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Main Street Capital (NYSE:MAIN) posted on Thursday Q4 earnings that surpassed the average analyst estimate and rose both sequentially and year-over-year, thanks to the "benefits of our differentiated and diversified investment strategies, the unique contributions of our asset management business and the continued underlying strength and quality of our portfolio companies," said CEO Dwayne L. Hyzak.
Q4 distributable net investment income of $1.12 per share, topping the $1.07 consensus, advanced from $1.04 in the previous quarter and $0.98 in Q4 2022.
Total investment income of $129.3M, also beating the $127.6M expected, rose from $123.2M in Q3 and $113.9M in the year-ago period.
"Our distributable net investment income exceeded the total dividends paid to our shareholders by over 13% for the fourth quarter and over 17% for the full year," he added, even with a 25% climb in the total dividends paid to shareholders last year.
MAIN inched down 0.2% in after-hours trading.
Net asset value per share came in at $29.20 at Dec. 31, 2023, compared with $28.33 at Sept. 30, 2023.
During the quarter, Main Street (MAIN) completed $160.4M in total private loan portfolio investments, which after aggregate repayments of debt principal and sales of debt investments and a decrease in cost basis due to a realized loss resulted in a net decrease of $112.5M in the total cost basis of the portfolio.
At the same time, the business development company completed $92.3M in lower middle market ("LMM") portfolio investments, including investments totaling $68.3M in two new LMM portfolio companies, which after aggregate repayments of debt principal, return of invested equity capital and a decrease in cost basis due to a realized loss resulted in a net increase of $65.7M in the total cost basis of the LMM investment portfolio.
Conference call on Feb. 23 at 10:00 a.m. ET.
Earlier, Main Street Capital (MAIN) non-GAAP EPS of $1.12 beats by $0.05.