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SLR Investment Corp. Announces Quarter Ended June 30, 2024 Financial Results

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SLR Investment Corp. (NASDAQ: SLRC) reported a net investment income (NII) of $24.3 million, or $0.45 per share, for Q2 2024. The company declared a quarterly distribution of $0.41 per share, payable on September 27, 2024, to holders of record as of September 13, 2024. As of June 30, 2024, the company's net asset value (NAV) was $18.20 per share, stable from $18.19 as of March 31, 2024.

SLRC's investment portfolio had a fair value of $2.1 billion. The company reported net realized and unrealized losses of $1.1 million, or $0.02 per share. The net increase in net assets from operations was $23.2 million, or $0.43 per share. The portfolio is diversified across approximately 800 issuers, with a fair value of $3.1 billion, predominantly invested in senior secured loans.

For the quarter, SLRC had originations of $355.8 million and repayments of $292.7 million. The company's leverage ratio stood at 1.16x net debt-to-equity. Gross investment income totaled $59.0 million, a 4.7% increase YoY, while net expenses were $34.7 million, up by 3.0% YoY.

SLR Investment Corp. (NASDAQ: SLRC) ha riportato un reddito da investimento netto (NII) di 24,3 milioni di dollari, corrispondenti a 0,45 dollari per azione, per il secondo trimestre del 2024. La società ha dichiarato una distribuzione trimestrale di 0,41 dollari per azione, pagabile il 27 settembre 2024, agli azionisti registrati al 13 settembre 2024. Al 30 giugno 2024, il valore netto degli attivi (NAV) della società era di 18,20 dollari per azione, stabile rispetto ai 18,19 dollari del 31 marzo 2024.

Il portafoglio investimenti di SLRC aveva un valore equo di 2,1 miliardi di dollari. La società ha riportato perdite nette realizzate e non realizzate di 1,1 milioni di dollari, equivalenti a 0,02 dollari per azione. L'aumento netto degli attivi derivante dalle operazioni è stato di 23,2 milioni di dollari, pari a 0,43 dollari per azione. Il portafoglio è diversificato su circa 800 emittenti, con un valore equo di 3,1 miliardi di dollari, investito prevalentemente in prestiti senior garantiti.

Per il trimestre, SLRC ha effettuato concessioni per 355,8 milioni di dollari e rimborsi per 292,7 milioni di dollari. Il rapporto di indebitamento della società si attestava a 1,16x debito netto su capitale. Il reddito lordo da investimenti è ammontato a 59,0 milioni di dollari, con un incremento del 4,7% su base annua, mentre le spese nette sono state di 34,7 milioni di dollari, in aumento del 3,0% su base annua.

SLR Investment Corp. (NASDAQ: SLRC) reportó un ingreso neto por inversiones (NII) de 24,3 millones de dólares, o 0,45 dólares por acción, para el segundo trimestre de 2024. La compañía declaró una distribución trimestral de 0,41 dólares por acción, que se pagará el 27 de septiembre de 2024, a los accionistas registrados a partir del 13 de septiembre de 2024. Al 30 de junio de 2024, el valor neto de los activos (NAV) de la compañía era de 18,20 dólares por acción, estable en comparación con los 18,19 dólares al 31 de marzo de 2024.

La cartera de inversiones de SLRC tenía un valor razonable de 2,1 mil millones de dólares. La compañía reportó pérdidas netas realizadas y no realizadas de 1,1 millones de dólares, o 0,02 dólares por acción. El aumento neto de activos por operaciones fue de 23,2 millones de dólares, o 0,43 dólares por acción. La cartera está diversificada en aproximadamente 800 emisores, con un valor justo de 3,1 mil millones de dólares, invertido predominantemente en préstamos garantizados senior.

En el trimestre, SLRC tuvo originaciones de 355,8 millones de dólares y pagos de 292,7 millones de dólares. La relación de apalancamiento de la compañía se situó en 1,16x deuda neta sobre patrimonio. Los ingresos brutos por inversiones totalizaron 59,0 millones de dólares, un aumento del 4,7% interanual, mientras que los gastos netos fueron de 34,7 millones de dólares, un incremento del 3,0% interanual.

