Non-recourse Debt Update: JBGS/SLG at a Spot Discount to NAV (only one piece of the puzzle)

Research evidence excerpt

Non-recourse Debt Update: JBGS/SLG at a Spot Discount to NAV (only one piece of the puzzle)

REITs

Office - Market Weight

OFFICE July 15, 2026

Non-recourse Debt Update: JBGS/SLG at a Spot Discount

to NAV (only one piece of the puzzle)

The Wolfe Byte

This report updates our asset by asset analysis for SLG and JBGS assuming the Ally Yaseen

potential for strategic defaults. ayaseen@wolferesearch.com (646) 582-9253

Andrew Rosivach, CFA

We have regularly published reports analyzing the potential for strategic defaults arosivach@wolferesearch.com

on a property by property basis for PGRE, SLG (not covered), and JBGS and their (646) 582-9250 View Andrew’s Research

impact on NAV (we exclude PGRE post acquisition). We can provide detailed analysis

in Excel upon request. Andy Liu aliu@wolferesearch.com

(646) 582-9257

Non-core assets: Since we first published this report in 2023, all 3 companies

designated a group of "non-core" assets. We note the properties included in these Logan Epstein

lepstein@wolferesearch.com

groups were generally included in the "default scenarios" in our initial reports. (646) 582-9267

What's changed since our last update (July '25): 1 year later, SLG is now trading at Div Gaur

dgaur@wolferesearch.com

a discount to NAV at cap rates below 8.5% on our calculations, vs a premium a year

ago. JBGS remains discounted vs our NAV calculation.

●PGRE acquisition: Rithm acquired PGRE for $6.60/share, which we estimated

implied a ~7.5% cap rate assuming strategic defaults on certain assets. Rithm

continues to designate a group of "core" properties within the portfolio.

●NOI expectations: On a "same property" basis the NOI estimates used in our

calculations are higher for SLG and lower for JBGS.

●Recent transactions: Both companies have been actively buying and selling