Redeemable Noncontrolling Interests

JBG SMITH LP

In July 2017, JBG SMITH LP issued 19.8 million OP Units to persons other than JBG SMITH that became redeemable for cash or, at our election, our common shares beginning on August 1, 2018, subject to certain limitations. During the year ended December 31, 2018, unitholders redeemed 3.0 million OP units, which we elected to redeem for an equivalent number of our common shares. As of December 31, 2018, outstanding OP Units totaled 16.8 million, representing a 12.2% interest in JBG SMITH LP. 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 of our common shares at the end of the period multiplied by the number of vested OP units outstanding. In 2019, unitholders redeemed 1.7 million OP units, which we elected to redeem for an equivalent number of our common shares.

Consolidated Real Estate Venture

In November 2017, we became 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 December 31, 2018, we held an 88.1% ownership interest in the real estate venture.

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



	Year Ended December 31,
	2018								2017
	JBG SMITH LP			Consolidated Real Estate Venture		Total			JBG SMITH LP			Consolidated Real Estate Venture			Total
	(In thousands)
Balance as of beginning of period	$	603,717		$	5,412	$	609,129		$	—		$	—		$	—
Fair value of OP Unit redemptions	(109,208		)	—		(109,208		)	—			—			—
OP Units issued at the Separation	—			—		—			96,632			—			96,632
OP Units issued in connection with the Combination ⁽¹⁾	—			—		—			359,967			—			359,967
Net income (loss) attributable to redeemable noncontrolling interests	6,641			69		6,710			(7,320		)	(8		)	(7,328		)
Other comprehensive income	1,384			—		1,384			225			—			225
Contributions (distributions)	(18,737		)	500		(18,237		)	(9,113		)	5,420			(3,693		)
Share-based compensation expense	52,190			—		52,190			32,634			—			32,634
Adjustment to redemption value	16,172			—		16,172			130,692			—			130,692
Balance as of end of period	$	552,159		$	5,981	$	558,140		$	603,717		$	5,412		$	609,129

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⁽¹⁾	Excludes certain OP Units issued as part of the Combination which had an estimated fair value of $110.6 million, the vesting of which is subject to post-combination employment. See Note 13 for additional information.