American Homes 4 Rent 10-Q

Item 1. Financial Statements American Homes 4 Rent Condensed Consolidated Balance Sheets (Amounts in thousands, except share data) March 31, 2021 December 31, 2020 (Unaudited) Assets Single-family properties: Land $ 1,860,879 $ 1,836,798 Buildings and improvements 8,301,797 8,163,023 Single-family properties in operation 10,162,676 9,999,821 Less: accumulated depreciation ( 1,832,510 ) ( 1,754,433 ) Single-family properties in operation, net 8,330,166 8,245,388 Single-family properties under development and development land 554,765 510,365 Single-family properties held for sale, net 115,994 129,026 Total real estate assets, net 9,000,925 8,884,779 Cash and cash equivalents 75,237 137,060 Restricted cash 136,867 128,017 Rent and other receivables 49,714 41,544 Escrow deposits, prepaid expenses and other assets 177,936 163,171 Investments in unconsolidated joint ventures 100,077 93,109 Asset-backed securitization certificates 25,666 25,666 Goodwill 120,279 120,279 Total assets $ 9,686,701 $ 9,593,625 Liabilities Revolving credit facility $ 80,000 $ — Asset-backed securitizations, net 1,922,734 1,927,607 Unsecured senior notes, net 890,143 889,805 Accounts payable and accrued expenses 307,644 298,949 Amounts payable to affiliates — 4,834 Total liabilities 3,200,521 3,121,195 Commitments and contingencies (see Note 15) Equity Shareholders’ equity: Class A common shares ($ 0.01 par value per share, 450,000,000 shares authorized, 316,617,810 and 316,021,385 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively) 3,166 3,160 Class B common shares ($ 0.01 par value per share, 50,000,000 shares authorized, 635,075 shares issued and outstanding at March 31, 2021 and December 31, 2020) 6 6 Preferred shares ($ 0.01 par value per share, 100,000,000 shares authorized, 35,350,000 shares issued and outstanding at March 31, 2021 and December 31, 2020) 354 354 Additional paid-in capital 6,234,456 6,223,256 Accumulated deficit ( 445,103 ) ( 443,522 ) Accumulated other comprehensive income 13,576 5,840 Total shareholders’ equity 5,806,455 5,789,094 Noncontrolling interest 679,725 683,336 Total equity 6,486,180 6,472,430 Total liabilities and equity $ 9,686,701 $ 9,593,625 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 American Homes 4 Rent Condensed Consolidated Statements of Operations (Amounts in thousands, except share and per share data) (Unaudited) For the Three Months Ended March 31, 2021 2020 Rents and other single-family property revenues $ 312,573 $ 287,342 Expenses: Property operating expenses 118,694 107,497 Property management expenses 23,699 23,276 General and administrative expense 15,205 11,266 Interest expense 28,005 29,715 Acquisition and other transaction costs 4,846 2,147 Depreciation and amortization 90,071 82,821 Total expenses 280,520 256,722 Gain on sale and impairment of single-family properties and other, net 16,069 6,319 Other income and expense, net 799 588 Net income 48,921 37,527 Noncontrolling interest 4,925 3,501 Dividends on preferred shares 13,782 13,782 Net income attributable to common shareholders $ 30,214 $ 20,244 Weighted-average common shares outstanding: Basic 316,982,460 300,813,069 Diluted 317,441,397 301,305,068 Net income attributable to common shareholders per share: Basic $ 0.10 $ 0.07 Diluted $ 0.09 $ 0.07 The accompanying notes are an integral part of these condensed consolidated financial statements. 2 American Homes 4 Rent Condensed Consolidated Statements of Comprehensive Income (Amounts in thousands) (Unaudited) For the Three Months Ended March 31, 2021 2020 Net income $ 48,921 $ 37,527 Other comprehensive income (loss): Gain (loss) on cash flow hedging instruments: Unrealized gain on cash flow hedging instrument 9,230 — Reclassification adjustment for amortization of interest expense included in net income ( 241 ) ( 241 ) Other comprehensive income (loss) 8,989 ( 241 ) Comprehensive income 57,910 37,286 Comprehensive income attributable to noncontrolling interests 6,185 3,466 Dividends on preferred shares 13,782 13,782 Comprehensive income attributable to common shareholders $ 37,943 $ 20,038 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 American Homes 4 Rent Condensed Consolidated Statements of Equity (Amounts in thousands, except share and per share data) (Unaudited) Class A common shares Class B common shares Preferred shares Number of shares Amount Number of shares Amount Number of shares Amount Additional paid-in capital Accumulated deficit Accumulated other comprehensive income Shareholders’ equity Noncontrolling interest Total equity Balances at December 31, 2019 300,107,599 $ 3,001 635,075 $ 6 35,350,000 $ 354 $ 5,790,775 $ ( 465,368 ) $ 6,658 $ 5,335,426 $ 683,364 $ 6,018,790 Share-based compensation — — — — — — 1,808 — — 1,808 — 1,808 Common stock issued under share-based compensation plans, net of shares withheld for employee taxes 208,010 2 — — — — ( 165 ) — — ( 163 ) — ( 163 ) Distributions to equity holders: Preferred shares (Note 10) — — — — — — — ( 13,782 ) — ( 13,782 ) — ( 13,782 ) Noncontrolling interests — — — — — — — — — — ( 2,602 ) ( 2,602 ) Common shares ($ 0.05 per share) — — — — — — — ( 15,088 ) — ( 15,088 ) — ( 15,088 ) Cumulative effect of adoption of ASU 2016-13 — — — — — — — ( 1,494 ) — ( 1,494 ) — ( 1,494 ) Net income — — — — — — — 34,026 — 34,026 3,501 37,527 Total other comprehensive loss — — — — — — — — ( 206 ) ( 206 ) ( 35 ) ( 241 ) Balances at March 31, 2020 300,315,609 $ 3,003 635,075 $ 6 35,350,000 $ 354 $ 5,792,418 $ ( 461,706 ) $ 6,452 $ 5,340,527 $ 684,228 $ 6,024,755 4 American Homes 4 Rent Condensed Consolidated Statements of Equity (continued) (Amounts in thousands, except share and per share data) (Unaudited) Class A common shares Class B common shares Preferred shares Number of shares Amount Number of shares Amount Number of shares Amount Additional paid-in capital Accumulated deficit Accumulated other comprehensive income Shareholders’ equity Noncontrolling interest Total equity Balances at December 31, 2020 316,021,385 $ 3,160 635,075 $ 6 35,350,000 $ 354 $ 6,223,256 $ ( 443,522 ) $ 5,840 $ 5,789,094 $ 683,336 $ 6,472,430 Share-based compensation — — — — — — 8,110 — — 8,110 — 8,110 Common stock issued under share-based compensation plans, net of shares withheld for employee taxes 246,425 2 — — — — ( 1,523 ) — — ( 1,521 ) — ( 1,521 ) Redemptions of Class A units 350,000 4 — — — — 4,613 — 7 4,624 ( 4,624 ) — Distributions to equity holders: Preferred shares (Note 10) — — — — — — — ( 13,782 ) — ( 13,782 ) — ( 13,782 ) Noncontrolling interests — — — — — — — — — — ( 5,172 ) ( 5,172 ) Common shares ($ 0.10 per share) — — — — — — — ( 31,795 ) — ( 31,795 ) — ( 31,795 ) Net income — — — — — — — 43,996 — 43,996 4,925 48,921 Total other comprehensive income — — — — — — — — 7,729 7,729 1,260 8,989 Balances at March 31, 2021 316,617,810 $ 3,166 635,075 $ 6 35,350,000 $ 354 $ 6,234,456 $ ( 445,103 ) $ 13,576 $ 5,806,455 $ 679,725 $ 6,486,180 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 American Homes 4 Rent Condensed Consolidated Statements of Cash Flows (Amounts in thousands) (Unaudited) For the Three Months Ended March 31, 2021 2020 Operating activities Net income $ 48,921 $ 37,527 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 90,071 82,821 Noncash amortization of deferred financing costs, debt discounts and cash flow hedging instrument 1,829 1,849 Noncash share-based compensation 8,110 1,808 Equity in net (income) losses of unconsolidated joint ventures ( 366 ) 1,231 Gain on sale and impairment of single-family properties and other, net ( 16,069 ) ( 6,319 ) Other changes in operating assets and