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JBGS Divider

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Management Letter

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February 18, 2025

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Our Fellow Shareholders:

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Much has changed since our last earnings release, most of which is very specific to the Washington metro area. It is, perhaps, a gross understatement to declare the current environment unpredictable, especially for the local real estate market. On the other hand, since the pandemic the DC market has desperately needed a turnaround, both in terms of public safety and office attendance. It could well be that the recent actions by the new Administration will deliver just that. It could also be that dramatic efforts to shrink government employment may offer nothing but more headwinds. The only thing we know for certain is it’s too early to tell. That said, plan beats no plan 100% of the time, and we always have a plan. We believe that office values have bottomed. We believe that the value of our holdings, especially in National Landing, has improved as a product of their location, unique demand drivers, and the placemaking and use diversification we’ve implemented. We believe that the value of our National Landing assets will increase as we continue to execute our business plan and stabilize the office, residential, and retail assets there. 

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Since our public launch in 2017, the cornerstone of our capital allocation strategy has been maximizing long-term NAV per share growth. Our focus now will be no different. Since the pandemic began, we have repurchased approximately 40% of our shares; and as long as our share price fails to reflect the underlying, intrinsic value of our business, we believe share repurchases funded via asset sales at (or hopefully above) NAV will continue to be our most accretive allocation of capital. In a climate where office valuations are near cyclical lows with limited liquidity, the most efficiently priced source of capital will likely come from multifamily assets, specifically in DC where our holdings are less concentrated. With the recent increase in our buyback authorization, we have the capacity to repurchase approximately $840 million of additional shares, and we intend to do just that for as long as pricing remains accretive. As we continue pursuing our mixed-use strategy, we will also remain focused on the strategic core of our business and our unique differentiators as an operator, developer, and capital allocator. 

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The following are highlights from the quarter and the year. 

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2024 Accomplishments

Completed The Grace and Reva, Two Multifamily Towers in the Heart of National Landing Totaling 808 Units

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Completed $373.7 Million of Dispositions at Attractive Valuations

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Achieved Strong Operating Performance Despite Macroeconomic Headwinds

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Realized G&A Savings of Approximately 8% in 2024, for a Total of Approximately 34% Savings since 2019

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Addressed Over $620 million of Debt in Challenging Market Conditions

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Continued as a Market Leader in Sustainability and Housing Affordability

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Capital Allocation

Our capital allocation strategy is grounded in our primary goal of maximizing long-term NAV per share. We focus on opportunistically monetizing our most liquid assets where we can achieve premiums to NAV and investing where we see the greatest potential for NAV per share growth. Share repurchases continue to be our most accretive use of capital, and as long as our share price fails to reflect NAV, we intend to take advantage of the arbitrage. Our capital allocation strategy has resulted in a significantly lower share count and a more highly concentrated portfolio in National Landing, where we continue to see opportunity for outsized growth.

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During the fourth quarter, we sold 2101 L Street, a 375,000 square-foot office building in Washington, DC’s Central Business District, for $110.1 million. During 2024, we closed $373.7 million of dispositions, representing an average capitalization rate of 5.4%. Additionally, we entered into a firm contract, subject to customary closing conditions, to sell 8001 Woodmont, a 322-unit multifamily asset in Bethesda, MD. It is our only multifamily asset in Bethesda, a submarket where we see more tempered rent growth long term, but it garnered unexpectedly strong pricing and buyer pool depth. We expect the sale to close during the first quarter of 2025.

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Given the substantial discount of our share price relative to NAV, we have allocated a significant amount of our capital to share repurchases. Our strong balance sheet and substantial liquidity enable us to take advantage of this disparity. Over the course of 2024, we repurchased 10.9 million shares at an average price of $15.60, amounting to $170.7 million. Since launching our share repurchase program in 2020, we have repurchased 58.9 million shares,

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which is almost 40% of the shares and OP units outstanding as of December 31, 2019, at an average price of $19.70, totaling $1.2 billion.

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We anticipate that new investments, including share repurchases, developments, and acquisitions, will primarily be financed through asset recycling, either in advance or retrospectively. We continue to seek opportunities to dispose of additional assets that are most liquid in today’s capital markets at values at or above NAV. In a climate where office valuations are near cyclical lows with limited liquidity, the most efficiently priced source of capital will likely come from multifamily assets, specifically in DC where our holdings are less concentrated.

