Real Estate Assets, Net

12 Months Ended

Dec. 31, 2019

The net book values of real estate assets consisted of the following as of December 31, 2019 and 2018 (in thousands):



	December 31, 2019		December 31, 2018
Occupied single-family properties	$	7,534,627	$	7,448,330
Single-family properties recently acquired	88,181		212,870
Single-family properties in turnover process	308,008		294,093
Single-family properties leased, not yet occupied	55,460		65,304
Single-family properties in operation, net	7,986,276		8,020,597
Development land	224,041		97,207
Single-family properties under development	131,386		56,444
Single-family properties held for sale, net	209,828		318,327
Total real estate assets, net	$	8,551,531	$	8,492,575

Depreciation expense related to single-family properties was $313.7 million, $300.7 million and $281.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

The following table summarizes the Company’s dispositions of single-family properties and land for the years ended December 31, 2019, 2018 and 2017 (in thousands, except property data):



	For the Year Ended December 31,
	2019		2018		2017
Single-family properties:
Properties sold	1,330		691		923
Net proceeds ⁽¹⁾	$	248,199	$	105,394	$	72,611
Net gain on sale	$	43,507	$	16,313	$	3,573
Land:
Net proceeds	$	3,205	$	763	$	—
Net gain on sale	$	366	$	220	$	—


(1)	Total net proceeds for the years ended December 31, 2019, 2018 and 2017 included $30.7 million, zero and $7.0 million, respectively, of notes receivable, before $1.2 million, zero and $1.5 million, respectively, of discounts, which are presented in escrow deposits, prepaid expenses and other assets (see Note 5).

During the third quarter of 2017, Hurricanes Harvey and Irma impacted certain properties in our Houston, Florida and Southeast markets. Approximately 125 homes sustained major damage and nearly 3,400 homes incurred minor damage, consisting primarily of downed trees and damaged roofs and fences. The Company’s property and casualty insurance policies provide coverage for wind and flood damage, as well as business interruption costs, during the period of remediation and repairs, subject to deductibles and limits. During the year ended December 31, 2017, the Company recognized an $11.0 million impairment charge to write down the net book values of the impacted properties, of which we believed it was probable that we would recover an estimated $8.9 million through insurance claims, and accrued $5.9 million of additional repair, remediation and other costs. The $8.0 million of net charges were included in hurricane-related charges, net within the consolidated statement of operations for the year ended December 31, 2017. After the $11.0 million impairment charge, the impacted properties had an aggregate net book value of $7.1 million. The impairment charge represents the difference between management’s estimates of the fair values of the impacted properties and their carrying values. The fair values were based on current market prices of the components of the properties that did not sustain damage. As these fair value measurements were estimated using unobservable inputs, we classify them within Level 3 of the valuation hierarchy. During the year ended December 31, 2019, we collected $3.5 million in proceeds from hurricane-related insurance claims, of which approximately $1.3 million related to business interruption recoveries, and during the year ended December 31, 2018, we collected $4.5 million in proceeds from hurricane-related insurance claims.