Quarterly report pursuant to Section 13 or 15(d)

Redeemable Noncontrolling Interests

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Redeemable Noncontrolling Interests
6 Months Ended
Jun. 30, 2023
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interests Redeemable Noncontrolling Interests
Redeemable noncontrolling interests on our consolidated balance sheets includes 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 Six Months Ended June 30,
2023 2022
Beginning balance $ 26,293  $ 26,898 
Distributions to noncontrolling interests (1,377) (1,375)
Net income attributable to noncontrolling interests 1,262  1,306 
Adjustments for changes in fair value of interests (1,293) (77)
Reclassification of Stevens Investors, LLC interests to equity (2,670) — 
Ending balance $ 22,215  $ 26,752 
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.