Co-investments

3 Months Ended

Mar. 31, 2026

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

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. The Company also invests in five unconsolidated technology co-investments with an aggregate commitment of $86.0 million as of both March 31, 2026 and December 31, 2025. The unconsolidated technology co-investment balance of these investments was $92.5 million, and $74.7 million as of March 31, 2026 and December 31, 2025, respectively.

The carrying values of the Company’s co-investments as of March 31, 2026 and December 31, 2025 were as follows ($ in thousands, except in parenthetical):


	Weighted Average Company Ownership Percentage (1)	March 31, 2026		December 31, 2025
Ownership interest in:
Wesco I, Wesco III, Wesco IV, Wesco V and Wesco VI (2)	54%	$	71,147	$	73,002
BEX IV and 500 Folsom	50%	134,147		135,518
Other (2)	53%	112,610		95,851
Total operating and other co-investments, net		317,904		304,371

Total preferred equity co-investments (3) (includes related party investments of $53.7 million and $52.8 million as of March 31, 2026 and December 31, 2025, respectively. See Note 6, Related Party Transactions, for further discussion)		232,093		227,342
Total co-investments, net		$	549,997	$	531,713

(1)Weighted average company ownership percentages are as of March 31, 2026.

(2)As of March 31, 2026 and December 31, 2025, the Company’s investments in Wesco I, Wesco III, Wesco IV, and Expo were classified as a liability of $99.3 million and $98.8 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 unconsolidated technology co-investments.

(3)Includes one preferred equity investment held with Wesco VII, LLC.

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


	March 31, 2026		December 31, 2025
Combined balance sheets: (1)
Rental properties and real estate under development	$	3,223,302	$	3,220,390
Other assets	229,504		194,413
Total assets	$	3,452,806	$	3,414,803
Debt	$	2,413,491	$	2,412,106
Other liabilities	181,018		163,358
Equity	858,297		839,339
Total liabilities and equity	$	3,452,806	$	3,414,803


	Three Months Ended March 31,
	2026		2025
Combined statements of income: (1)
Property revenues	$	75,055	$	86,306
Property operating expenses	(28,884)		(32,702)
Net operating income	46,171		53,604

Interest expense	(19,960)		(27,301)
General and administrative	(3,920)		(4,206)
Depreciation and amortization	(28,028)		(36,587)
Net loss	$	(5,737)	$	(14,490)
Company’s share of net income (2)	$	23,615	$	13,209

(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 $1.3 million and $1.2 million for the three months ended March 31, 2026 and 2025, respectively.