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. The carrying values of the Company's co-investments as of September 30, 2018 and December 31, 2017 are as follows ($ in thousands, except parenthetical amounts):



	Weighted Average Company Ownership Percentage ⁽¹⁾		September 30, 2018		December 31, 2017
Ownership interest in:
CPPIB	54	%	$	487,002	$	500,287
Wesco I, Wesco III, Wesco IV, and Wesco V	52	%	187,905		214,408
BEXAEW, BEX II and BEX III ⁽²⁾	50	%	118,924		13,827
Other	51	%	46,229		51,810
Total operating and other co-investments, net			840,060		780,332
Total development co-investments, net	50	%	77,144		73,770
Total preferred interest co-investments (includes related party investments of $36.8 million and $15.7 million as of September 30, 2018 and December 31, 2017, respectively)			350,389		265,156
Total co-investments, net			$	1,267,593	$	1,119,258

(1) Weighted average Company ownership percentages are as of September 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).



	September 30, 2018		December 31, 2017
Combined balance sheets: ⁽¹⁾
Rental properties and real estate under development	$	4,221,973	$	3,722,778
Other assets	146,930		110,333
Total assets	$	4,368,903	$	3,833,111
Debt	$	2,089,414	$	1,705,051
Other liabilities	101,514		45,515
Equity	2,177,975		2,082,545
Total liabilities and equity	$	4,368,903	$	3,833,111
Company's share of equity	$	1,267,593	$	1,155,984



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Combined statements of income: ⁽¹⁾
Property revenues	$	84,820		$	76,303		$	247,010		$	224,319
Property operating expenses	(27,779		)	(27,753		)	(81,415		)	(79,028		)
Net operating income	57,041			48,550			165,595			145,291
Gain on sale of real estate	—			10,058			—			10,058
Interest expense	(15,805		)	(13,718		)	(46,179		)	(39,663		)
General and administrative	(1,254		)	(2,452		)	(5,134		)	(6,147		)
Depreciation and amortization	(32,833		)	(27,884		)	(95,312		)	(84,211		)
Net income	$	7,149		$	14,554		$	18,970		$	25,328
Company's share of net income ⁽²⁾	$	16,788		$	19,727		$	64,611		$	40,934

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

(2) Includes the Company's share of equity income from joint ventures 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 $0.7 million and $0.5 million for the three months ended September 30, 2018 and 2017, respectively, and $1.4 million and $1.5 million for the nine months ended September 30, 2018 and 2017, respectively.