- 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.
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- Big Lots bankruptcy from late 2024 caused approximately $40 million GMV headwind in Q2.
- Deliberate tightening actions in late 2024 and early 2025 impacted GMV, with effects expected to lap in Q4 2025 and Q1 2026.
- Adjusted GMV growth ex-Headwinds was around 1%, with a pro forma high single-digit to 10% growth trajectory.
- KW deployed or committed $1.7 billion in new capital in Q2, bringing total deployment to $2.6 billion for H1 2025, on track to surpass $4.3 billion in 2024.
- The company successfully executed over $600 million in noncore asset sales, generating $250 million in cash, exceeding the $200 million target.
- Proceeds from asset sales are primarily used to reduce unsecured debt, including a $350 million repayment of KWE bonds due in October, fully retiring the $650 million 2025 bonds.
- KW plans to continue recycling capital into higher-return opportunities, emphasizing a strategic focus on asset sales and debt reduction.
- Proactive sale of $60 million in nonowner-occupied CRE hospitality loans during the quarter.
- Resulted in a net $2 million gain and allowed the reversal of related reserves, leading to no provision for the quarter.
- Part of ongoing balance sheet optimization and risk reduction efforts.
- Management expressed optimism about GSE reform, noting that privatization efforts will preserve the implicit guarantee and aim to tighten MBS spreads.
- They highlighted that GSEs still need to raise capital and that the process of privatization is not imminent, but they see potential for lower supply and improved technicals in the future.
- The company is positioning to compete for non-core GSE-originated loans, which constitute roughly 20% of GSE originations, indicating strategic growth opportunities.
- Adjusted earnings per share grew 11% to $3.10 on a reported and constant currency basis.
- Adjusted free cash flow was approximately $800 million, with a conversion rate of about 110% for the quarter and roughly 95% year-to-date.
- Adjusted operating margin expanded by 130 basis points to 44.6%, or 110 basis points excluding dispositions.
- Capital expenditures were $150 million in the quarter, expected to total $750 million for 2025 (about 8% of revenue).
- Global Payments reported adjusted net revenue of $2.36 billion for Q2 2025, a 5% increase on a constant currency basis excluding dispositions.
- Issuer Solutions segment delivered $547 million in adjusted net revenue, growing about 3.5% on a constant currency basis.
- Merchant Solutions segment achieved $1.83 billion in adjusted net revenue, growing approximately 5.5% excluding dispositions.
- Net leverage was 3.15x at quarter-end with $3 billion in available liquidity and 95% of debt fixed at a 3.5% weighted average cost.
- Share repurchases totaled $230 million in Q2 and over $690 million in the first half of 2025.
Dafinchi