Core Viewpoint - Chicago Atlantic BDC's strategy is positioned to withstand current pressures in private credit markets, emphasizing its differentiated exposure and underwriting approach, which limits risks associated with software, receivables factoring, and recent fraud cases in syndicated facilities [1] Financial Performance - The company announced a quarterly dividend of $0.34 per share, maintaining this rate for six consecutive quarters, with total dividends for 2025 amounting to $1.36 per share [2] - Net investment income (NII) for Q4 2025 was reported at $0.36 per share, with a full-year NII of $1.45 per share, showcasing the company's ability to generate attractive returns while focusing on downside protection through senior secured lending [5] - Net expenses increased to $5.9 million from $5.6 million in the prior quarter, leading to a decrease in NII from $9.5 million ($0.42 per share) in Q3 to $8.3 million ($0.36 per share) in Q4 [3] Investment Metrics - Gross investment income for Q4 totaled $14.2 million, down from $15.1 million in Q3, primarily due to one-time fees recognized in the previous quarter [4] - The weighted average yield on debt investments was 15.8%, significantly higher than the average public BDC yield of 10.8% [8] - 99.5% of the portfolio is senior secured, contrasting with an average of 24.9% exposure to subordinated debt and equity among other BDCs [8] Portfolio and Investment Strategy - As of December 31, 2025, the company had 39 portfolio company investments, with 25% allocated to non-cannabis sectors [6] - The average credit investment size was approximately 2.4% of the debt portfolio at fair value, with a third-party valuation provider used for quarterly valuations [6] - The company funded $31.7 million in new debt investments during Q4 across seven portfolio companies, with 100% being senior secured [9] Market Outlook and Opportunities - Management noted improving momentum in cannabis policy and deal activity, which could enhance lending opportunities, particularly with the administration's commitment to reclassifying cannabis [13] - The pipeline for potential debt transactions totaled approximately $732 million, with $616 million in cannabis opportunities and $116 million in non-cannabis opportunities [14] - Consolidation activity is increasing in various states, reflecting a more favorable environment for mergers and acquisitions in the cannabis sector [15]

Core Insights - Stellus Capital Investment reported a fourth-quarter investment portfolio at fair value of $1.01 billion across 115 companies, with no change from the previous quarter [1][6] - The company generated GAAP net investment income of $0.29 per share and total realized income of $0.48 per share, which includes $5.5 million in equity gains [3][7] - The net asset value (NAV) per share declined by $0.23 due to dividend payments exceeding earnings and net realized losses [2][7] Investment Activity - During the fourth quarter, Stellus invested $34.1 million in four new portfolio companies and had $18 million in other investment activities [1] - The company received repayments totaling $37.9 million from four full repayments, $7 million from five equity realizations, and $9.1 million in other repayments [1] Portfolio Quality - 99% of loans in the portfolio are secured, and 92% are floating rate loans, with an average loan size of $8.8 million [6][8] - Asset quality was described as "slightly better than planned," with 81% of the portfolio rated one or two, while 19% rated three or below [8] Software and AI Exposure - Stellus has limited exposure to the software and AI sectors, with only 6.8% of the loan portfolio related to industry-specific tech-enabled solutions [9][10] - Management expressed confidence that AI would not materially negatively impact recovery values for these loans [10] Future Outlook - The company expects to maintain its portfolio size at approximately $996 million through the first quarter of 2026, with anticipated equity realizations of about $2 million [11] - Stellus declared a first-quarter dividend of $0.34 per share and plans to maintain this level for the second quarter, subject to board approval [12] Management Changes and Share Repurchase - Stellus's external manager is set to be acquired by Ridgepost Capital, with the transaction expected to close in mid-2026 [5][15] - The board authorized a $20 million share repurchase program, citing the stock's trading at a 30% discount to NAV [5][16]

Core Insights - Goldman Sachs BDC (GSBD) continues to advance its integration into Goldman Sachs' Direct Lending platform, resulting in improved portfolio quality and a higher mix of first-lien exposure [3][5][12] Financial Performance - For Q4 2025, GSBD reported a net asset value (NAV) of $12.64 per share, reflecting a decline of approximately 1% quarter-over-quarter, primarily due to net realized and unrealized losses [4][12] - The net investment income (NII) for the quarter was $0.37 per share, with a supplemental dividend of $0.03 and a base dividend of $0.32 declared for Q1 2026 [4][12] - Leverage increased to a net debt-to-equity ratio of 1.27x as of December 31, 2025, compared to 1.17x at September 30, 2025 [13] Portfolio Composition - First-lien exposure rose to 97% of the portfolio from 89%, with 57% of the portfolio reflecting deals benefiting from the 2022 reorganization [2][5] - The company has significantly reduced its annual recurring revenue (ARR) exposure, which fell to about 11% from nearly 39% since 2022 [6][5] Investment Strategy - GSBD has launched a formal AI disruption underwriting framework to evaluate risks associated with software lending, reflecting a strategic shift towards EBITDA-based investments [5][10] - The platform has closed or committed to 26 new software deals since January 2025, with an average Rule of 40 of 55.8%, indicating strong revenue growth and cash EBITDA margins [10][11] Credit Quality and Risk Management - Non-accruals decreased slightly to 1.9% of fair value, down from 2.0%, indicating improved credit quality [4][17] - The company is actively managing risks associated with AI disruption, having passed on a deal due to concerns in October 2023 [9][10] Originations and Repayments - In 2025, GSBD made approximately $1.2 billion in new commitments across 35 deals, with 100% of Q4 originations being first-lien loans [14] - Total repayments for 2025 were $1.1 billion, with over 78% coming from pre-2022 vintage loans [16]

NYSE:NREF 4Q 2025 Financial Supplement February 26, 2026 CONTACT NEXPOINT REAL ESTATE FINANCE (NYSE:NREF) 300 Crescent Court, Suite 700 Dallas, Texas 75201 (w) nref.nexpoint.com INVESTOR RELATIONS Kristen Griffith (e) kgriffith@nexpoint.com Cautionary Statements FORWARD LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looki ...