Palmer Square Capital BDC Q3 NAV rises on higher debt returns
Overview
US corporate debt lender's Q3 total investment income and net investment income fell yr/yr
Net asset value per share rose to $13.34 from $13.21 in prior quarter
Company repurchased $5.2 mln of shares and declared Q4 base dividend, with supplemental dividend expected
Outlook
Company declares Q4 2026 base dividend of $0.36 per share, payable January 13, 2027
Company expects to announce a Q4 2026 supplemental dividend in December
Result Drivers
PORTFOLIO YIELD - Portfolio yield rose to 11.99% in Q3 from 10.07% a year earlier, reflecting higher returns on debt and income-producing securities
PORTFOLIO COMPOSITION - 97% of long-term investments were in senior secured loans, with 98% at floating rates, supporting income generation amid market changes
NET REALIZED AND UNREALIZED GAINS - Q3 saw $2.4 mln in net realized and unrealized gains, compared to $10.3 mln in losses a year earlier, contributing to higher net asset value
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Asset Value Per Share | $13.34 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 6 "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 Palmer Square Capital BDC Inc is $11.00, about 11.1% above its November 3 closing price of $9.90
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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.)