Financial Data and Key Metrics Changes - SLR Investment Corporation reported net investment income of $0.40 per share and net income of $0.44 per share for Q2 2025, with NAV per share increasing slightly to $18.19 from $18.16 in Q1 2025 [5][12] - The annualized net investment income returned 10% equity in the quarter, although net investment income per share was $0.01 below the base dividend of $0.41 per share [6] - Gross investment income totaled $53.9 million, up from $53.2 million in the previous quarter, while net expenses increased to $32.3 million from $31.1 million [16] Business Line Data and Key Metrics Changes - The asset-based lending (ABL) portfolio grew to over $1.3 billion, representing approximately 42% of the comprehensive portfolio, with a record $373 million in new ABL originations during the quarter [20][21] - The equipment finance portfolio totaled just over $1 billion, accounting for nearly 33% of the comprehensive portfolio, with a stable credit profile and a weighted average asset level yield of 11.6% [25] - The life sciences portfolio amounted to approximately $215 million, contributing 12% of gross investment income for the quarter, with 75% of the portfolio invested in companies with over twelve months of cash runway [26][27] Market Data and Key Metrics Changes - Approximately 96% of Q2 originations were in specialty finance, reflecting favorable market conditions that provide greater risk-adjusted returns [9] - The company has over $650 million available capital to deploy, positioning it to take advantage of stable or softening economic conditions [11] Company Strategy and Development Direction - The company continues to shift its portfolio towards specialty finance strategies due to their attractive risk-adjusted returns and downside protection [34] - SLR has expanded its origination funnel and broadened sourcing relationships, contributing to increased deal flow and recognition in the market [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the diversified and predominantly asset-backed portfolio's ability to deliver attractive results across economic cycles, despite looming economic uncertainties [34] - The company remains opportunistic and prudent in capital deployment, with a focus on maintaining a diversified investment portfolio [35] Other Important Information - The company declared a Q3 2025 quarterly base distribution of $0.41 per share, payable on September 26, 2025 [17] - SLR's investment grade rating by Fitch, Moody's, and DBRS supports its strong credit quality metrics [13] Q&A Session Summary Question: Impact of new originations on Q2 results - New originations had limited impact on Q2 results due to timing, with average yield on new investments at 11.8% compared to exits at just over 10% [40] Question: Pipeline entering Q3 - The pipeline is geared towards new opportunities, expected to align with traditional activity levels despite seasonal slowdowns [41] Question: Competition in ABL market - No significant new entrants are observed in the ABL market due to the complexity and infrastructure required [42][43] Question: Concerns in sectors or economy - No significant concerns noted, with focus on non-cyclical sectors providing protection against economic headwinds [45] Question: SSLP income and future distributions - The SSLP income is expected to normalize as the portfolio rebuilds, with distributions anticipated to grow accordingly [60][61] Question: Equipment finance portfolio valuation - The decline in fair value is attributed to a strategic pullback on risk, with plans to rebuild the portfolio in the coming quarters [67]

SLR Investment (SLRC) came out with quarterly earnings of $0.4 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.44%. A quarter ago, it was expected that this business development company would post earnings of $0.41 per share when it actually produced earnings of $0.41, delivering no surprise.Over the last four quarters, th ...

