Main Street Capital Corp (MAIN) Announces Q3 2023 Results: Net Investment Income of $0.99 Per Share
Net investment income of $82.2 million, or $0.99 per share
Distributable net investment income of $86.2 million, or $1.04 per share
Total investment income of $123.2 million
Net asset value of $28.33 per share
On November 2, 2023, Main Street Capital Corp (NYSE:MAIN) announced its financial results for the third quarter ended September 30, 2023. The company reported a net investment income of $82.2 million, or $0.99 per share, and a distributable net investment income of $86.2 million, or $1.04 per share. The total investment income for the quarter stood at $123.2 million.
Financial Highlights
MAIN reported a net increase in net assets resulting from operations of $103.3 million, or $1.25 per share. The net asset value per share at the end of the quarter was $28.33, representing an increase of 2.3% compared to $27.69 per share at the end of Q2 2023, and a 5.5% increase compared to $26.86 per share at the end of 2022.
The company declared regular monthly dividends totaling $0.705 per share for Q4 2023, representing a 6.8% increase from the regular monthly dividends paid in Q4 2022. Additionally, a supplemental dividend of $0.275 per share was declared and paid, resulting in total dividends paid in Q3 2023 of $0.965 per share. This represents a 29.5% increase from the total dividends paid in Q3 2022 and a 7.2% increase from the total dividends paid in Q2 2023.
Investment Portfolio Performance
During the quarter, MAIN completed $19.6 million in total lower middle market (LMM) portfolio investments. After repayments of debt principal and return of invested equity capital from several LMM portfolio investments, there was a net decrease of $5.0 million in the total cost basis of the LMM investment portfolio.
The company also completed $134.6 million in total private loan portfolio investments. After repayments of debt principal from and sale of several private loan portfolio investments, there was a net increase of $53.7 million in the total cost basis of the private loan investment portfolio.
CEO Commentary
In commenting on Main Streets operating results for the third quarter of 2023, Dwayne L. Hyzak, Main Streets Chief Executive Officer, stated, We are pleased with our performance in the third quarter, which included continued strength in the underlying performance of the majority of our lower middle market and private loan portfolio companies and significant contributions from our asset management business. Our results were highlighted by a return on equity of 18%, which highlights the strength of the current investment income generating capabilities of our existing investment portfolio and the unique benefits provided by the equity investments in our lower middle market investment portfolio and by our asset management business, both of which also contributed meaningful fair value increases to our third quarter results. We believe that these results demonstrate the continued and sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies, the unique contributions of our asset management business and the underlying strength and quality of our portfolio companies. We are also pleased that we were able to significantly expand our commitments under our credit facilities with the support of existing and new lender relationships, which we believe is another testament to the strength of our platform. We continue to focus on maintaining a conservative capital structure and significant liquidity as one of our key strengths, and we believe this strength has us well positioned for the future.
Explore the complete 8-K earnings release (here) from Main Street Capital Corp for further details.
This article first appeared on GuruFocus.
