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Dec 31, 2023

Ares Capital Q4 2023 Earnings Report

Ares Capital reported strong Q4 2023 financial results, with record Core EPS and net asset value per share.

Key Takeaways

Ares Capital Corporation announced its Q4 2023 financial results, featuring a GAAP net income of $413 million or $0.72 per share and Core EPS of $0.63. The company's portfolio investments at fair value reached $22.874 billion, and it declared a first quarter 2024 dividend of $0.48 per share.

Ares Capital reported a GAAP net income of $413 million, or $0.72 per share for Q4 2023.

Core EPS for Q4 2023 was $0.63.

The company's portfolio investments at fair value totaled $22.874 billion as of December 31, 2023.

Ares Capital declared a first quarter 2024 dividend of $0.48 per share.

Total Revenue
$738M
Previous year: $640M
+15.3%
EPS
$0.63
Previous year: $0.63
+0.0%
Debt/Equity Ratio
1.07
Previous year: 1.29
-17.1%
Cash and Equivalents
$535M
Previous year: $303M
+76.6%
Free Cash Flow
$302M
Total Assets
$23.8B
Previous year: $22.4B
+6.3%

Ares Capital

Ares Capital

Forward Guidance

Ares Capital believes it is heading into 2024 from a position of strength and will seek to build upon its 14-year track record of paying a stable regular quarterly dividend for its shareholders. With over $6 billion of available capital after considering the January notes issuance, the company remains well positioned to invest opportunistically in a more active market environment.

Positive Outlook

  • Company is in a strong position heading into 2024.
  • Ares Capital aims to build upon its track record of stable quarterly dividends.
  • Over $6 billion of available capital provides flexibility for investments.
  • Company is well positioned to invest opportunistically in a more active market.
  • Raised $1.3 billion of unsecured notes on market leading terms, further strengthening liquidity.

Challenges Ahead

  • Net income can vary substantially from period to period due to various factors.
  • Quarterly comparisons of net income may not be meaningful.
  • Ares Capital may seek to sell new investment commitments, but there is no assurance they will be able to do so.
  • The consummation of any investments in backlog and pipeline depends on satisfactory due diligence and acceptance of terms.
  • Ares Capital cannot assure that it will make any of these investments or sell any portion of these investments.