Palmer Square Capital BDC(PSBD) - 2025 Q2 - Quarterly Results

Investment Income and Performance - Total investment income for Q2 2025 was $31.7 million, down from $36.5 million in Q2 2024, representing a decrease of approximately 13.1% year-over-year[4] - Net investment income for Q2 2025 was $13.8 million or $0.43 per share, compared to $15.8 million or $0.48 per share in the same period last year, reflecting a decline of 12.7% in income per share[4] - Total investment income for the six months ended June 30, 2025, was $62,891,199, down from $71,334,439 in the same period of 2024, a decline of about 11.8%[26] - Net investment income for the three months ended June 30, 2025, was $13,841,529, compared to $15,757,851 for the same period in 2024, reflecting a decrease of approximately 12.2%[26] - Basic and diluted net investment income per common share for the three months ended June 30, 2025, was $0.43, down from $0.48 in the same period of 2024[26] Asset and Liability Management - The total fair value of investments was approximately $1.28 billion, down from $1.43 billion year-over-year, a decrease of about 10.6%[4] - Total assets decreased from $1,431,042,759 as of December 31, 2024, to $1,314,814,526 as of June 30, 2025, representing a decline of approximately 8.1%[22] - Total liabilities decreased from $893,197,790 as of December 31, 2024, to $809,601,086 as of June 30, 2025, a reduction of about 9.4%[22] - The debt-to-equity ratio as of June 30, 2025, was 1.51x, slightly up from 1.50x as of March 31, 2025[4] Investment Activity - The principal amount of new investments funded in Q2 2025 was $92.4 million, with $133.3 million in sales and repayments during the same period[6] - For the three months ended June 30, 2025, total new investments amounted to $(40,920,002), compared to $49,274,391 for the same period in 2024, indicating a significant decrease[30] - The principal amount of first-lien senior secured debt investments for the six months ended June 30, 2025, was $182,160,770, down from $464,632,921 in 2024, reflecting a decline in investment activity[30] - The number of new investment commitments for the six months ended June 30, 2025, was 46, down from 59 in the same period of 2024, indicating a slowdown in new investment activity[30] Investment Returns and Distributions - Cash distributions to stockholders totaled $0.42 per share for Q2 2025, with a declared base dividend of $0.36 per share for Q3 2025[4][8] - The portfolio yield was 10.10% for Q2 2025, compared to 9.82% in Q2 2024, showing an increase of 2.9%[3] Losses and Commitments - Total net realized and unrealized losses for Q2 2025 were $6.7 million, an improvement from losses of $10.4 million in Q2 2024[4] - The company had $15.7 million of unfunded commitments to provide debt financing to its portfolio companies as of June 30, 2025[24] - Net realized losses on non-controlled, non-affiliated investments for the three months ended June 30, 2025, were $(5,745,139), compared to $(9,411,924) for the same period in 2024[26] Investment Terms and Conditions - The average new investment commitment amount decreased to $3,145,736 in Q2 2025 from $5,575,295 in Q2 2024, showing a reduction in the size of new commitments[30] - The percentage of new debt investment commitments at floating rates increased to 100.00% in Q2 2025, compared to 97.01% in Q2 2024, indicating a shift towards variable rate loans[30] - The weighted average interest rate of new investment commitments decreased to 8.93% in Q2 2025 from 9.96% in Q2 2024, suggesting a reduction in borrowing costs[30] - The weighted average maturity for new investment commitments was 5.16 years in Q2 2025, down from 6.05 years in Q2 2024, indicating shorter investment horizons[30] - The weighted average spread over the reference rate of new floating rate investment commitments was 4.56% in Q2 2025, slightly down from 4.68% in Q2 2024[30] - The weighted average interest rate on long-term investments sold or paid down was 8.65% in Q2 2025, compared to 10.69% in Q2 2024, reflecting improved terms on sold investments[30] Net Asset Value - Net asset value (NAV) per share decreased to $15.68 as of June 30, 2025, from $15.85 as of March 31, 2025, indicating a decline of 1.1%[4] - The net asset value per common share decreased from $16.50 as of December 31, 2024, to $15.68 as of June 30, 2025, a decline of approximately 5.0%[22] Operational Performance - The company reported a net increase in net assets resulting from operations of $7,169,976 for the three months ended June 30, 2025, compared to $5,312,813 for the same period in 2024, an increase of about 35.0%[26] - Total expenses for the six months ended June 30, 2025, were $36,136,519, compared to $39,308,870 for the same period in 2024, a decrease of approximately 8.3%[26]