6 unchanged sentences
Interest Rate Risk
−Removed: A primary market risk to which we believe we are exposed is interest rate risk, which may result from many factors, including government monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control.
+Added: A primary market risk to which we believe we are exposed is interest rate risk, which may result from many factors, including government monetary and tax policies, unfavorable global and United States economic conditions (including inflation and interest rates), geopolitical tensions, and other factors that are beyond our control.
We may incur additional variable rate debt in the future, including additional amounts that we may borrow under the Credit Facility.
1 unchanged sentence
Significant increases in interest rates may also have an adverse impact on our earnings if we are unable to increase rents on expired leases or acquire single-family homes with rental rates high enough to offset the increase in interest rates on our borrowings.
−Removed: As of December 31, 2021, our outstanding variable-rate debt was comprised of borrowings on our mortgage loans of $2,071.9 million and Term Loan Facility of $2,500.0 million for a combined total of $4,571.9 million.
−Removed: We effectively converted 96.7% of these borrowings to a fixed rate through interest rate swap agreements.
−Removed: Additionally, all borrowings bear interest at LIBOR plus the applicable spread.
−Removed: Assuming no change in the outstanding balance of our existing debt, the projected effect of a 100 bps increase or decrease in LIBOR on our annual interest expense would be an estimated increase of $1.5 million or $20.9 million, respectively.
−Removed: This estimate considers the impact of our interest rate swap agreements, interest rate cap agreements, and any LIBOR floors or minimum interest rates stated in the agreements of the respective borrowings.
−Removed: A 100 bps decrease in LIBOR results in a negative LIBOR rate and additional interest expense for us.
−Removed: Our Credit Facility agreement contains a LIBOR floor, and there is no reciprocal feature in our interest rate swap agreements.
+Added: As of December 31, 2022, our $3,886.0 million of outstanding variable-rate debt was comprised of borrowings on our mortgage loans of $661.0 million and Term Loan Facilities of $3,225.0 million.
+Added: As of December 31, 2022, we had effectively converted 98.3% of these borrowings to a fixed rate through interest rate swap agreements.
+Added: Our variable-rate borrowings bear interest at one month LIBOR or Adjusted SOFR plus the applicable spread.
+Added: Assuming no change in the outstanding balance of our existing debt, the projected effect of a 100 bps increase or decrease in LIBOR and Adjusted SOFR, collectively, on our annual interest expense would be an estimated increase or decrease of $0.7 million.
+Added: This estimate considers the impact of our interest rate swap agreements, interest rate cap agreements, and any LIBOR or SOFR floors or minimum interest rates stated in the agreements of the respective borrowings.
This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment.
1 unchanged sentence
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.
+Added: Inflation primarily impacts our results of operations as a result of increased repair and maintenance and other costs and wage pressures.
+Added: Inflation could also impact our cost of capital as a result of changing interest rates on variable rate debt that is not hedged or if our debt instruments are refinanced in a high-inflation environment.
+Added: Our resident leases typically have a term of one to two years, which generally enables us to compensate for inflationary effects by increasing rents on our homes to current market rates.
+Added: Although an extreme or sustained escalation in costs could have a negative impact on our residents and their ability to absorb rent increases, we do not believe this had a material impact on our results of operations for the year ended December 31, 2022.
Our business and related operating results have been, and we believe will continue to be, impacted by seasonal factors throughout the year.
6 unchanged sentences
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.