JBG SMITH Properties

Previous wording

Certain statements contained herein 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 future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. Forward-looking statements include but are not limited to our current expectations regarding the performance of our business, our financial results, our liquidity and capital resources, including the impacts and ultimate outcome of the Wardman Park litigation and our potential need to post bonds or other forms of surety to support our legal remedies in connection with such litigation. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this Quarterly Report on Form 10-Q. 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. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC") on February 17, 2026 ("Annual Report"), as such factors may be updated from time to time in our periodic filings with the SEC, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q and our Annual Report.

Current wording

Certain statements contained herein 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 future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. Forward-looking statements include but are not limited to our current expectations regarding the performance of our business, our financial results, our liquidity and capital resources, including the impacts and ultimate outcome of the Wardman Tower litigation and our potential need to post bonds or other forms of surety to support our legal remedies in connection with such litigation. You can find many of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this Quarterly Report on Form 10-Q. 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. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC") on February 17, 2026 ("Annual Report"), as such factors may be updated from time to time in our periodic filings with the SEC, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Quarterly Report on Form 10-Q and our Annual Report.

Previous wording

For these forward-looking 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, which speak only as of the date of this Quarterly Report on Form 10-Q. 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

Current wording

For these forward-looking 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, which speak only as of the date of this Quarterly Report on Form 10-Q. 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 of this Quarterly Report on Form 10-Q.

Previous wording

References to our financial statements refer to our unaudited condensed consolidated financial statements as of June 30, 2026 and December 31, 2025, and for the three and six months ended June 30, 2026 and 2025. References to our balance sheets refer to our condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025. References to our statements of operations refer to our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025. References to our statements of cash flows refer to our condensed consolidated statements of cash flows for the six months ended June 30, 2026 and 2025.

Current wording

References to our financial statements refer to our unaudited condensed consolidated financial statements as of September 30, 2026 and December 31, 2025, and for the three and nine months ended September 30, 2026 and 2025. References to our balance sheets refer to our condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025. References to our statements of operations refer to our condensed consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025. References to our statements of cash flows refer to our condensed consolidated statements of cash flows for the nine months ended September 30, 2026 and 2025.

Previous wording

share) and one wholly owned land asset for which we are the ground lessor. Additionally, we had one under-construction multifamily asset with 195 units (59 units at our share), and our development pipeline, which consists of owned and entitled land on which we have the potential to commence construction subject to completion of design and/or market conditions, totaled 4.8 million square feet (3.5 million square feet at our share) of estimated potential development density. Our development pipeline excludes unentitled land parcels and land parcels controlled through an option agreement.

Current wording

As of September 30, 2026, our Operating Portfolio consisted of 38 operating assets comprising 15 multifamily assets totaling 6,519 units (6,333 units at our share), 22 commercial assets totaling 7.3 million square feet (6.7 million square feet at our share) and one wholly owned land asset for which we are the ground lessor. Additionally, we had one under-construction multifamily asset with 195 units (59 units at our share), and our development pipeline, which consists of owned and entitled land on which we have the potential to commence construction subject to completion of design and/or market conditions, totaled 4.8 million square feet (3.5 million square feet at our share) of estimated potential development density. Our development pipeline excludes unentitled land parcels.

Previous wording

Our capital allocation strategy remains focused on enhancing long-term shareholder value and positioning our portfolio for sustained long-term net asset value ("NAV") per share growth. Drawing on our deep expertise in mixed-use, urban infill real estate, we have consistently rotated across asset classes based on relative value, cost of capital and risk-adjusted return potential. In today’s market environment, we believe that distressed office investment opportunities offer compelling economics. Consequently, we are actively pursuing new growth opportunities that align with our strategy and leverage our competitive strengths as a mixed-use owner, operator and developer. We expect to fund growth opportunities through a combination of asset sales and private equity joint ventures. During the six months ended June 30, 2026, we sold a development parcel, and we sold a 70.0% interest in 2200 Crystal Drive to an unconsolidated real estate venture for total gross sales proceeds of $60.6 million, and we recapitalized Tysons Dulles Plaza by selling a 50.0% noncontrolling interest in a consolidated real estate venture. These real estate ventures further our goal of attracting private capital partners to scale and diversify our distressed office investment strategy and fund the construction of multifamily assets in our development pipeline while also enhancing the efficiency of our platform with incremental fee revenue and potential carried interest income.

