AFFO was $13.6 million or $0.50 per diluted share, also reduced by $0.06 of one-time items.
FFO on a diluted share basis was $0.23, reduced by $0.28 of one-time items related to the geriatric tenant and severance charges.
General and administrative expenses were $10.6 million, but excluding $5.9 million in severance and transition-related charges, G&A was $4.7 million, a $400,000 reduction quarter-over-quarter.
Interest expense increased by $240,000 to $6.6 million due to increased borrowings and an extra day of interest.
Property operating expenses decreased by approximately $500,000 quarter-over-quarter to $5.6 million, primarily due to lower seasonal expenses such as snow removal and utilities.
The geriatric behavioral hospital tenant remains unable to pay full rent and interest; notes and interest related to this tenant are fully reserved, and rent is recognized on a cash basis.
Total revenue for Q2 2025 was $29.1 million, but excluding a $1.7 million reversal of interest receivable from the geriatric behavioral hospital tenant, core revenue was approximately $30.7 million, representing 2.2% growth quarter-over-quarter compared to Q1 2025.
Agency RMBS repo markets remained stable with repurchase spreads around SOFR plus 20 basis points.
Comprehensive loss for the quarter was $221.8 million or $2.13 per share including the accrual, and $21.9 million or $0.21 per share excluding it.
For the first half of 2025, total economic return on book value was negative 10.3% including the accrual and positive 2.9% excluding it.
Including the accrual, book value decreased to $12.14 per share.
Mark-to-market gains and losses were lower by $93.4 million due to unfavorable market movements on MSR, swaps, TBAs, and futures, partially offset by positive movements on Agency RMBS.
MSR financing included $1.8 billion outstanding borrowings across 5 lenders with $837 million unused capacity.
Net interest and servicing income increased by $3.1 million driven by Agency RMBS portfolio growth and higher float income on MSR, partially offset by lower servicing fee income and higher financing costs.
The company issued $115 million of 9.38% senior notes due 2030 to refinance 6.25% senior notes due 2026.
The company took a loss contingency accrual of $199.9 million or $1.92 per share related to ongoing litigation from the termination of its management agreement with PRCM Advisers.
Two reported a total economic return of negative 14.5% for Q2 2025 including a loss contingency accrual of $1.92 per share, and negative 1.4% excluding the accrual.
Agency business revenue was $717 million, up 16%, reflecting first quarter economic activity due to reporting lag.
Closed orders increased 2%, with average revenue per order up 30% due to broad-based strength across asset classes and transaction sizes.
Commercial revenue increased 33%, setting an all-time record in the National Commercial Services division for fee per file in a quarter.
Debt-to-capital ratio was 32.1%, or 23.1% excluding secured financings payable.
Effective tax rate was 24.6%, slightly above the normalized rate of 24%.
First American reported second quarter adjusted earnings per share of $1.53, including $0.12 per share related to executive separation costs.
GAAP earnings were $1.41 per diluted share; adjusted earnings excluded net investment losses and purchase-related intangible amortization.
Home Warranty pretax income rose 35%, driven by a lower loss rate and revenue growth through the direct-to-consumer channel.
Home Warranty revenue was $110 million, up 3%, with a loss ratio improvement from 46% to 41%.
Information and other revenues rose 10%, primarily from Canadian operations with higher refinance activity.
Investment income grew 17%, driven by escrow deposits and higher interest income from the investment portfolio.
Pretax margin in the title segment was 12.6% (13.2% adjusted); Home Warranty pretax margin was 20.2% (20.7% adjusted).
Provision for policy losses was $39 million or 3.0% of title premiums and escrow fees, unchanged from prior year.
Residential purchase revenue declined 3% due to lower demand for new homes, while refinance revenue increased 54% but remains only 5% of direct revenue.
Share repurchases totaled 1 million shares for $61 million in Q2, with an additional 577,000 shares repurchased in July.
Title segment revenue was $1.7 billion, up 13%, with commercial revenue at $234 million, a 33% increase.
Arch Capital reported after-tax operating income of $979 million for Q2 2025, with operating earnings per share of $2.58 and an annualized operating return on average common equity of 18.2%.
Book value per share grew by 7.3% in the quarter and 11.4% year-to-date, reflecting strong execution and long-term value creation.
Mortgage segment delivered $238 million of underwriting income despite low mortgage originations, supported by a strong global in-force portfolio and high persistency.
Net investment income rose 7% from the first quarter to $405 million, with overall yields remaining elevated.
Net premium written surpassed $2 billion in the Property and Casualty Insurance group, up 30.7% year-over-year, driven largely by the acquisition of U.S. middle market and entertainment businesses.
Reinsurance segment generated $451 million in underwriting income with over $2 billion in net premium written, showing 8.7% growth in gross written premium year-over-year.
The combined ex-cat accident year combined ratio was 80.9%, down 10 basis points from last quarter, including $139 million of favorable prior year development.
Ares reported strong second quarter results with significant growth in AUM and fee-paying AUM driven by fundraising, investing efforts, and market appreciation.
Corporate private equity composite rose 3.3% gross, private equity secondaries generated 3.1% net and gross returns.
Credit strategies delivered strong quarterly gross returns ranging from 2.2% to 5.5%, with double-digit returns over the last 12 months.
Fee-paying AUM (FPAUM) increased to $350 billion, a 17% quarter-over-quarter organic growth on an annualized basis.
GCP acquisition contributed $103 million in revenues and $34 million in FRE with a 33% FRE margin, temporarily compressing overall FRE margin by 90 basis points.
Management fees grew 24% year-over-year, total fee-related revenue grew 29%, and fee-related earnings (FRE) grew 26%.
Management fees reached a record $900 million in the quarter.
Net accrued performance income increased 8.5% to $1.1 billion, with strong investment results across the business.
Other fees more than tripled year-over-year due to GCP's vertically integrated real estate capabilities.
Quarterly AUM increased to $572 billion, representing quarter-over-quarter organic growth of 19% on an annualized basis.
Real estate equity composite increased 3.4% gross, diversified nontraded REIT generated 4.5% net return for first half of the year.
Realized income totaled $398 million, a 10% year-over-year increase, with an effective tax rate of 9.5%.
Second quarter fee-related performance revenues totaled $17 million, mostly from APMF, with expected seasonality in future quarters.
Dafinchi