Strategic Portfolio Restructuring and Asset Dispositions
GNL completed a $1.8 billion sale of its multi-tenant retail portfolio to RCG Ventures, streamlining into a pure-play single-tenant net lease company.
The sale is expected to reduce G&A by approximately $6.5 million annually and generate $30 million in capital expenditure savings.
The disposition improved occupancy to 98%, expanded NOI margin by 800 basis points, and increased liquidity to $1 billion from $492 million.
Proceeds from asset sales were used to reduce leverage, including a $1.1 billion paydown on the revolving credit facility and $466 million in mortgage debt assumed by RCG Ventures.
Total asset sales since the disposition initiative began in 2024 exceed $3 billion, with a pipeline of about $200 million as of August 2025.
Credit quality improved materially with net charge-offs less than $1 million when normalized for USPS and acquired portfolio impacts.
EBITDA margin for the payments segment improved to approximately 14%, with a long-term goal of exceeding 40%.
Factoring invoice size was influenced by customer mix and market pressures, with a diverse portfolio including both small and large carriers.
Noninterest-bearing deposit growth was strong, driven by mortgage warehouse deposits and payments float.
The Greenscreens acquisition added roughly $10 million in contracted ARR with an expected drag of about $3 million per quarter on earnings due to amortization and expenses.
The second quarter 2025 results showed positive revenue growth, particularly in the transportation businesses.
Leasing activity totaled approximately 405,000 square feet in Q2, the highest quarterly total since 2019, with a year-to-date total of about 690,000 square feet.
Mark-to-market on 205,000 square feet of second-generation space was down 5.4% on a cash basis and up 2.6% on a GAAP basis.
New York portfolio leased occupancy increased to 88.1%, the highest since early 2022, while San Francisco's occupancy was 75.1%, down due to the Google lease expiration.
Paramount Group delivered a strong second quarter with core FFO of $0.17 per share, exceeding consensus by $0.03.
The company ended the quarter with over $534 million in cash and restricted cash, and total debt of $3.2 billion with a weighted average interest rate of 4.3%.
Dafinchi