Current wording

Our capital allocation strategy remains focused on enhancing long-term shareholder value and positioning our portfolio for sustained long-term net asset value ("NAV") per share growth. Drawing on our deep expertise in mixed-use, urban infill real estate, we have consistently rotated across asset classes based on relative value, cost of capital and risk-adjusted return potential. In today’s market environment, we believe that distressed office investment opportunities and share repurchases offer compelling economics. Consequently, we are actively pursuing new growth opportunities that align with our strategy and leverage our competitive strengths as a mixed-use owner, operator and developer. We expect to fund growth opportunities and share repurchases through a combination of asset sales and joint ventures. During the nine months ended September 30, 2026: we sold two development parcels; we sold a 70.0% interest in 2200 Crystal Drive to an unconsolidated real estate venture; and we recapitalized Tysons Dulles Plaza by selling a 50.0% noncontrolling interest in a consolidated real estate venture. Additionally, in October 2026, we recapitalized 800 North Glebe Road by selling a 90.0% interest in an unconsolidated real estate venture, and we admitted additional partners to the Dulles View real estate venture whose indirect ownership interest in the real estate venture equals 30.0%. These joint ventures further our strategy of attracting third-party capital partners to expand and diversify our office investment platform while enhancing the efficiency of our business through incremental fee revenue and potential carried interest opportunities. More broadly, they demonstrate our ability to

Previous wording

In 2026, we began to see some modest improvement in our multifamily portfolio leasing, which had experienced softness largely as a result of job losses primarily in the District of Columbia in 2025 due to federal government spending cuts and a hiring freeze. Our same store multifamily portfolio was 94.3% leased as of June 30, 2026, up 80 basis points as compared to March 31, 2026. Our same store multifamily portfolio was 92.0% occupied as of June 30, 2026, flat as compared to March 31, 2026. During the second quarter of 2026, effective rents, which represent the average change in rental rates versus expiring rental rates net of concessions, decreased by 9.5% for new leases and increased by 2.8% upon renewal while achieving a 55.9% renewal rate across our portfolio. We continue to make progress leasing our recently completed assets — The Grace and Reva were 90.4% leased, and The Zoe and Valen were 58.8% leased as of June 30, 2026.

Current wording

During this summer’s peak leasing season, our same store multifamily portfolio re-stabilized and demonstrated encouraging demand even after the economic disruption the region experienced over the past year as a result of job losses primarily in the District of Columbia in 2025 due to federal government spending cuts and a hiring freeze. Across the D.C. metro region, and especially in Northern Virginia, multifamily fundamentals continue to benefit from historically low levels of new supply and the region’s long-term demand drivers, including growing investment in the defense, intelligence, and technology sectors. Our same store multifamily portfolio was 94.4% leased as of September 30, 2026, up 90 basis points compared to June 30, 2026. Our same store multifamily portfolio was 93.1% occupied as of September 30, 2026, up 270 basis points compared to June 30, 2026. During the third quarter of 2026, effective rents, which represent the average change in rental rates versus expiring rental rates net of concessions, decreased by 9.6% for new leases and increased by 2.7% upon renewal while achieving a 56.8% renewal rate across our portfolio. We continue to make progress leasing our recently completed assets — The Grace and Reva were 94.7% leased, and The Zoe and Valen were 81.1% leased as of September 30, 2026.

Previous wording

buildings. We entitled 2100 Crystal Drive for conversion into a 345-key, dual-branded hotel before selling the asset to a hotel developer. We recapitalized and commenced construction on the conversion of 2200 Crystal Drive into a 195-unit multifamily asset. During the second quarter we received entitlement approval to convert 1800 and 1901 South Bell Street into multifamily, advancing the next phase of inventory reduction and repositioning within the submarket. Our leasing efforts continue to focus on buildings with long-term potential, concentrating occupancy in areas of National Landing that are accessible via multi-modal transportation and that we have enhanced through our placemaking interventions, including the recent delivery of our new office amenity hub at 2011 Crystal Drive.

