In This Article:
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Net Asset Value (NAV) per Share: $11.29, slightly up from $11.28 at the prior fiscal year end.
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Net Investment Income (NII) per Share: $0.28, exceeding the dividend of $0.26 per share.
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Total Shareholder Return for 2024: Exceeded 24%.
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Non-Accrual Rate: Declined to 0.3% on a fair-value basis and 1.6% on a cost basis.
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Weighted Average Yield at Fair Value: 10.4%.
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Fourth Quarter Dividend: $0.26 per share, with an additional $0.15 in supplemental dividends.
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Capital Deployment: $298 million deployed, offset by $222 million in sales and repayments.
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Net Leverage Ratio: 1.16 times, within the long-term range of 0.9 to 1.25 times.
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Unfunded Commitments: $323 million to portfolio companies and $65 million to joint venture investments.
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Available Capital: Over $464 million.
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Share Repurchase: 150,000 shares repurchased in Q4, totaling over 650,000 shares in 2024.
Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Barings BDC Inc (NYSE:BBDC) delivered strong and consistent results in Q4 2024, driven by best-in-class credit performance and franchise stability.
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Total shareholder return for 2024 exceeded 24%, placing BBDC in the top quartile among publicly traded peers.
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The company experienced a meaningful uptick in deployment during Q4 2024, with strong originations from both existing portfolio add-ons and new buyouts.
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Net investment income for the quarter was $0.28 per share, out-earning the dividend of $0.26 per share.
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The non-accrual rate declined to 0.3% on a fair-value basis, one of the lowest levels across the industry, reflecting strong credit quality.
Negative Points
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Lending activity was muted during the first three quarters of 2024, consistent with broader industry trends.
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Regulatory and trade uncertainties have created caution in the market, impacting the pace of new buy opportunities.
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The portfolio's net asset value per share was largely unchanged, indicating limited growth in asset value.
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The company remains cautious about the economic outlook for 2025, despite positive economic indicators.
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There is uncertainty in the private equity market, with a slowdown in the expected sale of portfolio companies.
Q & A Highlights
Q: Can you explain the concept of a PIK non-accrual and how it differs from a regular non-accrual? A: Elizabeth Murray, CFO, explained that a PIK non-accrual occurs when the investment team determines that the full value, including PIK, cannot be recovered, but the cash portion can. The investment was initially performing above expectations, but adjustments were made to reflect realistic recovery expectations.