SLR 투자 법인 (NASDAQ: SLRC)는 2024년 2분기 순 투자 수익(NII)으로 2,430만 달러, 주당 0.45달러를 보고했습니다. 회사는 2024년 9월 27일에 주주에게 지급될 주당 0.41달러의 분기 배당금을 선언했으며, 기록 기준일은 2024년 9월 13일입니다. 2024년 6월 30일 기준으로 회사의 순 자산 가치(NAV)는 주당 18.20달러이며, 2024년 3월 31일의 18.19달러와 동일합니다.

SLRC의 투자 포트폴리오는 공정 가치가 21억 달러에 달합니다. 회사는 110만 달러, 주당 0.02달러의 실현 및 미실현 손실을 보고했습니다. 운영으로 인한 순 자산 증가는 2320만 달러, 주당 0.43달러였습니다. 포트폴리오는 약 800개의 발행자를 포함하여 다각화되었으며, 공정 가치는 31억 달러로 주로 선순위 담보 대출에 투자되고 있습니다.

이번 분기 동안 SLRC는 3억 5580만 달러의 대출을 승인하고 2억 9270만 달러를 상환했습니다. 회사의 레버리지 비율은 순 부채 대 자기 자본에서 1.16배에 달했습니다. 총 투자 수익은 5,900만 달러로 연간 4.7% 증가했으며, 순 비용은 3,470만 달러로 연간 3.0% 증가했습니다.

SLR Investment Corp. (NASDAQ: SLRC) a annoncé un revenu net d'investissement (NII) de 24,3 millions de dollars, soit 0,45 dollar par action, pour le deuxième trimestre de 2024. La société a déclaré une distribution trimestrielle de 0,41 dollar par action, payable le 27 septembre 2024, aux actionnaires inscrits à la date du 13 septembre 2024. Au 30 juin 2024, la valeur nette des actifs (NAV) de la société était de 18,20 dollars par action, stable par rapport à 18,19 dollars au 31 mars 2024.

Le portefeuille d'investissement de SLRC avait une valeur juste de 2,1 milliards de dollars. La société a signalé des pertes nettes réalisées et non réalisées de 1,1 million de dollars, soit 0,02 dollar par action. L'augmentation nette des actifs provenant des opérations était de 23,2 millions de dollars, soit 0,43 dollar par action. Le portefeuille est diversifié sur environ 800 émetteurs, avec une valeur juste de 3,1 milliards de dollars, principalement investie dans des prêts garantis seniors.

Pour le trimestre, SLRC a enregistré des origines de 355,8 millions de dollars et des remboursements de 292,7 millions de dollars. Le ratio d'endettement de l'entreprise s'élevait à 1,16x de la dette nette par rapport aux capitaux propres. Le revenu brut d'investissement a totalisé 59,0 millions de dollars, soit une augmentation de 4,7 % par rapport à l'année précédente, tandis que les dépenses nettes s'élevaient à 34,7 millions de dollars, soit une augmentation de 3,0 % par rapport à l'année précédente.

SLR Investment Corp. (NASDAQ: SLRC) berichtete über ein Netto-Investitionseinkommen (NII) von 24,3 Millionen Dollar, was 0,45 Dollar pro Aktie entspricht, für das zweite Quartal 2024. Das Unternehmen erklärte eine vierteljährliche Ausschüttung von 0,41 Dollar pro Aktie, zahlbar am 27. September 2024, an die Aktionäre, die am 13. September 2024 im Aktienregister stehen. Zum 30. Juni 2024 betrug der Nettovermögenswert (NAV) des Unternehmens 18,20 Dollar pro Aktie, stabil im Vergleich zu 18,19 Dollar am 31. März 2024.

Das Investitionsportfolio von SLRC hatte einen fairen Wert von 2,1 Milliarden Dollar. Das Unternehmen berichtete von realisierten und unrealisierte Nettoverlusten in Höhe von 1,1 Millionen Dollar, oder 0,02 Dollar pro Aktie. Der netto Anstieg der Nettovermögen aus dem Geschäft betrug 23,2 Millionen Dollar, was 0,43 Dollar pro Aktie entspricht. Das Portfolio ist auf etwa 800 Emittenten diversifiziert und hat einen fairen Wert von 3,1 Milliarden Dollar, das überwiegend in vorrangigen gesicherten Krediten investiert ist.

