Sale of New Zealand Business and Capital Realignment
Rayonier completed the sale of its New Zealand joint venture to The Rohatyn Group for $710 million, exceeding the initial target of $1 billion in total dispositions.
The sale marked a key milestone in Rayonier’s asset disposition and capital structure realignment plan, with total dispositions reaching $1.45 billion.
Proceeds from the sale will be used to reduce leverage, fund share repurchases, and potentially reinvest in acquisitions, with at least 50% allocated to debt reduction and shareholder returns.
The company repurchased $35 million worth of shares during Q2 and has $262 million remaining on its buyback authorization.
The transaction improved Rayonier’s credit rating from BBB- to BBB, and the company now has a strong balance sheet with $892 million in cash and $1.1 billion in debt.
Strategic Portfolio Rebalancing and Capital Return Plan
Cannae has sold approximately $1.1 billion of public company stakes since February 2024, significantly reducing its public holdings from 63% to 22% of assets.
The company expects to receive around $630 million from the sale of Dun & Bradstreet, which will be used for share repurchases, debt repayment, and dividends.
Cannae has repurchased 7.6 million shares, or about 12% of outstanding shares, at an average price of $19.71, aiming to close the NAV discount.
The company increased its quarterly dividend by 25% to $0.15 per share, reflecting a commitment to returning capital to shareholders.
Since February 2024, Cannae has returned approximately $414 million through buybacks and dividends, demonstrating a strategic focus on capital deployment.
Interest expense was $1.1 million this quarter, expected to rise to $1.7 million next quarter due to leverage on upcoming residential acquisitions.
Next quarter guidance includes adjusted EBITDA of approximately $20.5 million, distributable earnings between $0.44 and $0.46 per share, and adjusted EPS between $0.21 and $0.23 per share.
Recurring cash compensation decreased by $3.5 million sequentially to $38.6 million due to cost containment measures; recurring G&A decreased by $1.2 million to $9.5 million.
Recurring service revenues were approximately $44 million, down $1.5 million sequentially due to lower property management fees at RMR Residential, partially offset by seasonal improvements in Sonesta-related fees.
RMR reported adjusted net income of $0.28 per share, distributable earnings of $0.43 per share, and adjusted EBITDA of $20.1 million for Q3 2025, all in line with expectations.
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.
Dafinchi