Form 4: JBG SMITH Properties: Chief Accounting Officer Receives LTIP Unit Grant

Angela Valdes, Chief Accounting Officer of JBG SMITH Properties, reports the acquisition of 17,373 LTIP units on January 2, 2025, under the company's 2017 Omnibus Share Plan.

Summary

• On January 2, 2025, Angela Valdes, Chief Accounting Officer of JBG SMITH Properties, received a grant of 17,373 limited partnership units (LTIP Units) in JBG SMITH Properties LP, the company's operating partnership.
• These LTIP Units are convertible into operating partnership units, which are redeemable for common shares or their cash value after a two-year period.
• The LTIP Units vest 25% annually over four years, contingent upon continued employment.
• The total number of LTIPs has been revised to reflect that certain LTIPs, originally granted in January 2021, were forfeited based on performance conditions set forth in the award agreement.
• Following the reported transaction, Ms. Valdes beneficially owns 107,583 common shares.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. It's a neutral to slightly positive event.

Positives

• The grant of LTIP units aligns the executive's interests with the long-term performance of the company.
• The vesting schedule encourages continued employment and commitment from the Chief Accounting Officer.

Risks

• The value of the LTIP units is dependent on the performance of JBG SMITH Properties' common shares.
• Forfeiture of LTIPs can occur if performance conditions are not met.

Future Outlook

The LTIP units will vest over the next four years, subject to continued employment, potentially increasing Ms. Valdes' stake in the company.

Industry Context

Granting LTIP units is a common practice in the real estate industry to incentivize and retain key executives, aligning their interests with those of shareholders.

Stakeholder Impact

• The LTIP grant aligns the executive's interests with those of shareholders, potentially driving long-term value creation.

Next Steps

• The LTIP units will vest annually over the next four years, contingent upon continued employment.

Key Dates