American Homes 4 RentAMH
American Homes 4 Rent Fair Value Disclosure
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 generally approximate fair value because of the short maturity of these amounts.
Our notes receivable are financial instruments classified as Level 3 in the fair value hierarchy as their fair values were estimated using unobservable inputs. We estimated the fair values of the notes receivable by modeling the expected contractual cash flows required under the instruments and discounting them back to their present values using estimates of current market rates. As the estimated current market rates were not substantially different from the discount rates originally applied, the carrying amount of notes receivable, net approximates fair value.
Our asset-backed securitizations and revolving credit facility are financial instruments classified as Level 3 in the fair value hierarchy as their fair values were estimated using unobservable inputs. We estimated the fair values of the asset-backed securitizations by modeling the contractual cash flows required under the instruments and discounting them back to their present values using estimates of current market rates. As our revolving credit facility bears interest at a floating rate based on an index plus a spread (see Note 7. Debt), management believes that the carrying value (excluding deferred financing costs) of the revolving credit facility reasonably approximates fair value. Our unsecured senior notes are financial instruments classified as Level 2 in the fair value hierarchy as their fair values were 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 December 31, 2025 and 2024 (amounts in thousands):
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
| AMH 2015-SFR1 securitization, net | $ | — | $ | — | $ | 494,635 | $ | 496,776 | |||||||||||||||
| AMH 2015-SFR2 securitization, net | — | — | 429,709 | 432,316 | |||||||||||||||||||
| Total asset-backed securitizations, net | — | — | 924,344 | 929,092 | |||||||||||||||||||
| 2028 unsecured senior notes, net | 498,323 | 501,385 | 497,534 | 488,265 | |||||||||||||||||||
| 2029 unsecured senior notes, net | 398,229 | 406,716 | 397,665 | 397,064 | |||||||||||||||||||
| 2030 unsecured senior notes, net | 642,250 | 663,436 | — | — | |||||||||||||||||||
| 2031 unsecured senior notes, net | 444,249 | 402,764 | 443,210 | 376,947 | |||||||||||||||||||
| 2032 unsecured senior notes, net | 587,497 | 567,708 | 585,509 | 537,174 | |||||||||||||||||||
| 2034 unsecured senior notes I, net | 595,230 | 620,784 | 594,640 | 597,504 | |||||||||||||||||||
| 2034 unsecured senior notes II, net | 494,031 | 517,225 | 493,336 | 496,185 | |||||||||||||||||||
| 2035 unsecured senior notes, net | 493,863 | 508,475 | 493,150 | 487,335 | |||||||||||||||||||
| 2051 unsecured senior notes, net | 292,115 | 203,439 | 291,807 | 198,174 | |||||||||||||||||||
| 2052 unsecured senior notes, net | 289,948 | 238,782 | 289,567 | 234,258 | |||||||||||||||||||
| Total unsecured senior notes, net | 4,735,735 | 4,630,714 | 4,086,418 | 3,812,906 | |||||||||||||||||||
| Revolving credit facility | 360,000 | 360,000 | — | — | |||||||||||||||||||
| Total debt | $ | 5,095,735 | $ | 4,990,714 | $ | 5,010,762 | $ | 4,741,998 | |||||||||||||||
Recurring Fair Value Measurements
During the third quarter of 2024, in anticipation of a potential debt issuance and in order to hedge interest rate risk, the Company entered into two treasury lock agreements with an aggregate notional amount of $200.0 million based on the 10-year treasury note rates at the time. The treasury locks were designated as cash flow hedging instruments. The Company settled the treasury locks during the fourth quarter of 2024 in connection with the pricing of the 2035 Notes (see Note 7. Debt), which resulted in an aggregate gain of $8.6 million recorded in other comprehensive income at the time that will be reclassified into earnings as a reduction of interest expense over the 10-year term of the 2035 Notes. The treasury locks were the only financial instruments recorded at fair value on a recurring basis in the consolidated financial statements and were classified as Level 2 within the fair value hierarchy as their fair values were estimated using observable inputs based on the 10-year treasury note rates.
During the first quarter of 2025, in anticipation of a potential debt issuance and in order to hedge interest rate risk, the Company entered into two treasury lock agreements with an aggregate notional amount of $200.0 million based on the 10-year treasury note rates at the time. The treasury locks were designated as cash flow hedging instruments. The Company settled the treasury locks during the second quarter of 2025 in connection with the pricing of the 2030 Notes (see Note 7. Debt), which resulted in an immaterial gain. The treasury locks were the only financial instruments recorded at fair value on a recurring basis in the consolidated financial statements and were classified as Level 2 within the fair value hierarchy as their fair values were estimated using observable inputs based on the 10-year treasury note rates.
Nonrecurring Fair Value Measurements
Single-family properties and land lots classified as held for sale are reported at the lower of their carrying value or estimated fair value less costs to sell and are presented separately in single-family properties and land held for sale, net within the consolidated balance sheets. The fair values were classified as Level 3 in the fair value hierarchy as their fair values were estimated using unobservable inputs based on the estimated sales prices derived from third-party automated valuation models upon classification as held for sale. Impairment charges are included in gain on sale and impairment of single-family properties and other, net within the consolidated statements of operations.
The following table summarizes single-family properties and land for which the Company has recorded impairments in the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 (amounts in thousands):
| For the Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Pre-impairment carrying value | $ | 149,398 | $ | 59,195 | $ | 14,633 | |||||||||||
| Total impairments | (34,363) | (9,163) | (1,908) | ||||||||||||||
| Fair value | $ | 115,035 | $ | 50,032 | $ | 12,725 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.