In This Article:
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Net Investment Income (NII): $23.9 million, or $0.44 per share for Q4 2023.
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Net Asset Value (NAV): $18.09 per share as of December 31, 2023, showing stability from $18.06 as of September 30, 2023.
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Quarterly Distribution: Declared at $0.41 per share, consistent with the previous distribution.
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Portfolio Activity: Record high originations at $1,475.8 million for the year, with repayments totaling $1,343.7 million.
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Investment Portfolio: Diversified across approximately 790 unique issuers, with 99.2% invested in senior secured loans.
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Leverage: Net debt-to-equity ratio at 1.19x, within the target range.
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Available Capital: Over $500 million, including anticipated available credit facility capacity.
On February 27, 2024, SLR Investment Corp (NASDAQ:SLRC) released its 8-K filing, announcing its financial results for the quarter and year ended December 31, 2023. The company, a closed-end investment company that has elected to be treated as a business development company, specializes in providing bespoke debt financing solutions to U.S. middle market businesses.
SLRC reported a net investment income of $23.9 million, or $0.44 per share, for the fourth quarter of 2023, marking a 7.3% year-over-year increase in quarterly net investment income per share. This growth represents the fourth consecutive quarter of NII growth, according to Michael Gross, Co-CEO of SLRC. The company's net asset value per share remained stable at $18.09, with a slight increase from the previous quarter's $18.06.
The company's financial achievements are significant, particularly in the asset management industry, where stable NAV and growing NII are indicators of sound investment strategy and portfolio management. SLRC's record originations and repayments throughout the year reflect a dynamic portfolio with healthy turnover, allowing the company to leverage an attractive investment environment.
Portfolio Performance and Financial Condition
Co-CEO Bruce Spohler highlighted the strength of the 2023 investments, expecting them to produce strong risk-adjusted returns. The company's focus on senior lending programs contributed to an expansion in NII, and the credit quality metrics remained robust, evidenced by the sequential increase in NAV and low levels of non-accruals.
The company's portfolio is diversified across approximately 790 unique issuers, operating in over 110 industries, with an average exposure of $3.9 million or 0.1% per issuer. As of December 31, 2023, 99.2% of the company's Comprehensive Investment Portfolio was invested in senior secured loans, with 97.7% held in first lien senior secured loans.