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]

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 of $0.41 per share, reflecting a return on equity of approximately 9% [6][17] - The company's net asset value at the end of the quarter was $18.16 per share, a slight decrease of $0.04 from $18.20 per share at the end of Q4 2024 [14] - Gross investment income for the three months ended March 31 totaled $53.2 million, down from $55.6 million in the previous quarter [16] Business Line Data and Key Metrics Changes - The comprehensive portfolio totaled $3.1 billion at quarter end, with $361 million in new investments and $391 million in repayments during Q1 [7][14] - Approximately 80% of the portfolio was derived from specialty finance investments, with cash flow loans now representing less than 20%, the lowest level in three years [7][8] - The yield on the comprehensive portfolio increased to 12.2%, up from 12.1% in the previous quarter and 11.8% in Q1 2024 [8] 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 [9][10] - The company has over $800 million of available capital to deploy, positioning it to take advantage of both durable economic conditions and potential economic softening [12] Company Strategy and Development Direction - The company has shifted its portfolio mix towards asset-based specialty finance strategies, providing greater downside protection from underlying collateral [7] - SLR's multi-strategy investment approach aims to deliver consistent returns and protect capital across market cycles, with a focus on high-quality collateral [19] - The company is actively monitoring portfolio companies for impacts from tariffs and is focused on domestic service-oriented businesses [10][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and capitalizing on volatility from widening credit spreads [5] - The company believes its disciplined approach and strong credit profile will allow it to withstand persistent inflationary pressures and high interest rates [11] - Management highlighted the importance of monitoring trends in receivables and inventory to manage risks effectively [53] Other Important Information - The company declared a Q2 2025 quarterly distribution of $0.41 per share, payable on June 27, 2025 [18] - SLR Investment Corp is rated investment grade by Fitch, Moody's, and DBRS, with no near-term refinancing obligations [15] Q&A Session Summary Question: Follow-up on pipeline weighting towards ABL and equipment finance opportunities - Management indicated that the pipeline is approximately 75-80% weighted towards ABL, covering various industries [40][41] Question: Description of recent attractive cash flow lending opportunities - Management noted that attractive 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 - Management confirmed that Kingsbridge's performance included some one-time gains but is expected to continue performing well [48] Question: Estimate of tariff exposure in the portfolio - Management stated that less than 1% of the portfolio has direct exposure to tariffs, primarily due to the focus on domestic service-based businesses [51][52] Question: Yield increase in the equipment finance business - Management explained that the yield increase is due to borrowers extending leases and some one-time gains from asset sales [56][57]

分组1 - SLR Investment (SLRC) reported quarterly earnings of $0.41 per share, matching the Zacks Consensus Estimate, but down from $0.44 per share a year ago [1] - The company posted revenues of $53.18 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.56% and down from $58.1 million year-over-year [2] - SLR Investment shares have declined about 4% since the beginning of the year, slightly outperforming the S&P 500's decline of 4.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $53.65 million, and for the current fiscal year, it is $1.66 on revenues of $215.56 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

[Q1 2025 Financial Results and Company Overview](index=1&type=section&id=SLR%20Investment%20Corp.%20Announces%20Quarter%20Ended%20March%2031%2C%202025%20Financial%20Results) SLR Investment Corp. reported Q1 2025 Net Investment Income of $0.41 per share, with a slight decrease in NAV, while management expressed confidence in the portfolio and capital position [Financial Highlights and CEO Commentary](index=1&type=section&id=FINANCIAL%20HIGHLIGHTS%20FOR%20THE%20QUARTER%20ENDED%20MARCH%2031%2C%202025%3A) SLRC's Q1 2025 financial highlights include Net Investment Income matching distributions, a slight NAV decrease, and management's positive outlook on portfolio quality and market opportunities | Metric | Value | Comparison | | :--- | :--- | :--- | | **Net Investment Income (NII)** | $22.1 million ($0.41 per share) | - | | **Quarterly Distribution** | $0.41 per share | Payable June 27, 2025 | | **Net Asset Value (NAV)** | $18.16 per share | vs. $18.20 at Dec 31, 2024 | | **Net Increase in Net Assets** | $19.9 million ($0.37 per share) | - | - Management believes the portfolio is well-positioned, being heavily collateralized by working capital assets and focused on domestic services businesses, which provides resilience against uncertain tariff impacts[3](index=3&type=chunk) - The company observes a growing pipeline of asset-based lending opportunities due to market dislocation and the retreat of traditional banks, with over **$800 million** in available capital