Current wording

Our office portfolio was 78.5% leased as of September 30, 2026, an increase of 50 basis points compared to June 30, 2026. Our office portfolio was 76.8% occupied as of September 30, 2026, an increase of 140 basis points compared to June 30, 2026. During the three months ended September 30, 2026, we executed 193,000 square feet of office leases at our share. Demand for space in National Landing and throughout Northern Virginia remains strong, particularly among defense technology, cybersecurity, artificial intelligence and government contracting companies. Our leasing pipeline continues to strengthen and increasingly reflects the growth of these sectors, with tenants seeking proximity to the Pentagon, secure facilities, technical talent and the highly amenitized environment we have created. To support a healthier long-term office market in National Landing, we have reduced our office inventory by more than 25% since our formation by repurposing older, underutilized office buildings for redevelopment or conversion to multifamily housing, hospitality and other complementary uses that create a vibrant mixed-use environment. Over the past year, we expanded this strategy through adaptive reuse and conversion of four obsolete office buildings. We entitled 2100 Crystal Drive for conversion into a 345-key, dual-branded hotel before selling the asset to a hotel developer. We recapitalized and commenced construction on the conversion of 2200 Crystal Drive into a 195-unit multifamily asset. We recently received entitlement approval to convert 1800 and 1901 South Bell Street into multifamily, advancing the next phase of inventory reduction and repositioning within the submarket. Our leasing efforts continue to focus on buildings with long-term potential, concentrating occupancy in areas of National Landing that are accessible via multi-modal transportation and that we have enhanced through our placemaking interventions, including the recent delivery of our new office amenity hub at 2011 Crystal Drive.

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Key highlights for the three and six months ended June 30, 2026 included:

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Key highlights for the three and nine months ended September 30, 2026 included:

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Additionally, investing and financing activity during the six months ended June 30, 2026 included:

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Additionally, investing and financing activity during the nine months ended September 30, 2026 included:

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Our Annual Report contains a description of our critical accounting estimates, including asset acquisitions, real estate, investments in real estate ventures and revenue recognition. There have been no significant changes to our policies during the six months ended June 30, 2026.

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Our Annual Report contains a description of our critical accounting estimates, including asset acquisitions, real estate, investments in real estate ventures and revenue recognition. There have been no significant changes to our policies during the nine months ended September 30, 2026.

Previous wording

In 2026, we sold an interest in 2200 Crystal Drive to an unconsolidated real estate venture. In 2025, we sold 8001 Woodmont, WestEnd25 and The Batley. We collectively refer to these assets as the "Disposed Properties" in the discussion below. In 2025, we acquired Tysons Dulles Plaza, which was recapitalized in April 2026 through the formation of a consolidated real estate venture, and the remaining 45.0% interest in an unconsolidated real estate venture that owned 1101 17th Street. In 2025, we began leasing The Zoe and Valen, and in 2024, we began leasing The Grace and Reva.

Current wording

In 2026, we sold two development parcels and an interest in 2200 Crystal Drive to an unconsolidated real estate venture. In 2025, we sold 8001 Woodmont, WestEnd25 and The Batley. We collectively refer to these assets as the "Disposed Properties" in the discussion below. In 2025, we acquired Tysons Dulles Plaza, which was recapitalized in April 2026 through the formation of a consolidated real estate venture, and the remaining 45.0% interest in an unconsolidated real estate venture that owned 1101 17th Street. In 2025, we began leasing The Zoe and Valen, and in 2024, we began leasing The Grace and Reva.

Previous wording

Property rental revenue increased by approximately $123,000, or 0.1%, to $106.6 million in 2026 from $106.5 million in 2025. The increase was primarily due to a $2.9 million increase in revenue from our commercial assets and a $1.1 million increase in other revenue, partially offset by a $3.9 million decrease in revenue from our multifamily assets. The increase in revenue from our commercial assets was primarily due to a $3.5 million increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street. The decrease in revenue from our multifamily assets was primarily

Current wording

Property rental revenue increased by approximately $4.1 million, or 3.9%, to $108.1 million in 2026 from $104.0 million in 2025. The increase was primarily due to a $3.1 million increase in revenue from our commercial assets and a $2.2 million increase in revenue from our multifamily assets, partially offset by a $1.2 million decrease in other revenue. The increase in revenue from our commercial assets was primarily due to a $2.1 million increase related to the consolidation of 1101 17th Street. The increase in revenue from our multifamily assets was primarily due to a $4.1 million increase related to the continued lease up of The Grace, Reva, The Zoe and Valen, partially offset by a $791,000 decrease due to higher concessions across the portfolio, a $568,000 decrease due to the conversion of 900 W Street from a short-term rental property to a traditional multifamily asset, and a $434,000 decrease related to the Disposed Properties.

Previous wording

Third-party real estate services revenue, including reimbursements, increased by approximately $4.5 million, or 15.1%, to $34.2 million in 2026 from $29.7 million in 2025. The increase was primarily due to a $4.4 million increase in reimbursement revenue.

Current wording

Third-party real estate services revenue, including reimbursements, increased by approximately $3.6 million, or 24.2%, to $18.3 million in 2026 from $14.7 million in 2025. The increase was primarily due to a $2.4 million increase in reimbursement revenue and a $507,000 increase in other service revenue.

