SuRo Capital Corp. Reports Notable Increase in Net Asset Value for Q3 2023
Net Asset Value per share increased to $8.41 as of September 30, 2023, from $7.35 at the end of the previous quarter.
Investment portfolio fair value stood at approximately $193.5 million, excluding short-term US treasuries.
Company repurchased 3.2 million shares for approximately $14.2 million under the Share Repurchase Program and Modified Dutch Auction Tender Offer.
Top five investments represent about 61% of the total investment portfolio at fair value.
On November 8, 2023, SuRo Capital Corp (NASDAQ:SSSS) disclosed its financial results for the third quarter of 2023, revealing a net asset value (NAV) of $8.41 per share as of September 30, 2023. This marks a significant increase from $7.35 per share at the end of the second quarter and $7.83 per share year-over-year.
Performance Amid Market Challenges
Despite the ongoing market volatility exacerbated by rising interest rates and geopolitical tensions, SuRo Capital Corp (NASDAQ:SSSS) has navigated the turbulent waters with strategic investments and share repurchases. Chairman and CEO Mark Klein acknowledged the challenges but remained optimistic about the quality of investment opportunities available.
Despite these cross currents, we remain steadfast in our belief there are high-quality opportunities available at attractive prices,"
Klein stated.
Investment Portfolio Overview
As of September 30, 2023, SuRo Capital Corp (NASDAQ:SSSS) held investments in 39 portfolio companies, with the top five investments comprising approximately 61% of the total portfolio at fair value. Notable investments include Learneo, Inc. (formerly Course Hero, Inc.) and PSQ Holdings, Inc. (doing business as PublicSq.), which alone constitute over 43% of the portfolio.
Financial Results Summary
The third quarter saw SuRo Capital Corp (NASDAQ:SSSS) report a net investment loss of $2.7 million, or $0.11 per share, and a net realized loss on investments of $1.5 million, or $0.06 per share. However, the company experienced a net change in unrealized appreciation of investments of $29.3 million, or $1.16 per share, leading to a net increase in net assets resulting from operations of $25.2 million, or $0.99 per share.
Share Repurchase Program
The company's Board of Directors authorized an extension and expansion of the Share Repurchase Program, demonstrating confidence in the intrinsic value of the company's stock.
As we have demonstrated throughout the preceding quarters and years, we are highly focused on balancing deploying capital between new investment opportunities and share repurchases to maximize shareholder value,"
Klein concluded.
Liquidity and Capital Allocation
SuRo Capital Corp (NASDAQ:SSSS)'s liquid assets totaled approximately $105.4 million as of September 30, 2023. This includes cash, short-term US treasuries, and securities of publicly traded portfolio companies not subject to lock-up restrictions.
Looking Ahead
With a solid balance sheet and a strategic approach to capital deployment, SuRo Capital Corp (NASDAQ:SSSS) is well-positioned to continue its pursuit of value creation for shareholders. The company's management will discuss these results in more detail during a conference call and webcast for investors.
For more detailed information on SuRo Capital Corp (NASDAQ:SSSS)'s financial results, please visit www.surocap.com.
Explore the complete 8-K earnings release (here) from SuRo Capital Corp for further details.
This article first appeared on GuruFocus.
