Allowance for credit losses totaled $142.2 million or 1.34% of total loans, with total loss absorption capacity of $250.6 million or 2.36% of loans.
Asset quality remained sound with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million (9 basis points annualized).
Asset quality remained strong with nonperforming loans declining to 0.61% of total loans and net charge-offs at $2.5 million or 9 basis points annualized.
Capital ratios remain strong with Tier 1 capital at 14.6% and tangible common equity to tangible assets at 9.75%.
Capital ratios remain strong with Tier 1 capital ratio at 14.6% and tangible common equity to tangible assets at 9.75%, and tangible book value per share increased 12% year-over-year to $17.19.
Loan growth was strong at an annualized 6.4%, with production of $854 million and a robust pipeline of $921 million.
Net income increased 36% sequentially to $42.7 million or $0.50 per share, with adjusted net income up 39% to $44.5 million or $0.52 per share.
Net interest income grew 7% to $126.9 million, driven by loan growth and lower deposit costs.
Net interest income rose 7% to $126.9 million, driven by loan growth and lower deposit costs, with net interest margin expanding 10 basis points to 3.58%.
Net interest margin expanded 10 basis points to 3.58%, or 5 basis points excluding accretion on acquired loans.
Noninterest expense was $91.7 million, including $2.4 million in merger-related expenses, with an adjusted efficiency ratio improving to 55.4%.
Noninterest expense was $91.7 million, including $2.4 million merger-related expenses, with adjusted efficiency ratio improving from 59.5% to 55.4%.
Noninterest income increased 10% year-over-year to $24.5 million excluding securities activity, supported by treasury management, wealth, and insurance businesses.
Noninterest income increased 10% year-over-year to $24.5 million, supported by treasury management, wealth, and insurance businesses.
Return on assets improved to 1.08%, and return on tangible common equity rose to 12.8%.
Return on assets improved to 1.08%, return on tangible common equity to 12.8%, and the adjusted efficiency ratio improved to 55%.
Broadstone Net Lease reported adjusted funds from operations (AFFO) of $74.3 million or $0.38 per share for Q2 2025, representing 5.6% growth compared to Q2 2024.
Core general and administrative expenses totaled $6.9 million for the quarter and $14.3 million year-to-date, tracking in line with full year expectations of $30 million to $31 million.
Dividend declared at $0.29 per share payable on or before October 15, 2025.
Investment activity through Q2 2025 totaled approximately $229 million, with nearly 60% allocated to stabilized properties, funded by retained cash flow, disposition proceeds, and revolver.
Pro forma leverage ended the quarter at 5.2x net debt with over $800 million available on the revolving credit facility.
Weighted average initial cash cap rate on acquisitions was 7.2%, with lease terms averaging 12.4 years and annual rent increases of 2.8%.
Year-to-date bad debt totaled 45 basis points, reflecting rental recoveries and limited bad debt incurrence during the quarter.
Capital markets activity included a Fitch upgrade to BBB+ and a $450 million senior unsecured bond issuance at 5.25% coupon.
Cash same-store NOI growth for the quarter was 8.7%, driven by rental rate increases and contractual rent bumps, partially offset by lower average occupancy.
Guidance for full-year 2025 NAREIT FFO remains at a midpoint of $2.92 per share with a narrowed range of $2.88 to $2.96.
In-service occupancy at quarter end was 94.2%, down 110 basis points due to a known move-out and two developments entering service.
NAREIT funds from operations (FFO) were $0.76 per fully diluted share in 2Q 2025, up from $0.66 in 2Q 2024.
Overall cash rental rate increase for new and renewal leasing was 33%, or 38% excluding a large fixed-rate renewal.
Average base rent per leased square foot grew 5.3% year-over-year to $25.28.
Bad debt for the quarter was just under 1% of revenues, consistent with prior year and within forecasted range.
Debt-to-EBITDAre improved to 7.2x from 7.8x a year ago, with an expected year-end target of about 7x.
G&A and interest expenses were reduced by about 6% compared to the prior year.
Leasing spreads remained strong with straight-line leasing spreads of 17.9%, marking the 13th consecutive quarter above 17%.
Occupancy increased 100 basis points sequentially from Q1 to 93.9%.
Same-store NOI growth was 2.5% for the quarter and 3.9% for the 6 months, on track to meet the full-year target range of 3% to 4.5%.
Whitestone REIT delivered core FFO per share of $0.26 for Q2 2025 and $0.51 for the first 6 months, representing a 5.4% and 5.6% year-over-year increase respectively.
Dafinchi