Previous wording

Depreciation and amortization expense decreased by approximately $2.8 million, or 5.8%, to $44.8 million in 2026 from $47.6 million in 2025. The decrease was primarily due to (i) a $2.6 million decrease related to the Disposed Properties, (ii) a $1.4 million decrease related to 2011 Crystal Drive primarily due to the acceleration of depreciation for certain assets associated with an early termination in 2025 and (iii) a $1.4 million decrease related to certain assets being either fully depreciated or written off in 2025. The decrease in depreciation and amortization expense was partially offset by (iv) a $2.1 million increase as Valen was placed into service and (v) a $683,000 increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street.

Current wording

Depreciation and amortization expense decreased by approximately $3.6 million, or 7.4%, to $44.6 million in 2026 from $48.2 million in 2025. The decrease was primarily due to (i) a $3.8 million decrease related to certain assets being either fully depreciated or written off in 2025 and (ii) an $871,000 decrease related to the Disposed Properties, partially offset by (iii) a $766,000 increase as Valen was placed into service.

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Real estate taxes expense decreased by approximately $342,000, or 2.7%, to $12.3 million in 2026 from $12.7 million in 2025. The decrease was primarily due to a $782,000 decrease related to the Disposed Properties and lower property tax assessments for certain assets, partially offset by a $553,000 increase related to The Zoe and Valen, which were placed into service, and a $279,000 increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street.

Current wording

Real estate taxes expense decreased by approximately $1.9 million, or 15.9%, to $10.3 million in 2026 from $12.3 million in 2025. The decrease was primarily due to a $452,000 decrease related to the Disposed Properties and lower property tax assessments for certain assets.

Previous wording

General and administrative expense: corporate and other decreased by approximately $1.3 million, or 7.9%, to $15.4 million in 2026 from $16.7 million in 2025. The decrease was primarily due to a decrease in professional fees and other overhead expenses, partially offset by a decrease in capitalized payroll and higher compensation expenses.

Current wording

General and administrative expense: corporate and other decreased by approximately $668,000, or 5.1%, to $12.5 million in 2026 from $13.2 million in 2025. The decrease was primarily due to lower compensation expenses, partially offset by a decrease in capitalized payroll.

Previous wording

General and administrative expense: third-party real estate services increased by approximately $2.8 million, or 20.7%, to $16.4 million in 2026 from $13.6 million in 2025. The increase was primarily due to higher third-party reimbursable expenses of $2.1 million and higher compensation expenses.

Current wording

General and administrative expense: third-party real estate services increased by approximately $2.4 million, or 16.9%, to $16.4 million in 2026 from $14.1 million in 2025. The increase was primarily due to an increase in third-party reimbursable expenses.

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Interest expense increased by approximately $458,000, or 1.3%, to $36.0 million in 2026 from $35.6 million in 2025. The increase was primarily due to (i) a $2.0 million decrease in capitalized interest primarily related to Valen, which was placed into service, (ii) a $496,000 increase related to the consolidation of 1101 17th Street, (iii) a $367,000 increase due to draws on the mortgage loan related to The Zoe and Valen, and (iv) a $248,000 increase due to a new mortgage loan related to Tysons Dulles Plaza. The increase in interest expense was partially offset by (v) a $978,000 decrease related to mortgage loans on the Disposed Properties, (vi) an $865,000 decrease related to variable rate mortgage loans and (vii) a $748,000 decrease due to lower interest expense primarily on our revolving credit facility.

Current wording

Interest expense increased by approximately $2.1 million, or 5.9%, to $36.8 million in 2026 from $34.8 million in 2025. The increase was primarily due to (i) a $1.2 million decrease in capitalized interest primarily related to Valen, which was placed into service, (ii) a $1.0 million increase due to higher interest expense on our revolving credit facility and term loans, (iii) a $349,000 increase related to the consolidation of 1101 17th Street and (iv) a $367,000 increase due to a new mortgage loan on Tysons Dulles Plaza. The increase in interest expense was partially offset by (v) a $674,000 decrease related to variable rate mortgage loans.

Previous wording

Impairment loss of $44.1 million in 2026 was related to the impairment of capitalized costs associated with a pre-development project whose future development was determined to no longer be probable as of June 30, 2026. Impairment loss of $31.8 million in 2025 was related to The Batley, which was written down to its estimated fair value.

Current wording

Impairment loss of $69.2 million in 2026 was related to 800 North Glebe Road, which was written down to its estimated fair value. Impairment loss of $4.8 million in 2025 was related to 2200 Crystal Drive, which was written down to its estimated fair value.

