v3.26.1
Redeemable Noncontrolling Interests
6 Months Ended
Jun. 30, 2026
Redeemable Noncontrolling Interests  
Redeemable Noncontrolling Interests

9.Redeemable Noncontrolling Interests

JBG SMITH LP

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 convertible into OP Units. During the six months ended June 30, 2026 and 2025, unitholders redeemed 740,955 and 712,735 OP Units. As of June 30, 2026, outstanding OP Units and convertible LTIP Units totaled 13.0 million, representing an 18.2% 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 of our common shares at the end of the period. During the third quarter of 2026 and through August 5, 2026, unitholders redeemed 149,742 OP Units and LTIP Units, which we elected to redeem for an equivalent number of our common shares. Upon issuance of such common shares, any Class B shares associated with the redeemed OP Units and LTIP Units were automatically cancelled.

Consolidated Real Estate Venture

We have a 60.0% controlling ownership interest in a real estate venture that owns West Half, a multifamily asset in Washington, D.C. Our venture partner has the right, but not the obligation, to cause a sale of the property after May 2027, upon which we can either acquire our venture partner’s interest or market the asset for sale. Given this right held by our venture partner, we account for its interest in the venture as a redeemable noncontrolling interest. The carrying amount of the redeemable noncontrolling interest is adjusted at the end of each reporting period to reflect the greater of (i) the initial carrying amount, increased or decreased for the noncontrolling interest’s share of net income (loss) and distributions, or (ii) the redemption value at the balance sheet date pursuant to a waterfall structure whereby our venture partner is entitled to a priority return. Any adjustments to the carrying amount are recognized in "Additional paid-in capital" in our balance sheets.

The following table summarizes the activity of redeemable noncontrolling interests:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

2026

​

2025

​

​

​

​

Consolidated

​

​

​

​

​

​

​

Consolidated

​

​

​

​

JBG

​

Real Estate

​

​

​

​

JBG

​

Real Estate

​

​

​

​

SMITH LP

  ​ ​

Venture

  ​ ​

Total

  ​ ​

SMITH LP

  ​ ​

Venture

  ​ ​

Total

​

(In thousands)

Balance, beginning of period

$

381,546

​

$

113,274

​

$

494,820

​

$

418,236

​

$

—

​

$

418,236

Redemptions

 

(3,209)

​

 

—

​

 

(3,209)

​

 

(1,135)

​

 

—

​

 

(1,135)

LTIP Units issued in lieu of cash compensation (1)

 

974

​

 

—

​

 

974

​

 

974

​

 

—

​

 

974

Net income (loss)

 

(13,323)

​

 

(58)

​

 

(13,381)

​

 

(3,962)

​

 

22

​

 

(3,940)

Other comprehensive income (loss)

 

944

​

 

—

​

 

944

​

 

(1,562)

​

 

—

​

 

(1,562)

Contributions (distributions), net

 

(2,909)

​

 

(684)

​

 

(3,593)

​

 

(2,898)

​

 

100,000

​

 

97,102

Share-based compensation expense

 

7,920

​

 

—

​

 

7,920

​

 

6,855

​

 

—

​

 

6,855

Adjustment to redemption value

 

7,674

​

 

563

​

 

8,237

​

 

12,695

​

 

13,978

​

 

26,673

Balance, end of period

$

379,617

​

$

113,095

​

$

492,712

​

$

429,203

​

$

114,000

​

$

543,203

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Six Months Ended June 30, 

​

2026

​

2025

​

​

​

​

Consolidated

​

​

​

​

​

​

​

Consolidated

​

​

​

​

JBG

​

Real Estate

​

​

​

​

JBG

​

Real Estate

​

​

​

​

SMITH LP

  ​ ​

Venture

  ​ ​

Total

  ​ ​

SMITH LP

  ​ ​

Venture

  ​ ​

Total

​

(In thousands)

Balance, beginning of period

$

397,831

​

$

113,511

​

$

511,342

​

$

423,632

​

$

—

​

$

423,632

Redemptions

 

(11,034)

​

 

—

​

 

(11,034)

​

 

(10,854)

​

 

—

​

 

(10,854)

LTIP Units issued in lieu of cash compensation (1)

 

4,250

​

 

—

​

 

4,250

​

 

3,048

​

 

—

​

 

3,048

Net income (loss)

 

(17,600)

​

 

(131)

​

 

(17,731)

​

 

(11,940)

​

 

22

​

 

(11,918)

Other comprehensive income (loss)

 

2,062

​

 

—

​

 

2,062

​

 

(3,446)

​

 

—

​

 

(3,446)

Contributions (distributions), net

 

(2,909)

​

 

(1,414)

​

 

(4,323)

​

 

(2,898)

​

 

100,000

​

 

97,102

Share-based compensation expense

 

14,829

​

 

—

​

 

14,829

​

 

13,015

​

 

—

​

 

13,015

Adjustment to redemption value

 

(7,812)

​

 

1,129

​

 

(6,683)

​

 

18,646

​

 

13,978

​

 

32,624

Balance, end of period

$

379,617

​

$

113,095

​

$

492,712

​

$

429,203

​

$

114,000

​

$

543,203

(1)See Note 11 for additional information.