AFFO per share was $1.28 for the second quarter, representing a 9.4% increase year-over-year driven by accretive investment activity and sector-leading rent growth.
Comprehensive same-store rent growth was 4% year-over-year, reflecting rent collections, recovery of past due rent, leasing activity, and vacancies.
Contractual same-store rent growth for Q2 was 2.3% year-over-year, with CPI-linked escalations averaging 2.6% and fixed rent increases averaging 2.1%.
Dividend declared at $0.90 per share for Q2, a 3.4% increase over prior year, with a payout ratio of approximately 73% of AFFO per share.
G&A expenses are expected between $99 million and $102 million for the full year, with non-reimbursed property expenses between $50 million and $54 million.
Key leverage metrics remain within target ranges: debt to gross assets at 43.2% and net debt to adjusted EBITDA at 5.8x.
Liquidity at quarter end was about $1.7 billion, with $660 million drawn on the revolver, partially paid down after a $400 million bond issuance.
Nonoperating income is expected around $20 million for the full year, mainly from dividends on equity stakes.
Operating property NOI for 2025 is estimated between $55 million and $60 million, including hotel and student housing properties.
Tax expense on an AFFO basis is expected between $42 million and $46 million, primarily foreign taxes on European assets.
Brokerage segment revenue growth was 17%, organic growth 5.3%, adjusted EBITDAC margin expanded 334 basis points to 36.4%.
Completed 9 mergers in Q2 representing $290 million of estimated annualized revenue.
For combined Brokerage and Risk Management segments, posted 16% revenue growth, 5.4% organic growth, net earnings margin of 17.3%, adjusted EBITDAC margin of 34.5% up 307 basis points YoY, adjusted EBITDAC growth of 26%.
GAAP earnings per share of $2.11 and adjusted earnings per share of $2.95.
Reinsurance, wholesale and specialty businesses delivered nearly 7% organic growth, including 5% from Gallagher Re and over 7% from wholesale and specialty.
Retail operations delivered 4% organic growth; U.S. organic 5%, international operations around 3%.
Risk Management segment revenue growth was 9%, organic growth 6.2%, adjusted EBITDAC margin was 21%, better than June expectations.
Capital ratios remain strong with total risk-based capital ratio at 16.25% and tangible common equity ratio at 9.95%.
Net income and EPS grew 18% quarter-over-quarter excluding a $8.5 million loss on securities sales and related tax impact.
Net interest income increased to $25.9 million, driven by higher average earning assets and a 7 basis point increase in net interest margin.
Net interest margin expansion was due to a 1 basis point decrease in cost of deposits and a 6 basis point increase in average yield on earning assets.
Noninterest income was negative due to the securities portfolio loss, but other noninterest income areas were consistent with prior quarter.
No provision for credit losses was required due to stable loan portfolio and high reserves; allowance for credit losses remained at 1.44% of total loans.
Pretax pre-provision net income increased 15% compared to prior quarter and 85% compared to prior year-to-date.
Repurchased $2.2 million of shares during the quarter within a limited window.
Total deposits declined in Q2 due to normal client activity but have grown year-to-date; more than 70% of Q2 deposit outflows recouped in July.
Dafinchi