PennantPark Investment Corporation Announces Financial Results for the Quarter Ended December 31, 2024
PennantPark Investment (PNNT) reported its financial results for Q1 2024. The company's investment portfolio totaled $1,298.1 million, with a GAAP net asset value per share of $7.57, showing a 0.1% quarterly increase. Net investment income was $13.0 million ($0.20 per share), while distributions declared were $0.24 per share.
The portfolio consisted of 44% first lien secured debt, 10% U.S. Government Securities, 4% second lien secured debt, 16% subordinated debt, and 26% preferred and common equity. The weighted average yield on debt investments was 12.0%. During the quarter, PNNT invested $295.7 million in new and existing portfolio companies and received $353.7 million from sales and repayments.
The company's PennantPark Senior Loan Fund (PSLF) portfolio grew to $1,275.1 million, investing $353.8 million during the quarter while receiving $109.1 million in sales and repayments.
PennantPark Investment (PNNT) ha riportato i risultati finanziari per il primo trimestre del 2024. Il portafoglio di investimenti della società ammontava a $1.298,1 milioni, con un valore netto degli attivi per azione secondo i principi contabili GAAP di $7,57, mostrando un aumento trimestrale dello 0,1%. Il reddito netto da investimenti è stato di $13,0 milioni ($0,20 per azione), mentre le distribuzioni dichiarate erano di $0,24 per azione.
Il portafoglio era composto dal 44% di debito garantito di primo grado, dal 10% di titoli di stato statunitensi, dal 4% di debito garantito di secondo grado, dal 16% di debito subordinato e dal 26% di capitale preferenziale e comune. Il rendimento medio ponderato sugli investimenti in debito era del 12,0%. Durante il trimestre, PNNT ha investito $295,7 milioni in aziende portafoglio nuove ed esistenti e ha ricevuto $353,7 milioni da vendite e rimborsi.
Il portafoglio del PennantPark Senior Loan Fund (PSLF) della società è cresciuto a $1.275,1 milioni, investendo $353,8 milioni durante il trimestre e ricevendo $109,1 milioni da vendite e rimborsi.
PennantPark Investment (PNNT) reportó sus resultados financieros para el primer trimestre de 2024. La cartera de inversiones de la compañía totalizó $1,298.1 millones, con un valor neto de activos por acción de $7.57, mostrando un aumento trimestral del 0.1%. Los ingresos netos de inversión fueron de $13.0 millones ($0.20 por acción), mientras que las distribuciones declaradas fueron de $0.24 por acción.
La cartera consistía en un 44% de deuda garantizada de primer crédito, un 10% de valores del gobierno de EE. UU., un 4% de deuda garantizada de segundo crédito, un 16% de deuda subordinada y un 26% de capital preferente y común. El rendimiento medio ponderado sobre las inversiones en deuda fue del 12.0%. Durante el trimestre, PNNT invirtió $295.7 millones en nuevas y existentes compañías de la cartera y recibió $353.7 millones de ventas y reembolsos.
La cartera del PennantPark Senior Loan Fund (PSLF) de la compañía creció a $1,275.1 millones, invirtiendo $353.8 millones durante el trimestre y recibiendo $109.1 millones de ventas y reembolsos.
PennantPark Investment (PNNT)는 2024년 1분기 재무 결과를 발표했습니다. 회사의 투자 포트폴리오는 $1,298.1 백만에 이르며, GAAP 기준 주당 순 자산 가치는 $7.57로 0.1%의 분기 증가를 보였습니다. 순 투자 수익은 $13.0 백만 ($0.20 per share)였으며, 선언된 배당금은 $0.24 per share입니다.
포트폴리오는 44%의 1순위 담보부채, 10%의 미국 정부 증권, 4%의 2순위 담보부채, 16%의 후순위 부채 및 26%의 우선주 및 보통주로 구성되었습니다. 부채 투자에 대한 가중 평균 수익률은 12.0%였습니다. 분기 동안 PNNT는 신규 및 기존 포트폴리오 기업에 $295.7 백만을 투자하고 판매 및 상환으로부터 $353.7 백만을 받았습니다.
회사의 PennantPark Senior Loan Fund (PSLF) 포트폴리오는 $1,275.1 백만으로 증가하였으며, 분기 동안 $353.8 백만을 투자하고 $109.1 백만을 판매 및 상환으로 받았습니다.
PennantPark Investment (PNNT) a annoncé ses résultats financiers pour le premier trimestre 2024. Le portefeuille d'investissement de l'entreprise totalisait $1,298.1 millions, avec une valeur nette d'actifs par action selon les normes GAAP de $7.57, montrant une augmentation trimestrielle de 0.1%. Le revenu net d'investissement était de $13.0 millions ($0.20 par action), tandis que les distributions déclarées étaient de $0.24 par action.
