Real Estate Assets

12 Months Ended

Dec. 31, 2017

4. Real Estate Assets

In September 2017, Hurricanes Harvey and Irma impacted certain of our properties in Texas and Florida, respectively, all of which are covered by wind, flood and business interruption insurance. During the year ended December 31, 2017, our consolidated statement of operations reflects an estimated total net loss of $2.7 million for the properties affected by the hurricanes, which includes estimated gross casualty losses of $6.0 million, partially offset by estimated insurance recoveries of $3.3 million. We may record additional losses or receive additional insurance recoveries in future periods as property inspections and repairs are completed and insurance claims are confirmed. In addition, we experienced lost revenue during the third and fourth quarter of 2017 related to lost rents at certain affected properties, and we expect to recover a portion of this lost revenue from our business interruption insurance.

Real estate held for use

As of December 31, 2017, we had 12,241 single-family residential properties held for use. Of these properties, 10,850 had been leased, 591 were listed and ready for rent and 534 were in varying stages of renovation and unit turn status. With respect to the remaining 266 REO properties, we are in the process of determining whether these properties meet our rental profile.

As of December 31, 2016, we had 9,939 single-family residential properties held for use. Of these properties, 7,293 had been leased, 703 were listed and ready for rent and 607 were in various stages of renovation. With respect to the remaining 1,336 REO properties, we were in the process of determining whether these properties would meet our rental profile.

We generally rent our SFR properties under non-cancelable leases with a term of one to two years. Future minimum rental revenues under leases existing for the 10,850 properties that were leased as of December 31, 2017 are as follows ($ in thousands):



2018	$	77,777
2019	19,014
2020	614
2021	—
2022 and thereafter	—
	$	97,405

During the years ended December 31, 2017, 2016 and 2015, we recognized $3.0 million, $7.4 million and $3.5 million, respectively, of impairment on real estate held for use, which primarily related to our properties under evaluation for rental strategy.

Real estate held for sale

As of December 31, 2017 and 2016, our real estate held for sale included 333 and 594 REO properties, respectively, having an aggregate carrying value of $75.7 million and $133.3 million, respectively. Management has determined to divest these properties because they do not meet our residential rental property investment criteria.

During the years ended December 31, 2017, 2016 and 2015, we recognized $17.3 million, $25.8 million and $33.0 million, respectively, of net impairment on our real estate held for sale.