All information is as of December 31, 2025 unless otherwise noted Summary | | • Net investment income (NII) for the quarter ended December 31, 2025 was $135 million, or $0.48 per share, as compared to $159 million, or $0.57 per share, for the quarter ended September 30, 2025. | | --- | --- | | Fourth Quarter Performance | • for the quarter ended September 30, 2025(1) . | | | Adjusted net investment income (Adjusted NII) for the quarter ended December 31, 2025 was $147 million, or $0.52 per share, as compare ...

Core Insights - The company reported a strong fourth quarter and full-year performance, emphasizing a leadership transition and efforts to improve return on equity through portfolio management and balance sheet actions [7] Portfolio and Investment Strategy - Barings-originated positions accounted for 96% of the portfolio at fair value at quarter-end, an increase from 76% at the beginning of 2022, with a weighted average yield at fair value of 9.6% [1] - The company is actively rotating out of legacy holdings from MVC Capital and Sierra transactions, having exited approximately $50 million in legacy positions during the fourth quarter [2] - The firm has avoided annual recurring revenue loans and deeply cyclical issuers, focusing on a disciplined underwriting approach [5] Financial Performance - The net asset value (NAV) per share was reported at $11.09, nearly unchanged from $11.10 in the previous quarter, with net investment income at $0.27 per share, down from $0.32 [4] - The board declared a first-quarter dividend of $0.26 per share, consistent with the prior quarter, equating to a 9.4% yield on NAV based on the quarter-end NAV [3] Sierra Portfolio Management - The Sierra portfolio generated about $24.3 million in sales and repayments during the fourth quarter, with a significant reduction in positions from 16 valued at $79 million to 12 valued at approximately $32 million [9] - The valuation of the Sierra Credit Support Agreement increased to $60.5 million, attributed to underlying portfolio activity and updated maturity assumptions [10] Credit Metrics and Sector Exposure - The portfolio remains focused on secured lending, with 75% in secured investments and about 70% in first-lien securities, maintaining a weighted average interest coverage of 2.4x [11] - Non-accruals, excluding assets covered by the Sierra CSA, decreased to 0.2% of assets at fair value, down from 0.4% in the prior quarter [12] - Software-related issuers represent approximately 14% of the portfolio's fair value, with the company under-indexed to software compared to many private credit portfolios [13] Leverage and Funding - The company's net leverage ratio was 1.15x at quarter-end, down from 1.26x, aligning with its long-term target range [15] - The company repaid $112.5 million of private placement unsecured notes and issued $300 million of senior unsecured notes, with unsecured debt comprising roughly 84% of outstanding debt [16] Shareholder Returns and Capital Allocation - Share repurchases contributed $0.02 per share to NAV, with over 450,000 shares repurchased in the fourth quarter and more than 700,000 for the full year [18] - The company has approximately $0.80 per share of spillover income, providing flexibility as rates normalize [17]

Group 1 - Herzfeld Credit Income Fund, Inc. announced an estimated net asset value (NAV) of $2.16 as of January 30, 2026, following a 1-for-10 reverse stock split effective February 9, 2026, resulting in a post-reverse split adjusted NAV of $21.56 [1] - Thomas J. Herzfeld Advisors, Inc. is an SEC registered investment advisor specializing in investment analysis and account management in closed-end funds, established in 1984 [2] Group 2 - The Fund's investment is subject to certain risks, including market risk, and shares of closed-end funds often trade at a discount from their NAV [3] - Forward-looking statements made by the Fund or its advisor may involve various assumptions and uncertainties, and actual results could differ materially from those anticipated [4]

Core Viewpoint - Oxford Lane Capital Corp. announced a preliminary estimate of its net asset value (NAV) per share as of January 31, 2026, ranging between $13.48 and $13.78, indicating potential fluctuations in future financial performance [6]. Company Overview - Oxford Lane Capital Corp. is a publicly-traded registered closed-end management investment company that primarily invests in debt and equity tranches of collateralized loan obligation (CLO) vehicles [4]. Financial Data - The NAV estimate provided is unaudited and does not represent a comprehensive statement of the company's financial condition for January 2026, as it has not undergone typical quarter-end financial closing procedures [6]. - As of January 31, 2026, the company had approximately 97.6 million shares of common stock issued and outstanding [6].