liabilities: Rent and other receivables ( 8,170 ) ( 3,746 ) Prepaid expenses and other assets 5,742 ( 5,980 ) Deferred leasing costs ( 975 ) ( 910 ) Accounts payable and accrued expenses 23,242 18,397 Amounts due from related parties ( 338 ) ( 182 ) Net cash provided by operating activities 151,997 126,496 Investing activities Cash paid for single-family properties ( 82,118 ) ( 102,575 ) Change in escrow deposits for purchase of single-family properties ( 5,341 ) 2,259 Net proceeds received from sales of single-family properties and other 46,304 81,257 Proceeds received from hurricane-related insurance claims — 3,408 Investment in unconsolidated joint ventures ( 7,990 ) ( 1,000 ) Distributions from joint ventures 25,893 887 Renovations to single-family properties ( 9,069 ) ( 858 ) Recurring and other capital expenditures for single-family properties ( 26,033 ) ( 21,224 ) Cash paid for development activity ( 141,618 ) ( 138,957 ) Other purchases of productive assets ( 8,258 ) ( 2,411 ) Net cash used for investing activities ( 208,230 ) ( 179,214 ) Financing activities Proceeds from exercise of stock options 1,121 1,449 Payments related to tax withholding for share-based compensation ( 2,642 ) ( 1,612 ) Payments on asset-backed securitizations ( 6,118 ) ( 5,435 ) Proceeds from revolving credit facility 80,000 105,000 Distributions to noncontrolling interests ( 7,758 ) ( 5,178 ) Distributions to common shareholders ( 47,561 ) ( 30,114 ) Distributions to preferred shareholders ( 13,782 ) ( 13,782 ) Net cash provided by financing activities 3,260 50,328 Net decrease in cash, cash equivalents and restricted cash ( 52,973 ) ( 2,390 ) Cash, cash equivalents and restricted cash, beginning of period (see Note 3) 265,077 164,119 Cash, cash equivalents and restricted cash, end of period (see Note 3) $ 212,104 $ 161,729 6 American Homes 4 Rent Condensed Consolidated Statements of Cash Flows (continued) (Amounts in thousands) (Unaudited) For the Three Months Ended March 31, 2021 2020 Supplemental cash flow information Cash payments for interest, net of amounts capitalized $ ( 36,388 ) $ ( 37,987 ) Supplemental schedule of noncash investing and financing activities Accrued property renovations and development expenditures $ 31,854 $ 9,618 Transfers of completed homebuilding deliveries to properties 72,862 75,498 Property and land contributions to unconsolidated joint ventures ( 23,835 ) ( 9,835 ) Unrealized gain on cash flow hedging instrument 9,230 — Noncash right-of-use assets obtained in exchange for operating lease liabilities 537 1,603 Accrued distributions to non-affiliates 105 41 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 American Homes 4 Rent, L.P. Condensed Consolidated Balance Sheets (Amounts in thousands, except unit data) March 31, 2021 December 31, 2020 (Unaudited) Assets Single-family properties: Land $ 1,860,879 $ 1,836,798 Buildings and improvements 8,301,797 8,163,023 Single-family properties in operation 10,162,676 9,999,821 Less: accumulated depreciation ( 1,832,510 ) ( 1,754,433 ) Single-family properties in operation, net 8,330,166 8,245,388 Single-family properties under development and development land 554,765 510,365 Single-family properties held for sale, net 115,994 129,026 Total real estate assets, net 9,000,925 8,884,779 Cash and cash equivalents 75,237 137,060 Restricted cash 136,867 128,017 Rent and other receivables 49,714 41,544 Escrow deposits, prepaid expenses and other assets 177,936 163,171 Investments in unconsolidated joint ventures 100,077 93,109 Amounts due from affiliates 25,666 25,666 Goodwill 120,279 120,279 Total assets $ 9,686,701 $ 9,593,625 Liabilities Revolving credit facility $ 80,000 $ — Asset-backed securitizations, net 1,922,734 1,927,607 Unsecured senior notes, net 890,143 889,805 Accounts payable and accrued expenses 307,644 298,949 Amounts payable to affiliates — 4,834 Total liabilities 3,200,521 3,121,195 Commitments and contingencies (see Note 15) Capital Partners’ capital: General partner: Common units ( 317,252,885 and 316,656,460 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively) 4,938,444 4,928,819 Preferred units ( 35,350,000 units issued and outstanding at March 31, 2021 and December 31, 2020) 854,435 854,435 Limited partner: Common units ( 51,376,980 and 51,726,980 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively) 677,452 682,316 Accumulated other comprehensive income 15,849 6,860 Total capital 6,486,180 6,472,430 Total liabilities and capital $ 9,686,701 $ 9,593,625 The accompanying notes are an integral part of these condensed consolidated financial statements. 8 American Homes 4 Rent, L.P. Condensed Consolidated Statements of Operations (Amounts in thousands, except unit and per unit data) (Unaudited) For the Three Months Ended March 31, 2021 2020 Rents and other single-family property revenues $ 312,573 $ 287,342 Expenses: Property operating expenses 118,694 107,497 Property management expenses 23,699 23,276 General and administrative expense 15,205 11,266 Interest expense 28,005 29,715 Acquisition and other transaction costs 4,846 2,147 Depreciation and amortization 90,071 82,821 Total expenses 280,520 256,722 Gain on sale and impairment of single-family properties and other, net 16,069 6,319 Other income and expense, net 799 588 Net income 48,921 37,527 Preferred distributions 13,782 13,782 Net income attributable to common unitholders $ 35,139 $ 23,745 Weighted-average common units outstanding: Basic 368,647,217 352,840,049 Diluted 369,106,154 353,332,048 Net income attributable to common unitholders per unit: Basic $ 0.10 $ 0.07 Diluted $ 0.09 $ 0.07 The accompanying notes are an integral part of these condensed consolidated financial statements. 9 American Homes 4 Rent, L.P. Condensed Consolidated Statements of Comprehensive Income (Amounts in thousands) (Unaudited) For the Three Months Ended March 31, 2021 2020 Net income $ 48,921 $ 37,527 Other comprehensive income (loss): Gain (loss) on cash flow hedging instruments: Unrealized gain on cash flow hedging instrument 9,230 — Reclassification adjustment for amortization of interest expense included in net income ( 241 ) ( 241 ) Other comprehensive income (loss) 8,989 ( 241 ) Comprehensive income 57,910 37,286 Preferred distributions 13,782 13,782 Comprehensive income attributable to common unitholders $ 44,128 $ 23,504 The accompanying notes are an integral part of these condensed consolidated financial statements. 10 American Homes 4 Rent, L.P. Condensed Consolidated Statements of Capital (Amounts in thousands, except unit and per unit data) (Unaudited) General Partner Limited Partners Accumulated other comprehensive income Total capital Common capital Preferred capital amount Common capital Number of units Amount Number of units Amount Balances at December 31, 2019 300,742,674 $ 4,474,333 $ 854,435 52,026,980 $ 682,199 $ 7,823 $ 6,018,790 Share-based compensation — 1,808 — — — — 1,808 Common units issued under share-based compensation plans, net of units withheld for employee taxes 208,010 ( 163 ) — — — — ( 163 ) Distributions to capital holders: Preferred units (Note 10) — — ( 13,782 ) — — — ( 13,782 ) Common units ($ 0.05 per unit) — ( 15,088 ) — — ( 2,602 ) — ( 17,690 ) Cumulative effect of adoption of ASU 2016-13 — ( 1,494 ) — — — — ( 1,494 ) Net income — 20,244 13,782 — 3,501 — 37,527 Total other comprehensive loss — — — — — ( 241 ) ( 241 ) Balances at March 31, 2020 300,950,684 $ 4,479,640 $ 854,435 52,026,980 $ 683,098 $ 7,582 $ 6,024,755 11 American Homes 4 Rent, L.P. Condensed Consolidated Statements of Capital (continued) (Amounts in thousands, except unit and per unit data) (Unaudited) General Partner Limited Partners Accumulated other comprehensive income Total capital Common capital Preferred capital amount Common capital Number of units Amount Number of units Amount Balances at December 31, 2020 316,656,460 $ 4,928,819 $ 854,435 51,726,980 $ 682,316 $ 6,860 $ 6,472,430 Share-based compensation — 8,110 — — — — 8,110 Common units issued under share-based compensation plans, net of units withheld for employee taxes 246,425 ( 1,521 ) — — — — ( 1,521 ) Redemptions of Class A units 350,000 4,617 — ( 350,000 ) ( 4,617 ) — — Distributions to capital holders: Preferred units (Note 10) — — ( 13,782 ) — — — ( 13,782 ) Common units ($ 0.10 per unit) — ( 31,795 ) — — ( 5,172 ) — ( 36,967 ) Net income — 30,214 13,782 — 4,925 — 48,921 Total other comprehensive income — — — — — 8,989 8,989 Balances at March 31, 2021 317,252,885 $ 4,938,444 $ 854,435 51,376,980 $ 677,452 $ 15,849 $ 6,486,180 The accompanying notes are an integral part of these condensed consolidated financial statements. 