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The following table summarizes certain line items from our statements of operations that we believe are important in understanding our operations and/or those items which significantly changed in the six months ended June 30, 2026 compared to the same period in 2025:

Current wording

The following table summarizes certain line items from our statements of operations that we believe are important in understanding our operations and/or those items which significantly changed in the nine months ended September 30, 2026 compared to the same period in 2025:

Previous wording

Property rental revenue increased by approximately $4.5 million, or 2.2%, to $212.5 million in 2026 from $208.0 million in 2025. The increase was primarily due to a $15.6 million increase in revenue from our commercial assets, partially offset by a $9.2 million decrease in revenue from our multifamily assets and a $1.9 million decrease in other revenue. The increase in revenue from our commercial assets was primarily due to a $9.2 million increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street, and a $6.9 million increase related to 2011 Crystal Drive and 1550 Crystal Drive due to the acceleration of lease incentives and deferred rent, as well as the recognition of lease termination revenue, associated with early terminations. The decrease in revenue from our multifamily assets was primarily due to a $16.0 million decrease related to the Disposed Properties and lower occupancy primarily at RiverHouse Apartments, partially offset by an $8.2 million increase related to the continued lease up of The Grace, Reva, The Zoe and Valen.

Current wording

Property rental revenue increased by approximately $8.6 million, or 2.8%, to $320.6 million in 2026 from $312.0 million in 2025. The increase was primarily due to an $18.5 million increase in revenue from our commercial assets, partially offset by a $6.9 million decrease in revenue from our multifamily assets and a $3.0 million decrease in other revenue. The increase in revenue from our commercial assets was primarily due to a $10.9 million increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street, and a $4.4 million increase related to 2011 Crystal Drive and 1550 Crystal Drive due to the acceleration of lease incentives and deferred rent, as well as the recognition of lease termination revenue associated with early terminations, and a $2.8 million increase related to the commencement of leases at 251 18th

Previous wording

Third-party real estate services revenue, including reimbursements, increased by approximately $2.2 million, or 14.8%, to $17.0 million in 2026 from $14.8 million in 2025. The increase was primarily due to a $2.1 million increase in reimbursement revenue.

Current wording

Third-party real estate services revenue, including reimbursements, increased by approximately $8.1 million, or 18.1%, to $52.5 million in 2026 from $44.4 million in 2025. The increase was primarily due to a $6.7 million increase in reimbursement revenue.

Previous wording

Depreciation and amortization expense decreased by approximately $5.1 million, or 5.3%, to $90.1 million in 2026 from $95.1 million in 2025. The decrease was primarily due to (i) a $5.4 million decrease related to the Disposed Properties, (ii) a $3.5 million decrease related to certain assets being either fully depreciated or written off in 2025 and (iii) a $2.9 million decrease related to 2011 Crystal Drive primarily due to the acceleration of depreciation for certain assets associated with an early termination in 2025. The decrease in depreciation and amortization expense was partially offset by (iv) a $4.3 million increase related to The Zoe and Valen, which were placed into service, and (v) a $2.2 million increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street.

Current wording

Depreciation and amortization expense decreased by approximately $8.6 million, or 6.0%, to $134.7 million in 2026 from $143.3 million in 2025. The decrease was primarily due to (i) a $9.8 million decrease related to certain assets being either fully depreciated or written off in 2025 and (ii) a $6.2 million decrease related to the Disposed Properties. The decrease in depreciation and amortization expense was partially offset by (iii) a $5.2 million increase related to The Zoe and Valen, which were placed into service, and (iv) a $2.4 million increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street.

Previous wording

Real estate taxes expense decreased by approximately $468,000, or 1.9%, to $24.4 million in 2026 from $24.8 million in 2025. The decrease was primarily due to a $1.6 million decrease related to the Disposed Properties and lower property tax assessments for certain assets, partially offset by a $1.1 million increase related to The Zoe and Valen, which were placed into service, and an $814,000 increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street.

Current wording

Real estate taxes expense decreased by approximately $2.4 million, or 6.5%, to $34.7 million in 2026 from $37.1 million in 2025. The decrease was primarily due to a $2.1 million decrease related to the Disposed Properties and lower property tax assessments for certain assets, partially offset by a $1.2 million increase related to The Zoe and Valen, which were placed into service, and a $1.0 million increase related to the acquisition of Tysons Dulles Plaza and the consolidation of 1101 17th Street.

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General and administrative expense: corporate and other decreased by approximately $1.6 million, or 4.9%, to $30.7 million in 2026 from $32.3 million in 2025. The decrease was primarily due to a decrease in professional fees and other overhead expenses and lower compensation expenses, partially offset by a decrease in capitalized payroll.