Core Viewpoint - Agronomics Limited reports a decrease in its unaudited Net Asset Value per share, indicating a decline in the company's financial performance as of the end of 2025 [1] Financial Performance - The unaudited Net Asset Value per share as of 31 December 2025 was 13.78 pence, down 5.9% from 14.65 pence at 30 September 2025 [1] - The company's total Net Assets are valued at £140 million, which includes investments totaling £138 million and uninvested cash and short-term deposits amounting to £2.1 million [1]

Core View - Ares Capital Corporation (ARCC) reported strong financial results for 2025, with core earnings per share (EPS) of $2.01 for the full year, fully covering dividends and achieving a return on equity (ROE) exceeding 10% [5][20]. - The company ended 2025 with a net asset value (NAV) per share of $19.94, reflecting a modest increase from the previous year [21]. - ARCC's portfolio remains well-diversified, with over 600 borrowers and a record $29.5 billion in total portfolio at fair value, marking a 10% increase year-over-year [29][30]. Financial Performance - Core EPS for Q4 2025 was $0.50, consistent with the previous quarter but down from $0.55 a year ago, primarily due to declining base rates [19]. - GAAP net income per share for 2025 was $1.86, down from $2.44 in 2024 [19]. - The company generated over $470 million in gross gains from its equity co-investment portfolio during 2025, with an average internal rate of return (IRR) exceeding 25% [12][13]. Investment Activity - ARCC achieved a record $15.8 billion in new investment commitments for 2025, with over $5.8 billion originated in Q4 alone, representing a 50% increase from 2024 [28]. - The majority of new lending activity in 2025 came from incumbent borrowers, with a significant increase in transaction activity in the second half of the year [6][8]. - The company added over 100 new borrowers to its portfolio in 2025, a new record, reflecting its broad market reach and specialized industry verticals [8][9]. Portfolio Quality - The average portfolio leverage decreased by approximately a quarter turn of EBITDA from the prior year, with an average interest coverage ratio improving to 2.2 times [11][31]. - Non-accruals at cost remained stable at 1.8%, well below historical averages, indicating strong credit quality [35]. - The weighted average organic EBITDA growth rate of ARCC's borrowers was over three times that of GDP, demonstrating robust performance relative to the broader market [11]. Market Outlook - The company remains confident in its competitive advantages, including its experienced team and strong market relationships, which are expected to support future performance [6][7]. - ARCC anticipates continued growth opportunities from strategic investments and a healthy credit performance outlook, despite potential headwinds from lower short-term interest rates [17][20]. - The company is well-positioned to capitalize on market opportunities, supported by a diversified capital base and a strong liquidity position of over $6 billion [25][26]. Dividend Outlook - ARCC plans to maintain its dividend level, supported by a strong earnings power and over two quarters of spillover income available for distribution [26][15]. - The first quarter 2026 dividend is set at $0.48 per share, continuing a track record of stable or increasing dividends for 66 consecutive quarters [26]. - The company believes its current dividend level is achievable in the prevailing interest rate environment [15].

Core Insights - Gladstone Investment reported strong performance in fiscal 2026, with significant portfolio growth and a focus on maintaining monthly distributions while pursuing buyout investments that combine debt and equity [3][6]. Investment Activity - In the first nine months of fiscal 2026, the company invested approximately $163 million across four new portfolio companies, a decrease from about $221 million in fiscal 2025 [1]. - The company completed one new buyout investment during the quarter, bringing the total to 29 operating companies, with a healthy acquisition pipeline [2][6]. Financial Performance - Adjusted net investment income (NII) was reported at $0.21 per share, with total assets rising to approximately $1.2 billion, an increase of about $92 million from the previous quarter [2][6]. - Total investment income was $25.1 million, slightly below the prior quarter's $25.3 million, primarily due to lower dividend and success fee income [7]. Asset Valuation and NAV - The net asset value (NAV) increased to $14.95 per share from $13.53, driven by $1.77 per share of net unrealized appreciation and $0.09 per share of net realized gains [14]. - Portfolio company valuations increased by $70.2 million due to improved performance and higher valuation multiples, partially offset by weaker performance in some areas [13][22]. Debt and Financing Strategy - The company redeemed $74.8 million of 8% notes and issued $60 million of 6.875% notes, reducing interest on approximately $75 million of debt by about 110 basis points [4][15]. - The weighted average yield of the debt portfolio remained robust at 12.9%, with over half of the portfolio at its interest rate floor of 12.1% [5][9]. Distributions and Spillover Income - Gladstone Investment maintained its monthly dividend at $0.08 per share, with an estimated spillover income of approximately $22.9 million, or $0.58 per share, as of Dec. 31 [18]. - Total distributable income was reported at $108.7 million, or $2.73 per share, reflecting net unrealized appreciation and the GAAP-adjusted spillover balance [19]. Credit Quality - The company had three portfolio companies on non-accrual status, unchanged from the prior quarter, representing 3.8% of the total portfolio at cost [20]. - Management expressed improved confidence in the non-accrual investments, noting positive EBITDA generation despite existing structural issues [21].