Im Quartal hatte SLRC Neugeschäfte in Höhe von 355,8 Millionen Dollar und Rückzahlungen in Höhe von 292,7 Millionen Dollar. Das Unternehmen hatte einen Verschuldungsgrad von 1,16x netto Schulden im Verhältnis zu Eigenkapital. Das Bruttoinvestitionseinkommen belief sich auf 59,0 Millionen Dollar, was einem Anstieg von 4,7 % im Jahresvergleich entspricht, während die Nettokosten 34,7 Millionen Dollar betrugen, was einem Anstieg von 3,0 % im Jahresvergleich entspricht.

Positive
  • Net investment income of $24.3 million, or $0.45 per share.
  • Quarterly distribution of $0.41 per share declared.
  • Stable NAV at $18.20 per share.
  • Investment portfolio fair value of $2.1 billion.
  • Diversified portfolio across approximately 800 issuers.
  • Gross investment income increased by 4.7% YoY to $59.0 million.
  • Low level of non-accrual investments and minimal payment-in-kind income.
Negative
  • Net realized and unrealized losses of $1.1 million, or $0.02 per share.
  • Increase in expenses by 3.0% YoY to $34.7 million.

Insights

SLR Investment Corp's Q2 2024 results show positive momentum. Net investment income (NII) of $0.45 per share is the highest in 5 years, exceeding the $0.41 quarterly distribution. This 9.8% excess provides a cushion for future distributions.

The stable NAV of $18.20 per share indicates solid portfolio performance. The 1.16x net debt-to-equity ratio is within the target range, suggesting prudent leverage management. The 99.6% performing portfolio (fair value basis) reflects strong asset quality.

The diversified $3.1 billion comprehensive portfolio across ~800 issuers reduces concentration risk. The 97.7% first lien senior secured loans provide downside protection. However, investors should monitor the impact of rising interest rates on portfolio companies' ability to service debt.

The credit profile of SLR Investment Corp's portfolio appears robust. Only one investment is on non-accrual status, representing a mere 0.4% of the portfolio by fair value. This low level of non-performing assets is a positive indicator of overall portfolio health.

The internal risk ratings show 99.2% of investments rated 1 or 2 (lowest risk), suggesting strong underwriting standards. The decline in non-accrual investments and low level of watch list investments further support this view.

However, the minimal payment-in-kind (PIK) income is worth noting. While this reduces risk associated with non-cash income, it may also indicate upside potential from equity-like returns. Investors should monitor how this balance evolves as economic conditions change.

SLR Investment Corp's multi-strategy approach appears to be paying off in the current market environment. The company's ability to originate both sponsor finance and specialty finance investments provides diversification and potentially higher yields in less competitive niches.

The weighted average asset yield of 11.7% across the comprehensive portfolio is attractive in the current interest rate environment. The 66.3% floating rate investments position the company well for potential further rate increases.

However, investors should be aware of potential headwinds. The softening economy mentioned by management could lead to increased defaults or reduced dealflow. Additionally, the high proportion of first lien loans, while reducing risk, may limit upside potential in a strong economic recovery scenario.

Net Investment Income of $0.45 Per Share;

Declared Quarterly Distribution of $0.41 Per Share;

Stable NAV Per Share

NEW YORK, Aug. 07, 2024 (GLOBE NEWSWIRE) -- SLR Investment Corp. (NASDAQ: SLRC) (the “Company”, “SLRC”, “we”, “us”, or “our”) today reported net investment income (“NII”) of $24.3 million, or $0.45 per share, for the second quarter of 2024. On August 7, 2024, the Board declared a quarterly distribution of $0.41 per share payable on September 27, 2024, to holders of record as of September 13, 2024.

As of June 30, 2024, net asset value (“NAV”) was $18.20 per share, compared to $18.19 per share as of March 31, 2024.

