- Cash and GAAP rent growth were strong at 3.6% and 17.6%, respectively.
- Highwoods Properties delivered FFO of $0.89 per share in Q2 2025, with net income of $18.3 million or $0.17 per share.
- Leasing volumes were strong with 923,000 square feet of second-gen leasing, including 371,000 square feet of new leasing.
- Occupancy was roughly flat from Q1 at 85.6%, while leased rate increased 80 basis points to 88.9%.
- The company raised the mid-point of its 2025 FFO outlook by $0.02 to a range of $3.37 to $3.45 per share.
- The debt-to-adjusted EBITDAre ratio was 6.3x at quarter-end, with $106 million left to fund on the development pipeline and over $700 million of available liquidity.
- The quarter included three atypical items: a $3 million payment from Florida Department of Transportation, $1 million of term fees from early space takebacks, and nearly $1 million write-off of predevelopment costs.
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- Adjusted EBITDA increased 35% year-over-year to $45 million, driven by improved results in Pacific Northwest Timber and Real Estate segments.
- Net income attributable to Rayonier was $409 million or $2.63 per share, including a $404 million gain from the sale of the New Zealand joint venture.
- Pacific Northwest Timber segment adjusted EBITDA rose 17% despite a 15% decline in harvest volumes, supported by higher log prices and lower costs.
- Pro forma net income excluding discontinued operations was $10 million or $0.06 per share.
- Rayonier reported second quarter 2025 sales of $107 million and operating income of $15 million.
- Real Estate segment adjusted EBITDA was $19 million, significantly above guidance, due to strong demand and accelerated transaction timing.
- Southern Timber segment adjusted EBITDA declined 16% due to lower harvest volumes and a 14% decrease in weighted average stumpage prices.
- Excluding Grand Hyatt Scottsdale, hotel EBITDA increased 11.5% and hotel EBITDA margin increased 148 basis points.
- Food and beverage revenues from groups grew significantly, contributing to an 11% increase in same-property total RevPAR.
- Group room revenues increased 15.6% year-over-year, or 7.6% excluding Grand Hyatt Scottsdale.
- Property tax refunds of approximately $1.5 million positively impacted EBITDA margin by about 60 basis points.
- Rooms department expenses increased just over 3% on 0.4% RevPAR growth; food and beverage revenue growth was 12.7%, banquet revenue growth nearly 20%.
- Same-property hotel EBITDA was $84 million, 22.2% above 2024 levels, with a hotel EBITDA margin increase of 269 basis points.
- Same-property RevPAR increased 4% driven by a 140 basis point increase in occupancy and a 2% increase in average daily rate.
- Second quarter same-property total revenue increased 11% compared to Q2 2024.
- Xenia Hotels & Resorts reported net income of $55.2 million for Q2 2025, with adjusted EBITDAre of $79.5 million and adjusted FFO per share of $0.57, a 9.6% increase year-over-year.
- Balance sheet remains strong with over $1.8 billion liquidity, including $560 million cash, and net debt to EBITDA of 4x.
- Core FFO was $0.59 per share, a $0.01 increase over the prior quarter excluding one-time termination revenue.
- Market rents declined approximately 3.5% sequentially and 12.8% year-over-year, but tenant health remained strong with bad debt at only 6 basis points of revenue.
- Net effective and cash leasing spreads for comparable leases were 21% and 8%, respectively, with embedded rent steps averaging 3.7%.
- Rexford Industrial delivered second quarter 2025 results in line with expectations, including 1.7 million square feet of leases executed and same-property occupancy increasing to 96.1%.
- Year-to-date dispositions totaled $134 million at a weighted average cap rate in the low 4% range, achieving an unlevered IRR of 11.9%.
- Capital allocated to legacy investments reduced by 17% since March 31, 2025.
- Core segment's earnings available for distribution (EAD) was $25 million or $0.18 per share, with a 14.5% annualized ROE, compared to $28 million or $0.20 per share in Q1.