Current wording

General and administrative expense: corporate and other decreased by approximately $2.3 million, or 5.0%, to $43.2 million in 2026 from $45.5 million in 2025. The decrease was primarily due to a decrease in professional fees and other overhead expenses and lower compensation expenses, partially offset by a decrease in capitalized payroll.

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General and administrative expense: third-party real estate services increased by approximately $3.7 million, or 12.6%, to $33.4 million in 2026 from $29.6 million in 2025. The increase was primarily due to higher third-party reimbursable expenses of $4.4 million, partially offset by lower overhead expenses.

Current wording

General and administrative expense: third-party real estate services increased by approximately $6.1 million, or 14.0%, to $49.8 million in 2026 from $43.7 million in 2025. The increase was primarily due to an increase in third-party reimbursable expenses and higher compensation expenses, partially offset by lower overhead expenses.

Previous wording

Transaction and other costs increased by approximately $5.8 million, or 121.3%, to $10.5 million in 2026 from $4.8 million in 2025. The increase was primarily due to (i) a $9.5 million charge, net of insurance recoveries, related to a criminal fraud scheme involving AI-enabled employee impersonation, which led to fraudulently induced wire transfers, partially offset by (ii) a $2.0 million decrease in completed, potential and pursued transaction expenses, and (iii) a $1.4 million decrease in severance and other costs. See Note 12 to the financial statements for additional information.

Current wording

Transaction and other costs increased by approximately $6.2 million, or 118.8%, to $11.5 million in 2026 from $5.3 million in 2025. The increase was primarily due to (i) a $9.5 million charge, net of insurance recoveries, related to a criminal fraud scheme involving AI-enabled employee impersonation, which led to fraudulently induced wire transfers, partially offset by (ii) a $2.0 million decrease in completed, potential and pursued transaction expenses, and (iii) a $1.6 million decrease in severance and other costs. See Note 12 to the financial statements for additional information.

Previous wording

Interest expense increased by approximately $806,000, or 1.1%, to $71.6 million in 2026 from $70.8 million in 2025. The increase was primarily due to (i) a $4.0 million decrease in capitalized interest primarily related to Valen, which was placed into service, (ii) a $1.1 million increase due to higher interest expense on our term loans and revolving credit facility, (iii) a $1.0 million increase related to the consolidation of 1101 17th Street, (iv) a $572,000 increase due to draws on the mortgage loan related to The Zoe and Valen and (v) a $248,000 increase due to a new mortgage loan related to Tysons Dulles Plaza. The increase in interest expense was partially offset by (vi) a $2.7 million decrease related to mortgage loans on the Disposed Properties, (vii) a $2.0 million decrease related to variable rate mortgage loans and (viii) a $1.4 million decrease related to the RiverHouse Apartments refinancing in March 2025.

Current wording

Interest expense increased by approximately $2.9 million, or 2.7%, to $108.4 million in 2026 from $105.6 million in 2025. The increase was primarily due to (i) a $5.2 million decrease in capitalized interest primarily related to Valen, which was placed into service, (ii) a $2.1 million increase due to higher interest expense on our revolving credit facility and term loans, (iii) a $1.4 million increase related to the consolidation of 1101 17th Street, (iv) a $615,000 increase due to a new mortgage loan on Tysons Dulles Plaza and (v) a $415,000 increase due to draws on the mortgage loan on The Zoe and Valen. The

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Gain on the sale of real estate of $20.8 million in 2026 was primarily due to the sale of a development parcel. Gain on the sale of real estate of $42.4 million in 2025 was primarily due to the sale of WestEnd25.

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Gain on the sale of real estate of $20.6 million in 2026 was primarily due to the sale of a development parcel. Gain on the sale of real estate of $47.0 million in 2025 was primarily due to the sale of WestEnd25.

Previous wording

Impairment loss of $45.6 million in 2026 was primarily related to the impairment of capitalized costs associated with a pre-development project whose future development was determined to no longer be probable as of June 30, 2026. Impairment loss of $40.3 million in 2025 was related to The Batley and a development parcel, which were written down to their estimated fair value.

Current wording

Impairment loss of $114.7 million in 2026 was primarily related to 800 North Glebe Road, which was written down to its estimated fair value, and the impairment of capitalized costs associated with a pre-development project whose future development was determined to no longer be probable. Impairment loss of $45.1 million in 2025 was related to The Batley, 2200 Crystal Drive and a development parcel, which were written down to their estimated fair value.

