ​ 3,495 ​ ​ 4,515 ​ ​ 8,010 Total property expense ​ 24,205 ​ 22,785 ​ 46,990 NOI from reportable segments ​ $ 32,305 ​ $ 37,523 ​ ​ 69,828 Other NOI (1) ​ ​ ​ ​ ​ ​ ​ ​ ( 1,492 ) NOI ​ ​ ​ ​ ​ ​ ​ $ 68,336 ​ ​ ​ 25 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2025 ​ Multifamily Commercial Total ​ (In thousands, at our share) Property rental revenue ​ $ 155,616 ​ $ 154,026 ​ $ 309,642 Other property revenue ​ ​ 2,120 ​ ​ 12,487 ​ ​ 14,607 Total property revenue ​ 157,736 ​ 166,513 ​ 324,249 Property expense: ​ ​ ​ Real estate taxes ​ 17,220 ​ 17,297 ​ 34,517 Payroll ​ ​ 11,141 ​ ​ 9,306 ​ ​ 20,447 Utilities ​ ​ 11,809 ​ ​ 10,511 ​ ​ 22,320 Repairs and maintenance ​ ​ 17,623 ​ ​ 15,005 ​ ​ 32,628 Other property operating ​ ​ 9,283 ​ ​ 13,306 ​ ​ 22,589 Total property expense ​ 67,076 ​ 65,425 ​ 132,501 NOI from reportable segments ​ $ 90,660 ​ $ 101,088 ​ ​ 191,748 Other NOI (1) ​ ​ ​ ​ ​ ​ ​ ​ ( 1,937 ) NOI ​ ​ ​ ​ ​ ​ ​ $ 189,811 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2024 ​ Multifamily Commercial Total ​ ​ (In thousands, at our share) Property rental revenue ​ $ 159,359 ​ $ 177,320 ​ $ 336,679 Other property revenue ​ ​ 2,738 ​ ​ 13,245 ​ ​ 15,983 Total property revenue ​ 162,097 ​ 190,565 ​ 352,662 Property expense: ​ ​ ​ Real estate taxes ​ 16,740 ​ 20,705 ​ 37,445 Payroll ​ ​ 12,444 ​ ​ 10,045 ​ ​ 22,489 Utilities ​ ​ 11,376 ​ ​ 11,389 ​ ​ 22,765 Repairs and maintenance ​ ​ 16,200 ​ ​ 16,272 ​ ​ 32,472 Other property operating ​ ​ 8,468 ​ ​ 13,054 ​ ​ 21,522 Total property expense ​ 65,228 ​ 71,465 ​ 136,693 NOI from reportable segments ​ $ 96,869 ​ $ 119,100 ​ ​ 215,969 Other NOI (1) ​ ​ ​ ​ ​ ​ ​ ​ ( 4,542 ) NOI ​ ​ ​ ​ ​ ​ ​ $ 211,427 (1) Includes activity related to development assets and land assets for which we are the ground lessor. The following summarizes our third-party real estate services business at our share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 X 2025 2024 ​ (In thousands, at our share) Property management fees ​ $ 3,321 ​ $ 3,903 ​ $ 9,961 ​ $ 11,892 Asset management fees ​ 1,049 ​ 1,139 ​ 2,335 ​ 3,305 Development fees ​ 361 ​ 323 ​ 1,348 ​ 982 Leasing fees ​ 583 ​ 998 ​ 2,336 ​ 3,246 Construction management fees ​ 179 ​ 342 ​ 677 ​ 903 Other service revenue ​ 1,082 ​ 1,551 ​ 3,152 ​ 3,812 Third-party real estate services revenue, excluding reimbursements ​ 6,575 ​ 8,256 ​ 19,809 ​ 24,140 Third-party real estate services expenses, excluding reimbursements ​ ​ 5,725 ​ ​ 7,166 ​ ​ 18,358 ​ ​ 28,428 Net third-party real estate services, excluding reimbursements ​ $ 850 ​ $ 1,090 ​ $ 1,451 ​ $ ( 4,288 ) ​ ​ 26 Table of Contents The following reconciles revenue at our share to total revenue per the statements of operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 X 2025 2024 ​ ​ (In thousands) Total property revenue at our share ​ $ 105,065 ​ $ 116,818 ​ $ 324,249 ​ $ 352,662 Third-party real estate services revenue, excluding reimbursements, at our share ​ ​ 6,575 ​ ​ 8,256 ​ ​ 19,809 ​ ​ 24,140 Reimbursement revenue (1) ​ ​ 8,077 ​ ​ 8,473 ​ ​ 24,126 ​ ​ 27,109 Our share of revenue attributable to unconsolidated real estate ventures ​ ( 2,146 ) ​ ( 2,147 ) ​ ( 6,403 ) ​ ( 8,667 ) Real estate venture partner’s share of revenue attributable to consolidated real estate ventures ​ ​ 1,761 ​ ​ — ​ ​ 2,269 ​ ​ — Other property revenue ​ ​ 2,061 ​ ​ 724 ​ ​ 5,150 ​ ​ 4,035 Other adjustments (2) ​ 2,477 ​ 3,902 ​ 1,835 ​ 17,251 Total revenue per statements of operations ​ $ 123,870 ​ $ 136,026 ​ $ 371,035 ​ $ 416,530 (1) Represents reimbursements of expenses incurred by us on behalf of third parties, including allocated payroll costs and amounts paid to third-party contractors for construction management projects. (2) Adjustment to include deferred rent, above/below market lease amortization, commercial lease termination revenue and lease incentive amortization. The following reconciles NOI at our share to loss before income tax (expense) benefit: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2025 2024 X 2025 2024 ​ (In thousands) NOI at our share ​ $ 58,886 ​ $ 68,336 ​ $ 189,811 ​ $ 211,427 Net third-party real estate services, excluding reimbursements, at our share ​ ​ 850 ​ ​ 1,090 ​ ​ 1,451 ​ ​ ( 4,288 ) Add: ​ ​ ​ ​ Income (loss) from unconsolidated real estate ventures, net ​ ( 664 ) ​ ( 745 ) ​ ( 165 ) ​ 4 Interest and other income, net ​ 2,378 ​ 4,573 ​ 3,601 ​ 10,105 Gain (loss) on the sale of real estate, net ​ 4,660 ​ ( 5,352 ) ​ 47,029 ​ ( 5,066 ) Less: ​ ​ ​ ​ Depreciation and amortization expense ​ 48,164 ​ 50,050 ​ 143,311 ​ 158,211 General and administrative expense: corporate and other ​ 13,214 ​ 11,881 ​ 45,491 ​ 43,855 Transaction and other costs ​ 494 ​ 667 ​ 5,251 ​ 3,005 Interest expense ​ 34,781 ​ 35,267 ​ 105,552 ​ 97,400 (Gain) loss on the extinguishment of debt, net ​ — ​ ( 43 ) ​ 2,402 ​ ( 43 ) Impairment loss ​ ​ 4,771 ​ — ​ ​ 45,067 ​ ​ 18,236 Adjustments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Our share of net third-party real estate services attributable to real estate ventures ​ ​ ( 197 ) ​ ​ ( 117 ) ​ ​ ( 712 ) ​ ​ ( 451 ) NOI attributable to unconsolidated real estate ventures at our share ​ ( 1,012 ) ​ ( 1,292 ) ​ ( 3,289 ) ​ ( 5,506 ) Real estate venture partner’s share of NOI attributable to consolidated real estate ventures ​ ​ 915 ​ ​ — ​ ​ 1,187 ​ ​ — Non-cash rent adjustments (1) ​ ( 1,561 ) ​ 3,817 ​ ( 4,071 ) ​ 7,756 Other adjustments (2) ​ 3,083 ​ ( 2,966 ) ​ 984 ​ ( 270 ) Total adjustments ​ 1,228 ​ ( 558 ) ​ ( 5,901 ) ​ 1,529 Loss before income tax (expense) benefit ​ $ ( 34,086 ) ​ $ ( 30,478 ) ​ $ ( 111,248 ) ​ $ ( 106,953 ) (1) Adjustment to include deferred rent, above/below market lease amortization and lease incentive amortization. (2) Adjustment to include payments associated with assumed lease liabilities related to operating properties and to exclude commercial lease termination revenue, related party management fees, corporate entity activity and inter-segment activity. ​ 27 Table of Contents ​ ​ ​ 17. Commitments and Contingencies Insurance We maintain general liability insurance with limits of $ 100.0 million per occurrence and in the aggregate, and property and rental value insurance coverage with limits of $ 1.0 billion per occurrence, with sub-limits for certain perils such as floods and earthquakes on each of our properties. We also maintain coverage, through our wholly owned captive insurance subsidiary, for a portion of the first loss on the above limits and for both conventional terrorist acts and for nuclear, biological, chemical or radiological terrorism events with limits of $ 2.0 billion per occurrence. These policies are partially reinsured by third-party insurance providers. We will continue to monitor the state of the insurance market, and the scope and costs of coverage for acts of terrorism. We cannot anticipate what coverage will be available on commercially reasonable terms in the future. We are responsible for deductibles and losses in excess of the insurance coverage, which could be material. Our debt, consisting of mortgage loans secured by our properties, a revolving credit facility and term loans, contains customary covenants requiring adequate insurance coverage. Although we believe that we currently have adequate insurance coverage, we may not be able to obtain an equivalent amount of coverage at a reasonable cost in the future. If lenders insist on greater coverage than we can obtain, it could adversely affect our ability to finance or refinance our properties. Construction Commitments As of September 30, 2025, we had one asset under construction, Valen, and are building a new amenity hub at 2011 Crystal Drive that together, based on our current plans and estimates, require an additional $ 26.1 million to complete, which we anticipate will be primarily expended over the next year . Environmental Matters Most of our assets have been subject, at some point, to environmental assessments that are intended to evaluate the environmental condition of the subject and surrounding assets. These environmental assessments generally have included a historical review, a public records review, a visual inspection of the site and surrounding assets, visual or historical evidence of underground storage tanks and other features, and the preparation and issuance of a written report. Soil, soil vapor and/or groundwater subsurface testing is conducted at our assets, when necessary, to further investigate any conditions identified by the initial assessment that could reasonably be expected to pose a material concern to the property or result in us incurring material environmental liabilities as a result of redevelopment. The tests may not, however, have included extensive sampling or subsurface investigations. In each case where the environmental assessments have identified conditions requiring remedial actions required by law, we have initiated appropriate actions. The environmental assessments have not revealed any material environmental contamination that we believe would have a material adverse effect on our overall