Co-investments

The Company has co-investments, which are accounted for under the equity method. The co-investments own, operate and develop apartment communities. The following table details the carrying value of Company's co-investments (in thousands):



	March 31, 2015		December 31, 2014
Membership interest/Partnership interest in:
Wesco I and III	$	186,667	$	188,853
Fund II	232		696
Expo	6,877		7,352
The Huxley	—		11,471
CPPIB	170,501		169,621
Wesco IV	67,904		67,937
BEXAEW	93,842		97,686
Palm Valley	69,817		70,186
Total operating co-investments	595,840		613,802
Membership interest in:
Limited liability companies with CPPIB that own and are developing Epic Phase III, Mosso I and II, Park 20, The Emme, Moorpark, The Village, The Owens, and Hacienda	283,785		268,016
One South Market	31,300		30,919
The Dylan	—		7,874
Century Towers	13,475		13,121
500 Folsom	25,824		—
Total development co-investments	354,384		319,930
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% (matures in May 2016)	16,675		16,571
Preferred interest in a related party limited liability company that owned Madison Park at Anaheim with a preferred return of 9% (matures in September 2020) ⁽¹⁾	13,824		13,824
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% (redeemed for $11.1 million in March 2015)	—		10,396
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% (matures in August 2016 with one one-year extension option)	10,314		10,011
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10.0% (matures in June 2018 with one one-year extension option)	13,477		13,145
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of 12.0% (matures in January 2019)	13,548		13,150
Preferred interest in a limited liability company that owns Century Towers (matures in August 2019)⁽²⁾	19,528		12,357
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 9% (matures in January 2023)	19,708		19,237
Total preferred interest co-investments	107,074		108,691
Total co-investments	$	1,057,298	$	1,042,423

(1) The Madison Park at Anaheim property was sold during the quarter ended March 31, 2015 and the Company's investment is now collateralized by cash.

(2) The Company has committed to a total preferred equity investment in the project of $27.0 million at an effective preferred return rate of 8.1%. As of March 31, 2015 the Company has made a preferred equity investment of $19.0 million.

The combined summarized financial information of co-investments are as follows (in thousands).



	March 31, 2015		December 31, 2014
Combined balance sheets:
Rental properties and real estate under development	$	3,425,781	$	3,426,574
Other assets	181,856		107,902
Total assets	$	3,607,637	$	3,534,476
Debt	$	1,450,210	$	1,568,398
Other liabilities	158,909		91,579
Equity (1)	1,998,518		1,874,499
Total liabilities and equity	$	3,607,637	$	3,534,476
Company's share of equity	$	1,057,298	$	1,042,423



	Three Months Ended March 31,
	2015			2014
Combined statements of income:
Property revenues	$	63,498		$	27,960
Property operating expenses	(22,954		)	(11,560		)
Net operating income	40,544			16,400
Gain on sale of real estate	14			11,369
Interest expense	(11,316		)	(6,023		)
General and administrative	(1,606		)	(1,388		)
Equity income from co-investments (2)	—			4,759
Depreciation and amortization	(25,381		)	(10,693		)
Net income	$	2,255		$	14,424
Company's share of net income (3)	$	4,311		$	10,526

(1) Includes preferred equity investments held by the Company.

(2) Represents income from Wesco II's preferred equity investment in Park Merced.

(3) Includes the Company's share of equity income from preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments.