- 15 acquisitions completed in the quarter with estimated annual revenues of $22 million; 29 acquisitions year-to-date with $60 million annual revenues.
- Adjusted earnings per share grew over 10% to $1.03.
- Adjusted EBITDAC margin improved by 100 basis points to 36.7%.
- Brown & Brown delivered $1.3 billion in revenue for Q2, growing 9.1% total and 3.6% organically versus prior year.
- Cash flow from operations was $537 million, up $164 million over first half of 2024.
- Completed 15 acquisitions in the quarter with estimated annual revenues of $22 million; 29 acquisitions year-to-date with $60 million in annual revenues.
- Dividends paid per share increased 15.4% compared to prior year quarter.
- Generated $537 million cash flow from operations, up $164 million over first half of 2024.
- Programs segment grew 6.1% total revenues with 4.6% organic growth; EBITDAC margin expanded 320 basis points to 52.8%.
- Retail segment revenue grew 7.9% total with 3% organic growth; EBITDAC margin decreased 50 basis points to 27.5% due to seasonality.
- Weighted average shares increased by approximately 10 million due to equity issuance.
- Wholesale Brokerage segment revenues increased 14.5% total and 3.9% organically; EBITDAC margin increased 80 basis points to 34.1%.
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- Asset quality improved with a 7% reduction in commercial criticized balances and a 4% reduction in non-accrual loans.
- Average loans grew by $1.1 billion to $136.5 billion, driven by commercial, residential mortgage, and consumer loans.
- Diluted GAAP EPS increased to $4.82 from $4.24 in prior quarter, net income rose to $792 million from $716 million.
- Net charge-offs increased to 42 basis points due to resolution of two large C&I credits totaling $49 million.
- Net interest income (taxable equivalent) increased 3% sequentially to $1.77 billion.
- Non-interest expenses increased slightly to $1.36 billion, with higher salaries, benefits, and professional services costs.
- Non-interest income reached $752 million, up from $683 million, with strength across mortgage banking, trust income, and trading.
- Operating ROTA and ROTCE were strong at 1.56% and 17.13%, respectively, with net interest margin expanding to 3.68%.
- AFFO per share was $1.28 for the second quarter, representing a 9.4% increase year-over-year driven by accretive investment activity and sector-leading rent growth.
- Comprehensive same-store rent growth was 4% year-over-year, reflecting rent collections, recovery of past due rent, leasing activity, and vacancies.
- Contractual same-store rent growth for Q2 was 2.3% year-over-year, with CPI-linked escalations averaging 2.6% and fixed rent increases averaging 2.1%.
- Dividend declared at $0.90 per share for Q2, a 3.4% increase over prior year, with a payout ratio of approximately 73% of AFFO per share.
- G&A expenses are expected between $99 million and $102 million for the full year, with non-reimbursed property expenses between $50 million and $54 million.
- Key leverage metrics remain within target ranges: debt to gross assets at 43.2% and net debt to adjusted EBITDA at 5.8x.
- Liquidity at quarter end was about $1.7 billion, with $660 million drawn on the revolver, partially paid down after a $400 million bond issuance.
- Nonoperating income is expected around $20 million for the full year, mainly from dividends on equity stakes.
- Operating property NOI for 2025 is estimated between $55 million and $60 million, including hotel and student housing properties.
- Tax expense on an AFFO basis is expected between $42 million and $46 million, primarily foreign taxes on European assets.
- Efficiency ratio improved to 57.2%, reflecting disciplined expense management.
- Generated 530 basis points of positive operating leverage this quarter.
- Net revenue reached a quarterly record of $7.3 billion, driven by strong fee businesses and improved spread income.
- Non-performing assets ratio improved to 0.43%, and net charge-off ratio improved to 0.56%.
- Reported earnings per share of $1.22, an 18.4% increase year over year.
- Return on average assets was 1.17%, and net interest margin expanded to 2.75%.
- Tangible book value per share increased 12.7% year over year.
- Total average deposits increased 1.8% linked quarter to $512 billion; average loans grew 0.2% linked quarter.
- FAD was $0.33 per share, a $0.04 sequential increase, representing a 96% payout ratio, a significant improvement from the first quarter.
- Net debt to adjusted EBITDA sits at 6x, with expectations to decrease into the mid-5x area by year-end.
- Normalized FFO was $0.41 per share, a $0.02 sequential increase, and up nearly 7% year-over-year, driven by strong occupancy gains, disciplined cost management, and a decrease in share count.
- Same-store occupancy was 90%, a 40 basis point sequential increase, with same-store NOI growth of 5.1%, a 280 basis point sequential increase, the highest in 9 years.
- The company completed a successful renewal of its revolver, extended the tenor of term loans, and raised 2025 normalized FFO per share guidance to $1.57 to $1.61.
- Year-to-date asset sales increased to $211 million at a blended 6.2% cap rate, with over $700 million of additional assets under contract or LOI.
Dafinchi