Company: BHR-PD
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001574085-25-000092
Chunk: 153

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 in Braemar OP (in thousands)$17,994 $29,964 Adjustments to redeemable noncontrolling interests (1) (in thousands)$536 $1,324 Ownership percentage of operating partnership8.51 %8.05 %____________________________________(1)    Reflects the excess of the redemption value over the accumulated historical cost.We allocated net (income) loss to the redeemable noncontrolling interests as illustrated in the table below (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net (income) loss attributable to redeemable noncontrolling interests in operating partnership$1,489 $1,919 $1,751 $1,623 Distributions declared to holders of common units, LTIP units and Performance LTIP units$271 $368 615 734 

In June 2025, the Company exchanged approximately 1.5 million LTIP and Performance LTIP units for fully vested shares of the Company's common stock which resulted in no adjustments to equity-based compensation expense because the estimated fair value of the units immediately before the exchange was equal to the estimated fair value of the common stock immediately after the exchange. The exchange was accounted for in the same manner as a redemption by the holder of common units that was settled by the Company in shares of the Company's common stock, in which the greater of the historical cost or fair value of the underlying LTIP or Performance LTIP units as of the exchange date was reclassified from mezzanine equity to permanent equity. 

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BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

The following table presents the common units redeemed/exchanged for common stock (in thousands):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Units redeemed/exchanged1,465 — 1,922 $— Fair value of common units redeemed (1)$3,516 $— $4,897 — ____________________________________(1)    The redemption value is the greater of historical cost or fair value. The historical cost of the converted units for the three and six months ended June 30, 2025 was $7.0 million and $9.3 million, respectively.

The following table presents the common