XML 49 R17.htm IDEA: XBRL DOCUMENT

Redeemable Noncontrolling Interests

3 Months Ended

Mar. 31, 2020

9.Redeemable Noncontrolling Interests

JBG SMITH LP

A portion of the OP Units held by persons other than JBG SMITH are redeemable for cash or, at our election, our common shares, subject to certain limitations. During the three months ended March 31, 2020 and 2019, unitholders redeemed

787,253 and 1.7 million OP Units, which we elected to redeem for an equivalent number of our common shares. As of March 31, 2020, outstanding OP Units totaled 14.4 million, representing a 9.7% ownership interest in JBG SMITH LP. On our balance sheets, our OP Units and certain vested LTIPs are presented at the higher of their redemption value or their carrying value, with such adjustments recognized in "Additional paid-in capital." Redemption value per OP Unit is equivalent to the market value of one of our common shares at the end of the period. In April 2020, unitholders redeemed 81,983 OP Units, which we elected to redeem for an equivalent number of our common shares.

Consolidated Real Estate Venture

We are a partner in a real estate venture that owns an under construction multifamily asset located at 965 Florida Avenue in Washington, D.C. Pursuant to the terms of the real estate venture agreement, we will fund all capital contributions until our ownership interest reaches a maximum of 97.0%. Our partner can redeem its interest for cash two, but no later than seven years, after delivery. As of March 31, 2020, we held a 95.5% ownership interest in the real estate venture.

The following is a summary of the activity of redeemable noncontrolling interests:


	Three Months Ended March 31,
	2020						2019
			Consolidated						Consolidated
	JBG		Real Estate				JBG		Real Estate
	SMITH LP		Venture		Total		SMITH LP		Venture		Total
	(In thousands)
Balance as of beginning of period	$	606,699	$	6,059	$	612,758	$	552,159	$	5,981	$	558,140
OP Unit redemptions		(31,126)		—		(31,126)		(57,001)		—		(57,001)
Long-term incentive partnership units ("LTIP Units") issued in lieu of cash bonuses ⁽¹⁾		3,616		—		3,616		3,135		—		3,135
Net income (loss) attributable to redeemable noncontrolling interests		5,253		(3)		5,250		3,386		1		3,387
Other comprehensive loss		(3,573)		—		(3,573)		(1,383)		—		(1,383)
Share-based compensation expense		16,781		—		16,781		16,273		—		16,273
Adjustment to redemption value		(100,666)		—		(100,666)		62,212		—		62,212
Balance as of end of period	$	496,984	$	6,056	$	503,040	$	578,781	$	5,982	$	584,763

(1)	See Note 11 for additional information.