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. In addition to the Company's joint ventures with BEXAEW, BEX II, and BEX III, the Company has joint venture investments with the Canadian Pension Plan Investment Board (“CPPIB”), Wesco I, LLC (“Wesco I”), Wesco III, LLC (“Wesco III”), Wesco IV, LLC (“Wesco IV”), and Wesco V, LLC (“Wesco V”). The carrying values of the Company's co-investments as of June 30, 2018 and December 31, 2017 are as follows ($ in thousands, except parenthetical amounts):



	Weighted Average Company Ownership Percentage ⁽¹⁾		June 30, 2018		December 31, 2017
Ownership interest in:
CPPIB	54	%	$	492,382	$	500,287
Wesco I, Wesco III, Wesco IV, and Wesco V	53	%	211,574		214,408
BEXAEW, BEX II and BEX III ⁽²⁾	50	%	120,788		13,827
Other	52	%	47,367		51,810
Total operating and other co-investments, net			872,111		780,332
Total development co-investments, net	50	%	76,525		73,770
Total preferred interest co-investments (includes related party investments of $36.4 million and $15.7 million as of June 30, 2018 and December 31, 2017, respectively)			342,684		265,156
Total co-investments, net			$	1,291,320	$	1,119,258

(1) Weighted average Company ownership percentages are as of June 30, 2018.

(2) As of December 31, 2017, the Company's investment in BEX II was classified as a liability of $36.7 million.

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



	June 30, 2018		December 31, 2017
Combined balance sheets: ⁽¹⁾
Rental properties and real estate under development	$	4,032,421	$	3,722,778
Other assets	166,521		110,333
Total assets	$	4,198,942	$	3,833,111
Debt	$	1,948,724	$	1,705,051
Other liabilities	64,982		45,515
Equity	2,185,236		2,082,545
Total liabilities and equity	$	4,198,942	$	3,833,111
Company's share of equity	$	1,291,320	$	1,155,984



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Combined statements of income: ⁽¹⁾
Property revenues	$	81,348		$	72,111		$	162,190		$	148,016
Property operating expenses	(26,567		)	(25,866		)	(53,636		)	(51,275		)
Net operating income	54,781			46,245			108,554			96,741
Interest expense	(13,639		)	(14,024		)	(30,374		)	(25,945		)
General and administrative	(2,388		)	(1,917		)	(3,880		)	(3,695		)
Depreciation and amortization	(31,317		)	(28,423		)	(62,479		)	(56,327		)
Net income	$	7,437		$	1,881		$	11,821		$	10,774
Company's share of net income ⁽²⁾	$	15,049		$	10,308		$	47,823		$	21,207

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

(2) Includes the Company's share of equity income from joint ventures and preferred equity co-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 $0.3 million and $0.5 million for the three months ended June 30, 2018 and 2017, respectively, and $0.7 million and $1.0 million for the six months ended June 30, 2018 and 2017, respectively.