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Redeemable Noncontrolling Interests

12 Months Ended

Dec. 31, 2023

13. 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 years ended December 31, 2023 and 2022, unitholders redeemed 2.8 million and 701,222 OP Units, which we elected to redeem for an equivalent number of our common shares. As of December 31, 2023, outstanding OP Units and redeemable LTIP Units totaled 13.1 million, representing a 12.2% 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 consolidated balance sheets. Redemption value per OP Unit is equivalent to the market value of one of our common shares at the end of the period. In 2024, as of the date of this filing, unitholders redeemed 351,105 OP Units and LTIP Units, which we elected to redeem for an equivalent number of our common shares.

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 December 31, 2022, we held a 99.7% ownership interest in the real estate venture, which reflects the redemption of a 3.7% interest in October 2022, 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:


	Year Ended December 31,
	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		(44,620)		(647)		(45,267)		(16,704)		(9,531)		(26,235)
LTIP Units issued in lieu of cash compensation⁽¹⁾		5,213		—		5,213		6,584		—		6,584
Net income (loss)		(10,596)		—		(10,596)		13,212		32		13,244
Other comprehensive income (loss)		(4,486)		—		(4,486)		8,411		—		8,411
Distributions		(11,351)		—		(11,351)		(16,172)		(267)		(16,439)
Share-based compensation expense		29,018		—		29,018		38,384		—		38,384
Adjustment to redemption value		(3,104)		—		(3,104)		(66,320)		956		(65,364)
Balance, end of period	$	440,737	$	—	$	440,737	$	480,663	$	647	$	481,310

(1)	See Note 15 for additional information.