SLR Investment Corp Reports Steady NAV and Record Originations in Q4 2023
Net Investment Income (NII): $23.9 million, or $0.44 per share for Q4 2023.
Net Asset Value (NAV): $18.09 per share as of December 31, 2023, showing stability from $18.06 as of September 30, 2023.
Quarterly Distribution: Declared at $0.41 per share, consistent with the previous distribution.
Portfolio Activity: Record high originations at $1,475.8 million for the year, with repayments totaling $1,343.7 million.
Investment Portfolio: Diversified across approximately 790 unique issuers, with 99.2% invested in senior secured loans.
Leverage: Net debt-to-equity ratio at 1.19x, within the target range.
Available Capital: Over $500 million, including anticipated available credit facility capacity.
On February 27, 2024, SLR Investment Corp (NASDAQ:SLRC) released its 8-K filing, announcing its financial results for the quarter and year ended December 31, 2023. The company, a closed-end investment company that has elected to be treated as a business development company, specializes in providing bespoke debt financing solutions to U.S. middle market businesses.
SLRC reported a net investment income of $23.9 million, or $0.44 per share, for the fourth quarter of 2023, marking a 7.3% year-over-year increase in quarterly net investment income per share. This growth represents the fourth consecutive quarter of NII growth, according to Michael Gross, Co-CEO of SLRC. The company's net asset value per share remained stable at $18.09, with a slight increase from the previous quarter's $18.06.
The company's financial achievements are significant, particularly in the asset management industry, where stable NAV and growing NII are indicators of sound investment strategy and portfolio management. SLRC's record originations and repayments throughout the year reflect a dynamic portfolio with healthy turnover, allowing the company to leverage an attractive investment environment.
Portfolio Performance and Financial Condition
Co-CEO Bruce Spohler highlighted the strength of the 2023 investments, expecting them to produce strong risk-adjusted returns. The company's focus on senior lending programs contributed to an expansion in NII, and the credit quality metrics remained robust, evidenced by the sequential increase in NAV and low levels of non-accruals.
The company's portfolio is diversified across approximately 790 unique issuers, operating in over 110 industries, with an average exposure of $3.9 million or 0.1% per issuer. As of December 31, 2023, 99.2% of the company's Comprehensive Investment Portfolio was invested in senior secured loans, with 97.7% held in first lien senior secured loans.
Financial Highlights and Liquidity
For the year ended December 31, 2023, SLRC's net investment income totaled $92.1 million, or $1.69 per share, with a net increase in net assets from operations of $76.4 million, or $1.40 per share. The company's leverage, at a net debt-to-equity ratio of 1.19x, falls within its target range, indicating a balanced approach to capital structure management.
SLRC's available capital, including anticipated available credit facility capacity, exceeded $500 million, providing substantial liquidity for future investments and operations. This level of available capital is crucial for SLRC's ability to act on investment opportunities and manage its portfolio effectively.
"We are pleased to report a 7.3% increase year-over-year in our quarterly net investment income (NII) per share, which represents the fourth consecutive quarter of NII growth," said Michael Gross, the Companys Co-CEO.
SLRC's financial statements reflect a company that has effectively navigated the investment landscape, capitalizing on opportunities to grow its income while maintaining a stable NAV. The company's strategic approach to portfolio diversification and emphasis on senior secured loans positions it well for continued success in the asset management industry.
For more detailed information on SLR Investment Corp's financial results, including the earnings conference call and webcast, investors and interested parties are encouraged to visit the company's website.
As SLRC continues to execute its investment strategy and manage its comprehensive portfolio, the company remains a notable entity within the asset management sector, demonstrating resilience and growth potential in a complex financial environment.
For further inquiries, please contact SLR Investment Corp's Investor Relations at slrinvestorrelations@slrcp.com or (646) 308-8770.
Explore the complete 8-K earnings release (here) from SLR Investment Corp for further details.
This article first appeared on GuruFocus.
