XML 42 R28.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Value
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
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.

Our notes receivable are financial instruments classified as Level 3 in the fair value hierarchy as their fair values were estimated using unobservable inputs. We estimated the fair values of the notes receivable by modeling the expected contractual cash flows required under the instruments and discounting them back to their present values using estimates of current market rates. As the estimated current market rates were not substantially different from the discount rates originally applied, the carrying amount of notes receivable, net approximates fair value.

Our asset-backed securitizations and revolving credit facility are financial instruments classified as Level 3 in the fair value hierarchy as their fair values were estimated using unobservable inputs. We estimated the fair values of the asset-backed securitizations by modeling the contractual cash flows required under the instruments and discounting them back to their present values using estimates of current market rates. As our revolving credit facility bears interest at a floating rate based on an index plus a spread (see Note 8. Debt), management believes that the carrying value (excluding deferred financing costs) of the revolving credit facility reasonably approximates fair value. 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 September 30, 2024 and December 31, 2023 (amounts in thousands):
September 30, 2024December 31, 2023
Carrying ValueFair ValueCarrying ValueFair Value
AMH 2014-SFR2 securitization, net$— $— $460,507 $463,237 
AMH 2014-SFR3 securitization, net— — 475,854 478,833 
AMH 2015-SFR1 securitization, net496,159 498,603 500,713 503,668 
AMH 2015-SFR2 securitization, net430,940 433,815 434,347 437,508 
Total asset-backed securitizations, net927,099 932,418 1,871,421 1,883,246 
2028 unsecured senior notes, net497,337 495,595 496,745 486,875 
2029 unsecured senior notes, net397,524 404,312 397,107 396,956 
2031 unsecured senior notes, net442,951 387,122 442,172 371,817 
2032 unsecured senior notes, net585,012 554,910 583,521 539,304 
2034 unsecured senior notes I, net594,529 620,004 — — 
2034 unsecured senior notes II, net493,162 517,470 — — 
2051 unsecured senior notes, net291,729 211,587 291,498 207,264 
2052 unsecured senior notes, net289,470 248,697 289,183 244,275 
Total unsecured senior notes, net3,591,714 3,439,697 2,500,226 2,246,491 
Revolving credit facility— — 90,000 90,000 
Total debt$4,518,813 $4,372,115 $4,461,647 $4,219,737 

During the third quarter of 2024, in anticipation of a potential debt issuance and in order to hedge interest rate risk, the Company entered into two treasury lock agreements with an aggregate notional amount of $200.0 million based on the 10-year treasury note rates at the time. The treasury locks were designated as cash flow hedging instruments and had an aggregate fair value of $2.6 million as of September 30, 2024, 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 locks 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 locks are the only financial instruments recorded at fair value on a recurring basis in the condensed consolidated financial statements and are classified as Level 2 within the fair value hierarchy as their fair values are estimated using observable inputs based on the 10-year treasury note rate.