[Q2 2025 Financial Results Overview](index=1&type=section&id=Q2%202025%20Financial%20Results%20Overview) SLR Investment Corp. reported Q2 2025 NII of $0.40 per share, net assets up $0.44 per share, NAV at $18.19, and a $0.41 quarterly distribution [Financial Highlights & Key Announcements](index=1&type=section&id=Financial%20Highlights%20%26%20Key%20Announcements) SLR Investment Corp. reported Q2 2025 NII of $0.40 per share, a net increase in net assets of $0.44 per share, and a quarterly distribution of $0.41 per share Financial Metrics | Metric | Value | | :--- | :--- | | Net Investment Income (NII) | $21.6 million | | NII per Share | $0.40 | | Net Asset Value (NAV) per Share | $18.19 | | Quarterly Distribution per Share | $0.41 | | Net Increase in Net Assets from Operations | $24.2 million | | Net Increase in Net Assets per Share | $0.44 | Portfolio and Leverage Metrics (as of June 30, 2025) | Metric (as of June 30, 2025) | Value | | :--- | :--- | | Investment Portfolio Fair Value | $2.1 billion | | Comprehensive Investment Portfolio Fair Value | $3.2 billion | | Non-accruals (at fair value) | 0.3% | | Net Debt-to-Equity | 1.17x | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted a successful strategic shift to specialty finance, comprising over 80% of the portfolio, with solid credit quality and low non-accruals - The company is strategically shifting its portfolio mix to predominantly specialty finance investments, which now account for over **80% of the portfolio's fair value**[4](index=4&type=chunk) - Credit quality is reported as solid, attributed to a focus on first lien senior secured specialty finance and non-cyclical sponsor finance, with **low non-accrual rates**[4](index=4&type=chunk) [Investment Portfolio Analysis](index=2&type=section&id=Investment%20Portfolio%20Analysis) The $3.2 billion Comprehensive Investment Portfolio is diversified across 940 issuers, 98.3% senior secured, with Asset-Based Loans as the largest segment [Comprehensive Investment Portfolio Activity](index=2&type=section&id=Comprehensive%20Investment%20Portfolio%20Activity) Q2 2025 originations of $567.1 million and repayments of $387.0 million led to $180.1 million net portfolio growth, driven by ABL Q2 2025 Investment Activity | Asset Class | Originations ($mm) | Repayments ($mm) | Net Activity ($mm) | | :--- | :--- | :--- | :--- | | Sponsor Finance | $23.9 | $68.6 | ($44.7) | | Asset-based Lending | $373.3 | $147.7 | $225.6 | | Equipment Finance | $141.2 | $169.8 | ($28.6) | | Life Science Finance | $28.7 | $0.9 | $27.8 | | **Total** | **$567.1** | **$387.0** | **$180.1** | [Comprehensive Investment Portfolio Composition](index=2&type=section&id=Comprehensive%20Investment%20Portfolio%20Composition) As of June 30, 2025, the $3.2 billion Comprehensive Investment Portfolio was diversified across 940 issuers, 98.3% senior secured, and 41.6% Asset-Based Loans - The portfolio is diversified across approximately **940 unique issuers** in over **110 industries**, with an average exposure of **$3.5 million (0.1%) per issuer**[9](index=9&type=chunk) Portfolio Composition (at fair value) | Composition (at fair value) | Amount ($mm) | % of Portfolio | Weighted Avg. Asset Yield | | :--- | :--- | :--- | :--- | | Cash Flow Loans (Sponsor Finance) | $546.6 | 16.9% | 10.3% | | Asset-Based Loans | $1,349.0 | 41.6% | 13.4% | | Equipment Financings | $1,074.1 | 33.2% | 11.6% | | Life Science Loans | $214.9 | 6.6% | 13.1% | | **Total Senior Secured Investments** | **$3,184.6** | **98.3%** | **12.2%** | | Equity and Equity-like Securities | $54.8 | 1.7% | N/A | | **Total Comprehensive Portfolio** | **$3,239.4** | **100.0%** | N/A | - The portfolio is heavily weighted towards senior secured debt, with **95.9% in first lien loans** and **2.4% in second lien loans** (2.2% ABL, 0.2% Cash Flow)[9](index=9&type=chunk)[10](index=10&type=chunk) [SLR Investment Corp. Portfolio Asset Quality](index=3&type=section&id=SLR%20Investment%20Corp.%20Portfolio%20Asset%20Quality) SLRC's on-balance sheet portfolio maintains high asset quality, with 99.7% performing at fair value and 97.8% rated in the top two risk categories - As of June 30, 2025, **99.7% of the portfolio was performing** on a fair value basis, with only **one investment on non-accrual**[14](index=14&type=chunk) Internal Investment Risk Ratings | Internal Investment Rating | Investments at Fair Value ($mm) | % of Total Portfolio | | :--- | :--- | :--- | | 1 (Least Risk) | $680.7 | 31.9% | | 2 | $1,407.3 | 65.9% | | 3 | $41.1 | 1.9% | | 4 (Most Risk) | $5.8 | 0.3% | [Investment Income Contribution by Asset Class](index=3&type=section&id=Investment%20Income%20Contribution%20by%20Asset%20Class) For Q2 2025, Asset-based Lending was the largest contributor to total investment income, generating $23.1 million (42.9%), followed by Sponsor Finance Q2 2025 Investment Income by Asset Class | For the Quarter Ended 6/30/2025 | Sponsor Finance | Asset-based Lending | Equipment Finance | Life Science Finance | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Investment Income ($mm) | $14.7 | $23.1 | $9.6 | $6.5 | $53.9 | | % Contribution | 27.3% | 42.9% | 17.8% | 12.0% | 100.0% | [SLR Senior Lending Program LLC (SSLP)](index=3&type=section&id=SLR%20Senior%20Lending%20Program%20LLC%20(SSLP)) The SSLP joint venture had a $184.1 million funded portfolio across 29 borrowers, with $32.3 million in investments and $13.9 million in repayments - The SSLP's portfolio