Group 1 - The net asset value (NAV) of EfTEN United Property Fund units was 11.24 euros at the end of July, reflecting a month-on-month increase of 0.6% [1] - The fund reported a net profit of 166 thousand euros in July and a total of 1.846 million euros in net profit for the first seven months of 2025, compared to 447 thousand euros in the same period last year [1] - If the investment in EfTEN Real Estate Fund AS shares were recorded at book value, the NAV would be 11.33 euros, indicating a 0.8% month-on-month increase [1] Group 2 - The largest profit of 88 thousand euros in July was generated from the investment in EfTEN Real Estate Fund 5, which saw a net asset value increase of 0.7% month-on-month [2] - The growth of EfTEN Real Estate Fund 5 was primarily supported by EfTEN Kristiine OÜ, which owns the Kristiine shopping center, with its equity value rising by 1.2% month-on-month [2] Group 3 - Invego Uus-Järveküla OÜ, where the fund holds an 80% ownership, completed two terraced houses in the third development stage, generating a profit of 52 thousand euros [3] - The fund also earned 38 thousand euros in interest from its investment in Invego Uus-Järveküla OÜ [3] Group 4 - At the beginning of August, Invego Uus-Järveküla OÜ distributed 1.2 million euros to the fund, which included 126 thousand euros in accrued interest and the remainder as principal repayment [4] - The fund plans to distribute the received interest along with funds from EfTEN Real Estate Fund 5 to investors at the beginning of the fourth quarter of 2025 [4]

Core Viewpoint - PennantPark Investment Corporation reported its financial results for the second quarter ended March 31, 2025, highlighting a decrease in net investment income and net asset value per share, alongside significant portfolio activity and investment performance metrics [1][2][4]. Financial Highlights - Investment portfolio totaled $1,213.6 million with net assets of $488.1 million as of March 31, 2025 [2]. - GAAP net asset value per share was $7.48, reflecting a quarterly change of -1.2% [2]. - Net investment income for the quarter was $11.4 million, or $0.18 per share, down from $14.3 million or $0.22 per share in the same quarter of the previous year [15]. - Total investment income for the quarter was $30.7 million, compared to $36.0 million in the prior year [13]. Portfolio Activity - The company made purchases of investments totaling $176.8 million and sales and repayments of investments amounting to $263.1 million during the quarter [2][6]. - The portfolio consisted of 158 companies with an average investment size of $6.9 million, and a weighted average yield on debt investments of 12.0% [4]. - As of March 31, 2025, the portfolio included 41% first lien secured debt and 29% preferred and common equity [4]. Investment Income and Expenses - Investment income for the three months ended March 31, 2025, was primarily derived from first lien secured debt, totaling $22.1 million [13]. - Total expenses for the quarter were $19.2 million, a decrease from $21.7 million in the same quarter of the previous year [14]. - The decrease in expenses was attributed to lower interest and debt-related expenses [14]. Realized and Unrealized Gains - Net realized losses for the quarter were $(27.7) million, compared to $(31.0) million in the same quarter of the previous year [17]. - The net change in unrealized appreciation on investments was $27.1 million for the quarter [18]. Liquidity and Capital Resources - As of March 31, 2025, the company had $314.5 million in outstanding borrowings under the Truist Credit Facility, with a weighted average interest rate of 6.7% [22]. - Cash and cash equivalents available for investing and corporate purposes were $32.6 million [23]. Distributions - The company declared distributions of $0.24 per share for the quarter, totaling $15.7 million, compared to $0.21 per share in the same quarter of the previous year [27].

