Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income was $91 million, or $0.19 per common share, with a net asset value (NAV) of approximately $3 billion, or $6.21 per common share [3] - The net debt-to-total assets ratio stood at 28.2%, with unsecured debt plus unsecured perpetual preferred accounting for 85.3% of total debt plus preferred [3] - Monthly common shareholder distributions of $0.04 per share were announced for February, March, and April, bringing total distributions since the IPO to $4.7 billion, or $21.93 per share [3] Business Line Data and Key Metrics Changes - The company is focusing on new investments in companies with less than $50 million of EBITDA, with the first lien mix increasing by 728 basis points to 71.4% since June 2024 [3][4] - The second lien mix decreased by 371 basis points to 12.7%, and the subordinated structured notes mix decreased by 818 basis points to near zero since June 2024 [4] - The portfolio included 91 companies across 32 industries, with an aggregate fair value of $6.4 billion, and the EBITDA to interest coverage for middle market lending is about 210% [8][10] Market Data and Key Metrics Changes - The company’s portfolio at cost included only 2.8% of investments in software companies, significantly lower than the 22% average across business development companies [9] - The real estate property portfolio at National Property REIT Corp. (NPRC) totaled 14% of investments at cost, with an unlevered investment-level gross cash IRR of 24% since inception [10][11] - Interest income for the 12-month period ending December 2025 was 92% of total investment income, reflecting a strong recurring revenue profile [11] Company Strategy and Development Direction - The company is enhancing portfolio company operations, focusing on first lien senior secured loans, and exiting subordinated structured notes and targeted equity-linked assets [4][10] - The strategy includes a prudent expansion into new states and offices, with significant opportunities identified in Florida and Tennessee [22] - The company aims to redeploy future real estate property exit proceeds primarily into more first lien senior secured loans [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's balance sheet strength and liquidity, highlighting a diversified access to funding and a strong lender community [13][15] - The company noted that tax refunds are not expected to create significant headwinds for loan balances, and consumer demand remains strong [22][23] - Management emphasized the importance of existing customer credit history in determining future financing, which helps mitigate risks associated with new borrowers [24] Other Important Information - The company has successfully completed the exit of its subordinated structured notes portfolio, which now represents only 0.2% of the investment portfolio at cost [10] - The weighted average cost of unsecured debt financing was 4.68% as of December 31, 2025, with a ladder of liabilities extending 26 years into the future [16] Q&A Session Summary Question: Impact of tax refunds on loan balances and strategy regarding Tower - Management indicated that they plan to continue working with First Tower, which has been a strong performer, and noted the tax advantages of holding it as a tax partnership [20][21] Question: Stability of convertible prep product line amid market changes - Management stated that interest rates are a significant factor, and the current environment may lead investors to prefer fixed-rate investments over floating-rate ones [26][28] Question: Consideration of pivoting into enterprise SaaS software - Management expressed a focus on their own investment strategy and noted that they have avoided software investments due to perceived risks, maintaining a low exposure compared to industry averages [36][37]

Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income was $91 million, or $0.19 per common share, with a net asset value (NAV) of approximately $3 billion, or $6.21 per common share [3] - The net debt-to-total assets ratio stood at 28.2%, with unsecured debt plus unsecured perpetual preferred accounting for 85.3% of total debt plus preferred [3] - Monthly common shareholder distributions of $0.04 per share were announced for February, March, and April, totaling $4.7 billion distributed since the IPO [3] Business Line Data and Key Metrics Changes - The company is focusing on new investments in companies with less than $50 million of EBITDA, with a significant increase in the first lien mix by 728 basis points to 71.4% since June 2024 [3][4] - The second lien mix decreased by 371 basis points to 12.7%, and the subordinated structured notes mix decreased by 818 basis points to near zero since June 2024 [4] - The portfolio at cost included 2.8% of investments in software companies, significantly lower than the 22% average across business development companies [9] Market Data and Key Metrics Changes - As of December 2025, the company held 91 portfolio companies across 32 different industries, with an aggregate fair value of $6.4 billion [8] - The interest income for the 