Trinity Capital Inc (TRIN, Financial), a leading provider of diversified financial solutions to growth-stage companies, announced its financial results for the quarter ended September 30, 2023, on November 1, 2023. The company reported a 20% year-over-year increase in total investment income, which amounted to $46.4 million. Net investment income (NII) rose by 25.6% YoY to $23.4 million, or $0.58 per basic share. The company also reported a net increase in net assets resulting from operations of $16.8 million, or $0.42 per basic share.
Financial Highlights
The company's Return on Average Equity (ROAE) stood at 17.6% (NII/Average Equity), and the Return on Average Assets (ROAA) was 8.0% (NII/Average Assets). The Net Asset Value increased to $13.17 per share. Trinity Capital made aggregate debt and equity investment commitments of $228.3 million and funded total gross investments of $149.1 million. The company also declared an 11th consecutive regular dividend increase, with the third-quarter distribution coming in at $0.54 per share.
Management Commentary
Steve Brown, Chairman and Chief Executive Officer of Trinity Capital, commented on the company's performance,
We’re very pleased with our overall third quarter performance and record NII. Our unique lending platform positions us as the partner of choice for our portfolio companies as we support them through their various growth stages, all while generating meaningful returns for our shareholders."
Financial Tables
As of September 30, 2023, Trinity Capital’s investment portfolio had an aggregate fair value of approximately $1.1 billion. The portfolio was comprised of approximately $840.7 million in secured loans, $223.2 million in equipment financings, and $52.7 million in equity and warrants across 121 portfolio companies. The company's debt portfolio is comprised of 74.5% first lien loans and 25.5% second lien loans, with 73.8% of the debt portfolio at floating rates based on principal outstanding.
Future Outlook
Trinity Capital is well-positioned to continue supporting its portfolio companies through their various growth stages. The company's strong financial performance in Q3 2023 reflects its commitment to generating meaningful returns for its shareholders. With a robust investment portfolio and a strategic approach to investment commitments, Trinity Capital is poised for continued growth in the coming quarters.
Explore the complete 8-K earnings release (here) from Trinity Capital Inc for further details.
