SLR Investment Q3 investment income falls on smaller portfolio

Overview

• US specialty finance firm's Q3 net investment income per share was flat sequentially at $0.33

• Q3 net investment income fell to $17.8 mln from $21.6 mln due to a smaller average income-producing portfolio

• Company declared $0.31-per-share quarterly distribution and repurchased $10 mln of shares in October

Outlook

• SLR Investment declared a quarterly distribution of $0.31 per share, payable Dec. 28

• Company expects continued focus on specialty finance originations amid higher-for-longer interest rates

• Company says it is well positioned to deploy over $850 mln in available capital

Result Drivers

• PORTFOLIO SIZE - Co said lower gross and net investment income yr/yr was mainly due to a smaller average investment portfolio

• SPECIALTY FINANCE ORIGINATIONS - 95% of $575 mln in new investments were in specialty finance, which co expects to continue

• PORTFOLIO QUALITY - Co said watchlist loans remain below historical average and portfolio credit quality remains stable

Company press release: ID:nGNX2LbPqY

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 1 "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 SLR Investment Corp is $14.00, about 18.5% above its November 2 closing price of $11.81

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

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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.)