American Homes 4 Rent 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk Interest Rate Risk During the nine months ended September 30, 2025, the Company borrowed $520.0 million and paid down $410.0 million on its revolving credit facility, resulting in $110.0 million of outstanding variable rate debt as of September 30, 2025. We may incur additional variable rate debt in the future, including additional amounts that we may borrow under our revolving credit facility. As of September 30, 2025, assuming no change in the outstanding balance of our existing variable rate debt, which bears interest at the Secured Overnight Financing Rate (“SOFR”) plus a 0.10% spread adjustment and a margin of 0.85%, a hypothetical 100 basis point increase or decrease in the SOFR would increase or decrease our projected annual interest expense by approximately $1.1 million. This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we would consider taking actions to further mitigate our exposure to the change. However, because of the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure. Treasury lock agreements are used from time to time to manage the potential change in interest rates in anticipation of the possible issuance of fixed rate debt. We do not hold or issue these derivative contracts for trading or speculative purposes. There have been no other material changes to our market risk from those disclosed in section Part II, “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” of the 2024 Annual Report. 50