Q4 2024 Saratoga Investment Corp Earnings Call Transcript
Key Points
- Adjusted net investment income per share for the year increased by 44% compared to last year, reflecting strong portfolio performance and growth in assets under management.
- Saratoga Investment Corp's dividend of $0.73 per share for the quarter ended February 29, 2024, represents a significant increase and is well-covered by earnings, with a dividend yield of 12.4%.
- The company has a high credit quality with 98.1% of credits rated in the highest category and a strong focus on first lien debt, which comprises 86% of investments.
- Saratoga Investment Corp successfully raised $48 million of equity at NAV, enhancing balance sheet strength and supporting strong originations.
- The company has maintained a substantial amount of investment capacity, totaling $207 million, to support portfolio growth and navigate economic uncertainties.
- Adjusted net investment income per share for Q4 decreased by 2.5% compared to last year and 4% compared to last quarter, influenced by dilution from equity issuances and higher excise taxes.
- The company experienced a $13.8 million markdown in its core BDC portfolio this quarter due to two discrete credits, impacting overall portfolio valuation.
- Despite overall portfolio health, there are still three investments on nonaccrual, indicating some level of distress within specific portfolio components.
- The latest 12 months return on equity decreased to 2.5%, down from 7.2% last year, reflecting some challenges in maintaining previous performance levels.
- NAV per share has decreased by 7% from last year and 1% from last quarter, primarily due to net unrealized depreciation and dividend payouts exceeding GAAP NII.
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Saratoga Investment Corp's 2024 fiscal year and fourth quarter financial results conference call. Please note that today's call is being recorded. And during today's presentation, all parties will be in listen-only mode. Following management's prepared remarks will be open the line for questions.
At this time, I'd like to turn the call over to you sorry, total Investment Corp's Chief Financial Chief Compliance Officer, Mr. Henri Steenkamp. Sir, please go ahead.
Thank you. I would like to welcome everyone to Saratoga Investment Corp's 2024 fiscal year and fourth quarter earnings conference call. Today's conference call includes forward-looking statements and projections. We ask you to refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these forward-looking statements and projections.
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