consisted of **$184.1 million in floating rate senior secured loans** to **29 borrowers**, with an average investment size of **$6.3 million**[17](index=17&type=chunk) [Financial Performance (Results of Operations)](index=3&type=section&id=Financial%20Performance%20(Results%20of%20Operations)) Q2 2025 saw decreased gross and net investment income compared to Q2 2024, but a net unrealized gain resulted in a higher net increase in net assets [Year-over-Year Comparison](index=4&type=section&id=Year-over-Year%20Comparison) Q2 2025 gross investment income decreased to $53.9 million and net investment income to $21.6 million compared to Q2 2024, with net assets increasing to $24.2 million Q2 Financial Performance Comparison | Metric ($ in millions) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Investment Income | $53.9 | $59.0 | ($5.1) | | Net Expenses | $32.3 | $34.7 | ($2.4) | | Net Investment Income | $21.6 | $24.3 | ($2.7) | | Net Realized/Unrealized Gain (Loss) | $2.6 | ($1.1) | $3.7 | | Net Increase in Net Assets | $24.2 | $23.2 | $1.0 | Q2 Per Share Data Comparison | Per Share Data | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Investment Income per Share | $0.40 | $0.45 | | Earnings per Share | $0.44 | $0.43 | [Capital Structure and Liquidity](index=4&type=section&id=Capital%20Structure%20and%20Liquidity) As of June 30, 2025, SLRC's net debt-to-equity ratio was 1.17x, within target, with $359 million in unsecured notes and no near-term refinancing obligations [Debt and Leverage](index=4&type=section&id=Debt%20and%20Leverage) SLRC's net debt-to-equity ratio was 1.17x as of June 30, 2025, within target, with $359 million in unsecured notes and no near-term refinancing needs - The company's net debt-to-equity ratio was **1.17x** as of June 30, 2025, up from 1.04x at March 31, 2025, but within the target range of **0.9x to 1.25x**[28](index=28&type=chunk) - At quarter-end, the company had drawn **$682.3 million** on its **$970 million revolving credit facilities** and had **$359 million of unsecured notes outstanding**[25](index=25&type=chunk)[26](index=26&type=chunk) - The company has **no near-term refinancing needs**, with the next unsecured notes maturity scheduled for **December 2026**[27](index=27&type=chunk) [Available Capital and Commitments](index=4&type=section&id=Available%20Capital%20and%20Commitments) As of June 30, 2025, SLRC and its specialty finance portfolio companies had over $650 million in available capital and $332.6 million in non-discretionary unfunded commitments - Total available capital, including borrowing capacity at SSLP and specialty finance portfolio companies, was **over $650 million**[29](index=29&type=chunk) - The company had unfunded commitments of approximately **$332.6 million**, excluding discretionary commitments to its portfolio companies[30](index=30&type=chunk) [Subsequent Events and Shareholder Information](index=5&type=section&id=Subsequent%20Events%20and%20Shareholder%20Information) Following quarter-end, SLRC closed a $50.0 million private offering of unsecured notes due 2028 and declared a quarterly distribution of $0.41 per share [Subsequent Events](index=5&type=section&id=Subsequent%20Events) After quarter-end, SLRC issued $50.0 million in unsecured notes due 2028 at 5.96% and declared a quarterly distribution of $0.41 per share - On July 30, 2025, the company issued **$50.0 million of unsecured notes due 2028** with a fixed interest rate of **5.96%**[31](index=31&type=chunk) - On August 5, 2025, the Board declared a quarterly distribution of **$0.41 per share**, payable on September 26, 2025[32](index=32&type=chunk) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) SLR Investment Corp. will host an earnings conference call and webcast on Wednesday, August 6, 2025, at 10:00 a.m. ET to discuss Q2 2025 financial results - An earnings conference call is scheduled for **10:00 a.m. ET on Wednesday, August 6, 2025**[33](index=33&type=chunk) - The call will be accessible via telephone and a live webcast on the company's investor relations website[33](index=33&type=chunk)[34](index=34&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) SLR Investment Corp.'s consolidated financial statements provide a detailed overview of its assets, liabilities, and operational performance for Q2 2025 [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, SLR Investment Corp. reported total assets of $2.54 billion, liabilities of $1.54 billion, net assets of $992.3 million, and NAV of $18.19 per share Balance Sheet Summary | Balance Sheet ($ in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments at Fair Value | $2,134,938 | $2,005,634 | | Total Assets | $2,537,272 | $2,449,417 | | Total Liabilities | $1,544,923 | $1,456,491 | | **Total Net Assets** | **$992,349** | **$992,926** | | **Net Asset Value Per Share** | **$18.19** | **$18.20** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, the company generated $53.9 million in total investment income, resulting in $21.6 million net investment income and a $24.2 million net increase in net assets Income Statement Summary (Three months ended June 30, 2025) | Income Statement (Three months ended June 30, 2025) | Amount ($ in thousands) | | :--- | :--- | | Total investment income | $53,913 | | Net expenses | $32,304 | | **Net investment income** | **$21,609** | | Net realized and unrealized gain | $2,623 | | **Net increase in net assets from operations** | **$24,232** | | **Earnings per share** | **$0.44** |

