JBG SMITH Properties : 1Q21 Investor Package

May 4, 2021

To Our Fellow Shareholders:

While the first quarter brought signs of recovery, the one-year mark of the pandemic calls upon us to take stock of the road ahead. As we look forward, we are encouraged by the pace of vaccinations, and we embrace the challenges and opportunities that new ways of living and working will present. Thankfully, JBG SMITH was well positioned before the pandemic, and while we did not come through unscathed, we believe that we have emerged with an even better set of growth opportunities ahead of us, including improved long-term demand fundamentals in National Landing, home to over 50% of our holdings. We also wasted no time during the past year positioning ourselves to capitalize on these demand catalysts.

• Amazon HQ2 continued to grow with faster hiring and an expanded footprint, and the Virginia Tech Innovation Campus launched on schedule. We control 77% of the office and 79% of the unencumbered land assets in this growth cluster.
• Advanced our National Landing repositioning plans including (i) completing two assets, one fully leased to Amazon, (ii) breaking ground on 1900 Crystal Drive, and (iii) advancing entitlements on 6.8 million square feet.
• Increased the value of our 15 million square foot development pipeline. Over the past year we advanced the design and entitlement of approximately 75% of this valuable opportunity set, of which 60% is in National Landing.
• Resumed our efforts to recycle out of non-core office and land assets (outside of National Landing) to provide NAV-pricedfunding for our future growth on top of our already strong balance sheet.
• Our market is positioned to benefit from trillions of dollars in expected increased Federal spending, with potential for upside in occupancy and rents in the years that follow.

In the first quarter, we began to see signs that the pandemic is receding. Tour activity increased across our portfolio, we executed 344,000 square feet of commercial leases, and we increased the leased percentage of our in-service multifamily portfolio to 92.3%. While we expect the economic fallout from the pandemic to continue to adversely impact our business before a market recovery positively impacts real estate fundamentals and values, we believe this recovery will begin during the second half of 2021 and continue for several years.

We are excited to have commenced construction on 1900 Crystal Drive, a multifamily asset in the heart of National Landing, which we expect to complete in time to meet anticipated demand from Amazon HQ2, Virginia Tech's Innovation Campus, and associated follow-on demand. Additionally, in Potomac Yard, the southern portion of National Landing, we recently entered into a joint venture with institutional investors advised by J.P. Morgan Global Alternatives that provides us with 50% control of an approximately 2.0 million square foot development opportunity.

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As a result of this transaction, our at share ownership of development rights immediately adjacent to Virginia Tech's Innovation Campus and the planned Potomac Yard Metro station increased by over 285,000 square feet. We have updated our portfolio statistics in this letter to reflect the impact of this joint venture. We provide more detail on each of these growth drivers below in our Q1 2021 and Recent Highlights section.

JBG SMITH Overview

We own and operate urban mixed-use properties concentrated in what we believe are the highest growth submarkets of the historically recession-resilient Washington, DC metro area. Our concentration in these submarkets, our substantial portfolio of operating and development opportunities, and our market leading platform uniquely position us to capitalize on the significant growth anticipated in our target submarkets for many years to come.

Over half our holdings are located in the National Landing submarket in Northern Virginia, directly across the Potomac River from Washington, DC, where Amazon's new headquarters and Virginia Tech's planned new $1 billion Innovation Campus are located. Amazon is incentivized to bring up to 38,000 new jobs to the submarket, which, based on data from the National Landing Business Improvement District, would increase the daytime population in the submarket from approximately 50,000 people today to nearly 90,000 people in the future, representing dramatic growth of more than 70%. The balance of our portfolio is concentrated in what we believe are the highest growth submarkets in the Washington, DC metro region, the majority of which are within a 20- minute commute of the growing technology ecosystem in National Landing. We believe the strong technology sector tailwinds created by Amazon, the Virginia Tech Innovation Campus, and our National Landing Smart City initiative, where we plan to accelerate 5G rollout and other connectivity enhancements with best-in-class technical partners, will drive substantial long-term NAV per share growth.

We continue to seek opportunities to monetize our 15.0 million square foot Development Growth Pipeline (73% planned as multifamily) through a combination of internal development, land sales, ground lease structures, and/or recapitalizations with third-party capital. In late March, we officially commenced construction on 1900 Crystal Drive in the heart of National Landing. Additionally, our 5.0 million square foot Near-Term Development Pipeline includes 2,545 multifamily units in National Landing. Our Near-Term Development Pipeline includes the most accretive and strategic development opportunities in our growth pipeline - those which have the potential to commence construction over the next 36 months, subject to receipt of final entitlements, completion of design, and market conditions. Assets within our Near-Term Development Pipeline are concentrated in the National Landing, Ballpark, and Union Market/NoMa/H Street submarkets, which we believe are poised for continued growth.

In addition to the sale of $1.6 billion of non-core, primarily office assets since our launch in 2017, we intend to opportunistically sell at least another $1.5 billion of non-core assets in the coming years. Recycling the proceeds from these sales will not only help fund our planned growth but will also further advance the intentional shift of our portfolio to majority multifamily.

Q1 2021 and Recent Highlights

Development Growth Pipeline

In late March, we commenced construction on 1900 Crystal Drive, an 808-unit multifamily asset with more than 38,000 square feet of new street-facing retail, located in the heart of National Landing. The project, which comprises two nearly 300-foot towers, should serve as a striking new addition to the National Landing skyline and will activate the retail streetscape. We successfully secured a guaranteed maximum price contract for the project more than 7.5% below pre-pandemic pricing. The buildings are located between 18th and 20th Streets, just one

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