investments. The weighted average yield decreased to 13.1% during the quarter ended December 31, 2024 as compared to 14.0% during the quarter ended September 30, 2024. The weighted
average principal balance of our interest-bearing investment portfolio decreased to $642.4 million during the quarter ended December 31, 2024 as compared to $659.5 million during the quarter ended September 30, 2024.
Total expenses decreased by $2.0 million, or 15.9%, quarter over quarter primarily due to a $1.6 million decrease in the net base management fee,
driven by increased investment banking fee credits to the base management fee from increased deal originations.
Net investment income for the quarter
ended December 31, 2024 was $11.2 million, or $0.50 per share.
The net increase in net assets resulting from operations was
$27.0 million, or $1.21 per share, for the quarter ended December 31, 2024, compared to $31.8 million, or $1.46 per share, for the quarter ended September 30, 2024. The current quarter increase in net assets resulting from
operations was primarily driven by $57.8 million of net realized gain recognized during the quarter.
Subsequent Events: Subsequent to
December 31, 2024, the following significant events occurred:
| |
• |
|
In January 2025, our $20.6 million debt investment in Fix-It Group,
LLC paid off at par. We also received a $0.1 million prepayment penalty. |
| |
• |
|
In January 2025, our $5.4 million debt investment in Sokol and Company, LLC (“Sokol”) paid off at
par. Additionally, in February 2025, we received $5.8 million related to the partial sale of our common equity investment in Sokol. |
| |
• |
|
In February 2025, we invested $18.9 million in a food processor and distribution business through secured
second lien debt and common equity. |
| |
• |
|
In February 2025, we invested $19.4 million in Viron International, LLC through secured first lien debt and
common equity. |
| |
• |
|
Distributions and Dividends Declared: |
| |
• |
|
In January 2025, our Board of Directors declared the following distributions to common and preferred
stockholders: |
|
|
|
|
|
|
|
| Record Date |
|
Payment Date |
|
Distribution per
Common Share |
|
| January 24, 2025 |
|
January 31, 2025 |
|
$ |
0.165 |
|
| February 19, 2025 |
|
February 28, 2025 |
|
|
0.165 |
|
| March 19, 2025 |
|
March 31, 2025 |
|
|
0.165 |
|
|
|
|
|
|
|
|
|
|
Total for the Quarter |
|
$ |
0.495 |
|
|
|
|
|
|
|
|
|
|
|
| Record Date |
|
Payment Date |
|
Distribution per
Series A Preferred
Stock |
|
| January 27, 2025 |
|
February 5, 2025 |
|
$ |
0.130208 |
|
| February 25, 2025 |
|
March 5, 2025 |
|
|
0.130208 |
|
| March 26, 2025 |
|
April 4, 2025 |
|
|
0.130208 |
|
|
|
|
|
|
|
|
|
|
Total for the Quarter |
|
$ |
0.390624 |
|
|
|
|
|
|
|
|
Comments from Gladstone Capital’s President, Bob Marcotte: “The exit of our largest investment position
generated a material realized gain, which supported the supplemental cash distribution paid, increased our NAV per share and lifted our ROE to the top of our peer group. Additionally, the surge in investment originations for the quarter, while
maintaining our underwriting and pricing discipline, bolstered our NII via closing fees and will enhance our net interest margin and earnings available for cash distributions in the coming quarters.”
Conference Call for Stockholders: The Company will hold its earnings release conference call on Wednesday, February 12, 2025, at 8:30 a.m.
Eastern Time. Please call (866) 424-3437 to enter the conference
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