Co-investments

6 Months Ended

Jun. 30, 2021

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 IV, 500 Folsom, 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, 2021 and December 31, 2020 are as follows ($ in thousands, except parenthetical amounts):


	Weighted Average Company Ownership Percentage (1)		June 30, 2021		December 31, 2020
Ownership interest in:

Wesco I, Wesco III, Wesco IV, and Wesco V	51	%	172,709		178,322
BEXAEW, BEX II, BEX III (2), BEX IV, and 500 Folsom (3)	50	%	276,409		152,309
Other	47	%	48,193		27,635
Total operating and other co-investments, net			497,311		358,266
Total development co-investments	50	%	9,532		157,433
Total preferred interest co-investments (includes related party investments of $85.3 million and $81.4 million as of June 30, 2021 and December 31, 2020, respectively)			530,427		502,311
Total co-investments, net			$	1,037,270	$	1,018,010

(1) Weighted average Company ownership percentages are as of June 30, 2021.

(2) In June 2021, the Company purchased the additional 50% interest in BEX III.

(3) 500 Folsom had not stabilized as of December 31, 2020. Its carrying value was included in the development co-investments balance as of December 31, 2020.

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


	June 30, 2021		December 31, 2020
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,082,553	$	4,242,611
Other assets	225,482		200,777
Total assets	$	4,308,035	$	4,443,388
Debt	$	2,529,501	$	2,611,365
Other liabilities	195,048		189,515
Equity	1,583,486		1,642,508
Total liabilities and equity	$	4,308,035	$	4,443,388
Company's share of equity	$	1,037,270	$	1,018,010


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Combined statements of income: (1)
Property revenues	$	68,405	$	72,175	$	140,164	$	149,544
Property operating expenses	(27,013)		(25,859)		(54,344)		(51,574)
Net operating income	41,392		46,316		85,820		97,970

Interest expense	(15,965)		(19,478)		(32,665)		(40,331)
General and administrative	(4,029)		(3,392)		(8,310)		(7,475)
Depreciation and amortization	(31,813)		(28,778)		(64,522)		(57,215)
Net loss	$	(10,415)	$	(5,332)	$	(19,677)	$	(7,051)
Company's share of net income (2)	$	18,248	$	17,257	$	35,259	$	38,554

(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 $2.3 million and $2.1 million for the three months ended June 30, 2021 and 2020, respectively, and $4.6 million and $4.2 million for the six months ended June 30, 2021 and 2020, respectively.