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]