Broadstone Net Lease reported adjusted funds from operations (AFFO) of $74.3 million or $0.38 per share for Q2 2025, representing 5.6% growth compared to Q2 2024.
Core general and administrative expenses totaled $6.9 million for the quarter and $14.3 million year-to-date, tracking in line with full year expectations of $30 million to $31 million.
Dividend declared at $0.29 per share payable on or before October 15, 2025.
Investment activity through Q2 2025 totaled approximately $229 million, with nearly 60% allocated to stabilized properties, funded by retained cash flow, disposition proceeds, and revolver.
Pro forma leverage ended the quarter at 5.2x net debt with over $800 million available on the revolving credit facility.
Weighted average initial cash cap rate on acquisitions was 7.2%, with lease terms averaging 12.4 years and annual rent increases of 2.8%.
Year-to-date bad debt totaled 45 basis points, reflecting rental recoveries and limited bad debt incurrence during the quarter.
Allowance for credit losses totaled $142.2 million or 1.34% of total loans, with total loss absorption capacity of $250.6 million or 2.36% of loans.
Asset quality remained sound with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million (9 basis points annualized).
Asset quality remained strong with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million or 9 basis points annualized.
Capital ratios remain strong with Tier 1 capital at 14.6% and tangible common equity to tangible assets at 9.75%.
Capital ratios remain strong with Tier 1 capital ratio at 14.6% and tangible common equity to tangible assets at 9.75%, and tangible book value per share increased 12% year-over-year to $17.19.
Loan growth was strong at an annualized 6.4%, with production of $854 million and a robust pipeline of $921 million.
Net income increased 36% sequentially to $42.7 million or $0.50 per share, with adjusted net income up 39% to $44.5 million or $0.52 per share.
Net interest income grew 7% to $126.9 million, driven by loan growth and lower deposit costs.
Net interest income rose 7% to $126.9 million, driven by loan growth and lower deposit costs, with net interest margin expanding 10 basis points to 3.58%.
Net interest margin expanded 10 basis points to 3.58%, or 5 basis points excluding accretion on acquired loans.
Noninterest expense was $91.7 million, including $2.4 million in merger-related expenses, with an adjusted efficiency ratio improving to 55.4%.
Noninterest expense was $91.7 million, including $2.4 million merger-related expenses, with adjusted efficiency ratio improving from 59.5% to 55.4%.
Noninterest income increased 10% year-over-year to $24.5 million excluding securities activity, supported by treasury management, wealth, and insurance businesses.
Noninterest income increased 10% year-over-year to $24.5 million, supported by treasury management, wealth, and insurance businesses.
Return on assets improved to 1.08%, and return on tangible common equity rose to 12.8%.
Return on assets improved to 1.08%, return on tangible common equity to 12.8%, and the adjusted efficiency ratio improved to 55%.
Alternative private markets assets increased by $1.3 billion or 7%, mainly due to FX impact and net sales of $231 million.
Equity assets increased by $8.1 billion or 10% from the prior quarter, with second quarter equity net sales of $1.8 billion representing an organic growth rate just under 9%.
Federated Hermes ended Q2 2025 with record assets under management of $846 billion, driven by gains in equity strategies.
Fixed income assets decreased by about $800 million or 1% due mainly to net redemptions of $2.4 billion, partially offset by market valuations and FX gains of $1.6 billion.
MDT equity strategies had net sales of $3.8 billion in Q2, up from $3.3 billion in Q1, with strong performance rankings in Morningstar categories.
Money market fund assets reached a record high of $468 billion at the end of Q2, increasing by $3.1 billion despite seasonal factors.
Operating expenses increased mainly due to a VAT refund in Q1 not recurring, and compensation expenses rose due to higher incentive compensation and merit increases.
Q2 effective tax rate was 26.1%, expected to be in the 25% to 28% range for 2025.
The company repurchased approximately 1.5 million shares for about $64.5 million and approved a new share repurchase program for 5 million shares.
Total revenue for Q2 increased slightly from the prior quarter due to more days in the quarter and revenue from the Rivington acquisition, partially offset by lower performance fees and carried interest.
Fee income was $95 million for the quarter, fully recovering from losses last quarter, with management fees of $57 million and performance fees of $39 million.
Gross premiums written were $3.4 billion, flat year-over-year, with net premiums written at $2.7 billion, also flat, but with shifts at the class of business level.
Operating expense ratio was 5.2%, up about 1 point from last year, reflecting continued investment in the business.
RenaissanceRe delivered a 24% operating return on equity this quarter and grew tangible book value per share by 10% year-to-date and over 20% over the past 12 months despite significant catastrophe losses and share repurchases.
Retained net investment income was $286 million, slightly up from the first quarter, driven by growth in invested assets and a cautious but accretive investment approach.
Share repurchases totaled $808 million year-to-date, with 3.3 million shares repurchased, demonstrating strong capital management and conviction in stock value.
The new 15% Bermuda corporate income tax impacted results with a tax expense of $177 million and an effective tax rate on GAAP net income of 13%.
Underwriting income was $602 million, up 26% from last year, with an adjusted combined ratio of 73%, reflecting low catastrophe losses and favorable development.
Dafinchi