- Blended rate growth was 3%, driven by a 5.2% renewal rate with 60% of residents renewing in the quarter.
- Equity Residential's second quarter 2025 results exceeded expectations with strong resident retention and sustained demand across markets.
- Expansion markets such as Atlanta and Dallas performed in line with expectations, with suburban acquisitions outperforming urban submarkets facing supply pressure.
- Markets like Los Angeles and Denver faced challenges from weak job growth, quality of life issues, and heavy concession use.
- Other strong markets included New York City with the highest occupancy and strong blended rate growth, and Washington, D.C. with high occupancy and rent growth despite recent softening.
- Physical occupancy was high at 96.6%, with new lease rates slightly negative due to price sensitivity and concession use in supply-heavy markets.
- San Francisco led the portfolio with 5.8% blended rate growth, driven by strong new lease and renewal increases and favorable migration patterns.
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- Ares reported strong second quarter results with significant growth in AUM and fee-paying AUM driven by fundraising, investing efforts, and market appreciation.
- Corporate private equity composite rose 3.3% gross, private equity secondaries generated 3.1% net and gross returns.
- Credit strategies delivered strong quarterly gross returns ranging from 2.2% to 5.5%, with double-digit returns over the last 12 months.
- Fee-paying AUM (FPAUM) increased to $350 billion, a 17% quarter-over-quarter organic growth on an annualized basis.
- GCP acquisition contributed $103 million in revenues and $34 million in FRE with a 33% FRE margin, temporarily compressing overall FRE margin by 90 basis points.
- Management fees grew 24% year-over-year, total fee-related revenue grew 29%, and fee-related earnings (FRE) grew 26%.
- Management fees reached a record $900 million in the quarter.
- Net accrued performance income increased 8.5% to $1.1 billion, with strong investment results across the business.
- Other fees more than tripled year-over-year due to GCP's vertically integrated real estate capabilities.
- Quarterly AUM increased to $572 billion, representing quarter-over-quarter organic growth of 19% on an annualized basis.
- Real estate equity composite increased 3.4% gross, diversified nontraded REIT generated 4.5% net return for first half of the year.
- Realized income totaled $398 million, a 10% year-over-year increase, with an effective tax rate of 9.5%.
- Second quarter fee-related performance revenues totaled $17 million, mostly from APMF, with expected seasonality in future quarters.
- 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%.
- Core FAD increased by $0.05 to $0.71, reflecting rent escalations and turnaround impact of deferred rent from the prior year.
- Core FFO improved to $0.68 from $0.67 year-over-year, driven by decreased interest expense, increased fair market rent resets, and higher SHOP NOI.
- Debt to annualized adjusted EBITDA for real estate was 4.2x, with an annualized adjusted fixed charge coverage ratio of 5.1x as of June 30.
- SHOP portfolio NOI totaled $2.5 million in Q2 with average occupancy at 81%, generating approximately $780,000 more income than under prior triple net leases for the same period last year.
- Total liquidity stood at $674 million, supported by a new 4-year unsecured credit agreement increasing revolver commitments from $425 million to $600 million, with potential to increase to $1.2 billion.
- Cash and cash equivalents stood at approximately $98.6 million.
- Cash and cash equivalents were approximately $98.6 million.
- Earnings Available to Common (EAD) was about $100,000 or effectively zero.
- Second quarter GAAP income was $1.4 million or $0.03 per diluted share, similar to last quarter.
- Second quarter GAAP income was $1.4 million or $0.03 per diluted share, similar to the previous quarter.
- The company declared a second quarter common stock dividend of $0.06 per share, with no plans to reduce it soon.
- The company reported a common stock dividend of $0.06 per share and does not intend to reduce it soon.
- The stock traded at about $2.70, representing roughly a 50% discount to book value.
- The stock was trading at about $2.70, representing roughly a 50% discount to book value.
- Total equity was $2.95 million with a GAAP book value of $5.37 per share.
- Total equity was $2.95 million with GAAP book value at $5.37 per share.
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