- Adjusted EBITDA for the quarter was $183 million and adjusted FFO per share was $0.64, both exceeding expectations.
- July preliminary RevPAR declined approximately 4%, including renovation disruption at Royal Palm South Beach.
- Q2 RevPAR was relatively flat year-over-year excluding Royal Palms South Beach, which suspended operations for renovation.
- Q3 RevPAR is expected to decline by approximately 4% to 5%, with group pace down 14%, the weakest quarter of the year.
- Q4 RevPAR growth is expected to reaccelerate to 3% to 5%, supported by an 18% increase in group revenue pace.
- The sale of Hyatt Centric Fisherman's Wharf for $80 million at a 64x 2024 EBITDA multiple demonstrated strong underlying real estate value.
- Total expense growth was just 40 basis points for the quarter or 1% excluding Royal Palm South Beach, marking the second consecutive quarter with expense growth of approximately 1% or less.
- Total hotel revenues for the quarter were $645 million and hotel adjusted EBITDA was $191 million, with an adjusted EBITDA margin of 29.6%.
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- The Andaz Miami Beach opened in May 2025, later than the planned March opening, affecting initial occupancy and EBITDA.
- Management expects the delayed opening to cause a $2-3 million EBITDA headwind in 2025, with a stronger contribution in 2026.
- The resort's reviews have improved significantly, with Tripadvisor rankings rising from #200 to #26 in three months.
- Group bookings for 2026 are strong, with over 1,800 definite room nights booked at over $600, indicating positive future momentum.
- The hotel is actively working to increase transient bookings, which have risen from 200-300 to 800-900 weekly bookings recently.
- Management plans to debut a signature restaurant in early 2026 to boost demand and ratings.
- Adjusted combined ratio was 73.1% for Q2 2025, consistent with the prior year period.
- Annualized adjusted return on equity was 23.7%, slightly down from 24.7% in Q2 2024.
- Gross written premiums grew 29% year-over-year to $496.3 million, or 45% growth excluding runoff business.
- Loss ratio was 25.7%, driven primarily by non-catastrophe attritional losses and favorable reserve development.
- Net investment income increased 68% year-over-year to $13.4 million with a yield of 4.7%.
- Second quarter 2025 adjusted net income increased 52% year-over-year to $48.5 million or $1.76 per diluted share.
- Average occupancy increased by 10 basis points, average effective monthly rents increased by 90 basis points, and bad debt improved by 20 basis points compared to the prior year.
- Core FFO per share was $0.28 in Q2 2025, up from $0.27 in Q1 2025.
- Noncontrollable expenses declined by 3%, including an 18% reduction in property insurance premiums.
- Renewal rate increases of 3.9% and 58% retention supported 70 basis points of blended rent growth in the quarter.
- Same-store NOI grew 2% in the quarter, driven by a 1% increase in same-store revenue and a 60 basis point decrease in operating expenses.
- Same-store operating expenses decreased 60 basis points over the prior year quarter, fully offsetting softer revenue growth.
- Second quarter same-store NOI and core FFO per share results were in line with expectations, with same-store revenues increasing 1% over the prior year.
- Three wholly-owned communities were classified as held for sale during the quarter, and a $10.4 million gain from a JV property sale will be recorded in Q3 but excluded from core FFO.
- FFO adjusted for the quarter was approximately $87 million or $0.33 per share in Q2 2025.
- Go-Forward Portfolio Centers NOI increased 2.4% in Q2 2025 compared to Q2 2024, with a 2% increase year-to-date.
- Net debt to EBITDA was 7.9x at the end of Q2 2025, nearly a full turn lower than at the outset of the Path Forward plan.
- Occupancy at the end of Q2 was 92%, down 60 basis points due to Forever 21 store closures; go-forward portfolio occupancy was 92.8%.
- Portfolio sales at the end of Q2 were $849 per square foot, up $12 from Q1 2025; go-forward portfolio sales were $906 per square foot.
- Trailing 12-month leasing spreads remained positive at 10.5%, marking 15 consecutive quarters of positive spreads.
- Bad debt was up from a year ago in Q2 but in line year-to-date and within guidance range.
- Core FFO for Q2 was $88.2 million or $0.64 per diluted share, reflecting 8.5% per share growth.
- Core FFO per share increased 8.5% year-over-year.
- NAREIT FFO for Q2 was $86 million or $0.62 per diluted share, reflecting 8.8% per share growth.
- New leasing rent spreads were 34.6% comparable and 28.1% in-line.
- Portfolio occupancy ended Q2 at 97.4%, anchor occupancy at 98.9%, and in-line occupancy at 94.8%.
- Renewal rent spreads were strong with comparable renewal spreads at 19.1% and in-line renewal spreads at 20.7%.
- Same-center NOI increased 4.2% in Q2 2025.
- Tenant improvement costs for renewals were low at $0.49 per square foot.
- FAD was $0.33 per share, a $0.04 sequential increase, representing a 96% payout ratio, a significant improvement from the first quarter.
- Net debt to adjusted EBITDA sits at 6x, with expectations to decrease into the mid-5x area by year-end.
- Normalized FFO was $0.41 per share, a $0.02 sequential increase, and up nearly 7% year-over-year, driven by strong occupancy gains, disciplined cost management, and a decrease in share count.
- Same-store occupancy was 90%, a 40 basis point sequential increase, with same-store NOI growth of 5.1%, a 280 basis point sequential increase, the highest in 9 years.
- The company completed a successful renewal of its revolver, extended the tenor of term loans, and raised 2025 normalized FFO per share guidance to $1.57 to $1.61.
- Year-to-date asset sales increased to $211 million at a blended 6.2% cap rate, with over $700 million of additional assets under contract or LOI.
Dafinchi