What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-08-06 compared with 2021-05-07 · 246 added, 118 removed, 635 unchanged (36% of the section changed)

3 unchanged sentences

(Amounts in thousands, except share data)

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Single-family properties:

23 unchanged sentences

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)

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)

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)

Class A common shares ($ 0.01 par value per share, 450,000,000 shares authorized, 322,208,183 and 316,021,385 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

Class B common shares ($ 0.01 par value per share, 50,000,000 shares authorized, 635,075 shares issued and outstanding at June 30, 2021 and December 31, 2020)

Preferred shares ($ 0.01 par value per share, 100,000,000 shares authorized, 15,400,000 and 35,350,000 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

Additional paid-in capital 5,949,615 6,223,256

10 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Rents and other single-family property revenues $ 313,654 $ 280,689 $ 626,227 $ 568,031

11 unchanged sentences

Dividends on preferred shares 12,615 13,782 26,397 27,564

Redemption of perpetual preferred shares 15,879 — 15,879 —

Net income attributable to common shareholders $ 20,102 $ 15,369 $ 50,316 $ 35,613

10 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Net income $ 51,814 $ 31,807 $ 100,735 $ 69,334

Other comprehensive income (loss):

Gain (loss) on cash flow hedging instruments:

Unrealized gain on cash flow hedging instrument 9,230 —

Other comprehensive loss:

Cash flow hedging instruments:

Loss on settlement of cash flow hedging instrument ( 13,229 ) — ( 3,999 ) —

Reclassification adjustment for amortization of interest expense included in net income

( 240 ) ( 240 ) ( 481 ) ( 481 )

Other comprehensive income (loss) 8,989 ( 241 )

Other comprehensive loss ( 13,469 ) ( 240 ) ( 4,480 ) ( 481 )

Comprehensive income 38,345 31,567 96,255 68,853

1 unchanged sentence

Dividends on preferred shares 12,615 13,782 26,397 27,564

Redemption of perpetual preferred shares 15,879 — 15,879 —

Comprehensive income attributable to common shareholders $ 8,517 $ 15,164 $ 46,460 $ 35,202

25 unchanged sentences

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

Share-based compensation — — — — — — 2,090 — — 2,090 — 2,090

Common stock issued under share-based compensation plans, net of shares withheld for employee taxes

197,334 2 — — — — 2,876 — — 2,878 — 2,878

Distributions to equity holders:

Preferred shares (Note 10)

— — — — — — — ( 13,782 ) — ( 13,782 ) — ( 13,782 )

Noncontrolling interests — — — — — — — — — — ( 2,601 ) ( 2,601 )

Common shares ($ 0.05 per share)

— — — — — — — ( 15,098 ) — ( 15,098 ) — ( 15,098 )

Net income — — — — — — — 29,151 — 29,151 2,656 31,807

Total other comprehensive loss — — — — — — — — ( 205 ) ( 205 ) ( 35 ) ( 240 )

Balances at June 30, 2020 300,512,943 $ 3,005 635,075 $ 6 35,350,000 $ 354 $ 5,797,384 $ ( 461,435 ) $ 6,247 $ 5,345,561 $ 684,248 $ 6,029,809

American Homes 4 Rent

23 unchanged sentences

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

Share-based compensation — — — — — — 3,151 — — 3,151 — 3,151

Common stock issued under share-based compensation plans, net of shares withheld for employee taxes

90,373 1 — — — — 894 — — 895 — 895

Issuance of Class A common shares, net of offering costs of $ 200

5,500,000 55 — — — — 193,785 — — 193,840 — 193,840

Redemption of Series D perpetual preferred shares — — — — ( 10,750,000 ) ( 108 ) ( 260,133 ) ( 8,509 ) — ( 268,750 ) — ( 268,750 )

Redemption of Series E perpetual preferred shares — — — — ( 9,200,000 ) ( 92 ) ( 222,538 ) ( 7,370 ) — ( 230,000 ) — ( 230,000 )