“NII per share in the second quarter reached the highest level in 5 years, reflecting our deliberate approach to rebuild the Company’s investment portfolio after a period of conservatism during the pandemic. Importantly, SLRC’s portfolio growth over the last couple of years has been driven by originations in both sponsor finance and specialty finance investments, enabling us to take advantage of our complementary niches within the private credit market that are not as competitive as the sponsor market,” said Michael Gross, Co-CEO. “Our multi-strategy approach provides greater earnings stability across cycles due to the relative consistency of the returns in our specialty finance strategies.”

“Our portfolio continues to perform well, which is evidenced by another quarter of NAV stability, a decline in non-accrual investments, a low level of watch list investments, and minimal payment-in-kind income,” said Bruce Spohler, Co-CEO. “We believe the recent stability in the NAV reflects our multi-strategy portfolio, which was substantially constructed in 2023 and 2024 and underwritten to withstand higher interest rates and a softening economy.”

FINANCIAL HIGHLIGHTS FOR QUARTER ENDED JUNE 30, 2024:
Investment portfolio fair value: $2.1 billion
Net assets: $993.0 million or $18.20 per share
Leverage: 1.16x net debt-to-equity

Operating Results for the Quarter Ended June 30, 2024:
Net investment income: $24.3 million or $0.45 per share
Net realized and unrealized losses: $1.1 million or $0.02 per share
Net increase in net assets from operations: $23.2 million or $0.43 per share

COMPREHENSIVE PORTFOLIO(1) HIGHLIGHTS AND ACTIVITY(2) FOR QUARTER ENDED JUNE 30, 2024:
Portfolio fair value: $3.1 billion
Number of unique issuers: approximately 800
Investments made during the quarter: $355.8 million
Investments prepaid and sold during the quarter: $292.7 million

(1) The Comprehensive Investment Portfolio for the quarter ended June 30, 2024 is comprised of SLRC’s investment portfolio and SLR Credit Solutions’ (“SLR-CS”) full portfolio, SLR Equipment Finance’s (“SLR-EF”) full portfolio, Kingsbridge Holdings, LLC’s (“KBH”) full portfolio, SLR Business Credit’s (“SLR-BC”) full portfolio, SLR Healthcare ABL’s (“SLR-HC ABL”) full portfolio owned by the Company (collectively, the Company’s “Commercial Finance Portfolio Companies”), and the senior secured loans held by the SLR Senior Lending Program LLC (“SSLP”) attributable to the Company, and excludes the Company’s fair value of the equity interests in SSLP and the Commercial Finance Portfolio Companies and also excludes SLRC’s loans to KBH and SLR-EF.
(2) Comprehensive Portfolio Activity for the quarter ended June 30, 2024, includes investment activity of the Commercial Finance Portfolio Companies and SSLP attributable to the Company.

Comprehensive Investment Portfolio

Portfolio Activity

During the three months ended June 30, 2024, SLRC had Comprehensive Portfolio originations of $355.8 million and repayments of $292.7 million across the Company’s four investment strategies:

      
Asset ClassSponsor
Finance(1)		Asset-based
Lending(2)		Equipment
Finance(3)		Life Science
Finance		Total
Comprehensive Investment
Portfolio Activity
Originations$44.5$130.4$177.9$3.0$355.8
Repayments /
Amortization		$33.2$100.4$159.1$0.0$292.7
Net Portfolio
Activity		$11.3$30.0$18.8$3.0 $63.1

(1) Sponsor Finance refers to cash flow loans to sponsor-owned companies including cash flow loans held in SSLP attributable to the Company.
(2) Includes SLR-CS, SLR-BC and SLR-HC ABL’s full portfolios, as well as asset-based loans on the Company’s balance sheet.
(3) Includes SLR-EF’s full portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) full portfolio.

Comprehensive Investment Portfolio Composition

The Comprehensive Investment Portfolio is diversified across approximately 800 unique issuers, operating in over 110 industries, and resulting in an average exposure of $3.8 million or 0.1% per issuer. As of June 30, 2024, 99.2% of the Company’s Comprehensive Investment Portfolio was invested in senior secured loans of which 97.7% is held in first lien senior secured loans. Second lien ABL exposure is 1.2% and second lien cash flow exposure is 0.3% of the Comprehensive Investment Portfolio at June 30, 2024.

