XML 28 R18.htm IDEA: XBRL DOCUMENT

Redeemable Noncontrolling Interests

9 Months Ended

Sep. 30, 2023

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. Vested LTIP Units are redeemable into OP Units. During the nine months ended September 30, 2023 and 2022, unitholders redeemed 2.1 million and 493,596 OP Units, which we elected to redeem for an equivalent number of our common shares. As of September 30, 2023, outstanding OP Units and redeemable LTIP Units totaled 13.7 million, representing a 12.3% ownership interest in JBG SMITH LP. Our OP Units and certain vested LTIP Units are presented at the higher of their redemption value or their carrying value, with adjustments to the redemption value recognized in "Additional paid-in capital" in our balance sheets. Redemption value per OP Unit is equivalent to the market value of one common share at the end of the period.

Consolidated Real Estate Venture

We were a partner in a consolidated real estate venture that owned a multifamily asset, The Wren, located in Washington, D.C. As of September 30, 2022, we held a 96.0% ownership interest in the real estate venture. In October 2022, one partner redeemed its 3.7% interest, and in February 2023, another partner redeemed its 0.3% interest, increasing our ownership interest to 100.0%.

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


	Three Months Ended September 30,
	2023						2022
			Consolidated						Consolidated
	JBG		Real Estate				JBG		Real Estate
	SMITH LP		Venture		Total		SMITH LP		Venture		Total

	(In thousands)
Balance, beginning of period	$	455,886	$	—	$	455,886	$	513,426	$	7,966	$	521,392
Redemptions		(7,602)		—		(7,602)		(4,891)		—		(4,891)
Net income (loss)		(7,926)		—		(7,926)		(2,557)		11		(2,546)
Other comprehensive income		1,346		—		1,346		4,376		—		4,376
Distributions		(3,727)		—		(3,727)		(4,083)		(119)		(4,202)
Share-based compensation expense		6,003		—		6,003		6,211		—		6,211
Adjustment to redemption value		381		—		381		(30,681)		1,820		(28,861)
Balance, end of period	$	444,361	$	—	$	444,361	$	481,801	$	9,678	$	491,479

	Nine Months Ended September 30,
	2023						2022
			Consolidated						Consolidated
	JBG		Real Estate				JBG		Real Estate
	SMITH LP		Venture		Total		SMITH LP		Venture		Total

	(In thousands)
Balance, beginning of period	$	480,663	$	647	$	481,310	$	513,268	$	9,457	$	522,725
Redemptions		(33,110)		(647)		(33,757)		(12,667)		—		(12,667)
LTIP Units issued in lieu of cash compensation ⁽¹⁾		5,213		—		5,213		6,584		—		6,584
Net income (loss)		(5,961)		—		(5,961)		15,680		32		15,712
Other comprehensive income		902		—		902		8,653		—		8,653
Distributions		(7,654)		—		(7,654)		(8,193)		(267)		(8,460)
Share-based compensation expense		25,152		—		25,152		31,107		—		31,107
Adjustment to redemption value		(20,844)		—		(20,844)		(72,631)		456		(72,175)
Balance, end of period	$	444,361	$	—	$	444,361	$	481,801	$	9,678	$	491,479

(1)	See Note 11 for additional information.