Co-investments (Tables)

6 Months Ended

Jun. 30, 2017

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]

The carrying values of the Company's co-investments as of June 30, 2017 and December 31, 2016 are as follows (in thousands, except in parenthetical):



	Ownership Percentage		June 30, 2017			December 31, 2016
Membership interest/Partnership interest in:
CPPIB	50%-55%		$	461,872		$	422,068
Wesco I, III and IV	50	%	180,005			180,687
Palm Valley ⁽¹⁾	50	%	—			68,396
BEXAEW	50	%	46,728			47,963
BEX II ⁽²⁾	50	%	(36,025		)	19,078
Other	50%-55%		41,053			43,713
Total operating co-investments, net			693,633			781,905
Total development co-investments, net	50%-55%		126,119			157,317
Total preferred interest co-investments (includes related party investments of $20.7 million and $35.9 million as of June 30, 2017 and December 31, 2016, respectively)			225,307			222,053
Total co-investments, net			$	1,045,059		$	1,161,275

(1) In January 2017, the Company purchased its joint venture partner's 50.0% interest in Palm Valley and as a result of this acquisition, the Company consolidates Palm Valley.

(2) This co-investment was classified as a liability as of June 30, 2017.

Summarized financial information for co-investments accounted for under the equity method

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



	June 30, 2017		December 31, 2016
Combined balance sheets:
Rental properties and real estate under development	$	3,460,610	$	3,807,245
Other assets	86,369		121,505
Total assets	$	3,546,979	$	3,928,750
Debt	$	1,416,292	$	1,617,639
Other liabilities	69,128		74,607
Equity ⁽¹⁾	2,061,559		2,236,504
Total liabilities and equity	$	3,546,979	$	3,928,750
Company's share of equity	$	1,045,059	$	1,161,275



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Combined statements of income:
Property revenues	$	72,111		$	69,180		$	148,016		$	144,310
Property operating expenses	(25,866		)	(24,580		)	(51,275		)	(50,401		)
Net operating income	46,245			44,600			96,741			93,909
Gain on sale of real estate	—			10,796			—			28,291
Interest expense	(14,024		)	(11,142		)	(25,945		)	(24,282		)
General and administrative	(1,917		)	(1,540		)	(3,695		)	(2,780		)
Depreciation and amortization	(28,423		)	(25,391		)	(56,327		)	(54,107		)
Net income	$	1,881		$	17,323		$	10,774		$	41,031
Company's share of net income ⁽¹⁾	$	10,308		$	14,296		$	21,207		$	29,364

(1) 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 $0.5 million and $0.9 million for the three months ended June 30, 2017 and 2016, respectively, and $1.0 million and $1.7 million for the six months ended June 30, 2017 and 2016, respectively.