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OFS Capital Q3 net investment income falls on lower net interest margin

By Reuters News


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

  • Oct 29 - Blackstone Mortgage Trust posts Q3 loss

  • Oct 28 - Franklin BSP Realty Trust posts Q3 net loss on credit losses

  • Oct 28 - KKR Real Estate Finance Trust posts smaller Q3 loss on strong loan repayments


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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