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In parallel, we continue to advance the entitlement and design of our nearly 9.0 million square-foot Development Pipeline, substantially all of which we expect will be entitled by the end of 2025. During the fourth quarter, we submitted entitlement applications for 2100 and 2200 Crystal Drive, two former office assets we took out of service for conversion to hospitality and multifamily uses. Additionally, we submitted new entitlement applications for Potomac Yard Landbays G and H, which we believe reflect more viable business plans that will generate greater land value in the current environment. Once construction costs and interest rates normalize, we will be well-positioned with a compelling portfolio of shovel-ready growth opportunities to capitalize through land sales, ground leases, and joint ventures.

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We have seen signs of improvement in the private capital markets, particularly in the multifamily space. Despite a flattening forward SOFR curve and an expectation of fewer rate cuts through 2025, strong investor interest in DC metro multifamily was on display through the end of 2024. As reported by Berkadia, transaction volume was up 86.3% from 2023 to $5.7 billion – an increase and a total that would have represented a pre-2019 record. The lion’s share of that activity, $3.5 billion, was in Northern Virginia, signaling that market’s particular appeal to investors, although the District also posted significant growth in volume. In-place cap rates were also typically in the high 4.0% to mid-5.0% range, which while reflecting the rate environment, is also rapidly approaching “normal” as investors underwrite significant rent growth. The majority of these transactions were for relatively new, amenity-rich complexes in walkable urban neighborhoods across the DMV, pointing to investor interest returning in these markets. While investors are primarily focused on acquisitions, we are starting to see increased interest in multifamily development in the same submarkets, which may lead to greater opportunities to monetize portions of our development pipeline.

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Financial and Operating Metrics

For the three months ended December 31, 2024, we reported Core FFO attributable to common shares of $11.6 million, or $0.14 per diluted share. Annualized NOI was in line with last quarter, totaling $267.6 million, excluding assets that were sold or taken out of service. Our multifamily portfolio ended the quarter at 92.9% leased and 91.0% occupied, and our In-Service multifamily portfolio was 96.2% leased and 94.8% occupied. Our office portfolio ended the quarter at 78.6% leased and 76.5% occupied. Our portfolio generated negative 6.5% and positive 1.3% Same Store NOI growth for the three months and year ended December 31, 2024.

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As of December 31, 2024, our Net Debt to Annualized Adjusted EBITDA was 11.7x. Based on the previously disclosed known and expected tenant vacates and an increase in interest expense as we complete our remaining under-construction asset and cease capitalizing interest on it, we expect continued decreases in our earnings and increases in our Net Debt to Annualized Adjusted EBITDA during the first half of 2025. We expect the impacts on these metrics will be lessened by: (i) additional income from the delivery and stabilization of newly constructed multifamily assets (The Grace, Reva, The Zoe, and Valen); (ii) rent growth in our existing multifamily portfolio given the limited multifamily supply pipeline in the DC metro area; and (iii) office demand in National Landing from prospective tenants seeking proximity to the Pentagon, local tech talent, and the placemaking attractions we have delivered.

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Our floating rate exposure remains low, with 91.4% of our debt fixed or hedged as of the end of the fourth quarter, after accounting for in-place interest rate swaps and caps. The floating rate exposure is tied to our revolving credit facility and assets where the business plan warrants preserving flexibility. We continue to be well positioned with respect to our near-term debt maturities. This year we have $340.7 million of debt maturing, representing less than 13% of total debt; approximately 90% is secured by a multifamily asset, an asset class which has proven to be readily financeable, even in challenging debt capital markets. Our remaining debt has a weighted average maturity of 3.7 years, after adjusting for by-right extension options. Our primarily non-recourse asset-level financing strategy continues to be most valuable in an environment like today, providing a floor on our downside risk.

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Operating Portfolio

Multifamily Trends

Our In-Service multifamily portfolio ended the quarter at 96.2% leased, down 0.8% quarter over quarter, and 94.8% occupied, down 0.9% quarter over quarter due to seasonally low demand. In our Same Store multifamily portfolio, we increased effective rents by 0.8% for new leases and 4.6% upon renewal, largely driven by our assets in National Landing, while achieving a 60.0% renewal rate. Our multifamily portfolio Same Store NOI for the three months ended December 31, 2024 decreased 3.9%, primarily driven by higher repair and maintenance expenses and lower occupancy, partially offset by higher rents. Our multifamily portfolio generated 3.9% Same Store NOI growth for the year ended December 31, 2024, driven primarily by 4.5% revenue growth.

