- 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.
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- Earnings per share increased 8.2% versus last quarter and 17.8% versus Q2 2024 on an adjusted basis.
- Net interest income rose by $1.3 million or 2.4% from the prior quarter due to higher net interest margin and more days in Q2.
- Net interest margin improved to 3.51% from 3.44% primarily due to higher loan and investment portfolio yields.
- Noninterest expense decreased by $298,000 from prior quarter, mainly from lower benefit costs and payroll taxes.
- Provision for credit losses was $956,000, reflecting loan growth and net charge-offs.
- Regulatory capital ratios remain strong with tangible common equity ratio at 9.4%, up from 9.3%.
- Repurchased 193,700 shares at $4.5 million cost during Q2, with 797,000 shares remaining under repurchase plan.
- Total deposits decreased $60.9 million due to seasonal tax payment effects, but average total deposits increased $35.4 million from prior quarter.
- Total loan balances increased by $10 million in Q2, with loan yields at 5.50%, up 5 basis points from Q1.
- American Express reported record revenues of $17.9 billion, up 9% year over year in Q2 2025.
- Capital position remains strong with CET1 ratio at 10%, stress capital buffer at the lowest permissible 2.5%, and ROE of 36%.
- Delinquency rates remained flat and write-off rates declined, reflecting strong credit quality.
- Earnings per share were $4.08, up 17% excluding last year's gain from the sale of the certified portfolio.
- Net card fees reached record levels, up 20% FX adjusted, more than doubling since 2019.
- Net interest income grew at a double-digit pace driven by balance sheet growth and margin expansion.
- Operating expenses grew 9% excluding certified, driven by investments in risk management and technology, but operating leverage improved with expenses as a percentage of revenue down from 25% to 21%.
- Reaffirmed full-year guidance of 8% to 10% revenue growth and EPS between $15 and $15.50.
- Returned $2 billion to shareholders including $0.6 billion dividends and $1.4 billion share repurchases.
- Total card member spending increased 7%, with strong growth in goods and services and restaurant spending, offset by softer airline and lodging spend.
Dafinchi