Dafinchi AI

Service Properties Trust

SVC

Financial Services

1w

Progress on Hotel Dispositions and Portfolio Transformation

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.

Brandywine Realty Trust

BDN

Financial Services

3w

Financial Performance Summary

Brandywine Realty Trust reported a second quarter net loss of $89 million or $0.51 per share, including $63.4 million in impairments in the Austin portfolio.
Capital ratio improved to 4.1%, below the 2025 business plan range, due to capital control and construction efficiencies.
Deferred tenant improvement costs recognized were $5.5 million or $0.03 per share in CAD ratio; accrued but unpaid preferred dividends were $3.8 million or $0.02 per share.
Development projects incurred $0.14 per share of negative carry, including $0.10 per share in noncash preferred charges.
FFO contribution from unconsolidated joint ventures was negative $5.8 million, impacted by higher concessions at Solaris House during lease-up.
FFO for the quarter was $26.1 million or $0.15 per diluted share, meeting consensus estimates.
Interest expense was $0.5 million less than forecast due to capitalized interest.
Mark-to-market was 2.1% on a GAAP basis and negative on a cash basis, with increased guidance ranges based on executed leases.
Second quarter occupancy was 88.6% with 91.1% leased; Philadelphia occupancy was 93.5% and Austin occupancy improved due to asset sales.

Two Harbors Investment Corp.

TWO

Financial Services

2w

Financial Performance Summary

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.

Veris Residential, Inc.

VRE

Financial Services

3w

Financial Performance Summary

Controllable expenses decreased 3.7% year-over-year and were flat year-to-date, driven by lower marketing, administrative, and repairs and maintenance costs.
Net debt-to-EBITDA was 11.3x trailing 12 months, not reflecting recent asset sales and contracts.
Net income available to common shareholders was $0.12 per fully diluted share in Q2 versus $0.03 prior year and a net loss of $0.12 in Q1.
Non-controllable expenses were down 3.2% year-over-year and 2.6% year-to-date due to lower insurance and real estate tax expenses.
Same Store NOI grew 5.6% in the quarter and 4.4% year-to-date.
Same Store rental revenue was up 2.5% for the quarter, or 3.8% excluding Liberty Towers and other income recognized last year.
Second quarter Core FFO was $0.17 per share, up $0.01 from the first quarter, including $0.01 of nonrecurring other income and property management expense savings.
Weighted average effective interest rate was 4.86%, a reduction of over 20 basis points prior to the credit facility amendment.
Year-to-date Core FFO was $0.33 per share versus $0.32 last year.

Park Hotels & Resorts Inc.

PK

Financial Services

2w

Financial Performance Summary

Adjusted EBITDA for the quarter was $183 million and adjusted FFO per share was $0.64, both exceeding expectations.
July preliminary RevPAR declined approximately 4%, including renovation disruption at Royal Palm South Beach.
Q2 RevPAR was relatively flat year-over-year excluding Royal Palms South Beach, which suspended operations for renovation.
Q3 RevPAR is expected to decline by approximately 4% to 5%, with group pace down 14%, the weakest quarter of the year.
Q4 RevPAR growth is expected to reaccelerate to 3% to 5%, supported by an 18% increase in group revenue pace.
The sale of Hyatt Centric Fisherman's Wharf for $80 million at a 64x 2024 EBITDA multiple demonstrated strong underlying real estate value.
Total expense growth was just 40 basis points for the quarter or 1% excluding Royal Palm South Beach, marking the second consecutive quarter with expense growth of approximately 1% or less.
Total hotel revenues for the quarter were $645 million and hotel adjusted EBITDA was $191 million, with an adjusted EBITDA margin of 29.6%.

Essential Properties Realty Trust, Inc.

EPRT

Financial Services

3w

Financial Performance Summary

AFFO per share increased 7% year-over-year to $0.46, with total AFFO up 21% to $93 million.
Cash G&A was $7.2 million, representing 5.2% of total revenue, down from 5.6% a year ago.
Declared a cash dividend of $0.30 per share, representing a 65% AFFO payout ratio.
Diluted share count was 199.6 million, including 0.6 million shares from unsettled forward equity.
General & Administrative expenses rose to $10.7 million from $8.7 million in Q2 2024, mainly due to increased compensation.
Income-producing gross assets reached $6.6 billion at quarter end.
In Q2 2025, Essential Properties invested $334 million at a weighted average cash yield of 7.9% and a GAAP yield of 9.7%.
Pro forma net debt to annualized adjusted EBITDAre was 3.5x at quarter end.
Retained free cash flow after dividends reached $34.4 million for the quarter, over $130 million annualized.

Essential Properties Realty Trust, Inc.

EPRT

Financial Services

3w

Focus on Middle Market Sale-Leasebacks Amid Volatile Macroeconomic Environment

The company continued to source attractive investment opportunities in a volatile macroeconomic backdrop, emphasizing middle market sale leasebacks with growing operators.
88% of investments ($334 million) were supported by existing relationships, highlighting the importance of recurring tenant relationships.
Management highlighted the resilience of portfolio performance, with healthy tenant credit trends and rent performance, ahead of budgeted credit losses.

EastGroup Properties, Inc.

EGP

Financial Services

3w

Financial Performance Summary

Cash same-store net operating income (NOI) rose 6.4% for the quarter despite lower occupancy.
Debt to total market capitalization was 14.2%, unadjusted debt-to-EBITDA ratio was 3.0x, and interest and fixed charge coverage increased to 16x.
FFO per share for Q2 met the high end of guidance range and increased from $2.05 in the prior year quarter.
Funds from operations (FFO) were $2.21 per share in Q2 2025, up 7.8% year-over-year excluding involuntary conversions.
Quarter-end leasing was 97.1% with occupancy at 96%, and average quarterly occupancy was 95.9%, down 110 basis points from Q2 2024.
Quarterly re-leasing spreads were 44% GAAP and 30% cash; year-to-date spreads were similar at 46% GAAP and 31% cash.
Tenant collections remain healthy with uncollectible rents estimated at 35 to 45 basis points of revenues, slightly better than historic run rate.
Top 10 tenants accounted for 6.9% of rents, down 90 basis points from last year, reflecting increased tenant and geographic diversification.