Distributions to equity holders:

Preferred shares (Note 10)

— — — — — — — ( 12,615 ) — ( 12,615 ) — ( 12,615 )

Noncontrolling interests — — — — — — — — — — ( 5,138 ) ( 5,138 )

Common shares ($ 0.10 per share)

— — — — — — — ( 32,403 ) — ( 32,403 ) — ( 32,403 )

Net income — — — — — — — 48,596 — 48,596 3,218 51,814

Total other comprehensive loss — — — — — — — — ( 11,585 ) ( 11,585 ) ( 1,884 ) ( 13,469 )

Balances at June 30, 2021 322,208,183 $ 3,222 635,075 $ 6 15,400,000 $ 154 $ 5,949,615 $ ( 457,404 ) $ 1,991 $ 5,497,584 $ 675,921 $ 6,173,505

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(Amounts in thousands)

For the Three Months Ended

For the Six Months Ended

Operating activities

26 unchanged sentences

Financing activities

Proceeds from issuance of Class A common shares 194,040 —

Payments of Class A common share issuance costs ( 200 ) —

Redemption of perpetual preferred shares ( 498,750 ) —

Proceeds from exercise of stock options 2,030 4,341

2 unchanged sentences

Proceeds from revolving credit facility 790,000 130,000

Payments on revolving credit facility ( 170,000 ) —

Distributions to noncontrolling interests ( 12,896 ) ( 7,779 )

1 unchanged sentence

Distributions to preferred shareholders ( 26,397 ) ( 27,564 )

Deferred financing costs paid ( 11,182 ) —

Net cash provided by financing activities 171,830 40,388

5 unchanged sentences

(Amounts in thousands)

For the Three Months Ended

For the Six Months Ended

Supplemental cash flow information

4 unchanged sentences

Property and land contributions to unconsolidated joint ventures ( 30,014 ) ( 18,978 )

Unrealized gain on cash flow hedging instrument 9,230 —

Accrued loss on settlement of cash flow hedging instrument ( 3,999 ) —

Noncash right-of-use assets obtained in exchange for operating lease liabilities 537 2,911

4 unchanged sentences

(Amounts in thousands, except unit data)

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Single-family properties:

24 unchanged sentences

General partner:

Common units ( 317,252,885 and 316,656,460 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively)

Common units ( 322,843,258 and 316,656,460 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

5,124,029 4,928,819

Preferred units ( 35,350,000 units issued and outstanding at March 31, 2021 and December 31, 2020)

Preferred units ( 15,400,000 and 35,350,000 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

371,564 854,435

Limited partner:

Common units ( 51,376,980 and 51,726,980 units issued and outstanding at March 31, 2021 and December 31, 2020, respectively)

Common units ( 51,376,980 and 51,726,980 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

675,532 682,316

7 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Rents and other single-family property revenues $ 313,654 $ 280,689 $ 626,227 $ 568,031

10 unchanged sentences

Preferred distributions 12,615 13,782 26,397 27,564

Redemption of perpetual preferred units 15,879 — 15,879 —

Net income attributable to common unitholders $ 23,320 $ 18,025 $ 58,459 $ 41,770

10 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Net income $ 51,814 $ 31,807 $ 100,735 $ 69,334

Other comprehensive income (loss):

Gain (loss) on cash flow hedging instruments:

Unrealized gain on cash flow hedging instrument 9,230 —

Other comprehensive loss:

Cash flow hedging instruments:

Loss on settlement of cash flow hedging instrument ( 13,229 ) — ( 3,999 ) —

Reclassification adjustment for amortization of interest expense included in net income

( 240 ) ( 240 ) ( 481 ) ( 481 )

Other comprehensive income (loss) 8,989 ( 241 )

Other comprehensive loss ( 13,469 ) ( 240 ) ( 4,480 ) ( 481 )

