SINGLE-FAMILY RENTAL PROPERTIES

6 Months Ended

Jun. 30, 2022

The following table summarizes the net carrying value of investments in single-family rental (“SFR”) properties:


	June 30, 2022		December 31, 2021
Land	$	170,055	$	109,152
Building	680,219		436,610
Capital improvements	90,314		40,655

Total gross investment in SFR properties	940,588		586,417
Accumulated depreciation	(13,361)		(6,810)
Investment in SFR properties, net	$	927,227	$	579,607

Depreciation expense for the six months ended June 30, 2022 and 2021 totaled $6.6 million and $1.3 million, respectively, and is included in Other Income (Loss), Net in the Consolidated Statements of Income.

As of June 30, 2022 and December 31, 2021, the carrying amount of the SFR properties includes capitalized acquisition costs of $6.8 million and $3.8 million, respectively.

The following table summarizes the activity related to the net carrying value of investments in SFR properties:


Balance at December 31, 2021	$	579,607
Acquisitions and capital improvements	354,792
Dispositions	(621)


Accumulated depreciation	(6,551)
Balance at June 30, 2022	$	927,227

Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one to two years. The following table summarizes our future minimum rental revenues under existing leases on SFR properties:


2022	$	38,937
2023 and thereafter	15,675
Total	$	54,612

The following table summarizes the activity of the SFR portfolio by units:


Balance at December 31, 2021						2,551
Acquisition of SFR units						1,059
Disposition of SFR units						(2)
Reclassifications to SFR properties, held for sale						—
Balance at June 30, 2022						3,608

See Note 18 regarding the financing of SFR Properties.