- Cash same-store net operating income (NOI) rose 6.4% for the quarter despite lower occupancy.
- Debt to total market capitalization was 14.2%, unadjusted debt-to-EBITDA ratio was 3.0x, and interest and fixed charge coverage increased to 16x.
- FFO per share for Q2 met the high end of guidance range and increased from $2.05 in the prior year quarter.
- Funds from operations (FFO) were $2.21 per share in Q2 2025, up 7.8% year-over-year excluding involuntary conversions.
- Quarter-end leasing was 97.1% with occupancy at 96%, and average quarterly occupancy was 95.9%, down 110 basis points from Q2 2024.
- Quarterly re-leasing spreads were 44% GAAP and 30% cash; year-to-date spreads were similar at 46% GAAP and 31% cash.
- Tenant collections remain healthy with uncollectible rents estimated at 35 to 45 basis points of revenues, slightly better than historic run rate.
- Top 10 tenants accounted for 6.9% of rents, down 90 basis points from last year, reflecting increased tenant and geographic diversification.
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- Adjusted EBITDA grew 5%, exceeding the top end of the outlook, with margins improving 200 basis points sequentially.
- Adjusted EPS was $1.36, meeting expectations despite higher depreciation and amortization expenses.
- Banking EBITDA margin contracted 70 basis points due to an $8 million bad debt charge; Capital Markets margin contracted 50 basis points due to acquisition-related dilution.
- Banking revenue grew 6%, above the high end of guidance, driven by commercial excellence and strong client retention.
- Capital Markets revenue grew 5%, slightly below expectations due to temporary slowdown in loan syndication activity.
- FIS delivered 5% revenue growth in Q2 2025, accelerating from 4% in Q1, driven primarily by momentum in the Banking segment.
- Free cash flow was $292 million with a cash conversion rate of 52% in Q2, and 61% year-to-date, improving from 53% prior year.
- Leverage increased modestly to 3x, or 2.9x excluding currency impacts, with a long-term target of 2.8x.
- Recurring revenue represented 81% of total revenue, growing 6% overall with 7% growth in Banking recurring revenue.
- Core earnings per share (EPS) of $0.91 in Q3, contributing to $2.66 YTD core EPS, reflecting 3% growth year-over-year.
- Deposits increased $149 million or 1.9% to $7.6 billion, excluding temporary pension funding deposits.
- Net charge-offs were elevated at 0.81% of total loans, driven by resolution of problem credits but showing improvement in consumer solar and business banking portfolios.
- Net income was $26.8 million or $0.88 per diluted share; core net income was $27.6 million or $0.91 per diluted share.
- Net interest income grew 4.9% to $76.4 million, exceeding the high end of guidance.
- Net interest margin increased 5 basis points to 3.6%, partially offset by a 5 basis point rise in cost of funds.
- Nonperforming assets decreased 34.6% to $23 million, or 0.26% of total assets, indicating improved credit quality.
- Tangible book value per share increased 4% to $25.31, growing over 46% since September 2021, reflecting strong capital management.
- Adjusted EPS excluding goodwill impairment was $2.24 with adjusted ROTCE of 9.7%.
- Cost of credit was $2.5 billion, primarily from U.S. Card net credit losses and firm-wide ACL build.
- Expenses up 9% to $14.3 billion, but adjusted expenses up only 3%, driven by compensation and severance.
- Net interest income excluding markets rose 6%, driven by USPB, services, wealth, and banking.
- Non-interest revenues excluding markets increased 12%, led by banking and wealth.
- Positive operating leverage generated for the firm and each of the five businesses.
- Reported net income of $3.8 billion and EPS of $1.86 with ROTCE of 8%.
- Revenues increased 9% year-over-year, with every business achieving record third-quarter revenue.
Dafinchi