Portman Ridge(PTMN) - 2024 Q4 - Annual Results

Financial Performance - Total investment income for the full year 2024 was $62.4 million, a decrease from$76.3 million in 2023[12]. - Net investment income ("NII") for the full year 2024 was $24.0 million ($2.59 per share), down from $34.8 million ($3.66 per share) in 2023[14]. - Core investment income for the full year 2024 was $62.2 million, down$12.3 million from $74.5 million in 2023[12]. - Total investment income for the year ended December 31, 2024, was$62.432 million, a decrease of 18.2% from $76.315 million in 2023[38]. - Net investment income decreased to$24.044 million in 2024, down 30.9% from $34.773 million in 2023[38]. - Interest income from non-controlled/non-affiliated investments was$45.036 million in 2024, down from $55.675 million in 2023, representing a decline of 19.1$8.186 million in 2024, up 15.8% from $7.068 million in 2023[38]. Asset Valuation - Net asset value ("NAV") as of December 31, 2024, was$178.5 million ($19.41 per share), a decrease from$213.5 million ($22.76 per share) as of December 31, 2023[14]. - The net asset value per common share decreased to$19.41 as of December 31, 2024, down from $22.76 in the previous year[36]. - Total net assets were reported at$178.5 million as of December 31, 2024, compared to $213.5 million as of December 31, 2023[36]. - As of December 31, 2024, the fair value of total investments was$405.0 million, a decrease from $467.9 million as of December 31, 2023, representing a decline of approximately 13.3$0.47 per share and a supplemental distribution of $0.07 per share for Q1 2025[9]. - Total stockholder distributions for 2024 amounted to$2.76 per share[7]. - The company repurchased a total of 202,357 shares for approximately $3.8 million in 2024, which was accretive to NAV by$0.07 per share[7]. Investment Portfolio - The investment portfolio composition included 71.6% in First Lien Debt, 7.2% in Second Lien Debt, and 13.4% in Joint Ventures as of December 31, 2024[17]. - Approximately 90.1% of the Debt Securities Portfolio was floating rate, with 89.8% of these loans containing interest rate floors between 0.50% and 5.25%[20]. - The weighted average contractual interest rate on the interest-earning Debt Securities Portfolio as of December 31, 2024, was approximately 11.3%[14]. Borrowings and Liquidity - The Company had $267.5 million in borrowings outstanding at a weighted average interest rate of 6.2$108.0 million at a fixed rate and $159.5 million at a floating rate[18]. - The Company had$40.5 million of available borrowing capacity under the JPM Credit Facility as of December 31, 2024[19]. - Unrestricted cash increased to $17.5 million from$13.7 million as of September 30, 2024, while restricted cash decreased to $22.4 million from$13.0 million[19]. Operational Efficiency - Non-accrual investments decreased from nine to six from September 30, 2024, to December 31, 2024[8]. - The proposed merger with Logan Ridge Finance Corporation aims to enhance shareholder value through greater scale and improved operational efficiencies[6]. Expenses and Losses - Total expenses for 2024 were $38.388 million, a reduction of 18.0$46.851 million in 2023[38]. - Net realized losses from investment transactions amounted to $31.183 million in 2024, compared to losses of$26.766 million in 2023[38]. - The net change in unrealized appreciation on investments was a loss of $29.324 million in 2024, compared to a loss of$23.030 million in 2023[38]. - Basic and diluted net increase (decrease) in net assets resulting from operations was $(5.935) million in 2024, contrasting with an increase of$11.381 million in 2023[38]. Conference Call - The Company will hold a conference call on March 14, 2024, to discuss the fourth quarter and full year 2024 financial results[24].