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Redeemable Noncontrolling Interests

3 Months Ended

Mar. 31, 2024

9.Redeemable Noncontrolling Interests

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 three months ended March 31, 2024 and 2023, unitholders redeemed 468,081 and 756,356 OP Units, which we elected to redeem for an equivalent number of our common shares. As of March 31, 2024, outstanding OP Units and redeemable LTIP Units totaled 13.0 million, representing a 12.4% 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. In April 2024, unitholders redeemed 83,887 OP Units and LTIP Units, which we elected to redeem for an equivalent number of our common shares.

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


	Three Months Ended March 31,
	2024		2023
					Consolidated
	JBG		JBG		Real Estate
	SMITH LP		SMITH LP		Venture ⁽¹⁾		Total

	(In thousands)
Balance, beginning of period	$	440,737	$	480,663	$	647	$	481,310
Redemptions		(7,875)		(13,782)		(647)		(14,429)
LTIP Units issued in lieu of cash compensation ⁽²⁾		2,983		4,456		—		4,456
Net income (loss)		(4,534)		3,363		—		3,363
Other comprehensive income (loss)		2,026		(2,225)		—		(2,225)
Distributions		(2,931)		—		—		—
Share-based compensation expense		8,950		9,543		—		9,543
Adjustment to redemption value		(3,827)		(24,240)		—		(24,240)
Balance, end of period	$	435,529	$	457,778	$	—	$	457,778

(1)	As of December 31, 2022, we held a 99.7% ownership interest in a real estate venture that owned The Wren, a multifamily asset. In February 2023, the partner redeemed its 0.3% interest, increasing our ownership interest to 100.0%.

(2)	See Note 11 for additional information.