- Adjusted company FFO in Q2 was $0.16 per diluted common share or approximately $47 million.
- Net debt to adjusted EBITDA was 5.8x at quarter end, down 0.4 turns over the last 12 months.
- Portfolio occupancy increased to 94.1% in Q2, up from 93.3% in Q1.
- Repurchased approximately $28 million of floating rate trust preferred securities at a 5% discount to par, yielding approximately 6.6%.
- Same-store NOI growth was 4.7% in Q2 with same-store portfolio 98% leased at quarter end.
- Sold a property in Chillicothe, Ohio for approximately $40 million at a 4.3% cash capitalization rate.
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- Adjusted EBITDAre was approximately $133 million for Q2 2025, down about 6% year-over-year.
- Adjusted hotel EBITDA for comparable hotels was $142 million in Q2 2025, down approximately 5% year-over-year.
- Comparable hotels total revenue was $380 million for Q2 2025, slightly down from Q2 2024.
- MFFO for Q2 2025 was approximately $112 million or $0.47 per share, down 6% on a per share basis compared to Q2 2024.
- Q2 2025 comparable hotels RevPAR was $129, down 1.7% compared to Q2 2024, with ADR at $164 and occupancy at 79%.
- Total hotel expenses increased by 2.8% for Q2 2025, with payroll per occupied room up 3% to $39.
- Year-to-date through June, comparable hotels RevPAR was $120, down 1.1%, ADR was $160 (up 0.4%), and occupancy was 75%.
- Capital expenditures were $10 million in Q2, with full-year guidance of $60 million to $65 million excluding timberland acquisitions.
- Lumber shipments set a new quarterly record at 303 million board feet, up from 290 million in Q1.
- PotlatchDeltic reported second quarter total adjusted EBITDDA of $52 million, down from $63 million in the first quarter.
- Real Estate segment delivered $23 million in adjusted EBITDDA, consistent with Q1, selling 7,500 acres at an average price of $3,100 per acre including conservation sales at premiums.
- The company repurchased $56 million of common stock in Q2, totaling $60 million in the first half of 2025, at an average price of $39-$40 per share.
- The Timberlands segment's adjusted EBITDDA decreased slightly from $42 million to $40 million due to seasonally lower harvest volumes and higher forest management costs.
- Wood Products segment earned $2 million in adjusted EBITDDA, down from $12 million in Q1, impacted by lower lumber prices, increased processing costs, and a $3 million inventory impairment charge.
- Book value per share increased 16% year-to-date, inclusive of dividends, on an 82% combined ratio and double-digit net investment income growth.
- Casualty and Surety segments posted 7% premium growth each, with Casualty combined ratio at 96.5% and Surety at 87.9%.
- Net earnings on a GAAP basis were $1.34 per share versus $0.89 in Q2 2024, influenced by $44 million unrealized equity gains this quarter compared to $4 million last year.
- Operating cash flow for Q2 was $175 million, up $33 million from last year, with a 2.9% total return for the quarter and strong first half performance.
- Property segment premiums declined 10%, influenced by rate decreases in E&S Property, but Marine and Hawaii Homeowners products grew.
- Second quarter operating earnings were $0.84 per share, supported by solid underwriting performance and a 16% increase in investment income.
- The total combined ratio was 84.5%, up from 81.5% last year, reflecting modest increases in loss and expense ratios but still within expectations.
- Achieved 4.9% annualized loan growth in Q3 2025, showing strong momentum after portfolio alignment.
- Deposits grew by $17 million with a loan-to-deposit ratio of 88%, supporting liquidity and funding needs.
- Diluted earnings per share (EPS) reached a record $1.13 for the quarter.
- Fee income remained robust, representing 20.8% of operating revenue, consistent with the prior quarter.
- Loan interest income increased to $66.0 million from $63.2 million in Q2, driven by loan growth and yield improvements.
- Net interest margin (NIM) increased slightly to 4.11% from 4.07% in Q2 2025, reflecting prudent loan pricing and funding cost management.
- Noninterest expense declined by $1.3 million quarter-over-quarter, improving efficiency ratio from 60.3% to 56.4%.
- Return on assets (ROA) was 1.60%, and return on equity (ROE) nearly 16%, placing Orrstown near the top of its peer group.
- Core funds from operations (FFO) for Q2 2025 were $187.6 million or $1.70 per share, $0.01 above the midpoint of prior guidance, driven by higher property tax refunds and lower interest expense.
- Full year core FFO guidance midpoint increased by $0.03 per share to $6.81, marking the second consecutive increase.
- Full year same-store expense midpoint was decreased from 3% to 2.5%, and same-store net operating income (NOI) midpoint increased from flat to positive 25 basis points.
- Net debt-to-EBITDA ratio stands at 4.2x with no significant debt maturities until Q4 2026 and no dilutive maturities until 2027.
- Property revenues were in line with expectations despite peak lease-up competition, with strong property expense management, especially in property taxes and insurance.
- Property taxes expected to increase less than 2%, down from prior 3% assumption, due to favorable settlements and lower Texas market values.
- Q3 core FFO per share guidance is $1.67 to $1.71, a slight sequential decline due to seasonal utility and maintenance expenses.
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