12 American Homes 4 Rent, L.P. Condensed Consolidated Statements of Cash Flows (Amounts in thousands) (Unaudited) For the Three Months Ended March 31, 2021 2020 Operating activities Net income $ 48,921 $ 37,527 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 90,071 82,821 Noncash amortization of deferred financing costs, debt discounts and cash flow hedging instrument 1,829 1,849 Noncash share-based compensation 8,110 1,808 Equity in net (income) losses of unconsolidated joint ventures ( 366 ) 1,231 Gain on sale and impairment of single-family properties and other, net ( 16,069 ) ( 6,319 ) Other changes in operating assets and liabilities: Rent and other receivables ( 8,170 ) ( 3,746 ) Prepaid expenses and other assets 5,742 ( 5,980 ) Deferred leasing costs ( 975 ) ( 910 ) Accounts payable and accrued expenses 23,242 18,397 Amounts due from related parties ( 338 ) ( 182 ) Net cash provided by operating activities 151,997 126,496 Investing activities Cash paid for single-family properties ( 82,118 ) ( 102,575 ) Change in escrow deposits for purchase of single-family properties ( 5,341 ) 2,259 Net proceeds received from sales of single-family properties and other 46,304 81,257 Proceeds received from hurricane-related insurance claims — 3,408 Investment in unconsolidated joint ventures ( 7,990 ) ( 1,000 ) Distributions from joint ventures 25,893 887 Renovations to single-family properties ( 9,069 ) ( 858 ) Recurring and other capital expenditures for single-family properties ( 26,033 ) ( 21,224 ) Cash paid for development activity ( 141,618 ) ( 138,957 ) Other purchases of productive assets ( 8,258 ) ( 2,411 ) Net cash used for investing activities ( 208,230 ) ( 179,214 ) Financing activities Proceeds from exercise of stock options 1,121 1,449 Payments related to tax withholding for share-based compensation ( 2,642 ) ( 1,612 ) Payments on asset-backed securitizations ( 6,118 ) ( 5,435 ) Proceeds from revolving credit facility 80,000 105,000 Distributions to common unitholders ( 55,319 ) ( 35,292 ) Distributions to preferred unitholders ( 13,782 ) ( 13,782 ) Net cash provided by financing activities 3,260 50,328 Net decrease in cash, cash equivalents and restricted cash ( 52,973 ) ( 2,390 ) Cash, cash equivalents and restricted cash, beginning of period (see Note 3) 265,077 164,119 Cash, cash equivalents and restricted cash, end of period (see Note 3) $ 212,104 $ 161,729 13 American Homes 4 Rent, L.P. Condensed Consolidated Statements of Cash Flows (continued) (Amounts in thousands) (Unaudited) For the Three Months Ended March 31, 2021 2020 Supplemental cash flow information Cash payments for interest, net of amounts capitalized $ ( 36,388 ) $ ( 37,987 ) Supplemental schedule of noncash investing and financing activities Accrued property renovations and development expenditures $ 31,854 $ 9,618 Transfers of completed homebuilding deliveries to properties 72,862 75,498 Property and land contributions to unconsolidated joint ventures ( 23,835 ) ( 9,835 ) Unrealized gain on cash flow hedging instrument 9,230 — Noncash right-of-use assets obtained in exchange for operating lease liabilities 537 1,603 Accrued distributions to non-affiliates 105 41 The accompanying notes are an integral part of these condensed consolidated financial statements. 14 American Homes 4 Rent American Homes 4 Rent, L.P. Notes to Unaudited Condensed Consolidated Financial Statements Note 1. Organization and Operations American Homes 4 Rent (“AH4R” or “General Partner”) is a Maryland real estate investment trust (“REIT”) formed on October 19, 2012 for the purpose of acquiring, developing, renovating, leasing and operating single-family homes as rental properties. American Homes 4 Rent, L.P., a Delaware limited partnership formed on October 22, 2012, and its consolidated subsidiaries (collectively, the “Operating Partnership” or the “OP”) is the entity through which the Company conducts substantially all of its business and owns, directly or through subsidiaries, substantially all of its assets. References to the “Company,” “we,” “our” and “us” mean collectively AH4R, the Operating Partnership and those entities/subsidiaries owned or controlled by AH4R and/or the Operating Partnership. As of March 31, 2021, the Company held 53,984 single-family properties in 22 states, including 636 properties classified as held for sale. AH4R is the general partner of, and as of March 31, 2021 owned approximately 86.0 % of the common partnership interest in, the Operating Partnership. The remaining 14.0 % of the common partnership interest was owned by limited partners. As the sole general partner of the Operating Partnership, AH4R has exclusive control of the Operating Partnership’s day-to-day management. The Company’s management operates AH4R and the Operating Partnership as one business, and the management of AH4R consists of the same members as the management of the Operating Partnership. AH4R’s primary function is acting as the general partner of the Operating Partnership. The only material asset of AH4R is its partnership interest in the Operating Partnership. As a result, AH4R generally does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing equity from time to time and guaranteeing certain debt of the Operating Partnership. AH4R itself is not directly obligated under any indebtedness, but guarantees some of the debt of the Operating Partnership. The Operating Partnership owns substantially all of the assets of the Company, including the Company’s ownership interests in its joint ventures, either directly or through its subsidiaries, conducts the operations of the Company’s business and is structured as a limited partnership with no publicly traded equity. One difference between the Company and the Operating Partnership is $ 25.7 million of asset-backed securitization certificates issued by the Operating Partnership and purchased by AH4R. The asset-backed securitization certificates are recorded as an asset-backed securitization certificates receivable by the Company and as an amount due from affiliates by the Operating Partnership. AH4R contributes all net proceeds from its various equity offerings to the Operating Partnership. In return for those contributions, AH4R receives Operating Partnership units (“OP units”) equal to the number of shares it has issued in the equity offering. Based on the terms of the Agreement of Limited Partnership of the Operating Partnership, as amended, OP units can be exchanged for shares on a one -for-one basis. Except for net proceeds from equity issuances by AH4R, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s incurrence of indebtedness or through the issuance of OP units. Note 2. Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and present the accounts of both the Company, which include AH4R, the Operating Partnership and their consolidated subsidiaries, as well as the Operating Partnership, which include the Operating Partnership and its consolidated subsidiaries. Intercompany accounts and transactions have been eliminated. The Company consolidates real estate partnerships and other entities that are not variable interest entities (“VIEs”) when it owns, directly or indirectly, a majority interest in the entity or is otherwise able to control the entity. The Company consolidates VIEs in accordance with Accounting Standards Codification No. 810, Consolidation, if the Company is the primary beneficiary of the VIE as determined by the Company’s power to direct the VIE’s activities and its obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. Entities for which the Company owns an interest, but does not consolidate, are accounted for under the equity method of accounting as an investment in an unconsolidated entity and are included in investments in unconsolidated joint ventures within the condensed consolidated balance sheets. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Any references in this report to the number of properties is outside the scope of our independent registered public accounting firm’s review of our financial statements, in accordance with the standards of the Public Company Accounting Oversight 15 Board. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair statement of the condensed consolidated financial statements for the interim periods have been made. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Effective March 31, 2021, the Company reclassified certain impairment charges related to homes classified as held for sale from other expenses to gain on sale and impairment of single-family properties and other, net within the condensed consolidated statements of operations. The Company also reclassified other revenues and the remaining other expenses to other income and expense, net within the condensed consolidated statements of operations. Certain other amounts in the condensed consolidated financial statements for the prior periods have also been reclassified to conform to the current year presentation. Note 3. Cash, Cash Equivalents and Restricted Cash Restricted cash primarily consists of funds held related to resident security deposits, cash reserves in accordance with certain loan agreements and funds held in the custody of our transfer agent for the payment of distributions. Funds held related to resident security deposits are restricted during the term of the related lease agreement, which is generally one year. Cash reserved in connection with lender requirements is restricted during the term of the related debt instrument. The following table provides a reconciliation of cash, cash equivalents and restricted cash per the condensed consolidated statements of cash flows to the corresponding financial statement line items in the condensed consolidated balance sheets (in thousands): March 31, December 31, 2021 2020 2020 2019 Cash and cash equivalents $ 75,237 $ 33,108 $ 137,060 $ 37,575 Restricted cash 136,867 128,621 128,017 126,544 Total cash, cash equivalents and restricted cash $ 212,104 $ 161,729 $ 265,077 $ 164,119 Note 4. Real Estate Assets, Net The net book values of real estate assets consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Occupied single-family properties $ 8,100,087 $ 7,957,513 Single-family properties recently acquired or developed 43,333 66,857 Single-family properties in turnover process 111,806 149,684 Single-family properties leased, not yet occupied 74,940 71,334 Single-family properties in operation, net 8,330,166 8,245,388 Development land 303,653 270,767 Single-family properties under development 251,112 239,598 Single-family properties held for sale, net 115,994 129,026 Total real estate assets, net $ 9,000,925 $ 8,884,779 Depreciation expense related to single-family properties was $ 86.3 million and $ 79.8 million for the three months ended March 31, 2021 and 2020, respectively. 16 The following table summarizes the Company’s dispositions of single-family properties and land for the three months ended March 31, 2021 and 2020 (in thousands, except property data): For the Three Months Ended March 31, 2021 2020 Single-family properties: Properties sold 180 410 Net proceeds (1) $ 46,040 $ 81,186 Net gain on sale $ 15,350 $ 13,758 Land: Net proceeds $ 264 $ 71 Net (loss) gain on sale $ ( 77 ) $ 7 (1) Net proceeds are net of deductions for working capital prorations. Note 5. Rent and Other Receivables Included in rents and other single-family property revenues are variable lease payments for tenant charge-backs, which primarily relate to cost recoveries on utilities, and variable lease payments for fees from single-family properties. Variable lease payments for tenant charge-backs were $ 45.8 million and $ 40.0 million for the three months ended March 31, 2021 and 2020, respectively. Variable lease payments for fees from single-family properties were $ 5.2 million and $ 4.0 million for the three months ended March 31, 2021 and 2020, respectively. The Company generally rents its single-family properties under non-cancelable lease agreements with a term of one year . The following table summarizes future minimum rental revenues under existing leases on our properties as of March 31, 2021 (in thousands): March 31, 2021 Remaining 2021 $ 492,228 2022 85,142 2023 2,417 2024 13 Total $ 579,800 As of March 31, 2021 and December 31, 2020, rent and other receivables included $ 2.5 million and $ 0.8 million, respectively, of insurance claims receivables related to storm damages and other matters. Note 6. Escrow Deposits, Prepaid Expenses and Other Assets The following table summarizes the components of escrow deposits, prepaid expenses and other assets as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Escrow deposits, prepaid expenses and other $ 62,780 $ 51,886 Deferred costs and other intangibles, net 4,317 4,864 Notes receivable, net 34,745 35,519 Operating lease ROU assets 18,553 18,772 Commercial real estate, software, vehicles and FF&E, net 57,541 52,130 Total $ 177,936 $ 163,171 Depreciation expense related to commercial real estate, software, vehicles and furniture, fixtures and equipment (“FF&E”), net was $ 2.8 million and $ 2.0 million for the three months ended March 31, 2021 and 2020, respectively. 