Co-investments (Tables)

9 Months Ended

Sep. 30, 2014

Co-investments [Abstract]

Summary of Co Investment

The Company has co-investments, which are accounted for under the equity method.  The co-investments own, operate and develop apartment communities.  The following table details the Company's co-investments (in thousands):

	September 30, 2014		December 31, 2013
Membership interest/Partnership interest in:
Wesco I	$	135,875	$	142,025
Wesco III		53,411		39,073
Fund II		2,578		4,166
Expo		8,305		12,041
The Huxley		11,784		11,224
Connolly Station		47,661		45,242
Wesco IV		95,338		-
BEXAEW		89,504		-
Total operating co-investments		444,456		253,771
Membership interest in:
Limited liability companies with CPPIB that own and are developing Epic, Mosso I and II, Park 20, The Emme, and The Owens & Hacienda (1)		364,779		256,296
One South Market		30,498		17,115
The Dylan		8,396		7,321
Century Towers		13,491		-
Total development co-investments		417,164		280,732
Membership interest in Wesco II that owns a preferred equity interest in Parkmerced with a preferred return of 10.1%		95,934		94,711
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of  9.5%		16,471		15,775
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9%		13,824		13,824
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12%		10,148		9,455
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12%		9,710		8,865
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of  10.0%		12,816		-
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of  12.0%		12,754		-
Preferred interest in a limited liability company that owns Century Towers with a preferred return of  10.0%		10,000		-
Total preferred interest co-investments		181,657		142,630
Total co-investments	$	1,043,277	$	677,133

(1) Epic Phase I and II are currently in operations.  The co-investment will be moved to operating co-investment with the completion of Phase III.

Summarized Financial Statement for Co Investment Accounted for Under the Equity Method

The combined summarized balance sheet and statements of operations for co-investments are as follows (in thousands).

	September 30, 2014		December 31, 2013
Balance sheets:
Rental properties and real estate under development	$	3,084,852	$	1,953,328
Other assets		110,752		61,578
Total assets	$	3,195,604	$	2,014,906
Debt	$	1,285,954	$	667,641
Other liabilities		83,344		125,479
Equity		1,826,306		1,221,786
Total liabilities and equity	$	3,195,604	$	2,014,906
Company's share of equity	$	1,043,277	$	677,133

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Statements of operations:
Property revenues	$	51,725		$	24,796		$	128,469		$	78,913
Property operating expenses		(18,759	)		(10,170	)		(48,875	)		(29,872	)
Net property operating income		32,966			14,626			79,594			49,041
Gain on sale of real estate		-			137,845			11,369			146,663
Interest expense		(9,838	)		(6,052	)		(25,283	)		(18,924	)
General and administrative		(1,840	)		(1,419	)		(5,039	)		(4,472	)
Equity income from co-investments		4,808			-			14,351			-
Depreciation and amortization		(21,357	)		(8,718	)		(49,935	)		(29,314	)
Net income	$	4,739		$	136,282		$	25,057		$	142,994
Company's share of net income	$	4,910		$	40,802		$	21,065		$	52,295