PART I [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements show total assets increased to $2.54 billion, with NAV per share slightly decreasing to $18.19 [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets increased to $2.54 billion, liabilities to $1.54 billion, leading to a slight NAV per share decrease to $18.19 Key Financial Metrics | Metric | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $2,537,272 thousand | $2,449,417 thousand | | **Total Liabilities** | $1,544,923 thousand | $1,456,491 thousand | | **Total Net Assets** | $992,349 thousand | $992,926 thousand | | **Net Asset Value Per Share** | $18.19 | $18.20 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total investment income decreased for the three and six months ended June 30, 2025, while net increase in net assets rose to $24.2 million for the quarter, resulting in an EPS of $0.44 Operating Performance Summary | Financial Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Investment Income** | $53,913 | $58,978 | $107,091 | $117,077 | | **Net Investment Income** | $21,609 | $24,318 | $43,714 | $48,170 | | **Net Increase in Net Assets** | $24,232 | $23,228 | $44,158 | $51,099 | | **Earnings Per Share** | $0.44 | $0.43 | $0.81 | $0.94 | [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets decreased by $0.58 million for the six months ended June 30, 2025, as the net increase from operations was offset by distributions to stockholders Changes in Net Assets | Description (in thousands) | Six Months Ended June 30, 2025 | | :--- | :--- | | Net Assets at Beginning of Period | $992,926 | | Net Increase from Operations | $44,158 | | Net Distributions to Stockholders | ($44,735) | | **Net Assets at End of Period** | **$992,349** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operating activities was $136.7 million for the six months ended June 30, 2025, funded by $95.2 million from financing, resulting in a $41.5 million decrease in cash Cash Flow Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($136,715) | $10,266 | | Net Cash Provided by (Used in) Financing Activities | $95,225 | ($69,263) | | **Net Decrease in Cash and Cash Equivalents** | **($41,490)** | **($58,997)** | [Consolidated Schedule of Investments](index=7&type=section&id=Consolidated%20Schedule%20of%20Investments) The investment portfolio had a fair value of $2.13 billion as of June 30, 2025, diversified across asset classes, with Financial Services (28.3%) as the largest industry concentration Investment Portfolio by Asset Class | Asset Class | Fair Value (in thousands) | % of Total Investments | | :--- | :--- | :--- | | Senior Secured Loans | $1,268,904 | 59.4% | | Common Equity/Equity Interests/Warrants | $694,536 | 32.5% | | Equipment Financing | $138,988 | 6.5% | | Preferred Equity | $32,510 | 1.5% | | **Total Investments** | **$2,134,938** | **100.0%** | - The top three industry concentrations by fair value as of June 30, 2025 were Financial Services (**28.3%**), Multi-Sector Holdings (**17.7%**), and Health Care Providers & Services (**12.0%**)[44](index=44&type=chunk) [Notes to Consolidated Financial Statements](index=23&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, a $1.18 billion debt structure, and $396.9 million in unfunded commitments, alongside operational summaries for key portfolio companies - The company has an advisory agreement with SLR Capital Partners, LLC, with a base management fee calculated at an annual rate of **1.50%** on gross assets up to 200% of net assets and **1.00%** on gross assets exceeding that threshold[93](index=93&type=chunk) Debt Obligations | Debt Instrument | Face Amount (June 30, 2025) | | :--- | :--- | | Credit Facility | $657,210 thousand | | SPV Credit Facility | $165,050 thousand | | Unsecured Notes (various series) | $359,000 thousand | | **Total Debt** | **$1,181,260 thousand** | - As of June 30, 2025, the company had total unfunded commitments of **$396.9 million** to various portfolio companies[136](index=136&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Investment activity significantly increased to $333.3 million in Q2 2025, though gross investment income decreased, while the company maintains strong liquidity with $287.7 million in unused borrowing capacity - Investment activity for the three months ended June 30, 2025, totaled approximately **$333.3 million**, a significant increase from **$92.1 million** in the same period of 2024[198](index=198&type=chunk) - The decrease in gross investment income for the three and six-month periods ended June 30, 2025, was primarily due to a decrease in the average size of the income-producing investment portfolio and a decrease in index rates[240](index=240&type=chunk) - As of June 30, 2025, the company had **$287.7 million** of unused borrowing capacity under its credit facilities, providing significant liquidity[247](index=247&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=85&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's exposure to interest rate risk, where a 1% change in SOFR would impact annual net investment income by approximately five cents per share SOFR Sensitivity Analysis | Change in SOFR | Impact on Net Investment Income Per Share (Annualized) | | :--- | :--- | | +1.00% | +$0.05 | | -1.00% | -$0.05 | [Controls and Procedures](index=87&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The company's