Other Assets

3 Months Ended

Mar. 31, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Note 5—Other Assets

As of March 31, 2020 and December 31, 2019, the balances in other assets, net are as follows:



	March 31, 2020		December 31, 2019
Investments in debt securities, net	$	311,540	$	316,991
Held for sale assets⁽¹⁾	106,328		116,529
Investment in unconsolidated joint venture	54,629		54,778
Prepaid expenses	40,095		32,106
Rent and other receivables, net	25,048		25,244
ROU lease assets — operating and finance, net	20,613		13,768
Investments in equity securities	16,734		16,650
Corporate fixed assets, net	9,363		9,825
Deferred leasing costs, net	7,486		7,427
Amounts deposited and held by others	2,731		1,348
Deferred financing costs, net	2,172		2,765
Derivative instruments (Note 7)	22		1,643
Other	6,092		6,192
Total	$	602,853	$	605,266


(1)	As of March 31, 2020 and December 31, 2019, 436 and 478 properties, respectively, are classified as held for sale.

Investments in Debt Securities, net

In connection with certain of our Securitizations (as defined in Note 6), we have retained and purchased certificates totaling $311,540, net of unamortized discounts of $2,553, as of March 31, 2020. These investments in debt securities are classified as held to maturity investments. As of March 31, 2020, we have not recognized any credit losses with respect to these investments in debt securities. As of December 31, 2019, there were no gross unrecognized holding gains or losses, and there were no other than temporary impairments recognized in accumulated other comprehensive loss. As of March 31, 2020, our retained certificates are scheduled to mature over the next two months to seven years.

Investment in Unconsolidated Joint Venture

We own a 10% interest in a joint venture with FNMA to operate, lease, and manage a portfolio of properties primarily located in Arizona, California, and Nevada. A wholly owned subsidiary of INVH LP is the managing member of the joint venture and is responsible for the operation and management of the properties, subject to FNMA’s approval of major decisions. As of March 31, 2020 and December 31, 2019, the joint venture owned 618 and 641 properties, respectively.

Right-of-Use (“ROU”) Lease Assets — Operating and Finance, net

The following table presents supplemental information related to leases into which we have entered as a lessee as of March 31, 2020:



	March 31, 2020						December 31, 2019
	Operating Leases			Finance Leases			Operating Leases			Finance Leases
Other assets	$	12,098		$	8,515		$	12,552		$	1,216
Other liabilities	13,364			8,041			13,787			1,210
Weighted average remaining lease term	3.7 years			3.8 years			3.8 years			2.0 years
Weighted average discount rate	4.0		%	4.0		%	4.0		%	4.0		%

Rent and Other Receivables

We lease our properties to residents pursuant to leases that generally have an initial contractual term of at least 12 months, provide for monthly payments, and are cancelable by the resident and us under certain conditions specified in the related lease agreements. Rental revenues and other property income are recorded net of any concessions and uncollectible amounts for all periods presented.

Variable lease payments consist of resident reimbursements for utilities, and various other fees, including late fees and lease termination fees, among others. Variable lease payments are charged based on the terms and conditions included in the resident leases. For the three months ended March 31, 2020 and 2019, rental revenues and other property income includes $25,047 and $21,330, respectively, of variable lease payments.

Future minimum rental revenues under leases existing on our single-family residential properties as of March 31, 2020 are as follows:



Year	Lease Payments to be Received
Remainder of 2020	$	877,619
2021	289,546
2022	13,304
2023	—
2024	—
Thereafter	—
Total	$	1,180,469

Investments in Equity Securities

We hold investments in equity securities without a readily determinable fair value. We have elected to measure the investments at cost, less any impairment, plus or minus changes resulting from observable price changes for identical or similar investments in the same issuers. As of March 31, 2020 and December 31, 2019, the carrying amount of our investments in equity securities was $16,734 and $16,650, respectively. During the three months ended March 31, 2020, we recorded $34 of unrealized gains on our investments in equity securities which are included in other, net in the condensed consolidated statements of operations. No unrealized gains or losses were recorded during the three months ended March 31, 2019.

Deferred Financing Costs, net

In connection with our Revolving Facility, we incurred $9,673 of financing costs during the year ended December 31, 2017, which have been deferred as other assets, net on our condensed consolidated balance sheets. These deferred financing costs are being amortized as interest expense on a straight-line basis over the term of the Revolving Facility. As of March 31, 2020 and December 31, 2019, the unamortized balances of these deferred financing costs are $2,172 and $2,765, respectively.