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SLR Investment Q3 investment income falls on smaller portfolio

By Reuters News


Overview

  • US specialty finance firm's Q3 net investment income per share was flat sequentially at $0.33

  • Q3 net investment income fell to $17.8 mln from $21.6 mln due to a smaller average income-producing portfolio

  • Company declared $0.31-per-share quarterly distribution and repurchased $10 mln of shares in October


Outlook

  • SLR Investment declared a quarterly distribution of $0.31 per share, payable Dec. 28

  • Company expects continued focus on specialty finance originations amid higher-for-longer interest rates

  • Company says it is well positioned to deploy over $850 mln in available capital


Result Drivers

  • PORTFOLIO SIZE - Co said lower gross and net investment income yr/yr was mainly due to a smaller average investment portfolio

  • SPECIALTY FINANCE ORIGINATIONS - 95% of $575 mln in new investments were in specialty finance, which co expects to continue

  • PORTFOLIO QUALITY - Co said watchlist loans remain below historical average and portfolio credit quality remains stable


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Investment Originations

$575.10 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the closed end funds peer group is "buy"

  • Wall Street's median 12-month price target for SLR Investment Corp is $14.00, about 18.5% above its November 2 closing price of $11.81

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 2 - New Mountain Finance Q3 adjusted net investment income falls YoY

  • Nov 2 - Great Elm Capital Q3 net investment income and NAV fall

  • Nov 3 - Apollo assets reach $1.07 trillion on alternative investment demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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