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 September 30, 2016 and December 31, 2015 are as follows (in thousands, except in parenthetical):



	Ownership Percentage		September 30, 2016		December 31, 2015
Membership interest/Partnership interest in:
CPPIB	55	%	$	426,259	$	422,317
Wesco I, III and IV	50	%	202,531		218,902
BEXAEW	50	%	66,346		88,850
Palm Valley	50	%	68,403		68,525
Other	50%-55%		31,319		32,927
Total operating co-investments			794,858		831,521
Total development co-investments	50%-55%		141,666		98,214
Total preferred interest co-investments (includes related party investments of $35.9 million and $35.8 million of September 30, 2016 and December 31, 2015, respectively)			186,389		106,312
Total co-investments			$	1,122,913	$	1,036,047

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



	September 30, 2016		December 31, 2015
Combined balance sheets: ⁽¹⁾
Rental properties and real estate under development	$	3,432,866	$	3,360,360
Other assets	118,131		96,785
Total assets	$	3,550,997	$	3,457,145
Debt	$	1,506,107	$	1,499,601
Other liabilities	90,039		92,241
Equity ⁽¹⁾	1,954,851		1,865,303
Total liabilities and equity	$	3,550,997	$	3,457,145
Company's share of equity	$	1,122,913	$	1,036,047



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Combined statements of income: ⁽¹⁾
Property revenues	$	72,124		$	65,869		$	216,434		$	191,458
Property operating expenses	(24,976		)	(23,094		)	(75,377		)	(69,232		)
Net operating income	47,148			42,775			141,057			122,226
Gain on sale of real estate	—			—			28,291			14
Interest expense	(10,978		)	(11,314		)	(35,260		)	(33,727		)
General and administrative	(1,496		)	(1,335		)	(4,276		)	(4,414		)
Depreciation and amortization	(25,569		)	(26,574		)	(79,676		)	(76,220		)
Net income	$	9,105		$	3,552		$	50,136		$	7,879
Company's share of net income ⁽²⁾	$	9,568		$	7,179		$	38,932		$	15,962

(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 $0.8 million and $0.8 million for the three months ended September 30, 2016 and 2015, respectively and $2.5 million and $2.9 million for the nine months ended September 30, 2016 and 2015, respectively.