- Adjusted EBITDAre decreased by $7.7 million year-over-year to $163.8 million, impacted by an $8.8 million increase in interest expense and lower hotel returns.
- Hotel portfolio generated adjusted hotel EBITDA of $73 million, an 11.3% decline year-over-year but towards the high end of guidance.
- Net lease portfolio remains stable with 742 properties, 97% leased, $387 million in annual minimum rents, and a 2.04x rent coverage ratio.
- Normalized FFO for Q2 2025 was $57.6 million or $0.35 per share, down from $0.45 per share in the prior year quarter.
- RevPAR increased 40 basis points year-over-year, outperforming the industry by 90 basis points, driven by occupancy and ADR gains.
- The 84 hotels planned for retention showed a 1.5% RevPAR increase but an 11.7% decrease in adjusted hotel EBITDA due to elevated labor costs and renovation disruptions.
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- Agency RMBS repo markets remained stable with repurchase spreads around SOFR plus 20 basis points.
- Comprehensive loss for the quarter was $221.8 million or $2.13 per share including the accrual, and $21.9 million or $0.21 per share excluding it.
- For the first half of 2025, total economic return on book value was negative 10.3% including the accrual and positive 2.9% excluding it.
- Including the accrual, book value decreased to $12.14 per share.
- Mark-to-market gains and losses were lower by $93.4 million due to unfavorable market movements on MSR, swaps, TBAs, and futures, partially offset by positive movements on Agency RMBS.
- MSR financing included $1.8 billion outstanding borrowings across 5 lenders with $837 million unused capacity.
- Net interest and servicing income increased by $3.1 million driven by Agency RMBS portfolio growth and higher float income on MSR, partially offset by lower servicing fee income and higher financing costs.
- The company issued $115 million of 9.38% senior notes due 2030 to refinance 6.25% senior notes due 2026.
- The company took a loss contingency accrual of $199.9 million or $1.92 per share related to ongoing litigation from the termination of its management agreement with PRCM Advisers.
- Two reported a total economic return of negative 14.5% for Q2 2025 including a loss contingency accrual of $1.92 per share, and negative 1.4% excluding the accrual.
- Adjusted EBITDAre for Q2 was $73 million and adjusted FFO was $0.28 per diluted share.
- Net leverage stood at 3.5x trailing earnings or 4.8x including preferred equity.
- Second quarter RevPAR increased 2.2% year-over-year, with total RevPAR growth of 3.7%.
- Sold Hilton New Orleans St. Charles at a mid-8% cap rate on 2024 earnings and redeployed proceeds into $100 million of share repurchases.
- Strong ancillary spend offset lighter rooms revenue growth, mitigating margin pressure.
- Total liquidity exceeded $600 million, including cash, equivalents, and credit facility capacity.
- Adjusted compensation ratio improved to 65.4%, down 60 basis points year-over-year, while adjusted noncompensation expenses rose 9% due to technology and occupancy costs.
- Adjusted operating income was $157 million, a 37% increase versus Q2 2024, with adjusted EPS of $2.42, up 34% year-over-year.
- Advisory fees increased 23% year-over-year to $698 million, a record for the quarter.
- Asset Management and Administration Fees grew 3% to $21 million, driven by market appreciation and net inflows.
- Cash and investment securities totaled over $1.7 billion as of June 30, with positive cash flow and $532 million returned to shareholders in the first half through buybacks and dividends.
- Evercore delivered adjusted net revenues of $839 million in Q2 2025, up nearly 21% year-over-year, marking record revenues for both the quarter and first half of the year.
- GAAP net revenues, operating income, and EPS were $834 million, $150 million, and $2.36 per share respectively in Q2 2025.
- Share repurchases totaled approximately 1.7 million shares year-to-date at an average price of $258.5 per share, fully offsetting dilution from RSU grants.
- Underwriting revenues rose 4% to $32 million, commissions and related revenue increased 10% to $58 million.
- BXP reported funds from operations (FFO) of $1.71 per share for Q2 2025, beating the midpoint of guidance by $0.05 and consensus by $0.04, driven by improved operations across the portfolio.
- BXP's total portfolio occupancy ended Q2 at 86.4%, a decline of 50 basis points, impacted by lease expirations and early terminations, partially offset by improvements at other properties.
- Development portfolio lease percentage increased by 500 basis points to 67% in Q2.
- Leasing volume for Q2 was over 1.1 million square feet, with total leasing in 2025 reaching 2.2 million square feet, 18% higher than the prior four quarters.
- Lower expenses were due to reduced real estate taxes from negotiated assessed value reductions and lower G&A expenses from capitalized wages and professional fee savings.
- Outperformance contributors included $0.04 from portfolio operations, $0.01 from earlier-than-anticipated revenue recognition, $0.01 from higher service income primarily in Boston and New York, and $0.02 from lower operating expenses.
- The total portfolio percentage leased was 89.1%, a slight decline of 30 basis points, with a growing gap between leased and occupied space now at 270 basis points.
Dafinchi