Debt

6 Months Ended

Jun. 30, 2019

All of the Company’s indebtedness is debt of the Operating Partnership. AH4R is not directly obligated under any indebtedness, but guarantees some of the debt of the Operating Partnership. The following table presents the Company’s debt as of June 30, 2019 and December 31, 2018 (in thousands):



			Outstanding Principal Balance
	Interest Rate ⁽¹⁾	Maturity Date	June 30, 2019			December 31, 2018
AH4R 2014-SFR2 securitization	4.42%	October 9, 2024	$	488,519		$	491,195
AH4R 2014-SFR3 securitization	4.40%	December 9, 2024	504,119			506,760
AH4R 2015-SFR1 securitization ⁽²⁾	4.14%	April 9, 2045	529,433			532,197
AH4R 2015-SFR2 securitization ⁽³⁾	4.36%	October 9, 2045	459,703			462,358
Total asset-backed securitizations			1,981,774			1,992,510
2028 unsecured senior notes ⁽⁴⁾	4.08%	February 15, 2028	500,000			500,000
2029 unsecured senior notes	4.90%	February 15, 2029	400,000			—
Revolving credit facility ⁽⁵⁾	3.60%	June 30, 2022	—			250,000
Term loan facility ⁽⁶⁾	N/A	N/A	—			100,000
Total debt			2,881,774			2,842,510
Unamortized discounts on unsecured senior notes			(4,385		)	(2,546		)
Deferred financing costs, net ⁽⁷⁾			(36,332		)	(36,421		)
Total debt per balance sheet			$	2,841,057		$	2,803,543


(1)	Interest rates are as of June 30, 2019. Unless otherwise stated, interest rates are fixed percentages.


(2)	The AH4R 2015-SFR1 securitization has an anticipated repayment date of April 9, 2025.


(3)	The AH4R 2015-SFR2 securitization has an anticipated repayment date of October 9, 2025.


(4)	The stated interest rate on the 2028 unsecured senior notes is 4.25%, which was effectively hedged to yield an interest rate of 4.08%.


(5)	The revolving credit facility provides for a borrowing capacity of up to $800.0 million and bears interest at a London Inter-Bank Offered Rate (“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%.


(6)	The term loan was fully repaid in June 2019. Prior to repayment, the term loan component of our credit facility bore interest at 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%.


(7)	Deferred financing costs relate to our asset-backed securitizations, term loan facility and unsecured senior notes. Amortization of deferred financing costs was $1.5 million for both the three months ended June 30, 2019 and 2018 and $3.0 million and $2.9 million for the six months ended June 30, 2019 and 2018, respectively, which was included in gross interest, prior to interest capitalization.

Debt Maturities

The following table summarizes the contractual maturities of the Company’s debt on a fully extended basis as of June 30, 2019 (in thousands):



Remaining 2019	$	10,358
2020	20,714
2021	20,714
2022	20,714
2023	20,714
Thereafter	2,788,560
Total debt	$	2,881,774

Unsecured Senior Notes

In January 2019, the Operating Partnership issued $400.0 million of 4.90% unsecured senior notes with a maturity date of February 15, 2029 (the “2029 Notes”). Interest on the 2029 Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2019. The Operating Partnership received net proceeds of $395.3 million from this issuance, after underwriting fees of approximately $2.6 million and a $2.1 million discount, and before estimated offering costs of $1.0 million. The Operating Partnership used the net proceeds from this issuance to repay amounts outstanding on our revolving credit facility and for general corporate purposes. The 2029 Notes are the Operating Partnership’s unsecured and unsubordinated obligation and rank equally in right of payment with all of the Operating Partnership’s existing and future unsecured and unsubordinated indebtedness. The Operating Partnership may redeem the 2029 Notes at any time, in whole or in part, at the applicable redemption price specified in the indenture with respect to the 2029 Notes. If the 2029 Notes are redeemed on or after November 15, 2028 (three months prior to the maturity date), the redemption price will be equal to 100% of the principal amount of the 2029 Notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date.

Interest Expense

The following table displays our total gross interest, which includes fees on our credit facilities and amortization of deferred financing costs, the discounts on unsecured senior notes, and capitalized interest for the three and six months ended June 30, 2019 and 2018 (in thousands):



	For the Three Months Ended						For the Six Months Ended
	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Gross interest	$	35,221		$	33,341		$	69,833		$	65,078
Capitalized interest	(2,650		)	(1,363		)	(5,347		)	(3,799		)
Interest expense	$	32,571		$	31,978		$	64,486		$	61,279