The Hamilton Company (NEN) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 rose 6.0% year-over-year to $21.0M, with net income up 1.9% to $4.15M.

• Six-month revenue increased 5.0% to $41.9M, and net income grew 5.4% to $7.95M compared to 2024.

• Major property acquisition: Hill Estates and two commercial properties in Belmont for $175M, financed by treasury bill sales and new debt.

• Residential vacancy rate increased to 2.4% from 1.5% year-over-year; rent growth is slowing.

Financial highlights

• Q2 2025 rental income: $21.0M (up $1.2M, 6.0% YoY); six-month rental income: $41.5M (up $2.0M, 5.0% YoY).

• Q2 net income: $4.15M (up $77K, 1.9% YoY); six-month net income: $7.95M (up $409K, 5.4% YoY).

• Operating expenses for Q2: $14.2M (up 4.9% YoY); six-month operating expenses: $28.6M (up 3.5% YoY).

• Interest expense for Q2: $4.1M (up 6.1% YoY); six-month interest expense: $7.9M (up 1.5% YoY).

• Cash and cash equivalents at June 30, 2025: $16.7M.

Outlook and guidance

• Management expects a rental market with slowing rent growth for the remainder of 2025.

• Cash from operations is expected to be sufficient for current operations, distributions, and debt payments.

• Mill Street Development (72 units) expected to complete in Q4 2025, with total investment of ~$33M.