Saratoga(US:SAR) Globenewswire·2026-01-07 21:05Core Insights - Saratoga Investment Corp. reported a 5.2% increase in net investment income (NII) per share and a 0.7% increase in net asset value (NAV) from the previous quarter, with NAV per share remaining stable [1][3] - The company achieved a quarterly return on equity (ROE) of 13.5%, generating a last twelve months (LTM) ROE of 9.7%, which exceeds the business development company (BDC) industry average of 6.6% [1][4] Financial Performance - As of November 30, 2025, assets under management (AUM) increased to $1.016 billion, up 5.8% from $960.1 million a year ago and up 2.1% from $995.3 million in the previous quarter [2][7] - The net asset value (NAV) was $413.2 million, reflecting an increase of $38.3 million from $374.9 million a year ago and a slight increase of $2.7 million from $410.5 million in the previous quarter [7][30] - Total investment income for the quarter was $31.6 million, a decrease of 11.8% from $35.9 million a year ago but an increase of 3.3% from $30.6 million in the previous quarter [7][31] - Net investment income (NII) per share was $0.61, up from $0.58 in the previous quarter but down from $0.90 a year ago [2][31] - Earnings per share (EPS) for the quarter was $0.74, compared to $0.84 in the previous quarter and $0.64 a year ago [2][31] Dividend and Shareholder Returns - The company declared a base dividend of $0.75 per share for the fourth quarter of fiscal 2026, maintaining a monthly dividend of $0.25 per share [3][15] - Total dividends declared for fiscal year 2026 amounted to $3.25 per share, including a special dividend of $0.25 per share [3][15] Investment Activity - The company reported net originations of $17.2 million during the quarter, with total investments made amounting to $72.1 million, including three new investments and nine follow-ons [4][11] - The fair value of the portfolio increased by $2.5 million during the quarter, with a total portfolio fair value of $1.016 billion [6][11] Credit Quality and Leverage - The overall credit quality improved, with 99.8% of credits rated in the highest category, and only one investment remaining on non-accrual status [4][6] - The company’s regulatory leverage ratio was reported at 168.4%, reflecting a decrease from 160.1% last year [4][30] Market Position and Outlook - The company noted an increase in M&A activity despite competitive market dynamics, indicating a positive outlook for future investment opportunities [4][5] - Management expressed confidence in the resilience of the portfolio and the ability to generate consistent investment performance amid macroeconomic uncertainties [5][22]