Redeemable Noncontrolling Interests

3 Months Ended

Mar. 31, 2024

Redeemable noncontrolling interests on our consolidated balance sheets include the ownership interests of our partners in LW Redstone Company, LLC and Stevens Investors, LLC due to the partners’ rights to require us to acquire their interests. Effective in June 2023, these rights expired for our Stevens Investors, LLC partners, which resulted in our reclassification of their interests from redeemable noncontrolling interests to the noncontrolling interests in subsidiaries section of equity. The table below sets forth the activity for redeemable noncontrolling interests (in thousands):


	For the Three Months Ended March 31,
	2024		2023
Beginning balance	$	23,580	$	26,293

Distributions to noncontrolling interests	(468)		(763)
Net income attributable to noncontrolling interests	469		699
Adjustments for changes in fair value of interests	(615)		(781)

Ending balance	$	22,966	$	25,448

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, occupancy projections and estimated operating and development expenditures.