Private Credit Portfolio Analysis | Gladstone Investment Reports Q2 FY2025 Results with Decreased Net Assets
- Editor
- Nov 6, 2024
- 2 min read
What's New: Gladstone Investment Corporation reported its Q2 FY2025 results, showing a decrease in net assets from $492.7 million as of March 31, 2024, to $458.4 million as of September 30, 2024. The fund experienced significant unrealized depreciation in its investment portfolio, which was partially offset by realized gains on investments.
Portfolio Dynamics:
The fair value of investments decreased from $920.5 million on March 31, 2024, to $853.3 million on September 30, 2024.
Net asset value per share declined from $13.43 on March 31, 2024, to $12.49 on September 30, 2024.
The fund reported $42.3 million in net realized gains on investments for the six months ended September 30, 2024.
Investment Activity :
The fund made new investments totaling $20.1 million during the six months ended September 30, 2024.
Principal repayments from investments amounted to $28.0 million for the same period.
Proceeds from the sale and recapitalization of investments were $48.5 million for the six-month period.
Capital Structure:
Total assets decreased from $938.1 million on March 31, 2024, to $868.8 million on September 30, 2024.
The fund's line of credit balance decreased from $67.0 million to $8.9 million over the six-month period.
Notes payable increased slightly from $331.3 million to $332.1 million during the same period.
Performance Profile:
The fund reported a net increase in net assets from operations of $9.0 million for the six months ended September 30, 2024.
Unrealized depreciation on investments was $53.1 million for the six-month period.
The fund declared distributions payable of $25.7 million as of September 30, 2024.
Risk & Quality:
Total liabilities decreased from $445.4 million to $410.4 million over the six-month period.
The fund maintained $2.0 million in cash and cash equivalents as of September 30, 2024.
Restricted cash decreased from $760,000 to $649,000 during the six-month period.
The Wrap: Gladstone Investment Corporation faced challenges in Q2 FY2025, with a significant decrease in net assets and unrealized depreciation in its investment portfolio. Despite realizing gains on investments, the overall fair value of investments declined. The fund reduced its line of credit balance substantially while maintaining a stable notes payable position. The decrease in net asset value per share reflects the challenging period for the fund's portfolio.
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