- Exited a $51 million office life sciences loan in Q2, incurring a $33 million realized loss, which was above the prior quarter's CECL reserve.
- The exit was driven by declining tenant demand due to reduced federal funding for life sciences, creating a supply-demand imbalance.
- Removal of this loan reduced future funding commitments by 50%, from $73 million to $36.5 million, enhancing portfolio stability.
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- RMR has focused on deleveraging through asset sales and refinancings.
- Share prices of DHC and ILPT increased substantially year-to-date.
- Share price improvements led to potential incentive fees exceeding $17 million for RMR.
- Active asset management and sector fundamentals contributed to strong performance.
- Redwood accelerated its shift towards a more scalable and simplified operating model, first announced at 2024 Investor Day.
- The company is reducing exposure to legacy assets, including multifamily bridge loans and third-party securities, due to their full valuation or underperformance amid rising interest rates.
- Approximately $0.79 per share of fair value and repositioning charges were recognized in Q2 from legacy portfolio wind-downs.
- Target to generate $200-$250 million from legacy asset sales by year-end 2025, with a long-term goal to reduce legacy investments to 0-5% by 2026.
- The move aims to redeploy capital into core platforms for higher quality, predictable earnings, and to support share repurchases.
- GNL completed a $1.8 billion sale of its multi-tenant retail portfolio to RCG Ventures, streamlining into a pure-play single-tenant net lease company.
- The sale is expected to reduce G&A by approximately $6.5 million annually and generate $30 million in capital expenditure savings.
- The disposition improved occupancy to 98%, expanded NOI margin by 800 basis points, and increased liquidity to $1 billion from $492 million.
- Proceeds from asset sales were used to reduce leverage, including a $1.1 billion paydown on the revolving credit facility and $466 million in mortgage debt assumed by RCG Ventures.
- Total asset sales since the disposition initiative began in 2024 exceed $3 billion, with a pipeline of about $200 million as of August 2025.
- Agency originations were $857 million in Q2 with strong margins of 1.69%, and loan sales totaled $807 million; mortgage servicing rights income was $10.9 million.
- Balance sheet lending portfolio grew to $11.6 billion with an all-in yield of 7.86%, while total debt on core assets was $9.6 billion with an all-in cost of 6.88%.
- In Q2 2025, Arbor Realty Trust produced distributable earnings of $62.5 million or $0.30 per share excluding $10.5 million of onetime realized losses from REO asset sales, translating into a 10% ROE.
- Leverage was reduced by 25% to a ratio of 3:1 from a peak of 4:1 nearly three years ago, aided by new unsecured rated debt issuance.
- Loan loss reserves increased by $16 million in Q2, including $6.5 million specific reserves and $9.5 million general CECL reserves due to changes in real estate value outlooks.
- Net interest income dropped from $75 million in Q1 to $69 million in Q2 due to increased delinquencies, less back interest collected, and reversals related to foreclosures.
- Net interest spreads declined to 1.08% from 1.26% last quarter, impacted by back interest collection variability and new nonperforming loans.
- Total delinquencies decreased to $529 million at June 30 from $654 million at March 31, with 60+ day delinquencies at $472 million and less than 60 days at $57 million.
- Balance sheet ended Q2 with net debt to adjusted EBITDA of 5.2x and nearly $2.3 billion of liquidity.
- CCRC portfolio generated approximately $200 million of annual NOI, 50% higher than pre-pandemic 2019 levels, with current occupancy at 86%.
- Healthpeak reported FFO as adjusted of $0.46 per share and AFFO of $0.44 per share for Q2 2025.
- Lab segment reported 1.5% same-store growth, 6% positive rent mark-to-market, and 87% tenant retention, with total occupancy declining by 150 basis points due to lease expirations and tenant departures.
- Outpatient medical segment achieved 85% tenant retention, 6% positive rent mark-to-market, and 3.9% same-store cash NOI growth.
- Repayment of $450 million senior notes was completed using proceeds from commercial paper program.
- Total portfolio same-store growth was 3.5%, with CCRC segment showing 8.6% same-store growth driven by 5% rate growth and higher entrance fee sales.
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