- Completed sale of 5 hotels for $83 million at an approximate 6% cap rate on 2024 NOI levels.
- GOP margin for the quarter was 46.3%, up 30 basis points from Q2 2024 despite flat RevPAR environment.
- Leverage reduced to 21%, with net debt to EBITDA at 3.5x as of June 30, 2025.
- Q2 2025 hotel EBITDA was $30.9 million, adjusted EBITDA was $28.5 million, and adjusted FFO was $0.36 per share.
- Repurchased approximately 20,000 shares at a weighted average price of $7.02 under a $25 million share buyback plan.
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- Book value per common share declined by about $0.25 to $7.99, partially offset by accretive share buybacks estimated to add $0.15 per share.
- CECL reserve declined by $25 million to $155 million, driven by $36 million of write-offs partially offset by an $11 million provision increase.
- Distributable loss for the quarter was $45.3 million or negative $0.94 per basic common share, including $36.1 million of write-offs related to nonaccrual loan resolutions.
- Provision for credit losses was $11 million or negative $0.23 per basic common share due to a less favorable macroeconomic forecast in the CECL model.
- Reported a GAAP net loss attributable to common stockholders of $17 million or negative $0.35 per basic common share in Q2 2025.
- Total leverage decreased slightly to 2.1x, with unrestricted cash of about $85 million at quarter end.
- Compensation, general, administrative, and servicing expenses were marginally lower, with transaction expenses down by $5 million.
- Earnings available for distribution were $32.1 million or $0.39 per share, and economic net interest income was $69 million.
- Economic return on GAAP book value was 0.5% for the quarter and 9.8% year-to-date; economic net interest income return on average equity was 10.5%.
- GAAP net income for Q2 2025 was $14 million or $0.17 per share, with GAAP book value at $20.91 per share.
- Total leverage was 4.5:1, with recourse leverage at 1.8:1, increased due to higher investments in agency securities.
- Yield on average interest-earning assets was 6%, average cost of funds was 4.5%, resulting in a net interest spread of 1.5%.
- Blended cash leasing spreads in Q2 were 17%, the highest in 5 years, with non-option renewal spreads near 20% for the quarter and 16% over 12 months.
- Blended cash leasing spreads reached 17%, the highest in 5 years, with non-option renewals at nearly 20% for the quarter and 16% over the last 12 months.
- Kite Realty Group delivered strong Q2 2025 results with NAREIT FFO per share of $0.51 and core FFO per share of $0.50.
- Net debt-to-EBITDA stands at 5.1x, among the lowest in the peer set, after significant transactional activity and opportunistic bond issuance.
- Net debt-to-EBITDA stands at 5.1x, among the lowest in the peer set, following asset sales, joint ventures, and opportunistic bond issuance.
- New leasing volume more than doubled sequentially, driven by 11 new anchor leases including grocery tenants Whole Foods and Trader Joe's.
- Same-property NOI grew 3.3%, driven by higher minimum rents (+250 bps), improved net recoveries (+50 bps), and overage rent (+30 bps).
- Small shop lease rates increased 30 basis points sequentially and 80 basis points year-over-year, with embedded escalators at 3.4% for H1 2025.
- Small shop lease rates increased 30 basis points sequentially and 80 basis points year-over-year, with embedded escalators of 3.4% for the first half of 2025.
- The company sold 3 noncore assets and completed 2 joint ventures involving 4 assets totaling over $1 billion in gross transactional activity.
- All rent payments are current from tenants despite the increased provision for credit losses.
- Operating expenses increased by $65.6 million primarily due to a noncash provision for credit losses based on a more pessimistic economic forecast.
- Record year-over-year revenue, AFFO, and adjusted EBITDA were achieved in the quarter.
- Rent coverage ratios ranged from 1.69 to 2.72x on master leases as of the prior quarter end.
- Total income from real estate for Q2 2025 exceeded Q2 2024 by over $14 million, driven by cash rent increases of over $22 million from acquisitions and escalations.
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