MidCap Financial Investment (MFIC) - 2025 Q4 - Annual Results

Financial Results for the Quarter Ended March 31, 2025 Quarterly Highlights and CEO Statement MidCap Financial Investment Corporation reported Q1 2025 net investment income of $0.37 per share, NAV of $14.93, declared a $0.38 per share dividend, and achieved strong portfolio growth Q1 2025 Key Financial Metrics vs. Q4 2024 | Metric | Q1 2025 (Ended Mar 31, 2025) | Q4 2024 (Ended Dec 31, 2024) | | :--- | :--- | :--- | | Net Investment Income per Share | $0.37 | $0.40 | | Net Asset Value (NAV) per Share | $14.93 | $14.98 | - The Board of Directors declared a dividend of $0.38 per share, payable on June 26, 2025, to stockholders of record as of June 10, 2025[3] - CEO Tanner Powell highlighted solid Q1 results, including a reduction in non-accruals, strong portfolio growth from MidCap Financial originations, and strategic stock repurchases below NAV[4] - Key activities in the quarter included[5] - New investment commitments: $376 million - Net fundings: $170 million - Net leverage: 1.31x - Share repurchases: 476,656 shares for $6.1 million - Completed a $529.6 million CLO transaction in February 2025 Financial Highlights Total assets increased to $3.36 billion as of March 31, 2025, while net assets slightly declined to $1.39 billion, and net leverage rose to 1.31x Financial Highlights (Quarter-over-Quarter) | ($ in billions, except per share data) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $3.36 | $3.19 | | Investment portfolio (fair value) | $3.19 | $3.01 | | Debt outstanding | $1.94 | $1.75 | | Net assets | $1.39 | $1.40 | | Net asset value per share | $14.93 | $14.98 | | Net leverage ratio | 1.31x | 1.16x | Portfolio and Investment Activity Robust Q1 2025 investment activity saw $391.9 million in new investments, increasing portfolio companies to 240, with 93% in first lien secured debt and a 9.4% total portfolio yield Investment Activity Summary Investment Activity for the Three Months Ended March 31 | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Investments made in portfolio companies | $391.9 | $152.8 | | Investments sold | ($43.9) | — | | Investments repaid | ($177.6) | ($136.9) | | Net investment activity | $170.4 | $15.9 | | Portfolio companies at end of period | 240 | 154 | Portfolio Composition and Yields - As of March 31, 2025, first lien secured debt comprised 93% of the portfolio at fair value, consistent with the prior quarter's 92%[18] Weighted Average Yields (at Amortized Cost) as of March 31, 2025 | Portfolio Type | Weighted Average Yield | | :--- | :--- | | First lien secured debt | 10.5% | | Total debt portfolio | 10.5% | | Total portfolio | 9.4% | - The debt portfolio remains predominantly floating rate, with 99% of investments at fair value having floating interest rates[18] Operating Results MFIC generated $34.3 million in net investment income for Q1 2025, or $0.37 per share, with a net realized and unrealized loss of $4.0 million, resulting in a $30.3 million net increase in net assets Operating Results for the Three Months Ended March 31 | (in millions, except per share) | 2025 | 2024 | | :--- | :--- | :--- | | Net investment income | $34.3 | $28.5 | | Net realized and change in unrealized gains (losses) | ($4.0) | ($3.1) | | Net increase in net assets from operations | $30.3 | $25.5 | | Net investment income per share | $0.37 | $0.44 | | Earnings per share — basic | $0.32 | $0.39 | - Total investment income for Q1 2025 was $78.7 million, an increase from $68.3 million in Q1 2024, primarily driven by higher interest income from non-controlled/non-affiliated investments[23] - Total net expenses for Q1 2025 were $44.4 million, up from $39.8 million in Q1 2024, mainly due to higher interest, debt, and management fee expenses[23] Capital Management The company repurchased 476,656 shares for $6.1 million at a discount to NAV, with total debt at $1.942 billion and $548 million available under its revolving credit facility Share Repurchase Program - In Q1 2025, the Company repurchased 476,656 shares for a total of $6.1 million[11] - The weighted average repurchase price was $12.75 per share, representing a discount of approximately 14.72% to the average NAV for the quarter[11] - As of May 12, 2025, $20.8 million remained available for future share repurchases under the current Board authorization[12] Liquidity and Debt - As of March 31, 2025, total outstanding debt obligations were $1.942 billion[14] - The debt structure includes Senior Unsecured Notes, CLO notes, and $1.106 billion outstanding under the multi-currency revolving credit facility[14] - The company had $548 million of available borrowing capacity under its revolving credit facility as of the quarter's end[14] Detailed Financial Statements Unaudited consolidated financial statements show total assets of $3.36 billion and net assets of $1.39 billion as of March 31, 2025, with $34.3 million in net investment income Consolidated Statements of Assets and Liabilities Consolidated Statements of Assets and Liabilities (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,355,699 | $3,190,950 | | Total Liabilities | $1,962,439 | $1,786,304 | | Net Assets | $1,393,260 | $1,404,646 | | Net Asset Value Per Share | $14.93 | $14.98 | Consolidated Statements of Operations Consolidated Statements of Operations (Unaudited, in thousands) | Three Months Ended March 31, 2025 | Amount | | :--- | :--- | | Total Investment Income | $78,698 | | Net Expenses | $44,416 | | Net Investment Income | $34,282 | | Net Realized and Change in Unrealized Gains (Losses) | ($3,952) | | Net Increase in Net Assets Resulting from Operations | $30,330 | Corporate and Shareholder Information The company will host an earnings conference call on May 13, 2025, operating as a BDC managed by Apollo, focusing on U.S. middle-market senior secured loans, with standard disclaimers Conference Call and Supplemental Information - An earnings conference call is scheduled for Tuesday, May 13, 2025, at 8:30 a.m. Eastern Time[16] - A supplemental information package is available in the Shareholders section of the Company's website[17] About MidCap Financial Investment Corporation - MFIC is a closed-end, externally managed Business Development Company (BDC) that has elected to be treated as a Regulated Investment Company (RIC) for tax purposes[27] - The company is managed by an affiliate of Apollo Global Management and its primary investment objective is to generate current income by investing in first lien senior secured loans to U.S. middle-market companies[27] Important Information and Forward-Looking Statements - Investors are advised to carefully consider the company's objectives, risks, and expenses by reading the prospectus filed with the SEC[24] - The report contains forward-looking statements that are subject to risks and uncertainties; past performance is not a guarantee of future results[26][28]