Previous wording

NOI and same store 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 and same store 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 and same store NOI exclude 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. 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 financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions.

Current wording

NOI and same store 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 and same store 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) less operating expenses and ground rent for operating leases, if applicable. NOI and same store NOI exclude 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. 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 financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions.

Previous wording

property is considered to be under construction because it is undergoing significant redevelopment or renovation pursuant to a formal plan or is being repositioned in the market and such renovation or repositioning is expected to have a significant impact on property NOI. A development property or under-construction property is moved to the same store pool once a substantial portion of the growth expected from the development or redevelopment is reflected in both the current and comparable prior year period. Acquisitions are moved into the same store pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment.

Current wording

Information provided on a same store basis includes the results of properties that are owned, operated and in-service for the entirety of both periods being compared, which excludes disposed properties or properties for which significant redevelopment, renovation or repositioning occurred during either of the periods being compared. During the three months ended September 30, 2026, our same store pool increased from 32 properties to 35 properties due to the inclusion of The Grace, Reva and Tysons Dulles Plaza, which were in service the entirety of the comparable periods. During the nine months ended September 30, 2026, our same store pool decreased to 32 properties from 33 properties due to 1831/1861 Wiehle Avenue being taken out of service. While there is judgment surrounding changes in designations, a property is removed from the same store pool when the property is considered to be under construction because it is undergoing significant redevelopment or renovation pursuant to a formal plan or is being repositioned in the market and such renovation or repositioning is expected to have a significant impact on property NOI. A development property or under-construction property is moved to the same store pool once a substantial portion of the growth expected from the development or redevelopment is reflected in both the current and comparable prior year period. Acquisitions are moved into the same store pool once we have owned the property for the entirety of the comparable periods and the property is not under significant development or redevelopment.

Previous wording

Same store NOI decreased $2.3 million, or 4.0%, to $54.8 million for the three months ended June 30, 2026 from $57.0 million for the same period in 2025. Same store NOI decreased $5.0 million, or 4.4%, to $109.1 million for the six months ended June 30, 2026 from $114.1 million for the same period in 2025. The decreases were substantially attributable to (i) lower rental revenue and higher real estate taxes and utilities expense in our multifamily portfolio; and (ii) lower rental revenue, partially offset by lower real estate taxes in our commercial portfolio.

Current wording

Same store NOI increased $1.9 million, or 3.3%, to $60.8 million for the three months ended September 30, 2026 from $58.8 million for the same period in 2025. The increase in our commercial portfolio same store NOI was substantially attributable to higher rental revenue and lower real estate taxes, partially offset by higher utilities expense, and the decrease in our multifamily portfolio same store NOI was substantially attributable to lower rental revenue. Same store NOI decreased $3.9 million, or 2.3%, to $164.0 million for the nine months ended September 30, 2026 from $167.8 million for the same period in 2025. The decrease was substantially attributable to lower rental revenue and higher utilities expense and real estate taxes expense in our multifamily portfolio.

Previous wording

Commercial: Property revenue at our share increased by $4.5 million, or 4.1%, to $114.2 million in 2026 from $109.7 million in 2025. The increase in property revenue at our share was primarily due to the acquisitions of Tysons Dulles Plaza and Dulles View, and the consolidation of 1101 17th Street. NOI at our share increased by $1.4 million, or 2.1%, to $69.3 million in 2026 from $67.8 million in 2025. The increase in NOI at our share was primarily due to the acquisitions of Tysons Dulles Plaza and Dulles View, and the consolidation of 1101 17th Street, partially offset by higher property operating expenses primarily due to higher utilities across the portfolio.

Current wording

Multifamily: Property revenue at our share increased by $2.1 million, or 4.4%, to $50.4 million in 2026 from $48.3 million in 2025. The increase in property revenue at our share was primarily due to the continued lease up of The Grace, Reva, The Zoe and Valen, partially offset by higher concessions across the portfolio. NOI at our share increased by $1.3 million, or 4.9%, to $27.5 million in 2026 from $26.2 million in 2025. The increase in NOI at our share was primarily due to the continued lease up of The Grace, Reva, The Zoe and Valen, partially offset by higher concessions and higher property operating expenses primarily due to higher utilities across the portfolio.

Previous wording

Third-party real estate services revenue, excluding reimbursements, increased by $426,000, or 3.2%, to $13.7 million in 2026 from $13.2 million in 2025. The increase was primarily due to a $940,000 increase in asset management fees, a $410,000 increase in other service revenue and a $225,000 increase in property management fees, partially offset by a $1.0 million decrease in leasing fees. Third-party real estate services expenses, excluding reimbursements, decreased by $348,000, or 2.8%, to $12.3 million in 2026 from $12.6 million in 2025. The decrease was primarily due to lower overhead expenses, partially offset by higher compensation expenses.

