[8-K] Winchester Bancorp, Inc. Reports Material Event

Rhea-AI Filing Summary

W. P. Carey (WPC) Q2 2025 10-Q highlights:

• Revenue growth: Q2 total revenue rose 10.6 % YoY to $430.8 m; 1H revenue up 7.9 % to $840.6 m.
• Earnings pressure: Q2 net income attributable to WPC fell 64 % YoY to $51.2 m (EPS $0.23 vs $0.65) as $148.8 m of “Other losses” and higher interest expense offset topline gains. 1H EPS declined to $0.80 (-41 %).
• Portfolio expansion: 81 property acquisitions closed YTD for $542.7 m; portfolio now 1,600 net-lease assets (178 m sq ft) plus 72 operating properties. Occupancy 98.2 % with 12.1-year WA lease term.
• Dispositions & gains: Sold 17 net-lease assets and 10 self-storage assets; realized $52.8 m Q2 gain on sale ($96.6 m YTD).
• Balance sheet: Real estate investments up to $15.34 bn (+5.2 % YTD). Debt increased to $8.64 bn (net revolver balance $660.9 m) while cash fell to $244.8 m (-62 % YTD). Net debt/total assets ≈48 %.
• Capital activity: Drew $1.47 bn on revolver, repaid $865 m; repaid $450 m senior notes; issued no new notes. Declared quarterly dividend of $0.90/sh (annualized $3.60, 7.4 % yield*).
• Cash flow: Operating cash flow $677.2 m vs $1.26 bn prior-year period; decline driven by lower realized gains and higher working-capital uses.
• Equity: Book value slipped 2.5 % to $8.21 bn; AOCI loss deepened to $-264.8 m on derivative marks & FX.

*Yield based on 7/25/25 close.

Positive

• Revenue up 10.6 % YoY driven by CPI-linked rent escalations and acquisitions.
• Portfolio occupancy 98.2 % with 12.1-year WA lease term provides long-term cash-flow visibility.
• $52.8 m Q2 gain on asset sales demonstrates ability to recycle capital above book value.
• Continued dividend growth—declared $0.90/sh, up from $0.87 last year.

Negative

• EPS declined 64 % YoY due to $149 m of other losses and higher interest expense.
• Cash balance fell 62 % YTD while debt increased $597 m, weakening liquidity.
• Interest expense up 10 % YoY as variable-rate borrowings grow.
• Impairment charges and hedge losses contributed to $14.1 m YTD OCI loss, signalling valuation pressure.

Insights

REIT Equity Analyst

TL;DR: Solid rent growth and high occupancy, but earnings compressed by mark-to-market losses and rising leverage.

Core leasing metrics remain strong: 98 % occupancy, CPI-linked rents, and 12-year WA lease term underpin predictable cash flows. Net-lease revenue climbed ≈11 % on acquisitions and contractual bumps. However, $149 m of "Other losses" (likely unrealized hedge/FX marks) plus $72 m interest expense cut EPS to $0.23. Cash balance dropped $396 m YTD as $543 m acquisitions and $391 m dividends outpaced sale proceeds and credit-facility draws, pushing net debt higher and revolver usage to $661 m. Leverage sits near mid-5× net-debt/EBITDA—a manageable level but rising rate exposure bears monitoring. Management continues recycling: $309 m asset sales at attractive cap rates generated $53 m gains. Dividend coverage (payout ≈112 % of FFO proxy) looks tight; sustaining hikes will require stabilizing non-cash losses and restoring FFO growth.

Portfolio Risk Manager

TL;DR: Higher debt, shrinking liquidity, and volatility in non-cash items temper otherwise stable real-estate fundamentals.

Debt rose $597 m YTD while cash tumbled, taking quick-ratio below 0.1×. Variable-rate borrowings (revolver + term loans) now exceed $1.9 bn, exposing WPC to SOFR/EURIBOR moves despite hedges—note $32 m OCI hedge losses this quarter. Interest coverage slid to ~3×. Impairments and OCI swings signal valuation sensitivity, though underlying property NOI is intact. The 7 %+ dividend yield remains attractive but hinges on capital-market access; management’s ability to term out revolver balances and trim non-core assets will be critical in H2.

0002047235false00020472352025-07-302025-07-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2025

Winchester Bancorp, Inc.

(Exact name of Registrant as Specified in Its Charter)

Maryland			001-42627	33-3361275
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
661 Main Street
Winchester, Massachusetts				01890
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: (781) 729-2130

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par vale $0.01 per share		WSBK		The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 30, 2025, Winchester Bancorp, Inc., the holding company for Winchester Savings Bank, issued a press release reporting its financial results for the year ended June 30, 2025.

A copy of the press release announcing the results is included as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed "filed" for purposes of section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description

99.1 Press Release dated July 30, 2025

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Winchester Bancorp, Inc.
Date: July 30, 2025		By:	/s/ John A. Carroll
			John A. Carroll
			President and Chief Executive Officer

FAQ

How much did WPC's Q2 2025 revenue grow year over year?

Total revenue increased 10.6 % to $430.8 million from $389.7 million.

What was W. P. Carey's Q2 2025 EPS?

Diluted EPS was $0.23, down from $0.65 in Q2 2024.

What dividend did WPC declare for Q2 2025?

The board declared a quarterly cash dividend of $0.90 per share, payable July 2025.

What is WPC's portfolio occupancy and lease term?

Occupancy stands at 98.2 % with a weighted-average remaining lease term of 12.1 years.

How much debt does WPC currently have?

Total debt is $8.64 billion, up from $8.04 billion at December 31 2024.

What were the key acquisitions in the first half of 2025?

WPC acquired 81 properties for $543 million, including large industrial portfolios in the US and Europe.