AFFO for Q2 was $1.24 per share, up 3.3% from $1.20 in prior year.
Consolidated debt at quarter end was $2.8 billion with 86% fixed or swapped at blended coupon of ~4.3%.
FFO as adjusted for Q2 2025 was $1.26 per share, up 3.3% from $1.22 in prior year.
For the first half of 2025, FFO as adjusted was $2.45 per share, up 4.7% from $2.34 prior year; AFFO was $2.44 per share, up 4.7%.
G&A expenses increased to $13.2 million from $12 million due to higher payroll and franchise taxes.
Interest expense increased by $426,000 due to higher weighted average interest rate and additional borrowing.
Key credit ratios remain strong: fixed charge coverage at 3.3x, interest and debt service coverage at 3.9x, net debt to adjusted EBITDAre at 5.1x (5x adjusted), net debt to gross assets at 39%.
Liquidity strong with $13 million cash and $405 million drawn on $1 billion revolver.
Mortgage and other financing income increased by $1.9 million due to additional mortgage note investments.
Net proceeds from dispositions in Q2 totaled $35.6 million with a net gain of $16.8 million, excluded from FFO and AFFO.
Percentage rents increased to $4.6 million from $2 million prior year, primarily from one theater tenant.
Total revenue for Q2 was $178.1 million versus $173.1 million prior year, driven by rental revenue increase of $5.3 million and higher percentage rents.
Strategic Focus on High-Quality Assets and Long-Term Value Creation
Management emphasizes a disciplined approach to investing in high-quality assets, maintaining balance sheet strength, and creating long-term shareholder value.
The company navigates challenging environments with a focus on fundamentals, asset management, and strategic flexibility.
Significant Operating Leverage and Margin Expansion Strategy
Primis highlighted its wide operating leverage, with incremental margins in the mid-4% range, driven by the sale of the life premium portfolio and the addition of the warehouse lending team.
The company emphasized that its digital platform is scalable and targeted, contributing $36 million at a 4.06% rate, supporting low-cost deposits and high-yield lending.
Management stressed that deposit costs have decreased by 32% year-over-year to 2.89%, significantly improving margin and deposit competitiveness.
Dafinchi