Redeemable Noncontrolling Interests

3 Months Ended

Mar. 31, 2018

Our partners in two real estate joint ventures, LW Redstone Company, LLC and Stevens Investors, LLC (discussed further in Note 6), have the right to require us to acquire their respective interests at fair value; accordingly, we classify the fair value of our partners’ interests as redeemable noncontrolling interests in the mezzanine section of our consolidated balance sheets. We determine the fair value of the interests based on unobservable inputs after considering the assumptions that market participants would make in pricing the interest. We apply a discount rate to the estimated future cash flows allocable to our partners from the properties underlying the respective joint ventures. Estimated cash flows used in such analyses are based on our plans for the properties and our views of market and economic conditions, and consider items such as current and future rental rates, occupancies for the properties and comparable properties and estimated operating and capital expenditures. The table below sets forth the activity for these redeemable noncontrolling interests (in thousands):



	For the Three Months Ended March 31,
	2018			2017
Beginning balance	$	23,125		$	22,979
Distributions to noncontrolling interests	(452		)	(415		)
Net income attributable to noncontrolling interests	638			567
Adjustment to arrive at fair value of interests	537			545
Ending balance	$	23,848		$	23,676