Current wording

Third-party real estate services revenue, excluding reimbursements, increased by $1.8 million, or 9.3%, to $21.6 million in 2026 from $19.8 million in 2025. The increase was primarily due to a $1.0 million increase in asset management fees, a $982,000 increase in other service revenue and a $342,000 increase in property management fees, partially offset by a $979,000 decrease in leasing fees. Third-party real estate services expenses, excluding reimbursements, decreased by $275,000, or 1.5%, to $18.1 million in 2026 from $18.4 million in 2025. The decrease was primarily due to lower overhead expenses, partially offset by higher compensation expenses.

Previous wording

Property rental income is our primary source of operating cash flow and depends on many factors including occupancy levels and rental rates, as well as our tenants' ability to pay rent. In addition, our third-party real estate services business provides fee-based real estate services. Our assets provide cash flow that enables us to pay operating expenses, debt service, recurring capital expenditures, dividends to shareholders, and distributions to holders of OP Units and long-term incentive partnership units ("LTIP Units"). Other sources of liquidity to fund cash requirements include proceeds from financings, recapitalizations, asset sales, and the issuance and sale of securities. We anticipate that cash flows from continuing operations and proceeds from financings, asset sales and recapitalizations, together with existing cash balances, will be adequate to fund our business operations, debt amortization, capital expenditures, any dividends to shareholders, and distributions to holders of OP Units and LTIP Units.

Current wording

Property rental income is our primary source of operating cash flow and depends on many factors including occupancy levels and rental rates, as well as our tenants' ability to pay rent. In addition, our third-party real estate services business provides fee-based real estate services. Our assets provide cash flow that enables us to pay operating expenses, debt service, recurring capital expenditures, dividends to shareholders, and distributions to holders of OP Units and long-term incentive partnership units ("LTIP Units"). Other sources of liquidity to fund cash requirements include proceeds from financings,

Previous wording

As of June 30, 2026 and December 31, 2025, the net carrying value of real estate collateralizing our mortgage loans totaled $1.7 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.

Current wording

As of September 30, 2026 and December 31, 2025, the net carrying value of real estate collateralizing our mortgage loans totaled $1.6 billion and $1.7 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.

Previous wording

As of June 30, 2026 and December 31, 2025, 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 2027, 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. We have the option to increase the $750.0 million revolving credit facility or add term loans up to $500.0 million. The revolving credit facility has two six-month extension options.

Current wording

As of September 30, 2026, our unsecured revolving credit facility and term loans totaling $1.4 billion consisted of (i) a revolving credit facility with a capacity of $690.0 million maturing in August 2030, (ii) a $200.0 million term loan ("Tranche A-1 Term Loan") maturing in January 2027, (iii) a $415.0 million term loan ("Tranche A-2 Term Loan"), of which $171.1 million matures in January 2028 and $243.9 million matures in August 2028, and (iv) a $120.0 million term loan ("2023 Term Loan") maturing in June 2028.

Previous wording

Our Board of Trustees has authorized the repurchase of up to $2.0 billion of our outstanding common shares. During the three and six months ended June 30, 2026, we repurchased and retired 208,565 and 1.8 million common shares for $3.0 million and $28.4 million, a weighted average purchase price per share of $14.37 and $15.35. During the three and six months ended June 30, 2025, we repurchased and retired 11.2 million and 23.3 million common shares for $184.9 million and $372.4 million, a weighted average purchase price per share of $16.54 and $15.96. Since we began the share repurchase program through June 30, 2026, we have repurchased and retired 85.5 million common shares for $1.6 billion, a weighted average purchase price per share of $18.72.

Current wording

Our Board of Trustees previously authorized the repurchase of up to $2.0 billion of our outstanding common shares. In October 2026, our Board of Trustees increased our common share repurchase authorization to $2.3 billion. During the nine months ended September 30, 2026, we repurchased and retired 1.8 million common shares for $28.4 million, a weighted average purchase price per share of $15.35. During the three and nine months ended September 30, 2025, we repurchased

Previous wording

Purchases under the program are made either in the open market or in privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by us at our discretion and will be subject to economic and market conditions, share price,

Current wording

Purchases under the program are made either in the open market or in privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by us at our discretion and will be subject to economic and market conditions, share price, applicable legal requirements and other factors. The program may be suspended or discontinued at our discretion without prior notice.