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Contributions by our Sponsor | 12 Months Ended
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Dec. 31, 2013
Organization Consolidation And Presentation Of Financial Statements [Abstract] |
Contributions by our Sponsor | Note 9. Contributions by our Sponsor Contribution in connection with 2012 Offering In connection with the 2012 Offering, on December 31, 2012, our Sponsor made an investment in our Company by contributing 367 single-family properties and $556,000 in cash. The contributed single-family properties were valued at $49,444,000, which approximated the Sponsor’s purchase price plus renovation costs incurred through November 5, 2012, an acquisition fee of 5% (based on the purchase price plus renovations costs through November 5, 2012) and all other out-of-pocket costs anticipated to have been incurred by the Sponsor in connection with the contribution of the properties, including transfer costs, title insurance premiums and legal fees. In connection with this contribution, our Sponsor received 3,300,000 Class A common shares, 667 Class B common shares and 32,667 Class A units (see Note 7). This transaction has been deemed to be between “entities under common control” under the provisions of ASC 805, Business Combinations, and as such, the accounts relating to the properties contributed have been reflected retroactively in the accompanying consolidated financial statements based on the results of operations and net book value recorded by our Sponsor of $47,646,000 as of date of the contribution, without consideration of the acquisition fees. Costs to transfer title to the properties of $455,000 to us were expensed. The contribution agreement was entered into and effective December 31, 2012 and provides that the Sponsor has conveyed all legal and beneficial right, title and interest in the contributed properties on that date. 2,770 Property Contribution On February 28, 2013, we entered into an agreement with our Sponsor providing for the contribution of 2,770 single-family properties for total consideration of $491,666,000 (the “2,770 Property Contribution”). Our Sponsor had acquired 33 of these properties in 2011, 2,628 in 2012 and 109 in 2013. The consideration to our Sponsor was 31,085,974 Series C convertible units in our Operating Partnership and 634,408 Class B common shares valued at $15.50 per unit/share, which approximates fair value (see Note 7). Because the 2,770 Property Contribution has been deemed to be a transaction between entities under common control, the shares issued and the property received have been recorded by us at the Sponsor’s historical book value and reflected as if they had been acquired by us on the dates such properties were acquired by our Sponsor. The following table summarizes the net assets and historical net loss of the 2,770 single-family properties based on the dates such properties were acquired by our Sponsor through the date of the 2,770 Property Contribution (in thousands, except number of properties):
|  | Period from June 23, 2011 to December 31, 2012 |  |  | Period from January 1, 2013 to February 28, 2013 |  |  | Total as of February 28, 2013 (transaction date) |
Number of properties |  |  | 2,661 |  |  |  | 109 |  |  |  | 2,770 |
Single family properties |  | $ | 365,937 |  |  | $ | 20,563 |  |  | $ | 386,500 |
Other assets |  |  | 7,203 |  |  |  | (2,086 | ) |  |  | 5,117 |
Other liabilities |  |  | (8,183 | ) |  |  | 558 |  |  |  | (7,625 | )
Net assets contributed |  | $ | 364,957 |  |  | $ | 19,035 |  |  | $ | 383,992 |
Rents from single family properties |  | $ | 4,413 |  |  | $ | 3,720 |  |  | $ | 8,133 |
Property operating expenses |  |  | (3,326 | ) |  |  | (1,920 | ) |  |  | (5,246 | )
Depreciation |  |  | (2,021 | ) |  |  | (1,324 | ) |  |  | (3,345 | )
Allocated general and administrative expenses |  |  | (6,996 | ) |  |  | (993 | ) |  |  | (7,989 | )
Net loss |  | $ | (7,930 | ) |  | $ | (517 | ) |  | $ | (8,447 | )
Contributed net assets and net loss |  | $ | 372,887 |  |  | $ | 19,552 |  |  | $ | 392,439 |
The net assets of the properties and the related historical net loss has been reflected as a credit to additional paid-in capital during the period such properties were acquired by the Sponsor. Upon consummation of the transaction on February 28, 2013, the total $386,500,000 net asset value of the property contribution was reclassified from additional paid-in capital to (i) noncontrolling interest in connection with the issuance of $378,770,000 Series C units in our Operating Partnership and (ii) Class B common shares in connection with the issuance of $7,730,000 Class B common shares (see Note 7). Additionally, the other net liabilities associated with the properties of $2,508,000 as of February 28, 2013 have been reclassified from additional paid-in capital to due from affiliates, as these amounts will be subsequently settled in cash by the Sponsor. Pursuant to the agreement, the Sponsor is responsible for all costs of transfer of the properties and for paying costs associated with the completion of initial renovation of the properties after we acquired them. The costs of such improvements for the period from March 1, 2013 to December 31, 2013 were $13,758,000. This amount has been reflected as an addition to the net asset value of the contributed properties, with a corresponding increase of $13,483,000 and $275,000 to the Series C units in our Operating Partnership and Class B common shares, respectively, issued in connection with the 2,770 Property Contribution. The total reduction to additional paid-in capital of $356,442,000 reflected in the accompanying consolidated statement of equity for the year ended December 31, 2013 consists of the $386,500,000 reclassification of the net asset value of the 2,770 properties, offset by (i) the $19,552,000 credit associated with the 109 properties acquired by our Sponsor from January 1, 2013 to February 28, 2013, (ii) 7,998,000 in excess of $6,000 par value associated with issuance of the 634,408 Class B common shares and (iii) the $2,508,000 reclassification of the other net liabilities associated with the properties to due from affiliates. Concurrently with this transaction, commencing February 28, 2013 the Advisor agreed to a permanent reduction in the advisory fee of $9,800,000 per year (see Note 8).

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