In This Article:
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Net Investment Income: Reported at $23.9 million or $0.44 per share, exceeding the estimated earnings per share of $0.43.
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Quarterly Distribution: Declared at $0.41 per share, payable on June 27, 2024.
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Net Asset Value (NAV): Increased to $18.19 per share as of March 31, 2024, from $18.09 at the end of the previous quarter.
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Portfolio Fair Value: Comprehensive investment portfolio valued at $3.1 billion, with 99.3% invested in senior secured loans.
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Investment Activity: Originations totaled $260.9 million and repayments amounted to $313.9 million during the quarter.
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Net Increase in Net Assets: From operations amounted to $27.9 million, translating to $0.51 earnings per share.
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Leverage Ratio: Net debt-to-equity ratio stood at 1.16x, within the target range of 0.9x to 1.25x.
On May 8, 2024, SLR Investment Corp (NASDAQ:SLRC) disclosed its financial results for the quarter ended March 31, 2024, through its 8-K filing. The company reported a net investment income of $23.9 million, translating to $0.44 per share, which notably surpasses the analyst's estimate of $0.43 per share. Additionally, SLRC declared a quarterly distribution of $0.41 per share, set to be paid on June 27, 2024.
Company Overview
SLR Investment Corp is a prominent closed-end investment company that specializes in providing bespoke debt financing solutions to U.S. middle market businesses. Operating as a business development company, SLRC focuses on investments in senior secured loans, financing leases, and, to a lesser extent, unsecured loans and equity securities, primarily targeting leveraged middle-market companies.
Financial and Portfolio Highlights
The company's net asset value (NAV) per share saw a slight increase from $18.09 as of December 31, 2023, to $18.19 as of March 31, 2024. The total investment portfolio fair value stood at $2.1 billion, with net assets amounting to $992.1 million. SLRC's leverage ratio was reported at 1.16x net debt-to-equity, aligning with the company's strategic financial management.
During the quarter, SLRC's comprehensive investment portfolio activity included $260.9 million in originations and $313.9 million in repayments, reflecting a dynamic and responsive investment strategy amidst fluctuating market conditions. The portfolio is diversified across approximately 800 unique issuers in over 110 industries, emphasizing the company's robust risk management and broad market engagement.
Operational and Market Insights
SLRC's Co-CEOs, Michael Gross and Bruce Spohler, highlighted the solid credit quality of the portfolio and the attractive investment environment, particularly in specialty finance lending verticals. The strategic focus on specialty finance strategies accounted for nearly 90% of the quarters originations, showcasing SLRC's adeptness in capitalizing on high-potential opportunities.