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The primary market risks to which we are exposed are interest rate risk and seasonality.
−Removed: We may in the future use derivative financial instruments to manage, or hedge, interest rate risks related to any borrowings we may have.
−Removed: We may enter into such contracts only with major financial institutions based on their credit ratings and other factors.
+Added: We use, and may continue to use, derivative financial instruments to manage, or hedge, interest rate risks related to our borrowings.
+Added: We enter into such contracts only with major financial institutions based on their credit ratings and other relevant factors.
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, fluctuating global and United States economic conditions (including inflation, elevated interest rates, and bank failures), geopolitical tensions, 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, fluctuating global and United States economic conditions (including uncertainty in financial markets, inflation, elevated interest rates, and evolving trade and tariff policies), 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.
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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, 2024, our $3,045.0 million of outstanding variable-rate debt was comprised of Revolving Facility of $570.0 million, and Term Loan Facilities of $2,475.0 million.
−Removed: As of December 31, 2024, we had effectively converted 76.4% of these borrowings to a fixed rate through interest rate swap agreements.
+Added: As of December 31, 2025, our $2,620.0 million of outstanding variable-rate debt included $145.0 million on the Revolving Facility and $2,475.0 million on the Term Loan Facilities.
Our variable-rate borrowings bear interest at SOFR, as adjusted if appropriate, plus the applicable spread.
+Added: As of December 31, 2025, we had effectively converted 80.2% of these borrowings to a fixed rate through interest rate swap agreements.
Assuming no change in the outstanding balance of our existing debt, the projected effect of a 100 bps increase or decrease in SOFR, collectively, on our annual interest expense would be an estimated increase or decrease of $5.2 million.
−Removed: This estimate considers the impact of our interest rate swap agreements, interest rate cap agreement, and any Term SOFR floors or minimum interest rates stated in the agreements of the respective borrowings.
+Added: This estimate considers the impact of our interest rate swap agreements and any Term 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.
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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.
−Removed: Inflation primarily impacts our results of operations as a result of increased repair and maintenance and other costs and wage pressures.
+Added: Inflation primarily impacts our results of operations in the form of increased repair and maintenance and other costs and wage pressures.
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.
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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.