Co-investments (Tables)

9 Months Ended

Sep. 30, 2023

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

The carrying values of the Company's co-investments as of September 30, 2023 and December 31, 2022 are as follows ($ in thousands, except parenthetical amounts):


	Weighted Average Company Ownership Percentage (1)		September 30, 2023		December 31, 2022
Ownership interest in:
Wesco I, Wesco III, Wesco IV, Wesco V, and Wesco VI (2)	54	%	$	164,756	$	178,552
BEXAEW, BEX II, BEX IV, and 500 Folsom	50	%	228,926		238,537
Other (3)	52	%	67,653		74,742
Total operating and other co-investments, net			461,335		491,831
Total development co-investments	51	%	14,612		12,994
Total preferred interest co-investments (includes related party investments of $81.5 million and $87.1 million as of September 30, 2023 and December 31, 2022, respectively. See Note 6 - Related Party Transactions for further discussion)			606,882		580,134
Total co-investments, net			$	1,082,829	$	1,084,959

(1) Weighted average Company ownership percentages are as of September 30, 2023.

(2) As of September 30, 2023 and December 31, 2022, the Company's investments in Wesco I, Wesco III, and Wesco IV were classified as a liability of $47.9 million and $41.7 million, respectively, due to distributions in excess of the Company's investment.

(3) As of September 30, 2023 and December 31, 2022, the Company's investments in Expo and Century Towers were classified as a liability of $2.8 million and $0.8 million, respectively, due to distributions received in excess of the Company's investment.

The weighted average Company ownership percentage excludes the Company's investments in non-core technology co-investments which are carried at fair value.

Schedule of Financial Information for Co-Investments Accounted For Under the Equity Method

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


	September 30, 2023		December 31, 2022
Combined balance sheets: (1)
Rental properties and real estate under development	$	5,099,914	$	4,955,051
Other assets	286,663		294,663
Total assets	$	5,386,577	$	5,249,714
Debt	$	3,561,368	$	3,397,113
Other liabilities	330,099		264,872
Equity	1,495,110		1,587,729
Total liabilities and equity	$	5,386,577	$	5,249,714
Company's share of equity	$	1,082,829	$	1,084,959


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Combined statements of income: (1)
Property revenues	$	103,379	$	94,791	$	303,926	$	272,967
Property operating expenses	(37,603)		(36,950)		(116,549)		(102,252)
Net operating income	65,776		57,841		187,377		170,715

Interest expense	(41,802)		(27,507)		(111,800)		(67,588)
General and administrative	(1,635)		(5,028)		(13,171)		(15,387)
Depreciation and amortization	(44,704)		(42,200)		(129,009)		(120,388)
Net loss	$	(22,365)	$	(16,894)	$	(66,603)	$	(32,648)
Company's share of net income (2)	$	10,694	$	10,985	$	33,802	$	23,756

(1) Includes preferred equity investments held by the Company and excludes investments in technology co-investments.

(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 $2.0 million and $1.8 million for the three months ended September 30, 2023 and 2022, respectively, and $5.9 million and $5.4 million for the nine months ended September 30, 2023 and 2022, respectively.