Comprehensive income 38,345 31,567 96,255 68,853

Preferred distributions 12,615 13,782 26,397 27,564

Redemption of perpetual preferred units 15,879 — 15,879 —

Comprehensive income attributable to common unitholders $ 9,851 $ 17,785 $ 53,979 $ 41,289

19 unchanged sentences

Balances at March 31, 2020 300,950,684 $ 4,479,640 $ 854,435 52,026,980 $ 683,098 $ 7,582 $ 6,024,755

Share-based compensation — 2,090 — — — — 2,090

Common units issued under share-based compensation plans, net of units withheld for employee taxes

197,334 2,878 — — — — 2,878

Distributions to capital holders:

Preferred units (Note 10)

— — ( 13,782 ) — — — ( 13,782 )

Common units ($ 0.05 per unit)

— ( 15,098 ) — — ( 2,601 ) — ( 17,699 )

Net income — 15,369 13,782 — 2,656 — 31,807

Total other comprehensive loss — — — — — ( 240 ) ( 240 )

Balances at June 30, 2020 301,148,018 $ 4,484,879 $ 854,435 52,026,980 $ 683,153 $ 7,342 $ 6,029,809

American Homes 4 Rent, L.P.

17 unchanged sentences

Balances at March 31, 2021 317,252,885 $ 4,938,444 $ 854,435 51,376,980 $ 677,452 $ 15,849 $ 6,486,180

Share-based compensation — 3,151 — — — — 3,151

Common units issued under share-based compensation plans, net of units withheld for employee taxes

90,373 895 — — — — 895

Issuance of Class A common units, net of offering costs of $ 200

5,500,000 193,840 — — — — 193,840

Redemption of Series D perpetual preferred units — ( 8,509 ) ( 260,241 ) — — — ( 268,750 )

Redemption of Series E perpetual preferred units — ( 7,370 ) ( 222,630 ) — — — ( 230,000 )

Distributions to capital holders:

Preferred units (Note 10)

— — ( 12,615 ) — — — ( 12,615 )

Common units ($ 0.10 per unit)

— ( 32,403 ) — — ( 5,138 ) — ( 37,541 )

Net income — 35,981 12,615 — 3,218 — 51,814

Total other comprehensive loss — — — — — ( 13,469 ) ( 13,469 )

Balances at June 30, 2021 322,843,258 $ 5,124,029 $ 371,564 51,376,980 $ 675,532 $ 2,380 $ 6,173,505

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(Amounts in thousands)

For the Three Months Ended

For the Six Months Ended

Operating activities

26 unchanged sentences

Financing activities

Proceeds from issuance of Class A common units 194,040 —

Payments of Class A common unit issuance costs ( 200 ) —

Redemption of perpetual preferred units ( 498,750 ) —

Proceeds from exercise of stock options 2,030 4,341

2 unchanged sentences

Proceeds from revolving credit facility 790,000 130,000

Payments on revolving credit facility ( 170,000 ) —

Distributions to common unitholders ( 92,777 ) ( 53,000 )

Distributions to preferred unitholders ( 26,397 ) ( 27,564 )

Deferred financing costs paid ( 11,182 ) —

Net cash provided by financing activities 171,830 40,388

5 unchanged sentences

(Amounts in thousands)

For the Three Months Ended

For the Six Months Ended

Supplemental cash flow information

4 unchanged sentences

Property and land contributions to unconsolidated joint ventures ( 30,014 ) ( 18,978 )

Unrealized gain on cash flow hedging instrument 9,230 —

Accrued loss on settlement of cash flow hedging instrument ( 3,999 ) —

Noncash right-of-use assets obtained in exchange for operating lease liabilities 537 2,911

8 unchanged sentences

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.

As of June 30, 2021, the Company held 54,785 single-family properties in 22 states, including 589 properties classified as held for sale.

AH4R is the general partner of, and as of June 30, 2021 owned approximately 86.2 % of the common partnership interest in, the Operating Partnership.

The remaining 13.8 % of the common partnership interest was owned by limited partners.

