Monroe Capital Corporation BDC Announces First Quarter 2025 Results

Core Viewpoint - Monroe Capital Corporation reported its financial results for the first quarter of 2025, highlighting a decrease in net investment income and net asset value, while maintaining a strong dividend yield supported by prior performance [1][3][5]. Financial Highlights - The company paid a dividend of $0.25 per share, reflecting an annualized yield of approximately 14.3% [3][4]. - Adjusted Net Investment Income (NII) for Q1 2025 was $4.2 million, or $0.19 per share, down from $6.2 million, or $0.29 per share in Q4 2024 [5][12]. - Net Asset Value (NAV) decreased by 2.5% to $186.9 million, or $8.63 per share, compared to $191.8 million, or $8.85 per share at the end of 2024 [5][8]. Portfolio and Investment Performance - Total investments at fair value were $430.6 million as of March 31, 2025, down from $457.0 million at the end of 2024 [7][10]. - The number of portfolio company investments decreased from 91 to 85, with 3.4% of these investments on non-accrual status [10][12]. - The weighted average contractual yield was 10.1%, while the effective yield dropped to 9.2% [10]. Debt and Leverage - The company's debt-to-equity leverage decreased from 1.53 times to 1.45 times due to paydowns of the revolving credit facility [6][17]. - As of March 31, 2025, the company had $141.2 million in debt outstanding on its revolving credit facility and $130.0 million on its 2026 Notes [17]. Income and Expenses - Total investment income for Q1 2025 was $11.6 million, down from $14.0 million in Q4 2024, primarily due to lower effective yields and a decrease in average invested assets [13][14]. - Total expenses decreased to $7.6 million from $8.0 million in the previous quarter, attributed to a lower interest rate environment [14][30]. Net Gains and Losses - The net loss for Q1 2025 was $(3.6) million, an improvement from $(7.7) million in Q4 2024, driven by unrealized losses from specific portfolio companies [15][16]. - The net increase in net assets resulting from operations was $0.5 million, or $0.03 per share, compared to a decrease of $(1.7) million, or $(0.08) per share in the previous quarter [16][28].