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Redeemable Noncontrolling Interests

3 Months Ended

Mar. 31, 2021

9.Redeemable Noncontrolling Interests

JBG SMITH LP

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, 2021 and 2020, unitholders redeemed 119,178 and 787,253 OP Units, which we elected to redeem for an equivalent number of our common shares. As of March 31, 2021, outstanding OP Units totaled 13.7 million, representing a 9.5% ownership interest in JBG SMITH LP. On our balance sheets, our OP Units and certain vested long-term incentive partnership units ("LTIP Units") 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 2021, unitholders redeemed 171,978 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 consolidated real estate venture that owns a multifamily asset located 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 under certain conditions. As of March 31, 2021, we held a 96.0% ownership interest in the real estate venture.

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


	Three Months Ended March 31,
	2021						2020
			Consolidated						Consolidated
	JBG		Real Estate				JBG		Real Estate
	SMITH LP		Venture		Total		SMITH LP		Venture		Total

	(In thousands)
Balance as of the beginning of the period	$	522,882	$	7,866	$	530,748	$	606,699	$	6,059	$	612,758
OP Unit redemptions		(3,919)		—		(3,919)		(31,126)		—		(31,126)
LTIP Units issued in lieu of cash bonuses ⁽¹⁾		4,817		—		4,817		3,616		—		3,616
Net income (loss) attributable to redeemable noncontrolling interests		(2,197)		(33)		(2,230)		5,253		(3)		5,250
Other comprehensive income (loss)		973		—		973		(3,573)		—		(3,573)
Contributions (distributions)		(1,362)		—		(1,362)		—		—		—
Share-based compensation expense		12,564		—		12,564		16,781		—		16,781
Adjustment to redemption value		11,293		43		11,336		(100,666)		—		(100,666)
Balance as of the end of the period	$	545,051	$	7,876	$	552,927	$	496,984	$	6,056	$	503,040

(1)	See Note 11 for additional information.