to leverage this trend[3](index=3&type=chunk) [Portfolio Analysis](index=1&type=section&id=Comprehensive%20Investment%20Portfolio) The comprehensive investment portfolio demonstrates diversification, strong asset quality, and strategic growth in asset-based lending [Comprehensive Portfolio Activity](index=1&type=section&id=Portfolio%20Activity) Q1 2025 saw total originations of $361.3 million and repayments of $390.6 million, resulting in a net portfolio decrease, with asset-based lending as the only growth category | Asset Class | Originations ($ million) | Repayments / Amortization ($ million) | Net Portfolio Activity ($ million) | | :--- | :--- | :--- | :--- | | Sponsor Finance | $44.8 | $73.0 | ($28.2) | | Asset-based Lending | $163.8 | $98.9 | $64.9 | | Equipment Finance | $128.1 | $173.5 | ($45.4) | | Life Science Finance | $24.6 | $45.2 | ($20.6) | | **Total** | **$361.3** | **$390.6** | **($29.3)** | [Comprehensive Portfolio Composition](index=2&type=section&id=Comprehensive%20Investment%20Portfolio%20Composition) The $3.1 billion portfolio is highly diversified across 940 issuers, with 98.2% in senior secured loans, predominantly first lien, and asset-based and equipment financings as largest segments - The portfolio is diversified across approximately **940** unique issuers in over **105** industries, with an average exposure of **$3.2 million (0.1%)** per issuer[10](index=10&type=chunk) | Asset Class | Amount ($ million) | % of Portfolio | Weighted Avg. Asset Yield | | :--- | :--- | :--- | :--- | | Cash Flow Loans (Sponsor Finance) | $588.0 | 19.3% | 10.4% | | Asset-Based Loans | $1,121.3 | 36.7% | 13.8% | | Equipment Financings | $1,102.6 | 36.1% | 11.5% | | Life Science Loans | $186.8 | 6.1% | 12.5% | | **Total Senior Secured** | **$2,998.7** | **98.2%** | **12.2%** | | Equity and Equity-like Securities | $54.2 | 1.8% | N/A | | **Total Comprehensive Portfolio** | **$3,052.9** | **100.0%** | - | - First lien senior secured loans make up **96.4%** of the Comprehensive Investment Portfolio, underscoring a conservative credit profile[10](index=10&type=chunk)[11](index=11&type=chunk) [Asset Quality and Income Contribution](index=3&type=section&id=Asset%20Quality) Asset quality remains robust with minimal non-accruals and a high concentration in top risk categories, while asset-based lending significantly contributed to Q1 2025 investment income - As of March 31, 2025, only **0.4%** of the portfolio at fair value was on non-accrual status[15](index=15&type=chunk) Internal Investment Rating (as of March 31, 2025) | Rating | Investments at Fair Value ($ million) | % of Total Portfolio | | :--- | :--- | :--- | | 1 (Least Risk) | $622.3 | 31.0% | | 2 | $1,334.9 | 66.6% | | 3 | $39.4 | 2.0% | | 4 (Most Risk) | $7.8 | 0.4% | Investment Income Contribution by Asset Class (Q1 2025) | Asset Class | Income ($ million) | % Contribution | | :--- | :--- | :--- | | Sponsor Finance | $17.0 | 32.0% | | Asset-based Lending | $19.5 | 36.7% | | Equipment Finance | $9.7 | 18.2% | | Life Science Finance | $7.0 | 13.1% | | **Total** | **$53.2** | **100.0%** | [SLR Senior Lending Program (SSLP)](index=3&type=section&id=SLR%20Senior%20Lending%20Program%20LLC%20(SSLP)) The SSLP, a 50/50 joint venture, held a $165.6 million portfolio of senior secured loans, generating a stable 15.7% annualized yield for SLRC in Q1 2025 - At quarter-end, the SSLP's portfolio consisted of **$165.6 million** at fair value, invested in **31** different borrowers[17](index=17&type=chunk) - In Q1 2025, SLRC earned **$1.9 million** from its SSLP investment, representing an annualized yield of **15.7%** on cost, consistent with Q4 2024[18](index=18&type=chunk) [Financial Performance](index=4&type=section&id=SLR%20Investment%20Corp.'s%20Results%20of%20Operations%20Quarter%20Over%20Quarter) SLRC's Q1 2025 financial performance reflects a decrease in net investment income due to a smaller portfolio and lower index rates, partially offset by reduced expenses [Quarter-over-Quarter Results of Operations](index=4&type=section&id=Results%20of%20Operations) Q1 2025 net investment income decreased to $22.1 million ($0.41/share) from $23.9 million ($0.44/share) in Q1 2024, driven by lower gross investment income and partially offset by reduced interest expenses | Metric (in millions, except per share) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Investment Income | $53.2 | $58.1 | ($4.9) | | Net Expenses | $31.1 | $34.2 | ($3.1) | | **Net Investment Income** | **$22.1** | **$23.9** | **($1.8)** | | NII per Share | $0.41 | $0.44 | ($0.03) | | Net Realized/Unrealized Gain (Loss) | ($2.2) | $4.0 | ($6.2) | | **Net Increase in Net Assets** | **$19.9** | **$27.9** | **($8.0)** | | Earnings per Share | $0.37 | $0.51 | ($0.14) | - The year-over-year decrease in gross investment income was primarily due to a smaller income-producing portfolio and a decrease in index rates[19](index=19&type=chunk) - The decrease in expenses was mainly due to lower interest expense resulting from reduced average borrowings and lower index rates[20](index=20&type=chunk) [Capital Structure and Liquidity](index=4&type=section&id=Capital%20and%20Liquidity) SLRC maintains a healthy capital structure with a net debt-to-equity ratio within target, enhanced liquidity from recent unsecured note issuance, and no near-term debt maturities [Capital and Liquidity Overview](index=4&type=section&id=Capital%20and%20Liquidity%20Overview) As