Portman Ridge Finance Corporation (PTMN) reported a total investment income of approximately $62.4 million for the fiscal year ending December 31, 2024, a decrease from $76.3 million in 2023. This decline was primarily attributed to reduced interest income from its Debt Securities Portfolio, which fell from $63.5 million in 2023 to $52.6 million in 2024. The company's net investment income for 2024 was approximately $24.0 million, or $2.59 per share, compared to $34.8 million, or $3.66 per share, in the previous year. The decrease in net investment income was influenced by a reduction in average gross assets and lower contractual interest rates on loans.
In terms of operational changes, Portman Ridge has been actively involved in strategic acquisitions, including the merger with Logan Ridge Finance Corporation (LRFC), which is expected to close in the second quarter of 2025. This merger is anticipated to enhance the company's asset base and operational capabilities. The company also reported a significant reduction in its net asset value, which decreased from $22.76 per share at the end of 2023 to $19.41 per share by December 31, 2024. This decline reflects a broader trend of unrealized losses on investments, amounting to approximately $30.8 million for the year.
Portman Ridge's investment portfolio, valued at $405.0 million as of December 31, 2024, is diversified across 28 industries and includes a mix of first lien debt (71.6% of the portfolio), second lien debt (7.2%), and equity investments (6.1%). The company has also maintained a focus on liquidity, with cash and cash equivalents totaling approximately $17.5 million. The asset coverage ratio stood at 167%, indicating compliance with the regulatory requirements for leverage under the Investment Company Act of 1940.
Looking ahead, Portman Ridge aims to grow its portfolio through additional capital raising and prudent use of leverage, while continuing to manage risks associated with market conditions and interest rate fluctuations. The company has also implemented a renewed stock repurchase program of up to $10 million, effective March 12, 2025, to enhance shareholder value. However, the ongoing economic environment, including inflation and geopolitical tensions, may pose challenges to the company's investment strategy and overall performance.
About Portman Ridge Finance Corp
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