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We continue making excellent progress leasing The Grace and Reva. Move-ins began in February 2024, and the pace of leasing continues to exceed all five of our other multifamily deliveries since 2017. As of year end, The Grace and Reva were 68.6% leased. Notably, the residents of The Grace and Reva primarily work in three key industries that constitute a large part of the office tenant base in National Landing: professional services, defense, and technology. Amazon's recent announcement mandating a return to a five-day in-office workweek underscores a broader trend among employers toward increased in-person work. This mandate is particularly beneficial for our new multifamily assets in National Landing, as it is likely to attract Amazon employees to the submarket. During the fourth quarter, we saw an approximately 35% increase in Amazonians at The Grace and Reva, and Amazonians comprised 24% of applications in January compared to approximately 16% in the fourth quarter and less than 8% prior to the return-to-office announcement. We believe that the amenity-rich environment we have developed in National Landing, along with the short commutes these buildings provide, are key factors contributing to their successful leasing performance thus far.

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DC Metro Multifamily Trends (based on CoStar, Berkadia, and Apartment List data)

Against the backdrop of the uncertainty of a presidential transition, the DC metro area apartment market continues to thrive. Occupancy ended the year at 93.8% while rents grew by 3.1% compared to growth in other gateway markets of 0.7%. We saw only two new starts during the fourth quarter. Units under construction as a share of inventory declined further to only 2.2%, positioning the DC metro area for significant rent growth – some of which we are already starting to experience as recent deliveries are being leased up. National Landing’s rent growth stands out over the past two years with a Berkadia analysis ranking it the top submarket in the entire DC metro region for 2022 – 2024 rent growth (18.0%), largely driven by its amenity transformation and economic growth. We remain optimistic that the limited for-rent and for-sale inventory (prolonged by a flatter forward rate curve) and positive employment and population growth trends will drive growth in the multifamily market. While moves by the new Administration to shrink the size of the federal workforce may present a regional headwind, they represent only a portion of demand for our portfolio of largely new assets with a diverse base of residents, the majority of whom are concentrated in the private sector.

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Office Trends

Our office portfolio ended the quarter at 78.6% leased, down 2.1% quarter over quarter, and 76.5% occupied, down 2.6% quarter over quarter. In the fourth quarter, we executed 118,000 square feet of leases with a weighted average lease term of 8.5 years. For second generation leases, the rental rate mark-to-market was negative 3.0%.

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Over the last three years, we averaged approximately 150,000 square feet of new leasing per year in National Landing, excluding Amazon leases, and in 2024 we executed 320,000 square feet of new leases. Our prospect pipeline remains stronger than it has been in years. Leasing in National Landing continues to be driven primarily by office users who fall into three categories: (i) government contractors seeking growth and expansion; (ii) companies who need SCIF/secure facility space; and (iii) technology-related new tenants largely attracted by the recent delivery of our placemaking interventions. Further, we continue to see strong demand from defense and technology tenants for office space in National Landing, with approximately 82% of our 2024 leasing activity coming from tenants in those industries. Our 2024 office retention rate in National Landing was approximately 40%, well below the approximately 70% average retention rate we’ve seen in the recent past. We have very modest lease roll over the next five years, averaging approximately 6.5% per year, and we expect our retention rate to improve given approximately 70% of our remaining tenancy in National Landing comprises defense-tech tenants.

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Our leasing efforts are focused on buildings with long-term potential, concentrating occupancy in areas of National Landing that we have enhanced through our placemaking initiatives and that are accessible via multi-modal transportation. As such, we have taken out of service 1800 South Bell Street, 2100 Crystal Drive, and 2200 Crystal Drive as we plan to redevelop or convert these assets to other uses. Additionally, we plan to take 1901 South Bell Street out of service since we have determined it is no longer a viable office asset as is, and we are studying redevelopment and conversion opportunities. In total, we will have taken over 1.0 million square feet of office space out of service in National Landing. Our rationale for reducing competitive stock in National Landing remains the same: to help foster a healthier long-term office market while repurposing older, underutilized buildings for redevelopment or conversion to multifamily housing, hospitality, or other complimentary uses that will support a vibrant mixed-use environment.

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Northern Virginia Office Trends (based on JLL and CBRE data)

Although the Northern Virginia market ended the year with JLL quoting negative net absorption overall (-2.0 million square feet, or 1.4% of inventory) we continue to believe that the market has largely found its bottom with the bulk of any federal reductions likely coming in the District where more civilian agencies are based. Leasing activity, as measured by CBRE, shows an 18% improvement over 2023 to 8.2 million square feet. Similarly, at year end, JLL expected large block (50,000+ square feet) leasing levels for 2024 to surpass 2023 given deals in progress. Leasing activity has swung hard to favor renewals (~60%) – a result of the high cost of new buildouts and the near total cessation of new development activity. JLL also reports that trophy vacancy in Northern Virginia is 13.5% on a direct basis versus 23.2% for the overall market, signaling a significant reduction in available first-generation space. This lack of available new space inures to the benefit of renewals and, when coupled with an increasing slate of office buildings identified for demolition or conversion, speaks to the beginnings of a reduction in supply across the board. Contraction activity is also becoming more limited, with CBRE reporting only two of the top 10 deals of the quarter representing contractions. The two largest deals of the quarter were both renewals at flat square footages representing nearly 500,000 square feet of space. With many companies driving toward more stringent return-to-office policies and Northern Virginia accounting for the lion’s share of employment and government contract spend in the region, we believe that these trends all augur for a recovery off the bottom.