management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[285](index=285&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter of 2025 that materially affected, or are reasonably likely to materially affect, the company's internal controls[286](index=286&type=chunk) PART II [Legal Proceedings](index=88&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings nor aware of any material threatened litigation - As of the reporting date, SLR Investment Corp. and its subsidiaries are not subject to any material legal proceedings[288](index=288&type=chunk) [Risk Factors](index=88&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors discussed in the company's Annual Report on Form 10-K filed on February 25, 2025[289](index=289&type=chunk) [Other Information](index=88&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans, and a $50 million private offering of unsecured notes closed on July 30, 2025 - On July 30, 2025, subsequent to the quarter's end, the company closed a private offering of **$50 million** of **5.96%** unsecured notes due 2028 (Series I)[294](index=294&type=chunk) - During the quarter ended June 30, 2025, no directors or officers adopted, modified, or terminated any Rule 10b5-1 trading plans[293](index=293&type=chunk)

Core Insights - SLR Investment Corp. reported a net investment income of $21.6 million, or $0.40 per share, for Q2 2025, with a declared quarterly distribution of $0.41 per share [2][32] - The net asset value (NAV) increased to $18.19 per share as of June 30, 2025, up from $18.16 per share at the end of Q1 2025 [3] - The company emphasized its focus on specialty finance, with over 80% of its portfolio in specialty finance loans, which are believed to provide attractive risk-adjusted returns [4] Financial Performance - For the quarter ended June 30, 2025, the company had a comprehensive investment portfolio fair value of $3.2 billion and an investment portfolio fair value of $2.1 billion [5] - The non-accrual rate was low at 0.3% based on fair value, indicating strong credit quality [5] - The net increase in net assets from operations was $24.2 million, or $0.44 per share, compared to $23.2 million, or $0.43 per share, in the same period last year [25] Investment Activity - During Q2 2025, the company made investments totaling $567.1 million while prepaying and selling investments worth $387.0 million [6][8] - The investment activity was diversified across various asset classes, with significant originations in asset-based lending [8] - The comprehensive investment portfolio was diversified across approximately 940 unique issuers, with 98.3% invested in senior secured loans [10] Asset Quality - As of June 30, 2025, 99.7% of the portfolio was performing on a fair value basis, with only one investment on non-accrual [15] - The internal investment ratings showed that 31.9% of investments were rated as the least risky (rating 1), while 65.9% were rated as low risk (rating 2) [16] Capital and Liquidity - The company had a net debt-to-equity ratio of 1.17x as of June 30, 2025, within its target range of 0.9x to 1.25x [29] - Total commitments available on revolving credit facilities were $970 million, with $682.3 million drawn [26] - The company had over $650 million of available capital, including anticipated borrowing capacity [29] Subsequent Events - On July 30, 2025, the company closed a private offering of $50 million of unsecured notes due July 30, 2028, with a fixed interest rate of 5.96% [31]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The payback period is highlighted as an important financial metric that investors should consider alongside return on capital [2] Group 2 - The article emphasizes the importance of defensive stocks for medium- to long-term investment horizons [2]

Core Viewpoint - SLR Investment Corp. is set to release its financial results for Q2 2025 on August 5, 2025, with a conference call scheduled for August 6, 2025 [1][2][3] Company Overview - SLR Investment Corp. is a closed-end investment company classified as a business development company under the Investment Company Act of 1940 [4] - The company specializes in niche markets, primarily investing in leveraged U.S. middle market companies through cash flow senior secured loans, including first lien and second lien debt instruments, as well as asset-based loans [4]

Group 1 - Marjorie Bradt received a gift of over $6,000 worth of AT&T stock in the 1950s and chose to enroll in the company's dividend reinvestment plan instead of selling it [1] - The article emphasizes the importance of creating a portfolio that generates income without the need to sell assets, which can help fund retirement dreams [4] - The Income Method promoted in the article targets a yield of 9-10%, suggesting a strategy focused on high dividend returns [4] Group 2 - The article encourages joining a community for investment support, highlighting the benefits of collective investment strategies [4] - There is a sense of urgency in the article regarding rising prices for membership, indicating a limited-time offer for access to investment resources [4]

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on high-quality dividend stocks and assets that provide long-term growth potential, which can significantly contribute to income generation [1]. - A balanced portfolio that includes both growth and income-generating assets can lead to efficient investment income and total returns on par with the S&P 500 [1].

