- Cash rents increased by $4.6 million year-over-year, driven by investment volume and lease escalators.
- Interest expense remained flat year-over-year; weighted average diluted shares increased 7.5% to 46.8 million.
- Liquidity stood at approximately $760 million, including cash, revolver capacity, and escrowed forward equity proceeds.
- NAREIT FFO per share increased 0.8% to $1.19, and normalized FFO per share increased 3.4% to $1.22 compared to Q2 2024.
- Net income per share for Q2 2025 was $0.79, down 2.5% year-over-year.
- Secured debt was fully retired during the quarter, and net debt to adjusted EBITDA ratio was 3.9x, below target range.
- SHOP NOI grew 29.4% year-over-year to $3.8 million, with a 32.6% increase in SHOP common shareholder FAD contribution.
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- Cash same-property NOI growth in Q2 was 450 basis points, with onetime items contributing 300 basis points on a cash basis.
- Excluding that lease, cash re-leasing spreads would have been approximately positive 1%, a meaningful improvement year-over-year.
- FFO for the quarter was $1.13 per diluted share, including approximately $0.11 per share of onetime items such as a $10.7 million lease termination fee contributing $0.05 per share.
- GAAP re-leasing spreads were negative 11.2% and cash re-leasing spreads negative 15.2%, impacted by a single large lease in San Francisco with a term under 3 years.
- Occupancy ended Q2 at 80.8%, down from 81.4% in Q1, reflecting expected rightsizing and early vacates related to tenant bankruptcies.
- The removal of the 89% leased 4-building campus held for sale negatively impacted occupancy by 20 basis points but lease commencement acceleration maintained occupancy guidance midpoint.
- Book value per share increased quarter-over-quarter to $13.49.
- Combined cash and unencumbered assets increased to about $920 million, more than 50% of total equity.
- Ellington Financial reported GAAP net income of $0.45 per share and adjusted distributable earnings (ADE) of $0.47 per share in Q2 2025.
- Leverage ratios remained stable with recourse debt-to-equity at 1.7:1 and overall debt-to-equity at 8.7:1 including securitizations.
- Longbridge segment contributed $0.13 per share to ADE, driven by strong origination volumes, securitization gains, and servicing income.
- Net interest margin (NIM) on the credit portfolio increased by 21 basis points, while the NIM on Agency decreased by 17 basis points.
- Portfolio size remained roughly unchanged quarter-over-quarter with growth in mortgage loan portfolios offset by securitizations and tactical sales.
- The company achieved an annualized economic return of nearly 14% and a total economic return of 3.3% for the quarter (non-annualized).
- Allowance for credit losses was 1.06% of loans; capital ratios remained strong with CET1 at 10.63% and total capital ratio at 14.39%.
- Deposits grew 1.7% driven by new commercial accounts and branch contributions; noninterest-bearing demand deposits rose over 7% year-over-year, representing 31.3% of total deposits.
- Efficiency ratio held steady at 55.7% despite a 3.9% increase in noninterest expenses, including higher salaries and advertising due to branch expansion.
- Net charge-offs were $11.4 million, including an $8.6 million charge-off on a syndicated commercial real estate loan; excluding this, charge-offs were 18 basis points annualized.
- Net income for Q2 2025 was $15.1 million or $0.50 per diluted share, down from $17.7 million and $0.58 in Q1, primarily due to increased credit loss expense.
- Net interest margin increased by 5 basis points to 3.07%, helped by lower funding costs and loan volume growth.
- Pre-provision net revenues grew 3.7% quarter-over-quarter to $57.1 million, driven by higher net interest income and noninterest income.
- Return on average assets was 0.79% and return on average equity was 7.8%.
- Total loans increased by 0.4% linked-quarter or 1.6% annualized to $6.31 billion, with growth in C&I and residential mortgage loans.
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