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Sep 30, 2024
Portman Ridge Q3 2024 Earnings Report
Reported a decrease in net investment income and net asset value, while proactively managing its balance sheet and capital structure.
Key Takeaways
Portman Ridge Finance Corporation reported a net investment income of $0.63 per share and a net asset value of $20.36 per share for Q3 2024. The company continued its share repurchase program, buying back 33,429 shares, which was accretive to NAV by $0.01 per share. A fourth-quarter distribution of $0.69 per share was announced.
Total investment income was $15.2 million.
Net investment income was $5.8 million, or $0.63 per share.
Net asset value was $188.0 million, or $20.36 per share.
33,429 shares were repurchased at an aggregate cost of approximately $0.6 million.
Portman Ridge
Portman Ridge
Forward Guidance
Portman Ridge anticipates being active in the market and net deployers of capital, expecting to restore net investment income to normalized levels, supported by a fortified balance sheet from the amended JPM Credit Facility.
Positive Outlook
- Company upsized and termed out the JPM Credit Facility.
- Spread reduced by a full 30 basis points on the JPM Credit Facility.
- Refinanced the remaining $85.0 million of 2018-2 Secured Notes, resulting in further net spread savings of approximately 28 basis points.
- Share repurchases during the third quarter of 2024 under Rule 10b-5 stock repurchase program.
- Expects to be active in the market and net deployers of the Company’s capital which we believe will restore net investment income back in line with more normalized levels.
Challenges Ahead
- Third quarter earnings were temporarily impacted by prudent cash and portfolio management initiatives.
- Current economic uncertainty.
- Dynamic interest rate environment.
- Non-accruals on debt investments, as of September 30, 2024, were nine debt investments representing 1.6% and 4.5% of the Company’s investment portfolio at fair value and amortized cost, respectively.
- Decrease in total investment income compared to the same quarter last year.