Core Insights - Kayne Anderson Energy Infrastructure Fund, Inc. reported its net assets as of January 31, 2026, totaling $2.5 billion, with a net asset value per share of $14.55 [2][6] - The asset coverage ratio under the Investment Company Act of 1940 was 658% for senior securities representing indebtedness and 495% for total leverage [2][6] Financial Summary - Total assets amounted to $3,444 million, with investments constituting $3,429.8 million, cash and cash equivalents at $2.7 million, and accrued income of $9.4 million [3] - Total liabilities were reported at $364 million, including a credit facility of $69 million, notes of $400 million, and a deferred tax liability of $347.3 million [3] Investment Composition - The Company had 169,126,038 common shares outstanding as of January 31, 2026 [4] - Long-term investments were primarily in Midstream Energy Companies (95%), with smaller allocations to Power Infrastructure Companies (4%) and Other (1%) [4] - The ten largest holdings included Enterprise Products Partners L.P., Energy Transfer LP, and The Williams Companies, each representing approximately 9.8% of long-term investments [4]

Core Viewpoint - The recent dip in Bitcoin prices to around $75,500 has temporarily placed Strategy's average purchase cost of Bitcoin at approximately $76,037 per coin, but this does not fundamentally alter the company's financial position or create balance sheet stress [1][2]. Group 1: Bitcoin Holdings and Debt Management - Strategy currently holds 712,647 Bitcoin, all unencumbered, meaning there is no risk of forced selling due to price drops [2]. - The company has $8.2 billion in convertible debt, which, while significant, provides flexibility in managing obligations [2]. - Strategy can extend maturities or convert debt to shares when due, with the first convertible note put date not until Q3 2027 [3]. Group 2: Cash Reserves and Fundraising Strategy - Strategy has $2.25 billion in cash on its balance sheet, reserved for dividend payments, indicating a strong liquidity position [4]. - Historically, the company has funded Bitcoin purchases through at-the-market (ATM) offerings, selling shares at current market prices to minimize market impact [5]. - The effectiveness of this fundraising strategy is contingent on the stock trading at a premium to its net asset value (mNAV), which has recently shifted to a discount as Bitcoin prices fell [6]. Group 3: Impact of Price Fluctuations - Trading below the cost basis is not a crisis for Strategy; it merely slows the company's ability to increase its Bitcoin holdings without diluting shareholders [7]. - In 2022, when MSTR shares traded below the Bitcoin holding value, the company added only about 10,000 Bitcoin, illustrating the impact of price on growth potential [7].

Core Insights - KBC Ancora reported a profit of EUR 74.4 million for the first half of the financial year 2025/2026, a slight increase from EUR 73.9 million in the same period of the previous year, primarily driven by dividend income from KBC Group [1][3][9]. Financial Performance - Total income for the first half of 2025/2026 was EUR 77.955 million, consistent with EUR 77.738 million from the previous year [2]. - Operating costs were EUR 1.5 million, similar to the previous year's figure, while financial charges decreased to EUR 2.0 million from EUR 2.269 million [2][12]. - The profit after taxes for the first half was EUR 74.358 million, translating to EUR 0.97 per share, compared to EUR 0.96 per share in the prior year [2][3]. Balance Sheet Overview - As of December 31, 2025, KBC Ancora's total balance sheet stood at EUR 3.705 billion, an increase of EUR 76.4 million from the end of the previous financial year [5][6]. - Current assets rose significantly to EUR 105.696 million from EUR 29.290 million, with cash at bank increasing to EUR 350,000 [5][7]. - Total equity increased by EUR 74.4 million, reflecting the profit generated in the first half of the financial year [8]. Shareholding and Valuation - KBC Ancora maintained its holding of 77,516,380 shares in KBC Group, with a book value of EUR 46.44 per share [7][10]. - The net asset value of KBC Ancora shares was calculated at EUR 112.02, indicating a discount of 34.6% compared to the trading price of EUR 73.30 [11][10]. Dividend Policy - KBC Ancora intends to distribute 90% of the recurring result available for distribution as dividends, with a decision on the interim dividend for 2025/2026 expected by the end of May 2026 [15].