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Co-investments | 9 Months Ended
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Sep. 30, 2025
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] |
Co-investments | Co-investments The Company has joint ventures which are accounted for under the equity method. The co-investments’ accounting policies are similar to the Company’s accounting policies. The co-investments typically own, operate, and develop apartment home communities. Additionally, the Company has invested in five unconsolidated technology co-investments and, as of September 30, 2025, the co-investment balance of these investments was $71.8 million, and the aggregate commitment was $86.0 million. As of December 31, 2024, the Company had five unconsolidated technology co-investments and the co-investment balance of these investments was $57.3 million and the aggregate commitment was $86.0 million. In September 2025, Wesco V, LLC, a joint venture in which the Company owns a 50.0% interest, sold one of its apartment home communities named 8 th & Republican for a total contract price of $94.9 million. The Company recorded a $5.2 million gain from the sale as equity income from co-investments within the condensed consolidated statements of income and comprehensive income. The carrying values of the Company’s co-investments as of September 30, 2025 and December 31, 2024 were as follows ($ in thousands, except in parenthetical):
| Weighted Average Company Ownership Percentage (1) |  | September 30, 2025 |  | December 31, 2024
Ownership interest in: |  |  |  |  |
Wesco I, Wesco III, Wesco IV, Wesco V and Wesco VI (2) | 54% |  | $ | 78,700 |  |  | $ | 147,232 |
BEX IV and 500 Folsom | 50% |  | 138,170 |  |  | 146,142 |
Other (2)(3) | 53% |  | 94,500 |  |  | 86,089 |
Total operating and other co-investments, net |  |  | 311,370 |  |  | 379,463 |
Total preferred equity co-investments (4) (includes related party investments of $51.6 million and $48.1 million as of September 30, 2025 and December 31, 2024, respectively. See Note 6, Related Party Transactions, for further discussion) |  |  | 400,975 |  |  | 476,278 |
Total co-investments, net |  |  | $ | 712,345 |  |  | $ | 855,741 |
(1)Weighted average company ownership percentages are as of September 30, 2025. (2)As of September 30, 2025 and December 31, 2024, the Company’s investments in Wesco I, Wesco III, Wesco IV, and Expo were classified as a liability of $95.9 million and $79.3 million, respectively, due to distributions received in excess of the Company’s investment. (3)The weighted average company ownership percentage excludes the Company’s investments in unconsolidated technology co-investments. (4)Including one preferred equity investment held with Wesco VII, LLC. The combined summarized financial information of co-investments was as follows ($ in thousands):
| September 30, 2025 |  | December 31, 2024
Combined balance sheets: (1) |  |  |
Rental properties and real estate under development | $ | 3,522,699 |  |  | $ | 4,094,826 |
Other assets | 188,891 |  |  | 277,420 |
Total assets | $ | 3,711,590 |  |  | $ | 4,372,246 |
Debt | $ | 2,668,457 |  |  | $ | 3,001,303 |
Other liabilities | 231,788 |  |  | 235,111 |
Equity | 811,345 |  |  | 1,135,832 |
Total liabilities and equity | $ | 3,711,590 |  |  | $ | 4,372,246 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Combined statements of income: (1) |  |  |  |  |  |  |
Property revenues | $ | 84,580 |  |  | $ | 98,665 |  |  | $ | 255,455 |  |  | $ | 303,593 |
Property operating expenses | (32,008) |  |  | (35,276) |  |  | (95,864) |  |  | (114,193) |
Net operating income | 52,572 |  |  | 63,389 |  |  | 159,591 |  |  | 189,400 |
Gain on sale of real estate | 10,378 |  |  | — |  |  | 10,378 |  |  | — |
Interest expense | (26,565) |  |  | (37,985) |  |  | (82,003) |  |  | (114,771) |
General and administrative | (4,431) |  |  | (1,449) |  |  | (12,995) |  |  | (16,137) |
Depreciation and amortization | (35,052) |  |  | (41,817) |  |  | (107,863) |  |  | (131,419) |
Net loss | $ | (3,098) |  |  | $ | (17,862) |  |  | $ | (32,892) |  |  | $ | (72,927) |
Company’s share of net income (2) | $ | 17,798 |  |  | $ | 11,649 |  |  | $ | 39,984 |  |  | $ | 33,667 |
(1)Includes preferred equity investments held by the Company and excludes investments in unconsolidated 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 $1.3 million and $1.2 million for the three months ended September 30, 2025 and 2024, respectively, and $3.8 million and $3.4 million for the nine months ended September 30, 2025 and 2024, respectively.

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