35 unchanged sentences

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,

June 30, December 31,

2021 2020 2020 2019

3 unchanged sentences

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

The net book values of real estate assets consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands):

June 30, 2021 December 31, 2020

Occupied single-family properties $ 8,223,674 $ 7,957,513

7 unchanged sentences

Total real estate assets, net $ 9,301,994 $ 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.

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):

Depreciation expense related to single-family properties was $ 87.4 million and $ 81.6 million for the three months ended June 30, 2021 and 2020, respectively, and $ 173.7 million and $ 161.4 million for the six months ended June 30, 2021 and 2020, respectively.

The following table summarizes the Company’s dispositions of single-family properties and land for the three and six months ended June 30, 2021 and 2020 (in thousands, except property data):

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Single-family properties:

8 unchanged sentences

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.

Variable lease payments for tenant charge-backs were $ 38.0 million and $ 35.4 million for the three months ended June 30, 2021 and 2020, respectively, and $ 83.8 million and $ 75.4 million for the six months ended June 30, 2021 and 2020, respectively.

Variable lease payments for fees from single-family properties were $ 5.5 million and $ 3.3 million for the three months ended June 30, 2021 and 2020, respectively, and $ 10.7 million and $ 7.3 million for the six months ended June 30, 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

The following table summarizes future minimum rental revenues under existing leases on our properties as of June 30, 2021 (in thousands):

June 30, 2021

Remaining 2021 $ 413,500

Total $ 646,141

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.

As of June 30, 2021 and December 31, 2020, rent and other receivables included $ 5.9 million and $ 0.8 million, respectively, of insurance claims receivables related to storm damages and other matters.

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

The following table summarizes the components of escrow deposits, prepaid expenses and other assets as of June 30, 2021 and December 31, 2020 (in thousands):

June 30, 2021 December 31, 2020

Escrow deposits, prepaid expenses and other $ 57,784 $ 51,886

4 unchanged sentences

Total $ 182,701 $ 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.

Depreciation expense related to commercial real estate, software, vehicles and furniture, fixtures and equipment (“FF&E”), net was $ 2.6 million and $ 2.1 million for the three months ended June 30, 2021 and 2020, respectively, and $ 5.4 million and $ 4.1 million for the six months ended June 30, 2021 and 2020, respectively.

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 costs and other intangibles, net, consisted of the following as of June 30, 2021 and December 31, 2020 (in thousands):

June 30, 2021 December 31, 2020

Deferred leasing costs $ 3,677 $ 3,782

3 unchanged sentences

Total $ 14,735 $ 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.

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):

Amortization expense related to deferred leasing costs was $ 1.1 million for both the three months ended June 30, 2021 and 2020 and $ 2.1 million for both the six months ended June 30, 2021 and 2020 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 $ 0.6 million and $ 0.5 million for three months ended June 30, 2021 and 2020, respectively, and $ 1.1 million and $ 1.0 million for the six months ended June 30, 2021 and 2020, respectively, and was included in gross interest, prior to interest capitalization (see Note 8.

The following table sets forth the estimated annual amortization expense related to deferred costs and other intangibles, net as of June 30, 2021 for future periods (in thousands):

Leasing Costs Deferred

2 unchanged sentences

2022 375 2,709 3,084

2023 — 2,709 2,709

2024 — 2,717 2,717

2025 — 2,709 2,709

Thereafter — 779 779

Total $ 1,745 $ 12,990 $ 14,735

Investments in Unconsolidated Joint Ventures

As of March 31, 2021, the Company held 20 % ownership interests in three unconsolidated joint ventures.

As of June 30, 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.

Equity in net income (losses) of unconsolidated joint ventures is 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.

2 unchanged sentences

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

Joint Venture Description % Ownership at June 30, 2021 Completed Homes at June 30, 2021 Balances at

June 30, 2021 Balances at

December 31, 2020

4 unchanged sentences

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.

