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Sep 30, 2022
Portman Ridge Q3 2022 Earnings Report
Reported strong performance with elevated total investment income, core investment income, and net investment income quarter-over-quarter.
Key Takeaways
Portman Ridge Finance Corporation announced strong financial results for the third quarter ended September 30, 2022. Total investment income, core investment income and net investment income all increased compared to the second quarter of 2022.
Total investment income was $19.0 million, with $15.4 million from interest income from debt securities.
Core investment income, excluding purchase price accounting impact, was $17.6 million.
Net investment income was $8.4 million ($0.87 per share).
Net asset value was $251.6 million ($26.18 per share), with the decline driven by mark-to-market movements.
Forward Guidance
Portman Ridge expects strong performance to continue in future quarters due to reduced cost of capital and the continued benefit of rising rates, allowing the company to increase its quarterly dividend to $0.67 per share.
Positive Outlook
- Rising rates generating incremental revenue from investments.
- Reduced cost of capital from amended and extended credit facility with JPMorgan Chase.
- Well-positioned to take advantage of opportunities arising from the current market environment.
- Continuing to be selective and resourceful in investment decisions.
- Continuing to be prudent with underwriting new investments given the current economic uncertainty.
Challenges Ahead
- Operating under difficult market conditions.
- Challenging economic environment.
- Rising interest rates.
- Market volatility.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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