Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

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, 2022 and December 31, 2021 (amounts in thousands):

			Outstanding Principal Balance
	Interest Rate (1)	Maturity Date	June 30, 2022		December 31, 2021
AH4R 2014-SFR2 securitization	4.42%	October 9, 2024	$	470,705	$	473,594
AH4R 2014-SFR3 securitization	4.40%	December 9, 2024	486,042		488,790
AH4R 2015-SFR1 securitization (2)	4.14%	April 9, 2045	511,859		514,868
AH4R 2015-SFR2 securitization (3)	4.36%	October 9, 2045	444,327		446,929
Total asset-backed securitizations			1,912,933		1,924,181
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		400,000
2031 unsecured senior notes (5)	2.46%	July 15, 2031	450,000		450,000
2032 unsecured senior notes	3.63%	April 15, 2032	600,000		—
2051 unsecured senior notes	3.38%	July 15, 2051	300,000		300,000
2052 unsecured senior notes	4.30%	April 15, 2052	300,000		—
Revolving credit facility (6)	2.89%	April 15, 2026	—		350,000
Total debt			4,462,933		3,924,181
Unamortized discounts on unsecured senior notes			(37,658)		(15,561)
Deferred financing costs, net (7)			(33,063)		(28,142)
Total debt per balance sheet			$	4,392,212	$	3,880,478

(1)Interest rates are rounded and as of June 30, 2022. 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 hedged to yield an interest rate of 4.08%.

(5)The stated interest rate on the 2031 unsecured senior notes is 2.38%, which was hedged to yield an interest rate of 2.46%.

(6)The revolving credit facility provides for a borrowing capacity of up to $1.25 billion and the Company had approximately $2.5 million and $1.6 million committed to outstanding letters of credit that reduced our borrowing capacity as of June 30, 2022 and December 31, 2021, respectively. The revolving credit facility bears interest at LIBOR plus 1.10% as of June 30, 2022. Effective July 1, 2022, the revolving credit facility bears interest at LIBOR plus 0.90% as a result of an upgrade in the Company's corporate credit rating to BBB with a stable rating outlook by S&P Global Ratings.

(7)Deferred financing costs relate to our asset-backed securitizations and unsecured senior notes. Amortization of deferred financing costs related to our asset-backed securitizations and unsecured senior notes was $1.7 million and $1.5 million for the three months ended June 30, 2022 and 2021, respectively, and $3.3 million and $3.0 million for the six months ended June 30, 2022 and 2021, respectively, and is included in gross interest, prior to interest capitalization.

Unsecured Senior Notes

In April 2022, the Operating Partnership issued $600.0 million of 3.625% unsecured senior notes with a maturity date of April 15, 2032 (the “2032 Notes”) and $300.0 million of 4.300% unsecured senior notes with a maturity date of April 15, 2052 (the “2052 Notes” and, together with the 2032 Notes, the “Notes”). Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2022. The Operating Partnership received aggregate net proceeds of $870.3 million from these issuances, after underwriting fees of approximately $6.5 million and a $23.2 million discount, and before offering costs of approximately $1.7 million. The Operating Partnership used net proceeds from this offering to repay amounts outstanding on its revolving credit facility, for the redemption of its Series F perpetual preferred shares and for general corporate purposes.

The Notes are the Operating Partnership’s unsecured and unsubordinated obligations and rank equally in right of payment with all of the Operating Partnership’s existing and future unsecured and unsubordinated indebtedness. The indentures require that we maintain certain financial covenants. The Operating Partnership may redeem the Notes in whole at any time or in part from time to time at the applicable redemption price specified in the indentures with respect to the Notes. If the 2032 Notes are redeemed on or after January 15, 2032 (three months prior to the maturity date), the redemption price will be equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date. If the 2052 Notes are redeemed on or after October 15, 2051 (six months prior to the maturity date), the redemption price will be equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest thereon to, but not including, the redemption date.

Debt Maturities

The following table summarizes the contractual maturities of the Company’s principal debt balances on a fully extended basis as of June 30, 2022 (amounts in thousands):

	Debt Maturities
Remaining 2022	$	10,358
2023	20,714
2024	951,430
2025	10,302
2026	10,302
Thereafter	3,459,827
Total debt	$	4,462,933

Interest Expense

The following table summarizes our (i) gross interest cost, which includes fees on our credit facilities and amortization of deferred financing costs and the discounts on unsecured senior notes, and (ii) capitalized interest for the three and six months ended June 30, 2022 and 2021 (amounts in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Gross interest cost	$	48,461	$	34,415	$	88,922	$	68,298
Capitalized interest	(13,660)		(6,887)		(26,554)		(12,765)
Interest expense	$	34,801	$	27,528	$	62,368	$	55,533