SLR Investment Corp. Announces Quarter Ended September 30, 2024 Financial Results
SLR Investment Corp reported Q3 2024 net investment income of $24.3 million ($0.45 per share), with a stable NAV of $18.20 per share. The Board declared a quarterly distribution of $0.41 per share. The company's investment portfolio fair value stood at $2.1 billion, with net assets of $992.7 million. The Comprehensive Investment Portfolio, valued at $3.2 billion, spans approximately 850 unique issuers across 109 industries. Portfolio quality remained strong with 99.6% performing investments on a fair value basis. The company maintained a net debt-to-equity ratio of 1.10x and had over $750 million in available capital.
SLR Investment Corp ha riportato per il terzo trimestre del 2024 un reddito netto da investimenti di 24,3 milioni di dollari (0,45 dollari per azione), con un NAV stabile di 18,20 dollari per azione. Il Consiglio ha dichiarato una distribuzione trimestrale di 0,41 dollari per azione. Il valore equo del portafoglio investimenti dell'azienda era di 2,1 miliardi di dollari, con un patrimonio netto di 992,7 milioni di dollari. Il Portafoglio di Investimenti Completo, valutato a 3,2 miliardi di dollari, comprende circa 850 emittenti unici in 109 settori. La qualità del portafoglio è rimasta forte, con il 99,6% degli investimenti performanti su base di valore equo. L'azienda ha mantenuto un rapporto debito-patrimonio netto di 1,10x e aveva oltre 750 milioni di dollari di capitale disponibile.
SLR Investment Corp reportó un ingreso neto de inversiones de 24.3 millones de dólares ($0.45 por acción) para el tercer trimestre de 2024, con un NAV estable de 18.20 dólares por acción. La Junta declaró una distribución trimestral de 0.41 dólares por acción. El valor justo del portafolio de inversiones de la compañía se situó en 2.1 mil millones de dólares, con activos netos de 992.7 millones de dólares. El Portafolio de Inversiones Integral, valorado en 3.2 mil millones de dólares, abarca aproximadamente 850 emisores únicos en 109 industrias. La calidad del portafolio se mantuvo sólida con el 99.6% de las inversiones en rendimiento sobre una base de valor justo. La compañía mantuvo una relación de deuda neta a capital de 1.10x y tenía más de 750 millones de dólares en capital disponible.
SLR Investment Corp는 2024년 3분기 순투자수익을 2430만 달러 ($0.45 per 주식)로 보고했으며, 주당 NAV는 18.20 달러로 안정적이었습니다. 이사회는 주당 0.41 달러의 분기 배당금을 선언했습니다. 회사의 투자 포트폴리오 공정 가치는 21억 달러였으며, 순자산은 9억 9270만 달러에 달했습니다. 32억 달러로 평가된 포괄적 투자 포트폴리오는 109개 산업에 걸쳐 약 850개의 고유 발행자로 구성되어 있습니다. 포트폴리오 품질은 공정 가치 기준으로 99.6%의 성과를 보였습니다. 회사는 1.10배의 순부채비율을 유지했으며, 7억 5천만 달러 이상의 사용 가능한 자본을 보유하고 있었습니다.
SLR Investment Corp a rapporté pour le troisième trimestre 2024 un revenu net d'investissement de 24,3 millions de dollars (0,45 dollar par action), avec une NAV stable de 18,20 dollars par action. Le conseil d'administration a déclaré une distribution trimestrielle de 0,41 dollar par action. La valeur de marché du portefeuille d'investissement de l'entreprise s'élevait à 2,1 milliards de dollars, avec des actifs nets de 992,7 millions de dollars. Le portefeuille d'investissement complet, évalué à 3,2 milliards de dollars, s'étend sur environ 850 émetteurs uniques dans 109 industries. La qualité du portefeuille est restée solide avec 99,6% des investissements performants sur une base de valeur équitable. L'entreprise a maintenu un ratio de dette nette à fonds propres de 1,10x et disposait de plus de 750 millions de dollars en capital disponible.
