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Redeemable Noncontrolling Interests

6 Months Ended

Jun. 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 six months ended June 30, 2024 and 2023, unitholders redeemed 625,166 and 1.6 million OP Units, which we elected to redeem for an equivalent number of our common shares. As of June 30, 2024, outstanding OP Units and redeemable LTIP Units totaled 13.8 million, representing a 13.6% 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 July 2024, unitholders redeemed 100,972 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 June 30,
	2024		2023
					Consolidated
	JBG		JBG		Real Estate
	SMITH LP		SMITH LP		Venture		Total

	(In thousands)
Balance, beginning of period	$	435,529	$	457,778	$	—	$	457,778
Redemptions		(2,341)		(11,726)		—		(11,726)
LTIP Units issued in lieu of cash compensation ⁽¹⁾		854		757		—		757
Net loss		(3,454)		(1,398)		—		(1,398)
Other comprehensive income (loss)		(434)		1,781		—		1,781
Distributions		(2,910)		(3,927)		—		(3,927)
Share-based compensation expense		10,913		9,606		—		9,606
Adjustment to redemption value		(1,484)		3,015		—		3,015
Balance, end of period	$	436,673	$	455,886	$	—	$	455,886

	Six Months Ended June 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		(10,216)		(25,508)		(647)		(26,155)
LTIP Units issued in lieu of cash compensation ⁽¹⁾		3,836		5,213		—		5,213
Net income (loss)		(7,988)		1,965		—		1,965
Other comprehensive income (loss)		1,592		(444)		—		(444)
Distributions		(5,840)		(3,927)		—		(3,927)
Share-based compensation expense		19,863		19,149		—		19,149
Adjustment to redemption value		(5,311)		(21,225)		—		(21,225)
Balance, end of period	$	436,673	$	455,886	$	—	$	455,886

(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%.