Co-investments

6 Months Ended

Jun. 30, 2019

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

Co-investments

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, including BEXAEW, BEX II, and BEX III, 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"), own, operate, and develop apartment communities. The carrying values of the Company's co-investments as of June 30, 2019 and December 31, 2018 are as follows ($ in thousands, except parenthetical amounts):

	Weighted Average Company Ownership Percentage (1)		June 30, 2019		December 31, 2018
Ownership interest in:
CPPIB	54	%	$	473,746	$	482,507
Wesco I, Wesco III, Wesco IV, and Wesco V	52	%	187,446		194,890
BEXAEW, BEX II, and BEX III	50	%	117,607		121,780
Other	49	%	15,071		34,093
Total operating and other co-investments, net			793,870		833,270
Total pre-development and development co-investments	50	%	120,249		94,060
Total preferred interest co-investments (includes related party investments of $68.6 million and $51.8 million as of June 30, 2019 and December 31, 2018, respectively)			409,962		372,810
Total co-investments, net			$	1,324,081	$	1,300,140

(1) Weighted average Company ownership percentages are as of June 30, 2019.

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

	June 30, 2019		December 31, 2018
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,419,528	$	4,367,987
Other assets	81,172		104,119
Total assets	$	4,500,700	$	4,472,106
Debt	$	2,170,899	$	2,190,764
Other liabilities	122,353		106,316
Equity	2,207,448		2,175,026
Total liabilities and equity	$	4,500,700	$	4,472,106
Company's share of equity	$	1,324,081	$	1,300,140

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Combined statements of income: (1)
Property revenues	$	81,832		$	81,348		$	165,557		$	162,190
Property operating expenses	(27,835		)	(26,567		)	(56,554		)	(53,636		)
Net operating income	53,997			54,781			109,003			108,554
Interest expense	(16,080		)	(13,639		)	(31,195		)	(30,374		)
General and administrative	(2,243		)	(2,388		)	(4,171		)	(3,880		)
Depreciation and amortization	(28,937		)	(31,317		)	(58,872		)	(62,479		)
Net income	$	6,737		$	7,437		$	14,765		$	11,821
Company's share of net income (2)	$	16,959		$	15,049		$	33,235		$	47,823

(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 $1.8 million and $0.3 million for the three months ended June 30, 2019 and 2018, respectively, and $3.5 million and $0.7 million for the six months ended June 30, 2019 and 2018, respectively.