SLR Investment Corp meldete ein Nettoanlageergebnis von 24,3 Millionen Dollar (0,45 Dollar pro Aktie) für das 3. Quartal 2024, mit einem stabilen NAV von 18,20 Dollar pro Aktie. Der Vorstand beschloss eine vierteljährliche Ausschüttung von 0,41 Dollar pro Aktie. Der faire Wert des Anlageportfolios des Unternehmens betrug 2,1 Milliarden Dollar, mit Nettomitteln von 992,7 Millionen Dollar. Das umfassende Anlageportfolio mit einem Wert von 3,2 Milliarden Dollar umfasst ungefähr 850 einzigartige Emittenten aus 109 Branchen. Die Qualität des Portfolios blieb stark mit 99,6% ertragbringenden Investitionen auf faire Wertbasis. Das Unternehmen hielt ein Verhältnis von Nettoverschuldung zu Eigenkapital von 1,10x und verfügte über mehr als 750 Millionen Dollar an verfügbaren Mitteln.
- Net investment income increased to $0.45 per share from $0.43 YoY
- Stable NAV at $18.20 per share
- Strong portfolio quality with 99.6% performing investments
- Comprehensive portfolio diversification across 850 issuers
- 98.3% of portfolio in senior secured loans
- Net realized and unrealized losses of $2.3 million in Q3 2024
- Slight decrease in earnings per share to $0.40 from $0.49 YoY
Insights
Net Investment Income of
Declared Quarterly Distribution of
Stable NAV and NII per Share
NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- SLR Investment Corp. (NASDAQ: SLRC) (the “Company”, “SLRC”, “we”, “us”, or “our”) today reported net investment income (“NII”) of
As of September 30, 2024, net asset value (“NAV”) was
“Third quarter NII per share reflected another quarter of stability and ample dividend coverage. SLRC’s specialty finance loans continue to be a source of unique and differentiated investments, which was visible in an active quarter of originations in SLRC’s asset-based lending strategy, including the acquisition of a factoring business, and contributed to another quarter of growth in the comprehensive investment portfolio,” said Michael Gross, Co-CEO. “SLRC’s ability to pivot to the most attractive risk-adjusted return investments across its strategies provides several alternatives to take advantage of dynamic market conditions and manage risk. Today we are seeing compelling investments across our asset-based lending strategy.”
“The consistency of NAV per share in 2024 is a testament to SLR’s multi-strategy approach to private credit investing, providing resiliency across economic and interest rate cycles from asset classes with significant downside protection,” said Bruce Spohler, Co-CEO. “We continue to be encouraged by the overall credit quality of our investment portfolio, which is evidenced by another quarter of NAV stability, no increase in our low level of non-accrual investments, a low level of watch list investments, minimal payment-in-kind income, and broad diversification.”
FINANCIAL HIGHLIGHTS FOR QUARTER ENDED SEPTEMBER 30, 2024:
Investment portfolio fair value:
Net assets:
Leverage: 1.10x net debt-to-equity
Net investment income:
Net realized and unrealized losses:
Net increase in net assets from operations:
COMPREHENSIVE INVESTMENT PORTFOLIO(1) HIGHLIGHTS AND ACTIVITY(2) FOR QUARTER ENDED SEPTEMBER 30, 2024:
Portfolio fair value:
Number of Unique issuers: approximately 850
Investments made during the quarter:
Investments prepaid and sold during the quarter:
(1) The Comprehensive Investment Portfolio for the quarter ended September 30, 2024 is comprised of SLRC’s investment portfolio and SLR Credit Solutions’ (“SLR-CS”) portfolio, SLR Equipment Finance’s (“SLR-EF”) portfolio, Kingsbridge Holdings, LLC’s (“KBH”) portfolio, SLR Business Credit’s (“SLR-BC”) portfolio, SLR Healthcare ABL’s (“SLR-HC ABL”) 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 Investment Portfolio activity for the quarter ended September 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 September 30, 2024, SLRC had Comprehensive Investment Portfolio originations of
| Asset Class | Sponsor Finance(1) | Asset-based Lending(2) | Equipment Finance(3) | Life Science Finance | Total Comprehensive Investment Portfolio Activity | |||||
| Originations | ||||||||||
| Repayments / Amortization | ||||||||||
| Net Portfolio Activity | ($24.3) | $136.2 | $33.2 | ($76.9) | $ 68.2 | |||||
(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 portfolios, as well as asset-based loans on the Company’s balance sheet.