17 Deferred Costs and Other Intangibles, Net Deferred costs and other intangibles, net, consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Deferred leasing costs $ 3,889 $ 3,782 Deferred financing costs 11,244 11,244 15,133 15,026 Less: accumulated amortization ( 10,816 ) ( 10,162 ) Total $ 4,317 $ 4,864 Amortization expense related to deferred leasing costs was $ 1.0 million for both the three months ended March 31, 2021 and 2020, respectively, and was included in depreciation and amortization within the condensed consolidated statements of operations. Amortization of deferred financing costs that relate to our revolving credit facility was $ 0.5 million for both the three months ended March 31, 2021 and 2020 and was included in gross interest, prior to interest capitalization (see Note 8. Debt). The following table sets forth the estimated annual amortization expense related to deferred costs and other intangibles, net as of March 31, 2021 for future periods (in thousands): Deferred Leasing Costs Deferred Financing Costs Total Remaining 2021 $ 1,797 $ 1,479 $ 3,276 2022 73 968 1,041 Total $ 1,870 $ 2,447 $ 4,317 Note 7. Investments in Unconsolidated Joint Ventures As of March 31, 2021, the Company held 20 % ownership interests in three unconsolidated joint ventures. In evaluating the Company’s 20 % ownership interests in these joint ventures, we concluded that the joint ventures are not VIEs after applying the variable interest model and, therefore, we account for our interests in the joint ventures as investments in unconsolidated subsidiaries after applying the voting interest model using the equity method of accounting. Equity in net income (losses) of unconsolidated joint ventures was included in other income and expense, net within the condensed consolidated statements of operations. The Company entered into a joint venture with (i) the Alaska Permanent Fund Corporation (the “Alaska JV”) during the second quarter of 2014 to invest in homes acquired through traditional acquisition channels, (ii) another leading institutional investor (the “Institutional Investor JV”) during the third quarter of 2018 to invest in newly constructed single-family rental homes, and (iii) institutional investors advised by J.P. Morgan Asset Management (the “J.P. Morgan JV”) during the first quarter of 2020 focused on constructing and operating newly built rental homes. The following table summarizes our investments in unconsolidated joint ventures (in thousands, except percentages and property data): Joint Venture Description % Ownership at March 31, 2021 Completed Homes at March 31, 2021 Balances at March 31, 2021 Balances at December 31, 2020 Alaska JV 20 % 350 $ 26,365 $ 26,020 Institutional Investor JV 20 % 816 30,638 34,112 J.P. Morgan JV 20 % 217 43,074 32,977 1,383 $ 100,077 $ 93,109 18 The Company provides various services to these joint ventures, which are considered to be related parties, including property management and development services and has opportunities to earn promoted interests. Management fee and development fee income from unconsolidated joint ventures was $ 2.1 million and $ 0.9 million for the three months ended March 31, 2021 and 2020, respectively, and was included in other income and expense, net within the condensed consolidated statements of operations. As a result of the Company’s management of these joint ventures, certain related party receivables and payables arise in the ordinary course of business and are included in escrow deposits, prepaid expenses and other assets or amounts payable to affiliates in the condensed consolidated balance sheets. During the third quarter of 2020, Institutional Investor JV entered into a loan agreement to borrow up to a $ 201.0 million aggregate commitment. During the initial two-year term, the loan bears interest at LIBOR plus a 3.50 % margin and matures on August 11, 2022. The loan agreement provides for three one-year extension options that include additional fees and interest. As of March 31, 2021, the joint venture’s loan had a $ 116.7 million outstanding principal balance. The Company has provided a customary non-recourse guarantee that may become a liability for us upon a voluntary bankruptcy filing by the joint venture or occurrence of other actions such as fraud or a material misrepresentation by us or the joint venture. To date, the guarantee has not been invoked and we believe that the actions that would trigger a guarantee would generally be disadvantageous to the joint venture and us, and therefore are unlikely to occur. However, there can be no assurances that actions that could trigger the guarantee will not occur. Note 8. Debt All of the Company’s indebtedness is debt of the Operating Partnership. AH4R is not directly obligated under any indebtedness, but guarantees some of the debt of the Operating Partnership. The following table presents the Company’s debt as of March 31, 2021 and December 31, 2020 (in thousands): Outstanding Principal Balance Interest Rate (1) Maturity Date March 31, 2021 December 31, 2020 AH4R 2014-SFR2 securitization 4.42 % October 9, 2024 $ 478,399 $ 479,981 AH4R 2014-SFR3 securitization 4.40 % December 9, 2024 493,862 495,392 AH4R 2015-SFR1 securitization (2) 4.14 % April 9, 2045 519,255 520,957 AH4R 2015-SFR2 securitization (3) 4.36 % October 9, 2045 450,858 452,162 Total asset-backed securitizations 1,942,374 1,948,492 2028 unsecured senior notes (4) 4.08 % February 15, 2028 500,000 500,000 2029 unsecured senior notes 4.90 % February 15, 2029 400,000 400,000 Revolving credit facility (5) 1.31 % June 30, 2022 80,000 — Total debt 2,922,374 2,848,492 Unamortized discounts on unsecured senior notes ( 3,537 ) ( 3,658 ) Deferred financing costs, net (6) ( 25,960 ) ( 27,422 ) Total debt per balance sheet $ 2,892,877 $ 2,817,412 (1) Interest rates are as of March 31, 2021. Unless otherwise stated, interest rates are fixed percentages. (2) The AH4R 2015-SFR1 securitization has an anticipated repayment date of April 9, 2025. (3) The AH4R 2015-SFR2 securitization has an anticipated repayment date of October 9, 2025. (4) The stated interest rate on the 2028 unsecured senior notes is 4.25 %, which was effectively hedged to yield an interest rate of 4.08 %. (5) The revolving credit facility provides for a borrowing capacity of up to $ 800.0 million and the Company had approximately $ 1.5 million committed to outstanding letters of credit that reduced our borrowing capacity as of March 31, 2021 and December 31, 2020. The revolving credit facility bears interest at LIBOR plus 1.20 % as of March 31, 2021. The revolving credit facility was amended on April 15, 2021 to expand the borrowing capacity to $ 1.25 billion and extend the maturity date. See Note 16. Subsequent Events for further details. (6) Deferred financing costs relate to our asset-backed securitizations and unsecured senior notes. Amortization of deferred financing costs was $ 1.5 million for both the three months ended March 31, 2021 and 2020, which was included in gross interest, prior to interest capitalization. 19 Debt Maturities The following table summarizes the contractual maturities of the Company’s principal debt balances on a fully extended basis as of March 31, 2021 (in thousands): Debt Maturities Remaining 2021 $ 15,536 2022 100,714 2023 20,714 2024 953,929 2025 10,302 Thereafter 1,821,179 Total debt $ 2,922,374 Interest Expense The following table summarizes our (i) gross interest cost, which includes fees on our credit facilities and amortization of deferred financing costs and the discounts on unsecured senior notes, and (ii) capitalized interest for the three months ended March 31, 2021 and 2020 (in thousands): For the Three Months Ended March 31, 2021 2020 Gross interest cost $ 33,883 $ 34,364 Capitalized interest ( 5,878 ) ( 4,649 ) Interest expense $ 28,005 $ 29,715 Note 9. Accounts Payable and Accrued Expenses The following table summarizes accounts payable and accrued expenses as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Resident security deposits $ 93,713 $ 90,621 Accrued property taxes 78,343 48,689 Accrued construction and maintenance liabilities 41,159 42,483 Prepaid rent 24,921 24,421 Operating lease liabilities 19,289 19,166 Accrued interest 12,807 23,018 Accounts payable 194 432 Accrued distribution payable 105 13,612 Other accrued liabilities 37,113 36,507 Total $ 307,644 $ 298,949 Note 10. Shareholders’ Equity / Partners’ Capital When the Company issues common or preferred shares, the Operating Partnership issues an equivalent number of units of partnership interest of a corresponding class to AH4R, with the Operating Partnership receiving the net proceeds from the share issuances. At-the-Market Common Share Offering Program During the second quarter of 2020, the Company extended its at-the-market common share offering program under which it can issue Class A common shares from time to time through various sales agents up to an aggregate gross sales offering price of $ 500.0 million (the “At-the-Market Program”). The At-the-Market Program also provides that we may enter into forward contracts for our Class A common shares with forward sellers and forward purchasers. The Company intends to use any net proceeds from the At-the-Market Program (i) to repay indebtedness the Company has incurred or expects to incur under its revolving credit facility, (ii) to develop new single-family properties and communities, (iii) to acquire and renovate single-family properties and for related activities in accordance with the Company’s business strategy and (iv) for working capital and general corporate purposes, including repurchases of the Company’s securities, acquisitions of additional properties, capital expenditures and the expansion, redevelopment 20 and/or improvement of properties in the Company’s portfolio. The At-the-Market Program may be suspended or terminated by the Company at any time. During the three months ended March 31, 2021, no shares were issued under the At-the-Market Program. As of March 31, 2021, 86,130 shares have been issued under the At-the-Market Program and $ 497.6 million remained available for future share issuances. Share Repurchase Program The Company’s board of trustees authorized the establishment of our share repurchase program for the repurchase of up to $ 300.0 million of our outstanding Class A common shares and up to $ 250.0 million of our outstanding preferred shares from time to time in the open market or in privately negotiated transactions. The program does not have an expiration date, but may be suspended or discontinued at any time without notice. All repurchased shares are constructively retired and returned to an authorized and unissued status. The Operating Partnership funds the repurchases and constructively retires an equivalent number of corresponding Class A units. During the three months ended March 31, 2021 and 2020, we did not repurchase and retire any of our shares. As of March 31, 2021, we had a remaining repurchase authorization of up to $ 265.1 million of our outstanding Class A common shares and up to $ 250.0 million of our outstanding preferred shares under the program. Perpetual Preferred Shares As of March 31, 2021 and December 31, 2020, the Company had the following series of perpetual preferred shares outstanding (in thousands, except share data): March 31, 2021 December 31, 2020 Series Issuance Date Earliest Redemption Date Dividend Rate Outstanding Shares Current Liquidation Value Outstanding Shares Current Liquidation Value Series D perpetual preferred shares 5/24/2016 5/24/2021 6.500 % 10,750,000 $ 268,750 10,750,000 $ 268,750 Series E perpetual preferred shares 6/29/2016 6/29/2021 6.350 % 9,200,000 230,000 9,200,000 230,000 Series F perpetual preferred shares 4/24/2017 4/24/2022 5.875 % 6,200,000 155,000 6,200,000 155,000 Series G perpetual preferred shares 7/17/2017 7/17/2022 5.875 % 4,600,000 115,000 4,600,000 115,000 Series H perpetual preferred shares 9/19/2018 9/19/2023 6.250 % 4,600,000 115,000 4,600,000 115,000 Total preferred shares 35,350,000 $ 883,750 35,350,000 $ 883,750 Distributions The Company’s board of trustees declared the following distributions during the respective quarters. The Operating Partnership funds the payment of distributions, and the board of trustees declared an equivalent amount of distributions on the corresponding OP units. For the Three Months Ended Security March 31, 2021 March 31, 2020 Class A and Class B common shares $ 0.10 $ 0.05 6.500 % Series D perpetual preferred shares 0.41 0.41 6.350 % Series E perpetual preferred shares 0.40 0.40 5.875 % Series F perpetual preferred shares 0.37 0.37 5.875 % Series G perpetual preferred shares 0.37 0.37 6.250 % Series H perpetual preferred shares 0.39 0.39 Noncontrolling Interest Noncontrolling interest as reflected in the Company’s condensed consolidated balance sheets primarily consists of the interests held by former American Homes 4 Rent, LLC (“AH LLC”) members in units in the Operating Partnership. Former AH LLC members owned 50,779,990 and 51,129,990 , or approximately 13.8 % and 13.9 %, of the total 368,629,865 and 368,383,440 Class A units in the Operating Partnership as of March 31, 2021 and December 31, 2020, respectively. Noncontrolling interest also includes interests held by non-affiliates in Class A units in the Operating Partnership. Non-affiliate Class A unitholders owned 596,990 , or approximately 0.2 %, of the total 368,629,865 and 368,383,440 Class A units in the Operating Partnership as of March 31, 2021 and December 31, 2020, respectively. The Operating Partnership units owned by former AH LLC members and non-affiliates that are reflected as noncontrolling interest in the Company’s condensed consolidated balance sheets are reflected as limited partner capital in the Operating Partnership’s condensed consolidated balance sheets. 21 Note 11. Share-Based Compensation 2012 Equity Incentive Plan The Company’s employees are compensated through the Operating Partnership, including share-based compensation. When the Company issues Class A common shares under the 2012 Equity Incentive Plan (the “Plan”), the Operating Partnership issues an equivalent number of Class A units to AH4R and non-management members of our board of trustees. During the three months ended March 31, 2021 and 2020, the Human Capital and Compensation Committee granted restricted share units (“RSUs”) to employees that vest over a three-year service period. RSUs granted to non-management trustees vest over a one-year service period. During the three months ended March 31, 2021, the Human Capital and Compensation Committee granted performance-based restricted share units (“PSUs”) to certain executives that cliff vest at the end of a three-year service period. The performance conditions of the PSUs are measured over a three-year performance period beginning January 1, 2021 and ending December 31, 2023. A portion of the PSUs are based on (i) the achievement of relative total shareholder return compared to a specified peer group (the “TSR Awards”), and a portion are based on (ii) average annual growth in core funds from operations per share (the “Core FFO Awards”). The number of PSUs that may ultimately vest range from zero to 200 % of the number of PSUs granted based on the level of achievement of these performance conditions. For the TSR Awards, grant date fair value was determined using a multifactor Monte Carlo model and the resulting compensation cost is amortized over the service period regardless of whether the performance condition is achieved. For the Core FFO Awards, fair value is based on the market value on the date of grant and compensation cost is recognized based on the probable achievement of the performance condition at each reporting period. The following table summarizes stock option activity under the Plan for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Options outstanding at beginning of period 1,090,300 1,529,800 Granted — — Exercised ( 60,000 ) ( 83,600 ) Forfeited — ( 1,600 ) Options outstanding at end of period 1,030,300 1,444,600 Options exercisable at end of period 992,800 1,296,750 The following table summarizes RSU activity under the Plan for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 RSUs outstanding at beginning of period 651,537 599,109 Awarded 453,560 422,285 Vested ( 164,203 ) ( 181,213 ) Forfeited ( 12,399 ) ( 19,010 ) RSUs outstanding at end of period 928,495 821,171 The following table summarizes PSU activity under the Plan for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 PSUs outstanding at beginning of period — — Awarded 92,319 — Vested — — Forfeited — — PSUs outstanding at end of period 92,319 — 22 The Company’s noncash share-based compensation expense relating to corporate administrative employees is included in general and administrative expense and the noncash share-based compensation expense relating to centralized and field property management employees is included in property management expenses. Noncash share-based compensation expense relating to employees involved in the purchases of single-family properties, including newly constructed properties from third-party builders, the development of single-family properties, or the disposal of certain properties or portfolios of properties is included in acquisition and other transaction costs. The following table summarizes the activity that relates to the Company’s noncash share-based compensation expense for the three months ended March 31, 2021 and 2020 (in thousands): For the Three Months Ended March 31, 2021 2020 General and administrative expense $ 4,342 $ 1,369 Property management expenses 999 439 Acquisition and other transaction costs 2,769 — Total noncash share-based compensation expense $ 8,110 $ 1,808 Note 12. Earnings per Share / Unit American Homes 4 Rent The following table reflects the Company’s computation of net income per common share on a basic and diluted basis for the three months ended March 31, 2021 and 2020 (in thousands, except share and per share data): For the Three Months Ended March 31, 2021 2020 Numerator: Net income $ 48,921 $ 37,527 Less: Noncontrolling interest 4,925 3,501 Dividends on preferred shares 13,782 13,782 Allocation to participating securities (1) 93 54 Numerator for income per common share–basic and diluted $ 30,121 $ 20,190 Denominator: Weighted-average common shares outstanding–basic 316,982,460 300,813,069 Effect of dilutive securities: Share-based compensation plan (2) 458,937 491,999 Weighted-average common shares outstanding–diluted (3) 317,441,397 301,305,068 Net income per common share: Basic $ 0.10 $ 0.07 Diluted $ 0.09 $ 0.07 (1) Unvested RSUs that have nonforfeitable rights to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted earnings per share using the two-class method. (2) Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options. In accordance with the treasury stock method, for the three months ended March 31, 2021, 10,071 weighted-average PSUs related to the TSR Awards were excluded because their effects were anti-dilutive and PSUs related to the Core FFO Awards were excluded because the performance criteria were not met as of the end of the reporting period. (3) The effect of the potential conversion of OP units is not reflected in the computation of basic and diluted earnings per share, as they are exchangeable for Class A common shares on a one -for-one basis. The income allocable to the OP units is allocated on this same basis and reflected as noncontrolling interest in the accompanying condensed consolidated financial statements. As such, the assumed conversion of the OP units would have no net impact on the determination of diluted earnings per share. 23 American Homes 4 Rent, L.P. The following table reflects the Operating Partnership’s computation of net income per common unit on a basic and diluted basis for the three months ended March 31, 2021 and 2020 (in thousands, except unit and per unit data): For the Three Months Ended March 31, 2021 2020 Numerator: Net income $ 48,921 $ 37,527 Less: Preferred distributions 13,782 13,782 Allocation to participating securities (1) 93 54 Numerator for income per common unit–basic and diluted $ 35,046 $ 23,691 Denominator: Weighted-average common units outstanding–basic 368,647,217 352,840,049 Effect of dilutive securities: Share-based compensation plan (2) 458,937 491,999 Weighted-average common units outstanding–diluted 369,106,154 353,332,048 Net income per common unit: Basic $ 0.10 $ 0.07 Diluted $ 0.09 $ 0.07 (1) Unvested RSUs that have nonforfeitable rights to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted earnings per unit using the two-class method. (2) Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options. In accordance with the treasury stock method, for the three months ended March 31, 2021, 10,071 weighted-average PSUs related to the TSR Awards were excluded because their effects were anti-dilutive and PSUs related to the Core FFO Awards were excluded because the performance criteria were not met as of the end of the reporting period. Note 13. Fair Value The carrying amount of rents and other receivables, restricted cash, escrow deposits, prepaid expenses and other assets, and accounts payable and accrued expenses generally approximate fair value because of the short maturity of these amounts. Our notes receivable are financial instruments classified as Level 3 in the fair value hierarchy as their fair values were estimated using unobservable inputs. We estimated the fair values of the notes receivable by modeling the expected contractual cash flows required under the instruments and discounting them back to their present values using estimates of current market rates. As the estimated current market rates were not substantially different from the discount rates originally applied, the carrying amount of notes receivable, net approximates fair value. Our asset-backed securitizations and revolving credit facility are financial instruments classified as Level 3 in the fair value hierarchy as their fair values were estimated using unobservable inputs. We estimated the fair values of the asset-backed securitizations by modeling the contractual cash flows required under the instruments and discounting them back to their present values using estimates of current market rates. As our revolving credit facility bears interest at a floating rate based on an index plus a spread (see Note 8. Debt), management believes that the carrying value (excluding deferred financing costs) of the revolving credit facility reasonably approximates fair value. Our unsecured senior notes are financial instruments classified as Level 2 in the fair value hierarchy as their fair values were estimated using observable inputs based on the market value of the last trade at the end of the period. 