The REIT had a net loss of $28.6M in the third quarter, up from $27M in the same quarter last year, according to its Tuesday evening earnings release. Its net operating income among properties it has owned for 12 months or more decreased 6.7% from the prior quarter.

Through the first nine months of this year, its core funds from operations — a key metric measuring a REIT’s cash flow — totaled $29M, less than half of the $62M it reported for the same period last year.

The losses were driven in part by its roughly 6,000-unit multifamily portfolio, where same-store NOI dropped by 2.2%, caused by increased expenses and lower occupancy. Those units were 93.1% leased as of Sept. 30, down 1.6% from the prior quarter.

“The larger-than-normal loss in occupancy and a continuation of a deceleration in rent growth that have persisted since the spring has us monitoring the health of the market closely,” JBG Smith CEO Matt Kelly wrote in a letter accompanying the earnings release, commenting on the region’s overall multifamily market.

Kelly attributed the drop in demand to the Trump administration’s job cuts this year, citing Bureau of Labor Statistics data that the region has lost 13,000 jobs since the beginning of the year. That includes federal agencies and contractors that depend on government spending.

“In the near term, we expect demand to remain tepid at a regional level due to disruptions and uncertainty around the federal government and its all-important procurement spending,” Kelly wrote in his quarterly letter to investors.

The company’s office portfolio ended the third quarter at 77.6% leased, up 1.1% from the prior quarter. The REIT says it signed 182K SF of leases last quarter.

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