Fair Value (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table displays the carrying values and fair values of our debt instruments as of September 30, 2018, and December 31, 2017 (in thousands):



	September 30, 2018				December 31, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
AH4R 2014-SFR2 securitization	$	492,478	$	498,510	$	496,326	$	504,730
AH4R 2014-SFR3 securitization	508,080		516,519		512,041		521,252
AH4R 2015-SFR1 securitization	533,578		538,414		537,723		544,592
AH4R 2015-SFR2 securitization	463,552		470,844		467,267		475,832
Total asset-backed securitizations (1)	1,997,688		2,024,287		2,013,357		2,046,406
Unsecured senior notes, net (1) (2)	497,384		477,805		—		—
Exchangeable senior notes, net (2)	114,507		144,135		111,697		147,462
Secured note payable (3)	—		—		48,859		49,027
Revolving credit facility (1) (4)	—		—		140,000		140,000
Term loan facility (1) (5)	100,000		100,000		200,000		200,000
Total debt	$	2,709,579	$	2,746,227	$	2,513,913	$	2,582,895

(1)

The carrying values of the asset-backed securitizations, unsecured senior notes, revolving credit facility and term loan facility exclude $32.3 million, $4.8 million, $7.4 million and $0.8 million, respectively, of unamortized deferred financing costs as of September 30, 2018, and exclude $36.0 million, zero, $8.8 million and $2.0 million, respectively, of unamortized deferred financing costs as of December 31, 2017.


(2)	The carrying values of the unsecured senior notes, net and exchangeable senior notes, net are presented net of unamortized discounts.


(3)	The secured note payable was paid off in full during the second quarter of 2018.

(4)

As our revolving credit facility bears interest at a floating rate based on an index plus a spread, which is a LIBOR rate plus a margin ranging from 0.825% to 1.55% or a base rate (generally determined according to a prime rate or federal funds rate) plus a margin ranging from 0.00% to 0.55%, management believes that the carrying value of the revolving credit facility reasonably approximates fair value.


(5)	As our term loan facility bears interest at a floating rate based on an index plus a spread, which is a LIBOR rate plus a margin ranging from 0.90% to 1.75% or a base rate (generally determined according to a prime rate or federal funds rate) plus a margin ranging from 0.00% to 0.75%, management believes that the carrying value of the term loan facility reasonably approximates fair value.

Fair Value of Financial Instruments

The following table sets forth the fair values of the participating preferred shares derivative liability and treasury lock as of September 30, 2018, and December 31, 2017 (in thousands):



Description	Fair Value Hierarchy	September 30, 2018		December 31, 2017
Assets:
Treasury lock	Level 2	$	—	$	75
Liabilities:
Participating preferred shares derivative liability	Level 3	$	—	$	29,470

Changes in Fair Value of Level 3 Financial Instruments

The following tables present changes in the fair values of our Level 3 financial instruments that were measured on a recurring basis with changes in fair value recognized in remeasurement of participating preferred shares within the condensed consolidated statements of operations for the nine months ended September 30, 2018 and 2017 (in thousands):



Description	January 1, 2018		Conversions			Remeasurement included in earnings			September 30, 2018
Liabilities:
Participating preferred shares derivative liability	$	29,470	$	(28,258	)	$	(1,212	)	$	—



Description	January 1, 2017		Conversions		Remeasurement included in earnings			September 30, 2017
Liabilities:
Participating preferred shares derivative liability	$	69,810	$	—	$	(1,341	)	$	68,469