(3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio.
Comprehensive Investment Portfolio Composition
The Comprehensive Investment Portfolio is diversified across approximately 850 unique issuers, operating in over 109 industries, and resulting in an average exposure of
SLRC’s Comprehensive Investment Portfolio composition by asset class as of September 30, 2024 was as follows:
| Comprehensive Investment Portfolio Composition (at fair value) | Amount | Weighted Average Asset Yield(5) | ||||
| ($mm) | % | |||||
| Senior Secured Investments Cash Flow Loans (Sponsor Finance)(1) | ||||||
| Asset-Based Loans(2) | ||||||
| Equipment Financings(3) | ||||||
| Life Science Loans | ||||||
| Total Senior Secured Investments | $3,137.2 | 98.3% | 11.8% | |||
| Equity and Equity-like Securities | ||||||
| Total Comprehensive Investment Portfolio | $3,192.5 | 100.0% | ||||
| Floating Rate Investments(4) | ||||||
| First Lien Senior Secured Loans | ||||||
| Second Lien Senior Secured Asset-Based Loans | ||||||
| Second Lien Senior Secured Cash Flow Loans | ||||||
(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 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 portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) 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 weighted average asset yield calculation for Life Science loans includes the amortization of expected exit/success fees. 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 (IRR) 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 September 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 September 30, 2024 compared to the portfolio as of September 30, 2024, annualized. The weighted average yield for the KBH equipment leasing portfolio represents the blended yield from the company’s 1st lien loan on par value and the annualized dividend yield on the cost basis of the company’s equity investment as of September 30, 2024.
SLR INVESTMENT CORP. PORTFOLIO
Asset Quality
As of September 30, 2024,
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 September 30, 2024, the composition of our investment portfolio, on a risk ratings basis, was as follows:
| Internal Investment Rating | Investments at Fair Value ($mm) | % of Total Portfolio | |
| 1 | |||
| 2 | |||
| 3 | |||
| 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 |
| 9/30/2024 | $59.8 | ||||
| % Contribution | 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 September 30, 2024, the Company and its
In Q3 2024, the Company earned income of
SLR Investment Corp.’s Results of Operations for the Quarter Ended September 30, 2024 compared to the Quarter Ended September 30, 2023
Investment Income
SLRC’s gross investment income totaled
Expenses
SLRC’s net expenses totaled
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 September 30, 2024 and 2023,
Net Investment Income
SLRC’s net investment income totaled
Net Realized and Unrealized Gain (Loss)
Net realized and unrealized gains / (losses) for the fiscal quarters ended September 30, 2024 and 2023 totaled (
Net Increase in Net Assets Resulting from Operations
For the three months ended September 30, 2024 and 2023, the Company had a net increase in net assets resulting from operations of
Capital and Liquidity
Credit Facilities
As of September 30, 2024, the Company had
Unsecured Debt
As of September 30, 2024, the Company had
Leverage
As of September 30, 2024, the Company’s net debt-to-equity ratio was 1.10x and compares to 1.21x as of September 30, 2023 and the Company’s target range of 0.9x to 1.25x.