- CoreVest Mortgage Banking achieved $6 million segment net income and a 34% annualized EAD ROE.
- GAAP book value per share declined to $7.49 at June 30, 2025, from $8.39 at March 31, 2025.
- Legacy investments recorded a $104 million loss, driven by negative fair value adjustments and accelerated asset sales.
- Mortgage banking platforms delivered combined returns exceeding 20% and gain on sale margins above target for the fourth consecutive quarter.
- Mortgage banking revenue increased 88% year-over-year.
- Redwood reported a GAAP net loss of $100.2 million or $0.76 per share for Q2 2025, primarily due to accelerated wind down of legacy portfolio and associated fair value changes.
- Sequoia Mortgage Banking generated $22 million segment net income with a 19% annualized ROE; Aspire loan volumes tripled sequentially to $330 million.
- Ares Commercial Real Estate reported a GAAP net loss of approximately $11 million or $0.20 per diluted common share for Q2 2025.
- Distributable earnings for Q2 2025 were a net loss of approximately $28 million or $0.51 per diluted common share, including a $33 million realized loss related to the exit of a Massachusetts office life sciences loan.
- Excluding the realized loss, distributable earnings were approximately $5 million or $0.09 per diluted common share.
- Net debt-to-equity ratio, excluding CECL, was stable at 1.2x quarter-over-quarter and down from 1.9x year-over-year.
- Outstanding borrowings decreased 6% quarter-over-quarter and 39% year-over-year to $889 million.
- The Board declared a regular cash dividend of $0.15 per common share for Q3 2025, with an annualized dividend yield above 13% based on the stock price as of July 31, 2025.
- The CECL reserve declined by approximately $20 million to $119 million, representing about 9% of the total outstanding principal balance of loans held for investment.
- The company collected $30 million in repayments during Q2 2025, nearly three times the amount collected in the first half of 2024, strengthening liquidity and the balance sheet.
- Unfunded commitments were reduced by 50% quarter-over-quarter and 58% year-over-year to $37 million.
- Adjusted EPS grew 19% year-over-year to $3.49, reflecting strong earnings power.
- Adjusted operating income rose 14% year-over-year to $1.2 billion, supported by restructuring savings and scale improvements from Aon Business Services (ABS).
- Adjusted operating margin expanded by 80 basis points to 28.2%, driven by scale improvements and restructuring savings.
- Aon delivered 6% organic revenue growth, 19% adjusted EPS growth, and 59% free cash flow growth in Q2 2025, in line with expectations.
- Aon delivered 6% organic revenue growth in Q2 2025, with total revenue increasing 11% to $4.2 billion.
- Commercial Risk, Reinsurance, and Health each delivered 6% organic revenue growth; Wealth grew 3%.
- Fiduciary investment income was $66 million, down 12% year-over-year due to lower interest rates despite higher average balances.
- Free cash flow increased 59% year-over-year to $732 million, supported by operating income growth and improved days sales outstanding.
- Free cash flow reached $732 million, up 59% year-over-year, driven by strong operating income and improved days sales outstanding.
- Leverage ratio improved to 3.4x, on track to reach target range of 2.8x to 3.0x by Q4 2025.
- NFP acquisition contributed positively to revenue and margin, with a more normalized margin profile post-acquisition.
- Operating leverage and restructuring savings ($35 million in Q2) contributed approximately 83 basis points to margin expansion.
- Organic revenue growth was broad-based across Commercial Risk, Reinsurance, and Health, each delivering 6% growth, while Wealth grew 3%.
- Retention improved by 1 point year-over-year, driven by gains in Commercial Risk segment.
- Returned $411 million to shareholders in dividends and $250 million in share repurchases during the quarter.
- Revenue-generating hires increased 6% through June 30, supporting sustainable organic growth.
- Total revenue increased 11% to $4.2 billion, with adjusted operating margin expanding 80 basis points to 28.2%.
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