SLRC’s Comprehensive Investment Portfolio composition by asset class as of June 30, 2024 was as follows:

Comprehensive Investment
Portfolio Composition
(at fair value)
AmountWeighted
Average Asset
Yield(5)
($mm)%
Senior Secured Investments
Cash Flow Loans (Sponsor Finance)(1)		$759.024.3%11.7%
Asset-Based Loans(2)$961.430.8%15.2%
Equipment Financings(3)$1,034.133.1%8.1%
Life Science Loans$345.511.0%13.0%
Total Senior Secured Investments$3,100.099.2%11.7%
Equity and Equity-like Securities$24.80.8% 
Total Comprehensive Investment
Portfolio		$3,124.8100.0% 
Floating Rate Investments(4)$2,058.166.3% 
First Lien Senior Secured Loans$3,054.097.7% 
Second Lien Senior Secured
Asset-Based Loans		$38.21.2% 
Second Lien Senior Secured
Cash Flow Loans		$7.80.3% 

(1) Includes cash flow loans held in the SSLP attributable to the Company and excludes the Company’s equity investment in SSLP.
(2) Includes SLR-CS, SLR-BC, and SLR-HC ABL’s full portfolios, as well as asset-based loans on the Company’s balance sheet, and excludes the Company’s equity investments in each of SLR-CS, SLR-BC, and SLR-HC ABL.
(3) Includes SLR-EF’s full portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) full portfolio. Excludes the Company’s equity and debt investments in each of SLR-EF and KBH.
(4) Floating rate investments are calculated as a percent of the Company’s income-producing Comprehensive Investment Portfolio. The majority of fixed rate loans are associated with SLR-EF and leases held by KBH. Additionally, SLR-EF and KBH seek to match-fund their fixed rate assets with fixed rate liabilities.
(5) The weighted average asset yield for income producing cash flow, asset-based and life science loans on balance sheet is based on a yield to maturity calculation. The yield calculation of Life Science loans excludes the impact of success fees and/or warrants. The weighted average yield for on-balance sheet equipment financings is calculated based on the expected average life of the investments. The weighted average asset yield for SLR-CS asset-based loans is an Internal Rate of Return calculated using actual cash flows received and the expected terminal value. The weighted average asset yield for SLR-BC and SLR-HC ABL represents total interest and fee income for the three month period ended on June 30, 2024 against the average portfolio over the same fiscal period, annualized. The weighted average asset yield for SLR-EF represents total interest and fee income for the three month period ended on June 30, 2024 compared to the portfolio as of June 30, 2024, annualized. The weighted average yield for the KBH equipment leasing portfolio represents the expected return on equity during 2024.

SLR INVESTMENT CORP. PORTFOLIO

Asset Quality

As of June 30, 2024, 99.6% of SLRC’s portfolio was performing on a fair value basis and 99.4% on a cost basis, with one investment recognized as non-accrual.

The Company emphasizes risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four, with one representing the least amount of risk.

As of June 30, 2024, the composition of our Investment Portfolio, on a risk ratings basis, was as follows:

Internal Investment RatingInvestments at Fair Value ($mm)% of Total Portfolio
1$656.030.7%
2$1,464.468.5%
3$8.40.4%
4$7.80.4%


Investment Income Contribution by Asset Class

Investment Income Contribution by Asset Class(1)
($mm)
For the Quarter
Ended:		Sponsor
Finance		Asset-based
Lending		Equipment
Finance		Life Science
Finance		Total
6/30/2024$22.5$14.6$9.4$12.5$59.0
% Contribution38.2%24.7%15.9%21.2%100.0%

(1) Investment Income Contribution by Asset Class includes: interest income/fees from Sponsor Finance (cash flow) loans on balance sheet and distributions from SSLP; income/fees from asset-based loans on balance sheet and distributions from SLR-CS, SLR-BC, SLR-HC ABL; income/fees from equipment financings and distributions from SLR-EF and distributions from KBH; and income/fees from life science loans on balance sheet.

