Ares Capital(US:ARCC)2025-10-28 00:29Dividend Announcements - Ares Capital declared a fourth quarter 2025 dividend of $0.48 per share, payable on December 30, 2025[1]. - Ares Capital declared a third quarter 2025 dividend of $0.48 per share, totaling approximately $342 million, paid on September 30, 2025[22]. Financial Performance - For Q3 2025, GAAP net income per share was $0.57, down from $0.62 in Q3 2024, while core EPS decreased from $0.58 to $0.50[3]. - Net investment income for Q3 2025 was $338 million, compared to $361 million in Q3 2024[3]. - For the three months ended September 30, 2025, total investment income was $782 million, compared to $775 million for the same period in 2024[36]. - Basic and diluted net income per common share for the three months ended September 30, 2025, was $0.57, compared to $0.62 for the same period in 2024[36]. - For the nine months ended September 30, 2025, GAAP net income per share was $1.45, down from $1.90 in 2024, a decrease of 23.7%[39]. - Core EPS for the nine months ended September 30, 2025, was $1.50, compared to $1.78 in 2024, reflecting a decline of 15.7%[39]. - Core EPS for the three months ended September 30, 2025, was $0.50, down from $0.58 in 2024, representing a decline of 13.8%[39]. - The company believes that Core EPS provides useful information regarding financial performance, as it measures financial condition and results of operations[39]. - The presentation of Core EPS is not meant to be considered in isolation or as a substitute for GAAP financial results[39]. Investment Activities - Ares Capital made new investment commitments of approximately $3.9 billion in Q3 2025, with 85% in first lien senior secured loans[11]. - From October 1 to October 23, 2025, Ares Capital made new investment commitments of approximately $735 million, with 95% in first lien senior secured loans[23]. - Ares Capital exited approximately $2.6 billion of investment commitments in Q3 2025, with 67% being first lien senior secured loans[12]. - Ares Capital exited approximately $1.1 billion of investment commitments during the same period, with 81% being first lien senior secured loans[24]. - As of October 23, 2025, Ares Capital had an investment backlog of approximately $3.0 billion, indicating potential future investments[25]. Asset and Debt Management - Portfolio investments at fair value increased to $28.693 billion as of September 30, 2025, up from $26.720 billion at the end of 2024[7]. - As of September 30, 2025, Ares Capital had $1.0 billion in cash and cash equivalents and $15.6 billion in total debt outstanding[14]. - The debt/equity ratio increased to 1.09x as of September 30, 2025, compared to 1.03x at the end of 2024[3]. - The total assets as of September 30, 2025, were $30.806 billion, an increase from $28.254 billion as of December 31, 2024[34]. Realized Gains and Losses - Ares Capital recognized total net realized losses of approximately $67 million from exited investment commitments during the period from October 1 to October 23, 2025[24]. - Net realized and unrealized losses for the three months ended September 30, 2025, were $(0.09), compared to $(0.05) in 2024, indicating a worsening of 80%[39]. - Capital gains incentive fee attributable to net realized and unrealized gains and losses for the three months ended September 30, 2025, was $0.02, up from $0.01 in 2024, showing a 100% increase[39]. - Other income tax expense related to net realized gains and losses was $0 for both periods, indicating no change[39]. Shareholder Information - The company issued approximately 9.3 million shares of common stock in Q3 2025, generating net proceeds of approximately $204 million[21]. - The basic and diluted weighted average shares outstanding for the three months ended September 30, 2025, were approximately 709 million, an increase from approximately 635 million in 2024, indicating a growth of 11.6%[39].