5. REDEEMABLE NON-CONTROLLING INTERESTS

The non-controlling interests that are reflected as redeemable non-controlling interests in the consolidated financial statements consist of those owners who have certain redemption rights that are currently exercisable, and that, if exercised, require that the Company purchase the non-controlling interest of those owners. The redeemable non-controlling interests are adjusted to the fair value in the reporting period in which the Company deems it probable that the limited partner will assert the redemption rights and it will be adjusted each reporting period thereafter. The adjustments are charged to additional paid-in capital and are not reflected in the statements of net income.

For the six months ended June 30, 2015, the following table details the changes in the carrying amount of redeemable non-controlling interest:

Beginning balance	$	7,376
Operating results allocated to redeemable non-controlling interest partners		371
Distributions to redeemable non-controlling interest partners		(470	)
Reclass of non-controlling interests		2,681
Increase due to revaluation fair value of redeemable non-controlling interest		627
Ending balance	$	10,585