Management fee and development fee income from unconsolidated joint ventures was $ 2.5 million and $ 1.3 million for the three months ended June 30, 2021 and 2020, respectively, and $ 4.6 million and $ 2.2 million for the six months ended June 30, 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.

2 unchanged sentences

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.

As of June 30, 2021, the joint venture’s loan had a $ 139.7 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.

3 unchanged sentences

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):

The following table presents the Company’s debt as of June 30, 2021 and December 31, 2020 (in thousands):

Outstanding Principal Balance

Interest Rate (1)

Maturity Date March 31, 2021 December 31, 2020

Maturity Date June 30, 2021 December 31, 2020

AH4R 2014-SFR2 securitization 4.42 % October 9, 2024 $ 476,810 $ 479,981

9 unchanged sentences

Revolving credit facility (5)

1.31 % June 30, 2022 80,000 —

1.20 % April 15, 2026 620,000 —

Total debt 3,456,214 2,848,492

3 unchanged sentences

Total debt per balance sheet $ 3,428,314 $ 2,817,412

(1) Interest rates are as of March 31, 2021.

(1) Interest rates are as of June 30, 2021.

Unless otherwise stated, interest rates are fixed percentages.

2 unchanged sentences

(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.

Subsequent Events for further details.

(5) The revolving credit facility provides for a borrowing capacity of up to $ 1.25 billion and the Company had approximately $ 1.2 million and $ 1.5 million, respectively, committed to outstanding letters of credit that reduced our borrowing capacity as of June 30, 2021 and December 31, 2020.

The revolving credit facility bears interest at LIBOR plus 1.10 % as of June 30, 2021.

(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.

Amortization of deferred financing costs was $ 1.5 million for both the three months ended June 30, 2021 and 2020 and $ 3.0 million for both the six months ended June 30, 2021 and 2020, respectively, which was included in gross interest, prior to interest capitalization.

Revolving Credit Facility

In April 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, 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.

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):

The following table summarizes the contractual maturities of the Company’s principal debt balances on a fully extended basis as of June 30, 2021 (in thousands):

Debt Maturities

3 unchanged sentences

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):

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 and six months ended June 30, 2021 and 2020 (in thousands):

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Gross interest cost $ 34,415 $ 34,630 $ 68,298 $ 68,994

2 unchanged sentences

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

The following table summarizes accounts payable and accrued expenses as of June 30, 2021 and December 31, 2020 (in thousands):

June 30, 2021 December 31, 2020

Accrued property taxes $ 109,397 $ 48,689

Resident security deposits 99,093 90,621

Accrued construction and maintenance liabilities 54,062 42,483

Accrued interest 23,274 23,018

Prepaid rent 23,184 24,421

Operating lease liabilities 19,000 19,166

Accrued interest 12,807 23,018

Accounts payable 4,598 432

4 unchanged sentences

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.

Class A Common Share / Unit Offering

In May 2021, the Company completed an underwritten public offering for 18,745,000 of its Class A common shares of beneficial interest, $ 0.01 par value per share, of which 5,500,000 shares were issued directly by the Company, and 13,245,000 shares were offered on a forward basis at the request of the Company by the forward sellers.

In connection with this offering, the Company entered into forward sale agreements with the forward purchasers (the “May 2021 Forward Sale Agreements”) for these 13,245,000 shares which are accounted for in equity.

The Company expects to physically settle the May 2021 Forward Sale Agreements by the delivery of the Class A common shares and receive proceeds by May 21, 2022, although the Company has the right to elect settlement prior to that time subject to certain conditions.

Although the Company expects to physically settle, the May 2021 Forward Sale Agreements allow the Company to cash or net-share settle all or a portion of its obligations.

If the Company elects to cash or net share

settle the May 2021 Forward Sale Agreements, the Company may not receive any proceeds, and may owe cash or Class A common shares to the forward purchasers in certain circumstances.

The May 2021 Forward Sale Agreements are subject to early termination or settlement under certain circumstances.