Le portefeuille était composé de 44% de dette sécurisée de premier rang, 10% de titres du gouvernement américain, 4% de dette sécurisée de second rang, 16% de dette subordonnée et 26% d'actions privilégiées et ordinaires. Le rendement moyen pondéré sur les investissements en dette était de 12.0%. Au cours du trimestre, PNNT a investi $295.7 millions dans de nouvelles entreprises et des entreprises existantes du portefeuille et a reçu $353.7 millions de ventes et de remboursements.
Le portefeuille du PennantPark Senior Loan Fund (PSLF) de l'entreprise a augmenté à $1,275.1 millions, en investissant $353.8 millions au cours du trimestre tout en recevant $109.1 millions de ventes et de remboursements.
PennantPark Investment (PNNT) hat seine finanziellen Ergebnisse für das 1. Quartal 2024 berichtet. Das Investitionsportfolio des Unternehmens betrug insgesamt $1.298,1 Millionen, mit einem GAAP-Nettovermögen pro Aktie von $7,57, was einem quartalsweisen Anstieg von 0,1% entspricht. Das Nettoinvestitionseinkommen betrug $13,0 Millionen ($0,20 pro Aktie), während die erklärten Ausschüttungen $0,24 pro Aktie betrugen.
Das Portfolio bestand aus 44% besicherten ersten Hypothekenschulden, 10% US-Staatsanleihen, 4% besicherten zweiten Hypothekenschulden, 16% nachrangierten Schulden und 26% Vorzugs- und Stammaktien. Die gewichtete durchschnittliche Rendite auf Schuldeninvestitionen betrug 12,0%. Im Laufe des Quartals investierte PNNT $295,7 Millionen in neue und bestehende Portfoliogesellschaften und erhielt $353,7 Millionen aus Verkäufen und Rückzahlungen.
Das Portfolio des PennantPark Senior Loan Fund (PSLF) des Unternehmens wuchs auf $1.275,1 Millionen, indem es im Quartal $353,8 Millionen investierte und $109,1 Millionen aus Verkäufen und Rückzahlungen erhielt.
- Net asset value per share increased by 0.1% to $7.57
- Strong portfolio yield of 12.0% on debt investments
- PSLF portfolio growth to $1,275.1 million from $1,031.2 million
- Net increase in assets from operations of $16.1 million ($0.25 per share)
- Net investment income decreased to $0.20 per share from $0.24 per share YoY
- Two portfolio companies on non-accrual, representing 4.3% of cost and 1.5% of fair value
- Net realized losses of $2.6 million compared to gains of $1.8 million YoY
- Increased expenses to $21.2 million from $18.7 million YoY
Insights
The Q1 FY2025 results reveal several notable trends in PennantPark's portfolio strategy and performance. The company has maintained strong credit discipline while navigating market volatility, as evidenced by the stable NAV and consistent yield generation.
Key performance indicators show strategic positioning:
- The shift toward first lien secured debt (
44% of portfolio) reflects a defensive approach, though this represents a decrease from50% in the previous quarter - Variable-rate investments comprise
92% of the interest-bearing portfolio, positioning well for the current rate environment - PSLF continues to be a significant value driver, with its portfolio growing to
$1.28 billion and maintaining a10.7% weighted average yield
The dividend coverage metrics warrant attention - while the
The increased investment activity, with
The leverage profile remains managed with regulatory debt-to-equity at 1.58x, while the recent credit facility upsize to
MIAMI, Feb. 10, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (NYSE: PNNT) announced today its financial results for the first quarter ended December 31, 2024.
