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Sep 30, 2025
PennantPark Floating Rate Q4 2025 Earnings Report
PennantPark Floating Rate Capital Ltd. announced its financial results for the fourth quarter and fiscal year ended September 30, 2025.
Key Takeaways
PennantPark Floating Rate Capital Ltd. reported a net investment income of $27.5 million for the fourth quarter of 2025, with a GAAP net asset value per share of $10.83. The company's investment portfolio totaled $2,773.3 million, reflecting growth and a stable performance in its core middle market investments.
Net investment income for the quarter was $27.5 million, or $0.28 per share.
The investment portfolio grew to $2,773.3 million, with a weighted average yield on debt investments of 10.2%.
GAAP net asset value per share was $10.83, experiencing a quarterly change of (1.2)%.
Distributions declared per share for the quarter were $0.31.
Revenue by Segment
Forward Guidance
The company anticipates continued growth in net investment income, supported by the new joint venture, and expects its dividend policy to remain stable. The recent acquisition of high-quality assets is projected to be accretive to Core NII.
Positive Outlook
- Targeting growth in Net Investment Income (NII) with the ramp-up of the new joint venture.
- Dividend policy expected to remain stable, supported by growing NII and spillover income.
- Acquisition of approximately $250 million in high-quality assets projected to be accretive to Core NII by one to two cents per share, quarterly.
- PSSL II, a new joint venture, is expected to grow its portfolio to $500 million initially.
- Reduced debt to equity ratio to 1.41x, which is at the lower end of the target range of 1.4x-1.6x.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- Market conditions and their impact on investment values remain a potential risk.
- The company's ability to achieve targeted growth in NII is dependent on successful execution of its joint venture strategy.
Historical Earnings Impact
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