Portman Ridge(PTMN) - 2025 Q4 - Annual Results

Investment Income - Total investment income for the year ended December 31, 2025, was $61.2 million, a decrease from $62.4 million in 2024[14] - Net investment income ("NII") for the year ended December 31, 2025, was $25.1 million ($2.28 per share), compared to $24.0 million ($2.59 per share) in 2024[14] - Total investment income for 2025 was $61,152 million, a slight decrease of 2.0% compared to $62,432 million in 2024[38] - Net investment income rose to $25,132 million in 2025, up 4.5% from $24,044 million in 2024[38] - Core investment income decreased to $54,257,000 in 2025 from $62,197,000 in 2024, a decline of 12.8%[17] - An increase in interest rates by 1% is expected to result in a $2,117,000 increase in net investment income[24] Asset and Liability Management - Net asset value ("NAV") as of December 31, 2025, was $209.2 million ($16.68 per share), down from $231.3 million ($17.55 per share) as of September 30, 2025[6] - Total assets increased to $523,641 million in 2025 from $453,634 million in 2024, representing a growth of 15.4%[36] - Total liabilities increased to $314,485 million in 2025, up 14.3% from $275,141 million in 2024[36] - The net increase in net assets resulting from operations was $11,492,000 in 2025, compared to a loss of $5,935,000 in 2024[16] - Net increase in net assets resulting from operations was $11,492 million in 2025, a recovery from a decrease of $5,935 million in 2024[38] Shareholder Actions - Total shares repurchased in 2025 amounted to 698,548 at an aggregate cost of approximately $9.3 million, which was accretive to NAV by $0.24 per share[6] - The company announced a transition to monthly base distributions beginning in April 2026, with a base distribution of $0.09 per share[11] - Weighted average common stock outstanding increased to 11,001,571 shares in 2025 from 9,272,809 shares in 2024[38] Financial Performance - The company completed a merger with Logan Ridge Finance Corporation on July 15, 2025, enhancing scale and operational efficiency[2] - Total deployment for the year was approximately $52.3 million, with net repayments and sales of approximately $64.6 million[6] - The company issued $110 million in new notes in 2025, including $35 million of 7.50% notes due 2028 and $75 million of 7.75% notes due 2030[2] - Debt investments on non-accrual as of December 31, 2025, were 13, representing 4.0% of the investment portfolio at fair value[14] - The weighted average annualized yield was approximately 12.9% as of December 31, 2025[14] - Unrestricted cash decreased to $3.7 million in 2025 from $17.5 million in 2024, a decline of 78.9%[20] - Total expenses decreased to $36,208 million in 2025 from $38,388 million in 2024, a reduction of 5.7%[38] - Management fees for 2025 were $6,584 million, slightly up from $6,559 million in 2024[38] - Net realized losses on investments were $21,436 million in 2025, compared to losses of $31,183 million in 2024, indicating an improvement[38] Future Outlook - The company plans to hold a conference call on March 6, 2026, to discuss the fourth quarter and full year 2025 financial results[25]