Credit Sensitive Strategies contributed $22 million to pretax income, including $17 million from organically created CRT investments.
Interest Rate Sensitive Strategies had a pretax loss of $5 million, with fair value increases on MSR investments offset by declines in MBS and interest rate hedges.
Net income excluding market-driven value changes was $36 million, down from $41 million in the prior quarter due to higher realized and projected prepayment activity.
PMT declared a second quarter common dividend of $0.40 per share; book value per share at June 30 was $15, down modestly from March 31.
PMT reported a net loss to common shareholders of $3 million or loss per share of $0.04 in Q2 2025, driven by fair value declines and a $14 million nonrecurring tax adjustment.
Total correspondent loan acquisition volume was $30 billion, up 30% from the prior quarter, with $3 billion acquired for PMT's account, up 11%.
Adjusted leverage was modest at 1.6x as of quarter end, with total gross leverage at 1.9x, below the target range of 2x to 3x.
Declared and paid a $0.23 per share dividend; repurchased $6.6 million of common stock in Q2 with $93.4 million remaining in the repurchase program.
Ladder generated distributable earnings of $30.9 million or $0.23 per share in Q2 2025, achieving a return on equity of 7.7%.
Loan portfolio totaled $1.6 billion with a weighted average yield of approximately 9%, and 5 loans on nonaccrual totaling $162.3 million (3.6% of total assets).
Real estate portfolio of $936 million generated $15.1 million in net operating income, primarily from net lease properties with long-term leases to investment-grade tenants.
Securities portfolio was $2 billion, up 82% from year-end, with a weighted average yield of 5.9%, 99% investment-grade and 97% AAA rated.
Average deposits declined just over 1%, with non-interest bearing deposits stable at 38%.
Average loans grew almost 1% for the quarter and period-end loans increased approximately 3%.
Capitalization remained strong with an estimated CET1 ratio of 11.94%, well above the 10% strategic target.
Net charge-offs were 22 basis points, at the low end of the normal range and flat quarter-over-quarter.
Net interest income remained stable at $575 million for the third consecutive quarter.
Non-interest expenses decreased $23 million due to lower litigation expenses and salaries, with some offsetting increases in advertising and outside processing.
Non-interest income increased $20 million driven by higher loan volumes, capital markets income, and seasonal benefits.
Reported earnings per share of $1.42, a nearly 14% increase over the prior quarter.
Returned $193 million to shareholders through dividends and share repurchases, including $100 million in share repurchases in Q2.
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.
Ares reported strong second quarter results with significant growth in AUM and fee-paying AUM driven by fundraising, investing efforts, and market appreciation.
Corporate private equity composite rose 3.3% gross, private equity secondaries generated 3.1% net and gross returns.
Credit strategies delivered strong quarterly gross returns ranging from 2.2% to 5.5%, with double-digit returns over the last 12 months.
Fee-paying AUM (FPAUM) increased to $350 billion, a 17% quarter-over-quarter organic growth on an annualized basis.
GCP acquisition contributed $103 million in revenues and $34 million in FRE with a 33% FRE margin, temporarily compressing overall FRE margin by 90 basis points.
Management fees grew 24% year-over-year, total fee-related revenue grew 29%, and fee-related earnings (FRE) grew 26%.
Management fees reached a record $900 million in the quarter.
Net accrued performance income increased 8.5% to $1.1 billion, with strong investment results across the business.
Other fees more than tripled year-over-year due to GCP's vertically integrated real estate capabilities.
Quarterly AUM increased to $572 billion, representing quarter-over-quarter organic growth of 19% on an annualized basis.
Real estate equity composite increased 3.4% gross, diversified nontraded REIT generated 4.5% net return for first half of the year.
Realized income totaled $398 million, a 10% year-over-year increase, with an effective tax rate of 9.5%.
Second quarter fee-related performance revenues totaled $17 million, mostly from APMF, with expected seasonality in future quarters.
Dafinchi