Barings BDC Q3 net investment income covers dividend, NAV dips

Overview

• US business development company's Q3 net investment income was $0.26 per share

• Net asset value per share dipped slightly to $10.92, mainly on net realized losses

• Company declared quarterly cash dividend of $0.26 per share

Outlook

• Barings BDC did not provide specific financial guidance for future quarters or the full year

Result Drivers

• SENIOR SECURED PORTFOLIO - Co said results reflected stability of its predominantly senior secured portfolio

• PORTFOLIO GROWTH - Co funded $196 mln of investments including 20 new portfolio companies, growing portfolio to $2.5 bln

• REALIZED LOSSES OFFSET BY UNREALIZED GAINS - NAV per share decrease was mainly due to net realized losses, partially offset by net unrealized appreciation

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "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 Barings BDC Inc is $10.00, about 12.2% above its November 4 closing price of $8.91

• 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 5 - BlackRock TCP Capital posts Q3 loss as portfolio sale weighs

• Nov 5 - FS KKR Capital Q3 net investment income per share rises

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(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.)