SLR Senior Lending Program LLC (SSLP)

As of June 30, 2024, the Company and its 50% partner, Sunstone Senior Credit L.P., had contributed combined equity capital of $95.8 million of a total equity commitment of $100 million to SSLP. At quarter end, SSLP had total commitments of $236.4 million at par and total funded portfolio investments of $220.8 million at fair value, consisting of floating rate senior secured loans to 39 different borrowers and an average investment of $5.7 million per borrower. This compares to funded portfolio investments of $216.9 million at fair value across 39 different borrowers at March 31, 2024. During the quarter ended June 30, 2024, SSLP invested $11.4 million in 7 portfolio companies and had $7.7 million of investments repaid. The fair value of the portfolio increased by 1.8% over the prior quarter.

In Q2 2024, the Company earned income of $1.9 million from its investment in the SSLP, representing an annualized yield of 15.8% on the cost basis of the Company’s investment, compared to income of $1.6 million in Q1 2024.

SLR Investment Corp.’s Results of Operations for the Quarter Ended June 30, 2024 compared to the Quarter Ended June 30, 2023

Investment Income

SLRC’s gross investment income totaled $59.0 million and $56.3 million, respectively, for the three months ended June 30, 2024 and 2023. The year-over-year increase of 4.7% in gross investment income was primarily due to a combination of an increase in other income, the ramp of the SSLP, and an increase in index rates.

Expenses

SLRC’s net expenses totaled $34.7 million and $33.7 million, respectively, for the three months ended June 30, 2024 and 2023. The year-over-year increase in expenses of 3.0% was primarily due to an increase in other general and administrative expenses as well as an increase in management fees.

SLRC’s investment adviser agreed to waive incentive fees resulting from income earned due to the accretion of the purchase price discount allocated to investments acquired in the Company’s merger with SLR Senior Investment Corp., which closed on April 1, 2022. For the three months ended June 30, 2024 and 2023, $44 thousand and $125 thousand, respectively, of performance-based incentive fees were waived, amounting to a cumulative fee waiver of $2.1 million or $0.04 per share.

Net Investment Income

SLRC’s net investment income totaled $24.3 million and $22.7 million, or $0.45 and $0.42 per average share, respectively, for the fiscal quarters ended June 30, 2024 and 2023.

Net Realized and Unrealized Loss

Net realized and unrealized losses for the fiscal quarters ended June 30, 2024 and 2023 totaled $1.1 million and $3.7 million, respectively.

Net Increase in Net Assets Resulting from Operations

For the three months ended June 30, 2024 and 2023, the Company had a net increase in net assets resulting from operations of $23.2 million and $19.0 million, respectively. For the same periods, earnings per average share were $0.43 and $0.35, respectively.

Liquidity and Capital Resources

Unsecured Debt

At June 30, 2024, 41% of the Company’s funded debt was comprised of fixed rate unsecured notes. We expect to opportunistically access the investment-grade debt market.

Credit Facilities and Available Capital

As of June 30, 2024, the Company had $588.9 million drawn on the $860 million of commitments that the Company has under its revolving credit facilities, $100 million of term loans, and $470 million of unsecured notes. Also as of June 30, 2024, including anticipated available borrowing capacity at the SSLP and our specialty finance portfolio companies, subject to borrowing base limits, SLRC, SSLP and our specialty finance portfolio companies had over $750 million of available capital in the aggregate.

Leverage

As of June 30, 2024, the Company’s net debt-to-equity ratio was 1.16x, within the Company’s target range of 0.9x to 1.25x.

Unfunded Commitments

As of June 30, 2024, excluding commitments to SLR-CS, SLR-HC ABL and SSLP, over which the Company has discretion to fund, the Company had unfunded commitments of approximately $136.1 million.

Subsequent Events

Distributions

On August 7, 2024, the Board declared a quarterly distribution of $0.41 per share payable on September 27, 2024 to holders of record as of September 13, 2024.

Conference Call and Webcast Information

The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Thursday, August 8, 2024. All interested parties may participate in the conference call by dialing (800) 267-6316 approximately 5-10 minutes prior to the call, international callers should dial (203) 518-9783. Participants should reference SLR Investment Corp. and Conference ID: SLRC2Q24. A telephone replay will be available until August 22, 2024 and can be accessed by dialing (800) 839-2418. International callers should dial (402) 220-7210. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties from the Event Calendar within the “Investors” tab of SLR Investment Corp.’s website, https://slrinvestmentcorp.com/Investors/Event-Calendar. Please register online prior to the start of the call. For those who are not able to listen to the broadcast live, a replay of the webcast will be available soon after the call.

