- 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.
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- The company has sold approximately $338 million worth of hotel assets since the pandemic began, with additional sales under contract for $36 million.
- Proceeds from recent sales have been primarily used to fund share repurchases, demonstrating a focus on shareholder returns.
- The company completed the sale of 2 hotels for about $21 million and entered agreements for the sale of a full-service hotel in Houston for $16 million.
- Asset sales are strategically aimed at optimizing portfolio concentration and reducing capital expenditure needs, with some assets sold at sub-6% cap rates.
- The company is actively testing the market for larger transactions, indicating a flexible and opportunistic disposition strategy.
- Proceeds from asset sales are also used to fund acquisitions, such as the upcoming Nashville hotel, and to maintain balance sheet strength.
- Successfully completed $500 million 5-year unsecured bond offering at a 4.6% coupon, positioning the company strongly for future strategies.
- Achieved an average debt maturity of over 11 years, sector-leading, providing balance sheet flexibility.
- Pro forma liquidity of nearly $1.5 billion post-bond issuance, with no floating or secured debt, supporting growth and acquisition plans.
- Entered into a new $200 million 5-year revolving credit facility with JPMorgan Chase, Raymond James, RBC, and Synovus, with potential to increase by an additional $200 million.
- Improved credit spread by 15 basis points compared to previous facility, with a maturity date of June 30, 2028.
- Significant reduction in interest rate risk through a new SOFR swap at a fixed rate of 3.489%.
- A $50 million share repurchase program was approved, with 3.6 million shares bought at an average of $4.30 per share.
- Repurchases are opportunistic, funded partly by proceeds from asset sales and aimed at reducing share count by about 3%.
- The buybacks are accretive, with an implied dividend yield of 7.4%, above the company's borrowing costs.
- Asset sales of non-core hotels are expected to generate proceeds that exceed buyback funding, aiding deleveraging.
- The company emphasizes balancing capital return with investment in the portfolio and maintaining liquidity.
- RMR has focused on deleveraging through asset sales and refinancings.
- Share prices of DHC and ILPT increased substantially year-to-date.
- Share price improvements led to potential incentive fees exceeding $17 million for RMR.
- Active asset management and sector fundamentals contributed to strong performance.
- 30-day delinquency rate improved to 6.6%, down 50 basis points sequentially and 30 basis points year-over-year.
- Book value per share reached $36.43 at quarter end.
- Capital generation was $16.9 million in Q2, with $26.8 million year-to-date.
- Net credit loss rate was 11.9%, improving 50 basis points sequentially and 80 basis points year-over-year.
- Net receivables grew by $70 million sequentially and were up 10.5% year-over-year.
- Operating expense ratio improved to 13.2%, an all-time best and 60 basis points better year-over-year.
- Quarterly revenue reached a record $157 million, up 10% year-over-year.
- Regional Management delivered net income of $10.1 million and diluted EPS of $1.03 in Q2 2025, a 20% year-over-year improvement.
- Returned $17.6 million to shareholders year-to-date via $11.6 million in stock repurchases and $6.1 million in dividends.
- Total originations hit a record $510 million, up 20% year-over-year.
- The company signed a definitive agreement to sell the 369-room Marriott Seattle Waterfront for $145 million, representing an 8.1% cap rate on trailing 12-month net operating income.
- The sale aligns with the strategic objective to deleverage the portfolio and sharpen focus on the luxury hotel sector.
- Closing is expected in the next few weeks, subject to customary conditions.
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