The Company received net proceeds of $ 194.0 million from the 5,500,000 Class A common shares issued directly by the Company after deducting underwriting discounts and before offering costs of approximately $ 0.2 million.

The Operating Partnership issued an equivalent number of corresponding Class A units to AH4R in exchange for the net proceeds from the issuance.

The Company used the net proceeds to repay indebtedness under its revolving credit facility, to partially fund the redemption of its Series D and Series E perpetual preferred shares discussed below and for general corporate purposes.

The Company did not initially receive proceeds from the sale of the Class A common shares offered on a forward basis but estimates that net proceeds will be approximately $ 467.3 million after deducting underwriting discounts.

The Company expects to use these net proceeds for general corporate purposes including, without limitation, property acquisitions and developments.

At-the-Market Common Share Offering Program

1 unchanged sentence

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

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.

During the six months ended June 30, 2021 and 2020, no shares were issued under the At-the-Market Program.

As of June 30, 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

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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.

During the six months ended June 30, 2021 and 2020, we did not repurchase and retire any of our shares.

As of June 30, 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

As of June 30, 2021 and December 31, 2020, the Company had the following series of perpetual preferred shares outstanding (in thousands, except share data):

June 30, 2021 December 31, 2020

Series Issuance Date Earliest Redemption Date Dividend Rate Outstanding Shares Current Liquidation Value Outstanding Shares Current Liquidation Value

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Total preferred shares 15,400,000 $ 385,000 35,350,000 $ 883,750

In June 2021, the Company redeemed all 10,750,000 shares of the outstanding 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 in accordance with the terms of such shares.

The Operating Partnership also redeemed its corresponding Series D perpetual preferred units.

As a result of the redemption, the Company recorded an $ 8.5 million allocation of income to the Series D perpetual preferred shareholders

within the condensed consolidated statements of operations in the second quarter of 2021, which represents the initial liquidation value of the Series D perpetual preferred shares in excess of its carrying value as of the redemption date.

In June 2021, the Company redeemed all 9,200,000 shares of the outstanding 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 accrued and unpaid dividends in accordance with the terms of such shares.

The Operating Partnership also redeemed its corresponding Series E perpetual preferred units.

As a result of the redemption, the Company recorded a $ 7.4 million allocation of income to the Series E perpetual preferred shareholders within the condensed consolidated statements of operations in the second quarter of 2021, which represents the initial liquidation value of the Series E perpetual preferred shares in excess of its carrying value as of the redemption date.

Distributions

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For the Three Months Ended

Security March 31,

Security June 30,

2021 March 31,

2021 June 30,

2020 March 31,

Class A and Class B common shares $ 0.10 $ 0.10 $ 0.05 $ 0.05

6.500 % Series D perpetual preferred shares (1)

0.30 0.41 0.41 0.41

6.350 % Series E perpetual preferred shares

0.40 0.40 0.40 0.40

5.875 % Series F perpetual preferred shares

0.37 0.37 0.37 0.37

5.875 % Series G perpetual preferred shares

0.37 0.37 0.37 0.37

6.250 % Series H perpetual preferred shares

0.39 0.39 0.39 0.39

(1) The 6.500 % Series D perpetual preferred shares were redeemed on June 7, 2021 and the distributions for the three months ended June 30, 2021 represent the accrued and unpaid dividends paid to shareholders as part of the redemption.

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.

Former AH LLC members owned 50,779,990 and 51,129,990 , or approximately 13.6 % and 13.9 %, of the total 374,220,238 and 368,383,440 Class A units in the Operating Partnership as of June 30, 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.

Non-affiliate Class A unitholders owned 596,990 , or approximately 0.2 %, of the total 374,220,238 and 368,383,440 Class A units in the Operating Partnership as of June 30, 2021 and December 31, 2020, respectively.

The OP 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.

Share-Based Compensation

2021 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.

In May 2021, the Company’s shareholders approved and the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”).