Financial Statements and Tables

SLR INVESTMENT CORP.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share amounts)		 
  
 June 30, 2024 December 31, 2023
 
Assets        
Investments at fair value:        
Companies less than 5% owned (cost: $1,232,964 and $1,260,205, respectively)……………………………….$1,247,747  $1,271,442  
Companies 5% to 25% owned (cost: $61,055 and $60,064, respectively)…..……….……………………………… 45,242   44,250  
Companies more than 25% owned (cost: $875,473 and $870,128, respectively)……….……………………….. 843,561   839,074  
Cash…………………………………………………………………………………………….……………………………………………………………………… 11,031   11,864  
Cash equivalents (cost: $274,126 and $332,290, respectively)……………………………….……........................................ 274,126   332,290  
Dividends receivable…………………………………………………………………………………………………………………………………………… 12,114   11,768  
Interest receivable…………………………………………………………………………….……………………………………………………………….. 11,759   11,034  
Receivable for investments sold……………………………………………………………….………………………………………………………… 1,755   1,538  
Prepaid expenses and other assets…………………………………………………………………………………………………………………….. 943   608  
Total assets…………………………………………………………………………………………………………………………………………$2,448,278   $2,523,868   
         
Liabilities        
Debt ($1,158,850 and $1,183,250 face amounts, respectively, reported net of unamortized debt issuance costs
of $4,497 and $5,473, respectively).…………………………………………………………………………………………………..		$1,154,353  $1,177,777  
Payable for investments and cash equivalents purchased……………...……………………………………………………………….…. 274,126   332,290  
Management fee payable …………..…………………………………………………………………………………………………………………….. 7,874   8,027  
Performance-based incentive fee payable …………..……………………………………………………………………………………………. 6,024   5,864  
Interest payable ………….…………………………………………………………………………………………………………………………………….. 6,752   7,535  
Administrative services payable ………….……………………………..……………………………………………………………………………… 3,111   1,969  
Other liabilities and accrued expenses……………………………………………………………………………………………………………….. 3,035   3,767  
Total liabilities…………………………………………………………….…………………………………………………………..……….…$1,455,275   $1,537,229   
         
Net Assets        
Common stock, par value $0.01 per share, 200,000,000 and 200,000,000 common shares authorized,
respectively, and 54,554,634 and 54,554,634 shares issued and outstanding, respectively…………………		$546  $546  
Paid-in capital in excess of par …………….………………………...…………………………………………………………………………………. 1,117,930   1,117,930  
Accumulated distributable net loss ……………….…………………………………………………………………………………………………… (125,473)  (131,837) 
Total net assets……………………………………………………………..……………………………………………………………………$993,003   $986,639   
Net Asset Value Per Share…..……………………………………………………………………………………………………………………………..$18.20   $18.09   
  


SLR INVESTMENT CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share amounts)		 
  
  Three months ended 
 June 30, 2024 June 30, 2023
 
INVESTMENT INCOME:        
Interest:        
Companies less than 5% owned ........................................................................................................$40,015  $41,267  
Companies 5% to 25% owned............................................................................................................ 856   265  
Companies more than 25% owned .................................................................................................... 3,306   2,814  
Dividends:        
Companies more than 25% owned .................................................................................................... 12,482   11,177  
Other income:        
Companies less than 5% owned ........................................................................................................ 2,184   757  
Companies more than 25% owned .................................................................................................... 135   57  
Total investment income....................................................................................................$58,978  $56,337  
         
