- Adjusted FFO was $232 million or $0.77 per share, and FAD was $223 million or $0.74 per share, both excluding certain items as detailed in reconciliations.
- Balance sheet remains strong with $734 million cash, 95% of $5 billion debt at fixed rates, fixed charge coverage ratio of 5.4x, and net funded debt to annualized adjusted normalized EBITDA at 3.67x, the lowest leverage in over a decade.
- Leverage target range remains 4 to 5x, with a sweet spot between 4.5 and 4.75x.
- Nareit FFO was $213 million or $0.70 per share, slightly down from $189 million or $0.72 per share in Q2 2024.
- Net income for Q2 2025 was $140 million or $0.46 per share, compared to $117 million or $0.45 per share in Q2 2024.
- Revenue for Q2 2025 was $283 million, up from $253 million in Q2 2024, primarily due to new investments, operator restructurings, and annual escalators, partially offset by asset sales.
- Second quarter adjusted funds from operations (AFFO) were $0.77 per share and funds available for distribution (FAD) were $0.74 per share, reflecting strong revenue and EBITDA growth driven by acquisitions and active portfolio management.
Explore Similar Insights
- Advisory revenue was $127 million with strong contributions from financials, industrials, and improving health care and technology sectors.
- Asset management revenues rose 6%, reflecting market appreciation and improved organic growth.
- Commissions and principal transactions rose 11% with gains in both Global Wealth and Institutional segments.
- Compensation ratio was 58%, consistent with the high end of full year guidance, and operating pretax margin was 20.3%.
- Equity capital raising totaled $46 million with a market shutdown for six weeks post-Liberation Day but recovery mid-May.
- Equity transactional revenue increased 16% year-over-year, and fixed income revenue rose 21% year-over-year.
- Fixed income underwriting revenue was $54 million, up 18% sequentially driven by public finance activity.
- Global Wealth Management posted its strongest second quarter ever with record client asset levels and higher net interest income.
- Institutional business revenue increased 7% year-over-year, with record fixed income revenue and a late quarter pickup in investment banking.
- Investment banking revenue totaled $233 million, exceeding guidance by over $20 million due to six transactions closing late in the quarter.
- Net interest income increased 8% due to higher interest earning assets and lower funding costs.
- Net interest income of $270 million came in at the high end of guidance with a 12 basis point increase in bank net interest margin.
- Non-compensation expenses increased 7% year-over-year, with severance and restructuring charges of $28 million in European operations.
- Operating EPS of $1.71 was up 7% from the prior year.
- Provision for income taxes was 25.4%, slightly above consensus due to nondeductible foreign losses.
- Stifel Financial delivered over $1.28 billion of net revenue and $1.71 in core EPS in Q2 2025, marking the best second quarter in company history with a return on tangible common equity of 22%.
- Tier 1 leverage capital ratio was 10.8%, and Tier 1 risk-based capital ratio was 17.5%, with approximately $315 million of excess capital.
- Achieved a 20% return on average tangible common equity and over 1.3% return on assets.
- Capital ratios strengthened with CET1 over 11%, increasing 28 basis points quarter-over-quarter.
- Core deposits grew 5.8% annualized excluding brokered deposits, with non-interest bearing deposits at 24% of core deposits.
- Credit metrics improved with a 6% reduction in criticized and classified loans and normalized charge-offs at 25 basis points.
- Efficiency ratio improved to below 50%, specifically a low 48% adjusted efficiency ratio.
- Reported GAAP earnings per share of $0.46 and adjusted EPS of $0.59, an 11% increase over prior quarter and 28% year-over-year growth.
- Tangible book value per share grew 4% linked quarter and 10% year-over-year.
- AFFO per share was $1.28 for the second quarter, representing a 9.4% increase year-over-year driven by accretive investment activity and sector-leading rent growth.
- Comprehensive same-store rent growth was 4% year-over-year, reflecting rent collections, recovery of past due rent, leasing activity, and vacancies.
- Contractual same-store rent growth for Q2 was 2.3% year-over-year, with CPI-linked escalations averaging 2.6% and fixed rent increases averaging 2.1%.
- Dividend declared at $0.90 per share for Q2, a 3.4% increase over prior year, with a payout ratio of approximately 73% of AFFO per share.
- G&A expenses are expected between $99 million and $102 million for the full year, with non-reimbursed property expenses between $50 million and $54 million.
- Key leverage metrics remain within target ranges: debt to gross assets at 43.2% and net debt to adjusted EBITDA at 5.8x.
- Liquidity at quarter end was about $1.7 billion, with $660 million drawn on the revolver, partially paid down after a $400 million bond issuance.
- Nonoperating income is expected around $20 million for the full year, mainly from dividends on equity stakes.
- Operating property NOI for 2025 is estimated between $55 million and $60 million, including hotel and student housing properties.
- Tax expense on an AFFO basis is expected between $42 million and $46 million, primarily foreign taxes on European assets.
- Adjusted recurring net investment income increased by 25% year-over-year for the quarter and 19% year-to-date compared to 2024.
- Debt-to-equity ratio stood at 1.8x, within the target range of 1.5x to 2x, with liquidity at $1.4 billion.
- HASI reported adjusted EPS of $0.60 for Q2 2025, slightly down from the previous quarter due to timing of gain on sale revenue.
- Managed assets grew to $14.6 billion and portfolio assets to $7.2 billion, up 13% and 16% respectively from the prior year.
- Portfolio yield was 8.3%, expected to increase as higher-yielding investments are funded.
- Realized loss rate remained low at less than 10 basis points, indicating strong asset performance.
Dafinchi