Redeemable Noncontrolling Interests

JBG SMITH LP

JBG SMITH LP has issued 19.8 million OP Units to persons other than JBG SMITH that are redeemable for cash or, at our election, our common shares beginning August 1, 2018, subject to certain limitations. These OP Units represent a 14.4% interest in JBG SMITH LP as of June 30, 2018. During the third quarter of 2018, unitholders gave notice to redeem 3.0 million OP units, which we have elected to redeem for an equivalent number of our common shares. On our balance sheets, our redeemable noncontrolling interests are presented at the higher of their redemption value at the end of each reporting period or their carrying value, with such adjustments recognized in "Additional paid-in capital." Redemption value is equivalent to the market value of one our common shares at the end of the period multiplied by the number of vested OP units outstanding.

Consolidated Real Estate Venture

We are a partner in a real estate venture that owns an under construction multifamily asset located at 965 Florida Avenue in Washington, D.C. Pursuant to the terms of the 965 Florida Avenue real estate venture agreement, we will fund all capital contributions until our ownership interest reaches a maximum of 97.0%. Our partner can redeem its interest for cash two years after delivery, but no later than seven years subsequent to delivery. As of June 30, 2018, we held an 81.5% ownership interest.

Below is a summary of the activity of redeemable noncontrolling interests:



	JBG SMITH LP			Consolidated Real Estate Venture			Total
	(In thousands)
Balance as of January 1, 2018	$	603,717		$	5,412		$	609,129
Net income (loss) attributable to redeemable noncontrolling interests	2,985			(5		)	2,980
Other comprehensive income	2,710			—			2,710
Contributions (distributions)	(4,657		)	500			(4,157		)
Share-based compensation expense	27,078			—			27,078
Adjustment to redemption value	27,883			—			27,883
Balance as of June 30, 2018	$	659,716		$	5,907		$	665,623