Financial Data and Key Metrics Changes - For the third fiscal quarter, the company's net investment income (NII) was $83.5 million, equating to $0.19 per common share, with a net asset value (NAV) of $3.2 billion or $7.25 per common share [4] - The net debt to total assets ratio stood at 28.7%, with unsecured debt plus unsecured preferred making up 87.5% of total debt plus preferred [4] - The company has distributed over $4.5 billion or $21.57 per share since inception, with monthly common shareholder distributions of $0.45 per share announced for May, June, July, and August [5] Business Line Data and Key Metrics Changes - The portfolio at fair value comprised 65.5% first lien debt, up 650 basis points from the prior year, while senior secured second lien debt decreased to 10.5%, down 410 basis points [6] - The company originated $196 million in investments during the quarter, with $149 million (76%) in first lien loans [11] - The real estate property portfolio yielded an income of 4.5% for the quarter, with an unrealized gain of $460 million as of March [9] Market Data and Key Metrics Changes - The company held 114 portfolio companies across 33 different industries, with an aggregate fair value of $6.9 billion [6] - The weighted average EBITDA per portfolio company was just under $100 million [10] - Non-accruals as a percentage of total assets were approximately 0.6% [10] Company Strategy and Development Direction - The company focuses on first lien senior secured loans, with a strategy to continue investing primarily in this area [8] - The management aims to achieve a value-maximizing orderly reduction in the size of the real estate portfolio, which has historically provided strong returns [20] - The company is under-levered compared to peers, with a debt to total capital ratio around 30%, reflecting a conservative approach [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is affected by macroeconomic factors, including interest rate hikes, which have slowed the pacing of exits from real estate investments [20] - The company is optimistic about future opportunities to enhance net investment income through portfolio rotation and leveraging its diversified funding sources [28] - Management emphasized the importance of maintaining a strong balance sheet and liquidity to capitalize on attractive investment opportunities [12] Other Important Information - The company has a combined balance sheet cash and undrawn revolving credit facility commitments of $1.7 billion, with $4.4 billion of unencumbered assets [12] - The weighted average cost of unsecured debt financing was 4.33% as of March [15] Q&A Session Summary Question: Other income from NP REIT was low this quarter; should this bounce back? - Management indicated that the low other income reflects a slowdown in exits due to macroeconomic conditions, but they expect normalization over time [20] Question: How does the company plan to manage dividend coverage with SOFR trends? - Management highlighted a focus on lower middle market lending and portfolio rotation to enhance yields, while also considering leverage options [27][28] Question: Will the company prioritize preferred financing over traditional unsecured debt? - Management stated that both unsecured debt and preferred financing will be prioritized, with a focus on maintaining a diverse funding strategy [30]

Financial Performance - Total investment income for Q1 2025 was $12.118 million, compared to $16.526 million in Q1 2024[35] - Core investment income for Q1 2025 was $12.102 million, compared to $16.453 million in Q1 2024[18] - Net investment income (NII) for Q1 2025 was $4.340 million ($0.47 per share), compared to $6.226 million ($0.67 per share) in Q1 2024[35] - Net asset value (NAV) as of March 31, 2025, was $173.511 million ($18.85 per share), compared to $178.493 million ($19.41 per share) as of December 31, 2024[33] Portfolio Composition and Trends - Investment portfolio at fair value as of March 31, 2025, was $406.423 million, comprised of 93 different portfolio companies[33] - The debt investment portfolio, excluding CLO Funds, equities, and Joint Ventures, totaled $324.8 million at fair value as of March 31, 2025[9] - Non-accruals on debt investments, as of March 31, 2025, were six debt investments representing 2.6% of the Company's investment portfolio at fair value[9] - Weighted average annualized yield (excluding income from non-accruals and collateralized loan obligations) was approximately 11.0% as of March 31, 2025[9] Capital Structure and Liquidity - Par value of outstanding borrowings, as of March 31, 2025, was $255.4 million, compared to $267.5 million as of December 31, 2024[9] - Asset coverage ratio of total assets to total borrowings was 168% as of March 31, 2025[9]

Financial Performance - Net investment income per share for Q4 2024 was $0.35, while earnings per share were $0.10[9] - The net asset value per share decreased by $0.30, or 1.9%, to $15.43 as of December 31, 2024, primarily due to mark-to-market adjustments[9] - The company declared a Q4 2024 base distribution of $0.36 per share and a year-end special distribution of $0.05 per share[9] Debt and Leverage - As of December 31, 2024, the company had $1.12 billion in total principal amount of debt outstanding, with 38% as senior secured bank debt and 62% as unsecured debt[9] - The net debt-to-equity ratio was 1.27x as of December 31, 2024, compared to 1.18x as of September 30, 2024[9] - The company issued $172.5 million of 7.50% unsecured notes due 2029[9] Investment Portfolio - Total investments at fair value were $1.82 billion across 105 portfolio companies in 24 industries as of December 31, 2024[9] - Senior secured loans comprised 86.1% of the investment portfolio, with 86.0% in first lien investments[9] - Investments on non-accrual status were 1.41% of the total investment portfolio at fair value[9] - New investment commitments for the quarter were $106 million, of which $100 million were funded[12]

Financial Performance - Net investment income per share was $0.48 ($0.49 excluding excise taxes)[6] - Net asset value per share was $16.70[6] - Annualized ROE on net investment income was 11.5% (11.8% excluding excise taxes)[6] - The company declared a 4Q'24 regular dividend per share of $0.40, resulting in an annualized dividend yield of approximately 9.6%[6] Portfolio Composition - The total fair value of the portfolio was approximately $2.0 billion, invested in 110 companies[6] - The weighted average yield at amortized cost of debt investments was 10.7%[6] - Approximately 98% of the portfolio consisted of first-lien loans[6] - Non-accrual investments represented 1.3% of the portfolio based on fair value[6] Balance Sheet and Liquidity - The outstanding debt balance was $858 million, with a quarter-end debt-to-equity ratio of 0.72x[6] - Total liquidity was $513 million, including $71 million in cash and $442 million in undrawn committed debt capacity[6]