PennantPark Floating Rate, PennantPark Investment Q2 NII both trail consensus (NYSE:PFLT)
Ralf Hahn
PennantPark Floating Rate Capital Ltd (NYSE:PFLT) saw Q2 core net investment per share slip from the prior quarter, while PennantPark Investment (NYSE:PNNT) core NII per share also fell short of consensus but rose from the previous quarter.
PFLT Q2 core net investment income per share of $0.31, trailing the $0.36 consensus, fell from $0.34 in Q1. The business development company primarily invests in U.S. middle-market companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt.
Net increase in net assets resulting from operations was $0.11 per share compared with $0.15 in the previous quarter.
PFLT’s adjusted net asset value per share fell to $11.00 from $11.10 at March 31.
The PennantPark Floating Rate Capital portfolio totaled $1.11B at June 30, 2023 compared with $1.16B at March 31. During Q2, the company invested $80.0M in four new and 40 existing portfolio companies at a weighted average yield on debt investments of 12.5%. Sales and repayments of investments totaled $132.4M, including $75.3M of sales to PennantPark Senior Secured Loan Fund LLC.
The PennantPark Senior Secured Loan Fund LLC portfolio totaled $805.2M at June 30 vs. $771.4M at March 31.
PennantPark Investment (PNNT), meanwhile, increased its quarterly distribution to $0.21 per share by 5% from its previous payout. The business development company invests in U.S. middle-market companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments.
PennantPark Investment Advisers manages both PFLT and PNNT.
PNNT Q2 core NII per share of $0.22, missing the $0.29 consensus, increased from $0.21 in Q1.
Net increase in net assets resulting from operations were $0.32 per share in Q2 compared with $0.07 in the previous quarter.
Adjusted net asset value per share of $7.67 at June 30, 2023 increased from $7.44 at March 31.
The business development company’s portfolio totaled $1.08B at June 30 compared with $1.13B at March 31. During the quarter, PNNT invested $326.3M in 11 new and 36 existing portfolio companies at a weighted average yield on debt investments of 8.7%. Sales and repayments of investments for the quarter totaled $198.3M, including $176.0M of sales to PennantPark Senior Loan Fund LLC.
The PennantPark Senior Loan Fund LLC portfolio was $793.9M vs. $747.6M at the end of Q1.