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The entire region’s office market, however, must be considered against the backdrop of a rapidly evolving and uncertain federal environment. The federal hiring freeze, (which notably exempts national security employees), the federal employee buyout offers, and the latest executive order calling for a reduction-in-force and limits to backfilling

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attrition all represent headwinds to the regional economy. At the same time, however, the Administration’s immediate call to bring the federal workforce back to the office comes with benefits. The Government Accountability Office noted that in 2023, 17 of the 24 largest agencies used just 25% of their space. Even if the new Administration’s posture toward federal workers caused a 25% overall reduction of the workforce, it would still benefit the region to bring the remaining 75% back to the office full-time – particularly in DC which has borne the brunt of low federal occupancy. While considerations like union contracts and legal challenges may blunt some of the immediate impacts, we believe returning to in-person work will help restore vibrancy to the city and could even drive some net new office demand.

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* * *

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At the Nareit conference in November 2021 many channeled the late, great Sam Zell with “stay alive ‘till ‘25”. 2025 is here, and we are not just alive, we are thriving. After several extremely busy years, we are now completing the first phases of our dramatic transformation of National Landing with even more enhancements on the brink of delivery. We have right-sized our office business and believe the next few years will usher in a period of strong recovery from the bottom in that sector, as evidenced by our best leasing year since 2019. We have delivered new world-class housing, street retail, and amenities that rival any development anywhere in the country. We have allocated capital away from low risk-adjusted return uses into highly accretive share buybacks. I credit our seasoned and dedicated team for the hard work required to accomplish all the above while simultaneously increasing efficiency and cutting G&A by 34% since 2019. While our local landscape has significantly changed and the future is uncertain, it has been and will continue to be in times like these that this team truly earns its keep. And regardless of the challenges ahead, we remain committed to maximizing long-term NAV per share – the North Star that will continue to guide our actions through 2025 and beyond.

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As always, we thank you for your continued trust and confidence.

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Sincerely,

W. Matthew Kelly

Chief Executive Officer

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Section Two – Earnings Release

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Earnings Release

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CONTACT

Kevin Connolly

Executive Vice President, Portfolio Management & Investor Relations

(240) 333-3837

[email protected]

JBG SMITH ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 RESULTS

Bethesda, MD (February 18, 2025) - JBG SMITH (NYSE: JBGS), a leading owner, operator, and developer of high-quality, mixed-use properties in the Washington, DC market, today filed its Form 10-K for the year ended December 31, 2024 and reported its financial results.

Additional information regarding our results of operations, properties, and tenants can be found in our Fourth Quarter 2024 Investor Package, which is posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in that document.

Fourth Quarter 2024 Highlights

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Operating Portfolio

Development Portfolio

Under-Construction

Development Pipeline

Third-Party Asset Management and Real Estate Services Business

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Balance Sheet

Investing and Financing Activities

Subsequent to December 31, 2024

Dividends

About JBG SMITH

JBG SMITH owns, operates and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, DC, most notably National Landing, that we believe have long-term growth potential and appeal to residential, office and retail tenants. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, highly amenitized, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's headquarters; Virginia Tech's $1 billion Innovation Campus; proximity to the Pentagon; and our placemaking initiatives and public infrastructure improvements. JBG SMITH's dynamic portfolio currently comprises 12.5 million square feet of multifamily, office and retail assets at share, 98% of which are Metro-served. It also maintains a development pipeline encompassing 8.9 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually. For more information on JBG SMITH please visit www.jbgsmith.com.

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Forward-Looking Statements

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

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

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

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presents our economic interests in the partially owned entities, provides investors valuable information regarding a significant component of our portfolio, its composition, performance and capitalization.

