- Adjusted recurring net investment income increased by 25% year-over-year for the quarter and 19% year-to-date compared to 2024.
- Debt-to-equity ratio stood at 1.8x, within the target range of 1.5x to 2x, with liquidity at $1.4 billion.
- HASI reported adjusted EPS of $0.60 for Q2 2025, slightly down from the previous quarter due to timing of gain on sale revenue.
- Managed assets grew to $14.6 billion and portfolio assets to $7.2 billion, up 13% and 16% respectively from the prior year.
- Portfolio yield was 8.3%, expected to increase as higher-yielding investments are funded.
- Realized loss rate remained low at less than 10 basis points, indicating strong asset performance.
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- ARMOUR Capital Management waived $1.65 million of management fees in Q2, offsetting operating expenses.
- ARMOUR raised approximately $104.6 million of capital by issuing approximately 6.3 million shares of common stock through an at-the-market offering program during Q2.
- ARMOUR's Q2 GAAP net loss related to common stockholders was $78.6 million or $0.94 per common share.
- Distributable earnings available to common stockholders was $64.9 million or $0.77 per common share.
- Monthly common stock dividends were $0.24 per share, totaling $0.72 for the quarter.
- Net interest income was $33.1 million.
- Outstanding common shares total 91.5 million.
- Quarter ending book value was $16.90 per common share; estimated book value as of July 21 was $16.81 per common share.
- Since June 30, ARMOUR raised approximately $58.8 million of capital by issuing approximately 3.5 million shares of common stock through an at-the-market offering program.
- Agency RMBS repo markets remained stable with repurchase spreads around SOFR plus 20 basis points.
- Comprehensive loss for the quarter was $221.8 million or $2.13 per share including the accrual, and $21.9 million or $0.21 per share excluding it.
- For the first half of 2025, total economic return on book value was negative 10.3% including the accrual and positive 2.9% excluding it.
- Including the accrual, book value decreased to $12.14 per share.
- Mark-to-market gains and losses were lower by $93.4 million due to unfavorable market movements on MSR, swaps, TBAs, and futures, partially offset by positive movements on Agency RMBS.
- MSR financing included $1.8 billion outstanding borrowings across 5 lenders with $837 million unused capacity.
- Net interest and servicing income increased by $3.1 million driven by Agency RMBS portfolio growth and higher float income on MSR, partially offset by lower servicing fee income and higher financing costs.
- The company issued $115 million of 9.38% senior notes due 2030 to refinance 6.25% senior notes due 2026.
- The company took a loss contingency accrual of $199.9 million or $1.92 per share related to ongoing litigation from the termination of its management agreement with PRCM Advisers.
- Two reported a total economic return of negative 14.5% for Q2 2025 including a loss contingency accrual of $1.92 per share, and negative 1.4% excluding the accrual.
- Adjusted FFO was $232 million or $0.77 per share, and FAD was $223 million or $0.74 per share, both excluding certain items as detailed in reconciliations.
- Balance sheet remains strong with $734 million cash, 95% of $5 billion debt at fixed rates, fixed charge coverage ratio of 5.4x, and net funded debt to annualized adjusted normalized EBITDA at 3.67x, the lowest leverage in over a decade.
- Leverage target range remains 4 to 5x, with a sweet spot between 4.5 and 4.75x.
- Nareit FFO was $213 million or $0.70 per share, slightly down from $189 million or $0.72 per share in Q2 2024.
- Net income for Q2 2025 was $140 million or $0.46 per share, compared to $117 million or $0.45 per share in Q2 2024.
- Revenue for Q2 2025 was $283 million, up from $253 million in Q2 2024, primarily due to new investments, operator restructurings, and annual escalators, partially offset by asset sales.
- Second quarter adjusted funds from operations (AFFO) were $0.77 per share and funds available for distribution (FAD) were $0.74 per share, reflecting strong revenue and EBITDA growth driven by acquisitions and active portfolio management.
- Europe accounted for $889 million or 76% of investment volume at a 7.3% weighted average initial cash yield, while U.S. investments totaled $282 million at a 7% yield.
- Net debt to annualized pro forma adjusted EBITDA was 5.5x, in line with the company’s leverage target.
- Portfolio occupancy ended at 98.6%, 10 basis points higher than the prior quarter and above the historical median of 98.2%.
- Realty Income invested $1.2 billion in Q2 2025 at a 7.2% weighted average initial cash yield, with acquisitions having a weighted average lease term of approximately 15.2 years.
- Rent recapture rate was 103.4% across 346 leases, generating $97 million of annual cash from prior rents.
- The company sold 73 properties for $117 million in net proceeds, with $100 million related to vacant properties.
- The company sourced $43 billion in investment opportunities in Q2, matching the total volume sourced in all of 2024 and marking the highest quarterly volume in its history.
Dafinchi