Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2019

The table below summarizes acquisition activity for the year ended December 31, 2019 ($ in millions):


⁽¹⁾	In March 2019, the Company purchased the joint venture partner's 45% membership interest in the One South Market co-investment based on an estimated property valuation of $179.0 million. In conjunction with the acquisition, $86.0 million of mortgage debt that encumbered the property was repaid.


⁽²⁾	In June 2019, the Company acquired Brio for a total contract price of $164.9 million in a DownREIT transaction. As part of the acquisition, the Company assumed $98.7 million of mortgage debt in the community. Based on a VIE analysis performed by the Company, the property was consolidated.

The carrying values of the Company’s co-investments as of December 31, 2019 and 2018 are as follows ($ in thousands, except in parenthetical):



	Weighted Average Essex Ownership		December 31,
	Percentage⁽¹⁾		2019		2018
Ownership interest in:
CPPIB	55	%	$	345,466	$	482,507
Wesco I, Wesco III, Wesco IV, and Wesco V	51	%	216,756		194,890
BEXAEW, BEX II, BEX III, and BEX IV	50	%	160,888		121,780
Other	48	%	20,351		34,093
Total operating and other co-investments, net			743,461		833,270
Total predevelopment and development co-investments	50	%	146,944		94,060
Total preferred interest co-investments (includes related party investments of $73.2 million and $51.8 million as of December 31, 2019 and December 31, 2018, respectively - Note 6 - Related Party Transactions for further discussion)			444,934		372,810
Total co-investments, net			$	1,335,339	$	1,300,140


⁽¹⁾	Weighted average Company ownership percentages are as of December 31, 2019.

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



	December 31,
	2019		2018
Combined balance sheets:⁽¹⁾
Rental properties and real estate under development	$	4,733,762	$	4,367,987
Other assets	139,562		104,119
Total assets	$	4,873,324	$	4,472,106
Debt	$	2,442,213	$	2,190,764
Other liabilities	117,160		106,316
Equity	2,313,951		2,175,026
Total liabilities and equity	$	4,873,324	$	4,472,106
Company's share of equity	$	1,335,339	$	1,300,140



	Years ended December 31,
	2019			2018			2017
Combined statements of income: ⁽¹⁾
Property revenues	$	336,922		$	332,164		$	312,841
Property operating expenses	(115,658		)	(107,584		)	(110,583		)
Net operating income	221,264			224,580			202,258
Gain on sale of real estate	112,918			24,218			90,663
Interest expense	(65,665		)	(63,913		)	(62,844		)
General and administrative	(9,575		)	(6,379		)	(9,091		)
Depreciation and amortization	(121,006		)	(126,485		)	(118,048		)
Net income	$	137,936		$	52,021		$	102,938
Company's share of net income ⁽²⁾	$	112,136		$	89,132		$	86,445


⁽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 $7.5 million, $2.0 million, and $1.9 million for the years ended December 31, 2019, 2018, and 2017, respectively.