Financial Data and Key Metrics Changes - SLR Investment Corp reported net investment income of $0.41 per share for Q1 2025, consistent with the base dividend, representing a return on equity of approximately 9% [8] - The company's net asset value at quarter end was $18.16 per share, down only $0.04 from December 31, 2024 [8][15] - Gross investment income totaled $53.2 million for the three months ended March 31, compared to $55.6 million for the previous quarter [17] - Net expenses totaled $31.1 million for the three months ended March 31, compared to $31.8 million for the prior quarter [18] - The company had a net increase in net assets resulting from operations of $19.9 million for the three months ended March 31, compared to $22.6 million for the previous quarter [19] Business Line Data and Key Metrics Changes - As of March 31, approximately 80% of the portfolio was derived from specialty finance investments, with cash flow loans now representing less than 20% of the comprehensive portfolio [9][10] - SLRC originated $361 million of new investments and received repayments of $391 million in Q1, resulting in a total portfolio of $3.1 billion at quarter end [9] - The yield on the comprehensive portfolio was 12.2%, a 10 basis points increase from the previous quarter [10] - The cash flow sponsor finance portfolio was just under $590 million, representing 19% of the comprehensive portfolio, with a weighted average EBITDA of approximately $90 million [25] - The asset-based lending portfolio totaled $1.1 billion, representing 37% of the comprehensive portfolio, with a weighted average asset level yield of 13.8% [29] Market Data and Key Metrics Changes - The current environment is marked by policy volatility and economic uncertainty, with expectations for elevated inflation and slower global growth [11] - The company has over $800 million of available capital to deploy, positioning it to take advantage of economic conditions [14] - The weighted average risk rating of the portfolio was under two, indicating a strong credit profile [23] Company Strategy and Development Direction - The company emphasizes a multi-strategy investment approach, focusing on both specialty and sponsor finance credit investments to deliver consistent returns and protect capital [20] - The tactical allocation afforded by the multi-strategy approach has safeguarded performance through high interest rates and inflationary environments [13] - The company is focused on domestic service-oriented businesses, primarily in healthcare and financial services, which are less exposed to global economic fluctuations [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and capitalizing on volatility from widening credit spreads [6] - The company believes its portfolio is well-positioned to withstand persistent inflationary pressures and high interest rates [13] - Management noted that the decisions made over the past couple of years have strengthened the portfolio and the company [36] Other Important Information - The company issued $50 million of three-year unsecured notes at a fixed interest rate of 6.14% during the first quarter [16] - The company does not have any near-term refinancing obligations, with the next maturity occurring in December 2026 [16] Q&A Session Summary Question: Follow-up on pipeline weighting towards ABL and equipment finance opportunities - The pipeline is approximately 75-80% weighted towards ABL, covering various industries [41] Question: Description of recent attractive cash flow lending opportunities - Recent opportunities involve financing tuck-in acquisitions of seasoned platforms, allowing for short duration and potential re-underwriting [44][46] Question: Contribution from Kingsbridge in the quarter - The contribution included some one-time gains from asset sales but continues to perform well [48] Question: Estimate of tariff exposure in the portfolio - Less than 1% of the portfolio has direct exposure to tariffs, primarily in domestic service-based industries [52][53] Question: Yield increase in equipment finance business - The yield increase is attributed to borrowers extending leases rather than purchasing new equipment, along with some one-time gains [56][57]