business, financial condition or results of operations, or that have not been anticipated and remediated during site redevelopment as required by law. Nevertheless, there can be no assurance that the identification of new areas of contamination, changes in the extent or known scope of contamination, the discovery of additional sites or changes in cleanup requirements would not result in significant cost to us. Environmental liabilities totaled $ 17.5 million as of September 30, 2025 and December 31, 2024, and are included in "Other liabilities, net" in our balance sheets. Legal Proceedings In November 2023, the District of Columbia filed a lawsuit in the Superior Court of the District of Columbia against RealPage, Inc., a provider of revenue management systems, numerous multifamily rental companies, and 14 owners and/or operators of multifamily housing in the District of Columbia, including JBG Associates, L.L.C., one of our subsidiaries, alleging that the defendants violated the District of Columbia Antitrust Act by unlawfully agreeing to use RealPage, Inc. revenue management systems and sharing sensitive data. The District of Columbia is seeking monetary damages, equitable relief, attorneys’ fees, interest and costs. While we intend to vigorously defend against this lawsuit, given the current stage of the District of Columbia’s lawsuit, we are unable to predict the outcome or estimate the amount of loss, if any, that may result from the lawsuit. While we do not believe that these proceedings will have a material adverse effect on our financial 28 Table of Contents condition, we cannot give assurance that the proceedings will not have a material effect on our results of operations or cash flows in the event of a negative outcome. We, along with multiple other parties, are named defendants in a lawsuit arising out of a condominium development project known as Wardman Tower in Washington, D.C. The lawsuit was filed by the Wardman Tower Residential Condominium Unit Owners Association in the Superior Court of the District of Columbia on November 25, 2020. The lawsuit seeks damages resulting primarily from alleged construction and design deficiencies, alleged misrepresentations and claims alleged under the D.C. Consumer Protection Procedures Act ("CPPA"). The lawsuit seeks $ 185.0 million in compensatory damages, plus treble damages related to the CPPA claims, and attorney’s fees and costs. The lawsuit has been scheduled for a bench trial, which is currently set to begin on November 10, 2025. The Wardman Tower project was designed and constructed by other parties and achieved substantial completion prior to our formation. We were not involved in any way with the project but one of our subsidiary entities, that is not a defendant in the litigation, served as the fee developer for the project owner. We deny liability for the claims asserted and will vigorously defend ourselves against the claims alleged in the litigation. However, no assurance can be given that the matter will be resolved favorably. There are various other legal actions arising in the ordinary course of business. In our opinion, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows. Our accrual for loss contingencies relating to unresolved legal matters was included in "Other liabilities, net" in our balance sheets. Actual losses may differ materially from amounts recorded and the ultimate outcome of these legal proceedings is generally not yet determinable. Other As of September 30, 2025, we had committed tenant-related obligations totaling $ 33.7 million. The timing and amounts of payments for tenant-related obligations are uncertain and may only be due upon satisfactory performance of certain conditions. From time to time, we (or ventures in which we have an ownership interest) have agreed, and may in the future agree with respect to unconsolidated real estate ventures, to (i) guarantee portions of the principal, interest and other amounts in connection with borrowings, (ii) provide customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) in connection with borrowings, or (iii) provide guarantees to lenders and other third parties for the completion and stabilization of development projects. We customarily have agreements with our outside venture partners whereby the partners agree to reimburse the real estate venture or us for their share of any payments made under certain of these guarantees. At times, we also have agreements with certain of our outside venture partners whereby we agree to either indemnify