Co-investments

9 Months Ended

Sep. 30, 2020

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

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, Wesco I, LLC ("Wesco I"), Wesco III, LLC ("Wesco III"), Wesco IV, LLC ("Wesco IV"), and Wesco V, own, operate, and develop apartment communities. The carrying values of the Company's co-investments as of September 30, 2020 and December 31, 2019 are as follows ($ in thousands, except parenthetical amounts):


	Weighted Average Company Ownership Percentage (1)		September 30, 2020		December 31, 2019
Ownership interest in:
CPPIB (2)	—	%	$	—	$	345,466
Wesco I, Wesco III, Wesco IV, and Wesco V	51	%	181,621		216,756
BEXAEW, BEX II, BEX III, and BEX IV	50	%	154,367		160,888
Other	47	%	27,618		20,351
Total operating and other co-investments, net			363,606		743,461
Total predevelopment and development co-investments	50	%	170,314		146,944
Total preferred interest co-investments (includes related party investments of $79.3 million and $73.2 million as of September 30, 2020 and December 31, 2019, respectively)			484,315		444,934
Total co-investments, net			$	1,018,235	$	1,335,339

(1) Weighted average Company ownership percentages are as of September 30, 2020.

(2) In January 2020, the Company purchased CPPIB's 45.0% interest in each of a land parcel and six communities totaling 2,020 apartment homes.

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


	September 30, 2020		December 31, 2019
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,391,064	$	4,733,762
Other assets	216,357		139,562
Total assets	$	4,607,421	$	4,873,324
Debt	$	2,692,418	$	2,442,213
Other liabilities	179,121		117,160
Equity	1,735,882		2,313,951
Total liabilities and equity	$	4,607,421	$	4,873,324
Company's share of equity	$	1,018,235	$	1,335,339


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Combined statements of income: (1)
Property revenues	$	76,581	$	84,071	$	226,125	$	249,628
Property operating expenses	(28,047)		(29,214)		(79,621)		(85,768)
Net operating income	48,534		54,857		146,504		163,860

Interest expense	(19,369)		(16,089)		(59,700)		(47,284)
General and administrative	(5,161)		(2,603)		(12,636)		(6,774)
Depreciation and amortization	(29,732)		(30,411)		(86,947)		(89,283)
Net (loss) income	$	(5,728)	$	5,754	$	(12,779)	$	20,519
Company's share of net income (2)	$	14,960	$	21,700	$	53,514	$	54,935

(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 $2.2 million and $2.0 million for the three months ended September 30, 2020 and 2019, respectively, and $6.4 million and $5.5 million for the nine months ended September 30, 2020 and 2019, respectively.