XML 45 R31.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and assess performance. The Company is organized as a REIT with activities related to acquiring, renovating, developing, leasing and managing single-family homes as rental properties in one geographically diversified portfolio, which represents our one operating and reportable segment. Our one reportable segment derives its revenues from leasing single-family homes to tenants under non-cancelable lease agreements generally with a term of one year as well as certain fees charged to tenants. The Company’s CODM is our Chief Executive Officer and Chief Operating Officer.

The accounting policies of our one reportable segment are the same as those described in Note 2. Significant Accounting Policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Net income and its components, as presented on the consolidated statements of operations, are metrics utilized by the CODM to assess the reporting segment’s performance and allocate resources. The measure of segment assets is reported on the consolidated balance sheets as total assets.

The CODM also reviews core net operating income (“Core NOI”) at the total portfolio level as an additional segment profitability measure. The CODM uses the segment profitability measures to evaluate income generated from total portfolio assets in deciding whether to reinvest profits into enhancing the existing portfolio or for acquisitions or development of new properties. Property acquisition and disposition decisions are made at the individual property level and development decisions are made at the community level. Core NOI for the total portfolio is also used to monitor budget versus actual results and in competitive analysis to benchmark against the Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.

In addition to the revenues and significant segment expenses included within the consolidated statements of operations, the following table presents significant segment expenses regularly provided to the CODM within property operating expenses for the three months ended March 31, 2025 and 2024:
For the Three Months Ended
March 31,
20252024
Property operating expenses
Property tax expense$66,940 $64,588 
HOA fees6,814 6,314 
Repairs and maintenance and turnover costs88,845 80,248 
Insurance4,931 4,777 
Total property operating expenses$167,530 $155,927 
The table below summarizes the significant expense categories included in Core NOI and regularly provided to the CODM for the three months ended March 31, 2025 and 2024:

 For the Three Months Ended
March 31,
(Amounts in thousands)
20252024
Core revenues$395,415 $366,218 
Core property operating expenses
Property tax expense66,940 64,588 
HOA fees, net of tenant charge-backs6,814 6,314 
Repairs and maintenance and turnover costs, net of tenant charge-backs27,281 24,846 
Insurance4,931 4,777 
Property management expenses, net of tenant charge-backs and excluding share-based compensation30,638 28,023 
Total core property operating expenses136,604 128,548 
Core NOI$258,811 $237,670 
Reconciliation of core revenues to rents and other single-family property revenues
Core revenues$395,415 $366,218 
Tenant charge-backs63,861 57,337 
Rents and other single-family property revenues$459,276 $423,555 
Reconciliation of Core NOI to net income
Core NOI$258,811 $237,670 
Noncash share-based compensation - property management(1,246)(1,444)
General and administrative expense(19,671)(21,885)
Interest expense(45,426)(38,577)
Acquisition and other transaction costs(3,061)(3,324)
Depreciation and amortization(124,928)(115,726)
Loss on early extinguishment of debt(216)(954)
Gain on sale and impairment of single-family properties and other, net62,016 68,901 
Other income and expense, net2,434 3,434 
Net income$128,713 $128,095