- Ancillary revenues contributed 150 basis points to NOI growth, including a revised parking agreement at Point Orlando.
- Balance sheet strong with $1.4 billion liquidity, no debt maturities until June 2026, and debt-to-EBITDA at 5.5x.
- Base rent growth contributed 360 basis points to same-property NOI growth, outpacing the drag from short-term occupancy decline.
- NAREIT FFO was $0.56 per share in Q2, driven by same-property NOI growth of 3.8% despite a 260 basis point drag from tenant disruption.
- Net expense reimbursements detracted 110 basis points due to prior year tax assessment benefits.
- Signed new ABR reached a record $21 million in the quarter, with a 450 basis point spread between leased and build occupancy.
- Updated same-property NOI growth guidance to 3.9%-4.3% and increased FFO guidance to $2.22-$2.25 for 2025.
Explore Similar Insights
- 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.
- Average yields improved to 5.46% from 5.41% in the prior quarter, with average repo rate improving by 3 basis points to 4.5%.
- Book value per share increased 4.3% quarter-over-quarter to $19.25.
- Earnings available for distribution (EAD) per share was $0.73, exceeding the dividend of $0.70 for the quarter.
- Economic leverage ratio modestly decreased to 5.7x with $8.6 billion of repo principal added at attractive spreads.
- Efficiency ratios improved, with OpEx-to-equity ratio at 1.34%, one of the lowest in the mortgage REIT sector.
- Generated an economic return of 8.1% for Q3 2025 and 11.5% year-to-date, marking 8 consecutive quarters of positive economic returns.
- Net interest spread ex-PAA increased to 1.5%, with net interest margin ex-PAA stable at 1.7%.
- Residential Credit yields rose to 6.29% driven by record securitization and loan purchases.
- Capital ratios increased: CET1 at 10.2%, TCE at 8.06%, both up year-over-year and sequentially.
- Commercial & Industrial (C&I) loans grew over $700 million year-to-date, driving loan growth.
- Efficiency ratio improved to below 56%, the lowest since early 2023.
- Net interest income (NII) reached a record $300 million, up 17% year-over-year.
- Net interest margin (NIM) expanded to 3.04%, up 29 basis points year-over-year and 7 basis points sequentially.
- Nonaccrual loans decreased 16%, net charge-offs were 17 basis points, and provision expense was $18 million.
- Noninterest expense was $209 million, slightly down from prior quarter, driving positive operating leverage.
- Noninterest income was $67 million, up 3% year-over-year and 14% sequentially.
- Reported earnings of $0.65 per share in Q2 2025.
- Return on tangible common equity (ROATCE) improved to 12.96%, up 62 basis points from Q1.
- Total loans grew 1% quarter-over-quarter and 3% year-over-year, or nearly 6% adjusted for loan sale.
- Executed 15 leases totaling 416,000 sq ft in Q2 with 6.4% higher rental rates than prior rates.
- Renewals accounted for two-thirds of leasing activity, securing over $7 million in annualized revenue.
- 1.3 million sq ft of leases expiring through 2026, with 742,000 sq ft ($11.2 million) expected not to renew.
- Leasing pipeline of 2 million sq ft, over 60% related to renewal discussions.
- Positive net absorption likely from multi-tenant properties with existing infrastructure.
Dafinchi