The following is a summary of the Stellus Capital Investment Corporation (SCM) Q2 2024 Earnings Call Transcript:
Financial Performance:
SCM reported GAAP net investment income of $0.48 per share and core net investment income of $0.50 per share for Q2 2024.
Declared dividend was $0.40 per share, fully covered by net investment income.
Net asset value per share decreased by $0.05 due to net unrealized depreciation on the investment portfolio, offset by net investment income.Realized a gain of $0.08 per share on an equity investment and issued $25.2 million in shares above net asset value.
Business Progress:
SCM's investment portfolio grew to $900 million across 100 portfolio companies.
Invested $53 million in 8 new portfolio companies and realized 2 full repayments totaling $31 million.
Projected growth with an expected portfolio between $920 million and $940 million for the next quarter.
Enhancing capital management strategies with an active ATM program and potential bank facility expansions.
Maintains stable asset quality with 99% of loans secured and 98% priced at floating rates.
Opportunities:
Plans to continue dividend distribution at $0.40 per share, supported by earnings and spillover income.
Risks:
Small number of nonaccrual loans could pose potential risk, comprising 2.9% of the fair value of the total loan portfolio.
More details: Stellus Capital Investment IR
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