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.
Adjusted operating margin expanded to 39.6% in Q2, up 120 basis points from prior year.
Financial Solutions segment grew 7% organically in Q2, led by issuing and digital payments growth.
Fiserv delivered 8% adjusted and organic revenue growth in Q2 2025, with 16% adjusted EPS growth year-over-year.
Free cash flow was $1.2 billion in Q2 and $1.5 billion for the first half of 2025, with an expected full year of approximately $5.5 billion.
Merchant Solutions operating margin declined 200 basis points to 34.6% due to investments and acquisitions, while Financial Solutions margin expanded to 48.7%.
Merchant Solutions segment grew 9% organically in Q2, with 10% adjusted revenue growth, driven by Clover and Commerce Hub.
Share repurchases totaled $2.2 billion in Q2, with guidance increased to approximately 130% of free cash flow for 2025.
East West Bancorp reported record quarterly revenue and net interest income in Q2 2025, with average loan and deposit growth of 2% quarter-over-quarter.
Efficiency ratio was 36.4%, with total operating noninterest expense at $230 million, in line with full-year guidance.
Income tax expense was $92 million with an effective tax rate of 22.9%, including a $6 million one-time expense related to California's tax changes.
Net interest income grew to $617 million, up $17 million from Q1, with a 16.7% adjusted return on tangible common equity and a 1.6% return on average assets.
Total average deposits grew 2% quarter-over-quarter, with strong growth in noninterest-bearing deposits and commercial deposit segments.
Total noninterest income was $86 million, with fee income at $81 million, the third highest quarter for fees in company history.
Impact of Securities Portfolio Repositioning on Earnings and Margins
Executed an additional securities repositioning at the end of Q2, resulting in a $8.5 million net loss but expected to be accretive to future earnings.
Repositioning is projected to add 13 basis points to net interest margin and $0.20 of annual EPS, primarily benefiting Q3.
Management emphasized the strategic importance of this move for margin expansion and earnings growth.
Dafinchi