The 2021 Plan replaced the 2012 Equity Incentive Plan (the “2012 Plan”) and provides for the issuance of up to 9,544,095 Class A common shares (including shares that remained available for future awards under the 2012 Plan as of the effective date of the 2021 Plan and shares related to outstanding awards under the 2012 Plan that may become available after expiration, forfeiture or cancellation of such awards).

The 2021 Plan provides for the issuance of Class A common shares through the grant of a variety of awards including stock options, stock appreciation rights, restricted share units (“RSUs”), unrestricted shares, dividend equivalent rights and performance-based awards.

The 2021 Plan terminates in May 2031, unless terminated earlier by the Company’s board of trustees.

When the Company issues Class A common shares under the 2021 Plan, the Operating Partnership issues an equivalent number of Class A units to AH4R.

During the six months ended June 30, 2021 and 2020, the Human Capital and Compensation Committee granted 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.

During the six months ended June 30, 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.

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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

The following table summarizes stock option activity under the 2012 Plan and 2021 Plan for the six months ended June 30, 2021 and 2020:

For the Six Months Ended

Options outstanding at beginning of period 1,090,300 1,529,800

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Options exercisable at end of period 938,800 1,124,800

The following table summarizes RSU activity under the Plan for the three months ended March 31, 2021 and 2020:

For the Three Months Ended

The following table summarizes RSU activity under the 2012 Plan and 2021 Plan for the six months ended June 30, 2021 and 2020:

For the Six Months Ended

RSUs outstanding at beginning of period 651,537 599,109

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RSUs outstanding at end of period 1,001,214 813,796

The following table summarizes PSU activity under the Plan for the three months ended March 31, 2021 and 2020:

For the Three Months Ended

The following table summarizes PSU activity under the 2012 Plan and 2021 Plan for the six months ended June 30, 2021 and 2020:

For the Six Months Ended

PSUs outstanding at beginning of period — —

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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):

The following table summarizes the activity that relates to the Company’s noncash share-based compensation expense for the three and six months ended June 30, 2021 and 2020 (in thousands):

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

General and administrative expense $ 1,823 $ 1,649 $ 6,165 $ 3,018

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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):

The following table reflects the Company’s computation of net income per common share on a basic and diluted basis for the three and six months ended June 30, 2021 and 2020 (in thousands, except share and per share data):

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Net income $ 51,814 $ 31,807 $ 100,735 $ 69,334

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Dividends on preferred shares 12,615 13,782 26,397 27,564

Redemption of perpetual preferred shares 15,879 — 15,879 —

Allocation to participating securities (1)

101 42 194 96

Numerator for income per common share–basic and diluted $ 20,001 $ 15,327 $ 50,122 $ 35,517

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Effect of dilutive securities:

Share-based compensation plan (2)

Share-based compensation plan and forward sale equity contracts (2)

1,056,266 400,698 1,027,978 446,462

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(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.

(2) Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options and the dilutive effect of unsettled forward sale equity contracts under the treasury stock method (see Note 10).

(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.

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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):

The following table reflects the Operating Partnership’s computation of net income per common unit on a basic and diluted basis for the three and six months ended June 30, 2021 and 2020 (in thousands, except unit and per unit data):

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Net income $ 51,814 $ 31,807 $ 100,735 $ 69,334

Preferred distributions 12,615 13,782 26,397 27,564

Redemption of perpetual preferred units 15,879 — 15,879 —

Allocation to participating securities (1)

101 42 194 96

Numerator for income per common unit–basic and diluted $ 23,219 $ 17,983 $ 58,265 $ 41,674

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Effect of dilutive securities:

Share-based compensation plan (2)

Share-based compensation plan and forward sale equity contracts (2)

1,056,266 400,698 1,027,978 446,462

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(2) Reflects the effect of potentially dilutive securities issuable upon the assumed exercise of stock options.

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.

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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.

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

The following table displays the carrying values and fair values of our debt instruments as of June 30, 2021 and December 31, 2020 (in thousands):

June 30, 2021 December 31, 2020

Carrying Value Fair Value Carrying Value Fair Value

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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.