24 The following table displays the carrying values and fair values of our debt instruments as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value AH4R 2014-SFR2 securitization $ 473,879 $ 485,779 $ 475,144 $ 488,140 AH4R 2014-SFR3 securitization 489,107 502,724 490,319 504,364 AH4R 2015-SFR1 securitization 513,956 527,535 515,326 529,542 AH4R 2015-SFR2 securitization 445,792 460,132 446,818 461,037 Total asset-backed securitizations 1,922,734 1,976,170 1,927,607 1,983,083 2028 unsecured senior notes, net 494,576 549,755 494,378 575,220 2029 unsecured senior notes, net 395,567 456,188 395,427 482,276 Total unsecured senior notes, net 890,143 1,005,943 889,805 1,057,496 Revolving credit facility 80,000 80,000 — — Total debt $ 2,892,877 $ 3,062,113 $ 2,817,412 $ 3,040,579 During the first quarter of 2021, in anticipation of a debt issuance and in order to hedge interest rate risk, the Company entered into a treasury lock agreement with a notional amount of $ 400.0 million based on the 10-year treasury note rate at the time. The treasury lock was designated as a cash flow hedging instrument and had a fair value of $ 9.2 million as of March 31, 2021, which was included in escrow deposits, prepaid expenses and other assets within the condensed consolidated balance sheets, with a corresponding unrealized gain reflected in other comprehensive income. The treasury lock will be settled upon the issuance of debt and the amounts recorded in other comprehensive income will be reclassified into earnings as a reduction of interest expense over the term of the debt. The treasury lock is the only financial instrument recorded at fair value on a recurring basis in the condensed consolidated financial statements and is classified as Level 2 within the fair value hierarchy as its fair value is estimated using observable inputs based on the 10-year treasury note rate. Note 14. Related Party Transactions As of March 31, 2021 and December 31, 2020, affiliates owned approximately 14.3 % of the Company’s outstanding Class A common shares. On a fully-diluted basis, affiliates held (including consideration of 635,075 Class B common shares and 50,622,165 and 50,972,165 Class A units as of March 31, 2021 and December 31, 2020, respectively) an approximate 26.2 % and 26.3 % interest as of March 31, 2021 and December 31, 2020, respectively. American Homes 4 Rent As of December 31, 2020, the Company had a $ 4.8 million payable related to accrued common distributions to affiliates, which was included in amounts payable to affiliates on the Company’s condensed consolidated balance sheets. American Homes 4 Rent, L.P. As of March 31, 2021, the Operating Partnership had a receivable from affiliates of $ 25.7 million related to the asset-backed securitization certificates held by AH4R, which was included in amounts due from affiliates on the Operating Partnership’s condensed consolidated balance sheets. As of December 31, 2020, the Operating Partnership had a receivable from affiliates of $ 25.7 million related to the asset-backed securitization certificates held by AH4R, which was included in amounts due from affiliates on the Operating Partnership’s condensed consolidated balance sheets, and had a $ 4.8 million payable related to accrued common distributions to affiliates, which was included in amounts payable to affiliates on the Operating Partnership’s condensed consolidated balance sheets. Note 15. Commitments and Contingencies As of March 31, 2021, the Company had commitments to acquire 547 single-family properties for an aggregate purchase price of $ 146.9 million, as well as $ 90.1 million in purchase commitments for land relating to our AMH Development Program. As of December 31, 2020, the Company had commitments to acquire 323 single-family properties for an aggregate purchase price of $ 81.7 million, as well as $ 72.3 million in purchase commitments for land relating to our AMH Development Program. As of March 31, 2021 and December 31, 2020, the Company had sales in escrow for approximately 64 and 97 , respectively, of our single-family properties for aggregate selling prices of $ 20.0 million and $ 24.0 million, respectively. 25 As of March 31, 2021 and December 31, 2020, the Company, as a condition for entering into some of its development contracts, had outstanding surety bonds of approximately $ 47.5 million and $ 36.7 million, respectively. Captive Insurance Company In January 2021, the Company formed a wholly owned captive insurance company, American Dream Insurance, LLC, which provides general liability insurance coverage for losses below the deductible under the Company’s third-party liability insurance policy. The Company created American Dream Insurance, LLC as part of its overall risk management program and to stabilize its insurance costs, manage exposure and recoup expenses through the functions of the captive program. The captive insurance company’s impact on the Company’s condensed consolidated financial statements is immaterial. Legal Matters During the third quarter of 2020, we received a notice from the Georgia Attorney General’s Office seeking certain information relevant to an investigation they are conducting about our customary landlord-tenant matters. We are cooperating with the Georgia Attorney General’s Office on this matter. We are involved in various other legal and administrative proceedings that are incidental to our business. We believe these matters will not have a materially adverse effect on our financial position or results of operations upon resolution. COVID-19 Pandemic The global economy has continued to be severely impacted by the COVID-19 pandemic. We are actively monitoring the impact of the COVID-19 pandemic, which we anticipate will negatively impact our business and results of operations for our second fiscal quarter and likely beyond. The extent to which our operations will be impacted will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information which may emerge concerning the severity of the pandemic, including with respect to new variants or strains, the speed and effectiveness of vaccine distribution, vaccine adoption rates and actions by government authorities to contain the pandemic or treat its impact, among other things. Note 16. Subsequent Events Subsequent Acquisitions From April 1, 2021 through April 30, 2021, the Company added 214 properties to its portfolio for a total cost of approximately $ 64.5 million, which included 87 newly constructed properties delivered through our AMH Development Program and 9 newly constructed homes acquired from third-party developers through our National Builder Program. Subsequent Dispositions From April 1, 2021 through April 30, 2021, the Company disposed of 37 properties for aggregate net proceeds of approximately $ 10.7 million. Revolving Credit Facility From April 1, 2021 through April 30, 2021, the Company borrowed an additional $ 20.0 million under its revolving credit facility, resulting in $ 100.0 million of outstanding borrowings under its revolving credit facility as of April 30, 2021. Amendment of Revolving Credit Facility On April 15, 2021, the Company closed a $ 1.25 billion revolving credit facility, amending its existing $ 800 million revolving credit facility. The amended revolving credit facility provides for expanded borrowing capacity to continue to support the Company’s growth initiatives, reflects a more favorable pricing grid based on current market conditions, and includes a sustainability component based upon third-party performance measures through which overall pricing can further improve if the Company meets certain targets. The interest rate on the amended revolving credit facility is at either LIBOR plus a margin ranging from 0.725 % to 1.45 % or a base rate (determined according to the greater of a prime rate, federal funds rate plus 0.5 % or daily LIBOR rate plus 1.0 %) plus a margin ranging from 0.00 % to 0.45 %. In each case the actual margin is determined based on the Company’s credit ratings in effect from time to time. The amended revolving credit facility matures on April 15, 2025, with two six-month extension options at the Company’s election if certain conditions are met. 26 Redemption of Perpetual Preferred Shares On May 6, 2021, the Company announced its intent to redeem (i) all outstanding shares of its 6.500 % Series D perpetual preferred shares, $ 0.01 par value per share, for cash at a liquidation preference of $ 25.00 per share plus any accrued and unpaid dividends, on June 7, 2021, and (ii) all outstanding shares of its 6.350 % Series E perpetual preferred shares, $ 0.01 par value per share, for cash at a liquidation preference of $ 25.00 per share plus any accrued and unpaid dividends, on June 30, 2021. 27