Co-investments

3 Months Ended

Mar. 31, 2022

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, LLC ("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 March 31, 2022 and December 31, 2021 are as follows ($ in thousands, except parenthetical amounts):


	Weighted Average Company Ownership Percentage (1)		March 31, 2022		December 31, 2021
Ownership interest in:
Wesco I (2), Wesco III, Wesco IV, Wesco V, and Wesco VI	52	%	$	221,781	$	168,198
BEXAEW, BEX II, BEX IV, and 500 Folsom	50	%	267,338		270,550
Other (3)	52	%	112,548		126,503
Total operating and other co-investments, net			601,667		565,251
Total development co-investments	50	%	11,836		11,076
Total preferred interest co-investments (includes related party investments of $72.6 million and $71.1 million as of March 31, 2022 and December 31, 2021, respectively)			502,193		565,930
Total co-investments, net			$	1,115,696	$	1,142,257

(1) Weighted average Company ownership percentages are as of March 31, 2022.

(2) As of March 31, 2022, the Company's investment in Wesco I was classified as a liability of $28.7 million due to distributions in excess of the Company's investment.

(3) As of March 31, 2022, the Company's investment in Expo was classified as a liability of $0.2 million due to distributions received in excess of the Company's investment. The weighted average Essex ownership percentage excludes our investments in non-core technology co-investments which are carried at fair value.

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


	March 31, 2022		December 31, 2021
Combined balance sheets: (1)
Rental properties and real estate under development	$	4,666,950	$	4,603,465
Other assets	342,271		278,411
Total assets	$	5,009,221	$	4,881,876
Debt	$	3,199,607	$	3,046,765
Other liabilities	167,238		200,129
Equity	1,642,376		1,634,982
Total liabilities and equity	$	5,009,221	$	4,881,876
Company's share of equity	$	1,115,696	$	1,142,257


	Three Months Ended March 31,
	2022		2021
Combined statements of income: (1)
Property revenues	$	84,600	$	71,759
Property operating expenses	(35,793)		(27,331)
Net operating income	48,807		44,428

Interest expense	(18,302)		(16,700)
General and administrative	(3,967)		(4,281)
Depreciation and amortization	(38,807)		(32,709)
Net loss	$	(12,269)	$	(9,262)
Company's share of net income (2)	$	21,171	$	17,011

(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 $1.8 million and $2.3 million for the three months ended March 31, 2022 and 2021, respectively.