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Redeemable Noncontrolling Interests

12 Months Ended

Dec. 31, 2024

13. 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 years ended December 31, 2024 and 2023, unitholders redeemed 1.0 million and 2.8 million OP Units, which we elected to redeem for an equivalent number of our common shares. As of December 31, 2024, outstanding OP Units and redeemable LTIP Units totaled 13.8 million, representing a 14.0% 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.

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


	Year Ended December 31,
	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		(17,071)		(44,620)		(647)		(45,267)
LTIP Units issued in lieu of cash compensation ⁽¹⁾		3,835		5,213		—		5,213
Net loss		(22,202)		(10,596)		—		(10,596)
Other comprehensive loss		(817)		(4,486)		—		(4,486)
Distributions		(14,386)		(11,351)		—		(11,351)
Share-based compensation expense		26,976		29,018		—		29,018
Adjustment to redemption value		6,560		(3,104)		—		(3,104)
Balance, end of period	$	423,632	$	440,737	$	—	$	440,737

(1)	See Note 15 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%.