Assets under management grew 2% in the quarter, reaching $171 billion at June 30, up $4 billion sequentially due to market performance.
Cash and equivalents were $172.2 million; net debt was $62.5 million or 0.2x EBITDA; gross debt-to-EBITDA remained at 0.7x.
Earnings per share as adjusted increased to $6.25 from $5.73 in the first quarter but decreased 4% year-over-year on lower average assets.
Employment expenses as adjusted decreased 11% sequentially to $97.2 million, reflecting seasonal expenses and lower variable incentive compensation.
ETFs had positive net flows and reached $3.7 billion in AUM with a 74% organic growth rate over the trailing 12 months.
Net income per share on a GAAP basis was $6.12, up from $4.05 in the first quarter due to seasonal items and fair value adjustments.
Operating margin improved to 31.3% from 27.6% sequentially, reflecting seasonal expense impacts.
Other operating expenses as adjusted were $32 million, a 2% sequential increase due to annual equity grants to the Board of Directors.
Total net outflows for the quarter were $3.9 billion, largely in equity strategies; fixed income, alternatives, and multi-assets had modest net outflows.
Total sales were $5.6 billion compared with $6.2 billion in the first quarter, with modest declines across products reflecting market disruption early in the quarter.
In Q2 2025, American Assets Trust reported FFO per diluted share of $0.52, slightly above expectations, with same-store cash NOI approximately flat for the quarter and up 1.4% year-to-date.
Liquidity at quarter-end was approximately $544 million, including $144 million cash and $400 million available on revolving credit line.
Mixed-use Waikiki Beach Walk NOI declined 5% year-over-year, with hotel component down approximately 15% due to lower occupancy and RevPAR amid softness in leisure demand.
Multifamily portfolio was approximately 94% leased, with blended rent increases of 6%, though facing competitive leasing environment and elevated operating costs.
Net debt-to-EBITDA ratio was 6.3x trailing 12 months and 6.6x quarter annualized; interest coverage ratio about 3.1x.
Net income attributable to common stockholders per share was $0.09 in Q2 2025.
Office portfolio ended Q2 82% leased, with same-store office cash NOI flat for the quarter and up over 2% year-to-date.
Retail portfolio was 98% leased with same-store cash NOI growth of 4.5%, driven by new and renewal leases and rent escalations.
Same-store multifamily NOI declined 3.9%, and same-store mixed-use NOI declined approximately 5%, primarily due to hotel performance.
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.
Dafinchi