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

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

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

Non-GAAP Financial Measures

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

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre") and "Adjusted EBITDA" are non-GAAP financial measures. EBITDA and EBITDAre are used by management as supplemental operating performance measures, which we believe help investors and lenders meaningfully evaluate and compare our operating performance from period-to-period by removing from our operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps and caps) and certain non-cash expenses (primarily depreciation and amortization

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expense on our assets). EBITDAre is computed in accordance with the definition established by the National Association of Real Estate Investment Trusts ("Nareit"). Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expense, gains (losses) on sales of real estate and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. EBITDA and EBITDAre are not substitutes for net income (loss) (computed in accordance with GAAP) and may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments, income from investments, business interruption insurance proceeds, litigation settlement proceeds and share-based compensation expense related to the Formation Transaction and special equity awards. We believe that adjusting such items not considered part of our comparable operations, provides a meaningful measure to evaluate and compare our performance from period-to-period.

Because EBITDA, EBITDAre and Adjusted EBITDA have limitations as analytical tools, we use EBITDA, EBITDAre and Adjusted EBITDA to supplement GAAP financial measures. Additionally, we believe that users of these measures should consider EBITDA, EBITDAre and Adjusted EBITDA in conjunction with net income (loss) and other GAAP measures in understanding our operating results.

Funds from Operations ("FFO"), "Core FFO" and Funds Available for Distribution ("FAD") are non-GAAP financial measures. FFO is computed in accordance with the definition established by Nareit in the Nareit FFO White Paper - 2018 Restatement. Nareit defines FFO as net income (loss) (computed in accordance with GAAP), excluding depreciation and amortization expense related to real estate, gains (losses) from the sale of certain real estate assets, gains (losses) from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

Core FFO represents FFO adjusted to exclude items which we believe are not representative of ongoing operating results, such as Transaction and Other Costs, impairment write-downs of non-depreciable real estate, gain (loss) on the extinguishment of debt, earnings (losses) and distributions in excess of our investment in unconsolidated real estate ventures, share-based compensation expense related to the Formation Transaction and special equity awards, lease liability adjustments, income from investments, business interruption insurance proceeds, litigation settlement proceeds, amortization of the management contracts intangible and the mark-to-market of derivative instruments, including our share of such adjustments for unconsolidated real estate ventures.

FAD represents Core FFO adjusted for recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption (payments) refunds, recurring share-based compensation expense, accretion of acquired below-market leases, net of amortization of acquired above-market leases, amortization of debt issuance costs and other non-cash income and charges, including our share of such adjustments for unconsolidated real estate ventures. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

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

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

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

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measure of liquidity or our ability to make distributions. Annualized NOI represents NOI for the three months ended December 31, 2024 multiplied by four. Management believes Annualized NOI provides useful information in understanding our financial performance over a 12-month period, however, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12-month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this earnings release. There can be no assurance that the Annualized NOI shown will reflect our actual results of operations over any 12-month period.

Definitions

"Development Pipeline" refers to assets that have the potential to commence construction subject to receipt of full entitlements, completion of design and/or market conditions where we (i) own land or control the land through a ground lease or (ii) are under a long-term conditional contract to purchase, or enter into, a leasehold interest with respect to land.

"Estimated Potential Development Density" reflects management's estimate of developable gross square feet based on our current business plans with respect to real estate owned or controlled as of December 31, 2024. Our current business plans may contemplate development of less than the maximum potential development density for individual assets. As market conditions change, our business plans, and therefore, the Estimated Potential Development Density, could change accordingly. Given timing, zoning requirements and other factors, we make no assurance that Estimated Potential Development Density amounts will become actual density to the extent we complete development of assets for which we have made such estimates.

"First-generation" is a lease on space that had been vacant for at least nine months or a lease on newly delivered space.

"Formation Transaction" refers collectively to the spin-off on July 17, 2017 of substantially all of the assets and liabilities of Vornado Realty Trust's Washington, DC segment, which operated as Vornado / Charles E. Smith, and the acquisition of the management business and certain assets and liabilities of The JBG Companies.

"Free Rent" means the amount of base rent and tenant reimbursements that are abated according to the applicable lease agreement(s).

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

"In-Service" refers to multifamily or commercial operating assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of December 31, 2024.

"Non-Same Store" refers to all operating assets excluded from the Same Store pool.

"Same Store" refers to the pool of assets that were In-Service for the entirety of both periods being compared, excluding assets for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared.

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

"Transaction and Other Costs" include costs related to completed, potential and pursued transactions, demolition costs, and severance and other costs.

"Under-Construction" refers to assets that were under construction during the three months ended December 31, 2024.

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CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

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Note: For complete financial statements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2024.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

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Note: For complete financial statements, please refer to our Annual Report on Form 10-K for the year ended December 31, 2024.

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

(Unaudited)

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

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

(Unaudited)

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See footnotes on page 15.

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

(Unaudited)

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NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)