OFS Capital Q3 net investment income falls on lower net interest margin
Overview
US business development company's Q3 net investment income per share fell to $0.05 from $0.08
Company posted net loss on investments of $0.89 per share in Q3
Net asset value per share declined to $7.38 from $8.41
Company declares Q4 distribution of $0.17 per share, payable Jan. 7, 2027
Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release
Result Drivers
NET INTEREST MARGIN - Co said lower net investment income was primarily due to a decrease in net interest margin
NON-RECURRING INCOME - Co said higher portfolio yield was driven by non-recurring fee and interest income from loan repayments
INVESTMENT LOSSES - Co said net loss on investments was mainly due to unrealized depreciation in Pfanstiehl Holdings and losses on structured finance securities
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net investment income | $0.05 |
Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the closed end funds peer group is "hold"
Wall Street's median 12-month price target for OFS Capital Corp is $5.00, about 25% above its October 28 closing price of $4.00
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 6 three months ago
Reuters Recommended Reads
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Oct 28 - KKR Real Estate Finance Trust posts smaller Q3 loss on strong loan repayments
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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.)