12-month period ending December 2025 was 92% of total investment income, indicating a strong recurring revenue profile [11] - Non-accruals as a percentage of total assets stood at approximately 0.7% based on fair market value as of December [12] Company Strategy and Development Direction - The company is enhancing portfolio company operations, focusing on first lien senior secured loans, and exiting subordinated structured notes and targeted equity-linked assets [4][10] - The strategy includes a rotation of assets into core business areas and a focus on cash flow multifamily investments in real estate [10][11] - The company aims to redeploy future real estate property exit proceeds primarily into more first lien senior secured loans [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's balance sheet strength and liquidity, highlighting a diversified access to matched book funding [13][15] - The company has locked in a ladder of liabilities extending 26 years into the future, with a weighted average cost of unsecured debt financing at 4.68% [16] - Management noted strong demand in the non-bank installment finance business, with a high barrier to entry for new competitors [22][24] Other Important Information - The company has successfully exited 56 property investments since 2012, earning an unlevered investment-level gross cash IRR of 24% [10] - The company has a combined balance sheet cash and undrawn revolving credit facility commitments of $1.6 billion as of December [15] Q&A Session Summary Question: Impact of tax refunds on loan balances and strategy regarding Tower - Management indicated no current plans to exit Tower, emphasizing its strong performance and tax advantages as a regulated investment company [20][21] - Tax refunds may create seasonality in borrowing but are not expected to distort Tower's business [22][23] Question: Impact of non-traded BDC market on convertible prep product line - Management noted that interest rates are a significant factor, with a shift towards fixed-rate investments becoming more compelling in the current environment [26][28] Question: Consideration of pivoting into enterprise SaaS software - Management stated a focus on their own underwriting culture, avoiding software investments due to perceived risks associated with cash flow and repayment [36]

Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income was $91 million, or $0.19 per common share, with a net asset value (NAV) of approximately $3 billion, or $6.21 per common share [3] - The net debt-to-total assets ratio stood at 28.2%, with unsecured debt plus unsecured perpetual preferred accounting for 85.3% of total debt plus preferred [3] - Monthly common shareholder distributions of $0.04 per share were announced for February, March, and April, totaling $4.7 billion distributed since the IPO [3] Business Line Data and Key Metrics Changes - The company increased its first lien senior secured middle market loans mix by 728 basis points to 71.4% since June 2024, while the second lien mix decreased by 371 basis points to 12.7% [3][4] - The exit of subordinated structured notes has been nearly completed, with the mix decreasing by 818 basis points to near zero since June 2024 [4][9] - The portfolio included 91 companies across 32 industries, with an aggregate fair value of $6.4 billion, and the EBITDA to interest coverage for middle market lending is about 210% [7][8] Market Data and Key Metrics Changes - The company’s interest income for the 12-month period ending December 2025 was 92% of total investment income, indicating a strong recurring revenue profile [10] - Non-accruals as a percentage of total assets stood at approximately 0.7% based on fair market value as of December [11] Company Strategy and Development Direction - The company is focusing on new investments in companies with less than $50 million of EBITDA and reducing exposure to second lien loans and subordinated structured notes [4] - The strategy includes enhancing portfolio company operations and utilizing a cost-efficient floating rate revolver to match floating rate assets [4] - The company aims to redeploy future real estate property exit proceeds primarily into more first lien senior secured loans [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the balance sheet strength and liquidity, highlighting a diversified access to funding and a strong lender community [12][14] - The company noted that tax refunds do not appear to be a significant headwind to loan balances, and consumer demand remains strong [22][23] - Management emphasized the importance of existing customer credit history for future lending decisions, which helps mitigate risks [24] Other Important Information - The company has locked in a ladder of liabilities extending 26 years into the future, with a weighted average cost of unsecured debt financing at 4.68% as of December 31, 2025 [12][15] - The company has avoided software investments, maintaining less than 3% exposure compared to the BDC average of around 22% [8][35] Q&A Session Summary Question: Impact of tax refunds on loan balances and strategy regarding Tower - Management indicated no plans to exit Tower, citing strong performance and tax advantages as a regulated investment company [19][20] - Tax refunds are not expected to significantly impact loan balances, and consumer borrowing patterns remain consistent [22][23] Question: Stability of convertible prep product line amid market changes - Management noted that interest rates are a significant factor, with a shift towards fixed-rate investments becoming more appealing [26][27] Question: Consideration of entering the software sector - Management expressed caution regarding software investments, emphasizing a focus on their own underwriting standards and avoiding high-risk loans [32][35]

