JBG SMITH Same-Store NOI Rebounds After a Second-Quarter Drop

The Tip Desk · November 11, 2026 · 4 min read

Annualized NOI reached $256.4 million as Core FFO attributable to common shares rose to $0.22 a share.

JBG SMITH Properties (JBGS) reported Core FFO attributable to common shares of $12.7 million, or $0.22 a share, for the three months ended September 30, 2026, up from $10.4 million, or $0.18 a share, in the prior quarter.

The mixed-use owner, operator and developer of properties concentrated around Washington, DC, said annualized NOI at its share increased 2.9%, or $7.2 million, quarter over quarter to $256.4 million, after a 1.3% sequential increase to $249.2 million in the second quarter. Same Store NOI rose 3.3% for the three months ended September 30, 2026, reversing a 4.0% decline in the prior quarter.

The company said the annualized NOI increase was substantially attributable to higher occupancy and lower real estate taxes, partially offset by higher concessions and utilities expense in multifamily, and to abatement burn-off and lower real estate taxes in commercial. Same Store NOI at its share was $60.8 million. Commercial Same Store NOI rose on higher rental revenue and lower real estate taxes, partially offset by higher utilities. Multifamily Same Store NOI declined on lower rental revenue.

The operating multifamily portfolio ended the quarter at 92.9% leased and 91.5% occupied, compared with 89.6% leased and 86.6% occupied at June 30, 2026. Same Store multifamily occupancy rose 270 basis points to 93.1%, and leased occupancy rose 90 basis points to 94.4%. Multifamily portfolio NOI increased approximately 3.4% from the second quarter. September asking rents in the Same Store multifamily portfolio increased 1.7% from June 2026 and 3.7% from December 2025. Effective rents decreased 9.6% on new leases and increased 2.7% on renewals, with a 56.8% renewal rate.

The company said the Same Store multifamily portfolio re-stabilized during the summer leasing season after the region’s employment disruption, and that the multifamily portfolio has recovered all of the occupancy and most of the rent declines suffered earlier in the year.

The operating commercial portfolio ended the quarter at 78.5% leased and 76.8% occupied, up from 78.0% leased and 75.4% occupied at June 30, 2026. Office portfolio NOI increased 2.6% from the second quarter. The spread between leased and occupied percentages represented approximately $8.8 million of contractual annualized rent expected to commence over the next 12 months.

In the third quarter the company executed approximately 193,000 square feet of office leases at its share, including 74,000 square feet of new leases, with 188,000 square feet in National Landing. Second-generation leases generated a 1.9% rental rate decrease on a cash basis and a 1.6% increase on a GAAP basis. Year-to-date leasing activity represented over 93% of 2025 leasing activity. The company said it believes it is on track for its strongest year of new leasing since 2019.

Net Debt to Annualized Adjusted EBITDA at its share improved to 11.6x from 12.4x at June 30, 2026. Eighty-three point nine percent of debt was fixed or hedged. The company said it continued to lease up newly constructed multifamily assets and grow commercial revenue through commencement of signed leases.

In August the company recast its $690.0 million revolving credit facility and $243.9 million of its Tranche A-2 Term Loan with fully extended maturity dates in August 2031. Subsequent to quarter end it sold a 90% interest in 800 North Glebe and 50% of its interest in Dulles View, securing mortgage financing on both assets. Through October 30, 2026, it repurchased and retired 1.0 million common shares for $11.5 million at a weighted average price of $11.07.

The company said it is currently in the market to recapitalize several multifamily assets where private market values exceed those implied by the public market, and intends to recycle that capital into deleveraging and more accretive uses, including acquisitions of high-growth defense-tech office assets and share repurchases. It said it expects to continue pursuing that approach for the foreseeable future.