American Homes 4 Rent 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Interest Rate Risk During the six months ended June 30, 2020, the Company borrowed an additional $130.0 million, resulting in $130.0 million of outstanding variable rate debt as of June 30, 2020. We may incur additional variable rate debt in the future, including additional amounts that we may borrow under our revolving credit facility. As of June 30, 2020, assuming no change in the outstanding balance of our existing variable rate debt, a hypothetical 100 basis point increase or decrease in the London Inter-Bank Offered Rate would increase or decrease our projected annual interest expense by approximately $1.3 million or $0.2 million, respectively. This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we would consider taking actions to further mitigate our exposure to the change. However, because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure. There have been no other material changes to our market risk from those disclosed in section Part II, “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” of our 2019 Annual Report. 47