- Net charge-offs were exemplary at 0.01%, despite some negative asset quality migration.
- Non-GAAP core net income was $19.5 million and EPS was $0.66 after excluding acquisition and core conversion expenses.
- Noninterest-bearing deposits increased 7.8% linked quarter, driven by short-term inflows.
- Noninterest expense was $51.2 million GAAP, $49.6 million core, relatively flat quarter-over-quarter.
- Q2 GAAP net income was $20.8 million with EPS of $0.70, including a $3.36 million gain on branch sale.
- ROAA was 1%, net interest margin remained stable at 3.68% GAAP and 3.64% core.
- Total deposits decreased $38.5 million, mainly due to interest-bearing deposit withdrawals and branch sale.
- Total loans held for investment increased 4.5% annualized, driven by C&I and CRE growth.
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- Commercial revenue increased by 33%, driven by broad-based strength across asset classes, notably industrial and multifamily.
- All-time record in National Commercial Services division for fee per file, with a 30% increase in fee per file.
- Strong pipeline with high-quality, large deals, including 11 transactions over $1 million.
- Anticipation of deal acceleration in Q4 due to upcoming renewable energy tax incentives, with a positive outlook for the second half of the year.
- Assets under custody and administration grew 5% year over year to $17 trillion, while assets under management increased 9% year over year.
- Expenses increased 4.7% year over year, with positive operating leverage of 110 basis points and expense to trust fee ratio improving by 120 basis points to 112%.
- Net interest income on an FTE basis was $596 million, down 3% sequentially but up 5% year over year, with net interest margin increasing to 1.7%.
- Return on average common equity reached 14.8%, with a pretax margin expansion of nearly 200 basis points compared to the prior year.
- Revenue increased 6% year over year, driven by favorable equity markets and well-managed expense growth.
- Third quarter net income was $458 million with earnings per share of $2.29, reflecting a 14% increase year over year excluding notable items.
- Trust and investment servicing fees totaled $1.3 billion, up 6% year over year, with wealth management fees up 5% and asset servicing fees up 6%.
- Year to date, Northern Trust returned 110% of earnings to shareholders, including $431 million in the quarter through dividends and stock repurchases.
- AvalonBay Communities reported second quarter and first half 2025 results exceeding initial guidance, driven by higher occupancy and rental revenue growth.
- Core FFO growth was 3.3% year-to-date, positioning the company towards the top of the sector.
- Development NOI for the year is expected to be modestly lower than budget due to timing delays in deliveries and slower leasing velocity at some communities.
- Development underway is $2.9 billion, match-funded, with yields on cost of 6.2% and currently running 30 basis points ahead of pro forma on communities in lease-up.
- Market occupancy was healthy in established regions at 94.8%, while Sunbelt region occupancy was lower at 89.5% due to elevated standing inventory.
- Operating expenses were tightly managed, contributing to same-store NOI outperformance with OpEx growth forecasted at 3.1%, 100 basis points better than original guidance.
- Q2 core FFO per share was $2.82 versus guidance of $2.77, with revenue exceeding by $0.02 and operating expenses better by $0.05, partially offset by lease-up NOI and overhead.
- Same-store NOI growth is now projected at 2.7%, 30 basis points above initial outlook.
- Bad debt remains below 2%, indicating a healthy customer base.
- Flat same-store revenue growth in Q2 due to gradual rate growth progress.
- Interest income and expense were higher due to a higher-than-forecasted SOFR curve.
- Net rental income was positive 20 basis points in the quarter, partially offset by lower administrative fees and late fees.
- Positive year-over-year rate growth to new customers achieved for the first time since March 2022.
- Same-store expenses increased by 8.6%, driven by higher property taxes in legacy Life Storage properties.
- Same-store occupancy reached 94.6%, up 60 basis points year-over-year and 120 basis points sequentially from Q1.
- Tenant insurance income and management fee income were stronger than expected, augmenting flat same-store revenue.
- Adjusted EBITDA grew 13% year-over-year, reflecting revenue growth and higher fee income.
- Core FFO per share reached a record $1.87, up 13% year-over-year and 6% higher than last quarter, reflecting strong upside from hyperscale commencements and better-than-expected 0-1 megawatt plus interconnection bookings.
- Data center revenue increased 11% year-over-year, supported by strong renewal spreads, rent escalators and new lease commencements, offsetting disposition impacts.
- Development CapEx was over $900 million gross, $700 million net to Digital Realty, with 96 megawatts of new capacity delivered (98% pre-leased) and 16 megawatts of new projects started construction.
- Digital Realty posted double-digit growth in revenue, adjusted EBITDA and core FFO this quarter, driven by record lease commencements, low churn and higher fee income.
- Gross data center development pipeline stands at $9 billion with a 12.2% expected stabilized yield; land bank grew to 3.7 gigawatts, extending runway to 5 gigawatts.
- Leasing in the quarter totaled $177 million at 100% share, including $135 million at Digital Realty's share, with $90 million in the 0-1 megawatt plus interconnection category, an 18% increase over the prior record.
- Renewal leases signed in the quarter totaled $177 million with a blended 7.3% cash basis increase, exceeding prior guidance.
- Same-capital cash NOI grew 4.4% year-over-year, driven by 5.9% growth in data center revenue; on a constant currency basis, same-capital cash NOI rose 1.8%.
- Total churn declined to 1%, with negligible churn in the greater than a megawatt category.
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