Co-investments

9 Months Ended

Sep. 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, LLC ("BEXAEW"), BEX II, LLC ("BEX II"), BEX IV, LLC (""BEX IV"), 500 Folsom, Wesco I, Wesco III, LLC ("Wesco III"), Wesco IV, LLC ("Wesco IV"), Wesco V, LLC ("Wesco V"), and Wesco VI, own, operate, and develop apartment communities. The carrying values of the Company's co-investments as of September 30, 2021 and December 31, 2020 are as follows ($ in thousands, except parenthetical amounts):


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

Wesco I (2), Wesco III, Wesco IV, Wesco V, and Wesco VI	52	%	138,745		178,322
BEXAEW, BEX II, BEX III (3), BEX IV, and 500 Folsom (4)	50	%	273,557		152,309
Other	46	%	58,504		27,635
Total operating and other co-investments, net			470,806		358,266
Total development co-investments	50	%	9,965		157,433
Total preferred interest co-investments (includes related party investments of $87.5 million and $81.4 million as of September 30, 2021 and December 31, 2020, respectively)			572,053		502,311
Total co-investments, net			$	1,052,824	$	1,018,010

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

(2) As of September 30, 2021, the Company's investment in Wesco I was classified as a liability of $29.0 million.

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

(4) 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):


	September 30, 2021		December 31, 2020
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,216,981	$	4,242,611
Other assets	228,721		200,777
Total assets	$	4,445,702	$	4,443,388
Debt	$	2,705,882	$	2,611,365
Other liabilities	221,022		189,515
Equity	1,518,798		1,642,508
Total liabilities and equity	$	4,445,702	$	4,443,388
Company's share of equity	$	1,052,824	$	1,018,010


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Combined statements of income: (1)
Property revenues	$	71,195	$	76,581	$	211,359	$	226,125
Property operating expenses	(27,588)		(28,047)		(81,932)		(79,621)
Net operating income	43,607		48,534		129,427		146,504

Interest expense	(15,347)		(19,369)		(48,012)		(59,700)
General and administrative	(3,331)		(5,161)		(11,641)		(12,636)
Depreciation and amortization	(32,290)		(29,732)		(96,812)		(86,947)
Net loss	$	(7,361)	$	(5,728)	$	(27,038)	$	(12,779)
Company's share of net income (2)	$	25,433	$	14,960	$	60,692	$	53,514

(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 $2.4 million and $2.2 million for the three months ended September 30, 2021 and 2020, respectively, and $7.0 million and $6.4 million for the nine months ended September 30, 2021 and 2020, respectively.