the partners and/or the associated ventures with respect to certain contingent liabilities associated with operating assets or to reimburse our partner for its share of any payments made by them under certain guarantees. Guarantees (excluding environmental) customarily terminate either upon the satisfaction of specified circumstances or repayment of the underlying debt. Amounts that we may be required to pay in future periods in relation to guarantees associated with budget overruns or operating losses are not estimable. As of September 30, 2025, we had no principal payment guarantees related to our unconsolidated real estate ventures. Additionally, with respect to borrowings of our consolidated entities, we may agree to (i) guarantee portions of the principal, interest and other amounts, (ii) provide customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) or (iii) provide guarantees to lenders, tenants and other third parties for the completion and stabilization of development projects. As of September 30, 2025, we had no debt principal payment guarantees related to our consolidated real estate assets. As of September 30, 2025, we had unfunded capital commitments totaling $ 6.4 million related to our investments in real estate-focused technology companies and $ 3.4 million related to our investments in the WHI Impact Pool and the LEO Impact Housing Fund. See Note 18 for additional information. 18. Transactions with Related Parties Our third-party real estate services business provides fee-based real estate services to third parties, including the legacy funds formerly organized by The JBG Companies ("JBG") (the "JBG Legacy Funds"). In connection with the contribution 29 Table of Contents to us of certain assets formerly owned by the JBG Legacy Funds, the general partner and managing member interests in the JBG Legacy Funds that were held by certain former JBG executives (and who became members of our management team and/or Board of Trustees) were not transferred to us and remain under the control of these individuals. In addition, certain members of our senior management team and Board of Trustees have ownership interests in the JBG Legacy Funds, and own carried interests in each fund and in certain of our real estate ventures that entitle them to receive cash payments if the fund or real estate venture achieves certain return thresholds. LEO Impact Capital ("LEO"), our workforce housing platform dedicated to acquiring, financing and operating multifamily housing in high impact neighborhoods to preserve affordability for middle-income residents, manages the WHI Impact Pool. The WHI Impact Pool completed fundraising in 2020 with capital commitments totaling $ 114.4 million, which included a commitment from us of $ 11.2 million. Additionally, LEO had an initial closing of its new multi-market fund, the LEO Impact Housing Fund, totaling $ 43.5 million ($ 64.5 million including accordions), which included a commitment from us of $ 1.3 million. As of September 30, 2025, our remaining unfunded commitments totaled $ 3.4 million. The third-party real estate services revenue, including expense reimbursements, from the JBG Legacy Funds, the WHI Impact Pool, the LEO Impact Housing Fund and their affiliates was $ 2.5 million and $ 7.3 million for the three and nine months ended September 30, 2025, and $ 3.2 million and $ 10.3 million for the three and nine months ended September 30, 2024. As of September 30, 2025 and December 31, 2024, we had receivables from the JBG Legacy Funds, the WHI Impact Pool, the LEO Impact Housing Fund and their affiliates totaling $ 966,000 and $ 2.1 million for such services. We lease our corporate offices from an unconsolidated real estate venture, in which we have a 20.0 % interest, and incurred $ 1.3 million and $ 3.9 million of rent expense for the three and nine months ended September 30, 2025, and $ 1.3 million and $ 4.1 million of rent expense for the three and nine months ended September 30, 2024, which was included in "General and administrative expense" in our statements of operations. We have agreements with Building Maintenance Services ("BMS"), an entity in which we have a minor preferred interest, to supervise cleaning, engineering and security services at our properties. We paid BMS $ 1.9 million and $ 6.0 million for the three and nine months ended September 30, 2025, and $ 2.5 million and $ 7.2 million for the three and nine months ended September 30, 2024, which was included in "Property operating expenses" in our statements of operations.