Ares Capital (NASDAQ:ARCC) Bank of America Securities 2024 Financial Services Conference Call February 21, 2024 12:50 PM ET Company Participants Kort Schnabel - Co-President, Los Angeles Conference Call Participants Derek Hewett - Bank of America Merrill Lynch Derek Hewett Good afternoon. I'm Derek Hewett from Bank of America Securities. I cover the Specialty Finance sector, including Business Development companies. With us today is, Kort Schnabel, he is Co-President of Ares Capital Corporation and also a p ...

Ares Capital (NASDAQ:ARCC) Bank of America Securities 2024 Financial Services Conference Call February 21, 2024 12:50 PM ET Company Participants Kort Schnabel - Co-President, Los Angeles Conference Call Participants Derek Hewett - Bank of America Merrill Lynch Derek Hewett Good afternoon. I'm Derek Hewett from Bank of America Securities. I cover the Specialty Finance sector, including Business Development companies. With us today is, Kort Schnabel, he is Co-President of Ares Capital Corporation and also a p ...

JONGHO SHINAres Capital (NASDAQ:ARCC) operates as a business development corporation (BDC) lending into both distressed and middle-market businesses. It uses leverage to enhance returns. As with some BDCs, many of Ares' investment instruments contain floating rate clauses for both investments and debt. The two tend to increase and decrease with changing marketplace interest rates, but the movement is biased. In Ares' case, the return bias leans toward higher with higher rates and vice versa. The Chairma ...

tadamichi Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving the market or that investors ought to be mindful of. This update covers the period through the second week of Februar ...

Pgiam/iStock via Getty Images Ares Capital (ARCC) and Main Street Capital (MAIN) are widely recognized for being the leading blue chips in the Business Development Company (i.e., "BDC") sector (BIZD). However, right now we wouldn't want to own either of them. In this article, we explain why and share three BDCs that we like more at the moment. Why We Don't Like ARCC Stock Or MAIN Stock Right Now ARCC and MAIN are wildly popular with retirees with legions of loyal fans for good reason: They pay very attract ...

Core Viewpoint - Ares Capital Corporation is well-positioned to deliver stable net investment income in 2024, regardless of potential recession concerns, with a strong performance in the fourth quarter and a growing net asset value [2][15]. Financial Performance - In the fourth quarter, Ares Capital reported net investment income of $0.63 per share, a 7% increase QoQ, leading to a dividend coverage ratio improvement to 125% [11][12]. - The company's net asset value rose by $0.25 per share QoQ, reaching $19.24, reflecting a 1.3% increase [2][13]. - Ares Capital's portfolio value grew 4% QoQ to $22.9 billion, driven by new fundings totaling $699 million in the fourth quarter [4][5]. Credit Quality - The non-accrual ratio remained stable at 0.6% for both 3Q-23 and 4Q-23, indicating that the portfolio performed according to expectations [8][11]. - First Lien investments increased to 44%, while Second Liens decreased to 16%, with First and Second Senior Secured Loans comprising 61% of the total portfolio [4][8]. Market Environment - Federal Reserve Chair Jerome Powell indicated a cautious approach to rate cuts, suggesting a prolonged higher interest rate environment, which is favorable for Ares Capital [2][3]. - Ares Capital's portfolio is positioned with 69% floating rate, providing potential for net investment income growth in a stable or declining interest rate environment [6][15]. Investment Outlook - Ares Capital is classified as a Buy due to its consistent performance and improving credit quality, making it an attractive option for passive income investors [3][15]. - The company offers a 10% dividend yield, supported by a robust margin of safety in its dividend coverage [15].

Pick a category. You'll find some members of that category that especially stand above the rest of the pack.In the category of dividend stocks, I think Ares Capital (ARCC 0.30%) serves as a great example. The business development company (BDC) offers a dividend yield of more than 9.6%. This ultra-high-yield dividend stock looks like a no-brainer buy right now for income investors.Firing on (nearly) all cylindersAres Capital reported its fourth-quarter and full-year results on Thursday. It's fair to say the ...

Shares of Ares Capital Corporation (ARCC) gained 1.3% following the release of its fourth-quarter and 2023 results. Quarterly core earnings of 63 cents per share surpassed the Zacks Consensus Estimate of 59 cents. The bottom line was in line with the prior-year quarter’s figure.Results were primarily aided by an improvement in the total investment income. Also, the company’s portfolio activity was robust in the quarter. However, an increase in expenses hurt the results to some extent.GAAP net income was $41 ...

0 42 65 GENERAL 155 112 42 PALETTE 4 94 109 127 127 127 Credit 0 42 65 Private Equity BUSINESS 2 87 133 SECTOR PALETTE Real Estate 71 126 163 Strategic Initiative s 120 163 198 Fourth Quarter 2023 Earnings Presentation 0 42 65 Important Notice GENERAL 155 112 42 PALETTE This presentation contains “forward-looking statementsˮ within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are 4 94 109 subject t ...

Ares Capital (NASDAQ:ARCC) Q4 2023 Earnings Conference Call February 7, 2024 11:00 AM ET Company Participants John Stilmar – Partner, Co-Head of Public Markets Investor Relations Kipp DeVeer – Chief Executive Officer Penni Roll – Chief Financial Officer Kort Schnabel – Co-President, Los Angeles Conference Call Participants John Hecht – Jefferies Finian O'Shea – Wells Fargo Securities Melissa Wedel – JPMorgan Ryan Lynch – KBW Robert Dodd – Raymond James Mark Hughes – Truist Erik Zwick – Hovde Group Casey Ale ...