Co-investments

The Company has joint ventures and preferred equity investments in co-investments which are accounted for under the equity method. The co-investments own, operate, and develop apartment communities. The carrying values of the Company's co-investments as of June 30, 2016 and December 31, 2015 are as follows (in thousands, except in parenthetical):



	Ownership Percentage		June 30, 2016		December 31, 2015
Membership interest/Partnership interest in:
CPPIB	55	%	$	379,311	$	376,862
Wesco I, III and IV	50	%	209,573		218,902
BEXAEW	50	%	65,636		88,850
Palm Valley	50	%	68,229		68,525
Other	50%-55%		31,517		32,927
Total operating co-investments			754,266		786,066
Total development co-investments	50%-55%		175,269		143,669
Total preferred interest co-investments (includes related party investments of $35.8 million as of both June 30, 2016 and December 31, 2015, respectively)			173,737		106,312
Total co-investments			$	1,103,272	$	1,036,047

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



	June 30, 2016		December 31, 2015
Combined balance sheets: ⁽¹⁾
Rental properties and real estate under development	$	3,327,936	$	3,360,360
Other assets	114,524		96,785
Total assets	$	3,442,460	$	3,457,145
Debt	$	1,473,705	$	1,499,601
Other liabilities	96,151		92,241
Equity ⁽¹⁾	1,872,604		1,865,303
Total liabilities and equity	$	3,442,460	$	3,457,145
Company's share of equity	$	1,103,272	$	1,036,047



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Combined statements of income: ⁽¹⁾
Property revenues	$	69,180		$	62,092		$	144,310		$	125,589
Property operating expenses	(24,580		)	(23,184		)	(50,401		)	(46,138		)
Net operating income	44,600			38,908			93,909			79,451
Gain on sale of real estate	10,796			—			28,291			14
Interest expense	(11,142		)	(11,097		)	(24,282		)	(22,413		)
General and administrative	(1,540		)	(1,473		)	(2,780		)	(3,079		)
Depreciation and amortization	(25,391		)	(24,265		)	(54,107		)	(49,646		)
Net income	$	17,323		$	2,073		$	41,031		$	4,327
Company's share of net income ⁽²⁾	$	14,296		$	4,472		$	29,364		$	8,783

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

(2) Includes the Company's share of equity income from co-investments and preferred equity investments, gain on sales of co-investments, co-investment promote income and income from early redemption of preferred equity investments. Includes related party income of $0.9 million and $0.7 million for the three months ended June 30, 2016 and 2015, respectively and $1.7 million and $1.6 million for the six months ended June 30, 2016 and 2015, respectively.