HIGHLIGHTS
Quarter ended December 31, 2024 (unaudited)
($ in millions, except per share amounts)
| Assets and Liabilities: | ||||||
| Investment portfolio (1) | $ | 1,298.1 | ||||
| Net assets | $ | 494.3 | ||||
| GAAP net asset value per share | $ | 7.57 | ||||
| Quarterly increase in GAAP net asset value per share | 0.1 | % | ||||
| Adjusted net asset value per share (2) | $ | 7.57 | ||||
| Quarterly increase in adjusted net asset value per share (2) | 0.1 | % | ||||
| Credit Facility | $ | 460.0 | ||||
| 2026 Notes | $ | 148.8 | ||||
| 2026-2 Notes | $ | 163.3 | ||||
| Regulatory debt to equity | 1.58x | |||||
| Weighted average yield on debt investments | 12.0 | % | ||||
| Operating Results: | ||||||
| Net investment income | $ | 13.0 | ||||
| Net investment income per share | $ | 0.20 | ||||
| Core net investment income per share (3) | $ | 0.20 | ||||
| Distributions declared per share | $ | 0.24 | ||||
| Portfolio Activity: | ||||||
| Purchases of investments* | $ | 295.7 | ||||
| Sales and repayments of investments* | $ | 353.7 | ||||
| PSLF Portfolio data: | ||||||
| PSLF investment portfolio | $ | 1,275.1 | ||||
| Purchases of investments | $ | 353.8 | ||||
| Sales and repayments of investments | $ | 109.1 | ||||
________________________
* excludes U.S. Government Securities
- Includes investments in PennantPark Senior Loan Fund, LLC ("PSLF"), an unconsolidated joint venture, totaling
$208.2 million , at fair value. - This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance excluding the impact of unrealized gain on the Company's multi-currency, senior secured revolving credit facility with Truist Bank, as amended, the “Credit Facility." The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
- Core net investment income ("Core NII") is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended December 31, 2024, there were no one-time events, resulting in
$0.20 of Core NII..
CONFERENCE CALL AT 12:00 P.M. EST ON FEBRUARY 11, 2025
PennantPark Investment Corporation (“we,” “our,” “us” or the “Company”) will also host a conference call at 12:00 p.m. (Eastern Time) on Tuesday, February 11, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 394-8218 approximately 5-10 minutes prior to the call. International callers should dial (646) 828-8193. All callers should reference conference ID #9452525 or PennantPark Investment Corporation. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark’s website.
PORTFOLIO AND INVESTMENT ACTIVITY
“We are pleased to announce another quarter of solid NAV and credit performance,” said Arthur Penn, Chairman and CEO. “Our earnings stream continues to be strong and is driven in part by the excellent returns generated by our PSLF Joint Venture. Additionally, our dividend stream is supported by substantial spillover income."
As of December 31, 2024, our portfolio totaled
As of September 30, 2024, our portfolio totaled
For the three months ended December 31, 2024, we invested
For the three months ended December 31, 2023, we invested
PennantPark Senior Loan Fund, LLC
As of December 31, 2024, PSLF’s portfolio totaled
As of September 30, 2024, PSLF’s portfolio totaled
For the three months ended December 31, 2024, PSLF invested
For the three months ended December 31, 2023, PSLF invested
RESULTS OF OPERATIONS
Set forth below are the results of operations during the three months ended December 31, 2024 and 2023.
Investment Income
For the three months ended December 31, 2024, investment income was
Expenses
For the three months ended December 31, 2024, expenses totaled
Net Investment Income
For the three months ended December 31, 2024 and 2023, net investment income totaled
Net Realized Gains or Losses
For the three months ended December 31, 2024 and 2023, net realized gains (losses) totaled
Unrealized Appreciation or Depreciation on Investments and Debt
For the three months ended December 31, 2024 and 2023, we reported net change in unrealized appreciation (depreciation) on investments of
For the three months ended December 31, 2024 and 2023, the Truist Credit Facility had a net change in unrealized appreciation (depreciation) of
Net Change in Net Assets Resulting from Operations
For the three months ended December 31, 2024 and 2023, net increase (decrease) in net assets resulting from operations totaled
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from cash flows from operations, including investment sales and repayments, income earned, proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of interest expense, fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.
As of December 31, 2024 and September 30, 2024, we had
As of December 31, 2024 and September 30, 2024, we had cash and cash equivalents of
For the three months ended December 31, 2024, our operating activities provided cash of
For the three months ended December 31, 2023, our operating activities used cash of
DISTRIBUTIONS
During the three months ended December 31, 2024, we declared distributions of
RECENT DEVELOPMENTS
The multi-currency Truist Credit Facility was upsized to
AVAILABLE INFORMATION
The Company makes available on its website its Quarterly Report on Form 10-Q filed with the SEC and stockholders may find the report on our website at www.pennantpark.com.
| PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share data) | ||||||||
| December 31, 2024 | September 30, 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost— | $ | 845,829 | $ | 910,323 | ||||
| Non-controlled, affiliated investments (amortized cost— | 11,032 | 33,423 | ||||||
| Controlled, affiliated investments (amortized cost— | 441,205 | 384,304 | ||||||
| Total investments (amortized cost— | 1,298,066 | 1,328,050 | ||||||
| Cash and cash equivalents (cost— | 55,851 | 49,861 | ||||||
| Interest receivable | 5,227 | 5,261 | ||||||
| Receivable for investments sold | 47,230 | — | ||||||
| Distribution receivable | 5,359 | 5,417 | ||||||
| Due from affiliates | 144 | 228 | ||||||
| Prepaid expenses and other assets | 214 | 269 | ||||||
| Total assets | 1,412,091 | 1,389,086 | ||||||
| Liabilities | ||||||||
| Truist Credit Facility payable, at fair value (cost— | 460,033 | 460,361 | ||||||
| 2026 Notes payable, net (par— | 148,796 | 148,571 | ||||||
| 2026 Notes-2 payable, net (par— | 163,293 | 163,080 | ||||||
| Payable for investment purchased | 125,050 | 100,096 | ||||||
| Distributions payable | 5,224 | 5,224 | ||||||
| Base management fee payable | 4,268 | 4,297 | ||||||
| Incentive fee payable | 2,756 | 3,057 | ||||||
| Accounts payable and accrued expenses | 5,500 | 4,053 | ||||||
| Interest payable on debt | 2,850 | 6,406 | ||||||
| Due to affiliates | — | 33 | ||||||
| Total liabilities | 917,770 | 895,178 | ||||||
| Net assets | ||||||||
| Common stock, 65,296,094 and 65,296,094 shares issued and outstanding, respectively Par value | 65 | 65 | ||||||
| Paid-in capital in excess of par value | 743,968 | 743,968 | ||||||
| Accumulated deficit | (249,712 | ) | (250,125 | ) | ||||
| Total net assets | $ | 494,321 | $ | 493,908 | ||||
| Total liabilities and net assets | $ | 1,412,091 | $ | 1,389,086 | ||||
| Net asset value per share | $ | 7.57 | $ | 7.56 | ||||
| PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share data) (Unaudited) | ||||||||
| Three Months Ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Investment income: | ||||||||
| From non-controlled, non-affiliated investments: | ||||||||
| Interest | $ | 18,767 | $ | 21,068 | ||||
| Payment-in-kind | 1,421 | 2 | ||||||
| Dividend income | 508 | 692 | ||||||
| Other income | 582 | 1,425 | ||||||
| From non-controlled, affiliated investments: | ||||||||
| Payment-in-kind | — | 347 | ||||||
| From controlled, affiliated investments: | ||||||||
| Interest | 7,255 | 5,481 | ||||||
| Payment-in-kind | 823 | 632 | ||||||
| Dividend income | 4,851 | 4,689 | ||||||
| Total investment income | 34,207 | 34,336 | ||||||
| Expenses: | ||||||||
| Interest and expenses on debt | 11,741 | 9,557 | ||||||
| Base management fee | 4,268 | 4,004 | ||||||
| Incentive fee | 2,756 | 3,321 | ||||||
| General and administrative expenses | 1,250 | 1,214 | ||||||
| Administrative services expenses | 500 | 189 | ||||||
| Expenses before provision for taxes | 20,515 | 18,285 | ||||||
| Provision for taxes on net investment income | 700 | 393 | ||||||
| Net expenses | 21,215 | 18,678 | ||||||
| Net investment income | 12,992 | 15,658 | ||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||
| Net realized gain (loss) on investments and debt: | ||||||||
| Non-controlled, non-affiliated investments | (2,560 | ) | 2,581 | |||||
| Non-controlled and controlled, affiliated investments | — | (750 | ) | |||||
| Net realized gain (loss) on investments and debt | (2,560 | ) | 1,831 | |||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||
| Non-controlled, non-affiliated investments | (4,777 | ) | (12,270 | ) | ||||
| Non-controlled and controlled, affiliated investments | 7,138 | 7,324 | ||||||
| Provision for taxes on unrealized appreciation (depreciation) on investments | (37 | ) | 150 | |||||
| Debt appreciation (depreciation) | 3,328 | (2,040 | ) | |||||
| Net change in unrealized appreciation (depreciation) on investments and debt | 5,652 | (6,836 | ) | |||||
| Net realized and unrealized gain (loss) from investments and debt | 3,092 | (5,005 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | $ | 16,084 | $ | 10,653 | ||||
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.25 | $ | 0.16 | ||||
| Net investment income per common share | $ | 0.20 | $ | 0.24 | ||||
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation, or the Company, is a business development company that invests primarily in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Investment Corporation files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the SEC. PennantPark Investment Corporation undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.
The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
| Contact: | Richard T. Allorto, Jr. |
| PennantPark Investment Corporation | |
| (212) 905-1000 | |
| www.pennantpark.com |
FAQ
What was PNNT's net investment income per share for Q1 2024?
How much did PNNT invest in new and existing portfolio companies in Q1 2024?
What is the composition of PNNT's investment portfolio as of December 31, 2024?
What was PNNT's dividend distribution for Q1 2024?
What is the current size of PNNT's PSLF portfolio?
