Alaris Equity Partners Income Trust Releases 2025 Second Quarter Financial Results

Core Insights - Alaris Equity Partners Income Trust reported strong revenue growth despite facing foreign exchange challenges, with total revenue and operating income increasing by 20.9% year-over-year for Q2 2025 [5][8]. - The Trust's net distributable cash flow decreased by 31.8% in Q2 2025 compared to the previous year, primarily due to higher cash taxes and transaction costs [11][26]. - The Trust's net book value per unit decreased to $23.57, reflecting a $0.77 decline from the previous quarter, largely due to unrealized foreign exchange losses [6][7]. Financial Performance - Total revenue and operating income for Q2 2025 reached $34.5 million, up from $28.5 million in Q2 2024, marking a 20.9% increase [5][8]. - Year-to-date revenue for the Trust was $70.8 million, a 20.5% increase from $58.8 million in the same period last year [5][8]. - The Trust's net distributable cash flow for Q2 2025 was $17.9 million, down from $26.3 million in Q2 2024, indicating a 31.8% decline [11][26]. Investment Activities - Alaris invested approximately $154 million into new and existing partners during the first half of 2025, including a follow-on investment of US$21.5 million in The Shipyard, LLC [6][13]. - The Trust's run rate revenue at the end of Q2 2025 was approximately $183 million, reflecting a 12.5% increase from $162.6 million in Q2 2024 [6][14]. Partner Performance - The Trust earned $42.5 million in revenue from partners in Q2 2025, which included $41.8 million from partner distributions and $0.7 million from third-party fees, consistent with $42.3 million earned in Q2 2024 [12][8]. - The weighted average earnings coverage ratio for Alaris' partners was approximately 1.5x, with 13 out of 20 partners exceeding this ratio [6][9]. Outlook - Alaris anticipates total revenue from its partners in Q3 2025 to be approximately $56.9 million, an increase from Q2 2025 due to expected incremental distributions [12][19]. - The Trust's run rate payout ratio is projected to be between 60% and 65%, indicating a stable distribution strategy moving forward [16][32].