Available Capital
As of September 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
Unfunded Commitments
As of September 30, 2024, excluding commitments to SLR-CS, SLR-BC, SLR-HC ABL and SSLP, over which the Company has discretion to fund, the Company had unfunded commitments of approximately
Subsequent Events
Distributions
On November 6, 2024, the Board declared a quarterly distribution of
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, November 7, 2024. All interested parties may participate in the conference call by dialing (800) 445-7795 approximately 5-10 minutes prior to the call, international callers should dial (203) 518-9856. Participants should reference SLR Investment Corp. and Conference ID: SLRC3Q24. A telephone replay will be available until November 21, 2024 and can be accessed by dialing (800) 839-5490. International callers should dial (402) 220-2550. 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)
| September 30, 2024 | December 31, 2023 | ||
| Assets | |||
| Investments at fair value: | |||
| Companies less than | |||
| Companies | 90,259 | 44,250 | |
| Companies more than | 874,528 | 839,074 | |
| Cash | 22,959 | 11,864 | |
| Cash equivalents (cost: | 322,674 | 332,290 | |
| Dividends receivable | 12,151 | 11,768 | |
| Interest receivable | 10,459 | 11,034 | |
| Receivable for investments sold | 1,870 | 1,538 | |
| Prepaid expenses and other assets | 771 | 608 | |
| Total assets | $2,442,912 | $2,523,868 | |
| Liabilities | |||
| Debt ( | |||
| Payable for investments and cash equivalents purchased | 322,694 | 332,290 | |
| Management fee payable | 7,893 | 8,027 | |
| Performance-based incentive fee payable | 6,036 | 5,864 | |
| Interest payable | 6,303 | 7,535 | |
| Administrative services payable | 2,502 | 1,969 | |
| Other liabilities and accrued expenses… | 2,845 | 3,767 | |
| Total liabilities… | $1,450,227 | $1,537,229 | |
| Net Assets | |||
| Common stock, par value | |||
| Paid-in capital in excess of par | 1,117,930 | 1,117,930 | |
| Accumulated distributable net loss | (125,791) | (131,837) | |
| Total net assets | $992,685 | $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 | ||||||
| September 30, 2024 | September 30, 2023 | |||||
| INVESTMENT INCOME: | ||||||
| Interest: | ||||||
| Companies less than | ||||||
| Companies | 926 | 816 | ||||
| Companies more than | 3,379 | 2,879 | ||||
| Dividends: | ||||||
| Companies | 91 | -- | ||||
| Companies more than | 12,487 | 11,429 | ||||
| Other income: | ||||||
| Companies less than | 1,688 | 735 | ||||
| Companies more than | 132 | 86 | ||||
| Total investment income | ||||||
| EXPENSES: | ||||||
| Management fees | ||||||
| Performance-based incentive fees | 6,077 | 5,796 | ||||
| Interest and other credit facility expenses | 18,913 | 19,874 | ||||
| Administrative services expense | 1,392 | 1,575 | ||||
| Other general and administrative expenses | 1,189 | 1,161 | ||||
| Total expenses | 35,464 | 36,457 | ||||
| Performance-based incentive fees waived | (41) | (175) | ||||
| Net expenses | 35,423 | 36,282 | ||||
| Net investment income | ||||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS: | ||||||
| Net realized loss on investments and cash equivalents (companies less than | (2,748) | (30,951) | ||||
| Net change in unrealized gain (loss) on investments and cash equivalents: | ||||||
| Companies less than | (4,027) | 33,439 | ||||
| Companies | 3,411 | 1,065 | ||||
| Companies more than | 1,065 | 35 | ||||
| Net change in unrealized gain (loss) on investments and cash equivalents | ||||||
| 449 | 34,539 | |||||
| Net realized and unrealized gain (loss) on investments and cash equivalents | ||||||
| (2,299) | 3,588 | |||||
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | ||||||
| $22,049 | $26,947 | |||||
| EARNINGS PER SHARE | $0.40 | $0.49 | ||||
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 and distributions to shareholders; the Company’s access to deal flow and attractive investment opportunities; 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.
Contact
SLR Investment Corp.
Investor Relations
slrinvestorrelations@slrcp.com | (646) 308-8770
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