of March 31, 2025, SLRC's net debt-to-equity ratio was 1.04x, within target, supported by a recent $50.0 million unsecured note issuance and over $800 million in available capital - The company's net debt-to-equity ratio was **1.04x** as of March 31, 2025, compared to **1.16x** a year prior, and is within the target range of **0.9x to 1.25x**[27](index=27&type=chunk) - In February 2025, the company issued **$50.0 million** of **6.14%** unsecured notes due 2028, bringing total unsecured notes outstanding to **$359 million**, with the next maturity not until December 2026[26](index=26&type=chunk) - Including borrowing capacity at its specialty finance companies, SLRC had over **$800 million** of available capital as of March 31, 2025[28](index=28&type=chunk) [Subsequent Events](index=5&type=section&id=Subsequent%20Events) Subsequent to the quarter's end, the Board of Directors declared a quarterly distribution, maintaining consistency for shareholders [Dividend Declaration](index=5&type=section&id=Dividend%20Declaration) On May 7, 2025, the Board of Directors declared a quarterly distribution of $0.41 per share, payable in June 2025 - On May 7, 2025, the Board declared a quarterly distribution of **$0.41 per share**, payable on June 27, 2025, to shareholders of record as of June 13, 2025[30](index=30&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=SLR%20INVESTMENT%20CORP.%20CONSOLIDATED%20STATEMENTS%20OF%20ASSETS%20AND%20LIABILITIES) The consolidated financial statements provide a detailed overview of SLRC's assets, liabilities, and operational results for the quarter ended March 31, 2025 [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of March 31, 2025, total assets increased to $2.50 billion, total liabilities to $1.51 billion, resulting in a slight decrease in total net assets to $990.5 million and NAV per share of $18.16 Balance Sheet Highlights (in thousands, except per share) | Account | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total Investments at Fair Value | $2,004,399 | $2,005,634 | | Total Assets | $2,502,972 | $2,449,417 | | Total Liabilities | $1,512,487 | $1,456,491 | | **Total Net Assets** | **$990,485** | **$992,926** | | **Net Asset Value Per Share** | **$18.16** | **$18.20** | [Consolidated Statements of Operations](index=6&type=section&id=SLR%20INVESTMENT%20CORP.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, SLRC reported $53.2 million in total investment income, $22.1 million in net investment income, and a net increase in net assets of $19.9 million ($0.37 per share) after accounting for losses Statement of Operations Highlights (in thousands, except per share) | Account | Three months ended Mar 31, 2025 | Three months ended Mar 31, 2024 | | :--- | :--- | :--- | | Total Investment Income | $53,178 | $58,099 | | Net Expenses | $31,073 | $34,247 | | **Net Investment Income** | **$22,105** | **$23,852** | | Net Realized & Unrealized Gain (Loss) | ($2,179) | $4,019 | | **Net Increase in Net Assets** | **$19,926** | **$27,871** | | **Earnings Per Share** | **$0.37** | **$0.51** |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarter Ended March 31, 2025 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Maryland 26-1381340 (State of Incorporation) (I.R.S. Employer 500 Park Avenue New York, N.Y. 10022 (Address of principal executive offices) (Zip Code) Identification No.) (212) 993-1670 (Registr ...

Core Insights - SLR Investment Corp. reported a net investment income of $22.1 million, or $0.41 per share, for Q1 2025, with a declared quarterly distribution of $0.41 per share [2][31] - The net asset value (NAV) as of March 31, 2025, was $18.16 per share, slightly down from $18.20 per share at the end of 2024 [2][36] Financial Performance - The company experienced a decrease in gross investment income from $58.1 million in Q1 2024 to $53.2 million in Q1 2025, attributed to a smaller income-producing investment portfolio and lower index rates [20] - Net expenses decreased from $34.2 million in Q1 2024 to $31.1 million in Q1 2025, primarily due to lower interest expenses [21] - The net increase in net assets resulting from operations was $19.9 million, down from $27.9 million in the same quarter of the previous year [25] Investment Portfolio - As of March 31, 2025, the fair value of the investment portfolio was $2.0 billion, with a comprehensive investment portfolio fair value of $3.1 billion [4] - The portfolio had a non-accrual rate of 0.4% at fair value and 0.6% at cost [4] - The comprehensive investment portfolio was diversified across approximately 940 unique issuers in over 105 industries, with 98.2% invested in senior secured loans [10] Capital and Liquidity - The company had $549.3 million drawn on $970 million of total commitments available on its revolving credit facilities as of March 31, 2025 [26] - Available capital, including anticipated borrowing capacity, exceeded $800 million [29] - The net debt-to-equity ratio was 1.04x, within the company's target range of 0.9x to 1.25x [28] Market Position and Strategy - The company is actively engaged with portfolio companies to navigate uncertainties, particularly regarding tariffs, and is seeing a growing pipeline of asset-based lending opportunities [3] - The portfolio is heavily collateralized by working capital assets and focuses on domestic services businesses, positioning the company well for current market conditions [3]