Hercules Capital Q2 2022 Earnings Report
Key Takeaways
Hercules Capital reported a strong Q2 2022, marked by record gross debt and equity commitments of $1.04 billion and total investment income increasing to $72.1 million. The company increased its quarterly base distribution to $0.35 per share and maintained a strong balance sheet through various capital market transactions.
Achieved record Q2 total gross debt and equity commitments of $1.04 billion.
Net Investment Income (NII) reached $40.1 million, or $0.32 per share, an 8.6% year-over-year increase.
Total Investment Income was $72.1 million, a 3.7% year-over-year increase.
Available liquidity stood at $779.7 million, subject to existing terms and covenants.
Hercules Capital
Hercules Capital
Forward Guidance
Hercules expects the originations environment to remain attractive and drive strong growth of its portfolio of interest generating assets, which produced record core income of more than $70 million in Q2. The growing debt investment portfolio and rising interest rate environment also enables them to increase their quarterly base distribution to $0.35 per share and supports their ability to grow their core income and NII over the remainder of the year assuming the market remains favorable.
Positive Outlook
- Expects the originations environment to remain attractive.
- Anticipates strong growth of its portfolio of interest generating assets.
- Portfolio produced record core income of more than $70 million in Q2.
- Growing debt investment portfolio and rising interest rate environment enables increase in quarterly base distribution.
- Expects to grow core income and NII over the remainder of the year assuming the market remains favorable.