- FFO decreased to $0.37 per share and AFFO decreased to $54.5 million.
- G&A expenses remain low at approximately 4.9% of revenue.
- Revenue increased by 2.7% compared to Q2 2024.
- Same-property cash NOI declined by 1.1%, impacted by a large property tax refund in the prior year; excluding refunds, NOI was slightly positive.
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- Annualized cash based on leases in place at quarter end is $249.8 million.
- Cash G&A expense, excluding stock-based compensation, was $4.4 million or 6.9% of cash rental income, improved from 7.4% last year.
- Cash rental income was $64.5 million, representing growth of over 11% compared to last year.
- No material changes to collectibility or credit reserves, nor any balance sheet impairments.
- Portfolio occupancy remains strong at 99.4%, with 99.8% of base rent collected for Q2.
- Reported AFFO per share of $0.44, up 2.8% from Q2 last year.
- Weighted average 5-year annual cash rent escalator remains 1.4%.
- Adjusted return on assets was 1.31% and pre-provision ROAA was 1.72%.
- Deposits grew by $73 million net of broker deposits, with core deposits up nearly $800 million year-over-year.
- Loan growth was 4% annualized or $110 million, with contributions from nearly all business areas and geographic markets.
- Net interest income increased by $5.2 million quarter-over-quarter, with net interest margin expanding 6 basis points to 4.21%.
- Noninterest expense increased by $5.9 million due to merit increases, deposit costs, acquisition costs, and loan workout expenses.
- Noninterest income increased by $2.1 million from the prior quarter, driven by bank-owned life insurance and community development income.
- Nonperforming assets decreased slightly; net charge-offs were negligible aided by a $3 million recovery on a previously charged-off loan.
- Tangible book value per common share increased to $40.02, an annualized quarterly increase of 15%.
- Tangible common equity to tangible assets ratio was 9.42%, with a return on tangible common equity of 13.96%.
- The company earned $1.36 per diluted share in Q2 2025, up from $1.31 in the prior quarter and $1.19 year-over-year.
- 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.
- Adjusted EBITDA for the quarter was $220 million, a 1% increase year-over-year, including $5 million in net performance fee earnings.
- Alternative assets under management increased by 20% in the first half of 2025, with $55 billion added, reaching $331 billion in total alternative AUM.
- Fee-related earnings grew 4% year-over-year, driven by higher average AUM and organic growth in alternative strategies, partially offset by outflows in fundamental equity strategies.
- In Q2 2025, AMG reported a 15% year-over-year growth in economic earnings per share, reaching $5.39.
- Net client cash flows exceeded $8 billion in Q2, with record inflows into alternative strategies.
- Share repurchases totaled approximately $100 million in Q2 and $273 million year-to-date, contributing to earnings per share growth.
- Average MBS increased to $6.9 billion from just under $6 billion in Q1.
- Book value decreased from $7.94 per share at 3/31 to $7.21 at 6/30.
- Dividends of $0.36 were paid in both quarters.
- Excluding realized and unrealized losses, net income was $0.16 per share, same as Q1.
- Leverage ratio decreased to 7.3 from 7.8 at 3/31.
- Liquidity improved to 54% from 52%.
- Prepayment speeds increased to 10.1% from 7.8% in Q1.
- Reported a loss of $0.29 per share in Q2 compared to income of $0.18 per share in Q1.
- Total return for the quarter was negative 4.66% compared to 2.6% in Q1.
- Average physical occupancy was stable at 95.4%.
- Balance sheet strong with $1 billion in combined cash and borrowing capacity; debt-to-EBITDA at 4x with 94% fixed rate debt.
- Development pipeline active units at 2,648 with nearly $1 billion in cost; $92 million funded in Q2.
- Lease-up portfolio faced elevated supply pressure, impacting non-same-store NOI negatively.
- Net delinquency was low at 0.3% of billed rents.
- Renewal lease rates and acceptance exceeded expectations, contributing to blended lease pricing growth of 0.5%, a 100 basis point improvement from Q1.
- Same-store expenses were better than expected, primarily due to favorable real estate tax expense.
- Same-store revenue was in line with expectations, benefiting from strong collections.
- Second quarter core FFO was $2.15 per diluted share, $0.02 ahead of the midpoint of guidance.
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