Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2018

Real Estate Investments, Net [Abstract]

Schedule of Real Estate Properties

The table below summarizes acquisition activity for the year ended December 31, 2018 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Quarter in 2018	Purchase Price
Marquis(1)	San Jose, CA	166	100	%	Q4	$	35.4
Total 2018		166				$	35.4

⁽¹⁾  In December 2018, the Company purchased the joint venture partner's 49.9% membership interest in the Marquis co-investment. As part of the acquisition, the Company paid $4.7 million in cash and issued Operating Partnership units valued at $7.9 million, based on an estimated property valuation of $71.0 million and an encumbrance of $45.8 million of mortgage debt.

Disposal Groups, Including Discontinued Operations

The table below summarizes disposition activity of operating communities for the year ended December 31, 2018 ($ in millions):

Property Name	Location	Apartment Homes	Essex Ownership Percentage		Ownership	Quarter in 2018	Sales Price		Gains
Domain	San Diego, CA	379	100	%	EPLP	Q2	$	132.0	$	22.3
8th & Hope	Los Angeles, CA	290	100	%	EPLP	Q4	220.0		39.6
Total 2018		669					$	352.0	$	61.9

Summary of Co Investment

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

	Weighted Average Essex Ownership		December 31,
	Percentage (1)		2018		2017
Ownership interest in:
CPPIB	54	%	$	482,507	$	500,287
Wesco I, Wesco III, Wesco IV, and Wesco V	52	%	194,890		214,408
BEXAEW, BEX II and BEX III (2)	50	%	121,780		13,827
Other	51	%	34,093		51,810
Total operating and other co-investments, net			833,270		780,332
Total pre-development and development co-investments	50	%	94,060		73,770
Total preferred interest co-investments (includes related party investments of $51.8 million and $15.7 million as of December 31, 2018 and December 31, 2017, respectively - FN 6 - Related Party Transactions for further discussion)			372,810		265,156
Total co-investments, net			$	1,300,140	$	1,119,258

⁽¹⁾  Weighted average Essex ownership percentages are as of December 31, 2018.

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

Summarized Financial Statement for Co Investment Accounted for Under the Equity Method

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

	December 31,
	2018		2017
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,367,987	$	3,722,778
Other assets	104,119		110,333
Total assets	$	4,472,106	$	3,833,111
Debt	$	2,190,764	$	1,705,051
Other liabilities	106,316		45,515
Equity	2,175,026		2,082,545
Total liabilities and equity	$	4,472,106	$	3,833,111
Company's share of equity	$	1,300,140	$	1,155,984

	Years ended December 31,
	2018			2017			2016
Combined statements of income: (1)
Property revenues	$	332,164		$	312,841		$	289,011
Property operating expenses	(107,584		)	(110,583		)	(99,637		)
Net operating income	224,580			202,258			189,374
Gain on sale of real estate	24,218			90,663			28,291
Interest expense	(63,913		)	(62,844		)	(46,894		)
General and administrative	(6,379		)	(9,091		)	(7,448		)
Depreciation and amortization	(126,485		)	(118,048		)	(103,986		)
Net income	$	52,021		$	102,938		$	59,337
Company's share of net income (2)	$	89,132		$	86,445		$	48,698

⁽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 $2.0 million, $1.9 million, and $3.4 million for the years ended December 31, 2018,2017, and 2016, respectively.