Ares Capital Corp (ARCC) Announces Q3 2023 Financial Results: GAAP Net Income Per Share ...
GAAP net income per share for Q3 2023 stands at $0.89, a significant increase from $0.21 in Q3 2022.
ARCC's total assets increased to $22.92 billion in Q3 2023, up from $22.39 billion in December 2022.
The company declared a Q4 2023 dividend of $0.48 per share, payable on December 28, 2023.
New investment commitments of approximately $1.6 billion were made in Q3 2023.
On October 24, 2023, Ares Capital Corp (NASDAQ:ARCC) announced its financial results for the third quarter ended September 30, 2023. The company reported a significant year-over-year increase in GAAP net income per share, rising from $0.21 in Q3 2022 to $0.89 in Q3 2023. The company's total assets also saw an increase, standing at $22.92 billion as of September 30, 2023, up from $22.39 billion as of December 31, 2022.
Financial Highlights
ARCC's net investment income for Q3 2023 was $289 million, slightly higher than the $288 million reported for the same period in 2022. The company also reported net unrealized gains of $287 million, a significant turnaround from the net unrealized losses of $184 million in Q3 2022.
ARCC's portfolio investments at fair value stood at $21.93 billion as of September 30, 2023, a slight increase from $21.78 billion as of December 31, 2022. The company's stockholders' equity also increased to $10.82 billion in Q3 2023, up from $9.56 billion in December 2022.
ARCC's CEO, Kipp deVeer, commented on the company's performance, stating:
Our strong performance continued into the third quarter with year-over-year growth in both our GAAP and Core earnings per share primarily reflecting the benefits of higher rates and continued stable credit quality."
Portfolio and Investment Activity
In Q3 2023, ARCC made new investment commitments of approximately $1.6 billion, of which approximately $1.2 billion were funded. These new commitments included 20 new portfolio companies and 30 existing portfolio companies. As of September 30, 2023, 228 separate private equity sponsors were represented in ARCC's portfolio.
Liquidity and Capital Resources
As of September 30, 2023, ARCC had $527 million in cash and cash equivalents and $11.6 billion in total aggregate principal amount of debt outstanding. The company had approximately $4.8 billion available for additional borrowings under its existing credit facilities as of the same date.
Dividends
ARCC's Board of Directors declared a Q4 2023 dividend of $0.48 per share, payable on December 28, 2023, to stockholders of record as of December 15, 2023.
Recent Developments
From October 1, 2023, through October 18, 2023, ARCC made new investment commitments of approximately $410 million, of which $297 million were funded. During the same period, ARCC exited approximately $158 million of investment commitments.
This article first appeared on GuruFocus.
