PennantPark Floating Rate Capital .(PFLT) - 2025 Q4 - Annual Results

Financial Performance - For the quarter ended September 30, 2025, the investment portfolio totaled $2,773.3 million, with net assets of $1,074.5 million and a GAAP net asset value per share of $10.83, reflecting a quarterly change of (1.2)%[2] - Net investment income for the quarter was $27.5 million or $0.28 per share, compared to $18.0 million or $0.24 per share for the same quarter in 2024, indicating a growth driven by an increase in the debt portfolio size[18] - Total investment income for the year ended September 30, 2025, was $261.4 million, up from $186.4 million in 2024, primarily due to the growth in the debt portfolio[16] - For the year ended September 30, 2025, net investment income was $107.2 million, compared to $77.7 million in 2024, marking an increase of approximately 37.9%[37] - The company declared total distributions of $113.9 million for the year ended September 30, 2025, compared to $80.6 million in 2024, reflecting a year-over-year increase of 41.2%[30] Investment Activities - The company invested $633.0 million in 11 new and 105 existing portfolio companies during the quarter, achieving a weighted average yield on debt investments of 10.5%[9] - The weighted average yield on debt investments at quarter-end was 10.2%, with approximately 99% of the debt portfolio consisting of variable-rate investments[7] - The company formed a joint venture, PennantPark Senior Secured Loan Fund II, LLC, with commitments of $200 million, aiming to invest primarily in middle market loans[31] - In September 2025, the company acquired a portfolio of assets valued at approximately $250 million, projected to be accretive to Core NII by one to two cents per share quarterly[32] Market Conditions - The company reported net realized losses of $(14.3) million for the quarter and $(5.9) million for the year, compared to $(0.3) million and $0.2 million in the prior year, reflecting changes in market conditions[19] - As of September 30, 2025, the portfolio had net unrealized depreciation of $46.1 million, compared to $11.4 million in the previous year, driven by capital market conditions[20] Debt and Equity Management - Regulatory debt to equity ratio stood at 1.66x, indicating a disciplined approach to leverage in the investment strategy[2] - For the year ended September 30, 2025, the annualized weighted average cost of debt decreased to 6.8% from 8.5% in 2024[24] - The company sold $118 million of assets to PSSL and $191 million to PSSL II, using the net proceeds to pay down its Credit Facility and reduce the debt-to-equity ratio to 1.41x[33] Cash and Assets - As of September 30, 2025, the company had cash equivalents of $122.7 million, an increase from $112.1 million in 2024[25] - As of September 30, 2025, total assets were $2.91 billion, an increase from $2.11 billion in 2024, indicating a growth of approximately 37.9%[36] Future Outlook - The company expects its dividend policy to remain stable, supported by growing net investment income and potential spillover income of $0.25 per share[6] - Forward-looking statements made by the company are subject to various risks and uncertainties that could cause actual results to differ materially[41] - The company does not guarantee future performance or results based on forward-looking statements[41] Advisory and Contact Information - The information provided does not constitute specific legal, tax, or accounting advice[43] - The company encourages consultation with qualified professionals for legal and tax advice[43] - Contact information for inquiries includes Richard T. Allorto, Jr. at PennantPark Floating Rate Capital Ltd.[44] Company Overview - PennantPark Investment Advisers, LLC manages approximately $10 billion of investable capital, including potential leverage[40] - The company has been providing access to middle-market credit since its inception in 2007[40] - PennantPark Investment Advisers offers a comprehensive range of creative and flexible financing solutions to private equity firms and middle-market borrowers[40] - The company is headquartered in Miami and has offices in major cities including New York, Chicago, and Los Angeles[40]