Fair Value

The carrying amount of rents and other receivables, restricted cash, escrow deposits, prepaid expenses and other assets, and accounts payable and accrued expenses approximate fair value because of the short maturity of these amounts.

Our revolving credit facility, term loan facility and asset-backed securitizations are financial instruments, which are classified as Level 3 in the fair value hierarchy as they were estimated by using unobservable inputs. We estimated their fair values by modeling the contractual cash flows required under the instruments and discounting them back to their present values using estimates of current market rates. Our unsecured senior notes and exchangeable senior notes are also financial instruments, which are classified as Level 2 in the fair value hierarchy as their fair values are estimated using observable inputs, based on the market value of the last trade at the end of the period.

The following table displays the carrying values and fair values of our debt instruments as of March 31, 2019, and December 31, 2018 (in thousands):



	March 31, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
AH4R 2014-SFR2 securitization	$	489,801	$	492,993	$	491,195	$	494,820
AH4R 2014-SFR3 securitization	505,439		510,007		506,760		511,450
AH4R 2015-SFR1 securitization	530,816		533,069		532,197		534,666
AH4R 2015-SFR2 securitization	460,897		465,990		462,358		467,303
Total asset-backed securitizations (1)	1,986,953		2,002,059		1,992,510		2,008,239
2028 unsecured senior notes, net	497,524		493,835		497,454		479,730
2029 unsecured senior notes, net	397,970		414,408		—		—
Total unsecured senior notes, net (1) (2)	895,494		908,243		497,454		479,730
Revolving credit facility (1) (3)	—		—		250,000		250,000
Term loan facility (1) (4)	100,000		100,000		100,000		100,000
Total debt	$	2,982,447	$	3,010,302	$	2,839,964	$	2,837,969

(1)

The carrying values of the asset-backed securitizations, unsecured senior notes, revolving credit facility and term loan facility exclude $29.8 million, $8.1 million, $6.4 million and $0.7 million, respectively, of unamortized deferred financing costs as of March 31, 2019, and exclude $31.0 million, $4.7 million, $6.9 million and $0.8 million, respectively, of unamortized deferred financing costs as of December 31, 2018.


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

(3)

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.


(4)	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.

Valuation of the participating preferred shares derivative liability considered scenarios in which the participating preferred shares would be redeemed or converted into Class A common shares by the Company and the subsequent payoffs under those scenarios. The valuation also considered certain variables such as the risk-free rate matching the assumed timing of either redemption or conversion, volatility of the underlying home price appreciation index, dividend payments, conversion rates, the assumed timing of either redemption or conversion and an assumed drift factor in home price appreciation across certain metropolitan statistical areas, or MSAs, as outlined in the agreement.

In October 2017, in anticipation of the issuance of the 2028 unsecured senior notes and in order to hedge interest rate risk, the Operating Partnership entered into a treasury lock agreement on a notional amount of $350.0 million, based on the 10-year treasury note rate at the time. The treasury lock was designated as a cash flow hedging instrument and was settled upon the issuance of the 2028 unsecured senior notes in February 2018, which resulted in a $9.6 million gain that was recorded in other comprehensive income and is being reclassified into earnings as a reduction of interest expense over the term of the 2028 unsecured senior notes.

The following table sets forth the fair values of the participating preferred shares derivative liability as of March 31, 2019, and December 31, 2018 (in thousands):



Description	Fair Value Hierarchy	March 31, 2019		December 31, 2018
Liabilities:
Participating preferred shares derivative liability	Level 3	$	—	$	—

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 three months ended March 31, 2019 and 2018 (in thousands):

Description

January 1, 2019

Conversions

Remeasurement included in earnings

March 31, 2019

Liabilities:

Participating preferred shares derivative liability

—



Description	January 1, 2018		Conversions		Remeasurement included in earnings			March 31, 2018
Liabilities:
Participating preferred shares derivative liability	$	29,470	$	—	$	(1,212	)	$	28,258