NexPoint Capital, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and asset management compared to the previous fiscal period.
As of September 30, 2024, the company had total assets of $51.4 million, a slight increase from $51.3 million at the end of 2023. However, total net assets decreased to $48.0 million from $49.8 million. The net asset value per share rose to $5.44 from $5.35, reflecting a positive trend in share value despite the overall decline in net assets.
Total investment income for the third quarter was $418,608, a substantial decrease from $1,058,773 in the same period of 2023. For the nine months ended September 30, 2024, total investment income was $1.4 million, down from $2.8 million year-over-year. This decline in income was accompanied by an increase in total expenses, which rose to $504,586 for the third quarter compared to $473,814 in 2023, and $1.5 million for the nine months, slightly up from $1.5 million in the prior year.
The company reported a net investment loss of $(113,157) for the third quarter of 2024, contrasting sharply with a net investment income of $681,628 in the same quarter of 2023. For the nine-month period, NexPoint experienced a net investment loss of $(78,642), compared to a profit of $1.6 million in the previous year. Despite these losses, NexPoint recorded net realized and unrealized gains of $3.1 million for the third quarter and $3.4 million for the nine months, significantly improving from the previous year’s losses.
In terms of strategic developments, NexPoint's investment portfolio as of September 30, 2024, included 23.2% in senior secured loans and 30.9% in healthcare-related investments. The company has shifted its focus, with healthcare investments decreasing from 34.9% at the end of 2023. The fair value of the company's investments was $49.4 million, a slight increase from $49.4 million at the end of 2023.
Cash and cash equivalents increased to $1.5 million from $1.4 million at the end of 2023, although this was a decrease from $2.4 million a year earlier. The company also reported a significant increase in payables for fund shares repurchased, rising to $1.7 million from $53,304 at the end of 2023.
Overall, NexPoint Capital's financial performance for the third quarter and nine months ended September 30, 2024, reflects challenges in generating investment income while managing expenses, alongside strategic adjustments in its investment portfolio.
About NexPoint Capital, Inc.
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