Financial Data and Key Metrics Changes - For June, the net investment income (NII) was $79 million, or $0.17 per common share, with a net asset value (NAV) of approximately $3 billion, or $6.56 per common share [4] - The net debt to total assets ratio stood at 30.4%, with unsecured debt plus unsecured preferred accounting for 77.1% of total debt plus preferred [4] - Monthly common shareholder distributions of $0.45 per share were announced for September and October, with a total distribution of approximately $4.6 billion, or $21.66 per share, since the IPO [5] Business Line Data and Key Metrics Changes - The company has increased its focus on first lien senior secured middle market loans, with the first lien mix rising by 642 basis points to 70.5% from the previous year [5] - The second lien mix decreased by 202 basis points to 14.4%, and further repayments reduced it to 13.7% [6] - Subordinated structured notes decreased to 0.6% of the investment portfolio, down 781 basis points from the prior year [6] Market Data and Key Metrics Changes - The portfolio comprised 85% senior and secured debt, with 97 portfolio companies across 33 different industries, totaling a fair value of $6.7 billion [9] - The middle market lending strategy represented 85% of investments at cost, an increase of 878 basis points from the prior year [9] - Interest income accounted for 95% of total investment income, indicating a strong recurring revenue profile [12] Company Strategy and Development Direction - The company is strategically rotating assets towards first lien senior secured loans, focusing on companies with less than $50 million in EBITDA [6][10] - The real estate portfolio, which represented 14% of investments at cost, is being selectively exited to maximize value [10][24] - The company aims to generate attractive risk-adjusted yields, with an annualized yield of 12.2% for the quarter ended June 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management noted a significant slowdown in inflation affecting property taxes, insurance, and payroll, which is favorable for net operating income (NOI) growth [23] - The company anticipates double-digit growth in NOI going forward, driven by strategic focus on middle market lending [23] - Management emphasized the importance of avoiding upper middle market deals with tight spreads and loose covenants, maintaining a focus on the middle market [26][28] Other Important Information - The company has a strong balance sheet with $1.3 billion in combined cash and undrawn revolving credit facility commitments, and 62% of assets are unencumbered [13][14] - The weighted average cost of unsecured debt financing was 4.52% as of June 30, 2025 [16] Q&A Session Summary Question: Outlook for multifamily income trajectory amidst industry challenges - Management acknowledged industry challenges but noted a substantial turning point in their portfolio, with healthy rent growth in diversified geographic areas [21] - They expect a significant increase in NOI, with a 7% increase in the last year and an anticipation of double-digit growth going forward [23] - The company is strategically focused on middle market first lien senior secured lending, viewing the rotation from lower-yielding real estate to higher-yielding loans as a value driver [25][28]

Financial Performance - Adjusted Net Investment Income (NII) was $0.36 per share in Q1 2025, exceeding the regular dividend of $0.25 per share[6] - The annualized adjusted NII Return on Equity (ROE) for Q1 2025 was 15.4%[6] - A Q2 2025 regular dividend of $0.25 per share and a special dividend of $0.04 per share were declared[6] - The dividend coverage ratio in Q1 2025 was 144%[6] Portfolio Composition and Activity - The total portfolio fair value was $1.8 billion, diversified across 146 companies[6] - 90% of the portfolio was invested in senior secured debt, with 83% being 1st lien[6] - The weighted average yield of the performing debt portfolio was 12.2%[6] - Q1 2025 saw total acquisitions of $66 million and dispositions of $85 million[6] Leverage and Liquidity - The company has a diverse leverage program totaling $1.6 billion, with well-laddered maturities[6] - 67% of the outstanding leverage was unsecured as of March 31, 2025[6] - Available liquidity was $629 million, including $530 million of available borrowing capacity[6] - The net regulatory leverage ratio was 1.13x, within the target range of 0.9x - 1.20x[6]