In This Article:
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Net Investment Income: $0.45 per share for Q3 2024, consistent with the prior quarter.
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Net Asset Value (NAV): $18.20 per share as of September 30, 2024.
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Originations: $397 million in Q3 2024, with 96% from Special Finance verticals.
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Repayments: $328 million in Q3 2024.
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Net Portfolio Growth: $68 million in Q3 2024.
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Non-Accrual Investments: 0.6% of the investment portfolio on a cost basis.
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Available Capital: Over $750 million as of September 30, 2024.
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Gross Investment Income: $59.8 million for Q3 2024.
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Expenses: $34.35 million for Q3 2024.
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Net Realized and Unrealized Loss: $2.3 million for Q3 2024.
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Quarterly Distribution: $0.41 per share, payable on December 27, 2024.
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Investment Portfolio: $2.1 billion at fair market value as of September 30, 2024.
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Debt Outstanding: Approximately $1.1 billion with a net debt to equity ratio of 1.1 times.
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Weighted Average Yield: 11.8% on the comprehensive portfolio at quarter end.
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Specialty Finance Investments: 78% of the comprehensive portfolio.
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Life Science Portfolio Yield: 12.6% including potential success fees.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SLR Investment Corp (NASDAQ:SLRC) reported stable net investment income of 45 per share for Q3 2024, consistent with the prior quarter.
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The company's net asset value remained stable at $18.20 per share, reflecting strong credit quality.
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SLRC's portfolio is heavily weighted towards special finance investments, which are considered more recession-resilient.
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The company successfully acquired an asset-based factoring portfolio from Western banks, enhancing its ABL capabilities.
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SLRC has over $750 million of available capital, positioning it well for future economic conditions.
Negative Points
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The sponsor finance market remains fiercely competitive, impacting SLRC's ability to originate new loans in this segment.
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SLRC's life sciences portfolio faces challenges due to increased defaults and weaker lender protections.
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The company experienced a net realized and unrealized loss of $2.3 million for the third quarter.
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SLRC's portfolio includes one investment on non-accrual, representing 0.6% of the investment portfolio on a cost basis.
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The life sciences industry continues to face valuation challenges, affecting SLRC's investment pipeline.
Q & A Highlights
Q: Can you provide insights on the Webster acquisition and its impact on SLR Business Credit? A: Bruce Spohler, Co-Chief Executive Officer, explained that the acquisition came with a 14% portfolio, targeting a low to mid-teens return on equity. They invested about $30 million in equity, expecting upside from this starting point.