The treasury lock was designated as a cash flow hedging instrument.

The treasury lock was settled in June 2021 in connection with the pricing of the 2031 Notes (see Note 16) and resulted in a $ 4.0 million loss that was recorded in other comprehensive loss as of June 30, 2021 and will be reclassified into earnings as an increase to interest expense over the 10 -year term of the 2031 Notes.

As the $ 4.0 million loss was paid upon issuance of the 2031 Notes in July 2021 (see Note 16), the amount was recorded in accounts payable and accrued expenses within the condensed consolidated balance sheets as of June 30, 2021.

The treasury lock is classified as Level 2 within the fair value hierarchy as its fair value was estimated using observable inputs, based on the 10-year treasury note rate.

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.

As of June 30, 2021 and December 31, 2020, affiliates owned approximately 14.1 % and 14.3 %, respectively, 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 June 30, 2021 and December 31, 2020, respectively) an approximate 25.9 % and 26.3 % interest as of June 30, 2021 and December 31, 2020, respectively.

American Homes 4 Rent

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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 June 30, 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.

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 June 30, 2021, the Company had commitments to acquire 626 single-family properties for an aggregate purchase price of $ 183.0 million, as well as $ 197.6 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.

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.

As of June 30, 2021 and December 31, 2020, the Company had sales in escrow for approximately 43 and 97 , respectively, of our single-family properties for aggregate selling prices of $ 14.4 million and $ 24.0 million, respectively.

As of June 30, 2021 and December 31, 2020, the Company, as a condition for entering into some of its development contracts, had outstanding surety bonds of approximately $ 59.9 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.

In the first quarter of 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.

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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.

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 third 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.

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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.

From July 1, 2021 through July 31, 2021, the Company added 412 properties to its portfolio for a total cost of approximately $ 143.0 million, which included 107 newly constructed properties delivered through our AMH Development Program and 46 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.

From July 1, 2021 through July 31, 2021, the Company disposed of 31 properties for aggregate net proceeds of approximately $ 8.9 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.

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.

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.

From July 1, 2021 through July 31, 2021, the Company paid down $ 620.0 million and borrowed an additional $ 20.0 million under its revolving credit facility, resulting in $ 20.0 million of outstanding borrowings under its revolving credit facility as of July 31, 2021.

Unsecured Senior Notes

In July 2021, the Operating Partnership issued $ 450.0 million of 2.375 % unsecured senior notes with a maturity date of July 15, 2031 (the “2031 Notes”) and $ 300.0 million of 3.375 % unsecured senior notes with a maturity date of July 15, 2051 (the “2051 Notes” and, together with the 2031 Notes, the “Notes”).

Interest on the Notes is payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2022.

The Operating Partnership received aggregate net proceeds of $ 731.6 million from these issuances, after underwriting fees of approximately $ 5.6 million and a $ 12.8 million discount, and before estimated offering costs of $ 1.1 million.

The Operating Partnership used the net proceeds from this offering to repay amounts outstanding on its revolving credit facility and intends to use any remaining net proceeds for general corporate purposes, including, without limitation, property acquisitions and developments, the expansion, redevelopment and/or improvement of existing properties in the Operating Partnership’s portfolio, other capital expenditures, the redemption of its preferred shares, the repayment of outstanding indebtedness, working capital and other general purposes.

The Notes are the Operating Partnership’s unsecured and unsubordinated obligations and rank equally in right of payment with all of the Operating Partnership’s existing and future unsecured and unsubordinated indebtedness.

The Operating Partnership may redeem the Notes in whole at any time or in part from time to time at the applicable redemption price specified in the indentures with respect to the Notes.

If the 2031 Notes are redeemed on or after April 15, 2031 (three months prior to the maturity date), the redemption price will be equal to 100 % of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date.

If the 2051 Notes are redeemed on or after January 15, 2051 (six months prior to the maturity date), the redemption price will be equal to 100 % of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements