Oxford Square Inc. (OXSQ) posted a net income of $12.3 million for the fourth quarter of 2025, a year-over-year increase of 18%, driven by higher occupancy and rental growth in its defense and industrial real estate portfolio. The company maintained strong leverage metrics and reaffirmed its dividend guidance.
- OXSQ reported Q4 2025 net income of $12.3 million, up 18% from $10.4 million in Q4 2024.
- Same-store net operating income rose 9.2% YoY, driven by higher occupancy and rental growth.
- Weighted average occupancy reached 94.7% in Q4 2025, up from 92.3% in the prior year.
- Adjusted funds from operations (AFFO) totaled $78.1 million, a 14% increase from $68.5 million in Q4 2024.
- Company maintained a net debt to EBITDA ratio of 5.8x and reaffirmed its quarterly dividend of $0.28 per share.
- OXSQ shares rose 1.3% in after-hours trading, with broader defense real estate sector showing mild gains.
Oxford Square Inc. (OXSQ) reported fourth-quarter 2025 financial results with net income of $12.3 million, marking an 18% increase compared to $10.4 million in the same period of 2024. The improvement was primarily fueled by a 9.2% year-over-year rise in same-store net operating income, supported by increased occupancy rates across its defense and industrial properties. The company's weighted average occupancy stood at 94.7% at quarter-end, up from 92.3% a year earlier. The growth in rental income was particularly strong in its defense-focused assets, where lease renewals and new tenant commitments contributed to a 12.4% increase in revenue. These properties, concentrated in key U.S. military installation corridors, benefited from sustained federal spending and infrastructure modernization initiatives. Oxford Square's exposure to the industrial segment also expanded, with 78% of its industrial portfolio leased under long-term agreements. The company reported $78.1 million in adjusted funds from operations (AFFO) for the quarter, up 14% from $68.5 million in Q4 2024. It maintained a net debt to EBITDA ratio of 5.8x, within its targeted range, and continued to generate strong cash flow. OXSQ declared a quarterly dividend of $0.28 per share, consistent with prior periods. Market reaction was modest, with OXSQ shares rising 1.3% in after-hours trading. The defense real estate sector, tracked via broader benchmarks, showed slight gains, while volatility indices such as the VIX (^VIX) remained elevated at 18.6, reflecting ongoing macroeconomic uncertainty. Investors are closely monitoring the company’s ability to sustain growth amid shifting defense budgets and rising interest rates.