- Acquisitions totaled just over $230 million in Q2 across 45 properties with an initial cap rate of 7.4% and average lease term over 17 years.
- Annualized base rent increased nearly 7% year-over-year to $894 million at quarter-end.
- Dispositions included 23 properties in Q2 generating over $50 million in proceeds, with year-to-date dispositions at 33 properties raising over $65 million.
- Free cash flow after dividend was approximately $50 million in Q2.
- Lease termination fees totaled $2.2 million, primarily from an auto parts store and a full-service restaurant, both resolved quickly.
- NNN REIT reported core FFO of $0.84 per share and AFFO of $0.85 per share for Q2 2025, each up 1.2% year-over-year.
- NOI margin was 98% for the quarter, with G&A expenses at about 5% of total revenues and NOI, and cash G&A at 3.7% of total revenues.
- The balance sheet remains strong with nearly $1.5 billion in liquidity and an average debt maturity of 11 years.
- Year-to-date acquisitions reached $460 million across 127 properties with similar cap rates and lease terms.
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- 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.
- Adjusted EBITDAre for Q2 was $73 million and adjusted FFO was $0.28 per diluted share.
- Net leverage stood at 3.5x trailing earnings or 4.8x including preferred equity.
- Second quarter RevPAR increased 2.2% year-over-year, with total RevPAR growth of 3.7%.
- Sold Hilton New Orleans St. Charles at a mid-8% cap rate on 2024 earnings and redeployed proceeds into $100 million of share repurchases.
- Strong ancillary spend offset lighter rooms revenue growth, mitigating margin pressure.
- Total liquidity exceeded $600 million, including cash, equivalents, and credit facility capacity.
- Leasing activity totaled approximately 405,000 square feet in Q2, the highest quarterly total since 2019, with a year-to-date total of about 690,000 square feet.
- Mark-to-market on 205,000 square feet of second-generation space was down 5.4% on a cash basis and up 2.6% on a GAAP basis.
- New York portfolio leased occupancy increased to 88.1%, the highest since early 2022, while San Francisco's occupancy was 75.1%, down due to the Google lease expiration.
- Paramount Group delivered a strong second quarter with core FFO of $0.17 per share, exceeding consensus by $0.03.
- The company ended the quarter with over $534 million in cash and restricted cash, and total debt of $3.2 billion with a weighted average interest rate of 4.3%.
- Asset quality improved with net charge-offs declining and total NPAs to assets ratio at 0.45%, the lowest since September 2024.
- Capital markets revenue rebounded sharply to $24 million, up $14 million from the prior quarter, exceeding guidance.
- Core deposits grew $410 million or 8% annualized year-to-date, supporting strong funding base.
- Efficiency ratio improved to 55.8%, the lowest in four years, reflecting disciplined expense management.
- Loan growth accelerated by $286 million or 17% annualized, net of planned runoff from M2 equipment loans.
- Net interest income increased by $3 million or 18% annualized, driven by net interest margin (NIM) expansion and strong loan growth.
- Record quarterly net income of $37 million and earnings per share of $2.17, representing 26% growth compared to the prior quarter.
- Wealth management revenue grew 8% linked quarter to over $5 million, with year-over-year growth of 15% annualized.
- Average base rent per leased square foot grew 5.3% year-over-year to $25.28.
- Bad debt for the quarter was just under 1% of revenues, consistent with prior year and within forecasted range.
- Debt-to-EBITDAre improved to 7.2x from 7.8x a year ago, with an expected year-end target of about 7x.
- G&A and interest expenses were reduced by about 6% compared to the prior year.
- Leasing spreads remained strong with straight-line leasing spreads of 17.9%, marking the 13th consecutive quarter above 17%.
- Occupancy increased 100 basis points sequentially from Q1 to 93.9%.
- Same-store NOI growth was 2.5% for the quarter and 3.9% for the 6 months, on track to meet the full-year target range of 3% to 4.5%.
- Whitestone REIT delivered core FFO per share of $0.26 for Q2 2025 and $0.51 for the first 6 months, representing a 5.4% and 5.6% year-over-year increase respectively.
- Adjusted EBITDAre remained relatively flat at $85 million.
- Cash basis NOI grew by 2.1% compared to the same period last year.
- Interest coverage ratio increased from 1.2x to 1.3x.
- Interest expense decreased by $1.9 million compared to Q1 2025 to $67.9 million, with expected further decline in Q3 to approximately $63.5 million.
- Net debt to total assets ratio increased slightly to 69.9%, net debt coverage ratio remained at 12x.
- NOI was $87.6 million and cash basis NOI was $84.7 million, both increasing year-over-year and sequentially.
- Normalized FFO increased 54% year-over-year to $13.8 million or $0.21 per share, at the high end of guidance.
- Occupancy ended the quarter at 94.3%, exceeding the national industrial average by 170 basis points.
- Variable debt to net debt ratio declined from 64.8% to 34.4% due to refinancing.
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