EXPENSES:        
Management fees ……………................................................................................................................................$7,875  $7,878  
Performance-based incentive fees …………......................................................................................................... 6,068   5,638  
Interest and other credit facility expenses …………….......................................................................................... 18,179   17,842  
Administrative services expense …………….......................................................................................................... 1,376   1,480  
Other general and administrative expenses ...................................................................................................... 1,206   948  
Total expenses.................................................................................................................... 34,704   33,786  
Performance-based incentive fees waived …………….......................................................................................... (44)  (125) 
Net expenses ..................................................................................................................... 34,660   33,661  
Net investment income .............................................................................................$24,318  $22,676  
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS:        
Net realized gain on investments and cash equivalents (companies less than 5% owned) ..............................$105  $498  
Net change in unrealized gain (loss) on investments and cash equivalents:        
Companies less than 5% owned ........................................................................................................ 63   5,181  
Companies 5% to 25% owned ........................................................................................................... -   (3,216) 
Companies more than 25% owned.................................................................................................... (1,258)  (6,144) 
Net change in unrealized loss on investments and cash equivalents ................................... (1,195)  (4,179) 
Net realized and unrealized loss on investments and cash equivalents.................... (1,090)  (3,681) 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS………………………………………………………………….
        
$23,228  $18,995  
EARNINGS PER SHARE …………...........................................................................................................................$0.43  $0.35  
  

About SLR Investment Corp.

SLR Investment Corp. is a closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. A specialty finance company with expertise in several niche markets, the Company primarily invests in leveraged, U.S. upper middle market companies in the form of cash flow, asset-based, and life sciences senior secured loans.

Forward-Looking Statements

Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: the expected stability of the Company’s earnings; the excess spread of the Company’s investments; the Company’s ability to opportunistically access the investment grade debt market; the market environment and its impact on the business prospects of SLRC and the prospects of SLRC’s portfolio companies; prospects for additional portfolio growth of SLRC; and the quality of, and the impact on the performance of SLRC from the investments that SLRC has made and expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: (i) changes in the economy, financial markets and political environment, including the impacts of inflation and changing interest rates; (ii) risks associated with possible disruption in the operations of SLRC or the economy generally due to terrorism, war or other geopolitical conflicts, natural disasters, or pandemics; (iii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (iv) conditions in SLRC’s operating areas, particularly with respect to business development companies or regulated investment companies; and (v) other considerations that may be disclosed from time to time in SLRC’s publicly disseminated documents and filings. SLRC has based the forward-looking statements included in this press release on information available to it on the date of this press release, and SLRC assumes no obligation to update any such forward-looking statements. Although SLRC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that SLRC in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.


FAQ

What was SLR Investment Corp.'s net investment income for Q2 2024?

SLR Investment Corp. reported a net investment income of $24.3 million, or $0.45 per share, for Q2 2024.

What is the declared quarterly distribution for SLRC?

The quarterly distribution declared by SLRC is $0.41 per share, payable on September 27, 2024.

What was SLRC's NAV per share as of June 30, 2024?

As of June 30, 2024, SLRC's net asset value (NAV) was $18.20 per share.

How did SLRC's investment portfolio perform in Q2 2024?

SLRC's investment portfolio had a fair value of $2.1 billion with diversified investments across approximately 800 issuers.

What were the net realized and unrealized losses for SLRC in Q2 2024?

SLRC reported net realized and unrealized losses of $1.1 million, or $0.02 per share, for Q2 2024.

What was SLRC's leverage ratio as of June 30, 2024?

SLRC's leverage ratio was 1.16x net debt-to-equity as of June 30, 2024.

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SLR Investment Corp.

NASDAQ:SLRC

SLRC Rankings

#2651 Ranked by Market Cap
#193 Ranked by Dividends

SLRC Latest News

Nov 6, 2024
SLR Investment Corp. Announces Quarter Ended September 30, 2024 Financial Results
Oct 1, 2024
SLR Investment Corp. Schedules the Release of its Financial Results for the Quarter Ended September 30, 2024
Sep 30, 2024
SLR Investment Corp. Announces Acquisition of Factoring Business
Jul 17, 2024
SLR Capital Partners Appoints Scottie Bevill as Senior Advisor
Jul 1, 2024
SLR Investment Corp. Schedules the Release of its Financial Results for the Quarter Ended June 30, 2024

SLRC Stock Data

878.60M
53.05M
2.72%
36.68%
0.33%
Asset Management
Financial Services
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United States of America
NEW YORK