Co-investments

9 Months Ended

Sep. 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, BEX III, and BEX IV, 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 September 30, 2019 and December 31, 2018 are as follows ($ in thousands, except parenthetical amounts):

	Weighted Average Company Ownership Percentage (1)		September 30, 2019		December 31, 2018
Ownership interest in:
CPPIB	54	%	$	469,288	$	482,507
Wesco I, Wesco III, Wesco IV, and Wesco V	52	%	212,808		194,890
BEXAEW, BEX II, BEX III, and BEX IV	50	%	161,467		121,780
Other	48	%	20,281		34,093
Total operating and other co-investments, net			863,844		833,270
Total pre-development and development co-investments	50	%	137,626		94,060
Total preferred interest co-investments (includes related party investments of $70.9 million and $51.8 million as of September 30, 2019 and December 31, 2018, respectively)			412,391		372,810
Total co-investments, net			$	1,413,861	$	1,300,140

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

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

	September 30, 2019		December 31, 2018
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,779,685	$	4,367,987
Other assets	110,364		104,119
Total assets	$	4,890,049	$	4,472,106
Debt	$	2,316,618	$	2,190,764
Other liabilities	146,643		106,316
Equity	2,426,788		2,175,026
Total liabilities and equity	$	4,890,049	$	4,472,106
Company's share of equity	$	1,413,861	$	1,300,140

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Combined statements of income: (1)
Property revenues	$	84,071		$	84,820		$	249,628		$	247,010
Property operating expenses	(29,214		)	(27,779		)	(85,768		)	(81,415		)
Net operating income	54,857			57,041			163,860			165,595
Interest expense	(16,089		)	(15,805		)	(47,284		)	(46,179		)
General and administrative	(2,603		)	(1,254		)	(6,774		)	(5,134		)
Depreciation and amortization	(30,411		)	(32,833		)	(89,283		)	(95,312		)
Net income	$	5,754		$	7,149		$	20,519		$	18,970
Company's share of net income (2)	$	21,700		$	16,788		$	54,935		$	64,611

(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 and $0.7 million for the three months ended September 30, 2019 and 2018, respectively, and $5.5 million and $1.4 million for the nine months ended September 30, 2019 and 2018, respectively.