Stellus Capital Investment Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
For the third quarter of 2024, Stellus generated total investment income of $26.5 million, a slight decrease from $27.2 million in Q3 2023. Year-to-date (YTD) total investment income increased to $79.1 million from $77.8 million in the prior year. Net investment income for Q3 2024 was $10.3 million, or $0.39 per share, down from $10.8 million, or $0.47 per share, in Q3 2023. However, YTD net investment income rose to $32.3 million, or $1.29 per share, compared to $30.3 million, or $1.42 per share, in the same period last year.
The company reported a net increase in net assets resulting from operations of $15.5 million for Q3 2024, a significant recovery from a net decrease of $2.4 million in Q3 2023. For the nine months ended September 30, 2024, the net increase was $37.2 million, up from $6.0 million in the prior year. The net asset value per share increased to $13.55 from $13.26 at the end of 2023.
Stellus's total assets as of September 30, 2024, reached $957.1 million, up from $908.1 million at the end of 2023. The company’s cash and cash equivalents also increased to $38.6 million from $26.1 million. The net assets rose to $366.3 million, compared to $319.9 million at the end of 2023.
Strategically, Stellus has been active in managing its investment portfolio, which included 99 portfolio companies as of September 30, 2024, with a total fair value of $908.7 million. The company made net purchases of investments totaling $112.6 million during the nine months, while proceeds from sales and repayments amounted to $87.3 million. However, net realized losses for the period were $21.7 million, a stark contrast to a net realized gain of $0.3 million in the same period last year.
The company also reported an increase in borrowings under its credit facility, totaling $157.4 million as of September 30, 2024, compared to $160.1 million at the end of 2023. The asset coverage ratio improved to 242% from 223% over the same period.
Overall, Stellus Capital's performance reflects a mix of challenges and growth opportunities, with a focus on expanding its investment portfolio while managing risks associated with non-accrual loans and market conditions.
About Stellus Capital Investment Corp
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