- Sold 8 hotels for $46 million in Q2, part of a plan to sell 122 hotels totaling nearly $966 million in 2025.
- Completed due diligence and received deposits for 111 of 114 Sonesta hotels, with a sales price of $900 million.
- Remaining 3 hotels under purchase agreement, expected to close before year-end.
- Focus on divesting select hotels to shift towards a predominantly net lease REIT, with a target of over 70% of pro forma EBITDA from net lease assets.
- Dispositions are part of strategic efforts to improve asset quality and EBITDA growth potential.
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- Transformational renovations at key properties in South Florida, Hawaii, and New York impacted Q2 RevPAR, with ramp-up expected in Q4.
- Repositioning efforts include high-occupancy assets and high-value conversions, such as Nashville, Houston Medical Center, and Pittsburgh.
- Renovations and closures, like the Austin Convention Center, caused temporary declines but are expected to support future growth.
- Management highlighted the importance of asset upgrades in driving operational upside and long-term value.
- Veris Residential has executed or completed approximately $450 million of non-strategic asset sales year-to-date, surpassing the initial target of $300-$500 million by 2026.
- Recent sales include Signature Place in New Jersey for $85 million and 145 Front Street in Worcester for $122 million, both at a cap rate of 5.1%.
- Additional binding contracts for $180 million in sales are expected to close soon, supporting the goal to reduce leverage to below 9x by 2026.
- The asset sales are primarily aimed at deleveraging the balance sheet and reducing debt costs, with a focus on smaller assets and land.
- Adjusted EBITDA was $117 million, $6.5 million above midpoint.
- Adjusted FFO was $0.65 per share, $0.06 ahead of midpoint.
- Business interruption proceeds from LaPlaya insurance claims were $1.5 million above outlook, totaling $3.2 million.
- Ended Q2 with $267 million cash on hand, $49 million increase from last quarter; $640 million revolver availability.
- Energy costs decreased 2.1% due to efficiency efforts.
- Excluding Los Angeles and adjusting for last year's tax credits, same-property hotel EBITDA increased by $2.5 million year-over-year.
- Hotel expenses excluding fixed costs rose 1.7% year-over-year; expenses per occupied room declined 0.8%.
- Invested $21 million in portfolio during the quarter; on track for $65 million to $75 million in 2025.
- LaPlaya resort fully restored; full year BI income forecast increased to $11.5 million from $8.5 million.
- Los Angeles caused a $2.2 million EBITDA headwind, about $700,000 more than anticipated.
- Newport Harbor Island Resort outperformed expectations with a $1.8 million EBITDA beat.
- Out-of-room revenues at resorts rose 3.3%, led by food and beverage growth of 2.5%.
- Portland RevPAR climbed 10.4%, San Diego urban hotels posted 8.6% RevPAR growth.
- Property insurance renewal reduced premiums by roughly 10% with a 13% rate drop and 4% increase in insurable values.
- Resort total RevPAR increased 0.6% with a 1-point occupancy gain offsetting a nearly 3% ADR decline.
- Same-property hotel EBITDA totaled $115.8 million for the quarter, $1.8 million ahead of midpoint.
- Same-property total property RevPAR grew 1.3% year-over-year; excluding Los Angeles, RevPAR rose 2.7%.
- Same-property total revenues grew 1.3%, 2.7% excluding Los Angeles.
- San Francisco led with a 15.2% RevPAR increase, driven by occupancy gains and strong business and leisure demand.
- Urban portfolio RevPAR increased 1.7% overall and 4.1% excluding Los Angeles.
- Weighted average interest cost is 4.2%, with 90% to 96% of debt fixed.
- Sabra decided to break up its large Holiday portfolio into smaller pieces to improve performance and diversify tenant risk.
- The company has been building relationships with new operators like Sunshine to replace underperforming tenants.
- Management emphasized the importance of reducing concentration risk by diversifying operator relationships across the portfolio.
- The transition process involved selecting trusted operators through a proposal and bidding process, aiming for operational stability.
- Sabra's strategic focus is on maintaining high-quality assets and avoiding complex JV or mezzanine debt structures.
