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Redeemable Noncontrolling Interests

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2024 and 2023, unitholders redeemed 827,012 and 2.1 million OP Units, which we elected to redeem for an equivalent number of our common shares. As of September 30, 2024, outstanding OP Units and redeemable LTIP Units totaled 13.9 million, representing a 14.2% 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 balance sheets. Redemption value per OP Unit is equivalent to the market value of one common share at the end of the period.

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


	Three Months Ended September 30,
	2024		2023
					Consolidated
	JBG		JBG		Real Estate
	SMITH LP		SMITH LP		Venture		Total

	(In thousands)
Balance, beginning of period	$	436,673	$	455,886	$	—	$	455,886
Redemptions		(3,553)		(7,602)		—		(7,602)
Net loss		(4,365)		(7,926)		—		(7,926)
Other comprehensive income (loss)		(5,595)		1,346		—		1,346
Distributions		(2,874)		(3,727)		—		(3,727)
Share-based compensation expense		4,424		6,003		—		6,003
Adjustment to redemption value		20,235		381		—		381
Balance, end of period	$	444,945	$	444,361	$	—	$	444,361

	Nine Months Ended September 30,
	2024		2023
					Consolidated
	JBG		JBG		Real Estate
	SMITH LP		SMITH LP		Venture ⁽²⁾		Total

	(In thousands)
Balance, beginning of period	$	440,737	$	480,663	$	647	$	481,310
Redemptions		(13,769)		(33,110)		(647)		(33,757)
LTIP Units issued in lieu of cash compensation ⁽¹⁾		3,836		5,213		—		5,213
Net loss		(12,353)		(5,961)		—		(5,961)
Other comprehensive income (loss)		(4,003)		902		—		902
Distributions		(8,714)		(7,654)		—		(7,654)
Share-based compensation expense		24,287		25,152		—		25,152
Adjustment to redemption value		14,924		(20,844)		—		(20,844)
Balance, end of period	$	444,945	$	444,361	$	—	$	444,361

(1)	See Note 11 for additional information.

(2)	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%.