In This Article:
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NAV per Share: Record NAV per share of $19.89 at year-end 2024.
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GAAP Net Income per Share: $0.55 for Q4 2024, $2.44 for the full year 2024.
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Core Earnings per Share: $0.55 for Q4 2024.
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Total Portfolio at Fair Value: $26.7 billion at the end of Q4 2024.
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Weighted Average Yield on Debt and Other Income-Producing Securities: 11.1% at December 31, 2024.
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Debt-to-Equity Ratio: 0.99x net of available cash at the end of Q4 2024.
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Dividend: $0.48 per share declared for Q1 2025.
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Nonaccruals at Cost: 1.7% at the end of Q4 2024.
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Portfolio Companies: 550 companies at year-end 2024.
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New Investment Commitments: $3.8 billion in Q4 2024, $15 billion for the full year 2024.
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Backlog as of January 28, 2025: $1.8 billion.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ares Capital Corp (NASDAQ:ARCC) reported a record NAV per share of $19.89, marking the eighth consecutive quarter of NAV growth.
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The company achieved one of the most active origination years in its history, with $15 billion of new commitments, more than double the commitment volumes of 2023.
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ARCC's portfolio companies showed strong performance, with an organic weighted average LTM EBITDA growth rate of 11% in the fourth quarter.
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The company secured ratings upgrades from two major credit rating agencies, making it the highest-rated BDC among the three major rating agencies.
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ARCC declared a first quarter 2025 dividend of $0.48 per share, maintaining a stable or increasing dividend for over 15 consecutive years.
Negative Points
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GAAP net income per share for the fourth quarter of 2024 was $0.55, down from $0.62 in the prior quarter and $0.72 in the fourth quarter of 2023.
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Core earnings per share declined due to a decrease in portfolio yields, impacted by a nearly 100 basis point drop in base rates by the end of 2024.
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The weighted average yield on debt and other income-producing securities decreased to 11.1% at the end of 2024, down from 12.5% at the end of 2023.
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Nonaccrual rates at cost increased to 1.7%, up 40 basis points from the prior quarter and year-end 2023.
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The company is monitoring potential impacts from changes in new government policies, which could affect the direct lending landscape.
Q & A Highlights
Q: Can you discuss the activity levels during the fourth quarter and any impact on net investment income (NII)? A: Kipp deVeer, CEO, noted that the fourth quarter was flat compared to the third quarter, with some delays possibly due to the election. However, January was busy, and they remain optimistic about deal flow and new transactions.