- The portfolio restructuring is expected to enhance operational performance and tenant diversification over the coming quarters.
- Commercial lending loan portfolio grew by $946 million to $15.5 billion, with $1.9 billion in loan originations and $1.3 billion funded during the quarter.
- Liquidity stood at $1.1 billion post-quarter with $9.3 billion of credit availability and an adjusted debt to undepreciated equity ratio of 2.5x.
- Starwood Property Trust reported distributable earnings (DE) of $151 million or $0.43 per share for Q2 2025, with GAAP net income at $130 million or $0.38 per share.
- The company committed $3.2 billion towards new investments in the quarter, including $1.9 billion in commercial lending and $700 million in infrastructure lending, surpassing the full year 2024 capital deployment with $5.5 billion in the first half of 2025.
- The infrastructure lending portfolio reached a record $3.1 billion with $642 million funded in the quarter and repayments of $288 million.
- The Property segment contributed $17 million of DE, driven by the Woodstar affordable multifamily portfolio with partial impact from new HUD rent increases.
- Jim Taylor highlighted the fundamental and accelerating transformation of the portfolio, emphasizing leasing, reinvestment, and capital recycling as key drivers of growth.
- The company is executing a robust value-add plan, with a pipeline of $370 million underway and several hundred million identified for future projects.
- Recent projects include The Davis Collection, BarnPlazo, Wynwood Village, and LaCenterra, which are expected to generate high returns and drive traffic and occupancy growth.
- Ancillary spending remained strong with F&B revenue up 4%, banquet revenue up 1%, and other revenue (including golf and spa) up 13%.
- Business interruption proceeds of $9 million related to Hurricanes Helene and Milton benefited Q2 results, compared to $30 million in Q2 2024 from Hurricane Ian and Maui wildfires.
- Comparable hotel EBITDA margin declined 120 basis points to 31%, impacted by the absence of prior year business interruption proceeds.
- Comparable hotel total RevPAR improved 4.2% year-over-year, driven by stronger transient demand, higher ADR, and increased ancillary spend.
- In Q2 2025, Host Hotels & Resorts delivered adjusted EBITDAre of $496 million, a 3.1% increase year-over-year, and adjusted FFO per share of $0.58, up 1.8%.
- The Westin Cincinnati was sold for $60 million at a 14.3x trailing EBITDA multiple, and 6.7 million shares were repurchased for $105 million in Q2.
- Transient revenue grew 7%, with Maui accounting for approximately 40% of this growth, while group room revenue decreased 5% due to calendar shifts and renovation disruptions.
- Sold $175 million of self-storage properties at sub-6% cap rate, with remaining sales of 17 properties under contract for August closings.
- Achieved a spread of over 100 basis points between asset sales and new investments, with potential to reach 150 basis points by year-end.
- Reinvested proceeds into new investments with initial cap rates averaging mid-7s, primarily in industrial and warehouse sectors, supporting high-yield, long-term leases.
- SHOP communities in the U.S. delivered 18% same-store cash NOI growth in Q2, adjusted for a prior year tax refund.
- Revenue increased over 8% for the entire same-store SHOP portfolio.
- Occupancy improved by 60 basis points sequentially in June, with move-ins reaching their second-highest level in over 5 years.
- Management emphasized the strong momentum in occupancy and move-in activity, with continued growth expected into July.
- Liquidity remained strong at $4.7 billion as of June 30, including a revolving credit facility upsize and available equity proceeds.
- Net debt-to-EBITDA improved to 5.6x, a 40 basis point improvement since the start of the year.
- Outpatient medical and research portfolio reported 1.7% same-store cash NOI growth, with outpatient medical up 2.2%.
- Senior housing investments year-to-date totaled $1.1 billion, with $3 billion closed since the beginning of last year.
- SHOP same-store portfolio delivered 8.2% revenue growth and 13.3% NOI growth, with U.S. SHOP NOI up 18% after adjusting for a prior year tax refund.
- Total company same-store cash net operating income (NOI) increased 7%, led by SHOP increasing over 13%.
- Ventas reported strong earnings growth with normalized FFO per share growing 9% year-over-year in Q2 2025.
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