Single-Family Properties

9 Months Ended

Sep. 30, 2016

Real Estate [Abstract]

Single-Family Properties

Single-Family Properties

Single-family properties, net, consisted of the following as of September 30, 2016, and December 31, 2015 (dollars in thousands):

	September 30, 2016
	Number of properties	Net book value
Leased single-family properties	44,746	$	7,072,461
Single-family properties being renovated	406	77,451
Single-family properties being prepared for re-lease	90	15,333
Vacant single-family properties available for lease	1,673	274,845
Single-family properties held for sale, net	1,238	105,308
Total	48,153	$	7,545,398

	December 31, 2015
	Number of properties	Net book value
Leased single-family properties	36,403	$	5,895,482
Single-family properties being renovated	476	75,055
Single-family properties being prepared for re-lease	178	28,525
Vacant single-family properties available for lease	1,678	283,444
Single-family properties held for sale, net	45	7,432
Total	38,780	$	6,289,938

Single-family properties, net increased $1.2 billion to $7.5 billion as of September 30, 2016, compared to $6.3 billion as of December 31, 2015, primarily related to the acquisition of 8,936 properties in connection with the Merger with American Residential Properties, Inc. ("ARPI") (see Note 10). Single-family properties, net at September 30, 2016, and December 31, 2015, included $15.4 million and $8.5 million, respectively, related to properties for which the recorded grant deed had not been received. For these properties, the trustee or seller has warranted that all legal rights of ownership have been transferred to us on the date of the sale, but there was a delay for the deeds to be recorded.

Depreciation expense related to single-family properties was $67.2 million and $63.9 million for the three months ended September 30, 2016 and 2015, respectively, and $194.2 million and $165.8 million for the nine months ended September 30, 2016 and 2015, respectively.

During the three and nine months ended September 30, 2016, the Company sold 453 and 587 homes, respectively, whichgenerated total net proceeds of $56.2 million and $71.9 million, respectively, and resulted in a net gain on sale of $11.7 million and $12.6 million, respectively. In accordance with ASC 350, Intangibles—Goodwill and Other, the Company allocates a portion of goodwill to the carrying values of its leased properties sold, which results in a reduction to the gain on sale. The amount of goodwill allocated to leased properties sold during the three and nine months ended September 30, 2016, was $0.4 million, which reduced goodwill to $120.3 million as of September 30, 2016, compared to $120.7 million as of December 31, 2015.